Office of the Revisor of Statutes
Minnesota Session Laws - 1999, Regular Session
Key: (1) language to be deleted (2) new language
CHAPTER 159-S.F.No. 1585
An act relating to human services; making technical
changes to cross-references in statutes; clarifying
certain requirements; amending Minnesota Statutes
1998, sections 13.46, subdivisions 1 and 2; 16D.02,
subdivision 3; 16D.13, subdivision 3; 84.98,
subdivision 3; 119A.54; 119B.01, subdivisions 2, 10,
12, 13, 15, and 16; 119B.02, subdivision 1; 119B.03,
subdivisions 3 and 4; 119B.05, subdivision 1; 119B.07;
119B.075; 119B.08, subdivision 3; 119B.09,
subdivisions 1, 3, and 7; 119B.14; 119B.15; 136A.125,
subdivision 2; 145.415, subdivision 3; 145.93,
subdivision 3; 196.27; 237.70, subdivision 4a;
245.4871, subdivision 25; 252.28, subdivision 3a;
254B.02, subdivision 1; 256.01, subdivisions 2 and 4;
256.017, subdivisions 1, 2, and 4; 256.019; 256.025,
subdivision 2; 256.046, subdivision 1; 256.0471,
subdivision 1; 256.741, subdivisions 1 and 2; 256.82,
subdivision 2; 256.935, subdivision 1; 256.98,
subdivisions 1 and 8; 256.981; 256.983, subdivision 4;
256.9861, subdivision 5; 256B.031, subdivisions 4 and
5; 256B.69, subdivision 5a; 256C.21; 256C.23,
subdivision 1; 256D.01, subdivisions 1a and 1e;
256D.05, subdivisions 1, 3, and 5; 256D.051,
subdivision 3a; 256D.055; 256D.23, subdivision 1;
256D.435, subdivision 3; 256D.44, subdivision 5;
256E.03, subdivision 2; 256E.06, subdivisions 1 and 3;
256E.07, subdivision 1; 256E.08, subdivision 3;
256F.05, subdivisions 3 and 8; 256F.10, subdivision 6;
256F.13, subdivision 3; 256G.01, subdivision 4;
256G.03, subdivision 2; 256J.01, subdivision 1;
256J.11, subdivisions 1 and 2; 256J.12, subdivision 1;
256J.21, subdivision 3; 256J.26, subdivisions 1, 2, 3,
and 4; 256J.42, subdivisions 1 and 5; 256J.43,
subdivision 1; 256J.50, subdivision 3a; 256J.62,
subdivisions 3, 6, and 7; 256J.76, subdivision 1;
256K.01, subdivisions 2, 3, and 8; 256K.015; 256K.02;
256K.03, subdivisions 1 and 12; 256K.04, subdivision
2; 256K.05, subdivision 2; 256K.06; 256K.07; 256K.08,
subdivision 1; 256L.11, subdivision 4; 257.33,
subdivision 2; 257.3573, subdivision 2; 257.60;
257.85, subdivisions 3, 5, 7, and 11; 259.67,
subdivision 4; 260.38; 261.063; 268.0111, subdivisions
5 and 7; 268.0122, subdivision 3; 268.552, subdivision
5; 268.672, subdivision 6; 268.86, subdivision 2;
268.871, subdivision 1; 268.90, subdivision 2; 268.95,
subdivision 4; 275.065, subdivision 5a; 290.067,
subdivision 1; 290A.03, subdivision 7; 393.07,
subdivision 6; 462A.205, subdivision 2; 462A.222,
subdivision 1a; 473.129, subdivision 8; 477A.0122,
subdivision 2; 501B.89, subdivision 2; 518.171,
subdivision 1; 518.551, subdivision 5; 518.57,
subdivision 3; 518.614, subdivision 3; 518.64,
subdivision 2; 548.13; 550.136, subdivision 6;
550.143, subdivision 3; 550.37, subdivision 14;
551.05, subdivision 1a; 551.06, subdivision 6;
570.025, subdivision 6; 570.026, subdivision 2;
571.72, subdivision 8; 571.912; 571.925; 571.931,
subdivision 6; 571.932, subdivision 2; and 583.22,
subdivision 7b; repealing Minnesota Statutes 1998,
sections 119B.01, subdivision 12a; 119B.05,
subdivision 6; 126C.05, subdivision 4; 126C.06;
256.031, subdivision 1a; 256.736; 256.74, subdivision
1c; 256.9850; 256J.62, subdivision 5; 268.871,
subdivision 5; and 290A.22; Minnesota Rules, parts
9500.2000; 9500.2020; 9500.2060; 9500.2100; 9500.2140;
9500.2180; 9500.2220; 9500.2260; 9500.2300; 9500.2340;
9500.2380; 9500.2420; 9500.2440; 9500.2480; 9500.2500;
9500.2520; 9500.2560; 9500.2580; 9500.2600; 9500.2620;
9500.2640; 9500.2680; 9500.2700; 9500.2720; 9500.2722;
9500.2724; 9500.2726; 9500.2728; 9500.2730; 9500.2740;
9500.2760; 9500.2780; 9500.2800; 9500.2820; 9500.2860;
and 9500.2880.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1. Minnesota Statutes 1998, section 13.46,
subdivision 1, is amended to read:
Subdivision 1. [DEFINITIONS.] As used in this section:
(a) "Individual" means an individual according to section
13.02, subdivision 8, but does not include a vendor of services.
(b) "Program" includes all programs for which authority is
vested in a component of the welfare system according to statute
or federal law, including, but not limited to, the aid to
families with dependent children program formerly codified in
sections 256.72 to 256.87, Minnesota family investment
program-statewide, medical assistance, general assistance,
general assistance medical care, and child support collections.
(c) "Welfare system" includes the department of human
services, local social services agencies, county welfare
agencies, the public authority responsible for child support
enforcement, human services boards, community mental health
center boards, state hospitals, state nursing homes, the
ombudsman for mental health and mental retardation, and persons,
agencies, institutions, organizations, and other entities under
contract to any of the above agencies to the extent specified in
the contract.
(d) "Mental health data" means data on individual clients
and patients of community mental health centers, established
under section 245.62, mental health divisions of counties and
other providers under contract to deliver mental health
services, or the ombudsman for mental health and mental
retardation.
(e) "Fugitive felon" means a person who has been convicted
of a felony and who has escaped from confinement or violated the
terms of probation or parole for that offense.
Sec. 2. Minnesota Statutes 1998, 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) according to section 13.05;
(2) according to court order;
(3) according 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,
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) between the department of human services and 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, for the purpose of
administering any rehabilitation program, whether alone or in
conjunction with the welfare system, or to monitor and evaluate
the statewide Minnesota family investment program by exchanging
data on recipients and former recipients of food stamps, cash
assistance under chapter 256, 256D, 256J, or 256K, child care
assistance under chapter 119B, or medical programs under chapter
256B, 256D, or 256L;
(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 programs as defined in
section 245A.02 may be disclosed to the protection and advocacy
system established in this state according 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
services office 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 or Minnesota family investment
program-statewide may be disclosed to law enforcement officers
who provide the name of the recipient and notify the agency that:
(i) the recipient:
(A) is a fugitive felon fleeing to avoid prosecution, or
custody or confinement after conviction, for a crime or attempt
to commit a crime that is a felony under the laws of the
jurisdiction from which the individual is fleeing; or
(B) is violating a condition of probation or parole imposed
under state or federal law;
(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 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, according to Code of Federal Regulations, title
7, section 272.1(c);
(18) the address, social security number, and, if
available, photograph of any member of a household receiving
food stamps shall be made available, on request, to a local,
state, or federal law enforcement officer if the officer
furnishes the agency with the name of the member and notifies
the agency that:
(i) the member:
(A) is fleeing to avoid prosecution, or custody or
confinement after conviction, for a crime or attempt to commit a
crime that is a felony in the jurisdiction the member is
fleeing;
(B) is violating a condition of probation or parole imposed
under state or federal law; or
(C) has information that is necessary for the officer to
conduct an official duty related to conduct described in subitem
(A) or (B);
(ii) locating or apprehending the member is within the
officer's official duties; and
(iii) the request is made in writing and in the proper
exercise of the officer's official duty;
(19) certain information regarding child support obligors
who are in arrears may be made public according to section
518.575;
(20) data on child support payments made by a child support
obligor and data on the distribution of those payments excluding
identifying information on obligees may be disclosed to all
obligees to whom the obligor owes support, and data on the
enforcement actions undertaken by the public authority, the
status of those actions, and data on the income of the obligor
or obligee may be disclosed to the other party;
(21) data in the work reporting system may be disclosed
under section 256.998, subdivision 7;
(22) to the department of children, families, and learning
for the purpose of matching department of children, families,
and learning student data with public assistance data to
determine students eligible for free and reduced price meals,
meal supplements, and free milk according to United States Code,
title 42, sections 1758, 1761, 1766, 1766a, 1772, and 1773; to
produce accurate numbers of students receiving aid to families
with dependent children or assistance from the Minnesota family
investment program-statewide program as required by section
126C.06; to allocate federal and state funds that are
distributed based on income of the student's family; and to
verify receipt of energy assistance for the telephone assistance
plan;
(23) the current address and telephone number of program
recipients and emergency contacts may be released to the
commissioner of health or a local board of health as defined in
section 145A.02, subdivision 2, when the commissioner or local
board of health has reason to believe that a program recipient
is a disease case, carrier, suspect case, or at risk of illness,
and the data are necessary to locate the person;
(24) to other state agencies, statewide systems, and
political subdivisions of this state, including the attorney
general, and agencies of other states, interstate information
networks, federal agencies, and other entities as required by
federal regulation or law for the administration of the child
support enforcement program;
(25) to personnel of public assistance programs as defined
in section 256.741, for access to the child support system
database for the purpose of administration, including monitoring
and evaluation of those public assistance programs; or
(26) to monitor and evaluate the statewide Minnesota family
investment program by exchanging data between the departments of
human services and children, families, and learning, on
recipients and former recipients of food stamps, cash assistance
under chapter 256, 256D, 256J, or 256K, child care assistance
under chapter 119B, or medical programs under chapter 256B,
256D, or 256L.
(b) Information on persons who have been treated for drug
or alcohol abuse may only be disclosed according to 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), (17), or (18), 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. 3. Minnesota Statutes 1998, section 16D.02,
subdivision 3, is amended to read:
Subd. 3. [DEBT.] "Debt" means an amount owed to the state
directly, or through a state agency, on account of a fee, duty,
lease, direct loan, loan insured or guaranteed by the state,
rent, service, sale of real or personal property, overpayment,
fine, assessment, penalty, restitution, damages, interest, tax,
bail bond, forfeiture, reimbursement, liability owed, an
assignment to the state including assignments under sections
256.72 to 256.87 section 256.741, the Social Security Act, or
other state or federal law, recovery of costs incurred by the
state, or any other source of indebtedness to the state. Debt
also includes amounts owed to individuals as a result of civil,
criminal, or administrative action brought by the state or a
state agency pursuant to its statutory authority or for which
the state or state agency acts in a fiduciary capacity in
providing collection services in accordance with the regulations
adopted under the Social Security Act at Code of Federal
Regulations, title 45, section 302.33. Debt also includes an
amount owed to the courts or University of Minnesota for which
the commissioner provides collection services pursuant to
contract.
Sec. 4. Minnesota Statutes 1998, section 16D.13,
subdivision 3, is amended to read:
Subd. 3. [EXCLUSION.] A state agency may not charge
interest under this section on overpayments of assistance
benefits under the programs formerly codified in sections
256.031 to 256.0361, 256.72 to 256.87, and under chapters 256D
and 256I, or the federal food stamp program. Notwithstanding
this prohibition, any debts that have been reduced to judgment
under these programs are subject to the interest charges
provided under section 549.09.
Sec. 5. Minnesota Statutes 1998, section 84.98,
subdivision 3, is amended to read:
Subd. 3. [CRITERIA FOR DETERMINING ECONOMIC, SOCIAL,
PHYSICAL, OR EDUCATIONAL DISADVANTAGE.] (a) The criteria for
determining economic, social, physical, or educational
disadvantage shall be determined as provided in this subdivision.
(b) Economically disadvantaged are persons who meet the
criteria for disadvantaged established by the department of
economic security or persons receiving services provided by the
department of human services such as welfare payments, food
stamps, aid to families with dependent children or Minnesota
family investment program-statewide program.
(c) Socially disadvantaged are persons who have been
classified as persons in need of supervision by the court system.
(d) Physically disadvantaged are persons who have been
identified as having special needs by public agencies that deal
with employment for the disabled.
(e) Educationally disadvantaged are persons who have
dropped out of school or are at risk of dropping out of school
and persons with learning disabilities or in need of special
education classes.
Sec. 6. Minnesota Statutes 1998, section 119A.54, is
amended to read:
119A.54 [REPORTS.]
Each grantee shall submit an annual report to the
commissioner of children, families, and learning on the format
designated by the commissioner, including program information
report data. By January 1 of each year, the commissioner shall
prepare an annual report to the health and human services policy
committee of the house of representatives and the health and
family security services committee of the senate concerning the
uses and impact of head start supplemental funding, including a
summary of innovative programs and the results of innovative
programs and an evaluation of the coordination of head start
programs with employment and training services provided to AFDC
and MFIP-S MFIP recipients.
Sec. 7. Minnesota Statutes 1998, section 119B.01,
subdivision 2, is amended to read:
Subd. 2. [APPLICANT.] "Child care fund applicants" means
all parents, stepparents, legal guardians, or eligible
relative caretakers caregivers who reside in the household that
applies for child care assistance under the child care fund.
Sec. 8. Minnesota Statutes 1998, section 119B.01,
subdivision 10, is amended to read:
Subd. 10. [FAMILY.] "Family" means parents, stepparents,
guardians and their spouses, or other eligible
relative caretakers caregivers and their spouses, and their
blood related dependent children and adoptive siblings under the
age of 18 years living in the same home including children
temporarily absent from the household in settings such as
schools, foster care, and residential treatment facilities.
When a minor parent or parents and his, her, or their child or
children are living with other relatives, and the minor parent
or parents apply for a child care subsidy, "family" means only
the minor parent or parents and the child or children. An adult
may be considered a dependent member of the family unit if 50
percent of the adult's support is being provided by the parents,
stepparents, guardians and their spouses, or eligible
relative caretakers caregivers and their spouses, residing in
the same household. An adult age 18 who is a full-time high
school student and can reasonably be expected to graduate before
age 19 may be considered a dependent member of the family unit.
Sec. 9. Minnesota Statutes 1998, section 119B.01,
subdivision 12, is amended to read:
Subd. 12. [INCOME.] "Income" means earned or unearned
income received by all family members, including public
assistance cash benefits, unless specifically excluded. The
following are excluded from income: funds used to pay for
health insurance premiums for family members, Supplemental
Security Income, scholarships, work-study income, and grants
that cover costs for tuition, fees, books, and educational
supplies; student loans for tuition, fees, books, supplies, and
living expenses; earned income tax credits; in-kind income such
as food stamps, energy assistance, medical assistance, and
housing subsidies; earned income of full or part-time secondary
school students up to the age of 19, including summer
employment; grant awards under the family subsidy program;
nonrecurring lump sum income only to the extent that it is
earmarked and used for the purpose for which it is paid; and any
income assigned to the public authority according to section
256.74 or 256.741, if enacted.
Sec. 10. Minnesota Statutes 1998, section 119B.01,
subdivision 13, is amended to read:
Subd. 13. [PROVIDER.] "Provider" means a child care
license holder who operates a family day care home, a group
family day care home, a day care center, a nursery school, a day
nursery, an extended day school age child care program; a legal
nonlicensed extended day school age child care program which
operates under the auspices of a local school board that has
adopted school age child care standards which meet or exceed
standards recommended by the state department of children,
families, and learning, or a legal nonlicensed caregiver who is
at least 18 years of age, and who is not a member of the AFDC
Minnesota family investment program assistance unit.
Sec. 11. Minnesota Statutes 1998, section 119B.01,
subdivision 15, is amended to read:
Subd. 15. [AFDC MINNESOTA FAMILY INVESTMENT PROGRAM AND
WORK FIRST PROGRAM.] "AFDC" means the aid to families with
dependent children program under sections 256.72 to 256.87; The
MFIP Minnesota family investment program under sections 256.031
to 256.0361 and 256.0475 to 256.049; the MFIP-S program under
chapter 256J; and the work first program under chapter 256K,
whichever program is in effect are the state's programs which
are required under title I of Public Law Number 104-193, the
Personal Responsibility and Work Opportunity Reconciliation Act
of 1996.
Sec. 12. Minnesota Statutes 1998, section 119B.01,
subdivision 16, is amended to read:
Subd. 16. [TRANSITION YEAR FAMILIES.] "Transition year
families" means families who have received AFDC assistance under
the Minnesota family investment program, or who were eligible to
receive AFDC assistance under the Minnesota family investment
program after choosing to discontinue receipt of the cash
portion of MFIP-S MFIP assistance under section 256J.31,
subdivision 12, for at least three of the last six months before
losing eligibility for AFDC the Minnesota family investment
program due to increased hours of employment, or increased
income from employment or child or spousal support.
Sec. 13. Minnesota Statutes 1998, section 119B.02,
subdivision 1, is amended to read:
Subdivision 1. [CHILD CARE SERVICES.] The commissioner
shall develop standards for county and human services boards to
provide child care services to enable eligible families to
participate in employment, training, or education programs.
Within the limits of available appropriations, the commissioner
shall distribute money to counties to reduce the costs of child
care for eligible families. The commissioner shall adopt rules
to govern the program in accordance with this section. The
rules must establish a sliding schedule of fees for parents
receiving child care services. The rules shall provide that
funds received as a lump sum payment of child support arrearages
shall not be counted as income to a family in the month received
but shall be prorated over the 12 months following receipt and
added to the family income during those months. In the rules
adopted under this section, county and human services boards
shall be authorized to establish policies for payment of child
care spaces for absent children, when the payment is required by
the child's regular provider. The rules shall not set a maximum
number of days for which absence payments can be made, but
instead shall direct the county agency to set limits and pay for
absences according to the prevailing market practice in the
county. County policies for payment of absences shall be
subject to the approval of the commissioner. The commissioner
shall maximize the use of federal money in section 256.736 under
title I and title IV of Public Law Number 104-193, the Personal
Responsibility and Work Opportunity Reconciliation Act of 1996
and other programs that provide federal or state reimbursement
for child care services for low-income families who are in
education, training, job search, or other activities allowed
under those programs. Money appropriated under this section
must be coordinated with the programs that provide federal
reimbursement for child care services to accomplish this
purpose. Federal reimbursement obtained must be allocated to
the county that spent money for child care that is federally
reimbursable under programs that provide federal reimbursement
for child care services. The counties shall use the federal
money to expand child care services. The commissioner may adopt
rules under chapter 14 to implement and coordinate federal
program requirements.
Sec. 14. Minnesota Statutes 1998, section 119B.03,
subdivision 3, is amended to read:
Subd. 3. [ELIGIBLE RECIPIENTS.] Families that meet the
eligibility requirements under sections 119B.09, except AFDC
recipients, MFIP recipients, and transition year families, and
119B.10 are eligible for child care assistance under the basic
sliding fee program. Families enrolled in the basic sliding fee
program shall be continued until they are no longer eligible.
Child care assistance provided through the child care fund is
considered assistance to the parent.
Sec. 15. Minnesota Statutes 1998, section 119B.03,
subdivision 4, is amended to read:
Subd. 4. [FUNDING PRIORITY.] (a) First priority for child
care assistance under the basic sliding fee program must be
given to eligible non-AFDC non-Minnesota family investment
program families who do not have a high school or general
equivalency diploma or who need remedial and basic skill courses
in order to pursue employment or to pursue education leading to
employment. Within this priority, the following subpriorities
must be used:
(1) child care needs of minor parents;
(2) child care needs of parents under 21 years of age; and
(3) child care needs of other parents within the priority
group described in this paragraph.
(b) Second priority must be given to parents who have
completed their AFDC Minnesota family investment program
transition year.
(c) Third priority must be given to families who are
eligible for portable basic sliding fee assistance through the
portability pool under subdivision 9.
Sec. 16. Minnesota Statutes 1998, section 119B.05,
subdivision 1, is amended to read:
Subdivision 1. [ELIGIBLE RECIPIENTS.] Families eligible
for child care assistance under the AFDC Minnesota family
investment program child care program are:
(1) persons receiving services under sections 256.031 to
256.0361 and 256.047 to 256.048;
(2) AFDC Minnesota family investment program recipients who
are employed or in job search and meet the requirements of
section 119B.10;
(3) (2) persons who are members of transition year families
under section 119B.01, subdivision 16;
(4) members of the control group for the STRIDE evaluation
conducted by the Manpower Demonstration Research Corporation;
(5) AFDC caretakers who are participating in the STRIDE and
non-STRIDE AFDC child care program;
(6) (3) families who are participating in employment
orientation or job search, or other employment or training
activities that are included in an approved employability
development plan under chapter 256K; and
(7) MFIP-S (4) MFIP families who are participating in work
activities as required in their job search support or employment
plan, or in appeals, hearings, assessments, or orientations
according to chapter 256J. Child care assistance to support
work activities as described in section 256J.49 must be
available according to sections 119A.54, 119B.01, subdivision 8,
124D.13, 256E.08, and 611A.32 and titles IVA, IVB, IVE, and XX
of the Social Security Act.
Sec. 17. Minnesota Statutes 1998, section 119B.07, is
amended to read:
119B.07 [USE OF MONEY.]
Money for persons listed in sections 119B.03, subdivision
3, and 119B.05, subdivision 1, shall be used to reduce the costs
of child care for students, including the costs of child care
for students while employed if enrolled in an eligible education
program at the same time and making satisfactory progress
towards completion of the program. Counties may not limit the
duration of child care subsidies for a person in an employment
or educational program, except when the person is found to be
ineligible under the child care fund eligibility standards. Any
limitation must be based on a person's employability plan in the
case of an AFDC a Minnesota family investment program recipient,
and county policies included in the child care allocation plan.
The maximum length of time a student is eligible for child care
assistance under the child care fund for education and training
is no more than the time necessary to complete the credit
requirements for an associate or baccalaureate degree as
determined by the educational institution, excluding basic or
remedial education programs needed to prepare for post-secondary
education or employment. To be eligible, the student must be in
good standing and be making satisfactory progress toward the
degree. Time limitations for child care assistance do not apply
to basic or remedial educational programs needed to prepare for
post-secondary education or employment. These programs
include: high school, general equivalency diploma, and English
as a second language. Programs exempt from this time limit must
not run concurrently with a post-secondary program. High school
students who are participating in a post-secondary options
program and who receive a high school diploma issued by the
school district are exempt from the time limitations while
pursuing a high school diploma. Financially eligible students
who have received child care assistance for one academic year
shall be provided child care assistance in the following
academic year if funds allocated under sections 119B.03 and
119B.05 are available. If an AFDC a Minnesota family investment
program recipient who is receiving AFDC Minnesota family
investment program child care assistance under this chapter
moves to another county, continues to participate in educational
or training programs authorized in their employability
development plans, and continues to be eligible for AFDC the
Minnesota family investment program child care assistance under
this chapter, the AFDC caretaker Minnesota family investment
program caregiver must receive continued child care assistance
from the county responsible for their current employability
development plan, without interruption.
Sec. 18. Minnesota Statutes 1998, section 119B.075, is
amended to read:
119B.075 [RESERVE ACCOUNT.]
A reserve account must be created within the general fund
for all unexpended basic sliding fee child care, TANF child
care, or other child care funds under the jurisdiction of the
commissioner. Any funds for those purposes that are unexpended
at the end of a biennium must be deposited in this reserve
account, and may be appropriated on an ongoing basis by the
commissioner for basic sliding fee child care or TANF MFIP child
care.
Sec. 19. Minnesota Statutes 1998, section 119B.08,
subdivision 3, is amended to read:
Subd. 3. [CHILD CARE FUND PLAN.] Effective January 1,
1992, the county will include the plan required under this
subdivision in its biennial community social services plan
required in this section, for the group described in section
256E.03, subdivision 2, paragraph (h). The commissioner shall
establish the dates by which the county must submit these
plans. The county and designated administering agency shall
submit to the commissioner an annual child care fund allocation
plan. The plan shall include:
(1) a narrative of the total program for child care
services, including all policies and procedures that affect
eligible families and are used to administer the child care
funds;
(2) the methods used by the county to inform eligible
groups of the availability of child care assistance and related
services;
(3) the provider rates paid for all children by provider
type;
(4) the county prioritization policy for all eligible
groups under the basic sliding fee program and AFDC the
Minnesota family investment program and child care program; and
(5) other information as requested by the department to
ensure compliance with the child care fund statutes and rules
promulgated by the commissioner.
The commissioner shall notify counties within 60 days of
the date the plan is submitted whether the plan is approved or
the corrections or information needed to approve the plan. The
commissioner shall withhold a county's allocation until it has
an approved plan. Plans not approved by the end of the second
quarter after the plan is due may result in a 25 percent
reduction in allocation. Plans not approved by the end of the
third quarter after the plan is due may result in a 100 percent
reduction in the allocation to the county. Counties are to
maintain services despite any reduction in their allocation due
to plans not being approved.
Sec. 20. Minnesota Statutes 1998, section 119B.09,
subdivision 1, is amended to read:
Subdivision 1. [GENERAL ELIGIBILITY REQUIREMENTS FOR ALL
APPLICANTS FOR CHILD CARE ASSISTANCE.] (a) Child care services
must be available to families who need child care to find or
keep employment or to obtain the training or education necessary
to find employment and who:
(1) meet the requirements of section 119B.05; receive aid
to families with dependent children, MFIP-S, assistance under
MFIP or work first, whichever is in effect; and are receiving
participating in employment and training services under section
256.736 or chapter 256J or 256K;
(2) have household income below the eligibility levels for
aid to families with dependent children Minnesota family
investment program; or
(3) have household income within a range established by the
commissioner.
(b) Child care services for the families receiving aid to
families with dependent children Minnesota family investment
program assistance must be made available as in-kind services,
to cover any difference between the actual cost and the amount
disregarded under the aid to families with dependent children
program. Child care services to families whose incomes are
below the threshold of eligibility for aid to families with
dependent children Minnesota family investment program, but are
not AFDC caretakers MFIP caregivers, must be made available with
the same copayment required of AFDC caretakers or MFIP-S MFIP
caregivers.
(c) All applicants for child care assistance and families
currently receiving child care assistance must be assisted and
required to cooperate in establishment of paternity and
enforcement of child support obligations as a condition of
program eligibility. For purposes of this section, a family is
considered to meet the requirement for cooperation when the
family complies with the requirements of section 256.741, if
enacted.
Sec. 21. Minnesota Statutes 1998, section 119B.09,
subdivision 3, is amended to read:
Subd. 3. [PRIORITIES; ALLOCATIONS.] If a county projects
that its child care allocation is insufficient to meet the needs
of all eligible groups, it may prioritize among the groups that
remain to be served after the county has complied with the
priority requirements of section 119B.03. Counties that have
established a priority for non-AFDC non-Minnesota family
investment program families beyond those established under
section 119B.03 must submit the policy in the annual allocation
plan.
Sec. 22. Minnesota Statutes 1998, section 119B.09,
subdivision 7, is amended to read:
Subd. 7. [ELIGIBILITY FOR ASSISTANCE.] The date of
eligibility for child care assistance under this chapter is the
later of the date the application was signed; the beginning date
of employment, education, or training; or the date a
determination has been made that the applicant is a participant
in employment and training services under Minnesota Rules, part
3400.0080, subpart 2a, section 256.736, or chapter 256J or
256K. The date of eligibility for the basic sliding fee at-home
infant child care program is the later of the date the infant is
born or, in a county with a basic sliding fee wait list, the
date the family applies for at-home infant child care. Payment
ceases for a family under the at-home infant child care program
when a family has used a total of 12 months of assistance as
specified under section 119B.061. Payment of child care
assistance for employed persons on AFDC MFIP is effective the
date of employment or the date of AFDC MFIP eligibility,
whichever is later. Payment of child care assistance for MFIP-S
MFIP or work first participants in employment and training
services is effective the date of commencement of the services
or the date of MFIP-S MFIP or work first eligibility, whichever
is later. Payment of child care assistance for transition year
child care must be made retroactive to the date of eligibility
for transition year child care.
Sec. 23. Minnesota Statutes 1998, section 119B.14, is
amended to read:
119B.14 [EXTENSION OF EMPLOYMENT OPPORTUNITIES.]
The county board shall insure ensure that child care
services available to eligible residents are well advertised and
that everyone who receives or applies for aid to families with
dependent children assistance under the Minnesota family
investment program is informed of training and employment
opportunities and programs, including child care assistance and
child care resource and referral services.
Sec. 24. Minnesota Statutes 1998, section 119B.15, is
amended to read:
119B.15 [ADMINISTRATIVE EXPENSES.]
The commissioner shall use up to 1/21 of the state and
federal funds available for the basic sliding fee program and
1/21 of the state and federal funds available for the AFDC
Minnesota family investment program child care program for
payments to counties for administrative expenses.
Sec. 25. Minnesota Statutes 1998, section 136A.125,
subdivision 2, is amended to read:
Subd. 2. [ELIGIBLE STUDENTS.] An applicant is eligible for
a child care grant if the applicant:
(1) is a resident of the state of Minnesota;
(2) has a child 12 years of age or younger, or 14 years of
age or younger who is handicapped as defined in section 125A.02,
and who is receiving or will receive care on a regular basis
from a licensed or legal, nonlicensed caregiver;
(3) is income eligible as determined by the office's
policies and rules, but is not a recipient of assistance from
either aid to families with dependent children or the Minnesota
family investment program-statewide program;
(4) has not earned a baccalaureate degree and has been
enrolled full time less than eight semesters, 12 quarters, or
the equivalent;
(5) is pursuing a nonsectarian program or course of study
that applies to an undergraduate degree, diploma, or
certificate;
(6) is enrolled at least half time in an eligible
institution; and
(7) is in good academic standing and making satisfactory
academic progress.
Sec. 26. Minnesota Statutes 1998, section 145.415,
subdivision 3, is amended to read:
Subd. 3. [STATUS.] (1) Unless the abortion is performed to
save the life of the woman or child, or, (2) unless one or both
of the parents of the unborn child agrees within 30 days of the
birth to accept the parental rights and responsibilities for the
child if it survives the abortion, whenever an abortion of a
potentially viable fetus results in a live birth, the child
shall be an abandoned ward of the state and the parents shall
have no parental rights or obligations as if the parental rights
had been terminated pursuant to section 260.221. The child
shall be provided for pursuant to sections 256.12, subdivision
14 and 256.72 to 256.87 chapter 256J.
Sec. 27. Minnesota Statutes 1998, section 145.93,
subdivision 3, is amended to read:
Subd. 3. [GRANT AWARD; DESIGNATION; PAYMENTS UNDER GRANT.]
Each odd-numbered year the commissioner shall solicit
applications for the poison information centers by giving
reasonable public notice of the availability of money
appropriated or otherwise available. The commissioner shall
select from among the nonprofit corporations entities, whether
profit or nonprofit, or units of government the applicants that
best fulfill the criteria specified in subdivision 4. The grant
shall be paid to the grantees quarterly beginning on July 1.
Sec. 28. Minnesota Statutes 1998, section 196.27, is
amended to read:
196.27 [AGENT ORANGE SETTLEMENT PAYMENTS.]
(a) Payments received by veterans or their dependents
because of settlements between them and the manufacturers of
Agent Orange or other chemical agents, as defined in section
196.21, must not be treated as income (or an available resource)
of the veterans or their dependents for the purposes of any
program of public assistance or benefit program administered by
the department of veterans affairs, the department of human
services, or other agencies of the state or political
subdivisions of the state, except as provided in paragraph (b).
(b) The income and resource exclusion in paragraph (a) does
not apply to the medical assistance, food stamps, aid to
families with dependent children or Minnesota family investment
program-statewide programs until the commissioner of human
services receives formal approval from the United States
Department of Health and Human Services, for the medical
assistance, aid to families with dependent children or Minnesota
family investment program-statewide programs, and from the
United States Department of Agriculture, for the food stamps
program. The income exclusion does not apply to the Minnesota
supplemental aid program until the commissioner receives formal
federal approval of the exclusion for the medical assistance
program.
Sec. 29. Minnesota Statutes 1998, section 237.70,
subdivision 4a, is amended to read:
Subd. 4a. [HOUSEHOLD ELIGIBLE FOR CREDIT.] The telephone
assistance plan must provide telephone assistance credit for a
residential household in Minnesota that meets each of the
following criteria:
(1) has a household member who:
(i) subscribes to local exchange service; and
(ii) is either disabled or 65 years of age or older;
(2) whose household income is 150 percent or less of
federal poverty guidelines or is currently eligible for:
(i) aid to families with dependent children or Minnesota
family investment program-statewide program;
(ii) medical assistance;
(iii) general assistance;
(iv) Minnesota supplemental aid;
(v) food stamps;
(vi) refugee cash assistance or refugee medical assistance;
(vii) energy assistance; or
(viii) supplemental security income; and
(3) who has been certified as eligible for telephone
assistance plan credits.
Sec. 30. Minnesota Statutes 1998, section 245.4871,
subdivision 25, is amended to read:
Subd. 25. [MENTAL HEALTH FUNDS.] "Mental health funds" are
funds expended under sections 245.73 and 256E.12, federal mental
health block grant funds, and funds expended under
sections section 256D.06 and 256D.37 to facilities licensed
under Minnesota Rules, parts 9520.0500 to 9520.0690.
Sec. 31. Minnesota Statutes 1998, section 252.28,
subdivision 3a, is amended to read:
Subd. 3a. [LICENSING EXCEPTION.] (a) Notwithstanding the
provisions of subdivision 3, the commissioner may license
service sites, each accommodating up to six residents moving
from a 48-bed intermediate care facility for persons with mental
retardation or related conditions located in Dakota county that
is closing under section 252.292.
(b) Notwithstanding the provisions of any other state law
or administrative rule, the rate provisions of section 256I.05,
subdivision 1, apply to the exception in this subdivision.
Sec. 32. Minnesota Statutes 1998, section 254B.02,
subdivision 1, is amended to read:
Subdivision 1. [CHEMICAL DEPENDENCY TREATMENT ALLOCATION.]
The chemical dependency funds appropriated for allocation shall
be placed in a special revenue account. The commissioner shall
annually transfer funds from the chemical dependency fund to pay
for operation of the drug and alcohol abuse normative evaluation
system and to pay for all costs incurred by adding two positions
for licensing of chemical dependency treatment and
rehabilitation programs located in hospitals for which funds are
not otherwise appropriated. For each year of the biennium
ending June 30, 1999, the commissioner shall allocate funds to
the American Indian chemical dependency tribal account for
treatment of American Indians by eligible vendors under section
254B.05, equal to the amount allocated in fiscal year 1997. The
commissioner shall annually divide the money available in the
chemical dependency fund that is not held in reserve by counties
from a previous allocation, or allocated to the American Indian
chemical dependency tribal account. Six percent of the
remaining money must be reserved for the nonreservation American
Indian chemical dependency allocation for treatment of American
Indians by eligible vendors under section 254B.05, subdivision
1. The remainder of the money must be allocated among the
counties according to the following formula, using state
demographer data and other data sources determined by the
commissioner:
(a) For purposes of this formula, American Indians and
children under age 14 are subtracted from the population of each
county to determine the restricted population.
(b) The amount of chemical dependency fund expenditures for
entitled persons for services not covered by prepaid plans
governed by section 256B.69 in the previous year is divided by
the amount of chemical dependency fund expenditures for entitled
persons for all services to determine the proportion of exempt
service expenditures for each county.
(c) The prepaid plan months of eligibility is multiplied by
the proportion of exempt service expenditures to determine the
adjusted prepaid plan months of eligibility for each county.
(d) The adjusted prepaid plan months of eligibility is
added to the number of restricted population fee for service
months of eligibility for aid to families with dependent
children, Minnesota family investment program-statewide program,
general assistance, and medical assistance and divided by the
county restricted population to determine county per capita
months of covered service eligibility.
(e) The number of adjusted prepaid plan months of
eligibility for the state is added to the number of fee for
service months of eligibility for aid to families with dependent
children, Minnesota family investment program-statewide program,
general assistance, and medical assistance for the state
restricted population and divided by the state restricted
population to determine state per capita months of covered
service eligibility.
(f) The county per capita months of covered service
eligibility is divided by the state per capita months of covered
service eligibility to determine the county welfare caseload
factor.
(g) The median married couple income for the most recent
three-year period available for the state is divided by the
median married couple income for the same period for each county
to determine the income factor for each county.
(h) The county restricted population is multiplied by the
sum of the county welfare caseload factor and the county income
factor to determine the adjusted population.
(i) $15,000 shall be allocated to each county.
(j) The remaining funds shall be allocated proportional to
the county adjusted population.
Sec. 33. Minnesota Statutes 1998, section 256.01,
subdivision 2, is amended to read:
Subd. 2. [SPECIFIC POWERS.] Subject to the provisions of
section 241.021, subdivision 2, the commissioner of human
services shall:
(1) Administer and supervise all forms of public assistance
provided for by state law and other welfare activities or
services as are vested in the commissioner. Administration and
supervision of human services activities or services includes,
but is not limited to, assuring timely and accurate distribution
of benefits, completeness of service, and quality program
management. In addition to administering and supervising human
services activities vested by law in the department, the
commissioner shall have the authority to:
(a) require county agency participation in training and
technical assistance programs to promote compliance with
statutes, rules, federal laws, regulations, and policies
governing human services;
(b) monitor, on an ongoing basis, the performance of county
agencies in the operation and administration of human services,
enforce compliance with statutes, rules, federal laws,
regulations, and policies governing welfare services and promote
excellence of administration and program operation;
(c) develop a quality control program or other monitoring
program to review county performance and accuracy of benefit
determinations;
(d) require county agencies to make an adjustment to the
public assistance benefits issued to any individual consistent
with federal law and regulation and state law and rule and to
issue or recover benefits as appropriate;
(e) delay or deny payment of all or part of the state and
federal share of benefits and administrative reimbursement
according to the procedures set forth in section 256.017;
(f) make contracts with and grants to public and private
agencies and organizations, both profit and nonprofit, and
individuals, using appropriated funds; and
(g) enter into contractual agreements with federally
recognized Indian tribes with a reservation in Minnesota to the
extent necessary for the tribe to operate a federally approved
family assistance program or any other program under the
supervision of the commissioner. The commissioner shall consult
with the affected county or counties in the contractual
agreement negotiations, if the county or counties wish to be
included, in order to avoid the duplication of county and tribal
assistance program services. The commissioner may establish
necessary accounts for the purposes of receiving and disbursing
funds as necessary for the operation of the programs.
(2) Inform county agencies, on a timely basis, of changes
in statute, rule, federal law, regulation, and policy necessary
to county agency administration of the programs.
(3) Administer and supervise all child welfare activities;
promote the enforcement of laws protecting handicapped,
dependent, neglected and delinquent children, and children born
to mothers who were not married to the children's fathers at the
times of the conception nor at the births of the children;
license and supervise child-caring and child-placing agencies
and institutions; supervise the care of children in boarding and
foster homes or in private institutions; and generally perform
all functions relating to the field of child welfare now vested
in the state board of control.
(4) Administer and supervise all noninstitutional service
to handicapped persons, including those who are visually
impaired, hearing impaired, or physically impaired or otherwise
handicapped. The commissioner may provide and contract for the
care and treatment of qualified indigent children in facilities
other than those located and available at state hospitals when
it is not feasible to provide the service in state hospitals.
(5) Assist and actively cooperate with other departments,
agencies and institutions, local, state, and federal, by
performing services in conformity with the purposes of Laws
1939, chapter 431.
(6) Act as the agent of and cooperate with the federal
government in matters of mutual concern relative to and in
conformity with the provisions of Laws 1939, chapter 431,
including the administration of any federal funds granted to the
state to aid in the performance of any functions of the
commissioner as specified in Laws 1939, chapter 431, and
including the promulgation of rules making uniformly available
medical care benefits to all recipients of public assistance, at
such times as the federal government increases its participation
in assistance expenditures for medical care to recipients of
public assistance, the cost thereof to be borne in the same
proportion as are grants of aid to said recipients.
(7) Establish and maintain any administrative units
reasonably necessary for the performance of administrative
functions common to all divisions of the department.
(8) Act as designated guardian of both the estate and the
person of all the wards of the state of Minnesota, whether by
operation of law or by an order of court, without any further
act or proceeding whatever, except as to persons committed as
mentally retarded. For children under the guardianship of the
commissioner whose interests would be best served by adoptive
placement, the commissioner may contract with a licensed
child-placing agency to provide adoption services. A contract
with a licensed child-placing agency must be designed to
supplement existing county efforts and may not replace existing
county programs, unless the replacement is agreed to by the
county board and the appropriate exclusive bargaining
representative or the commissioner has evidence that child
placements of the county continue to be substantially below that
of other counties.
(9) Act as coordinating referral and informational center
on requests for service for newly arrived immigrants coming to
Minnesota.
(10) The specific enumeration of powers and duties as
hereinabove set forth shall in no way be construed to be a
limitation upon the general transfer of powers herein contained.
(11) Establish county, regional, or statewide schedules of
maximum fees and charges which may be paid by county agencies
for medical, dental, surgical, hospital, nursing and nursing
home care and medicine and medical supplies under all programs
of medical care provided by the state and for congregate living
care under the income maintenance programs.
(12) Have the authority to conduct and administer
experimental projects to test methods and procedures of
administering assistance and services to recipients or potential
recipients of public welfare. To carry out such experimental
projects, it is further provided that the commissioner of human
services is authorized to waive the enforcement of existing
specific statutory program requirements, rules, and standards in
one or more counties. The order establishing the waiver shall
provide alternative methods and procedures of administration,
shall not be in conflict with the basic purposes, coverage, or
benefits provided by law, and in no event shall the duration of
a project exceed four years. It is further provided that no
order establishing an experimental project as authorized by the
provisions of this section shall become effective until the
following conditions have been met:
(a) The secretary of health, education, and welfare and
human services of the United States has agreed, for the same
project, to waive state plan requirements relative to statewide
uniformity.
(b) A comprehensive plan, including estimated project
costs, shall be approved by the legislative advisory commission
and filed with the commissioner of administration.
(13) According to federal requirements, establish
procedures to be followed by local welfare boards in creating
citizen advisory committees, including procedures for selection
of committee members.
(14) Allocate federal fiscal disallowances or sanctions
which are based on quality control error rates for the aid to
families with dependent children program formerly codified in
sections 256.72 to 256.87, Minnesota family investment
program-statewide, medical assistance, or food stamp program in
the following manner:
(a) One-half of the total amount of the disallowance shall
be borne by the county boards responsible for administering the
programs. For the medical assistance, MFIP-S, and the AFDC
programs program formerly codified in sections 256.72 to 256.87,
disallowances shall be shared by each county board in the same
proportion as that county's expenditures for the sanctioned
program are to the total of all counties' expenditures for the
AFDC program formerly codified in sections 256.72 to
256.87, MFIP-S, and medical assistance programs. For the food
stamp program, sanctions shall be shared by each county board,
with 50 percent of the sanction being distributed to each county
in the same proportion as that county's administrative costs for
food stamps are to the total of all food stamp administrative
costs for all counties, and 50 percent of the sanctions being
distributed to each county in the same proportion as that
county's value of food stamp benefits issued are to the total of
all benefits issued for all counties. Each county shall pay its
share of the disallowance to the state of Minnesota. When a
county fails to pay the amount due hereunder, the commissioner
may deduct the amount from reimbursement otherwise due the
county, or the attorney general, upon the request of the
commissioner, may institute civil action to recover the amount
due.
(b) Notwithstanding the provisions of paragraph (a), if the
disallowance results from knowing noncompliance by one or more
counties with a specific program instruction, and that knowing
noncompliance is a matter of official county board record, the
commissioner may require payment or recover from the county or
counties, in the manner prescribed in paragraph (a), an amount
equal to the portion of the total disallowance which resulted
from the noncompliance, and may distribute the balance of the
disallowance according to paragraph (a).
(15) Develop and implement special projects that maximize
reimbursements and result in the recovery of money to the
state. For the purpose of recovering state money, the
commissioner may enter into contracts with third parties. Any
recoveries that result from projects or contracts entered into
under this paragraph shall be deposited in the state treasury
and credited to a special account until the balance in the
account reaches $1,000,000. When the balance in the account
exceeds $1,000,000, the excess shall be transferred and credited
to the general fund. All money in the account is appropriated
to the commissioner for the purposes of this paragraph.
(16) Have the authority to make direct payments to
facilities providing shelter to women and their children
according to section 256D.05, subdivision 3. Upon the written
request of a shelter facility that has been denied payments
under section 256D.05, subdivision 3, the commissioner shall
review all relevant evidence and make a determination within 30
days of the request for review regarding issuance of direct
payments to the shelter facility. Failure to act within 30 days
shall be considered a determination not to issue direct payments.
(17) Have the authority to establish and enforce the
following county reporting requirements:
(a) The commissioner shall establish fiscal and statistical
reporting requirements necessary to account for the expenditure
of funds allocated to counties for human services programs.
When establishing financial and statistical reporting
requirements, the commissioner shall evaluate all reports, in
consultation with the counties, to determine if the reports can
be simplified or the number of reports can be reduced.
(b) The county board shall submit monthly or quarterly
reports to the department as required by the commissioner.
Monthly reports are due no later than 15 working days after the
end of the month. Quarterly reports are due no later than 30
calendar days after the end of the quarter, unless the
commissioner determines that the deadline must be shortened to
20 calendar days to avoid jeopardizing compliance with federal
deadlines or risking a loss of federal funding. Only reports
that are complete, legible, and in the required format shall be
accepted by the commissioner.
(c) If the required reports are not received by the
deadlines established in clause (b), the commissioner may delay
payments and withhold funds from the county board until the next
reporting period. When the report is needed to account for the
use of federal funds and the late report results in a reduction
in federal funding, the commissioner shall withhold from the
county boards with late reports an amount equal to the reduction
in federal funding until full federal funding is received.
(d) A county board that submits reports that are late,
illegible, incomplete, or not in the required format for two out
of three consecutive reporting periods is considered
noncompliant. When a county board is found to be noncompliant,
the commissioner shall notify the county board of the reason the
county board is considered noncompliant and request that the
county board develop a corrective action plan stating how the
county board plans to correct the problem. The corrective
action plan must be submitted to the commissioner within 45 days
after the date the county board received notice of noncompliance.
(e) The final deadline for fiscal reports or amendments to
fiscal reports is one year after the date the report was
originally due. If the commissioner does not receive a report
by the final deadline, the county board forfeits the funding
associated with the report for that reporting period and the
county board must repay any funds associated with the report
received for that reporting period.
(f) The commissioner may not delay payments, withhold
funds, or require repayment under paragraph (c) or (e) if the
county demonstrates that the commissioner failed to provide
appropriate forms, guidelines, and technical assistance to
enable the county to comply with the requirements. If the
county board disagrees with an action taken by the commissioner
under paragraph (c) or (e), the county board may appeal the
action according to sections 14.57 to 14.69.
(g) Counties subject to withholding of funds under
paragraph (c) or forfeiture or repayment of funds under
paragraph (e) shall not reduce or withhold benefits or services
to clients to cover costs incurred due to actions taken by the
commissioner under paragraph (c) or (e).
(18) Allocate federal fiscal disallowances or sanctions for
audit exceptions when federal fiscal disallowances or sanctions
are based on a statewide random sample for the foster care
program under title IV-E of the Social Security Act, United
States Code, title 42, in direct proportion to each county's
title IV-E foster care maintenance claim for that period.
(19) Be responsible for ensuring the detection, prevention,
investigation, and resolution of fraudulent activities or
behavior by applicants, recipients, and other participants in
the human services programs administered by the department.
(20) Require county agencies to identify overpayments,
establish claims, and utilize all available and cost-beneficial
methodologies to collect and recover these overpayments in the
human services programs administered by the department.
(21) Have the authority to administer a drug rebate program
for drugs purchased pursuant to the senior citizen drug program
established under section 256.955 after the beneficiary's
satisfaction of any deductible established in the program. The
commissioner shall require a rebate agreement from all
manufacturers of covered drugs as defined in section 256B.0625,
subdivision 13. For each drug, the amount of the rebate shall
be equal to the basic rebate as defined for purposes of the
federal rebate program in United States Code, title 42, section
1396r-8(c)(1). This basic rebate shall be applied to
single-source and multiple-source drugs. The manufacturers must
provide full payment within 30 days of receipt of the state
invoice for the rebate within the terms and conditions used for
the federal rebate program established pursuant to section 1927
of title XIX of the Social Security Act. The manufacturers must
provide the commissioner with any information necessary to
verify the rebate determined per drug. The rebate program shall
utilize the terms and conditions used for the federal rebate
program established pursuant to section 1927 of title XIX of the
Social Security Act.
Sec. 34. Minnesota Statutes 1998, section 256.01,
subdivision 4, is amended to read:
Subd. 4. [DUTIES AS STATE AGENCY.] The state agency shall:
(1) supervise the administration of assistance to dependent
children under Laws 1937, chapter 438, by the county agencies in
an integrated program with other service for dependent children
maintained under the direction of the state agency;
(2) may subpoena witnesses and administer oaths, make
rules, and take such action as may be necessary, or desirable
for carrying out the provisions of Laws 1937, chapter 438. All
rules made by the state agency shall be binding on the counties
and shall be complied with by the respective county agencies;
(3) establish adequate standards for personnel employed by
the counties and the state agency in the administration of Laws
1937, chapter 438, and make the necessary rules to maintain such
standards;
(4) prescribe the form of and print and supply to the
county agencies blanks for applications, reports, affidavits,
and such other forms as it may deem necessary and advisable;
(5) cooperate with the federal government and its public
welfare agencies in any reasonable manner as may be necessary to
qualify for federal aid for aid to dependent children temporary
assistance for needy families and in conformity with the
provisions of Laws 1937, chapter 438 title I of Public Law
Number 104-193, the Personal Responsibility and Work Opportunity
Reconciliation Act of 1996 and successor amendments, including
the making of such reports and such forms and containing such
information as the Federal Social Security Board may from time
to time require, and comply with such provisions as such board
may from time to time find necessary to assure the correctness
and verification of such reports;
(6) may cooperate with other state agencies in establishing
reciprocal agreements in instances where a child receiving aid
to dependent children Minnesota family investment program
assistance moves or contemplates moving into or out of the
state, in order that such child may continue to receive
supervised aid from the state moved from until the child shall
have resided for one year in the state moved to;
(7) on or before October 1 in each even-numbered year make
a biennial report to the governor concerning the activities of
the agency; and
(8) enter into agreements with other departments of the
state as necessary to meet all requirements of the federal
government.
Sec. 35. Minnesota Statutes 1998, section 256.017,
subdivision 1, is amended to read:
Subdivision 1. [AUTHORITY AND PURPOSE.] The commissioner
shall administer a compliance system for aid to families with
dependent children, the Minnesota family investment
program-statewide program, the food stamp program, emergency
assistance, general assistance, medical assistance, general
assistance medical care, emergency general assistance, Minnesota
supplemental assistance, preadmission screening, and alternative
care grants under the powers and authorities named in section
256.01, subdivision 2. The purpose of the compliance system is
to permit the commissioner to supervise the administration of
public assistance programs and to enforce timely and accurate
distribution of benefits, completeness of service and efficient
and effective program management and operations, to increase
uniformity and consistency in the administration and delivery of
public assistance programs throughout the state, and to reduce
the possibility of sanctions and fiscal disallowances for
noncompliance with federal regulations and state statutes.
The commissioner shall utilize training, technical
assistance, and monitoring activities, as specified in section
256.01, subdivision 2, to encourage county agency compliance
with written policies and procedures.
Sec. 36. Minnesota Statutes 1998, section 256.017,
subdivision 2, is amended to read:
Subd. 2. [DEFINITIONS.] The following terms have the
meanings given for purposes of this section.
(a) "Administrative penalty" means an adjustment against
the county agency's state and federal benefit and federal
administrative reimbursement when the commissioner determines
that the county agency is not in compliance with the policies
and procedures established by the commissioner.
(b) "Quality control case penalty" means an adjustment
against the county agency's federal administrative reimbursement
and state and federal benefit reimbursement when the
commissioner determines through a quality control review that
the county agency has made incorrect payments, terminations, or
denials of benefits as determined by state quality control
procedures for the aid to families with dependent
children program formerly codified in sections 256.72 to 256.87,
Minnesota family investment program-statewide program, food
stamp, or medical assistance programs, or any other programs for
which the commissioner has developed a quality control system.
Quality control case penalties apply only to agency errors as
defined by state quality control procedures.
(c) "Quality control/quality assurance" means a review
system of a statewide random sample of cases, designed to
provide data on program outcomes and the accuracy with which
state and federal policies are being applied in issuing benefits
and as a fiscal audit to ensure the accuracy of expenditures.
The quality control/quality assurance system is administered by
the department. For the aid to families with dependent children
program formerly codified in sections 256.72 to
256.87, Minnesota family investment program-statewide, food
stamp, and medical assistance programs, the quality control
system is that required by federal regulation, or those
developed by the commissioner.
Sec. 37. Minnesota Statutes 1998, section 256.017,
subdivision 4, is amended to read:
Subd. 4. [DETERMINING THE AMOUNT OF THE QUALITY CONTROL
CASE PENALTY.] (a) The amount of the quality control case
penalty is limited to the amount of the dollar error for the
quality control sample month in a reviewed case as determined by
the state quality control review procedures for the aid to
families with dependent children program formerly codified in
sections 256.72 to 256.87, Minnesota family investment
program-statewide and food stamp programs or for any other
income transfer program for which the commissioner develops a
quality control program.
(b) Payment errors in medical assistance or any other
medical services program for which the department develops a
quality control program are subject to set rate penalties based
on the average cost of the specific quality control error
element for a sample review month for that household size and
status of institutionalization and as determined from state
quality control data in the preceding fiscal year for the
corresponding program.
(c) Errors identified in negative action cases, such as
incorrect terminations or denials of assistance are subject to
set rate penalties based on the average benefit cost of that
household size as determined from state quality control data in
the preceding fiscal year for the corresponding program.
Sec. 38. Minnesota Statutes 1998, section 256.019, is
amended to read:
256.019 [RECOVERY OF MONEY; APPORTIONMENT.]
When an amount is recovered from any source for assistance
given under the provisions governing public assistance programs
including the aid to families with dependent children program
formerly codified in sections 256.72 to 256.87, MFIP-S MFIP,
general assistance medical care, emergency assistance, general
assistance, and Minnesota supplemental aid, the county may keep
one-half of recovery made by the county agency using any method
other than recoupment. For medical assistance, if the recovery
is made by a county agency using any method other than
recoupment, the county may keep one-half of the nonfederal share
of the recovery. This does not apply to recoveries from medical
providers or to recoveries begun by the department of human
services' surveillance and utilization review division, state
hospital collections unit, and the benefit recoveries division
or, by the attorney general's office, or child support
collections. In the food stamp program, the nonfederal share of
recoveries in the federal tax refund offset program (FTROP) only
will be divided equally between the state agency and the
involved county agency.
Sec. 39. Minnesota Statutes 1998, section 256.025,
subdivision 2, is amended to read:
Subd. 2. [COVERED PROGRAMS AND SERVICES.] The procedures
in this section govern payment of county agency expenditures for
benefits and services distributed under the following programs:
(1) the aid to families with dependent children formerly
codified under sections 256.82, subdivision 1, and 256.935,
subdivision 1, for assistance costs incurred prior to July 1,
1997;
(2) medical assistance under sections 256B.041, subdivision
5, and 256B.19, subdivision 1;
(3) general assistance medical care under section 256D.03,
subdivision 6, for assistance costs incurred prior to July 1,
1997;
(4) general assistance under section 256D.03, subdivision
2, for assistance costs incurred prior to July 1, 1997;
(5) work readiness under section 256D.03, subdivision 2,
for assistance costs incurred prior to July 1, 1995;
(6) the emergency assistance formerly codified under
section 256.871, subdivision 6, for assistance costs incurred
prior to July 1, 1997;
(7) Minnesota supplemental aid under section 256D.36,
subdivision 1, for assistance costs incurred prior to July 1,
1997;
(8) preadmission screening and alternative care grants for
assistance costs incurred prior to July 1, 1997;
(9) work readiness services under section 256D.051 for
employment and training services costs incurred prior to July 1,
1995;
(10) case management services under formerly codified in
Minnesota Statutes 1994, section 256.736, subdivision 13 11, for
case management service costs incurred prior to July 1, 1995;
(11) general assistance claims processing, medical
transportation and related costs for costs incurred prior to
July 1, 1997;
(12) medical transportation and related costs for
transportation and related costs incurred prior to July 1, 1997;
and
(13) group residential housing under section 256I.05,
subdivision 8, transferred from programs in clauses (4) and (7),
for assistance costs incurred prior to July 1, 1997.
Sec. 40. Minnesota Statutes 1998, section 256.046,
subdivision 1, is amended to read:
Subdivision 1. [HEARING AUTHORITY.] A local agency shall
initiate an administrative fraud disqualification hearing for
individuals accused of wrongfully obtaining assistance or
intentional program violations, in lieu of a criminal action
when it has not been pursued, in the aid to families with
dependent children program formerly codified in sections 256.72
to 256.87, MFIP-S MFIP, child care, general assistance, family
general assistance program formerly codified in section 256D.05,
subdivision 1, clause (15), Minnesota supplemental aid, medical
care, or food stamp programs. The hearing is subject to the
requirements of section 256.045 and the requirements in Code of
Federal Regulations, title 7, section 273.16, for the food stamp
program and title 45, section 235.112, as of September 30, 1995,
for the cash grant and medical care programs.
Sec. 41. Minnesota Statutes 1998, section 256.0471,
subdivision 1, is amended to read:
Subdivision 1. [QUALIFYING OVERPAYMENT.] Any overpayment
for assistance granted under sections section 119B.05, the MFIP
program formerly codified under sections 256.031 to 256.0361,
and the AFDC program formerly codified under sections 256.72 to
256.871; chapters 256B, 256D, 256I, 256J, and 256K; and the food
stamp program, except agency error claims, become a judgment by
operation of law 90 days after the notice of overpayment is
personally served upon the recipient in a manner that is
sufficient under rule 4.03(a) of the Rules of Civil Procedure
for district courts, or by certified mail, return receipt
requested. This judgment shall be entitled to full faith and
credit in this and any other state.
Sec. 42. Minnesota Statutes 1998, section 256.741,
subdivision 1, is amended to read:
Subdivision 1. [PUBLIC ASSISTANCE.] (a) The term "public
assistance" as used in this chapter and chapters 257, 518, and
518C, includes any form of assistance provided under the AFDC
program formerly codified in sections 256.72 to 256.87, MFIP,
and MFIP-R formerly codified under chapter 256, MFIP-S MFIP
under chapter 256J, and work first program under chapter 256K;
child care assistance provided through the child care
fund according to under chapter 119B; any form of medical
assistance under chapter 256B; MinnesotaCare under chapter 256L;
and foster care as provided under title IV-E of the Social
Security Act.
(b) The term "child support agency" as used in this section
refers to the public authority responsible for child support
enforcement.
(c) The term "public assistance agency" as used in this
section refers to a public authority providing public assistance
to an individual.
Sec. 43. Minnesota Statutes 1998, section 256.741,
subdivision 2, is amended to read:
Subd. 2. [ASSIGNMENT OF SUPPORT AND MAINTENANCE RIGHTS.]
(a) An individual receiving public assistance in the form of
assistance under any of the following programs: the AFDC
program formerly codified in sections 256.72 to 256.87, MFIP-S
MFIP under chapter 256J, MFIP-R, and MFIP formerly codified
under chapter 256, and or work first is considered to have
assigned to the state at the time of application all rights to
child support and maintenance from any other person the
applicant or recipient may have in the individual's own behalf
or in the behalf of any other family member for whom application
for public assistance is made. An assistance unit is ineligible
for aid to families with dependent children or its successor the
Minnesota family investment program unless the caregiver assigns
all rights to child support and spousal maintenance benefits
according to this section.
(1) An assignment made according to this section is
effective as to:
(i) any current child support and current spousal
maintenance; and
(ii) any accrued child support and spousal maintenance
arrears.
(2) An assignment made after September 30, 1997, is
effective as to:
(i) any current child support and current spousal
maintenance;
(ii) any accrued child support and spousal maintenance
arrears collected before October 1, 2000, or the date the
individual terminates assistance, whichever is later; and
(iii) any accrued child support and spousal maintenance
arrears collected under federal tax intercept.
(b) An individual receiving public assistance in the form
of medical assistance, including MinnesotaCare, is considered to
have assigned to the state at the time of application all rights
to medical support from any other person the individual may have
in the individual's own behalf or in the behalf of any other
family member for whom medical assistance is provided.
An assignment made after September 30, 1997, is effective
as to any medical support accruing after the date of medical
assistance or MinnesotaCare eligibility.
(c) An individual receiving public assistance in the form
of child care assistance under the child care fund pursuant to
chapter 119B is considered to have assigned to the state at the
time of application all rights to child care support from any
other person the individual may have in the individual's own
behalf or in the behalf of any other family member for whom
child care assistance is provided.
An assignment made according to this paragraph is effective
as to:
(1) any current child care support and any child care
support arrears assigned and accruing after July 1, 1997, that
are collected before October 1, 2000; and
(2) any accrued child care support arrears collected under
federal tax intercept.
Sec. 44. Minnesota Statutes 1998, section 256.82,
subdivision 2, is amended to read:
Subd. 2. [FOSTER CARE MAINTENANCE PAYMENTS.]
Notwithstanding subdivision 1, for the purposes of foster care
maintenance payments under title IV-E of the federal Social
Security Act, United States Code, title 42, sections 670 to 676,
during the period beginning July 1, 1985, and ending December
31, 1985, the county paying the maintenance costs shall be
reimbursed for the costs from those federal funds available for
that purpose together with an amount of state funds equal to a
percentage of the difference between the total cost and the
federal funds made available for payment. This percentage shall
not exceed the percentage specified in subdivision 1 for the aid
to families with dependent children program. In the event that
the state appropriation for this purpose is less than the state
percentage set in subdivision 1, the reimbursement shall be
ratably reduced to the county. Beginning January 1, 1986, for
the purpose of foster care maintenance payments under title IV-E
of the Social Security Act, United States Code, title 42,
sections 670 to 676, the county paying the maintenance costs
must be reimbursed for the costs from the federal money
available for the purpose. Beginning July 1, 1997, for the
purposes of determining a child's eligibility under title IV-E
of the Social Security Act, the placing agency shall use AFDC
requirements in effect on July 16, 1996.
Sec. 45. Minnesota Statutes 1998, section 256.935,
subdivision 1, is amended to read:
Subdivision 1. On the death of any person receiving public
assistance through aid to dependent children or MFIP-S MFIP, the
county agency shall pay an amount for funeral expenses not
exceeding the amount paid for comparable services under section
261.035 plus actual cemetery charges. No funeral expenses shall
be paid if the estate of the deceased is sufficient to pay such
expenses or if the spouse, who was legally responsible for the
support of the deceased while living, is able to pay such
expenses; provided, that the additional payment or donation of
the cost of cemetery lot, interment, religious service, or for
the transportation of the body into or out of the community in
which the deceased resided, shall not limit payment by the
county agency as herein authorized. Freedom of choice in the
selection of a funeral director shall be granted to persons
lawfully authorized to make arrangements for the burial of any
such deceased recipient. In determining the sufficiency of such
estate, due regard shall be had for the nature and marketability
of the assets of the estate. The county agency may grant
funeral expenses where the sale would cause undue loss to the
estate. Any amount paid for funeral expenses shall be a prior
claim against the estate, as provided in section 524.3-805, and
any amount recovered shall be reimbursed to the agency which
paid the expenses. The commissioner shall specify requirements
for reports, including fiscal reports, according to section
256.01, subdivision 2, paragraph (17). The state share shall
pay the entire amount of county agency expenditures. Benefits
shall be issued to recipients by the state or county subject to
provisions of section 256.017.
Sec. 46. Minnesota Statutes 1998, section 256.98,
subdivision 1, is amended to read:
Subdivision 1. [WRONGFULLY OBTAINING ASSISTANCE.] A person
who commits any of the following acts or omissions with intent
to defeat the purposes of sections 145.891 to 145.897,
256.12, the MFIP program formerly codified in sections 256.031
to 256.361 256.0361, the AFDC program formerly codified in
sections 256.72 to 256.871, 256.9365, 256.94 to 256.966, child
care, MFIP-S, chapter and chapters 256B, 256D, 256J, 256K, or
256L, or all of these sections, is guilty of theft and shall be
sentenced under section 609.52, subdivision 3, clauses (1) to
(5):
(1) obtains or attempts to obtain, or aids or abets any
person to obtain by means of a willfully false statement or
representation, by intentional concealment of any material fact,
or by impersonation or other fraudulent device, assistance or
the continued receipt of assistance, to include child care or
vouchers produced according to sections 145.891 to 145.897 and
MinnesotaCare services according to sections 256.9365, 256.94,
and 256L.01 to 256L.16, to which the person is not entitled or
assistance greater than that to which the person is entitled;
(2) knowingly aids or abets in buying or in any way
disposing of the property of a recipient or applicant of
assistance without the consent of the county agency.
The continued receipt of assistance to which the person is
not entitled or greater than that to which the person is
entitled as a result of any of the acts, failure to act, or
concealment described in this subdivision shall be deemed to be
continuing offenses from the date that the first act or failure
to act occurred.
Sec. 47. Minnesota Statutes 1998, section 256.98,
subdivision 8, is amended to read:
Subd. 8. [DISQUALIFICATION FROM PROGRAM.] Any person found
to be guilty of wrongfully obtaining assistance by a federal or
state court or by an administrative hearing determination, or
waiver thereof, through a disqualification consent agreement, or
as part of any approved diversion plan under section 401.065, or
any court-ordered stay which carries with it any probationary or
other conditions, in the aid to families with dependent children
program, the Minnesota family assistance program-statewide
program, the food stamp program, the Minnesota family investment
plan, child care program, the general assistance or family
general assistance program, or the Minnesota supplemental aid
program shall be disqualified from that program. The needs of
that individual shall not be taken into consideration in
determining the grant level for that assistance unit:
(1) for one year after the first offense;
(2) for two years after the second offense; and
(3) permanently after the third or subsequent offense.
The period of program disqualification shall begin on the
date stipulated on the advance notice of disqualification
without possibility of postponement for administrative stay or
administrative hearing and shall continue through completion
unless and until the findings upon which the sanctions were
imposed are reversed by a court of competent jurisdiction. The
period for which sanctions are imposed is not subject to
review. The sanctions provided under this subdivision are in
addition to, and not in substitution for, any other sanctions
that may be provided for by law for the offense involved. A
disqualification established through hearing or waiver shall
result in the disqualification period beginning immediately
unless the person has become otherwise ineligible for
assistance. If the person is ineligible for assistance, the
disqualification period begins when the person again meets the
eligibility criteria of the program from which they were
disqualified and makes application for that program.
Sec. 48. Minnesota Statutes 1998, section 256.981, is
amended to read:
256.981 [TRAINING OF WELFARE FRAUD PROSECUTORS.]
The commissioner of human services shall, to the extent an
appropriation is provided for this purpose, contract with the
county attorney's council or other public or private entity
experienced in providing training for prosecutors to conduct
quarterly workshops and seminars focusing on current aid to
families with dependent children and Minnesota family investment
program-statewide program issues, other income maintenance
program changes, recovery issues, alternative sentencing
methods, use of technical aids for interviews and
interrogations, and other matters affecting prosecution of
welfare fraud cases.
Sec. 49. Minnesota Statutes 1998, section 256.983,
subdivision 4, is amended to read:
Subd. 4. [FUNDING.] (a) County agency reimbursement shall
be made through the settlement provisions applicable to the aid
to families with dependent children program formerly codified in
sections 256.72 to 256.87, food stamp program, Minnesota family
investment program-statewide program, and medical assistance
program and other federal and state-funded programs.
(b) The commissioner will maintain program compliance if
for any three consecutive month period, a county agency fails to
comply with fraud prevention investigation program guidelines,
or fails to meet the cost-effectiveness standards developed by
the commissioner. This result is contingent on the commissioner
providing written notice, including an offer of technical
assistance, within 30 days of the end of the third or subsequent
month of noncompliance. The county agency shall be required to
submit a corrective action plan to the commissioner within 30
days of receipt of a notice of noncompliance. Failure to submit
a corrective action plan or, continued deviation from standards
of more than ten percent after submission of a corrective action
plan, will result in denial of funding for each subsequent
month, or billing the county agency for fraud prevention
investigation (FPI) service provided by the commissioner, or
reallocation of program grant funds, or investigative resources,
or both, to other counties. The denial of funding shall apply
to the general settlement received by the county agency on a
quarterly basis and shall not reduce the grant amount applicable
to the FPI project.
Sec. 50. Minnesota Statutes 1998, section 256.9861,
subdivision 5, is amended to read:
Subd. 5. [FUNDING.] (a) State funding shall be made
available contingent on counties submitting a plan that is
approved by the department of human services. Failure or delay
in obtaining that approval shall not, however, eliminate the
obligation to maintain fraud control efforts at the June 30,
1996, level. County agency reimbursement shall be made through
the settlement provisions applicable to the AFDC, MFIP-S MFIP,
food stamp, and medical assistance programs.
(b) Should a county agency fail to comply with the
standards set, or fail to meet cost-effectiveness standards
developed by the commissioner for any three-month period, the
commissioner shall deny reimbursement or administrative costs,
after allowing an opportunity to establish compliance.
(c) Any denial of reimbursement under paragraph (b) is
contingent on the commissioner providing written notice,
including an offer of technical assistance, within 30 days of
the end of the third or subsequent months of noncompliance. The
county agency shall be required to submit a corrective action
plan to the commissioner within 30 days of receipt of a notice
of noncompliance. Failure to submit a corrective action plan or
continued deviation from standards of more than ten percent
after submission of corrective action plan, will result in
denial of funding for each such month during the grant year, or
billing of the county agency for program integrity reinvestment
project services provided by the commissioner or reallocation of
grant funds to other counties. The denial of funding shall
apply to the general settlement received by the county agency on
a quarterly basis and shall not reduce the grant amount
applicable to the program integrity reinvestment project.
Sec. 51. Minnesota Statutes 1998, section 256B.031,
subdivision 4, is amended to read:
Subd. 4. [PREPAID HEALTH PLAN RATES.] For payments made
during calendar year 1988, the monthly maximum allowable rate
established by the commissioner of human services for payment to
prepaid health plans must not exceed 90 percent of the projected
average monthly per capita fee-for-service medical assistance
costs for state fiscal year 1988 for recipients of the aid to
families with dependent children program formerly codified in
sections 256.72 to 256.87. The base year for projecting the
average monthly per capita fee-for-service medical assistance
costs is state fiscal year 1986. A maximum allowable per capita
rate must be established collectively for Anoka, Carver, Dakota,
Hennepin, Ramsey, St. Louis, Scott, and Washington counties. A
separate maximum allowable per capita rate must be established
collectively for all other counties. The maximum allowable per
capita rate may be adjusted to reflect utilization differences
among eligible classes of recipients. For payments made during
calendar year 1989, the maximum allowable rate must be
calculated in the same way as 1988 rates, except the base year
is state fiscal year 1987. For payments made during calendar
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. Rates
established for prepaid health plans must be based on the
services that the prepaid health plan provides under contract
with the commissioner.
Sec. 52. Minnesota Statutes 1998, section 256B.031,
subdivision 5, is amended to read:
Subd. 5. [FREE CHOICE LIMITED.] (a) The commissioner may
require recipients of aid to families with dependent
children the Minnesota family investment program to enroll in a
prepaid health plan and receive services from or through the
prepaid health plan, with the following exceptions:
(1) recipients who are refugees and whose health services
are reimbursed 100 percent by the federal government; and
(2) recipients who are placed in a foster home or
facility. If placement occurs before the seventh day prior to
the end of any month, the recipient will be disenrolled from the
recipient's prepaid health plan effective the first day of the
following month. If placement occurs after the seventh day
before the end of any month, that recipient will be disenrolled
from the prepaid health plan on the first day of the second
month following placement. The prepaid health plan must provide
all services set forth in subdivision 2 during the interim
period.
Enrollment in a prepaid health plan is mandatory only when
recipients have a choice of at least two prepaid health plans.
(b) Recipients who become eligible on or after December 1,
1987, must choose a health plan within 30 days of the date
eligibility is determined. At the time of application, the
local agency shall ask the recipient whether the recipient has a
primary health care provider. If the recipient has not chosen a
health plan within 30 days but has provided the local agency
with the name of a primary health care provider, the local
agency shall determine whether the provider participates in a
prepaid health plan available to the recipient and, if so, the
local agency shall select that plan on the recipient's behalf.
If the recipient has not provided the name of a primary health
care provider who participates in an available prepaid health
plan, commissioner shall randomly assign the recipient to a
health plan.
(c) If possible, the local agency shall ask whether the
recipient has a primary health care provider and the procedures
under paragraph (b) shall apply. If a recipient does not choose
a prepaid health plan by this date, the commissioner shall
randomly assign the recipient to a health plan.
(d) The commissioner shall request a waiver from the
federal Health Care Financing Administration to limit a
recipient's ability to change health plans to once every six or
12 months. If such a waiver is obtained, each recipient must be
enrolled in the health plan for a minimum of six or 12 months.
A recipient may change health plans once within the first 60
days after initial enrollment.
(e) Women who are receiving medical assistance due to
pregnancy and later become eligible for aid to families with
dependent children the Minnesota family investment program are
not required to choose a prepaid health plan until 60 days
postpartum. An infant born as a result of that pregnancy must
be enrolled in a prepaid health plan at the same time as the
mother.
(f) If third-party coverage is available to a recipient
through enrollment in a prepaid health plan through employment,
through coverage by the former spouse, or if a duty of support
has been imposed by law, order, decree, or judgment of a court
under section 518.551, the obligee or recipient shall
participate in the prepaid health plan in which the obligee has
enrolled provided that the commissioner has contracted with the
plan.
Sec. 53. Minnesota Statutes 1998, section 256B.69,
subdivision 5a, is amended to read:
Subd. 5a. [MANAGED CARE CONTRACTS.] Managed care contracts
under this section, and sections 256.9363, 256L.12 and 256D.03,
shall be entered into or renewed on a calendar year basis
beginning January 1, 1996. Managed care contracts which were in
effect on June 30, 1995, and set to renew on July 1, 1995, shall
be renewed for the period July 1, 1995 through December 31, 1995
at the same terms that were in effect on June 30, 1995.
Sec. 54. Minnesota Statutes 1998, section 256C.21, is
amended to read:
256C.21 [DEAF AND HARD-OF-HEARING SERVICES ACT; CITATION.]
Sections 256C.21 to 256C.27 256C.26 may be cited as the
"Deaf and Hard-of-Hearing Services Act."
Sec. 55. Minnesota Statutes 1998, section 256C.23,
subdivision 1, is amended to read:
Subdivision 1. For the purposes of sections 256C.21 to
256C.27 256C.26, the terms defined in this section shall have
the meanings given them, unless the context clearly indicates
otherwise.
Sec. 56. Minnesota Statutes 1998, section 256D.01,
subdivision 1a, is amended to read:
Subd. 1a. [STANDARDS.] (a) A principal objective in
providing general assistance is to provide for single adults,
childless couples, or children as defined in section 256D.02,
subdivision 6, 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, in effect on July 16,
1996, 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 in effect on July 16, 1996. 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 as of July 16, 1996.
Sec. 57. Minnesota Statutes 1998, section 256D.01,
subdivision 1e, is amended to read:
Subd. 1e. [RULES REGARDING EMERGENCY ASSISTANCE.] The
commissioner shall adopt rules under the terms of sections
256D.01 to 256D.21 for general assistance, to require use of the
emergency program under aid to families with dependent children
or MFIP-S MFIP as the primary financial resource when available.
The commissioner shall adopt rules for eligibility for general
assistance of persons with seasonal income and may attribute
seasonal income to other periods not in excess of one year from
receipt by an applicant or recipient. General assistance
payments may not be made for foster care, child welfare
services, or other social services. Vendor payments and
vouchers may be issued only as authorized in sections 256D.05,
subdivision 6, and 256D.09.
Sec. 58. Minnesota Statutes 1998, section 256D.05,
subdivision 1, is amended to read:
Subdivision 1. [ELIGIBILITY.] (a) Each assistance unit
with income and resources less than the standard of assistance
established by the commissioner and with a member who is a
resident of the state shall be eligible for and entitled to
general assistance if the assistance unit 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 according 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 has been assessed by a vocational
specialist and, in consultation with the county agency, has been
determined to be unemployable for purposes of this clause; a
person is considered employable if 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. 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,
according to 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, and 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 the
child has failed or refuses to cooperate with the county agency
in developing the plan;
(11) until March 31, 1998, 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) (12) a person who lives more than four hours
round-trip traveling time from any potential suitable
employment;
(14) (13) 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) until March 31, 1998, a family as defined in
section 256D.02, subdivision 5, which is ineligible for the aid
to families with dependent children program;
(ii) unless exempt under section 256D.051, subdivision 3a,
each adult in the unit must participate in and cooperate with
the food stamp employment and training program under section
256D.051 each month that the unit receives general assistance
benefits. The recipient's participation must begin no later
than 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 an 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
using the notice, good cause, conciliation and termination
procedures specified in section 256D.051;
(16) (14) a person over age 18 whose primary language is
not English and who is attending high school at least half time;
or
(17) (15) a person whose alcohol and drug addiction is a
material factor that contributes to the person's disability;
applicants who assert this clause as a basis for eligibility
must be assessed by the county agency to determine if they are
amenable to treatment; if the applicant is determined to be not
amenable to treatment, but is otherwise eligible for benefits,
then general assistance must be paid in vendor form, for the
individual's shelter costs up to the limit of the grant amount,
with the residual, if any, paid according to section 256D.09,
subdivision 2a; if the applicant is determined to be amenable to
treatment, then in order to receive benefits, the applicant must
be in a treatment program or on a waiting list and the benefits
must be paid in vendor form, for the individual's shelter costs,
up to the limit of the grant amount, with the residual, if any,
paid according to section 256D.09, subdivision 2a.
(b) 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.
(c) The burden of providing documentation for a county
agency to use to verify eligibility for general assistance or
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. 59. Minnesota Statutes 1998, section 256D.05,
subdivision 3, is amended to read:
Subd. 3. [RESIDENTS OF SHELTER FACILITIES.]
Notwithstanding the provisions of subdivisions 1 and 2, general
assistance payments shall be made for maintenance costs and
security costs which are related to providing 24-hour staff
coverage at the facility incurred as a result of residence in a
secure crisis shelter, a housing network, or other shelter
facilities which provide shelter services to women and their
children who are being or have been assaulted by their spouses,
other male relatives, or other males with whom they are residing
or have resided in the past.
These payments shall be made directly to the shelter
facility from general assistance funds on behalf of women and
their children who are receiving, or who are eligible to
receive, aid to families with dependent children Minnesota
family investment program or general assistance.
In determining eligibility of women and children for
payment of general assistance under this subdivision, the asset
limitations of the aid to families with dependent children
Minnesota family investment program shall be applied. Payments
to shelter facilities shall not affect the eligibility of
individuals who reside in shelter facilities for aid to families
with dependent children Minnesota family investment program or
general assistance or payments made to individuals who reside in
shelter facilities through aid to families with dependent
children Minnesota family investment program or general
assistance, except when required by federal law or regulation.
Sec. 60. Minnesota Statutes 1998, section 256D.05,
subdivision 5, is amended to read:
Subd. 5. [TRANSFERS OF PROPERTY.] The equity value of real
and personal property transferred without reasonable
compensation within 12 months preceding the date of application
for general assistance must be included in determining the
resources of an assistance unit in the same manner as in the aid
to families with dependent children program under chapter 256 or
MFIP-S MFIP under chapter 256J.
Sec. 61. Minnesota Statutes 1998, section 256D.051,
subdivision 3a, is amended to read:
Subd. 3a. [PERSONS REQUIRED TO REGISTER FOR AND
PARTICIPATE IN THE FOOD STAMP EMPLOYMENT AND TRAINING PROGRAM.]
(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, the
MFIP-S, MFIP, and MFIP-R programs program, Minnesota
supplemental aid program, or the general assistance program;
(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. 62. Minnesota Statutes 1998, section 256D.055, is
amended to read:
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 Minnesota family investment
program-statewide (MFIP-S) and, until March 31, 1998, aid to
families with dependent children and family general assistance
program 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.
Sec. 63. Minnesota Statutes 1998, section 256D.23,
subdivision 1, is amended to read:
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 256D.21, may qualify for a county
payment under this section.
Sec. 64. Minnesota Statutes 1998, section 256D.435,
subdivision 3, is amended to read:
Subd. 3. [APPLICATION FOR FEDERALLY FUNDED BENEFITS.]
Persons who live with the applicant or recipient, who have unmet
needs and for whom the applicant or recipient has financial
responsibility, must apply for and, if eligible, accept AFDC
Minnesota family investment program and any other federally
funded benefits, including MFIP-S.
Sec. 65. Minnesota Statutes 1998, section 256D.44,
subdivision 5, is amended to read:
Subd. 5. [SPECIAL NEEDS.] In addition to the state
standards of assistance established in subdivisions 1 to 4,
payments are allowed for the following special needs of
recipients of Minnesota supplemental aid who are not residents
of a nursing home, a regional treatment center, or a group
residential housing facility.
(a) The county agency shall pay a monthly allowance for
medically prescribed diets payable under the AFDC program or the
Minnesota family investment program-statewide program if the
cost of those additional dietary needs cannot be met through
some other maintenance benefit.
(b) Payment for nonrecurring special needs must be allowed
for necessary home repairs or necessary repairs or replacement
of household furniture and appliances using the payment standard
of the AFDC program in effect on July 16, 1996, for these
expenses, as long as other funding sources are not available.
(c) A fee for guardian or conservator service is allowed at
a reasonable rate negotiated by the county or approved by the
court. This rate shall not exceed five percent of the
assistance unit's gross monthly income up to a maximum of $100
per month. If the guardian or conservator is a member of the
county agency staff, no fee is allowed.
(d) The county agency shall continue to pay a monthly
allowance of $68 for restaurant meals for a person who was
receiving a restaurant meal allowance on June 1, 1990, and who
eats two or more meals in a restaurant daily. The allowance
must continue until the person has not received Minnesota
supplemental aid for one full calendar month or until the
person's living arrangement changes and the person no longer
meets the criteria for the restaurant meal allowance, whichever
occurs first.
(e) A fee of ten percent of the recipient's gross income or
$25, whichever is less, is allowed for representative payee
services provided by an agency that meets the requirements under
SSI regulations to charge a fee for representative payee
services. This special need is available to all recipients of
Minnesota supplemental aid regardless of their living
arrangement.
Sec. 66. Minnesota Statutes 1998, section 256E.03,
subdivision 2, is amended to read:
Subd. 2. (a) "Community social services" means services
provided or arranged for by county boards to fulfill the
responsibilities prescribed in section 256E.08, subdivision 1,
to the following groups of persons:
(1) families with children under age 18, who are
experiencing child dependency, neglect or abuse, and also
pregnant adolescents, adolescent parents under the age of 18 and
their children, and other adolescents;
(2) persons, including adolescents, who are under the
guardianship of the commissioner of human services as dependent
and neglected wards;
(3) adults who are in need of protection and vulnerable as
defined in section 626.5572;
(4) persons age 60 and over who are experiencing difficulty
living independently and are unable to provide for their own
needs;
(5) emotionally disturbed children and adolescents,
chronically and acutely mentally ill persons who are unable to
provide for their own needs or to independently engage in
ordinary community activities;
(6) persons with mental retardation as defined in section
252A.02, subdivision 2, or with related conditions as defined in
section 252.27, subdivision 1a, who are unable to provide for
their own needs or to independently engage in ordinary community
activities;
(7) drug dependent and intoxicated persons, including
adolescents, as defined in section 254A.02, subdivisions 5 and
7, and persons, including adolescents, at risk of harm to self
or others due to the ingestion of alcohol or other drugs;
(8) parents whose income is at or below 70 percent of the
state median income and who are in need of child care services
in order to secure or retain employment or to obtain the
training or education necessary to secure employment;
(9) children and adolescents involved in or at risk of
involvement with criminal activity; and
(10) other groups of persons who, in the judgment of the
county board, are in need of social services.
(b) Except as provided in section 256E.08, subdivision 5,
community social services do not include public assistance
programs known as aid to families with dependent children, the
Minnesota family investment program-statewide program, Minnesota
supplemental aid, medical assistance, general assistance,
general assistance medical care, or community health services
authorized by sections 145A.09 to 145A.13.
Sec. 67. Minnesota Statutes 1998, section 256E.06,
subdivision 1, is amended to read:
Subdivision 1. [FORMULA.] The commissioner of human
services shall distribute community social service aids to each
county board in an amount determined according to the following
formula:
In calendar year 1982 and thereafter:
(a) One-third shall be distributed on the basis of the
average unduplicated number of persons who receive AFDC,
Minnesota family investment program-statewide program
assistance, general assistance, and medical assistance per month
in the calendar year two years prior to the year for which funds
are being distributed as reported in the average monthly
caseload reports required under sections 256.01, 256B.04 and
256D.04, and certified by the commissioner of human services;
and
(b) One-third shall be distributed on the basis of the
number of persons residing in the county as determined by the
most recent data of the state demographer;
(c) One-third shall be distributed on the basis of the
number of persons residing in the county who are 65 years old or
older as determined by the most recent data of the state
demographer.
Sec. 68. Minnesota Statutes 1998, section 256E.06,
subdivision 3, is amended to read:
Subd. 3. [PAYMENTS TO COUNTIES.] The commissioner of human
services shall make payments for community social services to
each county in four installments per year. The commissioner of
human services may certify the payments for the first three
months of a calendar year based on estimates of the unduplicated
number of persons receiving AFDC, Minnesota family investment
program-statewide program, general assistance and medical
assistance for the prior year. The following three payments
shall be adjusted to reflect the actual unduplicated number of
persons who received AFDC, Minnesota family investment
program-statewide program, general assistance and medical
assistance as required by subdivision 1. The commissioner shall
ensure that the pertinent payment of the allotment for that
quarter is made to each county on the first working day after
the end of each quarter of the calendar year, except for the
last quarter of the calendar year. The commissioner shall
ensure that each county receives its payment of the allotment
for that quarter no later than the last working day of that
quarter. This scheduling of payments does not require
compliance with subdivision 10.
Sec. 69. Minnesota Statutes 1998, section 256E.07,
subdivision 1, is amended to read:
Subdivision 1. [FORMULA.] In federal fiscal year 1985 and
subsequent years, money for social services that is received
from the federal government to reimburse counties for social
service expenditures according to title XX of the Social
Security Act shall be allocated to each county according to the
following formula:
(a) Two-thirds shall be allocated on the basis of the
annual average number of unduplicated active monthly caseloads
in each county in the following programs: aid to families with
dependent children, Minnesota family investment
program-statewide program, medical assistance, general
assistance, supplementary security income, and Minnesota
supplemental aid.
(b) One-third shall be allocated on the basis of the number
of persons residing in the county as determined by the most
recent estimate of the state demographer.
(c) The commissioner shall allocate to the counties
according to this section the total money received from the
federal government for social services according to title XX of
the Social Security Act, except that portion of the state's
allocation which the legislature authorizes for administrative
purposes and for migrant day care.
Sec. 70. Minnesota Statutes 1998, section 256E.08,
subdivision 3, is amended to read:
Subd. 3. [ADMINISTRATION OF INCOME MAINTENANCE PROGRAMS.]
The county board may designate itself, a human services board,
or a local social services agency to perform the functions of
local social services agencies as prescribed in chapter 393 and
assigned to county agencies in other law which pertains to the
administration of income maintenance programs known as aid to
families with dependent children, Minnesota family investment
program-statewide program, general assistance, Minnesota
supplemental aid, medical assistance, general assistance medical
care, and emergency assistance.
Sec. 71. Minnesota Statutes 1998, section 256F.05,
subdivision 3, is amended to read:
Subd. 3. [GRANT FORMULA.] (a) The amount of money
allocated to counties under subdivision 2 shall first be
allocated in amounts equal to each county's guaranteed floor
according to paragraph (b), and second, any remaining available
funds allocated as follows:
(1) 50 percent of the funds shall be allocated based on the
population of the county under age 19 years as compared to the
state as a whole as determined by the most recent data from the
state demographer's office;
(2) 20 percent of funds shall be allocated based on the
county's percentage share of the unduplicated number of families
who received family preservation services under section 256F.03,
subdivision 5, paragraphs (a), (b), (c), and (e), in the most
recent calendar year available as determined by the
commissioner;
(3) ten percent of the funds shall be allocated based on
the county's percentage share of the unduplicated number of
children in substitute care in the most recent calendar year
available as determined by the commissioner;
(4) ten percent of the funds shall be allocated based on
the county's percentage share of the number of determined
maltreatment reports in the most recent calendar year available
as determined by the commissioner;
(5) five percent of the funds shall be allocated based on
the county's percentage share of the number of American Indian
children under age 18 residing in the county in the most recent
calendar year as determined by the commissioner; and
(6) five percent of the funds shall be allocated based on
the county's percentage share of the number of children of color
receiving children's case management services as defined by the
commissioner based on the most recent data as determined by the
commissioner.
(b) Each county's grant guaranteed floor shall be
calculated as follows:
(1) 90 percent of the county's allocation received in the
preceding calendar year or $25,000, whichever is greater; and
(2) when the amounts of funds available for allocation is
less than the amount available in the previous year, each
county's previous year allocation shall be reduced in proportion
to the reduction in the statewide funding, for the purpose of
establishing the guaranteed floor.
(c) The commissioner shall regularly review the use of
family preservation fund allocations by county. The
commissioner may reallocate unexpended or unencumbered money at
any time among those counties that have expended or are
projected to expend their full allocation.
(d) For the period of July 1, 1997, to December 31, 1998,
only, each county shall receive an 18-month allocation. For the
purposes of determining the guaranteed floor for this 18-month
allocation, the allocation received in the preceding calendar
year shall be determined by the commissioner based on the
funding previously distributed separately under sections
256.8711 and 256F.04.
Sec. 72. Minnesota Statutes 1998, section 256F.05,
subdivision 8, is amended to read:
Subd. 8. [USES OF FAMILY PRESERVATION FUND GRANTS.] (a) A
county which has not demonstrated that year that its family
preservation core services are developed as provided in
subdivision 1a, must use its family preservation fund grant
exclusively for family preservation services defined in section
256F.03, subdivision 5, paragraphs (a), (b), (c), and (e).
(b) A county which has demonstrated that year that its
family preservation core services are developed becomes eligible
either to continue using its family preservation fund grant as
provided in paragraph (a), or to exercise the expanded service
option under paragraph (c).
(c) The expanded service option permits an eligible county
to use its family preservation fund grant for child welfare
preventive services. For purposes of this section, child
welfare preventive services are those services directed toward a
specific child or family that further the goals of section
256F.01 and include assessments, family preservation services,
service coordination, community-based treatment, crisis nursery
services when the parents retain custody and there is no
voluntary placement agreement with a child-placing agency,
respite care except when it is provided under a medical
assistance waiver, home-based services, and other related
services. For purposes of this section, child welfare
preventive services shall not include shelter care or other
placement services under the authority of the court or public
agency to address an emergency. To exercise this option, an
eligible county must notify the commissioner in writing of its
intention to do so no later than 30 days into the quarter during
which it intends to begin or in its county plan, as provided in
section 256F.04, subdivision 2. Effective with the first day of
that quarter, the county must maintain its base level of
expenditures for child welfare preventive services and use the
family preservation fund to expand them. The base level of
expenditures for a county shall be that established under
section 256F.10, subdivision 7. For counties which have no such
base established, a comparable base shall be established with
the base year being the calendar year ending at least two
calendar quarters before the first calendar quarter in which the
county exercises its expanded service option. The commissioner
shall, at the request of the counties, reduce, suspend, or
eliminate either or both of a county's obligations to continue
the base level of expenditures and to expand child welfare
preventive services under extraordinary circumstances.
(d) Notwithstanding paragraph (a), a county that is
participating in the child protection assessments or
investigations community collaboration pilot program under
section 626.5560 626.556, or in the concurrent permanency
planning pilot program under section 257.0711, may use its
family preservation fund grant for those programs.
Sec. 73. Minnesota Statutes 1998, section 256F.10,
subdivision 6, is amended to read:
Subd. 6. [DISTRIBUTION OF NEW FEDERAL REVENUE.] (a) Except
for portion set aside in paragraph (b), the federal funds earned
under this section and section 256B.094 by counties shall be
paid to each county based on its earnings, and must be used by
each county to expand preventive child welfare services.
If a county chooses to be a provider of child welfare targeted
case management and if that county also joins a local children's
mental health collaborative as authorized by the 1993
legislature, then the federal reimbursement received by the
county for providing child welfare targeted case management
services to children served by the local collaborative shall be
transferred by the county to the integrated fund. The federal
reimbursement transferred to the integrated fund by the county
must not be used for residential care other than respite care
described under subdivision 7, paragraph (d).
(b) The commissioner shall set aside a portion of the
federal funds earned under this section to repay the special
revenue maximization account under section 256.01, subdivision
2, clause (15). The repayment is limited to:
(1) the costs of developing and implementing this section
and sections 256.8711 and 256B.094 and 256J.48;
(2) programming the information systems; and
(3) the lost federal revenue for the central office claim
directly caused by the implementation of these sections.
Any unexpended funds from the set aside under this
paragraph shall be distributed to counties according to
paragraph (a).
Sec. 74. Minnesota Statutes 1998, section 256F.13,
subdivision 3, is amended to read:
Subd. 3. [WAIVER OF RULE REQUIREMENTS.] (a) [REQUESTING
WAIVERS OF STATE OR FEDERAL RULES.] Local family services
collaboratives, including collaboratives in Becker, Cass, and
Ramsey counties, shall be encouraged to seek waivers of state or
federal rules, as necessary to carry out the purposes of this
section. For purposes of this section, "family services
collaborative" has the meaning given it in section 121.8355,
subdivision 1a.
(b) [WAIVER OF STATE RULES.] In order to receive a waiver
of the requirements of any state rule, the collaborative shall
submit a request for a variance to the appropriate
commissioner. The request shall contain assurances that the
waiver will not affect client entitlements to services, will not
abridge any rights guaranteed to the client by state or federal
law, and will not jeopardize the health or safety of the
client. The commissioner shall grant or deny all waiver
requests within 30 days of receiving those requests, by notice
to the collaborative and published notice in the State Register.
(c) [WAIVER OF FEDERAL RULES.] A local collaborative
seeking a waiver from a federal rule shall submit a request, in
writing, to the appropriate commissioner who shall submit the
waiver request to the relevant policy committees of the
legislature. If the legislative committees approve the request,
they shall direct the appropriate state agency to make a
reasonable effort to negotiate a waiver of the federal rule. If
the legislative committees deny the request for a waiver, they
shall jointly notify the local collaborative of the reason for
denying the waiver. If a waiver request is approved for
submission to federal authorities, the commissioner shall submit
all necessary materials to the appropriate federal authorities.
The commissioner shall notify the collaborative and the
legislative committees of the outcome of the federal waiver
request. In every instance in which a federal waiver is
granted, the commissioner shall publish notice of receipt of the
waiver in the State Register.
Sec. 75. Minnesota Statutes 1998, section 256G.01,
subdivision 4, is amended to read:
Subd. 4. [ADDITIONAL COVERAGE.] The provisions in sections
256G.02, subdivision 4, paragraphs (a) to (d); 256G.02,
subdivisions 5 to 8; 256G.03; 256G.04; 256G.05; and 256G.07,
subdivisions 1 to 3, apply to the following programs: the aid
to families with dependent children program formerly codified in
sections 256.72 to 256.87, Minnesota family investment
program-statewide program; medical assistance; general
assistance; the family general assistance program formerly
codified in sections 256D.01 to 256D.23; general assistance
medical care; and Minnesota supplemental aid.
Sec. 76. Minnesota Statutes 1998, section 256G.03,
subdivision 2, is amended to read:
Subd. 2. [NO DURATIONAL TEST.] Except as otherwise
provided in sections 256.73, subdivisions 1 and 1b 256J.75;
256B.056, subdivision 1; 256D.02, subdivision 12a, and 256J.12
for purposes of this chapter, no waiting period is required
before securing county or state residence. A person cannot,
however, gain residence while physically present in an excluded
time facility unless otherwise specified in this chapter or in a
federal regulation controlling a federally funded human service
program. Interstate migrants who enter a shelter for battered
women directly from another state can gain residency while in
the facility provided the person can provide documentation that
the person is a victim of domestic abuse as defined in section
256J.49, subdivision 2, and the county determines that the
placement is appropriate; and the commissioner of human services
is authorized to make per diem payments under section 256D.05,
subdivision 3, on behalf of such individuals.
Sec. 77. Minnesota Statutes 1998, section 256J.01,
subdivision 1, is amended to read:
Subdivision 1. [IMPLEMENTATION OF MINNESOTA FAMILY
INVESTMENT PROGRAM-STATEWIDE (MFIP-S) PROGRAM (MFIP).] This
chapter and chapter 256K may be cited as the Minnesota family
investment program-statewide (MFIP-S) program (MFIP). MFIP-S
MFIP is the statewide implementation of components of the
Minnesota family investment plan (MFIP) authorized under and
formerly codified in section 256.031 and Minnesota family
investment plan-Ramsey county (MFIP-R) formerly codified in
section 256.047.
Sec. 78. Minnesota Statutes 1998, section 256J.11,
subdivision 1, is amended to read:
Subdivision 1. [GENERAL CITIZENSHIP REQUIREMENTS.] (a) To
be eligible for AFDC or MFIP-S MFIP, whichever is in effect, a
member of the assistance unit must be a citizen of the United
States, a qualified noncitizen as defined in section 256J.08, or
a noncitizen who is otherwise residing lawfully in the United
States.
(b) A qualified noncitizen who entered the United States on
or after August 22, 1996, is eligible for MFIP-S MFIP. However,
TANF dollars cannot be used to fund the MFIP-S MFIP benefits for
an individual under this paragraph for a period of five years
after the date of entry unless the qualified noncitizen meets
one of the following criteria:
(1) was admitted to the United States as a refugee under
United States Code, title 8, section 1157;
(2) was granted asylum under United States Code, title 8,
section 1158;
(3) was granted withholding of deportation under the United
States Code, title 8, section 1253(h);
(4) is a veteran of the United States Armed Forces with an
honorable discharge for a reason other than noncitizen status,
or is a spouse or unmarried minor dependent child of the same;
or
(5) is an individual on active duty in the United States
Armed Forces, other than for training, or is a spouse or
unmarried minor dependent child of the same.
(c) A person who is not a qualified noncitizen but who is
otherwise residing lawfully in the United States is eligible for
MFIP-S MFIP. However, TANF dollars cannot be used to fund the
MFIP-S MFIP benefits for an individual under this paragraph.
(d) For purposes of this subdivision, a nonimmigrant in one
or more of the classes listed in United States Code, title 8,
section 1101(a)(15), or an undocumented immigrant who resides in
the United States without the approval or acquiescence of the
Immigration and Naturalization Service, is not eligible for
MFIP-S.
Sec. 79. Minnesota Statutes 1998, section 256J.11,
subdivision 2, is amended to read:
Subd. 2. [NONCITIZENS; FOOD PORTION.] (a) For the period
September 1, 1997, to October 31, 1997, noncitizens who do not
meet one of the exemptions in section 412 of the Personal
Responsibility and Work Opportunity Reconciliation Act of 1996,
but were residing in this state as of July 1, 1997, are eligible
for the 6/10 of the average value of food stamps for the same
family size and composition until MFIP-S is operative in the
noncitizen's county of financial responsibility and thereafter,
the 6/10 of the food portion of MFIP-S. However, federal food
stamp dollars cannot be used to fund the food portion of MFIP-S
benefits for an individual under this subdivision.
(b) (a) For the period November 1, 1997, to June 30, 1999,
noncitizens who do not meet one of the exemptions in section 412
of the Personal Responsibility and Work Opportunity
Reconciliation Act of 1996, and are receiving cash assistance
under the AFDC, family general assistance, MFIP or MFIP-S
programs are eligible for the average value of food stamps for
the same family size and composition until MFIP-S MFIP is
operative in the noncitizen's county of financial responsibility
and thereafter, the food portion of MFIP-S MFIP. However,
federal food stamp dollars cannot be used to fund the food
portion of MFIP-S MFIP benefits for an individual under this
subdivision. The assistance provided under this subdivision,
which is designated as a supplement to replace lost benefits
under the federal food stamp program, must be disregarded as
income in all programs that do not count food stamps as income
where the commissioner has the authority to make the income
disregard determination for the program.
(c) (b) The commissioner shall submit a state plan to the
secretary of agriculture to allow the commissioner to purchase
federal Food Stamp Program benefits in an amount equal to the
MFIP-S MFIP food portion for each legal noncitizen receiving
MFIP-S MFIP assistance who is ineligible to participate in the
federal Food Stamp Program solely due to the provisions of
section 402 or 403 of Public Law Number 104-193, as authorized
by Title VII of the 1997 Emergency Supplemental Appropriations
Act, Public Law Number 105-18. The commissioner shall enter
into a contract as necessary with the secretary to use the
existing federal Food Stamp Program benefits delivery system for
the purposes of administering the food portion of MFIP-S MFIP
under this subdivision.
Sec. 80. Minnesota Statutes 1998, section 256J.12,
subdivision 1, is amended to read:
Subdivision 1. [SIMPLE RESIDENCY.] To be eligible for AFDC
or MFIP-S MFIP, whichever is in effect, an assistance unit must
have established residency in this state which means the
assistance unit is present in the state and intends to remain
here. A person who lives in this state and who entered this
state with a job commitment or to seek employment in this state,
whether or not that person is currently employed, meets the
criteria in this subdivision.
Sec. 81. Minnesota Statutes 1998, section 256J.21,
subdivision 3, is amended to read:
Subd. 3. [INITIAL INCOME TEST.] The county agency shall
determine initial eligibility by considering all earned and
unearned income that is not excluded under subdivision 2. To be
eligible for MFIP-S MFIP, the assistance unit's countable income
minus the disregards in paragraphs (a) and (b) must be below the
transitional standard of assistance according to section 256J.24
for that size assistance unit.
(a) The initial eligibility determination must disregard
the following items:
(1) the employment disregard is 18 percent of the gross
earned income whether or not the member is working full time or
part time;
(2) dependent care costs must be deducted from gross earned
income for the actual amount paid for dependent care up to a
maximum of $200 per month for each child less than two years of
age, and $175 per month for each child two years of age and
older under this chapter and chapter 119B;
(3) all payments made according to a court order for
spousal support or the support of children not living in the
assistance unit's household shall be disregarded from the income
of the person with the legal obligation to pay support, provided
that, if there has been a change in the financial circumstances
of the person with the legal obligation to pay support since the
support order was entered, the person with the legal obligation
to pay support has petitioned for a modification of the support
order; and
(4) an allocation for the unmet need of an ineligible
spouse or an ineligible child under the age of 21 for whom the
caregiver is financially responsible and who lives with the
caregiver according to section 256J.36.
(b) Notwithstanding paragraph (a), when determining initial
eligibility for applicant units when at least one member has
received AFDC, family general assistance, MFIP, MFIP-R, or work
first, or MFIP-S in this state within four months of the most
recent application for MFIP-S MFIP, the employment disregard for
all unit members is 36 percent of the gross earned income.
After initial eligibility is established, the assistance
payment calculation is based on the monthly income test.
Sec. 82. Minnesota Statutes 1998, section 256J.26,
subdivision 1, is amended to read:
Subdivision 1. [PERSON CONVICTED OF DRUG OFFENSES.] (a)
Applicants or participants who have been convicted of a drug
offense after July 1, 1997, may, if otherwise eligible, receive
AFDC or MFIP-S benefits subject to the following conditions:
(1) Benefits for the entire assistance unit must be paid in
vendor form for shelter and utilities during any time the
applicant is part of the assistance unit.
(2) The convicted applicant or participant shall be subject
to random drug testing as a condition of continued eligibility
and following any positive test for an illegal controlled
substance is subject to the following sanctions:
(i) for failing a drug test the first time, the
participant's grant shall be reduced by ten percent of the
MFIP-S MFIP transitional standard, the shared household
standard, or the interstate transitional standard, whichever is
applicable prior to making vendor payments for shelter and
utility costs; or
(ii) for failing a drug test two or more times, the
residual amount of the participant's grant after making vendor
payments for shelter and utility costs, if any, must be reduced
by an amount equal to 30 percent of the MFIP-S MFIP transitional
standard, the shared household standard, or the interstate
transitional standard, whichever is applicable.
(b) Applicants or participants who have been convicted of a
drug offense after July 1, 1997, may, if otherwise eligible,
receive food stamps if the convicted applicant or participant is
subject to random drug testing as a condition of continued
eligibility. Following a positive test for an illegal
controlled substance, the applicant is subject to the following
sanctions:
(1) for failing a drug test the first time, food stamps
shall be reduced by ten percent of the applicable food stamp
allotment; and
(2) for failing a drug test two or more times, food stamps
shall be reduced by an amount equal to 30 percent of the
applicable food stamp allotment.
(c) For the purposes of this subdivision, "drug offense"
means a conviction that occurred after July 1, 1997, of sections
152.021 to 152.025, 152.0261, or 152.096. Drug offense also
means a conviction in another jurisdiction of the possession,
use, or distribution of a controlled substance, or conspiracy to
commit any of these offenses, if the offense occurred after July
1, 1997, and the conviction is a felony offense in that
jurisdiction, or in the case of New Jersey, a high misdemeanor.
Sec. 83. Minnesota Statutes 1998, section 256J.26,
subdivision 2, is amended to read:
Subd. 2. [PAROLE VIOLATORS.] An individual violating a
condition of probation or parole or supervised release imposed
under federal law or the law of any state is disqualified from
receiving AFDC or MFIP-S MFIP.
Sec. 84. Minnesota Statutes 1998, section 256J.26,
subdivision 3, is amended to read:
Subd. 3. [FLEEING FELONS.] An individual who is fleeing to
avoid prosecution, or custody, or confinement after conviction
for a crime that is a felony under the laws of the jurisdiction
from which the individual flees, or in the case of New Jersey,
is a high misdemeanor, is disqualified from receiving AFDC or
MFIP-S MFIP.
Sec. 85. Minnesota Statutes 1998, section 256J.26,
subdivision 4, is amended to read:
Subd. 4. [DENIAL OF ASSISTANCE FOR TEN YEARS TO A PERSON
FOUND TO HAVE FRAUDULENTLY MISREPRESENTED RESIDENCY.] An
individual who is convicted in federal or state court of having
made a fraudulent statement or representation with respect to
the place of residence of the individual in order to receive
assistance simultaneously from two or more states is
disqualified from receiving AFDC or MFIP-S MFIP for ten years
beginning on the date of the conviction.
Sec. 86. Minnesota Statutes 1998, section 256J.42,
subdivision 1, is amended to read:
Subdivision 1. [TIME LIMIT.] (a) Except for the exemptions
in this section and in section 256J.11, subdivision 2, an
assistance unit in which any adult caregiver has received 60
months of cash assistance funded in whole or in part by the TANF
block grant in this or any other state or United States
territory, MFIP-S MFIP, the AFDC program formerly codified in
sections 256.72 to 256.87, or the family general assistance
program formerly codified in sections 256D.01 to 256D.23, funded
in whole or in part by state appropriations, is ineligible to
receive MFIP-S MFIP. Any cash assistance funded with TANF
dollars in this or any other state or United States territory,
or MFIP-S MFIP assistance funded in whole or in part by state
appropriations, that was received by the unit on or after the
date TANF was implemented, including any assistance received in
states or United States territories of prior residence, counts
toward the 60-month limitation. The 60-month limit applies to a
minor who is the head of a household or who is married to the
head of a household except under subdivision 5. The 60-month
time period does not need to be consecutive months for this
provision to apply.
(b) Months before July 1998 in which individuals receive
assistance as part of an MFIP, MFIP-R, or MFIP or MFIP-R
comparison group family under formerly codified in sections
256.031 to 256.0361 or sections 256.047 to 256.048 are not
included in the 60-month time limit.
Sec. 87. Minnesota Statutes 1998, section 256J.42,
subdivision 5, is amended to read:
Subd. 5. [EXEMPTION FOR CERTAIN FAMILIES.] (a) Any cash
assistance received by an assistance unit does not count toward
the 60-month limit on assistance during a month in which the
caregiver is in the category in section 256J.56, clause (1). The
exemption applies for the period of time the caregiver belongs
to one of the categories specified in this subdivision.
(b) From July 1, 1997, until the date MFIP-S MFIP is
operative in the caregiver's county of financial responsibility,
any cash assistance received by a caregiver who is complying
with sections Minnesota Statutes 1996, section 256.73,
subdivision 5a, and Minnesota Statutes 1998, section 256.736, if
applicable, does not count toward the 60-month limit on
assistance. Thereafter, any cash assistance received by a minor
caregiver who is complying with the requirements of sections
256J.14 and 256J.54, if applicable, does not count towards the
60-month limit on assistance.
(c) Any diversionary assistance or emergency assistance
received does not count toward the 60-month limit.
(d) Any cash assistance received by an 18- or 19-year-old
caregiver who is complying with the requirements of section
256J.54 does not count toward the 60-month limit.
Sec. 88. Minnesota Statutes 1998, section 256J.43,
subdivision 1, is amended to read:
Subdivision 1. [PAYMENT.] (a) Effective July 1, 1997, the
amount of assistance paid to an eligible unit in which all
members have resided in this state for fewer than 12 consecutive
calendar months immediately preceding the date of application
shall be the lesser of either the interstate transitional
standard that would have been received by the assistance unit
from the state of immediate prior residence, or the amount
calculated in accordance with AFDC or MFIP-S MFIP standards.
The lesser payment must continue until the assistance unit meets
the 12-month requirement. An assistance unit that has not
resided in Minnesota for 12 months from the date of application
is not exempt from the interstate payment provisions solely
because a child is born in Minnesota to a member of the
assistance unit. Payment must be calculated by applying this
state's budgeting policies, and the unit's net income must be
deducted from the payment standard in the other state or in this
state, whichever is lower. Payment shall be made in vendor form
for shelter and utilities, up to the limit of the grant amount,
and residual amounts, if any, shall be paid directly to the
assistance unit.
(b) During the first 12 months an assistance unit resides
in this state, the number of months that a unit is eligible to
receive AFDC or MFIP-S MFIP benefits is limited to the number of
months the assistance unit would have been eligible to receive
similar benefits in the state of immediate prior residence.
(c) This policy applies whether or not the assistance unit
received similar benefits while residing in the state of
previous residence.
(d) When an assistance unit moves to this state from
another state where the assistance unit has exhausted that
state's time limit for receiving benefits under that state's
TANF program, the unit will not be eligible to receive any AFDC
or MFIP-S MFIP benefits in this state for 12 months from the
date the assistance unit moves here.
(e) For the purposes of this section, "state of immediate
prior residence" means:
(1) the state in which the applicant declares the applicant
spent the most time in the 30 days prior to moving to this
state; or
(2) the state in which an applicant who is a migrant worker
maintains a home.
(f) The commissioner shall annually verify and update all
other states' payment standards as they are to be in effect in
July of each year.
(g) Applicants must provide verification of their state of
immediate prior residence, in the form of tax statements, a
driver's license, automobile registration, rent receipts, or
other forms of verification approved by the commissioner.
(h) Migrant workers, as defined in section 256J.08, and
their immediate families are exempt from this section, provided
the migrant worker provides verification that the migrant family
worked in this state within the last 12 months and earned at
least $1,000 in gross wages during the time the migrant worker
worked in this state.
Sec. 89. Minnesota Statutes 1998, section 256J.50,
subdivision 3a, is amended to read:
Subd. 3a. [TRANSITIONAL RULE; STRIDE, ACCESS.] (a) A
county agency that is not a participant in the MFIP or MFIP-R
field trials under formerly codified in sections 256.031 to
256.0361 shall not enroll a recipient into project STRIDE or
ACCESS after the date that MFIP-S MFIP is implemented in the
county.
(b) A caregiver who:
(i) was enrolled in project STRIDE or ACCESS continuously
since March 1, 1997;
(ii) is not a part of an MFIP or MFIP-R comparison group;
and
(iii) who is making satisfactory progress toward the
objectives specified in the caregiver's employment plan, may,
with the approval of the job counselor, continue with the
existing employment plan for up to two years after the caregiver
is enrolled in MFIP-S MFIP. For purposes of the federal
participation standards, the activities in the caregiver's
employment plan are work activities, as that term is defined in
section 256J.49, subdivision 13.
(c) Notwithstanding contrary provisions of section 256.736,
the employability plan of a caregiver who is enrolled in project
STRIDE or ACCESS on or after July 1, 1997, must meet the
requirements of section 256J.53.
Sec. 90. Minnesota Statutes 1998, section 256J.62,
subdivision 3, is amended to read:
Subd. 3. [ALLOCATION OF BALANCE OF FUNDS.] If there remain
funds to allocate after establishing each county's guaranteed
floor under the provisions in subdivision 2, the balance
of funds shall be allocated as follows:
(1) for state fiscal year 1998, the remaining funds shall
be allocated based on the county's average number of AFDC and
family general assistance cases as compared to the statewide
total number of cases. The average number of cases shall be
based on counts of AFDC and family general assistance cases as
of March 31, June 30, September 30, and December 31 of calendar
year 1996;
(2) for state fiscal year 1999, the remaining funds shall
be allocated based on the county's average number of AFDC,
family general assistance, MFIP-R, MFIP, and MFIP-S cases as
compared to the statewide total number of cases. The average
number of cases shall be based on counts of AFDC, family general
assistance, MFIP-R, MFIP, and MFIP-S cases as of March 31, June
30, September 30, and December 31 of calendar year 1997; and
(3) for all subsequent state fiscal years, the remaining
funds shall be allocated based on the county's average number of
MFIP-S MFIP cases as compared to the statewide total number of
cases. The average number of cases must be based on counts of
MFIP-S MFIP cases as of March 31, June 30, September 30, and
December 31 of the previous calendar year.
Sec. 91. Minnesota Statutes 1998, section 256J.62,
subdivision 6, is amended to read:
Subd. 6. [BILINGUAL EMPLOYMENT AND TRAINING SERVICES TO
REFUGEES.] Funds appropriated to cover the costs of bilingual
employment and training services to refugees shall be allocated
to county agencies as follows:
(1) for state fiscal year 1998, the allocation shall be
based on the county's proportion of the total statewide number
of AFDC refugee cases in the previous fiscal year. Counties
with less than one percent of the statewide number of AFDC,
MFIP-R, or MFIP refugee cases shall not receive an allocation of
bilingual employment and training services funds; and
(2) for each subsequent fiscal year, the allocation shall
be based on the county's proportion of the total statewide
number of MFIP-S MFIP refugee cases in the previous fiscal year.
Counties with less than one percent of the statewide number of
MFIP-S MFIP refugee cases shall not receive an allocation of
bilingual employment and training services funds.
Sec. 92. Minnesota Statutes 1998, section 256J.62,
subdivision 7, is amended to read:
Subd. 7. [WORK LITERACY LANGUAGE PROGRAMS.] Funds
appropriated to cover the costs of work literacy language
programs to non-English-speaking recipients shall be allocated
to county agencies as follows:
(1) for state fiscal year 1998, the allocation shall be
based on the county's proportion of the total statewide number
of AFDC or MFIP cases in the previous fiscal year where the lack
of English is a barrier to employment. Counties with less than
two percent of the statewide number of AFDC or MFIP cases where
the lack of English is a barrier to employment shall not receive
an allocation of the work literacy language program funds; and
(2) for each subsequent fiscal year, the allocation shall
be based on the county's proportion of the total statewide
number of MFIP-S MFIP cases in the previous fiscal year where
the lack of English is a barrier to employment. Counties with
less than two percent of the statewide number of MFIP-S MFIP
cases where the lack of English is a barrier to employment shall
not receive an allocation of the work literacy language program
funds.
Sec. 93. Minnesota Statutes 1998, section 256J.76,
subdivision 1, is amended to read:
Subdivision 1. [ADMINISTRATIVE FUNCTIONS.] Beginning July
1, 1997, counties will receive federal funds from the TANF block
grant for use in supporting eligibility, fraud control, and
other related administrative functions. The federal funds
available for distribution, as determined by the commissioner,
must be an amount equal to federal administrative aid
distributed for fiscal year 1996 under titles IV-A and IV-F of
the Social Security Act in effect prior to October 1, 1996.
This amount must include the amount paid for local
collaboratives under sections 245.4932 and 256F.13, but must not
include administrative aid associated with child care under
section 119B.05, with emergency assistance intensive family
preservation services under section 256.8711 256F.05, with
administrative activities as part of the employment and training
services under section 256.736 this chapter or chapter 256K, or
with fraud prevention investigation activities under section
256.983.
Sec. 94. Minnesota Statutes 1998, section 256K.01,
subdivision 2, is amended to read:
Subd. 2. [DEFINITIONS.] As used in sections 256K.01 to
256K.09, the following words have the meanings given them.
(a) "Applicant" means an individual who has submitted a
request for assistance and has never received an AFDC grant as
formerly codified in sections 256.72 to 256.87, MFIP-S an MFIP
grant or a family general assistance grant as formerly codified
in sections 256D.01 to 256D.23 through the MAXIS computer system
as a caregiver, or an applicant whose application under the
former AFDC program codified in sections 256.72 to
256.87, MFIP-S MFIP, or the former family general assistance
application program codified in sections 256D.01 to 256D.23 was
denied or benefits were terminated due to noncompliance with
work first program requirements.
(b) "Application date" means the date any Minnesota county
agency receives a signed and dated combined application form
Part I.
(c) "CAF" means a combined application form on which people
apply for multiple assistance programs, including: cash
assistance, refugee cash assistance, Minnesota supplemental aid,
food stamps, medical assistance, general assistance medical
care, emergency assistance, emergency medical assistance, and
emergency general assistance medical care.
(d) "Caregiver" 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, MFIP-S, or family general
assistance an MFIP grant. In a two-parent family, both parents
are caregivers.
(e) "Child support" means a voluntary or court-ordered
payment by absent parents in an assistance unit.
(f) "Commissioner" means the commissioner of human services.
(g) "Department" means the department of human services.
(h) "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.
(i) "EDP status report form" means a program form on which
deferred participants indicate what has been achieved in the
participant's employability development plan and the types of
problems encountered.
(j) "Employment advisor" means a program staff member 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.
(k) "Financial specialist" means a program staff member 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.
(l) "Job network" means individuals that a person may
contact to learn more about particular companies, inquire about
job leads, or discuss occupational interests and expertise.
(m) "Job search allowance" means the amount of financial
assistance needed to support job search.
(n) "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 job search process and other activities.
(o) "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.
(p) "Participant" means a recipient who is required to
participate in the work first program.
(q) "Program" means the work first program.
(r) "Provider" means an employment and training agency
certified by the commissioner of economic security under section
268.871, subdivision 1.
(s) "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.
(t) "Self-sufficiency agreement" means the agreement
between the county 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 county to
enable the individual to meet the purpose of either the job
search plan or employability development plan.
(u) "Subsidized job" means a job that is partly reimbursed
by the provider for cost of wages for participants in the
program.
Sec. 95. Minnesota Statutes 1998, section 256K.01,
subdivision 3, is amended to read:
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, MFIP-S or family general assistance MFIP 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.
Sec. 96. Minnesota Statutes 1998, section 256K.01,
subdivision 8, is amended to read:
Subd. 8. [DUTIES OF PARTICIPANT.] To be eligible for an
AFDC, MFIP-S or family general assistance MFIP benefit, a
participant shall cooperate with the county agency, the
provider, and the participant's employer in all aspects of the
program.
Sec. 97. Minnesota Statutes 1998, section 256K.015, is
amended to read:
256K.015 [ELIGIBILITY FOR WORK FIRST.]
To be eligible for work first, an applicant must meet the
eligibility requirements of AFDC or MFIP-S, whichever is in
effect in the county, MFIP, to the extent that those
requirements are not inconsistent with this chapter.
Sec. 98. Minnesota Statutes 1998, section 256K.02, is
amended to read:
256K.02 [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, MFIP-S, or family general
assistance program MFIP 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
recipient, unless it is used as a wage subsidy under section
256K.04, subdivision 2.
Sec. 99. Minnesota Statutes 1998, section 256K.03,
subdivision 1, is amended to read:
Subdivision 1. [NOTIFICATION OF PROGRAM.] Except for the
provisions in this section, the provisions for the AFDC, MFIP-S,
and family general assistance MFIP application process shall be
followed. Within two days after receipt of a completed combined
application form, the county agency must refer to the provider
the applicant who meets the conditions under section 256K.02,
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.
Sec. 100. Minnesota Statutes 1998, section 256K.03,
subdivision 12, is amended to read:
Subd. 12. [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, MFIP-S or family general assistance
MFIP 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 monthly grant amount which the participant would
otherwise receive, 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 who is deferred under subdivision 8, 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 8, 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 256K.05.
Sec. 101. Minnesota Statutes 1998, section 256K.04,
subdivision 2, is amended to read:
Subd. 2. [JOB SUBSIDY.] The county may use all or part of
the AFDC, MFIP-S or family general assistance MFIP benefit 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. 102. Minnesota Statutes 1998, section 256K.05,
subdivision 2, is amended to read:
Subd. 2. [ASSIGNMENT TO TEMPORARY PUBLIC SERVICE JOBS.]
The provider must assign the participant who (1) 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 (2) does not earn a net income from
self-employment that is equal to at least the AFDC, MFIP-S or
family general assistance MFIP 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 256K.03, subdivision 12.
The participant that is deferred under section 256K.03,
subdivision 8, will be assigned by the provider to a temporary
public service job within seven days after the application.
Sec. 103. Minnesota Statutes 1998, section 256K.06, is
amended to read:
256K.06 [TRANSITIONAL BENEFITS TO SUPPORT WORK; RENT AND
UTILITIES VENDOR PAYMENT.]
Payments for rent and utilities up to the amount of AFDC,
MFIP-S, or family general assistance 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, MFIP-S, or
family general assistance MFIP recipient, unless it is used as a
wage subsidy under section 256K.04, subdivision 2. This
provision shall apply to all applicants including those meeting
the exemption categories under section 256K.03, subdivision 5,
or deferral categories under section 256K.03, subdivision 8. 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 plan.
Sec. 104. Minnesota Statutes 1998, section 256K.07, is
amended to read:
256K.07 [ELIGIBILITY FOR FOOD STAMPS, MEDICAL ASSISTANCE,
AND CHILD CARE.]
The participant shall be treated as an AFDC, MFIP-S, or
family general assistance MFIP recipient, whichever is
applicable, for food stamps, medical assistance, and child care
eligibility purposes. The participant who leaves the program as
a result of increased earnings from employment shall be eligible
for transitional medical assistance and child care without
regard to AFDC, MFIP-S, or family general assistance MFIP
receipt in three of the six months preceding ineligibility.
Sec. 105. Minnesota Statutes 1998, section 256K.08,
subdivision 1, is amended to read:
Subdivision 1. [GOOD CAUSE.] (a) For purposes 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 appropriate child care or
unavailability of transportation needed to attend orientation or
conduct job search, or a nonmedical emergency as defined under
section 256K.05, subdivision 5.
(b) The applicant who is required, but fails, without good
cause, to participate in orientation, complete the job search
plan or employability development plan, and comply with the job
search requirements under section 256K.03, prior to being
eligible for AFDC, MFIP-S, or family general assistance MFIP
shall be denied benefits. The applicant will not be eligible
for benefits in this state for at least six months.
(c) 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.
(d) If the participant who is deferred under section
256K.03, subdivision 8, fails to comply with the activities
described in the employability development plan, the participant
will lose the deferment status, provided that the participant
has received at least two written warnings from the provider.
(e) 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 MFIP-S MFIP 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.
Sec. 106. Minnesota Statutes 1998, section 256L.11,
subdivision 4, is amended to read:
Subd. 4. [DEFINITION OF MEDICAL ASSISTANCE RATE FOR
INPATIENT HOSPITAL SERVICES.] The "medical assistance rate," as
used in this section to apply to rates for providing inpatient
hospital services, means the rates established under sections
256.9685 to 256.9695 for providing inpatient hospital services
to medical assistance recipients who receive aid to families
with dependent children Minnesota family investment program
assistance.
Sec. 107. Minnesota Statutes 1998, section 257.33,
subdivision 2, is amended to read:
Subd. 2. [MINOR PARENTS AND THEIR CHILDREN.] (a) Every
birth to a minor shall be reported by the hospital where the
birth occurs, within three working days after the birth. The
hospital shall make the report to the county social services
agency in the county in which the minor mother resides and shall
notify the minor that the report has been made. The county
social services agency shall contact any minor mother who does
not have a case manager who resides in the county and determine
whether she has a plan for herself and her child. The plan must
consider:
(1) the age of the minor parent;
(2) the involvement of the minor's parents or of other
adults who provide active, ongoing guidance, support, and
supervision;
(3) the involvement of the father of the minor's child,
including steps being taken to establish paternity, if
appropriate;
(4) a decision of the minor to keep and raise her child or
place the child for adoption;
(5) completion of high school or GED;
(6) current economic support of the minor parent and child
and plans for economic self-sufficiency;
(7) parenting skills of the minor parent;
(8) living arrangement of the minor parent and child;
(9) child care and transportation needed for education,
training, or employment;
(10) ongoing health care; and
(11) other services as needed to address personal or family
problems or to facilitate the personal growth and development
and economic self-sufficiency of the minor parent and child.
(b) If the minor parent does not have a plan for herself
and child, the county social services agency shall work with her
to develop a plan and shall provide case management services as
needed to assure the resources and services are available to
meet the plan requirements.
(c) If the minor parent refuses to plan for herself and her
child or fails, without good cause, to follow through on an
agreed upon plan, the county social services agency may file a
petition under section 260.131 seeking an order for protective
supervision under section 260.191, subdivision 1, clause (a), on
the grounds that the minor parent's child is dependent due to
the state of immaturity of the minor parent. A contract with a
minor parent under section 256.736, subdivision
11(a)(4) 256J.54, subdivision 2, is an "agreed upon plan" for
purposes of this section.
Sec. 108. Minnesota Statutes 1998, section 257.3573,
subdivision 2, is amended to read:
Subd. 2. [INAPPROPRIATE EXPENDITURES.] Indian child
welfare grant money must not be used for:
(1) child day care necessary solely because of employment
or training for employment of a parent or other relative with
whom the child is living;
(2) foster care maintenance or difficulty of care payments;
(3) residential facility payments;
(4) adoption assistance payments;
(5) public assistance payments for aid to families with
dependent children, Minnesota family investment
program-statewide program assistance, supplemental aid, medical
assistance, general assistance, general assistance medical care,
or community health services authorized by sections 145A.01 to
145A.14; or
(6) administrative costs for income maintenance staff.
Sec. 109. Minnesota Statutes 1998, section 257.60, is
amended to read:
257.60 [PARTIES.]
The child may be made a party to the action. If the child
is a minor and is made a party, a general guardian or a guardian
ad litem shall be appointed by the court to represent the
child. The child's mother or father may not represent the child
as guardian or otherwise. The biological mother, each man
presumed to be the father under section 257.55, and each man
alleged to be the biological father, shall be made parties or,
if not subject to the jurisdiction of the court, shall be given
notice of the action in a manner prescribed by the court and
shall be given an opportunity to be heard. The public agency
responsible for support enforcement is joined as a party in each
case in which rights are assigned under section 256.74,
subdivision 5 256.741, and in each case in which the public
agency is providing services pursuant to an application for
child support services. A person who may bring an action under
section 257.57 may be made a party to the action. The court may
align the parties. The child shall be made a party whenever:
(1) the child is a minor and the case involves a compromise
under section 257.64, subdivision 1, or a lump sum payment under
section 257.66, subdivision 4, in which case the commissioner of
human services shall also be made a party subject to department
of human services rules relating to paternity suit settlements;
or
(2) the child is a minor and the action is to declare the
nonexistence of the father and child relationship; or
(3) an action to declare the existence of the father and
child relationship is brought by a man presumed to be the father
under section 257.55, or a man who alleges to be the father, and
the mother of the child denies the existence of the father and
child relationship.
Sec. 110. Minnesota Statutes 1998, section 257.85,
subdivision 3, is amended to read:
Subd. 3. [DEFINITIONS.] For purposes of this section, the
terms defined in this subdivision have the meanings given them.
(a) "AFDC or MFIP standard" means the monthly standard of
need used to calculate assistance under the AFDC program, the
transitional standard used to calculate assistance under the
MFIP-S program, or, if neither of those is applicable, the
analogous transitional standard used to calculate assistance
under the MFIP or MFIP-R programs.
(b) "Local agency" means the local social service agency
with legal custody of a child prior to the transfer of permanent
legal and physical custody to a relative.
(c) "Permanent legal and physical custody" means permanent
legal and physical custody ordered by a Minnesota juvenile court
under section 260.191, subdivision 3b.
(d) "Relative" means an individual, other than a parent,
who is related to a child by blood, marriage, or adoption.
(e) "Relative custodian" means a relative of a child for
whom the relative has permanent legal and physical custody.
When siblings, including half-siblings and step-siblings, are
placed together in the permanent legal and physical custody of a
relative of one of the siblings, the person receiving permanent
legal and physical custody of the siblings is considered a
relative custodian of all of the siblings for purposes of this
section.
(f) "Relative custody assistance agreement" means an
agreement entered into between a local agency and the relative
of a child who has been or will be awarded permanent legal and
physical custody of the child.
(g) "Relative custody assistance payment" means a monthly
cash grant made to a relative custodian pursuant to a relative
custody assistance agreement and in an amount calculated under
subdivision 7.
(h) "Remains in the physical custody of the relative
custodian" means that the relative custodian is providing
day-to-day care for the child and that the child lives with the
relative custodian; absence from the relative custodian's home
for a period of more than 120 days raises a presumption that the
child no longer remains in the physical custody of the relative
custodian.
Sec. 111. Minnesota Statutes 1998, section 257.85,
subdivision 5, is amended to read:
Subd. 5. [RELATIVE CUSTODY ASSISTANCE AGREEMENT.] (a) A
relative custody assistance agreement will not be effective,
unless it is signed by the local agency and the relative
custodian no later than 30 days after the date of the order
establishing permanent legal and physical custody with the
relative, except that a local agency may enter into a relative
custody assistance agreement with a relative custodian more than
30 days after the date of the order if it certifies that the
delay in entering the agreement was through no fault of the
relative custodian. There must be a separate agreement for each
child for whom the relative custodian is receiving relative
custody assistance.
(b) Regardless of when the relative custody assistance
agreement is signed by the local agency and relative custodian,
the effective date of the agreement shall be the date of the
order establishing permanent legal and physical custody.
(c) If MFIP-S MFIP is not the applicable program for a
child at the time that a relative custody assistance agreement
is entered on behalf of the child, when MFIP-S MFIP becomes the
applicable program, if the relative custodian had been receiving
custody assistance payments calculated based upon a different
program, the amount of relative custody assistance payment under
subdivision 7 shall be recalculated under the MFIP-S MFIP
program.
(d) The relative custody assistance agreement shall be in a
form specified by the commissioner and shall include provisions
relating to the following:
(1) the responsibilities of all parties to the agreement;
(2) the payment terms, including the financial
circumstances of the relative custodian, the needs of the child,
the amount and calculation of the relative custody assistance
payments, and that the amount of the payments shall be
reevaluated annually;
(3) the effective date of the agreement, which shall also
be the anniversary date for the purpose of submitting the annual
affidavit under subdivision 8;
(4) that failure to submit the affidavit as required by
subdivision 8 will be grounds for terminating the agreement;
(5) the agreement's expected duration, which shall not
extend beyond the child's eighteenth birthday;
(6) any specific known circumstances that could cause the
agreement or payments to be modified, reduced, or terminated and
the relative custodian's appeal rights under subdivision 9;
(7) that the relative custodian must notify the local
agency within 30 days of any of the following:
(i) a change in the child's status;
(ii) a change in the relationship between the relative
custodian and the child;
(iii) a change in composition or level of income of the
relative custodian's family;
(iv) a change in eligibility or receipt of benefits under
AFDC, MFIP-S MFIP, or other assistance program; and
(v) any other change that could affect eligibility for or
amount of relative custody assistance;
(8) that failure to provide notice of a change as required
by clause (7) will be grounds for terminating the agreement;
(9) that the amount of relative custody assistance is
subject to the availability of state funds to reimburse the
local agency making the payments;
(10) that the relative custodian may choose to temporarily
stop receiving payments under the agreement at any time by
providing 30 days' notice to the local agency and may choose to
begin receiving payments again by providing the same notice but
any payments the relative custodian chooses not to receive are
forfeit; and
(11) that the local agency will continue to be responsible
for making relative custody assistance payments under the
agreement regardless of the relative custodian's place of
residence.
Sec. 112. Minnesota Statutes 1998, section 257.85,
subdivision 7, is amended to read:
Subd. 7. [AMOUNT OF RELATIVE CUSTODY ASSISTANCE PAYMENTS.]
(a) The amount of a monthly relative custody assistance payment
shall be determined according to the provisions of this
paragraph.
(1) The total maximum assistance rate is equal to the base
assistance rate plus, if applicable, the supplemental assistance
rate.
(i) The base assistance rate is equal to the maximum amount
that could be received as basic maintenance for a child of the
same age under the adoption assistance program.
(ii) The local agency shall determine whether the child has
physical, mental, emotional, or behavioral disabilities that
require care, supervision, or structure beyond that ordinarily
provided in a family setting to children of the same age such
that the child would be eligible for supplemental maintenance
payments under the adoption assistance program if an adoption
assistance agreement were entered on the child's behalf. If the
local agency determines that the child has such a disability,
the supplemental assistance rate shall be the maximum amount of
monthly supplemental maintenance payment that could be received
on behalf of a child of the same age, disabilities, and
circumstances under the adoption assistance program.
(2) The net maximum assistance rate is equal to the total
maximum assistance rate from clause (1) less the following
offsets:
(i) if the child is or will be part of an assistance unit
receiving an AFDC, MFIP-S, or other MFIP grant, the portion of
the AFDC or MFIP standard relating to the child;
(ii) Supplemental Security Income payments received by or
on behalf of the child;
(iii) veteran's benefits received by or on behalf of the
child; and
(iv) any other income of the child, including child support
payments made on behalf of the child.
(3) The relative custody assistance payment to be made to
the relative custodian shall be a percentage of the net maximum
assistance rate calculated in clause (2) based upon the gross
income of the relative custodian's family, including the child
for whom the relative has permanent legal and physical custody.
In no case shall the amount of the relative custody assistance
payment exceed that which the child could qualify for under the
adoption assistance program if an adoption assistance agreement
were entered on the child's behalf. The relative custody
assistance payment shall be calculated as follows:
(i) if the relative custodian's gross family income is less
than or equal to 200 percent of federal poverty guidelines, the
relative custody assistance payment shall be the full amount of
the net maximum assistance rate;
(ii) if the relative custodian's gross family income is
greater than 200 percent and less than or equal to 225 percent
of federal poverty guidelines, the relative custody assistance
payment shall be 80 percent of the net maximum assistance rate;
(iii) if the relative custodian's gross family income is
greater than 225 percent and less than or equal to 250 percent
of federal poverty guidelines, the relative custody assistance
payment shall be 60 percent of the net maximum assistance rate;
(iv) if the relative custodian's gross family income is
greater than 250 percent and less than or equal to 275 percent
of federal poverty guidelines, the relative custody assistance
payment shall be 40 percent of the net maximum assistance rate;
(v) if the relative custodian's gross family income is
greater than 275 percent and less than or equal to 300 percent
of federal poverty guidelines, the relative custody assistance
payment shall be 20 percent of the net maximum assistance rate;
or
(vi) if the relative custodian's gross family income is
greater than 300 percent of federal poverty guidelines, no
relative custody assistance payment shall be made.
(b) This paragraph specifies the provisions pertaining to
the relationship between relative custody assistance and AFDC,
MFIP-S, or other MFIP programs:
(1) the relative custodian of a child for whom the relative
is receiving relative custody assistance is expected to seek
whatever assistance is available for the child through the AFDC,
MFIP-S, or other MFIP programs program. If a relative custodian
fails to apply for assistance through AFDC, MFIP-S, or other the
MFIP program for which the child is eligible, the child's
portion of the AFDC or MFIP standard will be calculated as if
application had been made and assistance received;
(2) the portion of the AFDC or MFIP standard relating to
each child for whom relative custody assistance is being
received shall be calculated as follows:
(i) determine the total AFDC or MFIP standard for the
assistance unit;
(ii) determine the amount that the AFDC or MFIP standard
would have been if the assistance unit had not included the
children for whom relative custody assistance is being received;
(iii) subtract the amount determined in item (ii) from the
amount determined in item (i); and
(iv) divide the result in item (iii) by the number of
children for whom relative custody assistance is being received
that are part of the assistance unit; or
(3) if a child for whom relative custody assistance is
being received is not eligible for assistance through the AFDC,
MFIP-S, or other MFIP programs program, the portion of AFDC or
MFIP standard relating to that child shall be equal to zero.
Sec. 113. Minnesota Statutes 1998, section 257.85,
subdivision 11, is amended to read:
Subd. 11. [FINANCIAL CONSIDERATIONS.] (a) Payment of
relative custody assistance under a relative custody assistance
agreement is subject to the availability of state funds and
payments may be reduced or suspended on order of the
commissioner if insufficient funds are available.
(b) Upon receipt from a local agency of a claim for
reimbursement, the commissioner shall reimburse the local agency
in an amount equal to 100 percent of the relative custody
assistance payments provided to relative custodians. The local
agency may not seek and the commissioner shall not provide
reimbursement for the administrative costs associated with
performing the duties described in subdivision 4.
(c) For the purposes of determining eligibility or payment
amounts under the AFDC program, MFIP-S, and other MFIP programs
as of July 16, 1996, relative custody assistance payments shall
be considered excluded income.
Sec. 114. Minnesota Statutes 1998, section 259.67,
subdivision 4, is amended to read:
Subd. 4. [ELIGIBILITY CONDITIONS.] (a) The placing agency
shall use the AFDC requirements as specified in federal law as
of July 16, 1996, when determining the child's eligibility for
adoption assistance under title IV-E of the Social Security
Act. If the child does not qualify, the placing agency shall
certify a child as eligible for state funded adoption assistance
only if the following criteria are met:
(1) Due to the child's characteristics or circumstances it
would be difficult to provide the child an adoptive home without
adoption assistance.
(2)(i) A placement agency has made reasonable efforts to
place the child for adoption without adoption assistance, but
has been unsuccessful; or
(ii) the child's licensed foster parents desire to adopt
the child and it is determined by the placing agency that the
adoption is in the best interest of the child.
(3) The child has been a ward of the commissioner or a
Minnesota-licensed child-placing agency.
(b) For purposes of this subdivision, the characteristics
or circumstances that may be considered in determining whether a
child is a child with special needs under United States Code,
title 42, chapter 7, subchapter IV, part E, or meets the
requirements of paragraph (a), clause (1), are the following:
(1) The child is a member of a sibling group to be placed
as one unit in which at least one sibling is older than 15
months of age or is described in clause (2) or (3).
(2) The child has documented physical, mental, emotional,
or behavioral disabilities.
(3) The child has a high risk of developing physical,
mental, emotional, or behavioral disabilities.
(c) When a child's eligibility for adoption assistance is
based upon the high risk of developing physical, mental,
emotional, or behavioral disabilities, payments shall not be
made under the adoption assistance agreement unless and until
the potential disability manifests itself as documented by an
appropriate health care professional.
Sec. 115. Minnesota Statutes 1998, section 260.38, is
amended to read:
260.38 [COST, PAYMENT.]
In addition to the usual care and services given by public
and private agencies, the necessary cost incurred by the
commissioner of human services in providing care for such child
shall be paid by the county committing such child which, subject
to uniform rules established by the commissioner of human
services, may receive a reimbursement not exceeding one-half of
such costs from funds made available for this purpose by the
legislature during the period beginning July 1, 1985, and ending
December 31, 1985. Beginning January 1, 1986, the necessary
cost incurred by the commissioner of human services in providing
care for the child must be paid by the county committing the
child. Where such child is eligible to receive a grant of aid
to families with dependent children, Minnesota family investment
program-statewide program or supplemental security income for
the aged, blind, and disabled, or a foster care maintenance
payment under title IV-E of the Social Security Act, United
States Code, title 42, sections 670 to 676, the child's needs
shall be met through these programs.
Sec. 116. Minnesota Statutes 1998, section 261.063, is
amended to read:
261.063 [TAX LEVY FOR SOCIAL SECURITY MEASURES; DUTIES OF
COUNTY BOARD.]
The board of county commissioners of each county shall
annually levy taxes and fix a rate sufficient to produce the
full amount required for poor relief, general assistance, aid to
dependent children Minnesota family investment program, county
share of county and state supplemental aid to supplemental
security income applicants or recipients, and any other social
security measures wherein there is now or may hereafter be
county participation, sufficient to produce the full amount
necessary for each such item, including administrative expenses,
for the ensuing year, within the time fixed by law in addition
to all other tax levies and tax rates, however fixed or
determined, and any commissioner who shall fail to comply
herewith shall be guilty of a gross misdemeanor and shall be
immediately removed from office by the governor.
Sec. 117. Minnesota Statutes 1998, section 268.0111,
subdivision 5, is amended to read:
Subd. 5. [INCOME MAINTENANCE AND SUPPORT SERVICES.]
"Income maintenance and support services" means programs through
which the state or its subdivisions provide direct financial or
in-kind support to unemployed or underemployed persons,
including reemployment insurance, aid to families with dependent
children, Minnesota family investment program-statewide program,
general assistance, food stamps, energy assistance, disability
determinations, and child care. Income maintenance and support
services do not include medical assistance, aging services,
social services, community social services, mental health
services, or services for the emotionally disturbed, the
mentally retarded, or residents of nursing homes.
Sec. 118. Minnesota Statutes 1998, section 268.0111,
subdivision 7, is amended to read:
Subd. 7. [PUBLIC ASSISTANCE.] "Public assistance"
means aid to families with dependent children, Minnesota family
investment program-statewide, program and general assistance.
Sec. 119. Minnesota Statutes 1998, section 268.0122,
subdivision 3, is amended to read:
Subd. 3. [DUTIES AS STATE AGENCY.] The commissioner shall:
(1) administer the reemployment insurance benefits laws and
related programs;
(2) administer the aspects of aid to families with
dependent children, Minnesota family investment
program-statewide program, general assistance, and food stamps
that relate to employment and training services, subject to the
contract under section 268.86, subdivision 2;
(3) administer wage subsidies and the discretionary
employment and training fund;
(4) administer a national system of public employment
offices as prescribed by United States Code, title 29, chapter
4B, the Wagner-Peyser Act, and other federal employment and
training programs;
(5) cooperate with the federal government and its
employment and training agencies in any reasonable manner as
necessary to qualify for federal aid for employment and training
services and money;
(6) enter into agreements with other departments of the
state and local units of government as necessary;
(7) certify employment and training service providers and
decertify service providers that fail to comply with performance
criteria according to standards established by the commissioner;
(8) provide consistent, integrated employment and training
services across the state;
(9) establish the standards for all employment and training
services administered under this chapter;
(10) develop standards for the contents and structure of
the local service unit plans and plans for Indian tribe
employment and training services;
(11) provide current state and substate labor market
information and forecasts, in cooperation with other agencies;
(12) identify underserved populations, unmet service needs,
and funding requirements;
(13) consult with the council for the blind on matters
pertaining to programs and services for the blind and visually
impaired; and
(14) enter into agreements with Indian tribes as necessary
to provide employment and training services as funds become
available.
Sec. 120. Minnesota Statutes 1998, section 268.552,
subdivision 5, is amended to read:
Subd. 5. [ALLOCATION TO APPLICANTS.] Priority for
subsidies shall be in the following order:
(1) applicants living in households with no other income
source;
(2) applicants whose incomes and resources are less than
the standard for eligibility for general assistance; and
(3) applicants who are eligible for aid to families with
dependent children or Minnesota family investment
program-statewide program.
Sec. 121. Minnesota Statutes 1998, section 268.672,
subdivision 6, is amended to read:
Subd. 6. [ELIGIBLE JOB APPLICANT.] "Eligible job
applicant" means a person who:
(1) has attempted to secure a nonsubsidized job by
completing comprehensive job readiness and is:
(i) a temporary assistance for needy families
(TANF) Minnesota family investment program recipient who is
making good faith efforts to comply with the family support
agreement a job search support plan as defined under
section 256.032, subdivision 7a 256J.52, subdivision 3, or an
employment plan as defined under section 256J.52, subdivision 5,
but has failed to find suitable employment; or
(ii) a family general assistance recipient;
(2) is a member of a household supported only by:
(i) a low-income worker; or
(ii) a person who is underemployed as that term is defined
in section 268.61, subdivision 5; or
(3) is a member of a family that is eligible for, but not
receiving public assistance.
Sec. 122. Minnesota Statutes 1998, section 268.86,
subdivision 2, is amended to read:
Subd. 2. [INTERAGENCY AGREEMENTS.] By October 1, 1987, the
commissioner and the commissioner of human services shall enter
into a written contract for the design, delivery, and
administration of employment and training services for
applicants for or recipients of food stamps, aid to families
with dependent children or Minnesota family investment
program-statewide program, including AFDC and MFIP-S employment
and training programs and general assistance. The contract must
address:
(1) specific roles and responsibilities of each department;
(2) assignment and supervision of staff for interagency
activities including any necessary interagency employee mobility
agreements under the administrative procedures of the department
of employee relations;
(3) mechanisms for determining the conditions under which
individuals participate in services, their rights and
responsibilities while participating, and the standards by which
the services must be administered;
(4) procedures for providing technical assistance to local
service units, Indian tribes, and employment and training
service providers;
(5) access to appropriate staff for ongoing development and
interpretation of policy, rules, and program standards;
(6) procedures for reimbursing appropriate agencies for
administrative expenses; and
(7) procedures for accessing available federal funds.
Sec. 123. Minnesota Statutes 1998, section 268.871,
subdivision 1, is amended to read:
Subdivision 1. [RESPONSIBILITY AND CERTIFICATION.] (a)
Unless prohibited by federal law or otherwise determined by
state law, a local service unit is responsible for the delivery
of employment and training services. After February 1, 1988,
employment and training services must be delivered by certified
employment and training service providers.
(b) The local service unit's employment and training
service provider must meet the certification standards in this
subdivision in order to be certified to deliver any of the
following employment and training services and programs: wage
subsidies; general assistance grant diversion; food stamp
employment and training programs; community work experience
programs; AFDC or MFIP-S MFIP job search; AFDC or MFIP-S MFIP
grant diversion; AFDC or MFIP-S MFIP on-the-job training; and
AFDC or MFIP-S MFIP case management.
(c) The commissioner shall certify a local service unit's
service provider to provide these employment and training
services and programs if the commissioner determines that the
provider has:
(1) past experience in direct delivery of the programs
specified in paragraph (b);
(2) staff capabilities and qualifications, including
adequate staff to provide timely and effective services to
clients, and proven staff experience in providing specific
services such as assessments, career planning, job development,
job placement, support services, and knowledge of community
services and educational resources;
(3) demonstrated effectiveness in providing services to
public assistance recipients and other economically
disadvantaged clients; and
(4) demonstrated administrative capabilities, including
adequate fiscal and accounting procedures, financial management
systems, participant data systems, and record retention
procedures.
(d) When the only service provider that meets the criterion
in paragraph (c), clause (1), has been decertified, according to
subdivision 1a, in that local service unit, the following
criteria shall be substituted: past experience in direct
delivery of multiple, coordinated, nonduplicative services,
including outreach, assessments, identification of client
barriers, employability development plans, and provision or
referral to support services.
(e) The commissioner shall certify providers of the
Minnesota family investment plan case management services as
defined in section 256.032, subdivision 3. Providers must meet
the standards defined in paragraph (c), except that past
experience under paragraph (c), clause (1), must be in services
and programs similar to those specified in section 256.032,
subdivision 3.
Employment and training service providers shall be
certified by the commissioner for two fiscal years beginning
July 1, 1991, and every second year thereafter.
Sec. 124. Minnesota Statutes 1998, section 268.90,
subdivision 2, is amended to read:
Subd. 2. [EMPLOYMENT CONDITIONS.] (a) An eligible
nonprofit or public employer may not terminate, lay off, or
reduce the regular working hours of an employee for the purpose
of hiring an individual with money available under this
program. An eligible employer may not hire an individual with
money available through this program if any other person is on
layoff from the same or a substantially equivalent job.
(b) Community investment program participants are employees
of the project employer within the meaning of workers'
compensation laws, personal income tax, and the Federal
Insurance Contribution Act, but not retirement or civil service
laws.
(c) Each project and job must comply with all applicable
affirmative action, fair labor, health, safety, and
environmental standards.
(d) Individuals employed under the community investment
program must be paid a wage at the same wage rates as work site
or employees doing comparable work in that locality, unless
otherwise specified in law.
(e) Recipients of aid to families with dependent children
or Minnesota family investment program-statewide who are
eligible on the basis of an unemployed parent may not have
available more than 100 hours a month. All employees are
limited to 32 hours or four days a week, so that they can
continue to seek full-time private sector employment, unless
otherwise specified in law.
(f) The commissioner shall establish, by rule, the terms
and conditions governing the participation of appropriate public
assistance recipients. The rules must, at a minimum, establish
the procedures by which the minimum and maximum number of work
hours and maximum allowable travel distances are determined, the
amounts and methods by which work expenses will be paid, and the
manner in which support services will be provided. The rules
must also provide for periodic reviews of clients continuing
employment in community investment programs.
(g) Participation in a community investment program by a
recipient of aid to families with dependent children, Minnesota
family investment program-statewide, program assistance or
general assistance is voluntary.
Sec. 125. Minnesota Statutes 1998, section 268.95,
subdivision 4, is amended to read:
Subd. 4. [PILOT PROGRAM.] The commissioner shall develop a
pilot program, in cooperation with the commissioners of trade
and economic development and human services, to enable
low-income persons to start or expand self-employment
opportunities or home-based businesses that are designed to make
the individual entrepreneurs economically independent. The
commissioner of human services shall seek necessary waivers from
federal regulations to allow recipients of aid to families with
dependent children or Minnesota family investment
program-statewide program assistance to participate and retain
eligibility while establishing a business.
Sec. 126. Minnesota Statutes 1998, section 275.065,
subdivision 5a, is amended to read:
Subd. 5a. [PUBLIC ADVERTISEMENT.] (a) A city that has a
population of more than 2,500, county, a metropolitan special
taxing district as defined in subdivision 3, paragraph (i), a
regional library district established under section 134.201, or
school district shall advertise in a newspaper a notice of its
intent to adopt a budget and property tax levy or, in the case
of a school district, to review its current budget and proposed
property taxes payable in the following year, at a public
hearing. The notice must be published not less than two
business days nor more than six business days before the hearing.
The advertisement must be at least one-eighth page in size
of a standard-size or a tabloid-size newspaper. The
advertisement must not be placed in the part of the newspaper
where legal notices and classified advertisements appear. The
advertisement must be published in an official newspaper of
general circulation in the taxing authority. The newspaper
selected must be one of general interest and readership in the
community, and not one of limited subject matter. The
advertisement must appear in a newspaper that is published at
least once per week.
For purposes of this section, the metropolitan special
taxing district's advertisement must only be published in the
Minneapolis Star and Tribune and the Saint Paul Pioneer Press.
(b) The advertisement for school districts, metropolitan
special taxing districts, and regional library districts must be
in the following form, except that the notice for a school
district may include references to the current budget in regard
to proposed property taxes.
"NOTICE OF
PROPOSED PROPERTY TAXES
(School District/Metropolitan
Special Taxing District/Regional
Library District) of .........
The governing body of ........ will soon hold budget hearings
and vote on the property taxes for (metropolitan special taxing
district/regional library district services that will be
provided in (year)/school district services that will be
provided in (year) and (year)).
NOTICE OF PUBLIC HEARING:
All concerned citizens are invited to attend a public hearing
and express their opinions on the proposed (school
district/metropolitan special taxing district/regional library
district) budget and property taxes, or in the case of a school
district, its current budget and proposed property taxes,
payable in the following year. The hearing will be held on
(Month/Day/Year) at (Time) at (Location, Address)."
(c) The advertisement for cities and counties must be in
the following form.
"NOTICE OF PROPOSED
TOTAL BUDGET AND PROPERTY TAXES
The (city/county) governing body or board of commissioners will
hold a public hearing to discuss the budget and to vote on the
amount of property taxes to collect for services the
(city/county) will provide in (year).
SPENDING: The total budget amounts below compare
(city's/county's) (year) total actual budget with the amount the
(city/county) proposes to spend in (year).
(Year) Total Proposed (Year) Change from
Actual Budget Budget (Year)-(Year)
$....... $....... ...%
TAXES: The property tax amounts below compare that portion of
the current budget levied in property taxes in (city/county) for
(year) with the property taxes the (city/county) proposes to
collect in (year).
(Year) Property Proposed (Year) Change from
Taxes Property Taxes (Year)-(Year)
$....... $....... ...%
ATTEND THE PUBLIC HEARING
All (city/county) residents are invited to attend the public
hearing of the (city/county) to express your opinions on the
budget and the proposed amount of (year) property taxes. The
hearing will be held on:
(Month/Day/Year/Time)
(Location/Address)
If the discussion of the budget cannot be completed, a time and
place for continuing the discussion will be announced at the
hearing. You are also invited to send your written comments to:
(City/County)
(Location/Address)"
(d) For purposes of this subdivision, the budget amounts
listed on the advertisement mean:
(1) for cities, the total government fund expenditures, as
defined by the state auditor under section 471.6965, less any
expenditures for improvements or services that are specially
assessed or charged under chapter 429, 430, 435, or the
provisions of any other law or charter; and
(2) for counties, the total government fund expenditures,
as defined by the state auditor under section 375.169, less any
expenditures for direct payments to recipients or providers for
the human service aids listed below:
(1) aid to families with dependent children under sections
256.82, subdivision 1, and 256.935, subdivision 1 (i) Minnesota
family investment program under chapters 256J and 256K;
(2) (ii) medical assistance under sections 256B.041,
subdivision 5, and 256B.19, subdivision 1;
(3) (iii) general assistance medical care under section
256D.03, subdivision 6;
(4) (iv) general assistance under section 256D.03,
subdivision 2;
(5) (v) emergency assistance under section 256.871,
subdivision 6 256J.48;
(6) (vi) Minnesota supplemental aid under section 256D.36,
subdivision 1;
(7) (vii) preadmission screening under section 256B.0911,
and alternative care grants under section 256B.0913;
(8) (viii) general assistance medical care claims
processing, medical transportation and related costs under
section 256D.03, subdivision 4;
(9) (ix) medical transportation and related costs under
section 256B.0625, subdivisions 17 to 18a;
(10) (x) group residential housing under 256I.05,
subdivision 8, transferred from programs in clauses (4) (iv) and
(6) (vi); or
(11) (xi) any successor programs to those listed in clauses
(1) (i) to (10) (x).
(e) A city with a population of over 500 but not more than
2,500 must advertise by posted notice as defined in section
645.12, subdivision 1. The advertisement must be posted at the
time provided in paragraph (a). It must be in the form required
in paragraph (b).
(f) For purposes of this subdivision, the population of a
city is the most recent population as determined by the state
demographer under section 4A.02.
(g) The commissioner of revenue, subject to the approval of
the chairs of the house and senate tax committees, shall
prescribe the form and format of the advertisement.
Sec. 127. Minnesota Statutes 1998, section 290.067,
subdivision 1, is amended to read:
Subdivision 1. [AMOUNT OF CREDIT.] (a) A taxpayer may take
as a credit against the tax due from the taxpayer and a spouse,
if any, under this chapter an amount equal to the dependent care
credit for which the taxpayer is eligible pursuant to the
provisions of section 21 of the Internal Revenue Code subject to
the limitations provided in subdivision 2 except that in
determining whether the child qualified as a dependent, income
received as an aid to families with dependent children a
Minnesota family investment program grant or allowance to or on
behalf of the child, or as a grant or allowance to or on behalf
of the child under the successor program pursuant to Public Law
104-193, must not be taken into account in determining whether
the child received more than half of the child's support from
the taxpayer, and the provisions of section 32(b)(1)(D) of the
Internal Revenue Code do not apply.
(b) If a child who has not attained the age of six years at
the close of the taxable year is cared for at a licensed family
day care home operated by the child's parent, the taxpayer is
deemed to have paid employment-related expenses. If the child
is 16 months old or younger at the close of the taxable year,
the amount of expenses deemed to have been paid equals the
maximum limit for one qualified individual under section 21(c)
and (d) of the Internal Revenue Code. If the child is older
than 16 months of age but has not attained the age of six years
at the close of the taxable year, the amount of expenses deemed
to have been paid equals the amount the licensee would charge
for the care of a child of the same age for the same number of
hours of care.
(c) If a married couple:
(1) has a child who has not attained the age of one year at
the close of the taxable year;
(2) files a joint tax return for the taxable year; and
(3) does not participate in a dependent care assistance
program as defined in section 129 of the Internal Revenue Code,
in lieu of the actual employment related expenses paid for that
child under paragraph (a) or the deemed amount under paragraph
(b), the lesser of (i) the combined earned income of the couple
or (ii) $2,400 will be deemed to be the employment related
expense paid for that child. The earned income limitation of
section 21(d) of the Internal Revenue Code shall not apply to
this deemed amount. These deemed amounts apply regardless of
whether any employment-related expenses have been paid.
(d) If the taxpayer is not required and does not file a
federal individual income tax return for the tax year, no credit
is allowed for any amount paid to any person unless:
(1) the name, address, and taxpayer identification number
of the person are included on the return claiming the credit; or
(2) if the person is an organization described in section
501(c)(3) of the Internal Revenue Code and exempt from tax under
section 501(a) of the Internal Revenue Code, the name and
address of the person are included on the return claiming the
credit.
In the case of a failure to provide the information required
under the preceding sentence, the preceding sentence does not
apply if it is shown that the taxpayer exercised due diligence
in attempting to provide the information required.
In the case of a nonresident, part-year resident, or a
person who has earned income not subject to tax under this
chapter, the credit determined under section 21 of the Internal
Revenue Code must be allocated based on the ratio by which the
earned income of the claimant and the claimant's spouse from
Minnesota sources bears to the total earned income of the
claimant and the claimant's spouse.
Sec. 128. Minnesota Statutes 1998, section 290A.03,
subdivision 7, is amended to read:
Subd. 7. [DEPENDENT.] "Dependent" means any person who is
considered a dependent under sections 151 and 152 of the
Internal Revenue Code. In the case of a son, stepson, daughter,
or stepdaughter of the claimant, amounts received as an aid to
families with dependent children a Minnesota family investment
program grant, allowance to or on behalf of the child, or as a
grant or allowance to or on behalf of the child under the
successor program pursuant to Public Law Number 104-193, surplus
food, or other relief in kind supplied by a governmental agency
must not be taken into account in determining whether the child
received more than half of the child's support from the claimant.
Sec. 129. Minnesota Statutes 1998, section 393.07,
subdivision 6, is amended to read:
Subd. 6. [PURCHASE OF EQUIPMENT TO AID WELFARE
RECIPIENTS.] Every local social services agency authorizing
braces, crutches, trusses, wheel chairs and hearing aids for use
by recipients of supplemental security income for the aged,
blind and disabled, aid to families with dependent children or
Minnesota family investment program-statewide program and relief
shall secure such devices at the lowest cost obtainable
conducive to the well being of the recipient and fix the
recipient's grant in an amount to cover the cost of the device
providing it will be purchased at the lowest cost obtainable, or
may make payment for the device directly to the vendor.
Sec. 130. Minnesota Statutes 1998, section 462A.205,
subdivision 2, is amended to read:
Subd. 2. [DEFINITIONS.] For the purposes of this section,
the following terms have the meanings given them.
(a) "Caretaker parent" means a parent, relative caretaker,
or minor caretaker as defined by the aid to families with
dependent children program, sections 256.72 to 256.87, or its
successor program Minnesota family investment program, chapter
256J.
(b) "County agency" means the agency designated by the
county board to implement financial assistance for current
public assistance programs and for the Minnesota family
investment program statewide.
(c) "Counties with high average housing costs" means
counties whose average federal section 8 fair market rents as
determined by the Department of Housing and Urban Development
are in the highest one-third of average rents in the state.
(d) "Designated rental property" is rental property (1)
that is made available by a self-sufficiency program for use by
participating families and meets federal section 8 existing
quality standards, or (2) that has received federal, state, or
local rental rehabilitation assistance since January 1, 1987,
and meets federal section 8 existing housing quality standards.
(e) "Earned income" for a family receiving rental
assistance under this section means cash or in-kind income
earned through the receipt of wages, salary, commissions, profit
from employment activities, net profit from self-employment
activities, payments made by an employer for regularly accrued
vacation or sick leave, and any other profit from activity
earned through effort or labor.
(f) "Family or participating family" means:
(1) a family with a caretaker parent who is participating
in a self-sufficiency program and with at least one minor child;
(2) a family that, at the time it began receiving rent
assistance under this section, had a caretaker parent
participating in a self-sufficiency program and had at least one
minor child;
(3) a family with a caretaker parent who is receiving
public assistance and has earned income and with at least one
minor child; or
(4) a family that, at the time it began receiving rent
assistance under this section, had a caretaker parent who had
earned income and at least one minor child.
(g) "Gross family income" for a family receiving rental
assistance under this section means the gross amount of the
wages, salaries, social security payments, pensions, workers'
compensation, reemployment insurance, public assistance
payments, alimony, child support, and income from assets
received by the family.
(h) "Local housing organization" means the agency of local
government responsible for administering the Department of
Housing and Urban Development's section 8 existing voucher and
certificate program or a nonprofit or for-profit organization
experienced in housing management.
(i) "Public assistance" means aid to families with
dependent children, or its successor program, family general
assistance, or its successor program, or family work readiness,
or its successor the Minnesota family investment program.
(j) "Self-sufficiency program" means a program operated by
an employment and training service provider as defined in
chapter 256J, an employability program administered by a
community action agency, or courses of study at an accredited
institution of higher education pursued with at least half-time
student status.
Sec. 131. Minnesota Statutes 1998, section 462A.222,
subdivision 1a, is amended to read:
Subd. 1a. [DETERMINATION OF REGIONAL CREDIT POOLS.] The
agency shall divide the annual per capita amount used in
determining the state ceiling for low-income housing tax credits
provided under section 42 of the Internal Revenue Code of 1986,
as amended, into a metropolitan pool and a greater Minnesota
pool. The metropolitan pool shall serve the metropolitan area
as defined in section 473.121, subdivision 2. The greater
Minnesota pool shall serve the remaining counties of the state.
The percentage of the annual per capita amount allotted to each
pool must be determined as follows:
(a) The percentage set-aside for projects involving a
qualified nonprofit organization as provided in section 42 of
the Internal Revenue Code of 1986, as amended, must be deducted
from the annual per capita amount used in determining the state
ceiling.
(b) Of the remaining amount, the metropolitan pool must be
allotted a percentage equal to the metropolitan counties'
percentage of the total number of state recipients of: aid to
families with dependent children the Minnesota family investment
program, general assistance, Minnesota supplemental aid, and
supplemental security income in the state, as reported annually
by the department of human services. The greater Minnesota pool
must be allotted the amount remaining after the metropolitan
pool's percentage has been allotted.
The set-aside for qualified nonprofit organizations must be
divided between the two regional pools in the same percentage as
determined for the credit amounts above.
Sec. 132. Minnesota Statutes 1998, section 473.129,
subdivision 8, is amended to read:
Subd. 8. [INSURANCE.] The council may provide for
self-insurance or otherwise provide for insurance relating to
any of its property, rights, or revenue, workers' compensation,
public liability, or any other risk or hazard arising from its
activities, and may provide for insuring any of its officers or
employees against the risk or hazard at the expense of the
council. If the council provides for self-insurance, against
its liability and the liability of its officers, employees, and
agents for damages resulting from its torts and those of its
officers, employees, and agents, including its obligation to pay
basic economic loss benefits under sections 65B.41 to 65B.71, it
shall be entitled to deduct from damages and basic economic loss
benefits all money paid or payable to the persons seeking
damages and benefits from all governmental entities providing
medical, hospital, and disability benefits except for payments
made under the aid to families with dependent children Minnesota
family investment program or medical assistance programs program.
Sec. 133. Minnesota Statutes 1998, section 477A.0122,
subdivision 2, is amended to read:
Subd. 2. [DEFINITIONS.] For purposes of this section, the
following definitions apply:
(a) "Children in out-of-home placement" means the total
unduplicated number of children in out-of-home care as reported
according to section 257.0725.
(b) "Family preservation programs" means family-based
services as defined in section 256F.03, subdivision 5, families
first services, parent and child education programs, and day
treatment services provided in cooperation with a school
district or other programs as defined by the commissioner of
human services.
(c) "Income maintenance caseload" means average monthly
number of AFDC or Minnesota family investment program-statewide
program cases for the calendar year.
By July 1, 1994, the commissioner of human services shall
certify to the commissioner of revenue the number of children in
out-of-home placement in 1991 and 1992 for each county and the
income maintenance caseload for each county for the most recent
year available. By July 1 of each subsequent year, the
commissioner of human services shall certify to the commissioner
of revenue the income maintenance caseload for each county for
the most recent calendar year available.
Sec. 134. Minnesota Statutes 1998, section 501B.89,
subdivision 2, is amended to read:
Subd. 2. [SUPPLEMENTAL TRUSTS FOR PERSONS WITH
DISABILITIES.] (a) It is the public policy of this state to
enforce supplemental needs trusts as provided in this
subdivision.
(b) For purposes of this subdivision, a "supplemental needs
trust" is a trust created for the benefit of a person with a
disability and funded by someone other than the trust
beneficiary, the beneficiary's spouse, or anyone obligated to
pay any sum for damages or any other purpose to or for the
benefit of the trust beneficiary under the terms of a settlement
agreement or judgment.
(c) For purposes of this subdivision, a "person with a
disability" means a person who, prior to creation of a trust
which otherwise qualifies as a supplemental needs trust for the
person's benefit:
(1) is considered to be a person with a disability under
the disability criteria specified in Title II or Title XVI of
the Social Security Act; or
(2) has a physical or mental illness or condition which, in
the expected natural course of the illness or condition, either
prior to or following creation of the trust, to a reasonable
degree of medical certainty, is expected to:
(i) last for a continuous period of 12 months or more; and
(ii) substantially impair the person's ability to provide
for the person's care or custody.
Disability may be established conclusively for purposes of
this subdivision by the written opinion of a licensed
professional who is qualified to diagnose the illness or
condition, confirmed by the written opinion of a second licensed
professional who is qualified to diagnose the illness or
condition.
(d) The general purpose of a supplemental needs trust must
be to provide for the reasonable living expenses and other basic
needs of a person with a disability when benefits from publicly
funded benefit programs are not sufficient to provide adequately
for those needs. Subject to the restrictions contained in this
paragraph, a supplemental needs trust may authorize
distributions to provide for all or any portion of the
reasonable living expenses of the beneficiary. A supplemental
needs trust may allow or require distributions only in ways and
for purposes that supplement or complement the benefits
available under medical assistance, Minnesota supplemental aid,
and other publicly funded benefit programs for disabled
persons. A supplemental needs trust must contain provisions
that prohibit disbursements that would have the effect of
replacing, reducing, or substituting for publicly funded
benefits otherwise available to the beneficiary or rendering the
beneficiary ineligible for publicly funded benefits.
(e) A supplemental needs trust is not enforceable if the
trust beneficiary becomes a patient or resident after age 64 in
a state institution or nursing facility for six months or more
and, due to the beneficiary's medical need for care in an
institutional setting, there is no reasonable expectation that
the beneficiary will ever be discharged from the institution or
facility. For purposes of this paragraph "reasonable
expectation" means that the beneficiary's attending physician
has certified that the expectation is reasonable. For purposes
of this paragraph, a beneficiary participating in a group
residential program is not deemed to be a patient or resident in
a state institution or nursing facility.
(f) The trust income and assets of a supplemental needs
trust are considered available to the beneficiary for medical
assistance purposes to the extent they are considered available
to the beneficiary under medical assistance, supplemental
security income, or aid to families with dependent
children Minnesota family investment program methodology,
whichever is used to determine the beneficiary's eligibility for
medical assistance. For other public assistance programs
established or administered under state law, assets and income
will be considered available to the beneficiary in accordance
with the methodology applicable to the program.
(g) Nothing in this subdivision requires submission of a
supplemental needs trust to a court for interpretation or
enforcement.
(h) Paragraphs (a) to (g) apply to supplemental needs
trusts whenever created, but the limitations and restrictions in
paragraphs (c) to (g) apply only to trusts created after June
30, 1993.
Sec. 135. Minnesota Statutes 1998, section 518.171,
subdivision 1, is amended to read:
Subdivision 1. [ORDER.] Compliance with this section
constitutes compliance with a qualified medical child support
order as described in the federal Employee Retirement Income
Security Act of 1974 (ERISA) as amended by the federal Omnibus
Budget Reconciliation Act of 1993 (OBRA).
(a) Every child support order must:
(1) expressly assign or reserve the responsibility for
maintaining medical insurance for the minor children and the
division of uninsured medical and dental costs; and
(2) contain the names, last known addresses, and social
security number of the custodial parent and noncustodial parent,
of the dependents unless the court prohibits the inclusion of an
address or social security number and orders the custodial
parent to provide the address and social security number to the
administrator of the health plan. The court shall order the
party with the better group dependent health and dental
insurance coverage or health insurance plan to name the minor
child as beneficiary on any health and dental insurance plan
that is available to the party on:
(i) a group basis;
(ii) through an employer or union; or
(iii) through a group health plan governed under the ERISA
and included within the definitions relating to health plans
found in section 62A.011, 62A.048, or 62E.06, subdivision 2.
"Health insurance" or "health insurance coverage" as used in
this section means coverage that is comparable to or better than
a number two qualified plan as defined in section 62E.06,
subdivision 2. "Health insurance" or "health insurance
coverage" as used in this section does not include medical
assistance provided under chapter 256, 256B, 256J, 256K, or 256D.
(b) If the court finds that dependent health or dental
insurance is not available to the obligor or obligee on a group
basis or through an employer or union, or that group insurance
is not accessible to the obligee, the court may require the
obligor (1) to obtain other dependent health or dental
insurance, (2) to be liable for reasonable and necessary medical
or dental expenses of the child, or (3) to pay no less than $50
per month to be applied to the medical and dental expenses of
the children or to the cost of health insurance dependent
coverage.
(c) If the court finds that the available dependent health
or dental insurance does not pay all the reasonable and
necessary medical or dental expenses of the child, including any
existing or anticipated extraordinary medical expenses, and the
court finds that the obligor has the financial ability to
contribute to the payment of these medical or dental expenses,
the court shall require the obligor to be liable for all or a
portion of the medical or dental expenses of the child not
covered by the required health or dental plan. Medical and
dental expenses include, but are not limited to, necessary
orthodontia and eye care, including prescription lenses.
(d) Unless otherwise agreed by the parties and approved by
the court, if the court finds that the obligee is not receiving
public assistance for the child and has the financial ability to
contribute to the cost of medical and dental expenses for the
child, including the cost of insurance, the court shall order
the obligee and obligor to each assume a portion of these
expenses based on their proportionate share of their total net
income as defined in section 518.54, subdivision 6.
(e) Payments ordered under this section are subject to
section 518.6111. An obligee who fails to apply payments
received to the medical expenses of the dependents may be found
in contempt of this order.
Sec. 136. Minnesota Statutes 1998, section 518.551,
subdivision 5, is amended to read:
Subd. 5. [NOTICE TO PUBLIC AUTHORITY; GUIDELINES.] (a) The
petitioner shall notify the public authority of all proceedings
for dissolution, legal separation, determination of parentage or
for the custody of a child, if either party is receiving public
assistance or applies for it subsequent to the commencement of
the proceeding. The notice must contain the full names of the
parties to the proceeding, their social security account
numbers, and their birth dates. After receipt of the notice,
the court shall set child support as provided in this
subdivision. The court may order either or both parents owing a
duty of support to a child of the marriage to pay an amount
reasonable or necessary for the child's support, without regard
to marital misconduct. The court shall approve a child support
stipulation of the parties if each party is represented by
independent counsel, unless the stipulation does not meet the
conditions of paragraph (i). In other cases the court shall
determine and order child support in a specific dollar amount in
accordance with the guidelines and the other factors set forth
in paragraph (c) and any departure therefrom. The court may
also order the obligor to pay child support in the form of a
percentage share of the obligor's net bonuses, commissions, or
other forms of compensation, in addition to, or if the obligor
receives no base pay, in lieu of, an order for a specific dollar
amount.
(b) The court shall derive a specific dollar amount for
child support by multiplying the obligor's net income by the
percentage indicated by the following guidelines:
Net Income Per Number of Children
Month of Obligor
1 2 3 4 5 6 7 or
more
$550 and Below Order based on the ability of the
obligor to provide support
at these income levels, or at higher
levels, if the obligor has
the earning ability.
$551 - 600 16% 19% 22% 25% 28% 30% 32%
$601 - 650 17% 21% 24% 27% 29% 32% 34%
$651 - 700 18% 22% 25% 28% 31% 34% 36%
$701 - 750 19% 23% 27% 30% 33% 36% 38%
$751 - 800 20% 24% 28% 31% 35% 38% 40%
$801 - 850 21% 25% 29% 33% 36% 40% 42%
$851 - 900 22% 27% 31% 34% 38% 41% 44%
$901 - 950 23% 28% 32% 36% 40% 43% 46%
$951 - 1000 24% 29% 34% 38% 41% 45% 48%
$1001- 5000 25% 30% 35% 39% 43% 47% 50%
or the amount
in effect under
paragraph (k)
Guidelines for support for an obligor with a monthly income
in excess of the income limit currently in effect under
paragraph (k) shall be the same dollar amounts as provided for
in the guidelines for an obligor with a monthly income equal to
the limit in effect.
Net Income defined as:
Total monthly
income less *(i) Federal Income Tax
*(ii) State Income Tax
(iii) Social Security
Deductions
(iv) Reasonable
Pension Deductions
*Standard
Deductions apply- (v) Union Dues
use of tax tables (vi) Cost of Dependent Health
recommended Insurance Coverage
(vii) Cost of Individual or Group
Health/Hospitalization
Coverage or an
Amount for Actual
Medical Expenses
(viii) A Child Support or
Maintenance Order that is
Currently Being Paid.
"Net income" does not include:
(1) the income of the obligor's spouse, but does include
in-kind payments received by the obligor in the course of
employment, self-employment, or operation of a business if the
payments reduce the obligor's living expenses; or
(2) compensation received by a party for employment in
excess of a 40-hour work week, provided that:
(i) support is nonetheless ordered in an amount at least
equal to the guidelines amount based on income not excluded
under this clause; and
(ii) the party demonstrates, and the court finds, that:
(A) the excess employment began after the filing of the
petition for dissolution;
(B) the excess employment reflects an increase in the work
schedule or hours worked over that of the two years immediately
preceding the filing of the petition;
(C) the excess employment is voluntary and not a condition
of employment;
(D) the excess employment is in the nature of additional,
part-time or overtime employment compensable by the hour or
fraction of an hour; and
(E) the party's compensation structure has not been changed
for the purpose of affecting a support or maintenance obligation.
The court shall review the work-related and
education-related child care costs paid and shall allocate the
costs to each parent in proportion to each parent's net income,
as determined under this subdivision, after the transfer of
child support and spousal maintenance, unless the allocation
would be substantially unfair to either parent. There is a
presumption of substantial unfairness if after the sum total of
child support, spousal maintenance, and child care costs is
subtracted from the noncustodial parent's income, the income is
at or below 100 percent of the federal poverty guidelines. The
cost of child care for purposes of this paragraph is 75 percent
of the actual cost paid for child care, to reflect the
approximate value of state and federal tax credits available to
the custodial parent. The actual cost paid for child care is
the total amount received by the child care provider for the
child or children of the obligor from the obligee or any public
agency. The court shall require verification of employment or
school attendance and documentation of child care expenses from
the obligee and the public agency, if applicable. If child care
expenses fluctuate during the year because of seasonal
employment or school attendance of the obligee or extended
periods of visitation with the obligor, the court shall
determine child care expenses based on an average monthly cost.
The amount allocated for child care expenses is considered child
support but is not subject to a cost-of-living adjustment under
section 518.641. The amount allocated for child care expenses
terminates when either party notifies the public authority that
the child care costs have ended and without any legal action on
the part of either party. The public authority shall verify the
information received under this provision before authorizing
termination. The termination is effective as of the date of the
notification. In other cases where there is a substantial
increase or decrease in child care expenses, the parties may
modify the order under section 518.64.
The court may allow the noncustodial parent to care for the
child while the custodial parent is working, as provided in
section 518.175, subdivision 8. Allowing the noncustodial
parent to care for the child under section 518.175, subdivision
8, is not a reason to deviate from the guidelines.
(c) In addition to the child support guidelines, the court
shall take into consideration the following factors in setting
or modifying child support or in determining whether to deviate
from the guidelines:
(1) all earnings, income, and resources of the parents,
including real and personal property, but excluding income from
excess employment of the obligor or obligee that meets the
criteria of paragraph (b), clause (2)(ii);
(2) the financial needs and resources, physical and
emotional condition, and educational needs of the child or
children to be supported;
(3) the standard of living the child would have enjoyed had
the marriage not been dissolved, but recognizing that the
parents now have separate households;
(4) which parent receives the income taxation dependency
exemption and what financial benefit the parent receives from
it;
(5) the parents' debts as provided in paragraph (d); and
(6) the obligor's receipt of public assistance under the
AFDC program formerly codified under sections 256.72 to 256.82
or 256B.01 to 256B.40 and chapter 256J or 256K.
(d) In establishing or modifying a support obligation, the
court may consider debts owed to private creditors, but only if:
(1) the right to support has not been assigned under
section 256.74 256.741;
(2) the court determines that the debt was reasonably
incurred for necessary support of the child or parent or for the
necessary generation of income. If the debt was incurred for
the necessary generation of income, the court shall consider
only the amount of debt that is essential to the continuing
generation of income; and
(3) the party requesting a departure produces a sworn
schedule of the debts, with supporting documentation, showing
goods or services purchased, the recipient of them, the amount
of the original debt, the outstanding balance, the monthly
payment, and the number of months until the debt will be fully
paid.
(e) Any schedule prepared under paragraph (d), clause (3),
shall contain a statement that the debt will be fully paid after
the number of months shown in the schedule, barring emergencies
beyond the party's control.
(f) Any further departure below the guidelines that is
based on a consideration of debts owed to private creditors
shall not exceed 18 months in duration, after which the support
shall increase automatically to the level ordered by the court.
Nothing in this section shall be construed to prohibit one or
more step increases in support to reflect debt retirement during
the 18-month period.
(g) If payment of debt is ordered pursuant to this section,
the payment shall be ordered to be in the nature of child
support.
(h) Nothing shall preclude the court from receiving
evidence on the above factors to determine if the guidelines
should be exceeded or modified in a particular case.
(i) The guidelines in this subdivision are a rebuttable
presumption and shall be used in all cases when establishing or
modifying child support. If the court does not deviate from the
guidelines, the court shall make written findings concerning the
amount of the obligor's income used as the basis for the
guidelines calculation and any other significant evidentiary
factors affecting the determination of child support. If the
court deviates from the guidelines, the court shall make written
findings giving the amount of support calculated under the
guidelines, the reasons for the deviation, and shall
specifically address the criteria in paragraph (c) and how the
deviation serves the best interest of the child. The court may
deviate from the guidelines if both parties agree and the court
makes written findings that it is in the best interests of the
child, except that in cases where child support payments are
assigned to the public agency under section 256.74 256.741, the
court may deviate downward only as provided in paragraph (j).
Nothing in this paragraph prohibits the court from deviating in
other cases. The provisions of this paragraph apply whether or
not the parties are each represented by independent counsel and
have entered into a written agreement. The court shall review
stipulations presented to it for conformity to the guidelines
and the court is not required to conduct a hearing, but the
parties shall provide the documentation of earnings required
under subdivision 5b.
(j) If the child support payments are assigned to the
public agency under section 256.74 256.741, the court may not
deviate downward from the child support guidelines unless the
court specifically finds that the failure to deviate downward
would impose an extreme hardship on the obligor.
(k) The dollar amount of the income limit for application
of the guidelines must be adjusted on July 1 of every
even-numbered year to reflect cost-of-living changes. The
supreme court shall select the index for the adjustment from the
indices listed in section 518.641. The state court
administrator shall make the changes in the dollar amount
required by this paragraph available to courts and the public on
or before April 30 of the year in which the amount is to change.
(l) In establishing or modifying child support, if a child
receives a child's insurance benefit under United States Code,
title 42, section 402, because the obligor is entitled to old
age or disability insurance benefits, the amount of support
ordered shall be offset by the amount of the child's benefit.
The court shall make findings regarding the obligor's income
from all sources, the child support amount calculated under this
section, the amount of the child's benefit, and the obligor's
child support obligation. Any benefit received by the child in
a given month in excess of the child support obligation shall
not be treated as an arrearage payment or a future payment.
Sec. 137. Minnesota Statutes 1998, section 518.57,
subdivision 3, is amended to read:
Subd. 3. [SATISFACTION OF CHILD SUPPORT OBLIGATION.] The
court may conclude that an obligor has satisfied a child support
obligation by providing a home, care, and support for the child
while the child is living with the obligor, if the court finds
that the child was integrated into the family of the obligor
with the consent of the obligee and child support payments were
not assigned to the public agency under section 256.74 or
256.741.
Sec. 138. Minnesota Statutes 1998, section 518.614,
subdivision 3, is amended to read:
Subd. 3. [DUTIES OF PUBLIC AUTHORITY.] Within three
working days of receipt of sums released under subdivision 2,
the public authority shall remit to the obligee all amounts not
assigned under section 256.74 256.741 as current support or
maintenance. The public authority shall also serve a copy of
the court's order and the provisions of section 518.6111 and
this section on the obligor's employer or other payor of funds
unless within 15 days after mailing of the notice of intent to
implement income withholding the obligor requests a hearing on
the issue of whether payment was in default as of the date of
the notice of default and serves notice of the request for
hearing on the public authority and the obligee. The public
authority shall instruct the employer or payor of funds pursuant
to section 518.6111 as to the effective date on which the next
support or maintenance payment is due. The withholding process
must begin on said date and shall reflect the total credits of
principal and interest amounts received from the escrow account.
Sec. 139. Minnesota Statutes 1998, section 518.64,
subdivision 2, is amended to read:
Subd. 2. [MODIFICATION.] (a) The terms of an order
respecting maintenance or support may be modified upon a showing
of one or more of the following: (1) substantially increased or
decreased earnings of a party; (2) substantially increased or
decreased need of a party or the child or children that are the
subject of these proceedings; (3) receipt of assistance
under the AFDC program formerly codified under sections 256.72
to 256.87 or 256B.01 to 256B.40, or chapter 256J or 256K; (4) a
change in the cost of living for either party as measured by the
federal bureau of statistics, any of which makes the terms
unreasonable and unfair; (5) extraordinary medical expenses of
the child not provided for under section 518.171; or (6) the
addition of work-related or education-related child care
expenses of the obligee or a substantial increase or decrease in
existing work-related or education-related child care expenses.
On a motion to modify support, the needs of any child the
obligor has after the entry of the support order that is the
subject of a modification motion shall be considered as provided
by section 518.551, subdivision 5f.
(b) It is presumed that there has been a substantial change
in circumstances under paragraph (a) and the terms of a current
support order shall be rebuttably presumed to be unreasonable
and unfair if:
(1) the application of the child support guidelines in
section 518.551, subdivision 5, to the current circumstances of
the parties results in a calculated court order that is at least
20 percent and at least $50 per month higher or lower than the
current support order;
(2) the medical support provisions of the order established
under section 518.171 are not enforceable by the public
authority or the custodial parent;
(3) health coverage ordered under section 518.171 is not
available to the child for whom the order is established by the
parent ordered to provide; or
(4) the existing support obligation is in the form of a
statement of percentage and not a specific dollar amount.
(c) On a motion for modification of maintenance, including
a motion for the extension of the duration of a maintenance
award, the court shall apply, in addition to all other relevant
factors, the factors for an award of maintenance under section
518.552 that exist at the time of the motion. On a motion for
modification of support, the court:
(1) shall apply section 518.551, subdivision 5, and shall
not consider the financial circumstances of each party's spouse,
if any; and
(2) shall not consider compensation received by a party for
employment in excess of a 40-hour work week, provided that the
party demonstrates, and the court finds, that:
(i) the excess employment began after entry of the existing
support order;
(ii) the excess employment is voluntary and not a condition
of employment;
(iii) the excess employment is in the nature of additional,
part-time employment, or overtime employment compensable by the
hour or fractions of an hour;
(iv) the party's compensation structure has not been
changed for the purpose of affecting a support or maintenance
obligation;
(v) in the case of an obligor, current child support
payments are at least equal to the guidelines amount based on
income not excluded under this clause; and
(vi) in the case of an obligor who is in arrears in child
support payments to the obligee, any net income from excess
employment must be used to pay the arrearages until the
arrearages are paid in full.
(d) A modification of support or maintenance may be made
retroactive only with respect to any period during which the
petitioning party has pending a motion for modification but only
from the date of service of notice of the motion on the
responding party and on the public authority if public
assistance is being furnished or the county attorney is the
attorney of record. However, modification may be applied to an
earlier period if the court makes express findings that:
(1) the party seeking modification was precluded from
serving a motion by reason of a significant physical or mental
disability, a material misrepresentation of another party, or
fraud upon the court and that the party seeking modification,
when no longer precluded, promptly served a motion;
(2) the party seeking modification was a recipient of
federal Supplemental Security Income (SSI), Title II Older
Americans, Survivor's Disability Insurance (OASDI), other
disability benefits, or public assistance based upon need during
the period for which retroactive modification is sought; or
(3) the order for which the party seeks amendment was
entered by default, the party shows good cause for not
appearing, and the record contains no factual evidence, or
clearly erroneous evidence regarding the individual obligor's
ability to pay.
The court may provide that a reduction in the amount
allocated for child care expenses based on a substantial
decrease in the expenses is effective as of the date the
expenses decreased.
(e) Except for an award of the right of occupancy of the
homestead, provided in section 518.63, all divisions of real and
personal property provided by section 518.58 shall be final, and
may be revoked or modified only where the court finds the
existence of conditions that justify reopening a judgment under
the laws of this state, including motions under section 518.145,
subdivision 2. The court may impose a lien or charge on the
divided property at any time while the property, or subsequently
acquired property, is owned by the parties or either of them,
for the payment of maintenance or support money, or may
sequester the property as is provided by section 518.24.
(f) The court need not hold an evidentiary hearing on a
motion for modification of maintenance or support.
(g) Section 518.14 shall govern the award of attorney fees
for motions brought under this subdivision.
Sec. 140. Minnesota Statutes 1998, section 548.13, is
amended to read:
548.13 [ASSIGNMENT OF JUDGMENT; MODE AND EFFECT.]
Every assignment of a judgment shall be in writing, signed
and acknowledged by the assignor, except that written notice of
assignment shall be sufficient in the case of assignment under
section 256.74 256.741. No assignment shall be valid as against
a subsequent purchaser of the judgment in good faith for value,
or against a creditor levying upon or attaching the same, unless
it is filed with the court administrator and an entry is made in
the docket. When filed and entered, no one but the assignee,
the assignee's agent, or attorney, shall be authorized to
collect or enforce the judgment; provided, that the lien of an
attorney on the judgment shall not be affected by the assignment.
Sec. 141. Minnesota Statutes 1998, section 550.136,
subdivision 6, is amended to read:
Subd. 6. [EARNINGS EXEMPTION NOTICE.] Before the first
levy on earnings under this chapter, the judgment creditor shall
serve upon the judgment debtor no less than ten days before the
service of the writ of execution, a notice that the writ of
execution may be served on the judgment debtor's employer. The
notice must: (1) be substantially in the form set forth below;
(2) be served personally, in the manner of a summons and
complaint, or by first class mail to the last known address of
the judgment debtor; (3) inform the judgment debtor that an
execution levy may be served on the judgment debtor's employer
in ten days, and that the judgment debtor may, within that time,
cause to be served on the judgment creditor a signed statement
under penalties of perjury asserting an entitlement to an
exemption from execution; (4) inform the judgment debtor of the
earnings exemptions contained in section 550.37, subdivision 14;
and (5) advise the judgment debtor of the relief set forth in
this chapter to which the debtor may be entitled if a judgment
creditor in bad faith disregards a valid claim and the fee,
costs, and penalty that may be assessed against a judgment
debtor who in bad faith falsely claims an exemption or in bad
faith takes action to frustrate the execution process. The
notice requirement of this subdivision does not apply to a levy
on earnings being retained by an employer pursuant to a
garnishment previously served in compliance with chapter 571.
The ten-day notice informing a judgment debtor that a writ
of execution may be used to levy the earnings of an individual
must be substantially in the following form:
STATE OF MINNESOTA DISTRICT COURT
COUNTY OF ............. ........... JUDICIAL DISTRICT
.............(Judgment Creditor)
against
EXECUTION EXEMPTION
.............(Judgment Debtor) NOTICE AND NOTICE OF
and INTENT TO LEVY ON EARNINGS
WITHIN TEN DAYS
.............(Third Party)
PLEASE TAKE NOTICE that a levy may be served upon your
employer or other third parties, without any further court
proceedings or notice to you, ten days or more from the date
hereof. Your earnings are completely exempt from execution levy
if you are now a recipient of relief based on need, if you have
been a recipient of relief within the last six months, or if you
have been an inmate of a correctional institution in the last
six months.
Relief based on need includes Aid to Families with
Dependent Children (AFDC), AFDC-Emergency Assistance (AFDC-EA)
Minnesota family investment program, Emergency Assistance (EA),
work first, Medical Assistance (MA), General Assistance (GA),
General Assistance Medical Care (GAMC), Emergency General
Assistance (EGA), Work Readiness, Minnesota Supplemental Aid
(MSA), MSA Emergency Assistance (MSA-EA), Supplemental Security
Income (SSI), and Energy Assistance.
If you wish to claim an exemption, you should fill out the
appropriate form below, sign it, and send it to the judgment
creditor's attorney.
You may wish to contact the attorney for the judgment
creditor in order to arrange for a settlement of the debt or
contact an attorney to advise you about exemptions or other
rights.
PENALTIES
(1) Be advised that even if you claim an exemption, an
execution levy may still be served on your employer. If
your earnings are levied on after you claim an exemption,
you may petition the court for a determination of your
exemption. If the court finds that the judgment creditor
disregarded your claim of exemption in bad faith, you will
be entitled to costs, reasonable attorney fees, actual
damages, and an amount not to exceed $100.
(2) HOWEVER, BE WARNED if you claim an exemption, the
judgment creditor can also petition the court for a
determination of your exemption, and if the court finds
that you claimed an exemption in bad faith, you will be
assessed costs and reasonable attorney's fees plus an
amount not to exceed $100.
(3) If after receipt of this notice, you in bad faith take
action to frustrate the execution levy, thus requiring the
judgment creditor to petition the court to resolve the
problem, you will be liable to the judgment creditor for
costs and reasonable attorney's fees plus an amount not to
exceed $100.
DATED: ............ ........................
(Attorney for Judgment Creditor)
........................
Address
........................
Telephone
JUDGMENT DEBTOR'S EXEMPTION CLAIM NOTICE
I hereby claim that my earnings are exempt from execution
because:
(1) I am presently a recipient of relief based on need.
(Specify the program, case number, and the county from
which relief is being received.)
................ ...................... ...............
Program Case Number (if known) County
(2) I am not now receiving relief based on need, but I have
received relief based on need within the last six months.
(Specify the program, case number, and the county from
which relief has been received.)
................ ...................... ...............
Program Case Number (if known) County
(3) I have been an inmate of a correctional institution
within the last six months. (Specify the correctional
institution and location.)
........................... ..........................
Correctional Institution Location
I hereby authorize any agency that has distributed relief
to me or any correctional institution in which I was an inmate
to disclose to the above-named judgment creditor or the judgment
creditor's attorney only whether or not I am or have been a
recipient of relief based on need or an inmate of a correctional
institution within the last six months. I have mailed or
delivered a copy of this form to the judgment creditor or
judgment creditor's attorney.
........................... .........................
Debtor
.........................
Address
Sec. 142. Minnesota Statutes 1998, section 550.143,
subdivision 3, is amended to read:
Subd. 3. [EXEMPTION NOTICE.] If the levy is on funds of a
judgment debtor who is a natural person and if the funds to be
levied are held on deposit at any financial institution, the
judgment creditor or its attorney shall provide the sheriff with
two copies of an exemption notice, which must be substantially
in the form set forth below. The sheriff shall serve both
copies of the exemption notice on the financial institution,
along with the writ of execution. Failure of the sheriff to
serve the exemption notices renders the levy void, and the
financial institution shall take no action. However, if this
subdivision is being used to execute on funds that have
previously been garnished in compliance with section 571.71, the
judgment creditor is not required to serve additional exemption
notices. In that event, the execution levy shall only be
effective as to the funds that were subject to the prior
garnishment. Upon receipt of the writ of execution and
exemption notices, the financial institution shall retain as
much of the amount due under section 550.04 as the financial
institution has on deposit owing to the judgment debtor, but not
more than 110 percent of the amount remaining due on the
judgment.
STATE OF MINNESOTA DISTRICT COURT
COUNTY OF ................ .......... JUDICIAL DISTRICT
.............(Judgment Creditor)
.............(Judgment Debtor)
TO: Debtor EXEMPTION NOTICE
An order for attachment, garnishment summons, or levy of
execution (strike inapplicable language) has been served on
............. (Bank or other financial institution where you
have an account.)
Your account balance is $........
The amount being held is $........
However, all or a portion of the funds in your account will
normally be exempt from creditors' claims if they are in one of
the following categories:
(1) relief based on need. This includes: Aid to Families
with Dependent Children (AFDC), AFDC-Emergency Assistance
(AFDC-EA) the Minnesota family investment program, Emergency
Assistance (EA), work first program, Medical Assistance (MA),
General Assistance (GA), General Assistance Medical Care (GAMC),
Emergency General Assistance (EGA), Work Readiness, Minnesota
Supplemental Aid (MSA), MSA Emergency Assistance (MSA-EA),
Supplemental Security Income (SSI), and Energy Assistance;
(2) Social Security benefits (Old Age, Survivors, or
Disability Insurance);
(3) reemployment insurance, workers' compensation, or
veterans' benefits;
(4) an accident, disability, or retirement pension or
annuity;
(5) life insurance proceeds;
(6) the earnings of your minor child and any child support
paid to you; or
(7) money from a claim for damage or destruction of exempt
property (such as household goods, farm tools, business
equipment, a mobile home, or a car).
The following funds are also exempt:
(8) all earnings of a person in category (1);
(9) all earnings of a person who has received relief based
on need, or who has been an inmate of a correctional
institution, within the last six months;
(10) 75 percent of every debtor's after tax earnings; and
(11) all of a judgment debtor's after tax earnings below 40
times the federal minimum wage.
TIME LIMIT ON EXEMPTIONS AFTER DEPOSIT IN BANK:
Categories (10) and (11): 20 days
Categories (8) and (9): 60 days
All others: no time limit, as long as funds are traceable
to the exempt source. (In tracing funds, the first-in,
first-out method is used. This means money deposited first is
spent first.) The money being sought by the judgment creditor
is being held in your account to give you a chance to claim an
exemption.
TO CLAIM AN EXEMPTION:
Fill out, sign, and mail or deliver one copy of the
attached exemption claim form to the institution which sent you
this notice and mail or deliver one copy to the judgment
creditor's attorney. In the event that there is no attorney for
the judgment creditor, then the notice shall be sent directly to
the judgment creditor. The address for the judgment creditor's
attorney or the judgment creditor is set forth below. Both
copies must be mailed or delivered on the same day.
If the financial institution does not get the exemption
claim back from you within 14 days of the date they mailed or
gave it to you, they will be free to turn the money over to the
sheriff or the judgment creditor. If you are going to claim an
exemption, do so as soon as possible, because your money may be
held until it is decided.
IF YOU CLAIM AN EXEMPTION:
(1) nonexempt money can be turned over to the judgment
creditor or sheriff;
(2) the financial institution will keep holding the money
claimed to be exempt; and
(3) seven days after receiving your exemption claim, the
financial institution will release the money to you unless
before then it receives an objection to your exemption claim.
IF THE JUDGMENT CREDITOR OBJECTS TO YOUR EXEMPTION CLAIM:
the institution will hold the money until a court decides
if your exemption claim is valid, BUT ONLY IF the institution
gets a copy of your court motion papers asserting the exemption
WITHIN TEN DAYS after the objection is mailed or given to you.
You may wish to consult an attorney at once if the creditor
objects to your exemption claim.
MOTION TO DETERMINE EXEMPTION:
At any time after your funds have been held, you may ask
for a court decision on the validity of your exemption claim by
filing a request for hearing which may be obtained at the office
of the court administrator of the above court.
PENALTIES:
If you claim an exemption in bad faith, or if the judgment
creditor wrongly objects to an exemption in bad faith, the court
may order the person who acted in bad faith to pay costs, actual
damages, attorney fees, and an additional amount of up to $100.
.............................
.............................
.............................
.............................
Name and address of (Attorney
for) Judgment Creditor
EXEMPTION:
(a) Amount of exemption claim.
/ / I claim ALL the funds being held are exempt.
/ / I claim SOME of the funds being held are exempt.
The exempt amount is $............
(b) Basis for exemption.
Of the 11 categories listed above, I am in category number
............ (If more than one category applies, you may fill
in as many as apply.) The source of the exempt funds is the
following:
.............................................................
.............................................................
.............................................................
(If the source is a type of relief based on need, list the
case number and county:
case number: ...............;
county: ....................)
I hereby authorize any agency that has distributed relief
to me or any correctional institution in which I was an inmate
to disclose to the above named creditor or its attorney only
whether or not I am or have been a recipient of relief based on
need or an inmate of a correctional institute within the last
six months.
I have mailed or delivered a copy of the exemption notice
to the judgment creditor or judgment creditor's attorney if
represented.
.............................
DEBTOR
DATED: ............. .............................
.............................
.............................
DEBTOR ADDRESS
Sec. 143. Minnesota Statutes 1998, section 550.37,
subdivision 14, is amended to read:
Subd. 14. [PUBLIC ASSISTANCE.] All relief based on need,
and the earnings or salary of a person who is a recipient of
relief based on need, shall be exempt from all claims of
creditors including any contractual setoff or security interest
asserted by a financial institution. For the purposes of this
chapter, relief based on need includes AFDC, MFIP, MFIP-R,
MFIP-S, work first, general assistance medical care,
supplemental security income, medical assistance, Minnesota
supplemental assistance, and general assistance. The salary or
earnings of any debtor who is or has been an eligible recipient
of relief based on need, or an inmate of a correctional
institution shall, upon the debtor's return to private
employment or farming after having been an eligible recipient of
relief based on need, or an inmate of a correctional
institution, be exempt from attachment, garnishment, or levy of
execution for a period of six months after the debtor's return
to employment or farming and after all public assistance for
which eligibility existed has been terminated. The exemption
provisions contained in this subdivision also apply for 60 days
after deposit in any financial institution, whether in a single
or joint account. In tracing the funds, the first-in first-out
method of accounting shall be used. The burden of establishing
that funds are exempt rests upon the debtor. Agencies
distributing relief and the correctional institutions shall, at
the request of creditors, inform them whether or not any debtor
has been an eligible recipient of relief based on need, or an
inmate of a correctional institution, within the preceding six
months.
Sec. 144. Minnesota Statutes 1998, section 551.05,
subdivision 1a, is amended to read:
Subd. 1a. [EXEMPTION NOTICE.] If the writ of execution is
being used by the attorney to levy funds of a judgment debtor
who is a natural person and if the funds to be levied are held
on deposit at any financial institution, the attorney for the
judgment creditor shall serve with the writ of execution two
copies of an exemption notice. The notice must be substantially
in the form set forth below. Failure of the attorney for the
judgment creditor to send the exemption notice renders the
execution levy void, and the financial institution shall take no
action. However, if this subdivision is being used to execute
on funds that have previously been garnished in compliance with
section 571.71, the attorney for judgment creditor is not
required to serve an additional exemption notice. In that
event, the execution levy shall only be effective as to the
funds that were subject to the prior garnishment. Upon receipt
of the writ of execution and exemption notices, the financial
institution shall retain as much of the amount due under section
550.04 as the financial institution has on deposit owing to the
judgment debtor, but not more than 100 percent of the amount
remaining due on the judgment, or $5,000, whichever is less.
The notice informing a judgment debtor that an execution
levy has been used to attach funds of the judgment debtor to
satisfy a claim must be substantially in the following form:
STATE OF MINNESOTA DISTRICT COURT
County of ................ .........JUDICIAL DISTRICT
................(Judgment Creditor)
................(Judgment Debtor)
TO: Judgment Debtor EXEMPTION NOTICE
An order for attachment, garnishment summons, or levy of
execution (strike inapplicable language) has been served on
............. (bank or other financial institution where you
have an account).
Your account balance is $........
The amount being held is $........
However, all or a portion of the funds in your account will
normally be exempt from creditors' claims if they are in one of
the following categories:
(1) relief based on need. This includes: Aid to Families
with Dependent Children (AFDC), AFDC-Emergency Assistance
(AFDC-EA) the Minnesota family investment program (MFIP), work
first program, Medical Assistance (MA), General Assistance (GA),
General Assistance Medical Care (GAMC), Emergency General
Assistance (EGA), Work Readiness, Minnesota Supplemental Aid
(MSA), MSA Emergency Assistance (MSA-EA), Supplemental Security
Income (SSI), and Energy Assistance;
(2) Social Security benefits (Old Age, Survivors, or
Disability Insurance);
(3) reemployment insurance, workers' compensation, or
veterans' benefits;
(4) an accident, disability, or retirement pension or
annuity;
(5) life insurance proceeds;
(6) the earnings of your minor child and any child support
paid to you; or
(7) money from a claim for damage or destruction of exempt
property (such as household goods, farm tools, business
equipment, a mobile home, or a car).
The following funds are also exempt:
(8) all earnings of a person in category (1);
(9) all earnings of a person who has received relief based
on need, or who has been an inmate of a correctional
institution, within the last six months;
(10) 75 percent of every judgment debtor's after tax
earnings; or
(11) all of a judgment debtor's after tax earnings below 40
times the federal minimum wage.
TIME LIMIT ON EXEMPTIONS AFTER DEPOSIT IN BANK:
Categories (10) and (11): 20 days
Categories (8) and (9): 60 days
All others: no time limit, as long as funds are traceable
to the exempt source. (In tracing funds, the first-in,
first-out method is used. This means money deposited first is
spent first.) The money being sought by the judgment creditor
is being held in your account to give you a chance to claim an
exemption.
TO CLAIM AN EXEMPTION:
Fill out, sign, and mail or deliver one copy of the
attached exemption claim form to the institution which sent you
this notice and mail or deliver one copy to the judgment
creditor's attorney. The address for the judgment creditor's
attorney is set forth below. Both copies must be mailed or
delivered on the same day.
If they do not get the exemption claim back from you within
14 days of the date they mailed or gave it to you, they will be
free to turn the money over to the attorney for the judgment
creditor. If you are going to claim an exemption, do so as soon
as possible, because your money may be held until it is decided.
IF YOU CLAIM AN EXEMPTION:
(1) nonexempt money can be turned over to the judgment
creditor or sheriff;
(2) the financial institution will keep holding the money
claimed to be exempt; and
(3) seven days after receiving your exemption claim, the
financial institution will release the money to you unless
before then it receives an objection to your exemption claim.
IF THE JUDGMENT CREDITOR OBJECTS TO YOUR EXEMPTION CLAIM:
the institution will hold the money until a court decides
if your exemption claim is valid, BUT ONLY IF the institution
gets a copy of your court motion papers asserting the exemption
WITHIN TEN DAYS after the objection is mailed or given to you.
You may wish to consult an attorney at once if the judgment
creditor objects to your exemption claim.
MOTION TO DETERMINE EXEMPTION:
At any time after your funds have been held, you may ask
for a court decision on the validity of your exemption claim by
filing a request for hearing which may be obtained at the office
of the court administrator of the above court.
PENALTIES:
If you claim an exemption in bad faith, or if the judgment
creditor wrongly objects to an exemption in bad faith, the court
may order the person who acted in bad faith to pay costs, actual
damages, attorney fees, and an additional amount of up to $100.
.............................
.............................
.............................
.............................
Name and address of (Attorney
for) Judgment Creditor
EXEMPTION:
(a) Amount of exemption claim.
/ / I claim ALL the funds being held are exempt.
/ / I claim SOME of the funds being held are exempt.
The exempt amount is $............
(b) Basis for exemption.
Of the 11 categories listed above, I am in category number
............ (If more than one category applies, you may fill
in as many as apply.) The source of the exempt funds is the
following:
.............................................................
.............................................................
.............................................................
(If the source is a type of relief based on need, list the
case number and county:
case number: ...............;
county: ....................)
I hereby authorize any agency that has distributed relief
to me or any correctional institution in which I was an inmate
to disclose to the above named judgment creditor's attorney only
whether or not I am or have been a recipient of relief based on
need or an inmate of a correctional institute within the last
six months.
I have mailed or delivered a copy of the exemption notice
to the judgment creditor's attorney.
.............................
DEBTOR
DATED: ............. .............................
.............................
.............................
DEBTOR ADDRESS
Sec. 145. Minnesota Statutes 1998, section 551.06,
subdivision 6, is amended to read:
Subd. 6. [EARNINGS EXEMPTION NOTICE.] Before the first
levy on earnings, the attorney for the judgment creditor shall
serve upon the judgment debtor no less than ten days before the
service of the writ of execution, a notice that the writ of
execution may be served on the judgment debtor's employer. The
notice must: (1) be substantially in the form set forth below;
(2) be served personally, in the manner of a summons and
complaint, or by first class mail to the last known address of
the judgment debtor; (3) inform the judgment debtor that an
execution levy may be served on the judgment debtor's employer
in ten days, and that the judgment debtor may, within that time,
cause to be served on the judgment creditor's attorney a signed
statement under penalties of perjury asserting an entitlement to
an exemption from execution; (4) inform the judgment debtor of
the earnings exemptions contained in section 550.37, subdivision
14; and (5) advise the judgment debtor of the relief set forth
in this chapter to which the judgment debtor may be entitled if
a judgment creditor in bad faith disregards a valid claim and
the fee, costs, and penalty that may be assessed against a
judgment debtor who in bad faith falsely claims an exemption or
in bad faith takes action to frustrate the execution process.
The notice requirement of this subdivision does not apply to a
levy on earnings being held by an employer pursuant to a
garnishment summons served in compliance with chapter 571.
The ten-day notice informing a judgment debtor that a writ
of execution may be used to levy the earnings of an individual
must be substantially in the following form:
STATE OF MINNESOTA DISTRICT COURT
COUNTY OF ............. ........... JUDICIAL DISTRICT
............(Judgment Creditor)
against
EXECUTION EXEMPTION
NOTICE AND NOTICE OF
............(Judgment Debtor) INTENT TO LEVY ON EARNINGS
and WITHIN TEN DAYS
............(Third Party)
PLEASE TAKE NOTICE that a levy may be served upon your
employer or other third parties, without any further court
proceedings or notice to you, ten days or more from the date
hereof. Your earnings are completely exempt from execution levy
if you are now a recipient of relief based on need, if you have
been a recipient of relief within the last six months, or if you
have been an inmate of a correctional institution in the last
six months.
Relief based on need includes Aid to Families with
Dependent Children (AFDC), AFDC-Emergency Assistance
(AFDC-EA) the Minnesota family investment program (MFIP),
Emergency Assistance (EA), work first program, Medical
Assistance (MA), General Assistance (GA), General Assistance
Medical Care (GAMC), Emergency General Assistance (EGA), Work
Readiness, Minnesota Supplemental Aid (MSA), MSA Emergency
Assistance (MSA-EA), Supplemental Security Income (SSI), and
Energy Assistance.
If you wish to claim an exemption, you should fill out the
appropriate form below, sign it, and send it to the judgment
creditor's attorney.
You may wish to contact the attorney for the judgment
creditor in order to arrange for a settlement of the debt or
contact an attorney to advise you about exemptions or other
rights.
PENALTIES
(1) Be advised that even if you claim an exemption, an
execution levy may still be served on your employer. If
your earnings are levied on after you claim an exemption,
you may petition the court for a determination of your
exemption. If the court finds that the judgment creditor
disregarded your claim of exemption in bad faith, you will
be entitled to costs, reasonable attorney fees, actual
damages, and an amount not to exceed $100.
(2) HOWEVER, BE WARNED if you claim an exemption, the
judgment creditor can also petition the court for a
determination of your exemption, and if the court finds
that you claimed an exemption in bad faith, you will be
assessed costs and reasonable attorney's fees plus an
amount not to exceed $100.
(3) If after receipt of this notice, you in bad faith take
action to frustrate the execution levy, thus requiring the
judgment creditor to petition the court to resolve the
problem, you will be liable to the judgment creditor for
costs and reasonable attorney's fees plus an amount not to
exceed $100.
DATED: ............ ........................
(Attorney for Judgment Creditor)
........................
Address
........................
Telephone
JUDGMENT DEBTOR'S EXEMPTION CLAIM NOTICE
I hereby claim that my earnings are exempt from execution
because:
(1) I am presently a recipient of relief based on need.
(Specify the program, case number, and the county from
which relief is being received.)
................ ...................... ...............
Program Case Number (if known) County
(2) I am not now receiving relief based on need, but I have
received relief based on need within the last six months.
(Specify the program, case number, and the county from
which relief has been received.)
................ ...................... ...............
Program Case Number (if known) County
(3) I have been an inmate of a correctional institution
within the last six months. (Specify the correctional
institution and location.)
........................... ..........................
Correctional Institution Location
I hereby authorize any agency that has distributed relief
to me or any correctional institution in which I was an inmate
to disclose to the above-named judgment creditor or the judgment
creditor's attorney only whether or not I am or have been a
recipient of relief based on need or an inmate of a correctional
institution within the last six months. I have mailed or
delivered a copy of this form to the creditor or creditor's
attorney.
DATE: ..................... .........................
Judgment Debtor
.........................
Address
Sec. 146. Minnesota Statutes 1998, section 570.025,
subdivision 6, is amended to read:
Subd. 6. [NOTICE.] The respondent shall be served with a
copy of the preliminary attachment order issued pursuant to this
section together with a copy of all pleadings and other
documents not previously served, including any affidavits upon
which the claimant intends to rely at the subsequent hearing and
a transcript of any oral testimony given at the preliminary
hearing upon which the claimant intends to rely and a notice of
hearing. Service shall be in the manner prescribed for personal
service of a summons unless that service is impracticable or
would be ineffective and the court prescribes an alternative
method of service calculated to provide actual notice to the
respondent.
The notice of hearing served upon the respondent shall be
signed by claimant or the attorney for claimant and shall
provide, at a minimum, the following information in
substantially the following language:
NOTICE OF HEARING
To: (the respondent)
The (insert name of court) Court has ordered the sheriff to
seize some of your property. The court has directed the sheriff
to seize the following specific property: (insert list of
property). (List other action taken by the court). Some of
your property may be exempt from seizure. See the exemption
notice below.
The Court issued this Order based upon the claim of (insert
name of claimant) that (insert name of claimant) is entitled to
a court order for seizure of your property to secure your
payment of any money judgment that (insert name of claimant) may
later be obtained against you and that immediate action was
necessary.
You have the legal right to challenge (insert name of
claimant) claims at a court hearing before a judge. The hearing
will be held at the (insert place) on (insert date) at (insert
time). You may attend the court hearing alone or with an
attorney. After you have presented your side of the matter, the
court will decide what should be done with your property until
the lawsuit against you is finally decided.
IF YOU DO NOT ATTEND THIS HEARING, THE COURT MAY ORDER THE
SHERIFF TO KEEP PROPERTY THAT HAS BEEN SEIZED.
EXEMPTION NOTICE
An order of attachment is being served upon you. Some of
your property is exempt and cannot be seized. The following is
a list of some of the more common exemptions. It is not
complete and is subject to section 550.37, and other state and
federal laws. If you have questions about an exemption, you
should obtain competent legal advice.
1. A homestead or the proceeds from the sale of a
homestead.
2. Household furniture, appliances, phonographs, radios,
and televisions up to a total current value of $4,500 at the
time of attachment.
3. A manufactured (mobile) home used as your home.
4. One motor vehicle currently worth less than $2,000
after deducting any security interests.
5. Farm machinery used by someone principally engaged in
farming, or tools, machines, or office furniture used in your
business or trade. This exemption is limited to $5,000.
6. Relief based on need. This includes Aid to Families
with Dependent Children (AFDC) Minnesota family investment
program, Emergency Assistance (EA), work first program,
Supplemental Security Income (SSI), Minnesota Supplemental
Assistance, and General Assistance.
7. Social Security benefits.
8. Reemployment insurance, workers' compensation, or
veterans' benefits.
9. An accident disability or retirement pension or annuity.
10. Life insurance proceeds or the earnings of your minor
child and any child support paid to you.
11. Money from a claim for damage or destruction of exempt
property (such as household goods, farm tools, business
equipment, a manufactured (mobile) home, or a car).
Sec. 147. Minnesota Statutes 1998, section 570.026,
subdivision 2, is amended to read:
Subd. 2. [SERVICE.] The claimant's motion to obtain an
order of attachment together with the claimant's affidavit and
notice of hearing shall be served in the manner prescribed for
service of a summons in a civil action in district court unless
that service is impracticable or would be ineffective and the
court prescribes an alternative method of service calculated to
provide actual notice to the respondent. If the respondent has
already appeared in the action, the motion shall be served in
the manner prescribed for service of pleadings subsequent to the
summons. The date of hearing shall be fixed in accordance with
Rule 6 of the Minnesota Rules of Civil Procedure, unless a
different date is fixed by order of the court.
The notice of hearing served upon the respondent shall be
signed by the claimant or the attorney for the claimant and
shall provide, at a minimum, the following information in
substantially the following language:
NOTICE OF HEARING
TO: (the respondent)
A hearing will be held (insert place) on (insert date) at
(insert time) to determine whether the sheriff shall seize
nonexempt property belonging to you to secure a judgment that
may be entered against you.
You may attend the court hearing alone or with an
attorney. After you have presented your side of the matter, the
court will decide what should be done with your property until
the lawsuit which has been commenced against you is finally
decided.
If the court directs the sheriff to seize and secure the
property while the lawsuit is pending, you may still keep the
property until the lawsuit is decided if you file a bond in an
amount set by the court.
IF YOU DO NOT ATTEND THIS HEARING, THE COURT MAY ORDER YOUR
NONEXEMPT PROPERTY TO BE SEIZED.
EXEMPTION NOTICE
Some of your property is exempt and cannot be attached.
The following is a list of some of the more common exemptions.
It is not complete and is subject to section 550.37, and other
state and federal laws. If you have questions about an
exemption you should obtain competent legal advice.
1. A homestead or the proceeds from the sale of a
homestead.
2. Household furniture, appliances, phonographs, radios,
and televisions up to a total current value of $4,500 at the
time of attachment.
3. A manufactured (mobile) home used as your home.
4. One motor vehicle currently worth less than $2,000
after deducting any security interests.
5. Farm machinery used by someone principally engaged in
farming, or tools, machines, or office furniture used in your
business or trade. This exemption is limited to $5,000.
6. Relief based on need. This includes Aid to Families
with Dependent Children (AFDC) Minnesota family investment
program, Emergency Assistance (EA), work first program,
Supplemental Security Income (SSI), Minnesota Supplemental
Assistance, and General Assistance.
7. Social Security benefits.
8. Reemployment insurance, workers' compensation, or
veterans' benefits.
9. An accident disability or retirement pension or annuity.
10. Life insurance proceeds or the earnings of your minor
child and any child support paid to you.
11. Money from a claim for damage or destruction of exempt
property (such as household goods, farm tools, business
equipment, a manufactured (mobile) home, or a car).
Sec. 148. Minnesota Statutes 1998, section 571.72,
subdivision 8, is amended to read:
Subd. 8. [EXEMPTION NOTICE.] In every garnishment where
the debtor is a natural person, the debtor shall be provided
with a garnishment exemption notice. If the creditor is
garnishing earnings, the earnings exemption notice provided in
section 571.924 must be served ten or more days before the
service of the first garnishment summons. If the creditor is
garnishing funds in a financial institution, the exemption
notice provided in section 571.912 must be served with the
garnishment summons. In all other cases, the exemption notice
must be in the following form and served on the debtor with a
copy of the garnishment summons.
STATE OF MINNESOTA DISTRICT COURT
COUNTY OF .................. ............JUDICIAL DISTRICT
.................(Creditor)
against
.................(Debtor) EXEMPTION NOTICE
and
.................(Garnishee)
A Garnishment Summons is being served upon you. Some of
your property may be exempt and cannot be garnished. The
following is a list of some of the more common exemptions. It
is not complete and is subject to section 550.37 of the
Minnesota Statutes and other state and federal laws. The dollar
amounts contained in this list are subject to the provisions of
section 550.37, subdivision 4a, at the time of garnishment. If
you have questions about an exemption, you should obtain legal
advice.
(1) a homestead or the proceeds from the sale of a
homestead;
(2) household furniture, appliances, phonographs, radios,
and televisions up to a total current value of $5,850;
(3) a manufactured (mobile) home used as your home;
(4) one motor vehicle currently worth less than $2,600
after deducting any security interest;
(5) farm machinery used by an individual principally
engaged in farming, or tools, machines, or office furniture used
in your business or trade. This exemption is limited to
$13,000;
(6) relief based on need. This includes:
(i) Aid to Families with Dependent Children
(AFDC) Minnesota family investment program (MFIP) and work first
program;
(ii) AFDC-Emergency Assistance (AFDC-EA);
(iii) Medical Assistance (MA);
(iv) (iii) General Assistance (GA);
(v) (iv) General Assistance Medical Care (GAMC);
(vi) (v) Emergency General Assistance (EGA);
(vii) (vi) Work Readiness, Minnesota Supplemental AID
(MSA);
(viii) (vii) MSA-Emergency Assistance (MSA-EA);
(ix) (viii) Supplemental Security Income (SSI); and
(x) (ix) Energy Assistance; and
(x) Emergency Assistance (EA);
(7) social security benefits;
(8) reemployment insurance, workers' compensation, or
veteran's benefits;
(9) an accident, disability, or retirement pension or
annuity;
(10) life insurance proceeds;
(11) earnings of your minor child; and
(12) money from a claim for damage or destruction of exempt
property (such as household goods, farm tools, business
equipment, a manufactured (mobile) home, or a car).
Sec. 149. Minnesota Statutes 1998, section 571.912, is
amended to read:
571.912 [FORM OF EXEMPTION NOTICE.]
The notice informing a debtor that an order for attachment,
garnishment summons, or levy by execution has been used to
attach funds of the debtor to satisfy a claim must be
substantially in the following form:
STATE OF MINNESOTA DISTRICT COURT
COUNTY OF ................ ........JUDICIAL DISTRICT
........................(Creditor)
........................(Debtor)
TO: Debtor EXEMPTION NOTICE
An order for attachment, garnishment summons, or levy of
execution (strike inapplicable language) has been served on
............ (bank or other financial institution)
............... where you have an account.
Your account balance is $.............
The amount being held is $............
However, all or a portion of the funds in your account will
normally be exempt from creditors' claims if they are in one of
the following categories:
(1) relief based on need. This includes: Aid to Families
with Dependent Children (AFDC), AFDC-Emergency Assistance
(AFDC-EA) the Minnesota family investment program (MFIP),
Emergency Assistance (EA), work first program, Medical
Assistance (MA), General Assistance (GA), General Assistance
Medical Care (GAMC), Emergency General Assistance (EGA), Work
Readiness, Minnesota Supplemental Aid (MSA), MSA Emergency
Assistance (MSA-EA), Supplemental Security Income (SSI), and
Energy Assistance;
(2) Social Security benefits (Old Age, Survivors, or
Disability Insurance);
(3) reemployment insurance, workers' compensation, or
veterans' benefits;
(4) an accident, disability, or retirement pension or
annuity;
(5) life insurance proceeds;
(6) the earnings of your minor child and any child support
paid to you; or
(7) money from a claim for damage or destruction of exempt
property (such as household goods, farm tools, business
equipment, a mobile home, or a car).
The following funds are also exempt:
(8) all earnings of a person in category (1);
(9) all earnings of a person who has received relief based
on need, or who has been an inmate of a correctional
institution, within the last six months;
(10) 75 percent of every debtor's after tax earnings; and
(11) all of a debtor's after tax earnings below 40 times
the federal minimum wage.
TIME LIMIT ON EXEMPTIONS AFTER DEPOSIT IN BANK:
Categories (10) and (11): 20 days
Categories (8) and (9): 60 days
All others: no time limit, as long as funds are traceable
to the exempt source. (In tracing funds, the first-in,
first-out method is used. This means money deposited first is
spent first.) The money being sought by the creditor is being
held in your account to give you a chance to claim an exemption.
TO CLAIM AN EXEMPTION:
Fill out, sign, and mail or deliver one copy of the
attached exemption claim form to the institution which sent you
this notice and mail or deliver one copy to the creditor's
attorney. In the event that there is no attorney for the
creditor, then such notice shall be sent directly to the
creditor. The address for the creditor's attorney or the
creditor is set forth below. Both copies must be mailed or
delivered on the same day.
If they do not get the exemption claim back from you within
14 days of the date they mailed or gave it to you, they will be
free to turn the money over to the sheriff or the creditor. If
you are going to claim an exemption, do so as soon as possible,
because your money may be held until it is decided.
IF YOU CLAIM AN EXEMPTION:
(1) nonexempt money can be turned over to the creditor or
sheriff;
(2) the financial institution will keep holding the money
claimed to be exempt; and
(3) seven days after receiving your exemption claim, the
financial institution will release the money to you unless
before then it receives an objection to your exemption claim.
IF THE CREDITOR OBJECTS TO YOUR EXEMPTION CLAIM:
The institution will hold the money until a court decides
if your exemption claim is valid, BUT ONLY IF the institution
gets a copy of your court motion papers asserting the exemption
WITHIN TEN DAYS after the objection is mailed or given to you.
You may wish to consult an attorney at once if the creditor
objects to your exemption claim.
MOTION TO DETERMINE EXEMPTION:
At any time after your funds have been held, you may ask
for a court decision on the validity of your exemption claim by
filing a request for hearing which may be obtained at the office
of the court administrator of the above court.
PENALTIES:
If you claim an exemption in bad faith, or if the creditor
wrongly objects to an exemption in bad faith, the court may
order the person who acted in bad faith to pay costs, actual
damages, attorney fees, and an additional amount of up to $100.
.............................
.............................
.............................
.............................
Name and address of (Attorney
for) Judgment Creditor
EXEMPTION:
(If you claim an exemption complete the following):
(a) Amount of exemption claim.
/ / I claim ALL the funds being held are exempt.
/ / I claim SOME of the funds being held are exempt.
The exempt amount is $............
(b) Basis for exemption.
Of the eleven categories listed above, I am in category
number ............ (If more than one category applies, you may
fill in as many as apply.) The source of the exempt funds is
the following:
.............................................................
.............................................................
.............................................................
(If the source is a type of relief based on need, list the
case number and county:
case number: ...............;
county: ....................)
I hereby authorize any agency that has distributed relief
to me or any correctional institution in which I was an inmate
to disclose to the above named creditor or its attorney only
whether or not I am or have been a recipient of relief based on
need or an inmate of a correctional institute within the last
six months.
I have mailed or delivered a copy of the exemption notice
to the creditor's attorney.
DATED: ............. .............................
DEBTOR
.............................
DEBTOR ADDRESS
Sec. 150. Minnesota Statutes 1998, section 571.925, is
amended to read:
571.925 [FORM OF NOTICE.]
The ten-day notice informing a debtor that a garnishment
summons may be used to garnish the earnings of an individual
must be substantially in the following form:
STATE OF MINNESOTA DISTRICT COURT
COUNTY OF ............. ........... JUDICIAL DISTRICT
....................(Creditor)
against
GARNISHMENT EXEMPTION
....................(Debtor) NOTICE AND NOTICE OF
and INTENT TO GARNISH EARNINGS
WITHIN TEN DAYS
....................(Garnishee)
PLEASE TAKE NOTICE that a garnishment summons or levy may
be served upon your employer or other third parties, without any
further court proceedings or notice to you, ten days or more
from the date hereof. Some or all of your earnings are exempt
from garnishment. If your earnings are garnished, your employer
must show you how the amount that is garnished from your
earnings was calculated. You have the right to request a
hearing if you claim the garnishment is incorrect.
Your earnings are completely exempt from garnishment if you
are now a recipient of relief based on need, if you have been a
recipient of relief within the last six months, or if you have
been an inmate of a correctional institution in the last six
months.
Relief based on need includes Aid to Families with
Dependent Children (AFDC), AFDC-Emergency Assistance (AFDC-EA)
the Minnesota family investment program (MFIP), Emergency
Assistance (EA), work first program, Medical Assistance (MA),
General Assistance (GA), General Assistance Medical Care (GAMC),
Emergency General Assistance (EGA), Work Readiness, Minnesota
Supplemental Aid (MSA), MSA Emergency Assistance (MSA-EA),
Supplemental Security Income (SSI), and Energy Assistance.
If you wish to claim an exemption, you should fill out the
appropriate form below, sign it, and send it to the creditor's
attorney and the garnishee.
You may wish to contact the attorney for the creditor in
order to arrange for a settlement of the debt or contact an
attorney to advise you about exemptions or other rights.
PENALTIES
(1) Be advised that even if you claim an exemption, a
garnishment summons may still be served on your employer.
If your earnings are garnished after you claim an
exemption, you may petition the court for a determination
of your exemption. If the court finds that the creditor
disregarded your claim of exemption in bad faith, you will
be entitled to costs, reasonable attorney fees, actual
damages, and an amount not to exceed $100.
(2) HOWEVER, BE WARNED if you claim an exemption, the
creditor can also petition the court for a determination of
your exemption, and if the court finds that you claimed an
exemption in bad faith, you will be assessed costs and
reasonable attorney's fees plus an amount not to exceed
$100.
(3) If after receipt of this notice, you in bad faith take
action to frustrate the garnishment, thus requiring the
creditor to petition the court to resolve the problem, you
will be liable to the creditor for costs and reasonable
attorney's fees plus an amount not to exceed $100.
DATED: ............ ........................
(Attorney for) Creditor
........................
Address
........................
Telephone
DEBTOR'S EXEMPTION CLAIM NOTICE
I hereby claim that my earnings are exempt from garnishment
because:
(1) I am presently a recipient of relief based on need.
(Specify the program, case number, and the county from
which relief is being received.)
................ ...................... ...............
Program Case Number (if known) County
(2) I am not now receiving relief based on need, but I have
received relief based on need within the last six months.
(Specify the program, case number, and the county from
which relief has been received.)
................ ...................... ...............
Program Case Number (if known) County
(3) I have been an inmate of a correctional institution
within the last six months. (Specify the correctional
institution and location.)
........................... ..........................
Correctional Institution Location
I hereby authorize any agency that has distributed relief
to me or any correctional institution in which I was an inmate
to disclose to the above-named creditor or the creditor's
attorney only whether or not I am or have been a recipient of
relief based on need or an inmate of a correctional institution
within the last six months. I have mailed or delivered a copy
of this form to the creditor or creditor's attorney.
........................... .........................
Date Debtor
.........................
Address
Sec. 151. Minnesota Statutes 1998, section 571.931,
subdivision 6, is amended to read:
Subd. 6. [NOTICE.] The debtor shall be served with a copy
of the prejudgment garnishment order issued pursuant to this
section together with a copy of all pleadings and other
documents not previously served, including any affidavits upon
which the claimant intends to rely at the subsequent hearing and
a transcript of any oral testimony given at the prejudgment
garnishment hearing upon which the creditor intends to rely and
a notice of hearing. Service must be in the manner prescribed
for personal service of a summons unless that service is
impracticable or would be ineffective and the court prescribes
an alternative method of service calculated to provide actual
notice to the debtor.
The notice of hearing served upon the debtor must be signed
by the creditor or the attorney for the creditor and must be
accompanied by an exemption notice. The notice of hearing must
be accompanied by an exemption notice, and both notices must
provide, at a minimum, the following information in
substantially the following language:
NOTICE OF HEARING
TO: (the debtor)
The (insert the name of court) Court has ordered the
prejudgment garnishment of some of your property in the
possession or control of a third party. Some of your property
may be exempt from seizure. See the exemption notice below.
The Court issued this Order based upon the claim of (insert
name of creditor) that (insert name of creditor) is entitled to
a court order for garnishment of your property to secure your
payment of any money judgment that (insert name of creditor) may
later be obtained against you and that immediate action was
necessary.
You have the legal right to challenge (insert name of
creditor) claims at a court hearing before a judge. The hearing
will be held at the (insert place) on (insert date) at (insert
time). You may attend the court hearing alone or with an
attorney. After you have presented your side of the matter, the
court will decide what should be done with your property until
the lawsuit against you is finally decided.
IF YOU DO NOT ATTEND THIS HEARING, THE COURT MAY ORDER
GARNISHMENT OF YOUR PROPERTY.
EXEMPTION NOTICE
Some of your property may be exempt and cannot be garnished.
The following is a list of some of the more common exemptions.
It is not complete and is subject to section 550.37, and other
state and federal laws. If you have questions about an
exemption, you should obtain competent legal advice.
(1) A homestead or the proceeds from the sale of a
homestead.
(2) Household furniture, appliances, phonographs, radios,
and televisions up to a total current value of $4,500 at the
time of attachment.
(3) A manufactured (mobile) home used as your home.
(4) One motor vehicle currently worth less than $2,000
after deducting any security interests.
(5) Farm machinery used by someone principally engaged in
farming, or tools, machines, or office furniture used in your
business or trade. This exemption is limited to $10,000.
(6) Relief based on need. This includes: Aid to Families
with Dependent Children (AFDC), AFDC-Emergency Assistance
(AFDC-EA) the Minnesota family investment program (MFIP),
Emergency Assistance (EA), work first program, Medical
Assistance (MA), General Assistance (GA), General Assistance
Medical Care (GAMC), Emergency General Assistance (EGA), Work
Readiness, Minnesota Supplemental Aid (MSA), MSA Emergency
Assistance (MSA-EA), Supplemental Security Income (SSI), and
Energy Assistance.
(7) Social Security benefits.
(8) Reemployment insurance, workers' compensation, or
veterans' benefits.
(9) An accident, disability or retirement pension or
annuity.
(10) Life insurance proceeds.
(11) The earnings of your minor child.
(12) Money from a claim for damage or destruction of exempt
property (such as household goods, farm tools, business
equipment, a manufactured (mobile) home, or a car).
Sec. 152. Minnesota Statutes 1998, section 571.932,
subdivision 2, is amended to read:
Subd. 2. [SERVICE.] The creditor's motion to obtain an
order of garnishment together with the creditor's affidavit and
notice of hearing must be served in the manner prescribed for
service of a summons in a civil action in district court unless
that service is impracticable or would be ineffective and the
court prescribes an alternative method of service calculated to
provide actual notice to the debtor. If the debtor has already
appeared in the action, the motion must be served in the manner
prescribed for service of pleadings subsequent to the summons.
The date of the hearing must be fixed in accordance with Rule 6
of the Minnesota Rules of Civil Procedure for the District
Courts, unless a different date is fixed by order of the court.
The notice of hearing served upon the debtor shall be
signed by the creditor or the attorney for the creditor and
shall provide, at a minimum, the following information in
substantially the following language:
NOTICE OF HEARING
TO: (the debtor)
A hearing will be held (insert place) on (insert date) at
(insert time) to determine whether nonexempt property belonging
to you will be garnished to secure a judgment that may be
entered against you.
You may attend the court hearing alone or with an attorney.
After you have presented your side of the matter, the court will
decide whether your property should be garnished until the
lawsuit which has been commenced against you is finally decided.
If the court directs the issuance of a garnishment summons
while the lawsuit is pending, you may still keep the property
until the lawsuit is decided if you file a bond in an amount set
by the court.
IF YOU DO NOT ATTEND THIS HEARING, THE COURT MAY ORDER YOUR
NONEXEMPT PROPERTY TO BE GARNISHED.
EXEMPTION NOTICE
Some of your property may be exempt and cannot be garnished.
The following is a list of some of the more common exemptions.
It is not complete and is subject to section 550.37, and other
state and federal laws. The dollar amounts contained in this
list are subject to the provisions of section 550.37,
subdivision 4a, at the time of the garnishment. If you have
questions about an exemption, you should obtain competent legal
advice.
(1) A homestead or the proceeds from the sale of a
homestead.
(2) Household furniture, appliances, phonographs, radios,
and televisions up to a total current value of $5,850.
(3) A manufactured (mobile) home used as your home.
(4) One motor vehicle currently worth less than $2,600
after deducting any security interests.
(5) Farm machinery used by an individual principally
engaged in farming, or tools, machines, or office furniture used
in your business or trade. This exemption is limited to $13,000.
(6) Relief based on need. This includes: Aid to Families
with Dependent Children (AFDC), AFDC-Emergency Assistance
(AFDC-EA) the Minnesota family investment program (MFIP),
Emergency Assistance (EA), work first program, Medical
Assistance (MA), General Assistance (GA), General Assistance
Medical Care (GAMC), Emergency General Assistance (EGA), Work
Readiness, Minnesota Supplemental Aid (MSA), MSA Emergency
Assistance (MSA-EA), Supplemental Security Income (SSI), and
Energy Assistance.
(7) Social Security benefits.
(8) Reemployment insurance, workers' compensation, or
veterans' benefits.
(9) An accident, disability or retirement pension or
annuity.
(10) Life insurance proceeds.
(11) The earnings of your minor child.
(12) Money from a claim for damage or destruction of exempt
property (such as household goods, farm tools, business
equipment, a manufactured (mobile) home, or a car).
Sec. 153. Minnesota Statutes 1998, section 583.22,
subdivision 7b, is amended to read:
Subd. 7b. [NECESSARY LIVING EXPENSES.] As used in section
583.27, "necessary living expenses" means a sum approximately
equal to 1-1/2 times the amount to which the family would be
entitled if eligible for payments under section 256.74 chapter
256J, unless limited by section 583.27, subdivision 1, paragraph
(b).
Sec. 154. [REPEALER.]
(a) Minnesota Statutes 1998, sections 119B.01, subdivision
12a; 119B.05, subdivision 6; 126C.05, subdivision 4; 126C.06;
256.031, subdivision 1a; 256.736; 256.74, subdivision 1c;
256.9850; 256J.62, subdivision 5; 268.871, subdivision 5; and
290A.22, are repealed.
(b) Minnesota Rules, parts 9500.2000; 9500.2020; 9500.2060;
9500.2100; 9500.2140; 9500.2180; 9500.2220; 9500.2260;
9500.2300; 9500.2340; 9500.2380; 9500.2420; 9500.2440;
9500.2480; 9500.2500; 9500.2520; 9500.2560; 9500.2580;
9500.2600; 9500.2620; 9500.2640; 9500.2680; 9500.2700;
9500.2720; 9500.2722; 9500.2724; 9500.2726; 9500.2728;
9500.2730; 9500.2740; 9500.2760; 9500.2780; 9500.2800;
9500.2820; 9500.2860; and 9500.2880, are repealed.
Presented to the governor May 11, 1999
Signed by the governor May 13, 1999, 1:27 p.m.
Official Publication of the State of Minnesota
Revisor of Statutes