1.1                          A bill for an act 
  1.2             relating to human services; modifying provisions for 
  1.3             family and adult self-sufficiency; amending Minnesota 
  1.4             Statutes 2000, sections 256D.053, subdivision 1; 
  1.5             256J.11, subdivision 3; 256J.21, subdivision 2; 
  1.6             256J.24, subdivision 10; 256J.37, subdivision 9; 
  1.7             256J.39, subdivision 2; 256J.42, subdivisions 1, 3, 4, 
  1.8             by adding subdivisions; 256J.46, subdivisions 1, 2a; 
  1.9             256J.48, subdivision 2; 256J.50, subdivisions 1, 7; 
  1.10            256J.52, subdivision 2; 256J.53, subdivision 1; 
  1.11            256J.62, subdivision 9; 256J.625, subdivisions 1, 2, 
  1.12            4; proposing coding for new law in Minnesota Statutes, 
  1.13            chapter 256J; repealing Minnesota Statutes 2000, 
  1.14            sections 256.01, subdivision 18; 256J.32, subdivision 
  1.15            7a; 256J.46, subdivision 1a; 256J.53, subdivision 4. 
  1.16  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.17     Section 1.  Minnesota Statutes 2000, section 256D.053, 
  1.18  subdivision 1, is amended to read: 
  1.19     Subdivision 1.  [PROGRAM ESTABLISHED.] The Minnesota food 
  1.20  assistance program is established to provide food assistance to 
  1.21  legal noncitizens residing in this state who are ineligible to 
  1.22  participate in the federal Food Stamp Program solely due to the 
  1.23  provisions of section 402 or 403 of Public Law Number 104-193, 
  1.24  as authorized by Title VII of the 1997 Emergency Supplemental 
  1.25  Appropriations Act, Public Law Number 105-18, and as amended by 
  1.26  Public Law Number 105-185. 
  1.27     Beginning July 1, 2002, the Minnesota food assistance 
  1.28  program is limited to those noncitizens described in this 
  1.29  subdivision who are 50 years of age or older. 
  1.30     Sec. 2.  [256J.021] [SEPARATE STATE PROGRAM FOR USE OF 
  2.1   STATE MONEY.] 
  2.2      Beginning October 1, 2001, and each year thereafter, the 
  2.3   commissioner of human services must treat financial assistance 
  2.4   expenditures made to or on behalf of any minor child under 
  2.5   section 256J.02, subdivision 2, clause (1), who is a resident of 
  2.6   this state under section 256J.12, and who is part of a 
  2.7   two-parent eligible household as expenditures under a separately 
  2.8   funded state program and report those expenditures to the 
  2.9   federal Department of Health and Human Services as separate 
  2.10  state program expenditures under Code of Federal Regulations, 
  2.11  title 45, section 263.5. 
  2.12     Sec. 3.  [256J.022] [CHILD SUPPORT DISTRIBUTION.] 
  2.13     For purposes of claiming the distribution of child support 
  2.14  under section 256.741 as maintenance of effort for the temporary 
  2.15  assistance to needy families grant, the commissioner shall 
  2.16  exclude 50 percent of the amount passed through under section 
  2.17  256J.21, subdivision 2.  That 50 percent shall include the 
  2.18  entire state share of current child support and maintenance 
  2.19  payments and an amount of the federal share sufficient to 
  2.20  provide a disregard equivalent to 50 percent of the combined 
  2.21  state and federal share. 
  2.22     Sec. 4.  Minnesota Statutes 2000, section 256J.11, 
  2.23  subdivision 3, is amended to read: 
  2.24     Subd. 3.  [BENEFITS FUNDED WITH STATE MONEY.] (a) 
  2.25  Notwithstanding Laws 2000, chapter 488, article 10, section 28, 
  2.26  state funds may be used for legal noncitizens receiving MFIP who 
  2.27  are ineligible for federal funding. 
  2.28     (b) Legal adult noncitizens who have resided in the country 
  2.29  for four years or more as a lawful permanent resident, whose 
  2.30  benefits are funded entirely with state money, and who are under 
  2.31  70 years of age, must, as a condition of eligibility: 
  2.32     (1) be enrolled in a literacy class, English as a second 
  2.33  language class, or a citizen class; 
  2.34     (2) be applying for admission to a literacy class, English 
  2.35  as a second language class, and is on a waiting list; 
  2.36     (3) be in the process of applying for a waiver from the 
  3.1   Immigration and Naturalization Service of the English language 
  3.2   or civics requirements of the citizenship test; 
  3.3      (4) have submitted an application for citizenship to the 
  3.4   Immigration and Naturalization Service and is waiting for a 
  3.5   testing date or a subsequent swearing in ceremony; or 
  3.6      (5) have been denied citizenship due to a failure to pass 
  3.7   the test after two attempts or because of an inability to 
  3.8   understand the rights and responsibilities of becoming a United 
  3.9   States citizen, as documented by the Immigration and 
  3.10  Naturalization Service or the county. 
  3.11     If the county social service agency determines that a legal 
  3.12  noncitizen subject to the requirements of this subdivision will 
  3.13  require more than one year of English language training, then 
  3.14  the requirements of clause (1) or (2) shall be imposed after the 
  3.15  legal noncitizen has resided in the country for three years.  
  3.16  Individuals who reside in a facility licensed under chapter 
  3.17  144A, 144D, 245A, or 256I are exempt from the requirements of 
  3.18  this subdivision. 
  3.19     Sec. 5.  Minnesota Statutes 2000, section 256J.21, 
  3.20  subdivision 2, is amended to read: 
  3.21     Subd. 2.  [INCOME EXCLUSIONS.] (a) The following must be 
  3.22  excluded in determining a family's available income: 
  3.23     (1) payments for basic care, difficulty of care, and 
  3.24  clothing allowances received for providing family foster care to 
  3.25  children or adults under Minnesota Rules, parts 9545.0010 to 
  3.26  9545.0260 and 9555.5050 to 9555.6265, and payments received and 
  3.27  used for care and maintenance of a third-party beneficiary who 
  3.28  is not a household member; 
  3.29     (2) reimbursements for employment training received through 
  3.30  the Job Training Partnership Act, United States Code, title 29, 
  3.31  chapter 19, sections 1501 to 1792b; 
  3.32     (3) reimbursement for out-of-pocket expenses incurred while 
  3.33  performing volunteer services, jury duty, employment, or 
  3.34  informal carpooling arrangements directly related to employment; 
  3.35     (4) all educational assistance, except the county agency 
  3.36  must count graduate student teaching assistantships, 
  4.1   fellowships, and other similar paid work as earned income and, 
  4.2   after allowing deductions for any unmet and necessary 
  4.3   educational expenses, shall count scholarships or grants awarded 
  4.4   to graduate students that do not require teaching or research as 
  4.5   unearned income; 
  4.6      (5) loans, regardless of purpose, from public or private 
  4.7   lending institutions, governmental lending institutions, or 
  4.8   governmental agencies; 
  4.9      (6) loans from private individuals, regardless of purpose, 
  4.10  provided an applicant or participant documents that the lender 
  4.11  expects repayment; 
  4.12     (7)(i) state income tax refunds; and 
  4.13     (ii) federal income tax refunds; 
  4.14     (8)(i) federal earned income credits; 
  4.15     (ii) Minnesota working family credits; 
  4.16     (iii) state homeowners and renters credits under chapter 
  4.17  290A; and 
  4.18     (iv) federal or state tax rebates; 
  4.19     (9) funds received for reimbursement, replacement, or 
  4.20  rebate of personal or real property when these payments are made 
  4.21  by public agencies, awarded by a court, solicited through public 
  4.22  appeal, or made as a grant by a federal agency, state or local 
  4.23  government, or disaster assistance organizations, subsequent to 
  4.24  a presidential declaration of disaster; 
  4.25     (10) the portion of an insurance settlement that is used to 
  4.26  pay medical, funeral, and burial expenses, or to repair or 
  4.27  replace insured property; 
  4.28     (11) reimbursements for medical expenses that cannot be 
  4.29  paid by medical assistance; 
  4.30     (12) payments by a vocational rehabilitation program 
  4.31  administered by the state under chapter 268A, except those 
  4.32  payments that are for current living expenses; 
  4.33     (13) in-kind income, including any payments directly made 
  4.34  by a third party to a provider of goods and services; 
  4.35     (14) assistance payments to correct underpayments, but only 
  4.36  for the month in which the payment is received; 
  5.1      (15) emergency assistance payments; 
  5.2      (16) funeral and cemetery payments as provided by section 
  5.3   256.935; 
  5.4      (17) nonrecurring cash gifts of $30 or less, not exceeding 
  5.5   $30 per participant in a calendar month; 
  5.6      (18) any form of energy assistance payment made through 
  5.7   Public Law Number 97-35, Low-Income Home Energy Assistance Act 
  5.8   of 1981, payments made directly to energy providers by other 
  5.9   public and private agencies, and any form of credit or rebate 
  5.10  payment issued by energy providers; 
  5.11     (19) Supplemental Security Income, including retroactive 
  5.12  payments; 
  5.13     (20) Minnesota supplemental aid, including retroactive 
  5.14  payments; 
  5.15     (21) proceeds from the sale of real or personal property; 
  5.16     (22) adoption assistance payments under section 259.67; 
  5.17     (23) state-funded family subsidy program payments made 
  5.18  under section 252.32 to help families care for children with 
  5.19  mental retardation or related conditions, consumer support grant 
  5.20  funds under section 256.476, and resources and services for a 
  5.21  disabled household member under one of the home and 
  5.22  community-based waiver services programs under chapter 256B; 
  5.23     (24) interest payments and dividends from property that is 
  5.24  not excluded from and that does not exceed the asset limit; 
  5.25     (25) rent rebates; 
  5.26     (26) income earned by a minor caregiver, minor child 
  5.27  through age 6, or a minor child who is at least a half-time 
  5.28  student in an approved elementary or secondary education 
  5.29  program; 
  5.30     (27) income earned by a caregiver under age 20 who is at 
  5.31  least a half-time student in an approved elementary or secondary 
  5.32  education program; 
  5.33     (28) MFIP child care payments under section 119B.05; 
  5.34     (29) all other payments made through MFIP to support a 
  5.35  caregiver's pursuit of greater self-support; 
  5.36     (30) income a participant receives related to shared living 
  6.1   expenses; 
  6.2      (31) reverse mortgages; 
  6.3      (32) benefits provided by the Child Nutrition Act of 1966, 
  6.4   United States Code, title 42, chapter 13A, sections 1771 to 
  6.5   1790; 
  6.6      (33) benefits provided by the women, infants, and children 
  6.7   (WIC) nutrition program, United States Code, title 42, chapter 
  6.8   13A, section 1786; 
  6.9      (34) benefits from the National School Lunch Act, United 
  6.10  States Code, title 42, chapter 13, sections 1751 to 1769e; 
  6.11     (35) relocation assistance for displaced persons under the 
  6.12  Uniform Relocation Assistance and Real Property Acquisition 
  6.13  Policies Act of 1970, United States Code, title 42, chapter 61, 
  6.14  subchapter II, section 4636, or the National Housing Act, United 
  6.15  States Code, title 12, chapter 13, sections 1701 to 1750jj; 
  6.16     (36) benefits from the Trade Act of 1974, United States 
  6.17  Code, title 19, chapter 12, part 2, sections 2271 to 2322; 
  6.18     (37) war reparations payments to Japanese Americans and 
  6.19  Aleuts under United States Code, title 50, sections 1989 to 
  6.20  1989d; 
  6.21     (38) payments to veterans or their dependents as a result 
  6.22  of legal settlements regarding Agent Orange or other chemical 
  6.23  exposure under Public Law Number 101-239, section 10405, 
  6.24  paragraph (a)(2)(E); 
  6.25     (39) income that is otherwise specifically excluded from 
  6.26  MFIP consideration in federal law, state law, or federal 
  6.27  regulation; 
  6.28     (40) security and utility deposit refunds; 
  6.29     (41) American Indian tribal land settlements excluded under 
  6.30  Public Law Numbers 98-123, 98-124, and 99-377 to the Mississippi 
  6.31  Band Chippewa Indians of White Earth, Leech Lake, and Mille Lacs 
  6.32  reservations and payments to members of the White Earth Band, 
  6.33  under United States Code, title 25, chapter 9, section 331, and 
  6.34  chapter 16, section 1407; 
  6.35     (42) all income of the minor parent's parents and 
  6.36  stepparents when determining the grant for the minor parent in 
  7.1   households that include a minor parent living with parents or 
  7.2   stepparents on MFIP with other children; and 
  7.3      (43) income of the minor parent's parents and stepparents 
  7.4   equal to 200 percent of the federal poverty guideline for a 
  7.5   family size not including the minor parent and the minor 
  7.6   parent's child in households that include a minor parent living 
  7.7   with parents or stepparents not on MFIP when determining the 
  7.8   grant for the minor parent.  The remainder of income is deemed 
  7.9   as specified in section 256J.37, subdivision 1b; 
  7.10     (44) payments made to children eligible for relative 
  7.11  custody assistance under section 257.85; 
  7.12     (45) vendor payments for goods and services made on behalf 
  7.13  of a client unless the client has the option of receiving the 
  7.14  payment in cash; and 
  7.15     (46) the principal portion of a contract for deed payment; 
  7.16  and 
  7.17     (47) 50 percent of current child support and maintenance 
  7.18  payments. 
  7.19     Sec. 6.  Minnesota Statutes 2000, section 256J.24, 
  7.20  subdivision 10, is amended to read: 
  7.21     Subd. 10.  [MFIP EXIT LEVEL.] (a) In state fiscal years 
  7.22  2000 and 2001, The commissioner shall adjust the MFIP earned 
  7.23  income disregard to ensure that most participants do not lose 
  7.24  eligibility for MFIP until their income reaches at least 120 
  7.25  percent of the federal poverty guidelines in effect in October 
  7.26  of each fiscal year.  The adjustment to the disregard shall be 
  7.27  based on a household size of three, and the resulting earned 
  7.28  income disregard percentage must be applied to all household 
  7.29  sizes.  The adjustment under this subdivision must be 
  7.30  implemented at the same time as the October food stamp 
  7.31  cost-of-living adjustment is reflected in the food portion of 
  7.32  MFIP transitional standard as required under subdivision 5a. 
  7.33     (b) In state fiscal year 2002 and thereafter, the earned 
  7.34  income disregard percentage must be the same as the percentage 
  7.35  implemented in October 2000. 
  7.36     Sec. 7.  Minnesota Statutes 2000, section 256J.37, 
  8.1   subdivision 9, is amended to read: 
  8.2      Subd. 9.  [UNEARNED INCOME.] (a) The county agency must 
  8.3   apply unearned income to the MFIP standard of need.  When 
  8.4   determining the amount of unearned income, the county agency 
  8.5   must deduct the costs necessary to secure payments of unearned 
  8.6   income.  These costs include legal fees, medical fees, and 
  8.7   mandatory deductions such as federal and state income taxes. 
  8.8      (b) Effective July 1, 2001, the county agency shall count 
  8.9   $100 of the value of public and assisted rental subsidies 
  8.10  provided through the Department of Housing and Urban Development 
  8.11  (HUD) as unearned income.  The full amount of the subsidy must 
  8.12  be counted as unearned income when the subsidy is less than $100.
  8.13     (c) The provisions of paragraph (b) shall not apply to MFIP 
  8.14  participants who are exempt from the employment and training 
  8.15  services component because they are: 
  8.16     (i) individuals who are age 60 or older; 
  8.17     (ii) individuals who are suffering from a professionally 
  8.18  certified permanent or temporary illness, injury, or incapacity 
  8.19  which is expected to continue for more than 30 days and which 
  8.20  prevents the person from obtaining or retaining employment; or 
  8.21     (iii) caregivers whose presence in the home is required 
  8.22  because of the professionally certified illness or incapacity of 
  8.23  another member in the assistance unit, a relative in the 
  8.24  household, or a foster child in the household. 
  8.25     (d) The provisions of paragraph (b) shall not apply to an 
  8.26  MFIP assistance unit where the parental caregiver receives 
  8.27  supplemental security income. 
  8.28     Sec. 8.  Minnesota Statutes 2000, section 256J.39, 
  8.29  subdivision 2, is amended to read: 
  8.30     Subd. 2.  [PROTECTIVE AND VENDOR PAYMENTS.] Alternatives to 
  8.31  paying assistance directly to a participant may be used when: 
  8.32     (1) a county agency determines that a vendor payment is the 
  8.33  most effective way to resolve an emergency situation pertaining 
  8.34  to basic needs; 
  8.35     (2) a caregiver makes a written request to the county 
  8.36  agency asking that part or all of the assistance payment be 
  9.1   issued by protective or vendor payments for shelter and utility 
  9.2   service only.  The caregiver may withdraw this request in 
  9.3   writing at any time; 
  9.4      (3) the vendor payment is part of a sanction under section 
  9.5   256J.46; 
  9.6      (4) the vendor payment is required under section 256J.24, 
  9.7   subdivision 8, 256J.26, or 256J.43; 
  9.8      (5) (4) protective payments are required for minor parents 
  9.9   under section 256J.14; or 
  9.10     (6) (5) a caregiver has exhibited a continuing pattern of 
  9.11  mismanaging funds as determined by the county agency. 
  9.12     The director of a county agency or the director's designee 
  9.13  must approve a proposal for protective or vendor payment for 
  9.14  money mismanagement when there is a pattern of mismanagement 
  9.15  under clause (6) (5).  During the time a protective or vendor 
  9.16  payment is being made, the county agency must provide services 
  9.17  designed to alleviate the causes of the mismanagement. 
  9.18     The continuing need for and method of payment must be 
  9.19  documented and reviewed every 12 months.  The director of a 
  9.20  county agency or the director's designee must approve the 
  9.21  continuation of protective or vendor payments.  When it appears 
  9.22  that the need for protective or vendor payments will continue or 
  9.23  is likely to continue beyond two years because the county 
  9.24  agency's efforts have not resulted in sufficiently improved use 
  9.25  of assistance on behalf of the minor child, judicial appointment 
  9.26  of a legal guardian or other legal representative must be sought 
  9.27  by the county agency.  
  9.28     Sec. 9.  Minnesota Statutes 2000, section 256J.42, 
  9.29  subdivision 1, is amended to read: 
  9.30     Subdivision 1.  [TIME LIMIT.] (a) Except for the exemptions 
  9.31  as otherwise provided for in this section, an assistance unit in 
  9.32  which any adult caregiver has received 60 months of cash 
  9.33  assistance funded in whole or in part by the TANF block grant in 
  9.34  this or any other state or United States territory, or from a 
  9.35  tribal TANF program, MFIP, the AFDC program formerly codified in 
  9.36  sections 256.72 to 256.87, or the family general assistance 
 10.1   program formerly codified in sections 256D.01 to 256D.23, funded 
 10.2   in whole or in part by state appropriations, is ineligible to 
 10.3   receive MFIP.  Any cash assistance funded with TANF dollars in 
 10.4   this or any other state or United States territory, or from a 
 10.5   tribal TANF program, or MFIP assistance funded in whole or in 
 10.6   part by state appropriations, that was received by the unit on 
 10.7   or after the date TANF was implemented, including any assistance 
 10.8   received in states or United States territories of prior 
 10.9   residence, counts toward the 60-month limitation.  The 60-month 
 10.10  limit applies to a minor who is the head of a household or who 
 10.11  is married to the head of a household caregiver except under 
 10.12  subdivision 5.  The 60-month time period does not need to be 
 10.13  consecutive months for this provision to apply.  
 10.14     (b) The months before July 1998 in which individuals 
 10.15  received assistance as part of the field trials as an MFIP, 
 10.16  MFIP-R, or MFIP or MFIP-R comparison group family are not 
 10.17  included in the 60-month time limit. 
 10.18     Sec. 10.  Minnesota Statutes 2000, section 256J.42, 
 10.19  subdivision 3, is amended to read: 
 10.20     Subd. 3.  [ADULTS LIVING ON AN IN INDIAN 
 10.21  RESERVATION COUNTRY.] In determining the number of months for 
 10.22  which an adult has received assistance under MFIP-S MFIP, the 
 10.23  county agency must disregard any month during which the adult 
 10.24  lived on an in Indian reservation country if during the month at 
 10.25  least 50 percent of the adults living on the reservation in 
 10.26  Indian country were not employed. 
 10.27     Sec. 11.  Minnesota Statutes 2000, section 256J.42, 
 10.28  subdivision 4, is amended to read: 
 10.29     Subd. 4.  [VICTIMS OF DOMESTIC FAMILY VIOLENCE.] Any cash 
 10.30  assistance received by an assistance unit in a month when a 
 10.31  caregiver is complying complied with a safety plan or after 
 10.32  October 1, 2001, complied or is complying with an alternative 
 10.33  employment plan under the MFIP-S employment and training 
 10.34  component section 256J.49, subdivision 1a, does not count toward 
 10.35  the 60-month limitation on assistance. 
 10.36     <b>[EFFECTIVE DATE.]</b> This section is effective October 1, 
 11.1   2001, if the alternative employment plan proposed in section 
 11.2   256J.49, subdivision 1a, is enacted in the 2001 legislative 
 11.3   session. 
 11.4      Sec. 12.  Minnesota Statutes 2000, section 256J.42, is 
 11.5   amended by adding a subdivision to read: 
 11.6      Subd. 6.  [COMPLIANCE.] For purposes of determining 
 11.7   eligibility for a hardship extension under subdivisions 7, 8, 
 11.8   and 9, a caregiver is in compliance in any month that the 
 11.9   caregiver has not been sanctioned under section 256J.46, 
 11.10  subdivision 1. 
 11.11     Sec. 13.  Minnesota Statutes 2000, section 256J.42, is 
 11.12  amended by adding a subdivision to read: 
 11.13     Subd. 7.  [HARDSHIP EXTENSIONS.] (a) An assistance unit 
 11.14  subject to the time limit in subdivision 1 in which any 
 11.15  caregiver has received 60 counted months of cash assistance is 
 11.16  eligible to receive assistance under an MFIP hardship extension, 
 11.17  if the caregiver meets the following criteria.  If there is more 
 11.18  than one caregiver in the assistance unit, each caregiver must 
 11.19  meet the criteria for the case to be extended: 
 11.20     (1) the caregiver is in compliance; and 
 11.21     (2) the caregiver has been in compliance for more than 30 
 11.22  months during the first 60 months on MFIP. 
 11.23     (b) If any caregiver in the assistance unit is sanctioned 
 11.24  for noncompliance under section 256J.46, subdivision 1, in the 
 11.25  60th month, the assistance unit's MFIP case must be closed.  The 
 11.26  assistance unit's case must be reopened if the caregiver 
 11.27  complies with the requirements in sections 256J.52 to 256J.55 
 11.28  and no other caregiver in the assistance unit was sanctioned for 
 11.29  noncompliance under section 256J.46, subdivision 1, for 30 or 
 11.30  more months during the first 60 months. 
 11.31     (c) If any caregiver in the assistance unit was sanctioned 
 11.32  for noncompliance under section 256J.46, subdivision 1, for 30 
 11.33  or more months during the first 60 months, the assistance unit 
 11.34  is no longer eligible to receive MFIP unless the caregiver 
 11.35  qualifies for a special exemption under subdivision 9. 
 11.36     (d) A caregiver who received months of TANF assistance 
 12.1   counted toward the federal 60-month time limit while the 
 12.2   caregiver met the state time limit exemption criteria in 
 12.3   subdivisions 4 and 5 is eligible for a hardship extension for a 
 12.4   period of time equal to the number of months counted toward the 
 12.5   federal 60-month time limit while the caregiver met the state 
 12.6   time limit exemption criteria in subdivisions 4 and 5. 
 12.7      Sec. 14.  Minnesota Statutes 2000, section 256J.42, is 
 12.8   amended by adding a subdivision to read: 
 12.9      Subd. 8.  [TREATMENT OF MONTHS IN ANOTHER STATE.] To be 
 12.10  eligible for a hardship extension under subdivision 7, any 
 12.11  caregiver who received TANF assistance from another state must 
 12.12  meet the following criteria.  If there is more than one 
 12.13  caregiver in the assistance unit who received TANF assistance 
 12.14  from another state, each caregiver must meet the following 
 12.15  criteria: 
 12.16     (1) the caregiver is in compliance; and 
 12.17     (2) the caregiver has been in compliance for more than half 
 12.18  of the months that the caregiver received TANF assistance in 
 12.19  Minnesota. 
 12.20     Sec. 15.  Minnesota Statutes 2000, section 256J.42, is 
 12.21  amended by adding a subdivision to read: 
 12.22     Subd. 9.  [SPECIAL EXEMPTION.] A caregiver whose case is 
 12.23  closed under subdivision 7, paragraph (b), may request a special 
 12.24  exemption.  The county, upon review of the request, must approve 
 12.25  a hardship extension for an assistance unit with a caregiver who 
 12.26  was sanctioned for noncompliance under section 256J.46, 
 12.27  subdivision 1, for 30 or more months during the first 60 months, 
 12.28  if the caregiver demonstrates that: 
 12.29     (1) the caregiver is working on the barriers which resulted 
 12.30  in the noncompliance and is in compliance in the 60th month and 
 12.31  was in compliance the preceding five calendar months.  If the 
 12.32  caregiver was not on MFIP for one or more months during the five 
 12.33  calendar months preceding the 60th month, the month or months 
 12.34  when the caregiver was not on MFIP count as months in 
 12.35  compliance; or 
 12.36     (2) the caregiver qualifies for an exemption under section 
 13.1   256J.56, paragraph (a), clauses (2), (3), (4), and (9). 
 13.2      Sec. 16.  Minnesota Statutes 2000, section 256J.42, is 
 13.3   amended by adding a subdivision to read: 
 13.4      Subd. 10.  [CASE REVIEW.] (a) Within 60 days of the end of 
 13.5   the participant's 60th month on MFIP, the job counselor must 
 13.6   review the participant's employment services plan to determine 
 13.7   if the plan is still appropriate. 
 13.8      (b) Before a participant's case is closed under this 
 13.9   section, the county must ensure that: 
 13.10     (1) the case has been reviewed by the job counselor's 
 13.11  supervisor or the review team designated in the county's 
 13.12  approved local service unit plan to determine if the criteria 
 13.13  for an extension or special exemption, if requested, were 
 13.14  appropriately applied; and 
 13.15     (2) a county representative attempted to meet with the 
 13.16  participant face-to-face. 
 13.17     (c) During the face-to-face meeting, the county 
 13.18  representative must: 
 13.19     (1) explain the extension criteria in subdivision 7, the 
 13.20  special exemption criteria in subdivision 9, and what the 
 13.21  participant should do if the participant thinks an extension or 
 13.22  special exemption applies; 
 13.23     (2) identify other resources that may be available to the 
 13.24  participant to meet the needs of the family; and 
 13.25     (3) inform the participant of the right to appeal the case 
 13.26  closure under section 256J.40. 
 13.27     (d) All cases extended beyond 60 months must be reviewed 
 13.28  every six months by the job counselor's supervisor or the review 
 13.29  team designated in the county's approved local service unit plan 
 13.30  to determine if the participant's employment services plan is 
 13.31  still appropriate. 
 13.32     Sec. 17.  Minnesota Statutes 2000, section 256J.42, is 
 13.33  amended by adding a subdivision to read: 
 13.34     Subd. 11.  [LENGTH OF EXTENSIONS.] (a) Assistance units 
 13.35  granted a hardship extension under subdivision 7, 8, or 9 may 
 13.36  continue to receive assistance under MFIP, as long as all 
 14.1   caregivers in the assistance unit remain in compliance with, or 
 14.2   are exempt from, the requirements in sections 256J.52 to 
 14.3   256J.55.  If any caregiver does not comply with the requirements 
 14.4   in sections 256J.52 to 256J.55, and is not exempt, the case must 
 14.5   be closed.  The first time a case that was granted a hardship 
 14.6   extension under subdivision 7, 8, or 9 is closed for 
 14.7   noncompliance, the case may be reopened if the noncompliant 
 14.8   caregiver complies with the requirements in sections 256J.52 to 
 14.9   256J.55.  The second or subsequent time a case that was granted 
 14.10  a hardship extension under subdivision 7, 8, or 9 is closed for 
 14.11  noncompliance, the assistance unit is no longer eligible to 
 14.12  receive MFIP unless the noncompliant caregiver demonstrates that:
 14.13     (1) the caregiver is working on the barriers which resulted 
 14.14  in the noncompliance; and 
 14.15     (2) the caregiver is working with a MFIP job counselor and 
 14.16  has been in compliance with the employment services plan for the 
 14.17  last six calendar months. 
 14.18     (b) If the caregiver is participating in FSET, months of 
 14.19  compliance with the food stamp employment and training program 
 14.20  employability development plan may be used to meet the 
 14.21  requirements in paragraph (a), clause (2).  If a case granted a 
 14.22  hardship extension under subdivision 7, 8, or 9 is closed for 
 14.23  reasons other than noncompliance, the assistance unit may 
 14.24  reapply for MFIP.  If the assistance unit meets the criteria in 
 14.25  sections 256J.10 and 256J.42, the case must be reopened. 
 14.26     Sec. 18.  Minnesota Statutes 2000, section 256J.46, 
 14.27  subdivision 1, is amended to read: 
 14.28     Subdivision 1.  [SANCTIONS FOR PARTICIPANTS NOT COMPLYING 
 14.29  WITH PROGRAM REQUIREMENTS.] (a) A participant who fails without 
 14.30  good cause to comply with the requirements of this chapter, and 
 14.31  who is not subject to a sanction under subdivision 2, shall be 
 14.32  subject to a sanction as provided in this subdivision. 
 14.33     (b) A participant who fails to comply with an alternative 
 14.34  employment plan must have the plan reviewed by a person trained 
 14.35  in domestic violence and a job counselor to determine if 
 14.36  components of the alternative employment plan are still 
 15.1   appropriate.  If the activities are no longer appropriate, the 
 15.2   plan must be revised with a person trained in domestic violence 
 15.3   and approved by a job counselor.  A participant who fails to 
 15.4   comply with a plan that is determined not to need revision will 
 15.5   lose their exemption and be required to comply with regular 
 15.6   employment services activities.  
 15.7      (c) A sanction under this subdivision becomes effective the 
 15.8   month following the month in which a required notice is given.  
 15.9   A sanction must not be imposed when a participant comes into 
 15.10  compliance with the requirements for orientation under section 
 15.11  256J.45 or third-party liability for medical services under 
 15.12  section 256J.30, subdivision 10, prior to the effective date of 
 15.13  the sanction.  A sanction must not be imposed when a participant 
 15.14  comes into compliance with the requirements for employment and 
 15.15  training services under sections 256J.49 to 256J.72 ten days 
 15.16  prior to the effective date of the sanction.  For purposes of 
 15.17  this subdivision, each month that a participant fails to comply 
 15.18  with a requirement of this chapter shall be considered a 
 15.19  separate occurrence of noncompliance.  A participant who has had 
 15.20  one or more sanctions imposed must remain in compliance with the 
 15.21  provisions of this chapter for six months in order for a 
 15.22  subsequent occurrence of noncompliance to be considered a first 
 15.23  occurrence.  
 15.24     (b) (d) Sanctions for noncompliance shall be imposed as 
 15.25  follows: 
 15.26     (1) For the first occurrence of noncompliance by a 
 15.27  participant in a single-parent household or by one participant 
 15.28  in a two-parent household, the assistance unit's grant shall be 
 15.29  reduced by ten percent of the MFIP standard of need for an 
 15.30  assistance unit of the same size with the residual grant paid to 
 15.31  the participant.  The reduction in the grant amount must be in 
 15.32  effect for a minimum of one month and shall be removed in the 
 15.33  month following the month that the participant returns to 
 15.34  compliance.  
 15.35     (2) For a second or subsequent occurrence of noncompliance, 
 15.36  or when both participants in a two-parent household are out of 
 16.1   compliance at the same time, the assistance unit's shelter costs 
 16.2   shall be vendor paid up to the amount of the cash portion of the 
 16.3   MFIP grant for which the participant's assistance unit is 
 16.4   eligible.  At county option, the assistance unit's utilities may 
 16.5   also be vendor paid up to the amount of the cash portion of the 
 16.6   MFIP grant remaining after vendor payment of the assistance 
 16.7   unit's shelter costs.  The residual amount of the grant after 
 16.8   vendor payment, if any, must be reduced by an amount equal to 30 
 16.9   percent of the MFIP standard of need for an assistance unit of 
 16.10  the same size before the residual grant is paid to the 
 16.11  assistance unit.  The reduction in the grant amount must be in 
 16.12  effect for a minimum of one month and shall be removed in the 
 16.13  month following the month that a participant in a one-parent 
 16.14  household returns to compliance.  In a two-parent household, the 
 16.15  grant reduction must be in effect for a minimum of one month and 
 16.16  shall be removed in the month following the month both 
 16.17  participants return to compliance.  The vendor payment of 
 16.18  shelter costs and, if applicable, utilities shall be removed six 
 16.19  months after the month in which the participant or participants 
 16.20  return to compliance. 
 16.21     (c) (e) No later than during the second month that a 
 16.22  sanction under paragraph (b) (d), clause (2), is in effect due 
 16.23  to noncompliance with employment services, the participant's 
 16.24  case file must be reviewed to determine if: 
 16.25     (i) (1) the continued noncompliance can be explained and 
 16.26  mitigated by providing a needed preemployment activity, as 
 16.27  defined in section 256J.49, subdivision 13, clause (16), or 
 16.28  services under a local intervention grant for self-sufficiency; 
 16.29     (ii) (2) the participant qualifies for a good cause 
 16.30  exception under section 256J.57; or 
 16.31     (iii) (3) the participant qualifies for an exemption under 
 16.32  section 256J.56; or 
 16.33     (4) the participant qualifies for a deferral under section 
 16.34  256J.52, subdivision 6. 
 16.35     If the lack of an identified activity can explain the 
 16.36  noncompliance, the county must work with the participant to 
 17.1   provide the identified activity, and the county must restore the 
 17.2   participant's grant amount to the full amount for which the 
 17.3   assistance unit is eligible.  The grant must be restored 
 17.4   retroactively to the first day of the month in which the 
 17.5   participant was found to lack preemployment activities or to 
 17.6   qualify for an exemption or, a good cause exception, or a family 
 17.7   violence deferral. 
 17.8      (f) If the participant is found to qualify for a good cause 
 17.9   exception or an exemption, or a family violence deferral, the 
 17.10  county must restore the participant's grant to the full amount 
 17.11  for which the assistance unit is eligible.  
 17.12     (g) When both parents in a two-parent household are out of 
 17.13  compliance, the first month of noncompliance counts as two 
 17.14  occurrences of noncompliance.  Each subsequent month of 
 17.15  noncompliance, either by one or both parents, counts as one 
 17.16  occurrence of noncompliance. 
 17.17     <b>[EFFECTIVE DATE.]</b> The family violence deferral provisions 
 17.18  in paragraphs (e) and (f) are effective October 1, 2001.  The 
 17.19  amendment in paragraph (b) is effective October 1, 2001, if the 
 17.20  alternative employment plan proposed in section 256J.49, 
 17.21  subdivision 1a, is enacted in the 2001 legislative session. 
 17.22     Sec. 19.  Minnesota Statutes 2000, section 256J.46, 
 17.23  subdivision 2a, is amended to read: 
 17.24     Subd. 2a.  [DUAL SANCTIONS.] (a) Notwithstanding the 
 17.25  provisions of subdivisions 1 and 2, for a participant subject to 
 17.26  a sanction for refusal to comply with child support requirements 
 17.27  under subdivision 2 and subject to a concurrent sanction for 
 17.28  refusal to cooperate with other program requirements under 
 17.29  subdivision 1, sanctions shall be imposed in the manner 
 17.30  prescribed in this subdivision. 
 17.31     A participant who has had one or more sanctions imposed 
 17.32  under this subdivision must remain in compliance with the 
 17.33  provisions of this chapter for six months in order for a 
 17.34  subsequent occurrence of noncompliance to be considered a first 
 17.35  occurrence.  Any vendor payment of shelter costs or utilities 
 17.36  under this subdivision must remain in effect for six months 
 18.1   after the month in which the participant is no longer subject to 
 18.2   sanction under subdivision 1. 
 18.3      (b) If the participant was subject to sanction for: 
 18.4      (i) noncompliance under subdivision 1 before being subject 
 18.5   to sanction for noncooperation under subdivision 2; or 
 18.6      (ii) noncooperation under subdivision 2 before being 
 18.7   subject to sanction for noncompliance under subdivision 1; 
 18.8   the participant shall be sanctioned as provided in subdivision 
 18.9   1, paragraph (b) (d), clause (2), and the requirement that the 
 18.10  county conduct a review as specified in subdivision 1, paragraph 
 18.11  (c) (e), remains in effect. 
 18.12     (c) A participant who first becomes subject to sanction 
 18.13  under both subdivisions 1 and 2 in the same month is subject to 
 18.14  sanction as follows: 
 18.15     (i) in the first month of noncompliance and noncooperation, 
 18.16  the participant's grant must be reduced by 25 percent of the 
 18.17  applicable MFIP standard of need, with any residual amount paid 
 18.18  to the participant; 
 18.19     (ii) in the second and subsequent months of noncompliance 
 18.20  and noncooperation, the participant shall be sanctioned as 
 18.21  provided in subdivision 1, paragraph (b) (d), clause (2). 
 18.22     The requirement that the county conduct a review as 
 18.23  specified in subdivision 1, paragraph (c) (e), remains in effect.
 18.24     (d) A participant remains subject to sanction under 
 18.25  subdivision 2 if the participant: 
 18.26     (i) returns to compliance and is no longer subject to 
 18.27  sanction under subdivision 1; or 
 18.28     (ii) has the sanction under subdivision 1, 
 18.29  paragraph (b) (d), removed upon completion of the review under 
 18.30  subdivision 1, paragraph (c) (e). 
 18.31     A participant remains subject to sanction under subdivision 
 18.32  1, paragraph (b) (d), if the participant cooperates and is no 
 18.33  longer subject to sanction under subdivision 2. 
 18.34     Sec. 20.  Minnesota Statutes 2000, section 256J.48, 
 18.35  subdivision 2, is amended to read: 
 18.36     Subd. 2.  [ELIGIBILITY.] (a) Notwithstanding other 
 19.1   eligibility provisions of this chapter, any family without 
 19.2   resources immediately available to meet emergency needs 
 19.3   identified in subdivision 3, except a family that is no longer 
 19.4   eligible for MFIP under section 256J.42 shall be eligible for an 
 19.5   emergency grant under the following conditions: 
 19.6      (1) a family member has resided in this state for at least 
 19.7   30 days; 
 19.8      (2) the family is without resources immediately available 
 19.9   to meet emergency needs; 
 19.10     (3) assistance is necessary to avoid destitution or provide 
 19.11  emergency shelter arrangements; 
 19.12     (4) the family's destitution or need for shelter or 
 19.13  utilities did not arise because the assistance unit is under 
 19.14  sanction, the caregiver is disqualified, or the child or 
 19.15  relative caregiver refused without good cause under section 
 19.16  256J.57 to accept employment or training for employment in this 
 19.17  state or another state; and 
 19.18     (5) at least one child or pregnant woman in the emergency 
 19.19  assistance unit meets MFIP citizenship requirements in section 
 19.20  256J.11. 
 19.21     (b) A family that is no longer eligible for MFIP under 
 19.22  section 256J.42, that is without resources immediately available 
 19.23  to meet emergency needs identified in subdivision 3, shall be 
 19.24  eligible for an emergency grant if the family's emergency did 
 19.25  not arise because the caregiver refused without good cause under 
 19.26  section 256J.57, to accept employment in this state or another 
 19.27  state and the family meets the conditions in paragraph (a), 
 19.28  clauses (1), (2), (3), and (5). 
 19.29     Sec. 21.  Minnesota Statutes 2000, section 256J.50, 
 19.30  subdivision 1, is amended to read: 
 19.31     Subdivision 1.  [EMPLOYMENT AND TRAINING SERVICES COMPONENT 
 19.32  OF MFIP.] (a) By January 1, 1998, each county must develop and 
 19.33  implement an employment and training services component of MFIP 
 19.34  which is designed to put participants on the most direct path to 
 19.35  unsubsidized employment.  Participation in these services is 
 19.36  mandatory for all MFIP caregivers, unless the caregiver is 
 20.1   exempt under section 256J.56. 
 20.2      (b) A county must provide employment and training services 
 20.3   under sections 256J.515 to 256J.74 within 30 days after the 
 20.4   caregiver's participation becomes mandatory under subdivision 
 20.5   5 or within 30 days of receipt of a request for services from a 
 20.6   caregiver who under section 256J.42, is no longer eligible to 
 20.7   receive MFIP but whose income is below 120 percent of the 
 20.8   federal poverty guidelines for a family of the same size.  The 
 20.9   request must be made within 12 months of the date the 
 20.10  caregivers' MFIP case was closed. 
 20.11     Sec. 22.  Minnesota Statutes 2000, section 256J.50, 
 20.12  subdivision 7, is amended to read: 
 20.13     Subd. 7.  [LOCAL SERVICE UNIT PLAN.] (a) Each local or 
 20.14  county service unit shall prepare and submit a plan as specified 
 20.15  in section 268.88. 
 20.16     (b) The plan must include a description of how projects 
 20.17  funded under the local intervention grants for self-sufficiency 
 20.18  in section 256J.625, subdivisions 2 and 3, operate in the local 
 20.19  service unit, including: 
 20.20     (1) the target populations of hard-to-employ participants 
 20.21  and, working participants in need of job retention and wage 
 20.22  advancement services, and caregivers who, within the last 12 
 20.23  months, have been determined under section 256J.42 to no longer 
 20.24  be eligible to receive MFIP and whose income is below 120 
 20.25  percent of the federal poverty guidelines for a family of the 
 20.26  same size, with a description of how individual participant 
 20.27  needs will be met; 
 20.28     (2) services that will be provided which may include paid 
 20.29  work experience, enhanced mental health services, outreach to 
 20.30  sanctioned families and to caregivers who, within the last 12 
 20.31  months, have been determined under section 256J.42 to no longer 
 20.32  be eligible to receive MFIP but whose income is below 120 
 20.33  percent of the federal poverty guidelines for a family of the 
 20.34  same size, child care for social services, child care transition 
 20.35  year set-aside, homeless and housing advocacy, and 
 20.36  transportation; 
 21.1      (3) projected expenditures by activity; 
 21.2      (4) anticipated program outcomes including the anticipated 
 21.3   impact the intervention efforts will have on performance 
 21.4   measures under section 256J.751 and on reducing the number of 
 21.5   MFIP participants expected to reach their 60-month time limit; 
 21.6   and 
 21.7      (5) a description of services that are provided or will be 
 21.8   provided to MFIP participants affected by chemical dependency, 
 21.9   mental health issues, learning disabilities, or family violence. 
 21.10     Each plan must demonstrate how the county or tribe is 
 21.11  working within its organization and with other organizations in 
 21.12  the community to serve hard-to-employ populations, including how 
 21.13  organizations in the community were engaged in planning for use 
 21.14  of these funds, services other entities will provide under the 
 21.15  plan, and whether multicounty or regional strategies are being 
 21.16  implemented as part of this plan. 
 21.17     (c) Activities and expenditures in the plan must enhance or 
 21.18  supplement MFIP activities without supplanting existing 
 21.19  activities and expenditures.  However, this paragraph does not 
 21.20  require a county to maintain either:  
 21.21     (1) its current provision of child care assistance to MFIP 
 21.22  families through the expenditure of county resources under 
 21.23  chapter 256E for social services child care assistance if funds 
 21.24  are appropriated by another law for an MFIP social services 
 21.25  child care pool; 
 21.26     (2) its current provision of transition-year child care 
 21.27  assistance through the expenditure of county resources if funds 
 21.28  are appropriated by another law for this purpose; or 
 21.29     (3) its current provision of intensive ESL programs through 
 21.30  the expenditure of county resources if funds are appropriated by 
 21.31  another law for intensive ESL grants. 
 21.32     (d) The plan required under this subdivision must be 
 21.33  approved before the local or county service unit is eligible to 
 21.34  receive funds under section 256J.625, subdivisions 2 and 3. 
 21.35     Sec. 23.  Minnesota Statutes 2000, section 256J.52, 
 21.36  subdivision 2, is amended to read: 
 22.1      Subd. 2.  [INITIAL ASSESSMENT.] (a) The job counselor must, 
 22.2   with the cooperation of the participant, assess the 
 22.3   participant's ability to obtain and retain employment.  This 
 22.4   initial assessment must include a review of the participant's 
 22.5   education level, prior employment or work experience, 
 22.6   transferable work skills, and existing job markets. 
 22.7      (b) In assessing the participant, the job counselor must 
 22.8   determine if the participant needs refresher courses for 
 22.9   professional certification or licensure, in which case, the job 
 22.10  search plan under subdivision 3 must include the courses 
 22.11  necessary to obtain the certification or licensure, in addition 
 22.12  to other work activities, provided the combination of the 
 22.13  courses and other work activities are at least for 40 hours per 
 22.14  week.  
 22.15     (c) If a participant can demonstrate to the satisfaction of 
 22.16  the county agency that lack of proficiency in English is a 
 22.17  barrier to obtaining suitable employment, the job counselor must 
 22.18  include participation in an intensive English as a second 
 22.19  language program if available or otherwise a regular English as 
 22.20  a second language program in the individual's employment plan 
 22.21  under subdivision 5.  Lack of proficiency in English is not 
 22.22  necessarily a barrier to employment.  
 22.23     (d) The job counselor may approve an education or training 
 22.24  plan, and postpone the job search requirement, if the 
 22.25  participant has a proposal for an education program which: 
 22.26     (1) can be completed within 12 24 months; and 
 22.27     (2) meets the criteria of section 256J.53, subdivisions 1, 
 22.28  2, 3, and 5; and 4. 
 22.29     (3) is likely, without additional training, to lead to 
 22.30  monthly employment earnings which, after subtraction of the 
 22.31  earnings disregard under section 256J.21, equal or exceed the 
 22.32  family wage level for the participant's assistance unit. 
 22.33     (e) A participant who, at the time of the initial 
 22.34  assessment, presents a plan that includes farming as a 
 22.35  self-employed work activity must have an employment plan 
 22.36  developed under subdivision 5 that includes the farming as an 
 23.1   approved work activity. 
 23.2      Sec. 24.  Minnesota Statutes 2000, section 256J.53, 
 23.3   subdivision 1, is amended to read: 
 23.4      Subdivision 1.  [LENGTH OF PROGRAM.] In order for a 
 23.5   post-secondary education or training program to be approved work 
 23.6   activity as defined in section 256J.49, subdivision 13, clause 
 23.7   (18), it must be a program lasting 12 24 months or less, and the 
 23.8   participant must meet the requirements of subdivisions 2 and, 3, 
 23.9   and 4.  A program lasting up to 24 months may be approved on an 
 23.10  exception basis if the conditions specified in subdivisions 2 to 
 23.11  4 are met.  A participant may not be approved for more than a 
 23.12  total of 24 months of post-secondary education or training. 
 23.13     Sec. 25.  Minnesota Statutes 2000, section 256J.62, 
 23.14  subdivision 9, is amended to read: 
 23.15     Subd. 9.  [CONTINUATION OF CERTAIN SERVICES.] At the 
 23.16  request of the caregiver participant, the county may continue to 
 23.17  provide case management, counseling, or other support services 
 23.18  to a participant following the participant's achievement of: 
 23.19     (1) who has achieved the employment goal,; or 
 23.20     (2) who under section 256J.42, is no longer eligible to 
 23.21  receive MFIP. 
 23.22     These services may be provided for up to 12 months 
 23.23  following termination of the participant's eligibility for 
 23.24  MFIP as long as the participant's household income is below 200 
 23.25  percent of the federal poverty guidelines. 
 23.26     A county may expend funds for a specific employment and 
 23.27  training service for the duration of that service to a 
 23.28  participant if the funds are obligated or expended prior to the 
 23.29  participant losing MFIP eligibility. 
 23.30     Sec. 26.  Minnesota Statutes 2000, section 256J.625, 
 23.31  subdivision 1, is amended to read: 
 23.32     Subdivision 1.  [ESTABLISHMENT; GUARANTEED MINIMUM 
 23.33  ALLOCATION.] (a) The commissioner shall make grants under this 
 23.34  subdivision to assist county and tribal TANF programs to more 
 23.35  effectively serve hard-to-employ MFIP participants and 
 23.36  caregivers who, within the last 12 months, have been determined 
 24.1   under section 256J.42, to no longer be eligible to receive MFIP 
 24.2   but whose income is below 120 percent of the federal poverty 
 24.3   guidelines for a family of the same size.  Funds appropriated 
 24.4   for local intervention grants for self-sufficiency must be 
 24.5   allocated first in amounts equal to the guaranteed minimum in 
 24.6   paragraph (b), and second according to the provisions of 
 24.7   subdivision 2.  Any remaining funds must be allocated according 
 24.8   to the formula in subdivision 3.  Counties or tribes must have 
 24.9   an approved local service unit plan under section 256J.50, 
 24.10  subdivision 7, paragraph (b), in order to receive and expend 
 24.11  funds under subdivisions 2 and 3.  
 24.12     (b) Each county or tribal program shall receive a 
 24.13  guaranteed minimum annual allocation of $25,000. 
 24.14     Sec. 27.  Minnesota Statutes 2000, section 256J.625, 
 24.15  subdivision 2, is amended to read: 
 24.16     Subd. 2.  [SET-ASIDE FUNDS.] (a) Of the funds appropriated 
 24.17  for grants under this section, after the allocation in 
 24.18  subdivision 1, paragraph (b), is made, 20 percent of the 
 24.19  remaining funds each year shall be retained by the commissioner 
 24.20  and awarded to counties or tribes whose approved plans 
 24.21  demonstrate additional need based on their identification of 
 24.22  hard-to-employ families and, working participants in need of job 
 24.23  retention and wage advancement services, and caregivers who are 
 24.24  no longer eligible to receive MFIP under section 256J.42, but 
 24.25  whose income is below 120 percent of the federal poverty 
 24.26  guidelines for a family of similar size, strong anticipated 
 24.27  outcomes for families and an effective plan for monitoring 
 24.28  performance, or, use of a multicounty, multi-entity or regional 
 24.29  approach to serve hard-to-employ families and, working 
 24.30  participants in need of job retention and wage advancement 
 24.31  services, and caregivers who, within the last 12 months, have 
 24.32  been determined to no longer be eligible to receive MFIP under 
 24.33  section 256J.42, but whose income is below 120 percent of the 
 24.34  federal poverty guidelines for a family of the same size, who 
 24.35  are identified as a target population to be served in the plan 
 24.36  submitted under section 256J.50, subdivision 7, paragraph (b).  
 25.1   In distributing funds under this paragraph, the commissioner 
 25.2   must achieve a geographic balance.  The commissioner may award 
 25.3   funds under this paragraph to other public, private, or 
 25.4   nonprofit entities to deliver services in a county or region 
 25.5   where the entity or entities submit a plan that demonstrates a 
 25.6   strong capability to fulfill the terms of the plan and where the 
 25.7   plan shows an innovative or multi-entity approach. 
 25.8      (b) For fiscal year 2001 only, of the funds available under 
 25.9   this subdivision the commissioner must allocate funding in the 
 25.10  amounts specified in article 1, section 2, subdivision 7, for an 
 25.11  intensive intervention transitional employment training project 
 25.12  and for nontraditional career assistance and training programs.  
 25.13  These allocations must occur before any set-aside funds are 
 25.14  allocated under paragraph (a). 
 25.15     Sec. 28.  Minnesota Statutes 2000, section 256J.625, 
 25.16  subdivision 4, is amended to read: 
 25.17     Subd. 4.  [USE OF FUNDS.] (a) A county or tribal program 
 25.18  may use funds allocated under this subdivision to provide 
 25.19  services to MFIP participants who are hard-to-employ and their 
 25.20  families.  Services provided must be intended to reduce the 
 25.21  number of MFIP participants who are expected to reach the 
 25.22  60-month time limit under section 256J.42.  Counties, tribes, 
 25.23  and other entities receiving funds under subdivision 2 or 3 must 
 25.24  submit semiannual progress reports to the commissioner which 
 25.25  detail program outcomes. 
 25.26     (b) Funds allocated under this section may not be used to 
 25.27  provide benefits that are defined as "assistance" in Code of 
 25.28  Federal Regulations, title 45, section 260.31, to an assistance 
 25.29  unit that is only receiving the food portion of MFIP benefits or 
 25.30  is no longer eligible to receive MFIP under section 256J.42. 
 25.31     (c) A county may use funds allocated under this section for 
 25.32  that part of the match for federal access to jobs transportation 
 25.33  funds that is TANF-eligible.  A county may also use funds 
 25.34  allocated under this section to enhance transportation choices 
 25.35  for eligible recipients up to 150 percent of the federal poverty 
 25.36  guidelines. 
 26.1      Sec. 29.  [REPEALER.] 
 26.2      Minnesota Statutes 2000, sections 256.01, subdivision 18; 
 26.3   256J.32, subdivision 7a; 256J.46, subdivision 1a; and 256J.53, 
 26.4   subdivision 4, are repealed.