1.1                          A bill for an act
  1.2             relating to human services; specifying TANF 
  1.3             maintenance of effort expenditures; specifying 
  1.4             procedures for legislative advisory commission review 
  1.5             of TANF maintenance of effort spending; amending 
  1.6             Minnesota Statutes 1998, sections 256.011, subdivision 
  1.7             3; 256.995, subdivision 1; and 256J.08, by adding a 
  1.8             subdivision; Minnesota Statutes 1999 Supplement, 
  1.9             sections 119B.02, subdivision 1; and 256.01, 
  1.10            subdivision 2; Laws 1999, chapter 245, article 1, 
  1.11            section 2, subdivision 10; proposing coding for new 
  1.12            law in Minnesota Statutes, chapters 3; and 256J. 
  1.13  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.14     Section 1.  [3.3006] [STATE TANF MOE EXPENDITURES; 
  1.15  EXPENDITURE REVIEW.] 
  1.16     Subdivision 1.  [DEFINITIONS.] The definitions in this 
  1.17  subdivision apply to this section. 
  1.18     (a) "TANF MOE" means the maintenance of effort for the TANF 
  1.19  block grant specified under United States Code, title 42, 
  1.20  section 609(a)(7). 
  1.21     (b) Unless otherwise specified, "commissioner" means the 
  1.22  commissioner of human services. 
  1.23     Subd. 2.  [STATE TANF MOE EXPENDITURES.] The state's TANF 
  1.24  MOE expenditure requirements under section 256J.025, must be met 
  1.25  unless the provisions of subdivisions 3 and 4 apply. 
  1.26     Subd. 3.  [INTERIM PROCEDURES.] If the commissioner 
  1.27  determines that state money appropriated for the programs under 
  1.28  section 256J.025 are insufficient to meet TANF MOE expenditure 
  1.29  requirements, and if the legislature is not or will not be in 
  2.1   session to take timely action to avoid a federal penalty, the 
  2.2   commissioner may report state expenditures from other allowable 
  2.3   sources as TANF MOE expenditures after the requirements of 
  2.4   subdivision 4 are met. 
  2.5      Subd. 4.  [LEGISLATIVE ADVISORY COMMISSION REVIEW.] The 
  2.6   commissioner may report state expenditures in addition to those 
  2.7   specified under section 256J.025 as state TANF MOE expenditures, 
  2.8   but only after the commissioner of finance has first submitted 
  2.9   the commissioner's recommendations for additional allowable 
  2.10  sources of state TANF MOE expenditures to the members of the 
  2.11  legislative advisory commission for their review and 
  2.12  recommendation for further review.  If the legislative advisory 
  2.13  commission does not act to request further review within ten 
  2.14  days, no further review by the legislative advisory commission 
  2.15  is required, and the commissioner of finance shall approve or 
  2.16  disapprove the additional sources of state TANF MOE 
  2.17  expenditures.  If any member of the commission requests further 
  2.18  review of the proposed TANF MOE expenditures, the governor shall 
  2.19  submit the commissioner's recommendations to the legislative 
  2.20  advisory commission for its review and recommendation.  Failure 
  2.21  or refusal of the commission to make a recommendation promptly 
  2.22  is a negative recommendation. 
  2.23     Subd. 5.  [FORECAST INCLUSION OF INTERIM CHANGES NOT 
  2.24  ALLOWED.] The commissioner of finance shall not incorporate any 
  2.25  changes in federal TANF expenditures or state expenditures for 
  2.26  TANF MOE that may result from reporting additional allowable 
  2.27  sources of state TANF MOE expenditures under the interim 
  2.28  procedures in this section into the February or November 
  2.29  forecasts required under section 16A.103, unless the 
  2.30  commissioner of finance has approved the additional sources of 
  2.31  expenditures under subdivision 4. 
  2.32     Sec. 2.  Minnesota Statutes 1999 Supplement, section 
  2.33  119B.02, subdivision 1, is amended to read: 
  2.34     Subdivision 1.  [CHILD CARE SERVICES.] The commissioner 
  2.35  shall develop standards for county and human services boards to 
  2.36  provide child care services to enable eligible families to 
  3.1   participate in employment, training, or education programs.  
  3.2   Within the limits of available appropriations, the commissioner 
  3.3   shall distribute money to counties to reduce the costs of child 
  3.4   care for eligible families.  The commissioner shall adopt rules 
  3.5   to govern the program in accordance with this section.  The 
  3.6   rules must establish a sliding schedule of fees for parents 
  3.7   receiving child care services.  The rules shall provide that 
  3.8   funds received as a lump sum payment of child support arrearages 
  3.9   shall not be counted as income to a family in the month received 
  3.10  but shall be prorated over the 12 months following receipt and 
  3.11  added to the family income during those months.  In the rules 
  3.12  adopted under this section, county and human services boards 
  3.13  shall be authorized to establish policies for payment of child 
  3.14  care spaces for absent children, when the payment is required by 
  3.15  the child's regular provider.  The rules shall not set a maximum 
  3.16  number of days for which absence payments can be made, but 
  3.17  instead shall direct the county agency to set limits and pay for 
  3.18  absences according to the prevailing market practice in the 
  3.19  county.  County policies for payment of absences shall be 
  3.20  subject to the approval of the commissioner.  The commissioner 
  3.21  shall maximize the use of federal money under ~~title I and title~~ 
  3.22  ~~IV of~~ Public Law Number 104-193, ~~the Personal Responsibility and~~ 
  3.23  ~~Work Opportunity Reconciliation Act of 1996, and other programs~~ 
  3.24  ~~that provide federal or state reimbursement for child care~~ 
  3.25  ~~services for low-income families who are in education, training,~~ 
  3.26  ~~job search, or other activities allowed under those~~ 
  3.27  ~~programs~~ Title VI.  Money appropriated under this section must 
  3.28  be coordinated with the programs that provide federal 
  3.29  reimbursement for child care services to accomplish this 
  3.30  purpose.  Federal reimbursement obtained must be allocated to 
  3.31  the county that spent money for child care that is federally 
  3.32  reimbursable under programs that provide federal reimbursement 
  3.33  for child care services.  The counties shall use the federal 
  3.34  money to expand child care services.  The commissioner may adopt 
  3.35  rules under chapter 14 to implement and coordinate federal 
  3.36  program requirements. 
  4.1      Sec. 3.  Minnesota Statutes 1999 Supplement, section 
  4.2   256.01, subdivision 2, is amended to read: 
  4.3      Subd. 2.  [SPECIFIC POWERS.] Subject to the provisions of 
  4.4   section 241.021, subdivision 2, the commissioner of human 
  4.5   services shall: 
  4.6      (1) Administer and supervise all forms of public assistance 
  4.7   provided for by state law and other welfare activities or 
  4.8   services as are vested in the commissioner.  Administration and 
  4.9   supervision of human services activities or services includes, 
  4.10  but is not limited to, assuring timely and accurate distribution 
  4.11  of benefits, completeness of service, and quality program 
  4.12  management.  In addition to administering and supervising human 
  4.13  services activities vested by law in the department, the 
  4.14  commissioner shall have the authority to: 
  4.15     (a) require county agency participation in training and 
  4.16  technical assistance programs to promote compliance with 
  4.17  statutes, rules, federal laws, regulations, and policies 
  4.18  governing human services; 
  4.19     (b) monitor, on an ongoing basis, the performance of county 
  4.20  agencies in the operation and administration of human services, 
  4.21  enforce compliance with statutes, rules, federal laws, 
  4.22  regulations, and policies governing welfare services and promote 
  4.23  excellence of administration and program operation; 
  4.24     (c) develop a quality control program or other monitoring 
  4.25  program to review county performance and accuracy of benefit 
  4.26  determinations; 
  4.27     (d) require county agencies to make an adjustment to the 
  4.28  public assistance benefits issued to any individual consistent 
  4.29  with federal law and regulation and state law and rule and to 
  4.30  issue or recover benefits as appropriate; 
  4.31     (e) delay or deny payment of all or part of the state and 
  4.32  federal share of benefits and administrative reimbursement 
  4.33  according to the procedures set forth in section 256.017; 
  4.34     (f) make contracts with and grants to public and private 
  4.35  agencies and organizations, both profit and nonprofit, and 
  4.36  individuals, using appropriated funds; and 
  5.1      (g) enter into contractual agreements with federally 
  5.2   recognized Indian tribes with a reservation in Minnesota to the 
  5.3   extent necessary for the tribe to operate a federally approved 
  5.4   family assistance program or any other program under the 
  5.5   supervision of the commissioner.  The commissioner shall consult 
  5.6   with the affected county or counties in the contractual 
  5.7   agreement negotiations, if the county or counties wish to be 
  5.8   included, in order to avoid the duplication of county and tribal 
  5.9   assistance program services.  The commissioner may establish 
  5.10  necessary accounts for the purposes of receiving and disbursing 
  5.11  funds as necessary for the operation of the programs. 
  5.12     (2) Inform county agencies, on a timely basis, of changes 
  5.13  in statute, rule, federal law, regulation, and policy necessary 
  5.14  to county agency administration of the programs. 
  5.15     (3) Administer and supervise all child welfare activities; 
  5.16  promote the enforcement of laws protecting handicapped, 
  5.17  dependent, neglected and delinquent children, and children born 
  5.18  to mothers who were not married to the children's fathers at the 
  5.19  times of the conception nor at the births of the children; 
  5.20  license and supervise child-caring and child-placing agencies 
  5.21  and institutions; supervise the care of children in boarding and 
  5.22  foster homes or in private institutions; and generally perform 
  5.23  all functions relating to the field of child welfare now vested 
  5.24  in the state board of control. 
  5.25     (4) Administer and supervise all noninstitutional service 
  5.26  to handicapped persons, including those who are visually 
  5.27  impaired, hearing impaired, or physically impaired or otherwise 
  5.28  handicapped.  The commissioner may provide and contract for the 
  5.29  care and treatment of qualified indigent children in facilities 
  5.30  other than those located and available at state hospitals when 
  5.31  it is not feasible to provide the service in state hospitals. 
  5.32     (5) Assist and actively cooperate with other departments, 
  5.33  agencies and institutions, local, state, and federal, by 
  5.34  performing services in conformity with the purposes of Laws 
  5.35  1939, chapter 431. 
  5.36     (6) Act as the agent of and cooperate with the federal 
  6.1   government in matters of mutual concern relative to and in 
  6.2   conformity with the provisions of Laws 1939, chapter 431, 
  6.3   including the administration of any federal funds granted to the 
  6.4   state to aid in the performance of any functions of the 
  6.5   commissioner as specified in Laws 1939, chapter 431, and 
  6.6   including the promulgation of rules making uniformly available 
  6.7   medical care benefits to all recipients of public assistance, at 
  6.8   such times as the federal government increases its participation 
  6.9   in assistance expenditures for medical care to recipients of 
  6.10  public assistance, the cost thereof to be borne in the same 
  6.11  proportion as are grants of aid to said recipients. 
  6.12     (7) Establish and maintain any administrative units 
  6.13  reasonably necessary for the performance of administrative 
  6.14  functions common to all divisions of the department. 
  6.15     (8) Act as designated guardian of both the estate and the 
  6.16  person of all the wards of the state of Minnesota, whether by 
  6.17  operation of law or by an order of court, without any further 
  6.18  act or proceeding whatever, except as to persons committed as 
  6.19  mentally retarded.  For children under the guardianship of the 
  6.20  commissioner whose interests would be best served by adoptive 
  6.21  placement, the commissioner may contract with a licensed 
  6.22  child-placing agency to provide adoption services.  A contract 
  6.23  with a licensed child-placing agency must be designed to 
  6.24  supplement existing county efforts and may not replace existing 
  6.25  county programs, unless the replacement is agreed to by the 
  6.26  county board and the appropriate exclusive bargaining 
  6.27  representative or the commissioner has evidence that child 
  6.28  placements of the county continue to be substantially below that 
  6.29  of other counties.  Funds encumbered and obligated under an 
  6.30  agreement for a specific child shall remain available until the 
  6.31  terms of the agreement are fulfilled or the agreement is 
  6.32  terminated. 
  6.33     (9) Act as coordinating referral and informational center 
  6.34  on requests for service for newly arrived immigrants coming to 
  6.35  Minnesota. 
  6.36     (10) The specific enumeration of powers and duties as 
  7.1   hereinabove set forth shall in no way be construed to be a 
  7.2   limitation upon the general transfer of powers herein contained. 
  7.3      (11) Establish county, regional, or statewide schedules of 
  7.4   maximum fees and charges which may be paid by county agencies 
  7.5   for medical, dental, surgical, hospital, nursing and nursing 
  7.6   home care and medicine and medical supplies under all programs 
  7.7   of medical care provided by the state and for congregate living 
  7.8   care under the income maintenance programs. 
  7.9      (12) Have the authority to conduct and administer 
  7.10  experimental projects to test methods and procedures of 
  7.11  administering assistance and services to recipients or potential 
  7.12  recipients of public welfare.  To carry out such experimental 
  7.13  projects, it is further provided that the commissioner of human 
  7.14  services is authorized to waive the enforcement of existing 
  7.15  specific statutory program requirements, rules, and standards in 
  7.16  one or more counties.  The order establishing the waiver shall 
  7.17  provide alternative methods and procedures of administration, 
  7.18  shall not be in conflict with the basic purposes, coverage, or 
  7.19  benefits provided by law, and in no event shall the duration of 
  7.20  a project exceed four years.  It is further provided that no 
  7.21  order establishing an experimental project as authorized by the 
  7.22  provisions of this section shall become effective until the 
  7.23  following conditions have been met: 
  7.24     (a) The secretary of health and human services of the 
  7.25  United States has agreed, for the same project, to waive state 
  7.26  plan requirements relative to statewide uniformity. 
  7.27     (b) A comprehensive plan, including estimated project 
  7.28  costs, shall be approved by the legislative advisory commission 
  7.29  and filed with the commissioner of administration.  
  7.30     (13) According to federal requirements, establish 
  7.31  procedures to be followed by local welfare boards in creating 
  7.32  citizen advisory committees, including procedures for selection 
  7.33  of committee members. 
  7.34     (14) Allocate federal fiscal disallowances or sanctions 
  7.35  which are based on quality control error rates for the aid to 
  7.36  families with dependent children program formerly codified in 
  8.1   sections 256.72 to 256.87, medical assistance, or food stamp 
  8.2   program in the following manner:  
  8.3      (a) One-half of the total amount of the disallowance shall 
  8.4   be borne by the county boards responsible for administering the 
  8.5   programs.  For the medical assistance and the AFDC program 
  8.6   formerly codified in sections 256.72 to 256.87, disallowances 
  8.7   shall be shared by each county board in the same proportion as 
  8.8   that county's expenditures for the sanctioned program are to the 
  8.9   total of all counties' expenditures for the AFDC program 
  8.10  formerly codified in sections 256.72 to 256.87, and medical 
  8.11  assistance programs.  For the food stamp program, sanctions 
  8.12  shall be shared by each county board, with 50 percent of the 
  8.13  sanction being distributed to each county in the same proportion 
  8.14  as that county's administrative costs for food stamps are to the 
  8.15  total of all food stamp administrative costs for all counties, 
  8.16  and 50 percent of the sanctions being distributed to each county 
  8.17  in the same proportion as that county's value of food stamp 
  8.18  benefits issued are to the total of all benefits issued for all 
  8.19  counties.  Each county shall pay its share of the disallowance 
  8.20  to the state of Minnesota.  When a county fails to pay the 
  8.21  amount due hereunder, the commissioner may deduct the amount 
  8.22  from reimbursement otherwise due the county, or the attorney 
  8.23  general, upon the request of the commissioner, may institute 
  8.24  civil action to recover the amount due. 
  8.25     (b) Notwithstanding the provisions of paragraph (a), if the 
  8.26  disallowance results from knowing noncompliance by one or more 
  8.27  counties with a specific program instruction, and that knowing 
  8.28  noncompliance is a matter of official county board record, the 
  8.29  commissioner may require payment or recover from the county or 
  8.30  counties, in the manner prescribed in paragraph (a), an amount 
  8.31  equal to the portion of the total disallowance which resulted 
  8.32  from the noncompliance, and may distribute the balance of the 
  8.33  disallowance according to paragraph (a).  
  8.34     (15) Develop and implement special projects that maximize 
  8.35  reimbursements, other than federal TANF funds, and result in the 
  8.36  recovery of money to the state.  For the purpose of recovering 
  9.1   state money, the commissioner may enter into contracts with 
  9.2   third parties.  Any recoveries that result from projects or 
  9.3   contracts entered into under this paragraph shall be deposited 
  9.4   in the state treasury and credited to a special account until 
  9.5   the balance in the account reaches $1,000,000.  When the balance 
  9.6   in the account exceeds $1,000,000, the excess shall be 
  9.7   transferred and credited to the general fund.  All money in the 
  9.8   account is appropriated to the commissioner for the purposes of 
  9.9   this paragraph. 
  9.10     (16) Have the authority to make direct payments to 
  9.11  facilities providing shelter to women and their children 
  9.12  according to section 256D.05, subdivision 3.  Upon the written 
  9.13  request of a shelter facility that has been denied payments 
  9.14  under section 256D.05, subdivision 3, the commissioner shall 
  9.15  review all relevant evidence and make a determination within 30 
  9.16  days of the request for review regarding issuance of direct 
  9.17  payments to the shelter facility.  Failure to act within 30 days 
  9.18  shall be considered a determination not to issue direct payments.
  9.19     (17) Have the authority to establish and enforce the 
  9.20  following county reporting requirements:  
  9.21     (a) The commissioner shall establish fiscal and statistical 
  9.22  reporting requirements necessary to account for the expenditure 
  9.23  of funds allocated to counties for human services programs.  
  9.24  When establishing financial and statistical reporting 
  9.25  requirements, the commissioner shall evaluate all reports, in 
  9.26  consultation with the counties, to determine if the reports can 
  9.27  be simplified or the number of reports can be reduced. 
  9.28     (b) The county board shall submit monthly or quarterly 
  9.29  reports to the department as required by the commissioner.  
  9.30  Monthly reports are due no later than 15 working days after the 
  9.31  end of the month.  Quarterly reports are due no later than 30 
  9.32  calendar days after the end of the quarter, unless the 
  9.33  commissioner determines that the deadline must be shortened to 
  9.34  20 calendar days to avoid jeopardizing compliance with federal 
  9.35  deadlines or risking a loss of federal funding.  Only reports 
  9.36  that are complete, legible, and in the required format shall be 
 10.1   accepted by the commissioner.  
 10.2      (c) If the required reports are not received by the 
 10.3   deadlines established in clause (b), the commissioner may delay 
 10.4   payments and withhold funds from the county board until the next 
 10.5   reporting period.  When the report is needed to account for the 
 10.6   use of federal funds and the late report results in a reduction 
 10.7   in federal funding, the commissioner shall withhold from the 
 10.8   county boards with late reports an amount equal to the reduction 
 10.9   in federal funding until full federal funding is received.  
 10.10     (d) A county board that submits reports that are late, 
 10.11  illegible, incomplete, or not in the required format for two out 
 10.12  of three consecutive reporting periods is considered 
 10.13  noncompliant.  When a county board is found to be noncompliant, 
 10.14  the commissioner shall notify the county board of the reason the 
 10.15  county board is considered noncompliant and request that the 
 10.16  county board develop a corrective action plan stating how the 
 10.17  county board plans to correct the problem.  The corrective 
 10.18  action plan must be submitted to the commissioner within 45 days 
 10.19  after the date the county board received notice of noncompliance.
 10.20     (e) The final deadline for fiscal reports or amendments to 
 10.21  fiscal reports is one year after the date the report was 
 10.22  originally due.  If the commissioner does not receive a report 
 10.23  by the final deadline, the county board forfeits the funding 
 10.24  associated with the report for that reporting period and the 
 10.25  county board must repay any funds associated with the report 
 10.26  received for that reporting period. 
 10.27     (f) The commissioner may not delay payments, withhold 
 10.28  funds, or require repayment under paragraph (c) or (e) if the 
 10.29  county demonstrates that the commissioner failed to provide 
 10.30  appropriate forms, guidelines, and technical assistance to 
 10.31  enable the county to comply with the requirements.  If the 
 10.32  county board disagrees with an action taken by the commissioner 
 10.33  under paragraph (c) or (e), the county board may appeal the 
 10.34  action according to sections 14.57 to 14.69. 
 10.35     (g) Counties subject to withholding of funds under 
 10.36  paragraph (c) or forfeiture or repayment of funds under 
 11.1   paragraph (e) shall not reduce or withhold benefits or services 
 11.2   to clients to cover costs incurred due to actions taken by the 
 11.3   commissioner under paragraph (c) or (e). 
 11.4      (18) Allocate federal fiscal disallowances or sanctions for 
 11.5   audit exceptions when federal fiscal disallowances or sanctions 
 11.6   are based on a statewide random sample for the foster care 
 11.7   program under title IV-E of the Social Security Act, United 
 11.8   States Code, title 42, in direct proportion to each county's 
 11.9   title IV-E foster care maintenance claim for that period. 
 11.10     (19) Be responsible for ensuring the detection, prevention, 
 11.11  investigation, and resolution of fraudulent activities or 
 11.12  behavior by applicants, recipients, and other participants in 
 11.13  the human services programs administered by the department. 
 11.14     (20) Require county agencies to identify overpayments, 
 11.15  establish claims, and utilize all available and cost-beneficial 
 11.16  methodologies to collect and recover these overpayments in the 
 11.17  human services programs administered by the department. 
 11.18     (21) Have the authority to administer a drug rebate program 
 11.19  for drugs purchased pursuant to the senior citizen drug program 
 11.20  established under section 256.955 after the beneficiary's 
 11.21  satisfaction of any deductible established in the program.  The 
 11.22  commissioner shall require a rebate agreement from all 
 11.23  manufacturers of covered drugs as defined in section 256B.0625, 
 11.24  subdivision 13.  For each drug, the amount of the rebate shall 
 11.25  be equal to the basic rebate as defined for purposes of the 
 11.26  federal rebate program in United States Code, title 42, section 
 11.27  1396r-8(c)(1).  This basic rebate shall be applied to 
 11.28  single-source and multiple-source drugs.  The manufacturers must 
 11.29  provide full payment within 30 days of receipt of the state 
 11.30  invoice for the rebate within the terms and conditions used for 
 11.31  the federal rebate program established pursuant to section 1927 
 11.32  of title XIX of the Social Security Act.  The manufacturers must 
 11.33  provide the commissioner with any information necessary to 
 11.34  verify the rebate determined per drug.  The rebate program shall 
 11.35  utilize the terms and conditions used for the federal rebate 
 11.36  program established pursuant to section 1927 of title XIX of the 
 12.1   Social Security Act. 
 12.2      (22) Operate the department's communication systems account 
 12.3   established in Laws 1993, First Special Session chapter 1, 
 12.4   article 1, section 2, subdivision 2, to manage shared 
 12.5   communication costs necessary for the operation of the programs 
 12.6   the commissioner supervises.  A communications account may also 
 12.7   be established for each regional treatment center which operates 
 12.8   communications systems.  Each account must be used to manage 
 12.9   shared communication costs necessary for the operations of the 
 12.10  programs the commissioner supervises.  The commissioner may 
 12.11  distribute the costs of operating and maintaining communication 
 12.12  systems to participants in a manner that reflects actual usage. 
 12.13  Costs may include acquisition, licensing, insurance, 
 12.14  maintenance, repair, staff time and other costs as determined by 
 12.15  the commissioner.  Nonprofit organizations and state, county, 
 12.16  and local government agencies involved in the operation of 
 12.17  programs the commissioner supervises may participate in the use 
 12.18  of the department's communications technology and share in the 
 12.19  cost of operation.  The commissioner may accept on behalf of the 
 12.20  state any gift, bequest, devise or personal property of any 
 12.21  kind, or money tendered to the state for any lawful purpose 
 12.22  pertaining to the communication activities of the department.  
 12.23  Any money received for this purpose must be deposited in the 
 12.24  department's communication systems accounts.  Money collected by 
 12.25  the commissioner for the use of communication systems must be 
 12.26  deposited in the state communication systems account and is 
 12.27  appropriated to the commissioner for purposes of this section. 
 12.28     (23) Receive any federal matching money that is made 
 12.29  available through the medical assistance program for the 
 12.30  consumer satisfaction survey.  Any federal money received for 
 12.31  the survey is appropriated to the commissioner for this 
 12.32  purpose.  The commissioner may expend the federal money received 
 12.33  for the consumer satisfaction survey in either year of the 
 12.34  biennium. 
 12.35     (24) Incorporate cost reimbursement claims from First Call 
 12.36  Minnesota into the federal cost reimbursement claiming processes 
 13.1   of the department according to federal law, rule, and 
 13.2   regulations.  Any reimbursement received is appropriated to the 
 13.3   commissioner and shall be disbursed to First Call Minnesota 
 13.4   according to normal department payment schedules. 
 13.5      (25) Develop recommended standards for foster care homes 
 13.6   that address the components of specialized therapeutic services 
 13.7   to be provided by foster care homes with those services. 
 13.8      Sec. 4.  Minnesota Statutes 1998, section 256.011, 
 13.9   subdivision 3, is amended to read: 
 13.10     Subd. 3.  The commissioner of human services shall 
 13.11  negotiate with the federal government, or any agency, bureau, or 
 13.12  department thereof, for the purpose of securing or obtaining any 
 13.13  grants or aids.  Any grants or aids thus secured or received are 
 13.14  appropriated to the commissioner of human services and made 
 13.15  available for the uses and purposes for which they were received 
 13.16  but shall be used to reduce the direct appropriations provided 
 13.17  by law unless: 
 13.18     (1) federal law prohibits such action; 
 13.19     (2) the grants or aids are federal TANF funds; or ~~unless~~ 
 13.20     (3) the commissioner of human services obtains approval of 
 13.21  the governor who shall seek the advice of the legislative 
 13.22  advisory commission. 
 13.23     Sec. 5.  Minnesota Statutes 1998, section 256.995, 
 13.24  subdivision 1, is amended to read: 
 13.25     Subdivision 1.  [PROGRAM ESTABLISHED.] In order to enhance 
 13.26  the delivery of needed services to at-risk children and youth 
 13.27  and maximize federal funds, other than federal TANF funds, 
 13.28  available for that purpose, the commissioners of human services 
 13.29  and children, families, and learning shall design a statewide 
 13.30  program of collaboration between providers of health and social 
 13.31  services for children and local school districts, to be 
 13.32  financed, to the greatest extent possible, from federal 
 13.33  sources.  The commissioners of health and public safety shall 
 13.34  assist the commissioners of human services and children, 
 13.35  families, and learning in designing the program. 
 13.36     Sec. 6.  [256J.025] [TANF MAINTENANCE OF EFFORT.] 
 14.1      Subdivision 1.  [SOURCES OF STATE MONEY FOR TANF MOE.] In 
 14.2   order to meet the basic maintenance of effort (MOE) requirements 
 14.3   of the TANF block grant specified under United States Code, 
 14.4   title 42, section 609(a)(7), the commissioner may only report 
 14.5   state money appropriated in clauses (1) to (4) as TANF MOE 
 14.6   expenditures: 
 14.7      (1) MFIP cash assistance benefits under this chapter; 
 14.8      (2) MFIP child care assistance under section 119B.05; 
 14.9      (3) state, county, and tribal MFIP administrative costs 
 14.10  under this chapter; and 
 14.11     (4) state, county, and tribal MFIP employment services 
 14.12  activities under sections 256J.62 to 256J.67 and 256J.69. 
 14.13     Subd. 2.  [SUFFICIENT QUALIFIED STATE EXPENDITURES REQUIRED 
 14.14  ANNUALLY.] (a) The commissioner shall ensure that sufficient 
 14.15  qualified state expenditures are made each year to meet the 
 14.16  state's TANF MOE requirements.  If state money appropriated for 
 14.17  the programs and purposes listed in subdivision 1 are 
 14.18  insufficient to meet the state's TANF MOE requirements, the 
 14.19  commissioner shall recommend additional allowable sources of 
 14.20  state expenditures to the legislature, if the legislature is or 
 14.21  will be in session to take action to specify additional sources 
 14.22  of state money for TANF MOE before a federal penalty is 
 14.23  imposed.  The commissioner shall otherwise provide 
 14.24  recommendations to the legislative advisory commission under 
 14.25  section 3.3006. 
 14.26     (b) If the commissioner uses authority granted under Laws 
 14.27  1999, chapter 245, article 1, section 10, or similar authority 
 14.28  granted by a subsequent legislature, to meet the state's TANF 
 14.29  MOE requirements in a reporting period, the commissioner shall 
 14.30  inform the chairs of the appropriate legislative committees 
 14.31  about all transfers made under that authority for this purpose. 
 14.32     Sec. 7. Minnesota Statutes 1998, section 256J.08, is 
 14.33  amended by adding a subdivision to read: 
 14.34     Subd. 84a.  [TANF MOE.] "TANF MOE" means the maintenance of 
 14.35  effort for the TANF block grant specified under United States 
 14.36  Code, title 42, section 609(a)(7). 
 15.1      Sec. 8.  Laws 1999, chapter 245, article 1, section 2, 
 15.2   subdivision 10, is amended to read: 
 15.3   Subd. 10.  Economic Support Grants
 15.4   General             142,037,000   124,758,000
 15.5   [GIFTS.] Notwithstanding Minnesota 
 15.6   Statutes, chapter 7, the commissioner 
 15.7   may accept on behalf of the state 
 15.8   additional funding from sources other 
 15.9   than state funds for the purpose of 
 15.10  financing the cost of assistance 
 15.11  program grants or nongrant 
 15.12  administration.  All additional funding 
 15.13  is appropriated to the commissioner for 
 15.14  use as designated by the grantee of 
 15.15  funding. 
 15.16  [CHILD SUPPORT PAYMENT CENTER 
 15.17  RECOUPMENT ACCOUNT.] The child support 
 15.18  payment center is authorized to 
 15.19  establish an account to cover checks 
 15.20  issued in error or in cases where 
 15.21  insufficient funds are available to pay 
 15.22  the checks.  All recoupments against 
 15.23  payments from the account must be 
 15.24  deposited in the child support payment 
 15.25  center recoupment account and are 
 15.26  appropriated to the commissioner for 
 15.27  the purposes of the account.  Any 
 15.28  unexpended balance in the account does 
 15.29  not cancel, but is available until 
 15.30  expended. 
 15.31  [FEDERAL TANF FUNDS.] (1) Federal 
 15.32  Temporary Assistance for Needy Families 
 15.33  block grant funds authorized under 
 15.34  title I, Public Law Number 104-193, the 
 15.35  Personal Responsibility and Work 
 15.36  Opportunity Reconciliation Act of 1996, 
 15.37  and awarded in federal fiscal years 
 15.38  1997 to 2002 are appropriated to the 
 15.39  commissioner in amounts up to 
 15.40  $256,265,000 is fiscal year 2000 and 
 15.41  $249,682,000 in fiscal year 2001.  In 
 15.42  addition to these funds, the 
 15.43  commissioner may draw or transfer any 
 15.44  other appropriations or transfers of 
 15.45  federal TANF block grant funds that are 
 15.46  enacted into state law. 
 15.47  (2) Of the amounts in clause (1), 
 15.48  $15,000,000 is transferred each year of 
 15.49  the biennium to the state's federal 
 15.50  Title XX block grant.  Notwithstanding 
 15.51  the provisions of Minnesota Statutes, 
 15.52  section 256E.07, in each year of the 
 15.53  biennium the commissioner shall 
 15.54  allocate $15,000,000 of the state's 
 15.55  Title XX block grant funds based on the 
 15.56  community social services aids formula 
 15.57  in Minnesota Statutes, section 
 15.58  256E.06.  The commissioner shall ensure 
 15.59  that money allocated to counties under 
 15.60  this provision is used according to the 
 15.61  requirements of United States Code, 
 15.62  title 42, section 604(d)(3)(B).  
 15.63  (3) Of the amounts in clause (1), 
 16.1   $10,990,000 is transferred each year 
 16.2   from the state's federal TANF block 
 16.3   grant to the state's federal Title XX 
 16.4   block grant.  In each year $140,000 is 
 16.5   for grants according to Minnesota 
 16.6   Statutes, section 257.3571, subdivision 
 16.7   2a, to the Indian child welfare defense 
 16.8   corporation to promote statewide 
 16.9   compliance with the Indian Child 
 16.10  Welfare Act of 1978; $4,650,000 is for 
 16.11  grants to counties for concurrent 
 16.12  permanency planning; and $6,200,000 is 
 16.13  for the commissioner to distribute 
 16.14  according to the formula in Minnesota 
 16.15  Statutes, section 256E.07.  The 
 16.16  commissioner shall ensure that money 
 16.17  allocated under this clause is used 
 16.18  according to the requirements of United 
 16.19  States Code, title 42, section 
 16.20  604(d)(3)(B).  In fiscal years 2002 and 
 16.21  2003, $140,000 per year is for grants 
 16.22  according to Minnesota Statutes, 
 16.23  section 257.3571, subdivision 2a, to 
 16.24  the Indian child welfare defense 
 16.25  corporation to promote statewide 
 16.26  compliance with the Indian Child 
 16.27  Welfare Act of 1978.  Section 13, 
 16.28  sunset of uncodified language, does not 
 16.29  apply to this provision. 
 16.30  (4) Of the amounts in clause (1), 
 16.31  $13,360,000 each year is for increased 
 16.32  employment and training efforts and 
 16.33  shall be expended as follows: 
 16.34  (a) $140,000 each year is for a grant 
 16.35  to the new chance program.  The new 
 16.36  chance program shall provide 
 16.37  comprehensive services through a 
 16.38  private, nonprofit agency to young 
 16.39  parents in Hennepin county who have 
 16.40  dropped out of school and are receiving 
 16.41  public assistance.  The program 
 16.42  administrator shall report annually to 
 16.43  the commissioner on skills development, 
 16.44  education, job training, and job 
 16.45  placement outcomes for program 
 16.46  participants.  This appropriation is 
 16.47  available for either year of the 
 16.48  biennium. 
 16.49  (b) $260,000 each year is for grants to 
 16.50  counties to operate the parents fair 
 16.51  share program to assist unemployed, 
 16.52  noncustodial parents with job search 
 16.53  and parenting skills. 
 16.54  (c) $12,960,000 each year is to 
 16.55  increase employment and training 
 16.56  services grants for MFIP of which 
 16.57  $750,000 each year is to be transferred 
 16.58  to the job skills partnership board for 
 16.59  the health care and human services 
 16.60  worker training and retention program. 
 16.61  (d) $10,400,000 of these appropriations 
 16.62  shall become part of the base for the 
 16.63  2002-2003 biennium. 
 16.64  (5) Of the amounts in clause (1), 
 16.65  $1,094,000 in fiscal year 2000 and 
 17.1   $1,676,000 in fiscal year 2001 is 
 17.2   transferred from the state's federal 
 17.3   TANF block grant to the state's federal 
 17.4   child care and development fund block 
 17.5   grant, and is appropriated to the 
 17.6   commissioner of children, families, and 
 17.7   learning for the purposes of Minnesota 
 17.8   Statutes, section 119B.05. 
 17.9   (6) Of the amounts in clause (1), 
 17.10  $1,000,000 for the biennium is for the 
 17.11  purposes of creating and expanding 
 17.12  adult-supervised supportive living 
 17.13  arrangement services under Minnesota 
 17.14  Statutes, section 256J.14.  The 
 17.15  commissioner shall request proposals 
 17.16  from interested parties that have 
 17.17  knowledge and experience in the area of 
 17.18  adult-supervised adolescent housing and 
 17.19  supportive services, and award grants 
 17.20  for the purpose of either expanding 
 17.21  existing or creating new living 
 17.22  arrangements and supportive services.  
 17.23  Minor parents who are MFIP participants 
 17.24  shall be given priority for housing, 
 17.25  and excess living arrangements may be 
 17.26  used by minor parents who are not MFIP 
 17.27  participants. 
 17.28  (7) In order to maximize transfers from 
 17.29  Minnesota's 1998 and 1999 federal TANF 
 17.30  block grant awards, the commissioner 
 17.31  may implement the transfers of TANF 
 17.32  funds in clauses (2), (3), and (5) in 
 17.33  the first year of the biennium.  This 
 17.34  must only be done to the extent allowed 
 17.35  by federal law and to the extent that 
 17.36  program funding requirements can be met 
 17.37  in the second year of the biennium. 
 17.38  ~~(8) The commissioner shall ensure that~~ 
 17.39  ~~sufficient qualified state expenditures~~ 
 17.40  ~~are made each year to meet the TANF~~ 
 17.41  ~~basic maintenance of effort~~ 
 17.42  ~~requirements.  The commissioner may~~ 
 17.43  ~~apply any allowable source of state~~ 
 17.44  ~~expenditures toward these requirements,~~ 
 17.45  ~~as necessary to meet minimum basic~~ 
 17.46  ~~maintenance of effort requirements and~~ 
 17.47  ~~to prevent the loss of federal funds.~~ 
 17.48  [WORKER TRAINING AND RETENTION 
 17.49  ELIGIBILITY PROCEDURES.] The 
 17.50  commissioner shall develop eligibility 
 17.51  procedures for TANF expenditures under 
 17.52  Minnesota Statutes, section 256J.02, 
 17.53  subdivision 2, clause (5). 
 17.54  The amounts that may be spent from this 
 17.55  appropriation for each purpose are as 
 17.56  follows: 
 17.57  (a) Assistance to Families Grants
 17.58  General              64,870,000    66,117,000
 17.59  [EMPLOYMENT SERVICES CARRYOVER.] 
 17.60  General fund and federal TANF block 
 17.61  grant appropriations for employment 
 17.62  services that remain unexpended 
 17.63  subsequent to the reallocation process 
 18.1   required in Minnesota Statutes, section 
 18.2   256J.62, do not cancel but are 
 18.3   available for these purposes in fiscal 
 18.4   year 2001. 
 18.5   (b) Work Grants              
 18.6   General              10,731,000    10,731,000
 18.7   (c) Aid to Families With     
 18.8   Dependent Children and Other
 18.9   Assistance
 18.10  General               1,053,000       374,000
 18.11  (d) Child Support Enforcement
 18.12  General               5,359,000     5,359,000
 18.13  [CHILD SUPPORT PAYMENT CENTER.] 
 18.14  Payments to the commissioner from other 
 18.15  governmental units, private 
 18.16  enterprises, and individuals for 
 18.17  services performed by the child support 
 18.18  payment center must be deposited in the 
 18.19  state systems account authorized under 
 18.20  Minnesota Statutes, section 256.014.  
 18.21  These payments are appropriated to the 
 18.22  commissioner for the operation of the 
 18.23  child support payment center or system, 
 18.24  according to Minnesota Statutes, 
 18.25  section 256.014. 
 18.26  [CHILD SUPPORT EXPEDITED PROCESS.] Of 
 18.27  this appropriation for child support 
 18.28  enforcement, $2,340,000 for the 
 18.29  biennium shall be transferred to the 
 18.30  state court administrator to fund the 
 18.31  child support expedited process, in 
 18.32  accordance with a cooperative agreement 
 18.33  to be negotiated between the parties.  
 18.34  State funds transferred for this 
 18.35  purpose in fiscal year 2000 may exceed 
 18.36  the base funding amount of $1,170,000 
 18.37  to the extent that there is an increase 
 18.38  in the number of orders issued in the 
 18.39  expedited process, but may not exceed 
 18.40  $1,420,000 in any case.  Unexpended 
 18.41  expedited process appropriations in 
 18.42  fiscal year 2000 may be transferred to 
 18.43  fiscal year 2001 for this purpose.  
 18.44  Base funding for this program is set at 
 18.45  $1,170,000 for each year of the 
 18.46  2002-2003 biennium.  The commissioner 
 18.47  shall include cost reimbursement claims 
 18.48  from the state court administrator for 
 18.49  the child support expedited process in 
 18.50  the department of human services 
 18.51  federal cost reimbursement claim 
 18.52  process according to federal law.  
 18.53  Federal dollars earned under these 
 18.54  claims are appropriated to the 
 18.55  commissioner and shall be disbursed to 
 18.56  the state court administrator according 
 18.57  to department procedures and schedules. 
 18.58  (e) General Assistance
 18.59  General              33,927,000    14,973,000
 18.60  [TRANSFERS FROM STATE TANF RESERVE.] 
 19.1   $4,666,000 in fiscal year 2000 is 
 19.2   transferred from the state TANF reserve 
 19.3   account to the general fund. 
 19.4   [GENERAL ASSISTANCE STANDARD.] The 
 19.5   commissioner shall set the monthly 
 19.6   standard of assistance for general 
 19.7   assistance units consisting of an adult 
 19.8   recipient who is childless and 
 19.9   unmarried or living apart from his or 
 19.10  her parents or a legal guardian at 
 19.11  $203.  The commissioner may reduce this 
 19.12  amount in accordance with Laws 1997, 
 19.13  chapter 85, article 3, section 54. 
 19.14  (f) Minnesota Supplemental Aid
 19.15  General              25,767,000    26,874,000
 19.16  (g) Refugee Services         
 19.17  General                 330,000       330,000
 19.18     Sec. 9.  [UPPER LIMIT ON TANF MOE EXPENDITURES.] 
 19.19     Subdivision 1.  [STATE APPROPRIATIONS USED TO MEET TANF 
 19.20  MOE.] The amounts specified in this section apply to meeting the 
 19.21  TANF maintenance of effort requirement under section 256J.025 
 19.22  and are for the fiscal years designated. 
 19.23     Subd. 2.  [HUMAN SERVICES EXPENDITURES LIMITED.] Of the 
 19.24  state appropriations made under Laws 1998, chapter 407, article 
 19.25  1, the commissioner of human services may only report up to the 
 19.26  following amounts as TANF MOE expenditures: 
 19.27     (1) as MFIP cash assistance: 
 19.28       $91,307,000     .....     2000 
 19.29       $92,337,000     .....     2001 
 19.30     (2) as MFIP administrative costs: 
 19.31       $28,759,000     .....     2000 
 19.32       $28,759,000     .....     2001 
 19.33     (3) as MFIP employment services: 
 19.34       $ 6,722,000     .....     2000 
 19.35       $ 6,722,000     .....     2001 
 19.36     Subd. 3.  [CHILD CARE ASSISTANCE EXPENDITURES LIMITED.] Of 
 19.37  the state appropriations made under Laws 1999, chapter 205, 
 19.38  article 1, section 71, the commissioner of human services may 
 19.39  only report up to the following amounts as TANF MOE expenditures:
 19.40     (1) as MFIP child care: 
 19.41       $64,350,000     .....     2000 
 20.1        $63,320,000     .....     2001 
 20.2      Sec. 10.  [EFFECTIVE DATE.] 
 20.3      Sections 1 to 9 are effective the day following final 
 20.4   enactment.