1.1 	A bill for an act
1.2 	relating to human services; modifying MFIP provisions; eliminating and 
1.3 	repealing family stabilization services, the work participation bonus, and the 
1.4 	Workforce U pilot program; reducing appropriations;amending Minnesota 
1.5 	Statutes 2007 Supplement, sections 119B.05, subdivision 1; 256J.08, subdivision 
1.6 	65; 256J.20, subdivision 3; 256J.32, subdivision 6; 256J.521, subdivision 1; 
1.7 	256J.53, subdivision 2; 256J.626, subdivisions 2, 3, 4, 5; 256J.95, subdivision 3; 
1.8 	Laws 2007, chapter 147, article 2, section 63; article 19, section 3, subdivision 
1.9 	4; proposing coding for new law in Minnesota Statutes, chapter 256J; repealing 
1.10 	Laws 2007, chapter 147, article 2, section 52.
1.11 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.12 	Section 1. Minnesota Statutes 2007 Supplement, section 119B.05, subdivision 1, is 
1.13 	amended to read:
1.14 		Subdivision 1.Eligible participants. Families eligible for child care assistance 
1.15 	under the MFIP child care program are:
1.16 	(1) MFIP participants who are employed or in job search and meet the requirements 
1.17 	of section 119B.10; 
1.18 	(2) persons who are members of transition year families under section 119B.011, 
1.19 	subdivision 20, and meet the requirements of section 119B.10; 
1.20 	(3) families who are participating in employment orientation or job search, or 
1.21 	other employment or training activities that are included in an approved employability 
1.22 	development plan under section 256J.95; 
1.23 	(4) MFIP families who are participating in work job search, job support, 
1.24 	employment, or training activities as required in their employment plan, or in appeals, 
1.25 	hearings, assessments, or orientations according to chapter 256J;
1.26 	(5) MFIP families who are participating in social services activities under chapter 
1.27 	256J as required in their employment plan approved according to chapter 256J;
2.1 	(6) families who are participating in services or activities that are included in an 
2.2 	approved family stabilization plan under section 256J.575;
2.3 	(7)(6) families who are participating in programs as required in tribal contracts 
2.4 	under section 119B.02, subdivision 2, or 256.01, subdivision 2; and
2.5 	(8)(7) families who are participating in the transition year extension under section 
2.6 	119B.011, subdivision 20a. 

2.7 	Sec. 2. Minnesota Statutes 2007 Supplement, section 256J.08, subdivision 65, is 
2.8 	amended to read:
2.9 		Subd. 65.Participant. (a) "Participant" includes any of the following:
2.10 	(1) a person who is currently receiving cash assistance or the food portion available 
2.11 	through MFIP;
2.12 	(2) a person who withdraws a cash or food assistance payment by electronic transfer 
2.13 	or receives and cashes an MFIP assistance check or food coupons and is subsequently 
2.14 	determined to be ineligible for assistance for that period of time is a participant, regardless 
2.15 	whether that assistance is repaid;
2.16 	(3) the caregiver relative and the minor child whose needs are included in the 
2.17 	assistance payment;
2.18 	(4) a person in an assistance unit who does not receive a cash and food assistance 
2.19 	payment because the case has been suspended from MFIP; and
2.20 	(5) a person who receives cash payments under the diversionary work program 
2.21 	under section 256J.95 is a participant; and
2.22 	(6) a person who receives cash payments under family stabilization services under 
2.23 	section 256J.575.
2.24 	(b) "Participant" does not include a person who fails to withdraw or access 
2.25 	electronically any portion of the person's cash and food assistance payment by the end of 
2.26 	the payment month, who makes a written request for closure before the first of a payment 
2.27 	month and repays cash and food assistance electronically issued for that payment month 
2.28 	within that payment month, or who returns any uncashed assistance check and food 
2.29 	coupons and withdraws from the program.

2.30 	Sec. 3. Minnesota Statutes 2007 Supplement, section 256J.20, subdivision 3, is 
2.31 	amended to read:
2.32 		Subd. 3.Other property limitations. To be eligible for MFIP, the equity value of 
2.33 	all nonexcluded real and personal property of the assistance unit must not exceed $2,000 
3.1 	for applicants and $5,000 for ongoing participants. The value of assets in clauses (1) to 
3.2 	(19) must be excluded when determining the equity value of real and personal property:
3.3 	(1) a licensed vehicle up to a loan value of less than or equal to $15,000 $7,500.
3.4 	The county agency shall apply any excess loan value as if it were equity value to the asset 
3.5 	limit described in this section. If the assistance unit owns more than one licensed vehicle, 
3.6 	the county agency shall determine the loan value of all additional vehicles and exclude the 
3.7 	combined loan value of less than or equal to $7,500. The county agency shall apply any 
3.8 	excess loan value as if it were equity value to the asset limit described in this section,the 
3.9 	vehicle with the highest loan value and count only the loan value over $7,500, excluding: 
3.10 	(i) the value of one vehicle per physically disabled person when the vehicle is needed to 
3.11 	transport the disabled unit member; this exclusion does not apply to mentally disabled 
3.12 	people; (ii) the value of special equipment for a disabled member of the assistance unit; 
3.13 	and (iii) any vehicle used for long-distance travel, other than daily commuting, for the 
3.14 	employment of a unit member.
3.15 	The county agency shall count the loan value of all other vehicles and apply this 
3.16 	amount as if it were equity value to the asset limit described in this section. To establish the 
3.17 	loan value of vehicles, a county agency must use the N.A.D.A. Official Used Car Guide, 
3.18 	Midwest Edition, for newer model cars. When a vehicle is not listed in the guidebook, 
3.19 	or when the applicant or participant disputes the loan value listed in the guidebook as 
3.20 	unreasonable given the condition of the particular vehicle, the county agency may require 
3.21 	the applicant or participant document the loan value by securing a written statement from 
3.22 	a motor vehicle dealer licensed under section 168.27, stating the amount that the dealer 
3.23 	would pay to purchase the vehicle. The county agency shall reimburse the applicant or 
3.24 	participant for the cost of a written statement that documents a lower loan value; 
3.25 	(2) the value of life insurance policies for members of the assistance unit;
3.26 	(3) one burial plot per member of an assistance unit;
3.27 	(4) the value of personal property needed to produce earned income, including 
3.28 	tools, implements, farm animals, inventory, business loans, business checking and 
3.29 	savings accounts used at least annually and used exclusively for the operation of a 
3.30 	self-employment business, and any motor vehicles if at least 50 percent of the vehicle's use 
3.31 	is to produce income and if the vehicles are essential for the self-employment business;
3.32 	(5) the value of personal property not otherwise specified which is commonly 
3.33 	used by household members in day-to-day living such as clothing, necessary household 
3.34 	furniture, equipment, and other basic maintenance items essential for daily living;
3.35 	(6) the value of real and personal property owned by a recipient of Supplemental 
3.36 	Security Income or Minnesota supplemental aid;
4.1 	(7) the value of corrective payments, but only for the month in which the payment 
4.2 	is received and for the following month;
4.3 	(8) a mobile home or other vehicle used by an applicant or participant as the 
4.4 	applicant's or participant's home;
4.5 	(9) money in a separate escrow account that is needed to pay real estate taxes or 
4.6 	insurance and that is used for this purpose;
4.7 	(10) money held in escrow to cover employee FICA, employee tax withholding, 
4.8 	sales tax withholding, employee worker compensation, business insurance, property rental, 
4.9 	property taxes, and other costs that are paid at least annually, but less often than monthly;
4.10 	(11) monthly assistance payments for the current month's or short-term emergency 
4.11 	needs under section 256J.626, subdivision 2; 
4.12 	(12) the value of school loans, grants, or scholarships for the period they are 
4.13 	intended to cover;
4.14 	(13) payments listed in section 256J.21, subdivision 2, clause (9), which are held 
4.15 	in escrow for a period not to exceed three months to replace or repair personal or real 
4.16 	property; 
4.17 	(14) income received in a budget month through the end of the payment month;
4.18 	(15) savings from earned income of a minor child or a minor parent that are set aside 
4.19 	in a separate account designated specifically for future education or employment costs;
4.20 	(16) the federal earned income credit, Minnesota working family credit, state and 
4.21 	federal income tax refunds, state homeowners and renters credits under chapter 290A, 
4.22 	property tax rebates and other federal or state tax rebates in the month received and the 
4.23 	following month;
4.24 	(17) payments excluded under federal law as long as those payments are held in a 
4.25 	separate account from any nonexcluded funds;
4.26 	(18) the assets of children ineligible to receive MFIP benefits because foster care or 
4.27 	adoption assistance payments are made on their behalf; and
4.28 	(19) the assets of persons whose income is excluded under section 256J.21, 
4.29 	subdivision 2, clause (43). 

4.30 	Sec. 4. [256J.295] INELIGIBILITY FOR STATE-FUNDED PROGRAMS.
4.31 	Beginning July 1, 2008, legal noncitizens ineligible for federally funded cash or food 
4.32 	benefits due to 1996 changes in federal law and subsequent relevant enactments, who are 
4.33 	eligible for state-funded MFIP cash or food assistance, will be ineligible for state-funded 
4.34 	MFIP under this chapter.

5.1 	Sec. 5. Minnesota Statutes 2007 Supplement, section 256J.32, subdivision 6, is 
5.2 	amended to read:
5.3 		Subd. 6.Recertification. The county agency shall recertify eligibility in an annual 
5.4 	face-to-face interview with the participant and verify the following:
5.5 	(1) presence of the minor child in the home, if questionable;
5.6 	(2) income, unless excluded, including self-employment expenses used as a 
5.7 	deduction or deposits or withdrawals from business accounts;
5.8 	(3) assets when the value is within $200 of the asset limit;
5.9 	(4) information to establish an exception under section 256J.24, subdivision 9, 
5.10 	if questionable; and
5.11 	(5) inconsistent information, if related to eligibility; and
5.12 	(6) whether a single caregiver household meets requirements in section 256J.575, 
5.13 	subdivision 3.

5.14 	Sec. 6. Minnesota Statutes 2007 Supplement, section 256J.521, subdivision 1, is 
5.15 	amended to read:
5.16 		Subdivision 1.Assessments. (a) For purposes of MFIP employment services, 
5.17 	assessment is a continuing process of gathering information related to employability 
5.18 	for the purpose of identifying both participant's strengths and strategies for coping with 
5.19 	issues that interfere with employment. The job counselor must use information from the 
5.20 	assessment process to develop and update the employment plan under subdivision 2 or 
5.21 	3, as appropriate, to determine whether the participant qualifies for a family violence 
5.22 	waiver including an employment plan under subdivision 3, and to determine whether the 
5.23 	participant should be referred to family stabilization services under section 256J.575.
5.24 	(b) The scope of assessment must cover at least the following areas:
5.25 	(1) basic information about the participant's ability to obtain and retain employment, 
5.26 	including: a review of the participant's education level; interests, skills, and abilities; prior 
5.27 	employment or work experience; transferable work skills; child care and transportation 
5.28 	needs;
5.29 	(2) identification of personal and family circumstances that impact the participant's 
5.30 	ability to obtain and retain employment, including: any special needs of the children, the 
5.31 	level of English proficiency, family violence issues, and any involvement with social 
5.32 	services or the legal system;
5.33 	(3) the results of a mental and chemical health screening tool designed by the 
5.34 	commissioner and results of the brief screening tool for special learning needs. Screening 
5.35 	tools for mental and chemical health and special learning needs must be approved by the 
6.1 	commissioner and may only be administered by job counselors or county staff trained in 
6.2 	using such screening tools. The commissioner shall work with county agencies to develop 
6.3 	protocols for referrals and follow-up actions after screens are administered to participants, 
6.4 	including guidance on how employment plans may be modified based upon outcomes 
6.5 	of certain screens. Participants must be told of the purpose of the screens and how the 
6.6 	information will be used to assist the participant in identifying and overcoming barriers to 
6.7 	employment. Screening for mental and chemical health and special learning needs must 
6.8 	be completed by participants who are unable to find suitable employment after six weeks 
6.9 	of job search under subdivision 2, paragraph (b), and participants who are determined to 
6.10 	have barriers to employment under subdivision 2, paragraph (d). Failure to complete the 
6.11 	screens will result in sanction under section 256J.46; and 
6.12 	(4) a comprehensive review of participation and progress for participants who have 
6.13 	received MFIP assistance and have not worked in unsubsidized employment during the 
6.14 	past 12 months. The purpose of the review is to determine the need for additional services 
6.15 	and supports, including placement in subsidized employment or unpaid work experience 
6.16 	under section 256J.49, subdivision 13, or referral to family stabilization services under 
6.17 	section 256J.575. 
6.18 	(c) Information gathered during a caregiver's participation in the diversionary work 
6.19 	program under section 256J.95 must be incorporated into the assessment process. 
6.20 	(d) The job counselor may require the participant to complete a professional chemical 
6.21 	use assessment to be performed according to the rules adopted under section 254A.03, 
6.22 	subdivision 3, including provisions in the administrative rules which recognize the cultural 
6.23 	background of the participant, or a professional psychological assessment as a component 
6.24 	of the assessment process, when the job counselor has a reasonable belief, based on 
6.25 	objective evidence, that a participant's ability to obtain and retain suitable employment 
6.26 	is impaired by a medical condition. The job counselor may assist the participant with 
6.27 	arranging services, including child care assistance and transportation, necessary to meet 
6.28 	needs identified by the assessment. Data gathered as part of a professional assessment 
6.29 	must be classified and disclosed according to the provisions in section 13.46.

6.30 	Sec. 7. Minnesota Statutes 2007 Supplement, section 256J.53, subdivision 2, is 
6.31 	amended to read:
6.32 		Subd. 2.Approval of postsecondary education or training. (a) In order for a 
6.33 	postsecondary education or training program to be an approved activity in an employment 
6.34 	plan, the plan must include additional work activities if the education and training 
6.35 	activities do not meet the minimum hours required to meet the federal work participation 
7.1 	rate under Code of Federal Regulations, title 45, sections 261.31 and 261.35 participant 
7.2 	must be working in unsubsidized employment at least 20 hours per week.
7.3 	(b) Participants seeking approval of a postsecondary education or training plan 
7.4 	must provide documentation that:
7.5 	(1) the employment goal can only be met with the additional education or training;
7.6 	(2) there are suitable employment opportunities that require the specific education or 
7.7 	training in the area in which the participant resides or is willing to reside;
7.8 	(3) the education or training will result in significantly higher wages for the 
7.9 	participant than the participant could earn without the education or training;
7.10 	(4) the participant can meet the requirements for admission into the program; and
7.11 	(5) there is a reasonable expectation that the participant will complete the training 
7.12 	program based on such factors as the participant's MFIP assessment, previous education, 
7.13 	training, and work history; current motivation; and changes in previous circumstances.
7.14 	(c) The hourly unsubsidized employment requirement does not apply for intensive 
7.15 	education or training programs lasting 12 weeks or less when full-time attendance is 
7.16 	required.
7.17 	(d) Participants with an approved employment plan in place on July 1, 2008, which 
7.18 	includes more than 12 months of postsecondary education or training must be allowed to 
7.19 	complete that plan provided that hourly requirements in section 256J.55, subdivision 1, 
7.20 	and conditions specified in paragraph (b) and subdivisions 3 and 5 are met. A participant 
7.21 	whose case is subsequently closed for three months or less for reasons other than 
7.22 	noncompliance with program requirements and who returns to MFIP must be allowed to 
7.23 	complete that plan provided that hourly requirements in section 256J.55, subdivision 1, 
7.24 	and conditions specified in paragraph (b) and subdivisions 3 and 5 are met.

7.25 	Sec. 8. Minnesota Statutes 2007 Supplement, section 256J.626, subdivision 2, is 
7.26 	amended to read:
7.27 		Subd. 2.Allowable expenditures. (a) The commissioner must restrict expenditures 
7.28 	under the consolidated fund to benefits and services allowed under title IV-A of the federal 
7.29 	Social Security Act. Allowable expenditures under the consolidated fund may include, but 
7.30 	are not limited to:
7.31 	(1) short-term, nonrecurring shelter and utility needs that are excluded from the 
7.32 	definition of assistance under Code of Federal Regulations, title 45, section 260.31, for 
7.33 	families who meet the residency requirement in section 256J.12, subdivisions 1 and 1a. 
7.34 	Payments under this subdivision are not considered TANF cash assistance and are not 
7.35 	counted towards the 60-month time limit; 
8.1 	(2) transportation needed to obtain or retain employment or to participate in other 
8.2 	approved work activities or activities under a family stabilization plan;
8.3 	(3) direct and administrative costs of staff to deliver employment services for 
8.4 	MFIP, the diversionary work program, or family stabilization services; to administer 
8.5 	financial assistance;, and to provide specialized services intended to assist hard-to-employ 
8.6 	participants to transition to work or transition from family stabilization services to MFIP;
8.7 	(4) costs of education and training including functional work literacy and English as 
8.8 	a second language;
8.9 	(5) cost of work supports including tools, clothing, boots, telephone service, and 
8.10 	other work-related expenses;
8.11 	(6) county administrative expenses as defined in Code of Federal Regulations, title 
8.12 	45, section 260(b);
8.13 	(7) services to parenting and pregnant teens;
8.14 	(8) supported work;
8.15 	(9) wage subsidies;
8.16 	(10) child care needed for MFIP, the or diversionary work program, or family 
8.17 	stabilization services participants to participate in social services;
8.18 	(11) child care to ensure that families leaving MFIP or diversionary work program 
8.19 	will continue to receive child care assistance from the time the family no longer qualifies 
8.20 	for transition year child care until an opening occurs under the basic sliding fee child 
8.21 	care program; and
8.22 	(12) services to help noncustodial parents who live in Minnesota and have minor 
8.23 	children receiving MFIP or DWP assistance, but do not live in the same household as the 
8.24 	child, obtain or retain employment; and
8.25 	(13) services to help families participating in family stabilization services achieve 
8.26 	the greatest possible degree of self-sufficiency.
8.27 	(b) Administrative costs that are not matched with county funds as provided in 
8.28 	subdivision 8 may not exceed 7.5 percent of a county's or 15 percent of a tribe's allocation 
8.29 	under this section. The commissioner shall define administrative costs for purposes of 
8.30 	this subdivision.
8.31 	(c) The commissioner may waive the cap on administrative costs for a county or tribe 
8.32 	that elects to provide an approved supported employment, unpaid work, or community 
8.33 	work experience program for a major segment of the county's or tribe's MFIP population. 
8.34 	The county or tribe must apply for the waiver on forms provided by the commissioner. In 
8.35 	no case shall total administrative costs exceed the TANF limits.

9.1 	Sec. 9. Minnesota Statutes 2007 Supplement, section 256J.626, subdivision 3, is 
9.2 	amended to read:
9.3 		Subd. 3.Eligibility for services. Families with a minor child, a pregnant woman, 
9.4 	or a noncustodial parent of a minor child receiving assistance, with incomes below 200 
9.5 	percent of the federal poverty guideline for a family of the applicable size, are eligible 
9.6 	for services funded under the consolidated fund. Counties and tribes must give priority 
9.7 	to families currently receiving MFIP, the or diversionary work program, or family 
9.8 	stabilization services, and families at risk of receiving MFIP or diversionary work 
9.9 	program.

9.10 	Sec. 10. Minnesota Statutes 2007 Supplement, section 256J.626, subdivision 4, 
9.11 	is amended to read:
9.12 		Subd. 4.County and tribal biennial service agreements. (a) Effective January 1, 
9.13 	2004, and each two-year period thereafter, each county and tribe must have in place an 
9.14 	approved biennial service agreement related to the services and programs in this chapter. 
9.15 	In counties with a city of the first class with a population over 300,000, the county must 
9.16 	consider a service agreement that includes a jointly developed plan for the delivery of 
9.17 	employment services with the city. Counties may collaborate to develop multicounty, 
9.18 	multitribal, or regional service agreements.
9.19 	(b) The service agreements will be completed in a form prescribed by the 
9.20 	commissioner. The agreement must include:
9.21 	(1) a statement of the needs of the service population and strengths and resources 
9.22 	in the community;
9.23 	(2) numerical goals for participant outcomes measures to be accomplished during 
9.24 	the biennial period. The commissioner may identify outcomes from section 256J.751, 
9.25 	subdivision 2, as core outcomes for all counties and tribes; 
9.26 	(3) strategies the county or tribe will pursue to achieve the outcome targets. 
9.27 	Strategies must include specification of how funds under this section will be used and may 
9.28 	include community partnerships that will be established or strengthened;  and
9.29 	(4) strategies the county or tribe will pursue under family stabilization services; and
9.30 	(5) other items prescribed by the commissioner in consultation with counties and 
9.31 	tribes.
9.32 	(c) The commissioner shall provide each county and tribe with information needed 
9.33 	to complete an agreement, including: (1) information on MFIP cases in the county or 
9.34 	tribe; (2) comparisons with the rest of the state; (3) baseline performance on outcome 
9.35 	measures; and (4) promising program practices.
10.1 	(d) The service agreement must be submitted to the commissioner by October 15, 
10.2 	2003, and October 15 of each second year thereafter. The county or tribe must allow 
10.3 	a period of not less than 30 days prior to the submission of the agreement to solicit 
10.4 	comments from the public on the contents of the agreement.
10.5 	(e) The commissioner must, within 60 days of receiving each county or tribal service 
10.6 	agreement, inform the county or tribe if the service agreement is approved. If the service 
10.7 	agreement is not approved, the commissioner must inform the county or tribe of any 
10.8 	revisions needed prior to approval.
10.9 	(f) The service agreement in this subdivision supersedes the plan requirements 
10.10 	of section 116L.88. 

10.11 	Sec. 11. Minnesota Statutes 2007 Supplement, section 256J.626, subdivision 5, is 
10.12 	amended to read:
10.13 		Subd. 5.Innovation projects. Beginning January 1, 2005, no more than $3,000,000 
10.14 	of the funds annually appropriated to the commissioner for use in the consolidated fund 
10.15 	shall be available to the commissioner for projects testing innovative approaches to 
10.16 	improving outcomes for MFIP participants, family stabilization services  participants, and 
10.17 	persons at risk of receiving MFIP as detailed in subdivision 3. Projects shall be targeted to 
10.18 	geographic areas with poor outcomes as specified in section 256J.751, subdivision 5, or to 
10.19 	subgroups within the MFIP case load who are experiencing poor outcomes.

10.20 	Sec. 12. Minnesota Statutes 2007 Supplement, section 256J.95, subdivision 3, is 
10.21 	amended to read:
10.22 		Subd. 3.Eligibility for diversionary work program. (a) Except for the categories 
10.23 	of family units listed below, all family units who apply for cash benefits and who 
10.24 	meet MFIP eligibility as required in sections 256J.11 to 256J.15 are eligible and must 
10.25 	participate in the diversionary work program. Family units that are not eligible for the 
10.26 	diversionary work program include:
10.27 	(1) child only cases;
10.28 	(2) a single-parent family unit that includes a child under 12 weeks of age. A parent 
10.29 	is eligible for this exception once in a parent's lifetime and is not eligible if the parent 
10.30 	has already used the previously allowed child under age one exemption from MFIP 
10.31 	employment services;
10.32 	(3) a minor parent without a high school diploma or its equivalent;
10.33 	(4) an 18- or 19-year-old caregiver without a high school diploma or its equivalent 
10.34 	who chooses to have an employment plan with an education option;
11.1 	(5) a caregiver age 60 or over;
11.2 	(6) family units with a caregiver who received DWP benefits in the 12 months prior 
11.3 	to the month the family applied for DWP, except as provided in paragraph (c);
11.4 	(7) family units with a caregiver who received MFIP within the 12 months prior to 
11.5 	the month the family unit applied for DWP;
11.6 	(8) a family unit with a caregiver who received 60 or more months of TANF 
11.7 	assistance; and
11.8 	(9) a family unit with a caregiver who is disqualified from DWP or MFIP due to 
11.9 	fraud; and
11.10 	(10) refugees as defined in Code of Federal Regulations, title 45, chapter IV, section 
11.11 	444.43, who arrived in the United States in the 12 months prior to the date of application 
11.12 	for family cash assistance.
11.13 	(b) A two-parent family must participate in DWP unless both caregivers meet the 
11.14 	criteria for an exception under paragraph (a), clauses (1) through (5), or the family unit 
11.15 	includes a parent who meets the criteria in paragraph (a), clause (6), (7), (8), or (9).
11.16 	(c) Once DWP eligibility is determined, the four months run consecutively. If a 
11.17 	participant leaves the program for any reason and reapplies during the four-month period, 
11.18 	the county must redetermine eligibility for DWP.

11.19 	Sec. 13. Laws 2007, chapter 147, article 2, section 63, is amended to read:
11.20 	Sec. 63. REPEALER.
 11.21 	(a) Minnesota Statutes 2006, sections 119B.08, subdivision 4; 256J.29; and 
11.22 	256J.626, subdivision 9, are repealed. 
11.23 	(b) Minnesota Statutes 2006, section 256J.37, subdivision 3b, is repealed effective 
11.24 	February 1, 2008.
11.25 	(c) Laws 1997, chapter 8, section 1, is repealed. 
11.26 	(d) (c) Minnesota Rules, part 9560.0102, subpart 2, item C, is repealed.

11.27 	EFFECTIVE DATE. This section is effective retroactively from February 1, 2008.

11.28 	Sec. 14. Laws 2007, chapter 147, article 19, section 3, subdivision 4, is amended to 
11.29 	read:

11.30
11.31	Subd. 4. Children and Economic Assistance 
Grants
 					
11.32 	The amounts that may be spent from this 
11.33 	appropriation for each purpose are as follows: 

12.1	(a) MFIP/DWP Grants 

12.2	Appropriations by Fund 
	
12.3	General 
	62,069,000 
	62,405,000 
	
12.4	Federal TANF 
	75,904,000 
	80,841,000 

12.5	(b) Support Services Grants 

12.6	Appropriations by Fund 
	
12.7	General 
	8,715,000 
	8,715,000 
	
12.8	Federal TANF 
	113,429,000 
	115,902,000 
	
12.9 	TANF Prior Appropriation Cancellation.
12.10 	Notwithstanding Laws 2001, First Special 
12.11 	Session chapter 9, article 17, section 
12.12 	2, subdivision 11, paragraph (b), any 
12.13 	unexpended TANF funds appropriated to the 
12.14 	commissioner to contract with the Board of 
12.15 	Trustees of Minnesota State Colleges and 
12.16 	Universities, to provide tuition waivers to 
12.17 	employees of health care and human service 
12.18 	providers that are members of qualifying 
12.19 	consortia operating under Minnesota 
12.20 	Statutes, sections 116L.10 to 116L.15, must 
12.21 	cancel at the end of fiscal year 2007. 
12.22 	MFIP Pilot Program. Of the TANF 
12.23 	appropriation, $100,000 in fiscal year 2008 
12.24 	and $750,000 in fiscal year 2009 are is  for a 
12.25 	grant to the Stearns-Benton Employment and 
12.26 	Training Council for the Workforce U pilot 
12.27 	program. Base level funding for this program 
12.28 	shall be $750,000 in 2010 and $0 in 2011.
12.29 	Supported Work. (1) Of the TANF 
12.30 	appropriation, $5,468,000 in fiscal year 
12.31 	2008 and $7,291,000 in fiscal year 
12.32 	2009 are for supported work for MFIP 
12.33 	participants, to be allocated to counties 
12.34 	and tribes based on the criteria under 
12.35 	clauses (2) and (3). Paid transitional work 
13.1 	experience and other supported employment 
13.2 	under this rider provides a continuum of 
13.3 	employment assistance, including outreach 
13.4 	and recruitment, program orientation 
13.5 	and intake, testing and assessment, job 
13.6 	development and marketing, preworksite 
13.7 	training, supported worksite experience, job 
13.8 	coaching, and postplacement follow-up, in 
13.9 	addition to extensive case management and 
13.10 	referral services. * (The preceding text "and 
13.11 	$7,291,000 in fiscal year 2009" was indicated 
13.12 	as vetoed by the governor.) 
13.13 	(2) A county or tribe is eligible to receive an 
13.14 	allocation under this rider if: 
13.15 	(i) the county or tribe is not meeting the 
13.16 	federal work participation rate; 
13.17 	(ii) the county or tribe has participants who 
13.18 	are required to perform work activities under 
13.19 	Minnesota Statutes, chapter 256J, but are not 
13.20 	meeting hourly work requirements; and 
13.21 	(iii) the county or tribe has assessed 
13.22 	participants who have completed six weeks 
13.23 	of job search or are required to perform 
13.24 	work activities and are not meeting the 
13.25 	hourly requirements, and the county or tribe 
13.26 	has determined that the participant would 
13.27 	benefit from working in a supported work 
13.28 	environment. 
13.29 	(3) A county or tribe may also be eligible for 
13.30 	funds in order to contract for supplemental 
13.31 	hours of paid work at the participant's child's 
13.32 	place of education, child care location, or the 
13.33 	child's physical or mental health treatment 
13.34 	facility or office. This grant to counties and 
13.35 	tribes is specifically for MFIP participants 
14.1 	who need to work up to five hours more 
14.2 	per week in order to meet the hourly work 
14.3 	requirement, and the participant's employer 
14.4 	cannot or will not offer more hours to the 
14.5 	participant. 
14.6 	Work Study. Of the TANF appropriation, 
14.7 	$750,000 each year are to the commissioner 
14.8 	to contract with the Minnesota Office of 
14.9 	Higher Education for the biennium beginning 
14.10 	July 1, 2007, for work study grants under 
14.11 	Minnesota Statutes, section 136A.233, 
14.12 	specifically for low-income individuals who 
14.13 	receive assistance under Minnesota Statutes, 
14.14 	chapter 256J, and for grants to opportunities 
14.15 	industrialization centers. * (The preceding 
14.16 	text beginning "Work Study. Of the TANF 
14.17 	appropriation," was indicated as vetoed by 
14.18 	the governor.) 
14.19 	Integrated Service Projects. $2,500,000 
14.20 	in fiscal year 2008 and $2,500,000 in fiscal 
14.21 	year 2009 are is appropriated from the TANF 
14.22 	fund to the commissioner to continue to 
14.23 	fund the existing integrated services projects 
14.24 	for MFIP families, and if funding allows, 
14.25 	additional similar projects. 
14.26 	Base Adjustment. The TANF base for fiscal 
14.27 	year 2010 is $115,902,000 and for fiscal year 
14.28 	2011 is $115,152,000. 

14.29	(c) MFIP Child Care Assistance Grants 

14.30	General 
	74,654,000 
	71,951,000 

14.31
14.32	(d) Basic Sliding Fee Child Care Assistance 
Grants 

14.33	General 
	42,995,000 
	45,008,000 
	
15.1 	Base Adjustment. The general fund base 
15.2 	is $44,881,000 for fiscal year 2010 and 
15.3 	$44,852,000 for fiscal year 2011. 
15.4 	At-Home Infant Care Program. No 
15.5 	funding shall be allocated to or spent on 
15.6 	the at-home infant care program under 
15.7 	Minnesota Statutes, section 119B.035. 

15.8	(e) Child Care Development Grants 

15.9	General 
	4,390,000 
	6,390,000 
	
15.10 	Prekindergarten Exploratory Projects. Of 
15.11 	the general fund appropriation, $2,000,000 
15.12 	the first year and $4,000,000 the second 
15.13 	year are for grants to the city of St. Paul, 
15.14 	Hennepin County, and Blue Earth County to 
15.15 	establish scholarship demonstration projects 
15.16 	to be conducted in partnership with the 
15.17 	Minnesota Early Learning Foundation to 
15.18 	promote children's school readiness. This 
15.19 	appropriation is available until June 30, 2009. 
15.20 	Child Care Services Grants. Of this 
15.21 	appropriation, $500,000 each year are for 
15.22 	the purpose of providing child care services 
15.23 	grants under Minnesota Statutes, section 
15.24 	119B.21, subdivision 5. This appropriation 
15.25 	is for the 2008-2009 biennium only, and does 
15.26 	not increase the base funding. 
15.27 	Early Childhood Professional 
15.28 	Development System. Of this appropriation, 
15.29 	$500,000 each year are for purposes of the 
15.30 	early childhood professional development 
15.31 	system, which increases the quality and 
15.32 	continuum of professional development 
15.33 	opportunities for child care practitioners. 
15.34 	This appropriation is for the 2008-2009 
16.1 	biennium only, and does not increase the 
16.2 	base funding. 
16.3 	Base Adjustment. The general fund base 
16.4 	is $1,515,000 for each of fiscal years 2010 
16.5 	and 2011. 

16.6	(f) Child Support Enforcement Grants 

16.7	General 
	11,038,000 
	3,705,000 
	
16.8 	Child Support Enforcement. $7,333,000 
16.9 	for fiscal year 2008 is to make grants to 
16.10 	counties for child support enforcement 
16.11 	programs to make up for the loss under the 
16.12 	2005 federal Deficit Reduction Act of federal 
16.13 	matching funds for federal incentive funds 
16.14 	passed on to the counties by the state. 
16.15 	This appropriation is available until June 30, 
16.16 	2009. 

16.17	(g) Children's Services Grants 

16.18	Appropriations by Fund 
	
16.19	General 
	63,647,000 
	71,147,000 
	
16.20	Health Care Access 
	250,000 
	-0- 
	
16.21	TANF 
	240,000 
	340,000 
	
16.22 	Grants for Programs Serving Young 
16.23 	Parents. Of the TANF fund appropriation, 
16.24 	$140,000 each year is for a grant to a program 
16.25 	or programs that provide comprehensive 
16.26 	services through a private, nonprofit agency 
16.27 	to young parents in Hennepin County who 
16.28 	have dropped out of school and are receiving 
16.29 	public assistance. The program administrator 
16.30 	shall report annually to the commissioner on 
16.31 	skills development, education, job training, 
16.32 	and job placement outcomes for program 
16.33 	participants. 
17.1 	County Allocations for Rate Increases.
17.2 	County Children and Community Services 
17.3 	Act allocations shall be increased by 
17.4 	$197,000 effective October 1, 2007, and 
17.5 	$696,000 effective October 1, 2008, to help 
17.6 	counties pay for the rate adjustments to 
17.7 	day training and habilitation providers for 
17.8 	participants paid by county social service 
17.9 	funds. Notwithstanding the provisions of 
17.10 	Minnesota Statutes, section 256M.40, the 
17.11 	allocation to a county shall be based on 
17.12 	the county's proportion of social services 
17.13 	spending for day training and habilitation 
17.14 	services as determined in the most recent 
17.15 	social services expenditure and grant 
17.16 	reconciliation report. 
17.17 	Privatized Adoption Grants. Federal 
17.18 	reimbursement for privatized adoption grant 
17.19 	and foster care recruitment grant expenditures 
17.20 	is appropriated to the commissioner for 
17.21 	adoption grants and foster care and adoption 
17.22 	administrative purposes. 
17.23 	Adoption Assistance Incentive Grants.
17.24 	Federal funds available during fiscal year 
17.25 	2008 and fiscal year 2009 for the adoption 
17.26 	incentive grants are appropriated to the 
17.27 	commissioner for these purposes. 
17.28 	Adoption Assistance and Relative Custody 
17.29 	Assistance. The commissioner may transfer 
17.30 	unencumbered appropriation balances for 
17.31 	adoption assistance and relative custody 
17.32 	assistance between fiscal years and between 
17.33 	programs. 
17.34 	Children's Mental Health Grants. Of the 
17.35 	general fund appropriation, $5,913,000 in 
18.1 	fiscal year 2008 and $6,825,000 in fiscal year 
18.2 	2009 are for children's mental health grants. 
18.3 	The purpose of these grants is to increase and 
18.4 	maintain the state's children's mental health 
18.5 	service capacity, especially for school-based 
18.6 	mental health services. The commissioner 
18.7 	shall require grantees to utilize all available 
18.8 	third party reimbursement sources as a 
18.9 	condition of using state grant funds. At 
18.10 	least 15 percent of these funds shall be 
18.11 	used to encourage efficiencies through early 
18.12 	intervention services. At least another 15 
18.13 	percent shall be used to provide respite care 
18.14 	services for children with severe emotional 
18.15 	disturbance at risk of out-of-home placement. 
18.16 	Mental Health Crisis Services. Of the 
18.17 	general fund appropriation, $2,528,000 in 
18.18 	fiscal year 2008 and $2,850,000 in fiscal year 
18.19 	2009 are for statewide funding of children's 
18.20 	mental health crisis services. Providers must 
18.21 	utilize all available funding streams. 
18.22 	Children's Mental Health Evidence-Based 
18.23 	and Best Practices. Of the general fund 
18.24 	appropriation, $375,000 in fiscal year 2008 
18.25 	and $750,000 in fiscal year 2009 are for 
18.26 	children's mental health evidence-based and 
18.27 	best practices including, but not limited 
18.28 	to: Adolescent Integrated Dual Diagnosis 
18.29 	Treatment services; school-based mental 
18.30 	health services; co-location of mental 
18.31 	health and physical health care, and; the 
18.32 	use of technological resources to better 
18.33 	inform diagnosis and development of 
18.34 	treatment plan development by mental 
18.35 	health professionals. The commissioner 
18.36 	shall require grantees to utilize all available 
19.1 	third-party reimbursement sources as a 
19.2 	condition of using state grant funds. 
19.3 	Culturally Specific Mental Health 
19.4 	Treatment Grants. Of the general fund 
19.5 	appropriation, $75,000 in fiscal year 2008 
19.6 	and $300,000 in fiscal year 2009 are for 
19.7 	children's mental health grants to support 
19.8 	increased availability of mental health 
19.9 	services for persons from cultural and 
19.10 	ethnic minorities within the state. The 
19.11 	commissioner shall use at least 20 percent 
19.12 	of these funds to help members of cultural 
19.13 	and ethnic minority communities to become 
19.14 	qualified mental health professionals and 
19.15 	practitioners. The commissioner shall assist 
19.16 	grantees to meet third-party credentialing 
19.17 	requirements and require them to utilize all 
19.18 	available third-party reimbursement sources 
19.19 	as a condition of using state grant funds. 
19.20 	Mental Health Services for Children with 
19.21 	Special Treatment Needs. Of the general 
19.22 	fund appropriation, $50,000 in fiscal year 
19.23 	2008 and $200,000 in fiscal year 2009 are 
19.24 	for children's mental health grants to support 
19.25 	increased availability of mental health 
19.26 	services for children with special treatment 
19.27 	needs. These shall include, but not be limited 
19.28 	to: victims of trauma, including children 
19.29 	subjected to abuse or neglect, veterans and 
19.30 	their families, and refugee populations; 
19.31 	persons with complex treatment needs, such 
19.32 	as eating disorders; and those with low 
19.33 	incidence disorders. 
19.34 	MFIP and Children's Mental Health 
19.35 	Pilot Project. Of the TANF appropriation, 
20.1 	$100,000 in fiscal year 2008 and $200,000 
20.2 	in fiscal year 2009 are to fund the MFIP 
20.3 	and children's mental health pilot project. 
20.4 	Of these amounts, up to $100,000 may be 
20.5 	expended on evaluation of this pilot. 
20.6 	Prenatal Alcohol or Drug Use. Of the 
20.7 	general fund appropriation, $75,000 each 
20.8 	year is to award grants beginning July 1, 
20.9 	2007, to programs that provide services 
20.10 	under Minnesota Statutes, section 254A.171, 
20.11 	in Pine, Kanabec, and Carlton Counties. This 
20.12 	appropriation shall become part of the base 
20.13 	appropriation. 
20.14 	Base Adjustment. The general fund base 
20.15 	is $62,572,000 in fiscal year 2010 and 
20.16 	$62,575,000 in fiscal year 2011. 

20.17	(h) Children and Community Services Grants 

20.18	General 
	101,369,000 
	69,208,000 
	
20.19 	Base Adjustment. The general fund base 
20.20 	is $69,274,000 in each of fiscal years 2010 
20.21 	and 2011. 
20.22 	Targeted Case Management Temporary 
20.23 	Funding. (a) Of the general fund 
20.24 	appropriation, $32,667,000 in fiscal year 
20.25 	2008 is transferred to the targeted case 
20.26 	management contingency reserve account in 
20.27 	the general fund to be allocated to counties 
20.28 	and tribes affected by reductions in targeted 
20.29 	case management federal Medicaid revenue 
20.30 	as a result of the provisions in the federal 
20.31 	Deficit Reduction Act of 2005, Public Law 
20.32 	109-171. 
20.33 	(b) Contingent upon (1) publication by the 
20.34 	federal Centers for Medicare and Medicaid 
21.1 	Services of final regulations implementing 
21.2 	the targeted case management provisions 
21.3 	of the federal Deficit Reduction Act of 
21.4 	2005, Public Law 109-171, or (2) the 
21.5 	issuance of a finding by the Centers for 
21.6 	Medicare and Medicaid Services of federal 
21.7 	Medicaid overpayments for targeted case 
21.8 	management expenditures, up to $32,667,000 
21.9 	is appropriated to the commissioner of human 
21.10 	services. Prior to distribution of funds, the 
21.11 	commissioner shall estimate and certify the 
21.12 	amount by which the federal regulations or 
21.13 	federal disallowance will reduce targeted 
21.14 	case management Medicaid revenue over the 
21.15 	2008-2009 biennium. 
21.16 	(c) Within 60 days of a contingency described 
21.17 	in paragraph (b), the commissioner shall 
21.18 	distribute the grants proportionate to each 
21.19 	affected county or tribe's targeted case 
21.20 	management federal earnings for calendar 
21.21 	year 2005, not to exceed the lower of (1) the 
21.22 	amount of the estimated reduction in federal 
21.23 	revenue or (2) $32,667,000. 
21.24 	(d) These funds are available in either year of 
21.25 	the biennium. Counties and tribes shall use 
21.26 	these funds to pay for social service-related 
21.27 	costs, but the funds are not subject to 
21.28 	provisions of the Children and Community 
21.29 	Services Act grant under Minnesota Statutes, 
21.30 	chapter 256M. 
21.31 	(e) This appropriation shall be available to 
21.32 	pay counties and tribes for expenses incurred 
21.33 	on or after July 1, 2007. The appropriation 
21.34 	shall be available until expended. 

21.35	(i) General Assistance Grants 

22.1	General 
	37,876,000 
	38,253,000 
	
22.2 	General Assistance Standard. The 
22.3 	commissioner shall set the monthly standard 
22.4 	of assistance for general assistance units 
22.5 	consisting of an adult recipient who is 
22.6 	childless and unmarried or living apart 
22.7 	from parents or a legal guardian at $203. 
22.8 	The commissioner may reduce this amount 
22.9 	according to Laws 1997, chapter 85, article 
22.10 	3, section 54. 
22.11 	Emergency General Assistance. The 
22.12 	amount appropriated for emergency general 
22.13 	assistance funds is limited to no more 
22.14 	than $7,889,812 in fiscal year 2008 and 
22.15 	$7,889,812 in fiscal year 2009. Funds 
22.16 	to counties must be allocated by the 
22.17 	commissioner using the allocation method 
22.18 	specified in Minnesota Statutes, section 
22.19 	256D.06. 

22.20	(j) Minnesota Supplemental Aid Grants 

22.21	General 
	30,505,000 
	30,812,000 
	
22.22 	Emergency Minnesota Supplemental 
22.23 	Aid Funds. The amount appropriated for 
22.24 	emergency Minnesota supplemental aid 
22.25 	funds is limited to no more than $1,100,000 
22.26 	in fiscal year 2008 and $1,100,000 in fiscal 
22.27 	year 2009. Funds to counties must be 
22.28 	allocated by the commissioner using the 
22.29 	allocation method specified in Minnesota 
22.30 	Statutes, section 256D.46. 

22.31	(k) Group Residential Housing Grants 

22.32	General 
	91,069,000 
	98,671,000 
	
22.33 	People Incorporated. Of the general fund 
22.34 	appropriation, $460,000 each year is to 
23.1 	augment community support and mental 
23.2 	health services provided to individuals 
23.3 	residing in facilities under Minnesota 
23.4 	Statutes, section 256I.05, subdivision 1m. 

23.5
23.6	(l) Other Children and Economic Assistance 
Grants 

23.7	General 
	20,183,000 
	16,333,000 
	
23.8	Federal TANF 
	1,500,000 
	1,500,000 
	
23.9 	Base Adjustment. The general fund base 
23.10 	shall be $16,033,000 in fiscal year 2010 and 
23.11 	$15,533,000 in fiscal year 2011. The TANF 
23.12 	base shall be $1,500,000 in fiscal year 2010 
23.13 	and $1,181,000 in fiscal year 2011. 
23.14 	Homeless and Runaway Youth. Of the 
23.15 	general fund appropriation, $500,000 each 
23.16 	year are for the Runaway and Homeless 
23.17 	Youth Act under Minnesota Statutes, section 
23.18 	256K.45. Funds shall be spent in each area 
23.19 	of the continuum of care to ensure that 
23.20 	programs are meeting the greatest need. This 
23.21 	is a onetime appropriation. 
23.22 	Long-Term Homelessness. Of the general 
23.23 	fund appropriation, $1,500,000 each year are 
23.24 	for implementation of programs to address 
23.25 	long-term homelessness. This is a onetime 
23.26 	appropriation. 
23.27 	Minnesota Community Action Grants. (a) 
23.28 	Of the general fund appropriation, $250,000 
23.29 	each year is for the purposes of Minnesota 
23.30 	community action grants under Minnesota 
23.31 	Statutes, sections 256E.30 to 256E.32. This 
23.32 	is a onetime appropriation. 
23.33 	(b) Of the TANF appropriation, $1,500,000 
23.34 	each year is for community action agencies 
23.35 	for auto repairs, auto loans, and auto purchase 
24.1 	grants to individuals who are eligible to 
24.2 	receive benefits under Minnesota Statutes, 
24.3 	chapter 256J, or who have lost eligibility 
24.4 	for benefits under Minnesota Statutes, 
24.5 	chapter 256J, due to earnings in the prior 12 
24.6 	months. Base level funding for this activity 
24.7 	shall be $1,500,000 in fiscal year 2010 
24.8 	and $1,181,000 in fiscal year 2011. * (The 
24.9 	preceding text beginning "(b) Of the TANF 
24.10 	appropriation," was indicated as vetoed by 
24.11 	the governor.) 
24.12 	(c) Money appropriated under paragraphs (a) 
24.13 	and (b) that is not spent in the first year does 
24.14 	not cancel but is available for the second 
24.15 	year. 

24.16 	Sec. 15.  REPEALER.
 24.17 	(a) Laws 2007, chapter 147, article 2, section 52, is repealed effective July 1, 2008.
24.18 	(b) Minnesota Statutes 2007 Supplement, sections 119B.011, subdivision 13a; 
24.19 	256J.575; and 256J.621, are repealed.