2001 Minnesota Statutes

CHAPTER 256J. Minnesota family investment program

     256J.01 Establishing Minnesota family investment 
  program-statewide. 

    Subdivision 1.    Implementation of Minnesota family 
 investment program (MFIP).  This chapter and chapter 256K may 
 be cited as the Minnesota family investment program (MFIP).  
 MFIP is the statewide implementation of components of the 
 Minnesota family investment plan (MFIP) authorized and formerly 
 codified in section 256.031 and Minnesota family investment 
 plan-Ramsey county (MFIP-R) formerly codified in section 256.047.

    Subd. 2.    Implementation of temporary assistance for 
 needy families (TANF).  The Personal Responsibility and Work 
 Opportunity Reconciliation Act of 1996, Public Law Number 
 104-193, eliminates the entitlement program of aid to families 
 with dependent children (AFDC) and replaces it with block grants 
 to states for temporary assistance for needy families (TANF).  
 TANF provides cash assistance for a limited time to families 
 with children and to pregnant women.  Minnesota's TANF 
 assistance will be provided through a statewide expansion of 
 MFIP.  The modifications specified in this chapter are necessary 
 to comply with the new federal law and to improve MFIP.  
 Eligible applicants and recipients of AFDC, family general 
 assistance, and food stamps will be converted to the MFIP-S 
 program.  Effective January 1, 1998, any new application 
 received for family cash assistance will be processed under the 
 rules of this chapter.  Case maintenance conversion for existing 
 AFDC and FGA cases to MFIP-S as described in this chapter will 
 begin January 1, 1998, and continue through March 31, 1998.  

    Subd. 3.    Relationship to other statutes and rules.  
 MFIP-S replaces eligibility for families with children and 
 pregnant women under the general assistance program, governed by 
 sections 256D.01 to 256D.21 and Minnesota Rules, parts 9500.1200 
 to 9500.1270.  

    Subd. 4.    Changes to waivers.  The commissioner of 
 human services may negotiate and obtain changes in the federal 
 waivers and terms and conditions contained in MFIP, MFIP-R, and 
 MFIP-S.  The commissioner may also terminate federal waivers by 
 directing so in the applicable state plan. 

    Subd. 5.    Compliance system.  The commissioner shall 
 administer a compliance system for the state's temporary 
 assistance for needy families (TANF) program, the food stamp 
 program, emergency assistance, general assistance, medical 
 assistance, general assistance medical care, emergency general 
 assistance, Minnesota supplemental aid, preadmission screening, 
 child support program, and alternative care grants under the 
 powers and authorities named in section 256.01, subdivision 2.  
 The purpose of the compliance system is to permit the 
 commissioner to supervise the administration of public 
 assistance programs and to enforce timely and accurate 
 distribution of benefits, completeness of service and efficient 
 and effective program management and operations, to increase 
 uniformity and consistency in the administration and delivery of 
 public assistance programs throughout the state, and to reduce 
 the possibility of sanction and fiscal disallowances for 
 noncompliance with federal regulations and state statutes. 

    HIST: 1997 c 85 art 1 s 1; 1999 c 159 s 77 

     256J.02 Federal temporary assistance for needy families 
  block grant. 

    Subdivision 1.    Commissioner's authority to administer 
 block grant funds.  The commissioner of human services is 
 authorized to receive, administer, and expend funds available 
 under the TANF block grant authorized under title I of Public 
 Law Number 104-193, the Personal Responsibility and Work 
 Opportunity Reconciliation Act of 1996. 

    Subd. 2.    Use of money.  State money appropriated for 
 purposes of this section and TANF block grant money must be used 
 for: 

    (1) financial assistance to or on behalf of any minor child 
 who is a resident of this state under section 256J.12; 

    (2) employment and training services under this chapter or 
 chapter 256K; 

    (3) emergency financial assistance and services under 
 section 256J.48; 

    (4) diversionary assistance under section 256J.47; 

    (5) the health care and human services training and 
 retention program under chapter 116L, for costs associated with 
 families with children with incomes below 200 percent of the 
 federal poverty guidelines; 

    (6) the pathways program under section 116L.04, subdivision 
 1a; 

    (7) welfare-to-work extended employment services for MFIP 
 participants with severe impairment to employment as defined in 
 section 268A.15, subdivision 1a; 

    (8) the family homeless prevention and assistance program 
 under section 462A.204; 

    (9) the rent assistance for family stabilization 
 demonstration project under section 462A.205; 

    (10) welfare to work transportation authorized under Public 
 Law Number 105-178; 

    (11) reimbursements for the federal share of child support 
 collections passed through to the custodial parent; 

    (12) reimbursements for the working family credit under 
 section 290.0671; 

    (13) intensive ESL grants under Laws 2000, chapter 489, 
 article 1; 

    (14) transitional housing programs under section 119A.43; 

    (15) programs and pilot projects under chapter 256K; and 

    (16) program administration under this chapter. 

    Subd. 3.    Carry forward of federal money.  Temporary 
 assistance for needy families block grant money must be 
 appropriated for the purposes in this section and is available 
 until expended. 

    Subd. 4.    Authority to transfer.  Subject to 
 limitations of title I of Public Law Number 104-193, the 
 Personal Responsibility and Work Opportunity Reconciliation Act 
 of 1996, as amended, the legislature may transfer money from the 
 TANF block grant to the child care fund under chapter 119B, or 
 the Title XX block grant under section 256E.07. 

    Subd. 5.    Indirect cost liability.  Notwithstanding 
 the provisions of section 16A.127, the statewide and agency 
 indirect cost liability identified as part of the TANF grant for 
 any current fiscal year shall be limited to no more than the 
 amount received in fiscal year 1996. 

    HIST: 1997 c 85 art 1 s 2; 1998 c 407 art 6 s 18; 1999 c 245 
 art 6 s 5; 2000 c 488 art 10 s 6 

     256J.021 Separate state program for use of state money. 

    Beginning October 1, 2001, and each year thereafter, the 
 commissioner of human services must treat financial assistance 
 expenditures made to or on behalf of any minor child under 
 section 256J.02, subdivision 2, clause (1), who is a resident of 
 this state under section 256J.12, and who is part of a 
 two-parent eligible household as expenditures under a separately 
 funded state program and report those expenditures to the 
 federal Department of Health and Human Services as separate 
 state program expenditures under Code of Federal Regulations, 
 title 45, section 263.5. 

    HIST: 1Sp2001 c 9 art 10 s 5 

  256J.03 Repealed, 1999 c 245 art 1 s 20 

     256J.06 Community involvement. 

    The MFIP-S program must be administered in a way that, in 
 addition to the county agency, other sectors in the community 
 such as employers from the public and private sectors, 
 not-for-profit organizations, educational and social service 
 agencies, program participants, labor unions, and neighborhood 
 associations are involved. 

    HIST: 1997 c 85 art 1 s 3 

     256J.08 Definitions. 

    Subdivision 1.    Scope of definitions.  The terms used 
 in this chapter have the following meanings unless otherwise 
 provided for by text. 

    Subd. 2.    Absent parent.  "Absent parent" means a 
 minor child's parent who does not live in the same home as the 
 child. 

    Subd. 3.    Agency error.  "Agency error" means an error 
 that results in an overpayment or underpayment to an assistance 
 unit and is not caused by an applicant's or participant's 
 failure to provide adequate, correct, or timely information 
 about income, property, household composition, or other 
 circumstances. 

    Subd. 4.    Appeal.  "Appeal" means a written statement 
 from an applicant or participant who requests a hearing under 
 section 256J.31.  

    Subd. 5.    Applicant.  "Applicant" means a person who 
 has submitted to a county agency an application and whose 
 application has not been acted upon, denied, or voluntarily 
 withdrawn. 

    Subd. 6.    Application.  "Application" means the 
 submission by or on behalf of a family to a county agency of a 
 completed, signed, and dated form, prescribed by the 
 commissioner, that indicates the desire to receive assistance. 

    Subd. 7.    Assistance unit or MFIP-S assistance unit.  
 "Assistance unit" or "MFIP-S assistance unit" means a group of 
 mandatory or optional people receiving or applying for MFIP-S 
 benefits together. 

    Subd. 8.    Authorized representative.  "Authorized 
 representative" means a person who is authorized, in writing, by 
 an applicant or participant to act on the applicant's or 
 participant's behalf in matters involving the application for 
 assistance or participation in MFIP-S. 

    Subd. 9.    Basic needs.  "Basic needs" means the 
 minimum personal requirements of subsistence and is restricted 
 to food, clothing, shelter, utilities, and other items for which 
 the loss, or lack of basic needs, is determined by the county 
 agency to pose a direct, immediate threat to the physical health 
 or safety of the applicant or participant. 

    Subd. 10.    Budget month.  "Budget month" means the 
 calendar month which the county agency uses to determine the 
 income or circumstances of an assistance unit to calculate the 
 amount of the assistance payment in the payment month. 

    Subd. 11.    Caregiver.  "Caregiver" means a minor 
 child's natural or adoptive parent or parents and stepparent who 
 live in the home with the minor child.  For purposes of 
 determining eligibility for this program, caregiver also means 
 any of the following individuals, if adults, who live with and 
 provide care and support to a minor child when the minor child's 
 natural or adoptive parent or parents or stepparents do not 
 reside in the same home:  legal custodian or guardian, 
 grandfather, grandmother, brother, sister, half-brother, 
 half-sister, stepbrother, stepsister, uncle, aunt, first cousin 
 or first cousin once removed, nephew, niece, person of preceding 
 generation as denoted by prefixes of "great," "great-great," or 
 "great-great-great," or a spouse of any person named in the 
 above groups even after the marriage ends by death or divorce. 

    Subd. 12.    Client error.  "Client error" means an 
 error that results in an overpayment or underpayment and is due 
 to an applicant's or participant's failure to provide adequate, 
 correct, or timely information concerning income, property, 
 household composition, or other circumstances. 

    Subd. 13.    Commissioner.  "Commissioner" means the 
 commissioner of human services or the commissioner's designated 
 representative. 

    Subd. 14.    Corrective payment.  "Corrective payment" 
 means an assistance payment that is made to correct an 
 underpayment. 

    Subd. 15.    Countable income.  "Countable income" means 
 earned and unearned income that is not excluded under section 
 256J.21, subdivision 2, or disregarded under section 256J.21, 
 subdivision 3. 

    Subd. 16.    Counted earnings.  "Counted earnings" means 
 the earned income that remains after applicable disregards under 
 section 256J.21, subdivision 4, have been subtracted from gross 
 earned income. 

    Subd. 17.    County agency.  "County agency" means the 
 agency designated by the county board to implement financial 
 assistance for current programs and for MFIP-S and the agency 
 responsible for enforcement of child support collection, and a 
 county or multicounty agency that is authorized under sections 
 393.01, subdivision 7, and 393.07, subdivision 2, to administer 
 MFIP-S. 

    Subd. 18.    County board.  "County board" means a board 
 of commissioners, a local services agency as defined in chapter 
 393, a board established under the Joint Powers Act, section 
 471.59, or a human services board under chapter 402. 

    Subd. 19.    County of financial responsibility.  
 "County of financial responsibility" means the county that has 
 financial responsibility for providing public assistance as 
 specified in chapter 256G. 

    Subd. 20.    County of residence.  "County of residence" 
 means the county where the caregiver has established a home. 

    Subd. 21.    Date of application.  "Date of application" 
 means the date on which the county agency receives an 
 applicant's signed application. 

    Subd. 22.    Deem.  "Deem" means to treat all or part of 
 the income of an individual who is not in the assistance unit, 
 but who is financially responsible for members of the assistance 
 unit, as if it were income available to the assistance unit. 

    Subd. 23.    Department.  "Department" means the 
 Minnesota department of human services. 

    Subd. 24.    Disregard.  "Disregard" means earned income 
 that is not counted when determining initial eligibility or 
 ongoing eligibility and calculating the amount of the assistance 
 payment for participants.  The commissioner shall determine the 
 amount of the disregard according to section 256J.24, 
 subdivision 10. 

    Subd. 24a.    Disqualified.  "Disqualified" means being 
 ineligible to receive MFIP-S due to noncooperation with program 
 requirements.  Except for persons whose disqualification is 
 based on fraud, a disqualified person can take action to correct 
 the reason for ineligibility.  

    Subd. 25.    Documentation.  "Documentation" means a 
 written statement or record that substantiates or validates an 
 assertion made by a person or an action taken by a person, 
 agency, or entity. 

    Subd. 26.    Earned income.  "Earned income" means cash 
 or in-kind income earned through the receipt of wages, salary, 
 commissions, profit from employment activities, net profit from 
 self-employment activities, payments made by an employer for 
 regularly accrued vacation or sick leave, and any other profit 
 from activity earned through effort or labor.  The income must 
 be in return for, or as a result of, legal activity.  

    Subd. 27.    Earned income tax credit.  "Earned income 
 tax credit" means the payment which can be obtained by a 
 qualified person from an employer or from the Internal Revenue 
 Service as provided by section 290.0671 and United States Code, 
 title 26, subtitle A, chapter 1, subchapter A, part 4, subpart 
 C, section 32. 

    Subd. 28.    Emergency.  "Emergency" means a situation 
 or a set of circumstances that causes or threatens to cause 
 destitution to a family with a child under age 21.  

    Subd. 28a.    Encumbrance.  "Encumbrance" means a legal 
 claim against real or personal property that is payable upon the 
 sale of that property. 

    Subd. 29.    Equity value.  "Equity value" means the 
 amount of equity in real or personal property owned by a person 
 and is determined by subtracting any outstanding encumbrances 
 from the fair market value. 

    Subd. 30.    Excluded time.  "Excluded time" has the 
 meaning given in section 256G.02. 

    Subd. 31.    Expedited issuance of the food stamp portion. 
  "Expedited issuance of the food stamp portion" means the 
 issuance of the food stamp portion to eligible assistance units 
 on the day of application as provided in section 393.07, 
 subdivision 10a. 

    Subd. 32.    Fair hearing or hearing.  "Fair hearing" or 
 "hearing" means the evidentiary hearing conducted by the 
 department appeals referee to resolve disputes as specified in 
 section 256J.40, or if not applicable, section 256.045. 

    Subd. 33.    Fair market value.  "Fair market value" 
 means the price that an item of a particular make, model, size, 
 material, or condition would sell for on the open market in the 
 particular geographic area. 

    Subd. 34.    Family.  "Family" includes: 

    (1) the following individuals who live together:  a minor 
 child or a group of minor children related to each other as 
 siblings, half siblings, stepsiblings, or adoptive siblings, 
 together with their natural, adoptive parents, stepparents, or 
 caregiver as defined in subdivision 11; and 

    (2) a pregnant woman with no other children. 

    Subd. 35.    Family wage level.  "Family wage level" 
 means 110 percent of the transitional standard. 

    Subd. 36.    Federal Insurance Contribution Act or FICA. 
  "Federal Insurance Contribution Act" or "FICA" means the 
 federal law under United States Code, title 26, subtitle C, 
 chapter 21, subchapter A, sections 3101 to 3126, that requires 
 withholding or direct payment from earned income. 

    Subd. 37.    Financial case record.  "Financial case 
 record" means an assistance unit's financial eligibility file. 

    Subd. 38.    Full-time student.  "Full-time student" 
 means a person who is enrolled in a graded or ungraded primary, 
 intermediate, secondary, GED preparatory, trade, technical, 
 vocational, or post-secondary school, and who meets the school's 
 standard for full-time attendance. 

    Subd. 39.    General educational development or GED.  
 "General educational development" or "GED" means the general 
 educational development certification issued by the commissioner 
 of children, families, and learning as an equivalent to a 
 secondary school diploma under Minnesota Rules, part 3500.3100, 
 subpart 4. 

    Subd. 40.    Gross earned income.  "Gross earned income" 
 means earned income from employment before mandatory and 
 voluntary payroll deductions.  Gross earned income includes 
 salaries, wages, tips, gratuities, commissions, incentive 
 payments from work or training programs, payments made by an 
 employer for regularly accrued vacation or sick leave, and 
 profits from other activity earned by an individual's effort or 
 labor.  Gross earned income includes uniform and meal allowances 
 if federal income tax is deducted from the allowance.  Gross 
 earned income includes flexible work benefits received from an 
 employer if the employee has the option of receiving the benefit 
 or benefits in cash.  For self-employment, gross earned income 
 is the nonexcluded income minus expenses for the business.  

    Subd. 41.    Gross income.  "Gross income" is the sum of 
 gross earned income and unearned income. 

    Subd. 42.    Gross receipts.  "Gross receipts" means the 
 money received by a business before the expenses of the business 
 are deducted. 

    Subd. 43.    Half-time student.  "Half-time student" 
 means a person who is enrolled in a graded or ungraded primary, 
 intermediate, secondary, GED preparatory, trade, technical, 
 vocational, or post-secondary school, and who meets the school's 
 standard of half-time attendance. 

    Subd. 44.    Home.  "Home" means the primary place of 
 residence used by a person as the base for day-to-day living and 
 does not include locations used as mail drops. 

    Subd. 45.    Homestead.  "Homestead" means the home that 
 is owned by, and is the usual residence of, the assistance unit 
 together with the surrounding property which is not separated 
 from the home by intervening property owned by others.  Public 
 rights-of-way, such as roads which run through the surrounding 
 property and separate it from the home, do not affect the 
 exemption of the property.  Homestead includes an asset that is 
 not real property that the assistance unit uses as a home, such 
 as a vehicle. 

    Subd. 46.    Household.  "Household" means a group of 
 persons who live together. 

    Subd. 47.    Income.  "Income" means cash or in-kind 
 benefit, whether earned or unearned, received by or available to 
 an applicant or participant that is not an asset under section 
 256J.20. 

    Subd. 48.    Initial eligibility.  "Initial eligibility" 
 means the determination of eligibility for an MFIP-S applicant. 

    Subd. 49.    In-kind income.  "In-kind income" means 
 income, benefits, or payments which are provided in a form other 
 than money or liquid assets, including the forms of goods, 
 produce, services, privileges, or payments made on behalf of an 
 applicant or participant by a third party. 

    Subd. 50.    Inquiry.  "Inquiry" means a communication 
 to a county agency through mail, telephone, or in person, by 
 which a person or authorized representative requests information 
 about public assistance.  The county agency shall also treat as 
 an inquiry any communication in which a person requesting 
 assistance offers information about the person's family 
 circumstances that indicates that eligibility for public 
 assistance may exist. 

    Subd. 50a. Repealed, 1Sp2001 c 9 art 10 s 67 

    Subd. 51.    Legally available.  "Legally available" 
 means a person's right under the law to secure, possess, dispose 
 of, or control income or property. 

    Subd. 51a.    Legal custodian.  "Legal custodian" means 
 any person who is under a legal obligation to provide care for a 
 minor and who is in fact providing care for a minor.  For an 
 Indian child, "custodian" means any Indian person who has legal 
 custody of an Indian child under tribal law or custom, under 
 state law, or to whom temporary physical care, custody, and 
 control has been transferred by the parent of the child, as 
 provided in section 260.755, subdivision 10. 

    Subd. 52.    Low-income home energy assistance program or 
 LIHEAP.  "Low-income home energy assistance program" or 
 "LIHEAP" means the program authorized under United States Code, 
 title 42, chapter 94, subchapter II, sections 8621 to 8629, and 
 administered by the Minnesota department of economic security. 

    Subd. 53.    Lump sum.  "Lump sum" means nonrecurring 
 income that is not excluded in section 256J.21. 

    Subd. 54.    Medical assistance.  "Medical assistance" 
 means the program established under chapter 256B and Title XIX 
 of the Social Security Act. 

    Subd. 55.    MFIP-S household report form.  "MFIP-S 
 household report form" means a form prescribed by the 
 commissioner that a participant uses to report information to a 
 county agency about changes in income and other circumstances. 

    Subd. 55a.    MFIP standard of need.  "MFIP standard of 
 need" means the appropriate standard used to determine MFIP 
 benefit payments for the MFIP unit and applies to: 

    (1) the transitional standard, sections 256J.08, 
 subdivision 85, and 256J.24, subdivision 5; and 

    (2) the shared household standard, section 256J.24, 
 subdivision 9. 

    Subd. 56.    Migrant worker.  "Migrant worker" means a 
 person who travels away from home on a regular basis, usually 
 with a group of other laborers, to seek employment in an 
 agriculturally related activity. 

    Subd. 57.    Minnesota family investment program or MFIP. 
  "Minnesota family investment program" or "MFIP" means the 
 assistance program authorized in this chapter and chapter 256K. 

    Subd. 58.    Minnesota supplemental aid or MSA.  
 "Minnesota supplemental aid" or "MSA" means the program 
 established under sections 256D.33 to 256D.54. 

    Subd. 59.    Minor caregiver.  "Minor caregiver" means a 
 person who: 

    (1) is under the age of 18; 

    (2) has never been married or otherwise legally 
 emancipated; and 

    (3) is either the natural parent of a minor child living in 
 the same household or is eligible for assistance paid to a 
 pregnant woman. 

    Subd. 60.    Minor child.  "Minor child" means a child 
 who is living in the same home of a parent or other caregiver, 
 is not the parent of a child in the home, and is either less 
 than 18 years of age or is under the age of 19 years and is a 
 full-time student in a secondary school or pursuing a full-time 
 secondary level course of vocational or technical training 
 designed to fit students for gainful employment. 

    Subd. 61.    Monthly income test.  "Monthly income test" 
 means the test used to determine ongoing eligibility and the 
 assistance payment amount according to section 256J.21. 

    Subd. 61a.    Noncustodial parent.  "Noncustodial parent"
 means a minor child's parent who does not live in the same home 
 as the child.  

    Subd. 62.    Nonrecurring income.  "Nonrecurring income" 
 means a form of income which is received: 

    (1) only one time or is not of a continuous nature; or 

    (2) in a prospective payment month but is no longer 
 received in the corresponding retrospective payment month. 

    Subd. 63.    Overpayment.  "Overpayment" means the 
 portion of an assistance payment issued by the county agency 
 that is greater than the amount for which the assistance unit is 
 eligible. 

    Subd. 64.    Parent.  "Parent" means a child's 
 biological or adoptive parent who is legally obligated to 
 support that child. 

    Subd. 65.    Participant.  "Participant" means a person 
 who is currently receiving cash assistance or the food portion 
 available through MFIP as funded by TANF and the food stamp 
 program.  A person who fails to withdraw or access 
 electronically any portion of the person's cash and food 
 assistance payment by the end of the payment month, who makes a 
 written request for closure before the first of a payment month 
 and repays cash and food assistance electronically issued for 
 that payment month within that payment month, or who returns any 
 uncashed assistance check and food coupons and withdraws from 
 the program is not a participant.  A person who withdraws a cash 
 or food assistance payment by electronic transfer or receives 
 and cashes an MFIP assistance check or food coupons and is 
 subsequently determined to be ineligible for assistance for that 
 period of time is a participant, regardless whether that 
 assistance is repaid.  The term "participant" includes the 
 caregiver relative and the minor child whose needs are included 
 in the assistance payment.  A person in an assistance unit who 
 does not receive a cash and food assistance payment because the 
 person has been suspended from MFIP is a participant. 

    Subd. 66.    Payee.  "Payee" means a person to whom an 
 assistance payment is made payable. 

    Subd. 67.    Payment month.  "Payment month" means the 
 calendar month for which the assistance payment is paid. 

    Subd. 67a.    Person trained in domestic violence.  
 "Person trained in domestic violence" means an individual who 
 works for an organization that is designated by the Minnesota 
 center for crime victims services as providing services to 
 victims of domestic violence, or a county staff person who has 
 received similar specialized training, and includes any other 
 person or organization designated by a qualifying organization 
 under this section.  

    Subd. 68.    Personal property.  "Personal property" 
 means an item of value that is not real property, including the 
 value of a contract for deed held by a seller, assets held in 
 trust on behalf of members of an assistance unit, value of a 
 prepaid burial, savings account, value of stocks and bonds, and 
 value of retirement accounts. 

    Subd. 69.    Probable fraud.  "Probable fraud" means the 
 level of evidence that, if proven as fact, would establish that 
 assistance has been wrongfully obtained. 

    Subd. 70.    Professional certification.  "Professional 
 certification" means: 

    (1) a statement about a person's illness, injury, or 
 incapacity that is signed by a licensed physician, psychological 
 practitioner, or licensed psychologist, qualified by 
 professional training and experience to diagnose and certify the 
 person's condition; or 

    (2) a statement about an incapacity involving a spinal 
 subluxation condition that is signed by a licensed chiropractor 
 qualified by professional training and experience to diagnose 
 and certify the condition. 

    Subd. 71.    Prospective budgeting.  "Prospective 
 budgeting" means a method of determining the amount of the 
 assistance payment in which the budget month and payment month 
 are the same. 

    Subd. 72.    Protective payee.  "Protective payee" means 
 a person other than the caregiver of an assistance unit who 
 receives the monthly assistance payment on behalf of an 
 assistance unit and is responsible to provide for the basic 
 needs of the assistance unit to the extent of that payment. 

    Subd. 73.    Qualified noncitizen.  "Qualified 
 noncitizen" means a person: 

    (1) who was lawfully admitted for permanent residence 
 pursuant to United States Code, title 8; 

    (2) who was admitted to the United States as a refugee 
 pursuant to United States Code, title 8; section 1157; 

    (3) whose deportation is being withheld pursuant to United 
 States Code, title 8, section 1253(h); 

    (4) who was paroled for a period of at least one year 
 pursuant to United States Code, title 8, section 1182(d)(5); 

    (5) who was granted conditional entry pursuant to United 
 State Code, title 8, section 1153(a)(7); 

    (6) who was granted asylum pursuant to United States Code, 
 title 8, section 1158; 

    (7) determined to be a battered noncitizen by the United 
 States Attorney General according to the Illegal Immigration 
 Reform and Immigrant Responsibility Act of 1996, Title V of the 
 Omnibus Consolidated Appropriations Bill, Public Law Number 
 104-208; 

    (8) who is a child of a noncitizen determined to be a 
 battered noncitizen by the United States Attorney General 
 according to the Illegal Immigration Reform and Responsibility 
 Act of 1996, title V, Public Law Number 104-200; or 

    (9) who was admitted as a Cuban or Haitian entrant. 

    Subd. 74.    Real property.  "Real property" means land 
 and all buildings, structures, and improvements, or other 
 fixtures on the land, belonging or appertaining to the land, and 
 all mines, minerals, fossils, and trees on or under the land. 

    Subd. 75.    Reasonable compensation.  "Reasonable 
 compensation" means the value received in exchange for property 
 transferred to another owner that is consistent with fair market 
 value and equals or exceeds the seller's equity in the property, 
 reduced by costs incurred in the sale. 

    Subd. 76.    Recertification.  "Recertification" means 
 the periodic review of eligibility factors to determine an 
 assistance unit's continued eligibility. 

    Subd. 77.    Recoupment.  "Recoupment" means the action 
 of the county agency to reduce a family's monthly assistance 
 payment to recover overpayments caused by client or agency error 
 and overpayments received while an appeal is pending. 

    Subd. 78.    Recovery.  "Recovery" means actions taken 
 by a county agency to reclaim the value of overpayments through 
 voluntary repayment, recoupment from the assistance payment, 
 court action, revenue recapture, or federal tax refund offset 
 program (FTROP). 

    Subd. 79.    Recurring income.  "Recurring income" means 
 a form of income which is: 

    (1) received periodically, and may be received irregularly 
 when receipt can be anticipated even though the date of receipt 
 cannot be predicted; and 

    (2) from the same source or of the same type that is 
 received and budgeted in a prospective month and is received in 
 one or both of the first two retrospective months. 

    Subd. 80.    Unemployment benefits.  "Unemployment 
 benefits" means the insurance benefit paid to an unemployed 
 worker under sections 268.03 to 268.23. 

    Subd. 81.    Retrospective budgeting.  "Retrospective 
 budgeting" means a method of determining the amount of the 
 assistance payment in which the payment month is the second 
 month after the budget month. 

    Subd. 82.    Sanction.  "Sanction" means the reduction 
 of a family's assistance payment by a specified percentage of 
 the MFIP standard of need because:  a nonexempt participant 
 fails to comply with the requirements of sections 256J.52 to 
 256J.55; a parental caregiver fails without good cause to 
 cooperate with the child support enforcement requirements; or a 
 participant fails to comply with the insurance, tort liability, 
 or other requirements of this chapter. 

    Subd. 82a.    Shared household standard.  "Shared 
 household standard" means the basic standard used when the 
 household includes an unrelated member.  The cash portion of the 
 shared household standard is equal to 90 percent of the cash 
 portion of the transitional standard.  The cash portion of the 
 shared household standard plus the food portion equals the full 
 shared household standard. 

    Subd. 82b.    Shelter costs.  "Shelter costs" means 
 rent, manufactured home lot rental costs, or monthly principal, 
 interest, insurance premiums, and property taxes due for 
 mortgages or contracts for deed. 

    Subd. 83.    Significant change.  "Significant change" 
 means a decline in gross income of the amount of the disregard 
 as defined in subdivision 24 or more from the income used to 
 determine the grant for the current month. 

    Subd. 84.    Supplemental Security Income or SSI.  
 "Supplemental Security Income" or "SSI" means the program 
 authorized under title XVI of the Social Security Act. 

    Subd. 85.    Transitional standard.  "Transitional 
 standard" means the basic standard for a family with no other 
 income or a nonworking family and is a combination of the cash 
 assistance needs and food assistance needs for a family of that 
 size. 

    Subd. 86.    Unearned income.  "Unearned income" means 
 income received by a person that does not meet the definition of 
 earned income.  Unearned income includes income from a contract 
 for deed, interest, dividends, unemployment benefits, disability 
 insurance payments, veterans benefits, pension payments, return 
 on capital investment, insurance payments or settlements, 
 severance payments, child support and maintenance payments, and 
 payments for illness or disability whether the premium payments 
 are made in whole or in part by an employer or participant. 

    Subd. 86a.    Unrelated member.  "Unrelated member" 
 means an individual in the household who does not meet the 
 definition of an eligible caregiver. 

    Subd. 87.    Vendor.  "Vendor" means a provider of goods 
 or services. 

    Subd. 88.    Vendor payment.  "Vendor payment" means a 
 payment authorized by a county agency to a vendor. 

    Subd. 89.    Verification.  "Verification" means the 
 process a county agency uses to establish the accuracy or 
 completeness of information from an applicant, participant, 
 third party, or other source as that information relates to 
 program eligibility or an assistance payment. 

    HIST: 1986 c 444; 1997 c 85 art 1 s 4; 1998 c 398 art 5 s 55; 1998 c 
 407 art 6 s 
 20-34; 1999 c 107 s 66; 1999 c 139 art 4 
 s 2; 1999 c 245 art 6 s 6-13; 2000 c 343 s 4; 2000 c 488 art 10 
 s 7; 1Sp2001 c 9 art 10 s 6,7,66 

     256J.09 Applying for assistance. 

    Subdivision 1.    Where to apply.  To apply for 
 assistance a person must submit a signed application to the 
 county agency in the county where that person lives. 

    Subd. 2.    County agency responsibility to provide 
 information.  When a person inquires about assistance, a 
 county agency must: 

    (1) explain the eligibility requirements of, and how to 
 apply for, diversionary assistance as provided in section 
 256J.47; emergency assistance as provided in section 256J.48; 
 MFIP as provided in section 256J.10; or any other assistance for 
 which the person may be eligible; and 

    (2) offer the person brochures developed or approved by the 
 commissioner that describe how to apply for assistance. 

    Subd. 3.    Submitting the application form.  (a) A 
 county agency must offer, in person or by mail, the application 
 forms prescribed by the commissioner as soon as a person makes a 
 written or oral inquiry.  At that time, the county agency must: 

    (1) inform the person that assistance begins with the date 
 the signed application is received by the county agency or the 
 date all eligibility criteria are met, whichever is later; 

    (2) inform the person that any delay in submitting the 
 application will reduce the amount of assistance paid for the 
 month of application; 

    (3) inform a person that the person may submit the 
 application before an interview; 

    (4) explain the information that will be verified during 
 the application process by the county agency as provided in 
 section 256J.32; 

    (5) inform a person about the county agency's average 
 application processing time and explain how the application will 
 be processed under subdivision 5; 

    (6) explain how to contact the county agency if a person's 
 application information changes and how to withdraw the 
 application; 

    (7) inform a person that the next step in the application 
 process is an interview and what a person must do if the 
 application is approved including, but not limited to, attending 
 orientation under section 256J.45 and complying with employment 
 and training services requirements in sections 256J.52 to 
 256J.55; 

    (8) explain the child care and transportation services that 
 are available under paragraph (c) to enable caregivers to attend 
 the interview, screening, and orientation; and 

    (9) identify any language barriers and arrange for 
 translation assistance during appointments, including, but not 
 limited to, screening under subdivision 3a, orientation under 
 section 256J.45, and the initial assessment under section 
 256J.52.  

    (b) Upon receipt of a signed application, the county agency 
 must stamp the date of receipt on the face of the application.  
 The county agency must process the application within the time 
 period required under subdivision 5.  An applicant may withdraw 
 the application at any time by giving written or oral notice to 
 the county agency.  The county agency must issue a written 
 notice confirming the withdrawal.  The notice must inform the 
 applicant of the county agency's understanding that the 
 applicant has withdrawn the application and no longer wants to 
 pursue it.  When, within ten days of the date of the agency's 
 notice, an applicant informs a county agency, in writing, that 
 the applicant does not wish to withdraw the application, the 
 county agency must reinstate the application and finish 
 processing the application. 

    (c) Upon a participant's request, the county agency must 
 arrange for transportation and child care or reimburse the 
 participant for transportation and child care expenses necessary 
 to enable participants to attend the screening under subdivision 
 3a and orientation under section 256J.45.  

    Subd. 3a.    Screening.  The county agency, or at county 
 option, the county's employment and training service provider as 
 defined in section 256J.49, must screen each applicant to 
 determine immediate needs and to determine if the applicant may 
 be eligible for: 

    (1) another program that is not partially funded through 
 the federal temporary assistance to needy families block grant 
 under Title I of Public Law Number 104-193, including the 
 expedited issuance of food stamps under section 256J.28, 
 subdivision 1.  If the applicant may be eligible for another 
 program, a county caseworker must provide the appropriate 
 referral to the program; 

    (2) the diversionary assistance program under section 
 256J.47; or 

    (3) the emergency assistance program under section 256J.48. 

    Subd. 3b.    Interview to determine referrals and 
 services.  If the applicant is not diverted from applying for 
 MFIP, and if the applicant meets the MFIP eligibility 
 requirements, then a county agency must: 

    (1) identify an applicant who is under the age of 20 and 
 explain to the applicant the assessment procedures and 
 employment plan requirements for minor parents under section 
 256J.54; 

    (2) explain to the applicant the eligibility criteria for 
 an exemption under the family violence provisions in section 
 256J.52, subdivision 6, and explain what an applicant should do 
 to develop an alternative employment plan; 

    (3) determine if an applicant qualifies for an exemption 
 under section 256J.56 from employment and training services 
 requirements, explain how a person should report to the county 
 agency any status changes, and explain that an applicant who is 
 exempt may volunteer to participate in employment and training 
 services; 

    (4) for applicants who are not exempt from the requirement 
 to attend orientation, arrange for an orientation under section 
 256J.45 and an initial assessment under section 256J.52; 

    (5) inform an applicant who is not exempt from the 
 requirement to attend orientation that failure to attend the 
 orientation is considered an occurrence of noncompliance with 
 program requirements and will result in an imposition of a 
 sanction under section 256J.46; and 

    (6) explain how to contact the county agency if an 
 applicant has questions about compliance with program 
 requirements. 

    Subd. 4.    Verification of information on application.  
 A county agency must verify information provided by an applicant 
 as required in section 256J.32. 

    Subd. 5.    Processing applications.  Upon receiving an 
 application, a county agency must determine the applicant's 
 eligibility, approve or deny the application, inform the 
 applicant of its decision according to the notice provisions in 
 section 256J.31, and, if eligible, issue the assistance payment 
 to the applicant.  When a county agency is unable to process an 
 application within 30 days, the county agency must inform the 
 applicant of the reason for the delay in writing.  When an 
 applicant establishes the inability to provide required 
 verification within the 30-day processing period, the county 
 agency may not use the expiration of that period as the basis 
 for denial. 

    Subd. 6.    Invalid reason for delay.  A county agency 
 must not delay a decision on eligibility or delay issuing the 
 assistance payment except to establish state residence as 
 provided in section 256J.12 by: 

    (1) treating the 30-day processing period as a waiting 
 period; 

    (2) delaying approval or issuance of the assistance payment 
 pending the decision of the county board; or 

    (3) awaiting the result of a referral to a county agency in 
 another county when the county receiving the application does 
 not believe it is the county of financial responsibility. 

    Subd. 7.    Changes in residence during application.  
 The requirements in subdivisions 5 and 6 apply without regard to 
 the length of time that an applicant remains, or intends to 
 remain, a resident of the county in which the application is 
 made.  When an applicant leaves the county where application was 
 made but remains in the state, section 256J.75 applies and the 
 county agency may request additional information from the 
 applicant about changes in circumstances related to the move. 

    Subd. 8.    Additional applications.  Until a county 
 agency issues notice of approval or denial, additional 
 applications submitted by an applicant are void.  However, an 
 application for monthly assistance and an application for 
 emergency assistance or emergency general assistance may exist 
 concurrently.  More than one application for monthly assistance, 
 emergency assistance, or emergency general assistance may exist 
 concurrently when the county agency decisions on one or more 
 earlier applications have been appealed to the commissioner, and 
 the applicant asserts that a change in circumstances has 
 occurred that would allow eligibility.  A county agency must 
 require additional application forms or supplemental forms as 
 prescribed by the commissioner when a payee's name changes, or 
 when a caregiver requests the addition of another person to the 
 assistance unit.  

    Subd. 9.    Addendum to an existing application.  (a) An 
 addendum to an existing application must be used to add persons 
 to an assistance unit regardless of whether the persons being 
 added are required to be in the assistance unit.  When a person 
 is added by addendum to an assistance unit, eligibility for that 
 person begins on the first of the month the addendum was filed 
 except as provided in section 256J.74, subdivision 2, clause (1).

    (b) An overpayment must be determined when a change in 
 household composition is not reported within the deadlines in 
 section 256J.30, subdivision 9.  Any overpayment must be 
 calculated from the month of the change including the needs, 
 income, and assets of any individual who is required to be 
 included in the assistance unit under section 256J.24, 
 subdivision 2.  Individuals not included in the assistance unit 
 who are identified in section 256J.37, subdivisions 1 to 2, must 
 have their income and assets considered when determining the 
 amount of the overpayment. 

    Subd. 10.    Applicants who do not meet eligibility 
 requirements for MFIP-S.  When an applicant is not eligible 
 for MFIP-S because the applicant does not meet eligibility 
 requirements, the county agency must determine whether the 
 applicant is eligible for food stamps, medical assistance, 
 diversionary assistance, or has a need for emergency assistance 
 when the applicant meets the eligibility requirements for those 
 programs. 

    HIST: 1997 c 85 art 1 s 5; 1998 c 407 art 6 s 35,36; 1Sp2001 c 
 9 art 10 s 8-12 

     256J.10 MFIP-S eligibility requirements. 

    To be eligible for MFIP-S, applicants must meet the general 
 eligibility requirements in sections 256J.11 to 256J.15, the 
 property limitations in section 256J.20, and the income 
 limitations in section 256J.21. 

    HIST: 1997 c 85 art 1 s 6 

     256J.11 Citizenship. 

    Subdivision 1.    General citizenship requirements.  (a) 
 To be eligible for MFIP, a member of the assistance unit must be 
 a citizen of the United States, a qualified noncitizen as 
 defined in section 256J.08, or a noncitizen who is otherwise 
 residing lawfully in the United States. 

    (b) A qualified noncitizen who entered the United States on 
 or after August 22, 1996, is eligible for MFIP.  However, TANF 
 dollars cannot be used to fund the MFIP benefits for an 
 individual under this paragraph for a period of five years after 
 the date of entry unless the qualified noncitizen meets one of 
 the following criteria: 

    (1) was admitted to the United States as a refugee under 
 United States Code, title 8, section 1157; 

    (2) was granted asylum under United States Code, title 8, 
 section 1158; 

    (3) was granted withholding of deportation under the United 
 States Code, title 8, section 1253(h); 

    (4) is a veteran of the United States Armed Forces with an 
 honorable discharge for a reason other than noncitizen status, 
 or is a spouse or unmarried minor dependent child of the same; 
 or 

    (5) is an individual on active duty in the United States 
 Armed Forces, other than for training, or is a spouse or 
 unmarried minor dependent child of the same. 

    (c) A person who is not a qualified noncitizen but who is 
 otherwise residing lawfully in the United States is eligible for 
 MFIP.  However, TANF dollars cannot be used to fund the MFIP 
 benefits for an individual under this paragraph. 

    (d) For purposes of this subdivision, a nonimmigrant in one 
 or more of the classes listed in United States Code, title 8, 
 section 1101(a)(15), or an undocumented immigrant who resides in 
 the United States without the approval or acquiescence of the 
 Immigration and Naturalization Service, is not eligible for 
 MFIP-S. 

    Subd. 2.    Noncitizens; food portion.  State dollars 
 shall fund the food portion of a noncitizen's MFIP benefits when 
 federal food stamp dollars cannot be used to fund those 
 benefits.  The assistance provided under this subdivision, which 
 is designated as a supplement to replace lost benefits under the 
 federal food stamp program, must be disregarded as income in all 
 programs that do not count food stamps as income where the 
 commissioner has the authority to make the income disregard 
 determination for the program. 

    Subd. 3.    Benefits funded with state money.  Legal 
 adult noncitizens who have resided in the country for four years 
 or more as a lawful permanent resident, whose benefits are 
 funded entirely with state money, and who are under 70 years of 
 age, must, as a condition of eligibility: 

    (1) be enrolled in a literacy class, English as a second 
 language class, or a citizen class; 

    (2) be applying for admission to a literacy class, English 
 as a second language class, and is on a waiting list; 

    (3) be in the process of applying for a waiver from the 
 Immigration and Naturalization Service of the English language 
 or civics requirements of the citizenship test; 

    (4) have submitted an application for citizenship to the 
 Immigration and Naturalization Service and is waiting for a 
 testing date or a subsequent swearing in ceremony; or 

    (5) have been denied citizenship due to a failure to pass 
 the test after two attempts or because of an inability to 
 understand the rights and responsibilities of becoming a United 
 States citizen, as documented by the Immigration and 
 Naturalization Service or the county. 

    If the county social service agency determines that a legal 
 noncitizen subject to the requirements of this subdivision will 
 require more than one year of English language training, then 
 the requirements of clause (1) or (2) shall be imposed after the 
 legal noncitizen has resided in the country for three years.  
 Individuals who reside in a facility licensed under chapter 
 144A, 144D, 245A, or 256I are exempt from the requirements of 
 this subdivision. 

    HIST: 1997 c 85 art 1 s 7; 1997 c 203 art 12 s 7; 3Sp1997 c 1 
 s 1; 1998 c 407 art 6 s 37; 1999 c 159 s 78; 1999 c 245 art 6 s 
 14,15 

*   NOTE:  Subdivision 2 was also amended by Laws 1999, chapter 
*159, section 79, to read as follows: 

*   "Subd. 2.    Noncitizens; food portion.  (a) For the 
*period November 1, 1997, to June 30, 1999, noncitizens who do 
*not meet one of the exemptions in section 412 of the Personal 
*Responsibility and Work Opportunity Reconciliation Act of 1996, 
*and are receiving cash assistance under MFIP are eligible for 
*the average value of food stamps for the same family size and 
*composition until MFIP is operative in the noncitizen's county 
*of financial responsibility and thereafter, the food portion of 
*MFIP.  However, federal food stamp dollars cannot be used to 
*fund the food portion of MFIP benefits for an individual under 
*this subdivision.  The assistance provided under this 
*subdivision, which is designated as a supplement to replace lost 
*benefits under the federal food stamp program, must be 
*disregarded as income in all programs that do not count food 
*stamps as income where the commissioner has the authority to 
*make the income disregard determination for the program. 

*   (b) The commissioner shall submit a state plan to the 
*secretary of agriculture to allow the commissioner to purchase 
*federal Food Stamp Program benefits in an amount equal to the 
*MFIP food portion for each legal noncitizen receiving MFIP 
*assistance who is ineligible to participate in the federal Food 
*Stamp Program solely due to the provisions of section 402 or 403 
*of Public Law Number 104-193, as authorized by Title VII of the 
*1997 Emergency Supplemental Appropriations Act, Public Law 
*Number 105-18.  The commissioner shall enter into a contract as 
*necessary with the secretary to use the existing federal Food 
*Stamp Program benefits delivery system for the purposes of 
*administering the food portion of MFIP under this subdivision."

     256J.12 Minnesota residence. 

    Subdivision 1.    Simple residency.  To be eligible for 
 MFIP, an assistance unit must have established residency in this 
 state which means the assistance unit is present in the state 
 and intends to remain here.  A person who lives in this state 
 and who entered this state with a job commitment or to seek 
 employment in this state, whether or not that person is 
 currently employed, meets the criteria in this subdivision.  

    Subd. 1a.    30-day residency requirement.  An 
 assistance unit is considered to have established residency in 
 this state only when a child or caregiver has resided in this 
 state for at least 30 consecutive days with the intention of 
 making the person's home here and not for any temporary 
 purpose.  The birth of a child in Minnesota to a member of the 
 assistance unit does not automatically establish the residency 
 in this state under this subdivision of the other members of the 
 assistance unit.  Time spent in a shelter for battered women 
 shall count toward satisfying the 30-day residency requirement. 

    Subd. 2.    Exceptions.  (a) A county shall waive the 
 30-day residency requirement where unusual hardship would result 
 from denial of assistance. 

    (b) For purposes of this section, unusual hardship means an 
 assistance unit: 

    (1) is without alternative shelter; or 

    (2) is without available resources for food. 

    (c) For purposes of this subdivision, the following 
 definitions apply (1) "metropolitan statistical area" is as 
 defined by the U.S. Census Bureau; (2) "alternative shelter" 
 includes any shelter that is located within the metropolitan 
 statistical area containing the county and for which the family 
 is eligible, provided the assistance unit does not have to 
 travel more than 20 miles to reach the shelter and has access to 
 transportation to the shelter.  Clause (2) does not apply to 
 counties in the Minneapolis-St. Paul metropolitan statistical 
 area. 

    (d) Applicants are considered to meet the residency 
 requirement under subdivision 1a if they once resided in 
 Minnesota and: 

    (1) joined the United States armed services, returned to 
 Minnesota within 30 days of leaving the armed services, and 
 intend to remain in Minnesota; or 

    (2) left to attend school in another state, paid 
 nonresident tuition or Minnesota tuition rates under a 
 reciprocity agreement, and returned to Minnesota within 30 days 
 of graduation with the intent to remain in Minnesota. 

    (e) The 30-day residence requirement is met when: 

    (1) a minor child or a minor caregiver moves from another 
 state to the residence of a relative caregiver; and 

    (2) the relative caregiver has resided in Minnesota for at 
 least 30 consecutive days and:  

    (i) the minor caregiver applies for and receives MFIP; or 

    (ii) the relative caregiver applies for assistance for the 
 minor child but does not choose to be a member of the MFIP 
 assistance unit. 

    Subd. 2a.    Migrant workers.  Migrant workers, as 
 defined in section 256J.08, and their immediate families are 
 exempt from the requirements of subdivisions 1 and 1a, provided 
 the migrant worker provides verification that the migrant family 
 worked in this state within the last 12 months and earned at 
 least $1,000 in gross wages during the time the migrant worker 
 worked in this state. 

    Subd. 3. Repealed, 1Sp2001 c 9 art 10 s 67 

    Subd. 4.    Severability clause.  If any subdivision in 
 this section is enjoined from implementation or found 
 unconstitutional by any court of competent jurisdiction, the 
 remaining subdivisions shall remain valid and shall be given 
 full effect. 

    HIST: 1997 c 85 art 1 s 8; 1997 c 203 art 12 s 8; 1998 c 407 
 art 6 s 38; 1999 c 159 s 80; 1999 c 245 art 6 s 16,17 

     256J.13 Minor child in assistance unit; physical 
  presence. 

    Subdivision 1.    Minor child or pregnant woman.  The 
 assistance unit must include at least one minor child or a 
 pregnant woman.  If a minor child is a recipient of Supplemental 
 Security Income or Minnesota supplemental aid, the assistance 
 unit is eligible for MFIP-S, but the needs of the minor child 
 receiving Supplemental Security Income or Minnesota supplemental 
 aid must not be taken into account when the county agency 
 determines the amount of the assistance payment to be paid to 
 the assistance unit. 

    Subd. 2.    Physical presence.  A minor child and a 
 caregiver must live together except as provided in the following 
 paragraphs. 

    (a) The physical presence requirement is met when a minor 
 child is required to live away from the caregiver's home to meet 
 the need for educational curricula that cannot be met by, but is 
 approved by, the local public school district, the home is 
 maintained for the minor child's return during periodic school 
 vacations, and the caregiver continues to maintain 
 responsibility for the support and care of the minor child. 

    (b) The physical presence requirement is met when an 
 applicant caregiver or applicant minor child is away from the 
 home due to illness or hospitalization, when the home is 
 maintained for the return of the absent family member, the 
 absence is not expected to last more than six months beyond the 
 month of departure, and the conditions of clause (1), (2), or 
 (3) apply: 

    (1) when the minor child and caregiver lived together 
 immediately prior to the absence, the caregiver continues to 
 maintain responsibility for the support and care of the minor 
 child, and the absence is reported at the time of application; 

    (2) when the pregnant mother is hospitalized or out of the 
 home due to the pregnancy; or 

    (3) when the newborn child and mother are hospitalized at 
 the time of birth. 

    (c) The absence of a caregiver or minor child does not 
 affect eligibility for the month of departure when the caregiver 
 or minor child received assistance for that month and lived 
 together immediately prior to the absence.  Eligibility also 
 exists in the following month when the absence ends on or before 
 the tenth day of that month.  A temporary absence of a caregiver 
 or a minor child which continues beyond the month of departure 
 must not affect eligibility when the home is maintained for the 
 return of the absent family member, the caregiver continues to 
 maintain responsibility for the support and care of the minor 
 child, and one of clauses (1) to (7) applies: 

    (1) a participant caregiver or participant child is absent 
 due to illness or hospitalization, and the absence is expected 
 to last no more than six months beyond the month of departure; 

    (2) a participant child is out of the home due to placement 
 in foster care as defined in section 260B.007, subdivision 7, 
 and 260C.007, subdivision 15, when the placement will not be 
 paid under title IV-E of the Social Security Act, and when the 
 absence is expected to last no more than six months beyond the 
 month of departure; 

    (3) a participant minor child is out of the home for a 
 vacation, the vacation is not with an absent parent, and the 
 absence is expected to last no more than two months beyond the 
 month of departure; 

    (4) a participant minor child is out of the home due to a 
 visit or vacation with an absent parent, the home of the minor 
 child remains with the caregiver, the absence meets the 
 conditions of this paragraph and the absence is expected to last 
 no more than two months beyond the month of departure; 

    (5) a participant caregiver is out of the home due to a 
 death or illness of a relative, incarceration, training, or 
 employment search and suitable arrangements have been made for 
 the care of the minor child, or a participant minor child is out 
 of the home due to incarceration, and the absence is expected to 
 last no more than two months beyond the month of departure; 

    (6) a participant caregiver and a participant minor child 
 are both absent from Minnesota due to a situation described in 
 clause (5), except for incarceration, and the absence is 
 expected to last no more than one month beyond the month of the 
 departure; or 

    (7) a participant minor child has run away from home, and 
 another person has not made application for that minor child, 
 assistance must continue for no more than two months following 
 the month of departure. 

    HIST: 1997 c 85 art 1 s 9; 1999 c 139 art 4 s 2; 2001 c 178 
 art 1 s 44 

     256J.14 Eligibility for parenting or pregnant minors. 

    (a) The definitions in this paragraph only apply to this 
 subdivision. 

    (1) "Household of a parent, legal guardian, or other adult 
 relative" means the place of residence of: 

    (i) a natural or adoptive parent; 

    (ii) a legal guardian according to appointment or 
 acceptance under section 260C.325, 525.615, or 525.6165, and 
 related laws; 

    (iii) a caregiver as defined in section 256J.08, 
 subdivision 11; or 

    (iv) an appropriate adult relative designated by a county 
 agency. 

    (2) "Adult-supervised supportive living arrangement" means 
 a private family setting which assumes responsibility for the 
 care and control of the minor parent and minor child, or other 
 living arrangement, not including a public institution, licensed 
 by the commissioner of human services which ensures that the 
 minor parent receives adult supervision and supportive services, 
 such as counseling, guidance, independent living skills 
 training, or supervision. 

    (b) A minor parent and the minor child who is in the care 
 of the minor parent must reside in the household of a parent, 
 legal guardian, other adult relative, or in an adult-supervised 
 supportive living arrangement in order to receive MFIP unless: 

    (1) the minor parent has no living parent, other adult 
 relative, or legal guardian whose whereabouts is known; 

    (2) no living parent, other adult relative, or legal 
 guardian of the minor parent allows the minor parent to live in 
 the parent's, other adult relative's, or legal guardian's home; 

    (3) the minor parent lived apart from the minor parent's 
 own parent or legal guardian for a period of at least one year 
 before either the birth of the minor child or the minor parent's 
 application for MFIP; 

    (4) the physical or emotional health or safety of the minor 
 parent or minor child would be jeopardized if the minor parent 
 and the minor child resided in the same residence with the minor 
 parent's parent, other adult relative, or legal guardian; or 

    (5) an adult supervised supportive living arrangement is 
 not available for the minor parent and child in the county in 
 which the minor parent and child currently reside.  If an adult 
 supervised supportive living arrangement becomes available 
 within the county, the minor parent and child must reside in 
 that arrangement. 

    (c) The county agency shall inform minor applicants both 
 orally and in writing about the eligibility requirements, their 
 rights and obligations under the MFIP program, and any other 
 applicable orientation information.  The county must advise the 
 minor of the possible exemptions and specifically ask whether 
 one or more of these exemptions is applicable.  If the minor 
 alleges one or more of these exemptions, then the county must 
 assist the minor in obtaining the necessary verifications to 
 determine whether or not these exemptions apply. 

    (d) If the county worker has reason to suspect that the 
 physical or emotional health or safety of the minor parent or 
 minor child would be jeopardized if they resided with the minor 
 parent's parent, other adult relative, or legal guardian, then 
 the county worker must make a referral to child protective 
 services to determine if paragraph (b), clause (4), applies.  A 
 new determination by the county worker is not necessary if one 
 has been made within the last six months, unless there has been 
 a significant change in circumstances which justifies a new 
 referral and determination. 

    (e) If a minor parent is not living with a parent, legal 
 guardian, or other adult relative due to paragraph (b), clause 
 (1), (2), or (4), the minor parent must reside, when possible, 
 in a living arrangement that meets the standards of paragraph 
 (a), clause (2). 

    (f) Regardless of living arrangement, MFIP must be paid, 
 when possible, in the form of a protective payment on behalf of 
 the minor parent and minor child according to section 256J.39, 
 subdivisions 2 to 4. 

    HIST: 1997 c 85 art 1 s 10; 1998 c 407 art 6 s 39; 1999 c 139 
 art 4 s 2; 1999 c 245 art 6 s 18 

     256J.15 Other eligibility conditions. 

    Subdivision 1.    Eligibility when there is shared, court 
 ordered, and other custody arrangements.  The language of a 
 court order that specifies joint legal or physical custody does 
 not preclude a determination that a parent is absent.  Absence 
 must be determined based on the actual facts of the absence 
 according to paragraphs (a) to (c).  

    (a) When a minor child spends time in each of the parents' 
 homes within a payment month, the minor child's home shall be 
 considered the home in which the majority of the minor child's 
 time is spent.  When this time is exactly equal within a payment 
 month, or when the parents alternately live in the minor child's 
 home within a payment month, the minor child's home shall be 
 with that parent who is applying for MFIP-S, unless the minor 
 child's needs for the full payment month have already been met 
 through the provision of assistance to the other parent for that 
 month.  

    (b) When the physical custody of a minor child alternates 
 between parents for periods of at least one payment month, each 
 parent shall be eligible for assistance for any full payment 
 months the minor child's home is with that parent, except under 
 the conditions in paragraph (c).  

    (c) When a minor child's home is with one parent for the 
 majority of time in each month for at least nine consecutive 
 calendar months, and that minor child visits or vacations with 
 the other parent under section 256J.13, the minor child's home 
 remains with the first parent even when the stay with the second 
 parent is for all or the majority of the months in the period of 
 the temporary absence. 

    Subd. 2.    Eligibility during labor disputes.  To 
 receive assistance when a member of an assistance unit is on 
 strike, or when an individual identified under section 256J.37, 
 subdivisions 1 to 2, whose income and assets must be considered 
 when determining the unit's eligibility is on strike, the 
 assistance unit must have been receiving MFIP-S or have been 
 eligible for MFIP-S on the day before the strike. 

    The county agency must count the striker's prestrike 
 earnings as current earnings.  A significant change cannot be 
 invoked when a member of an assistance unit, or an individual 
 identified under section 256J.37, subdivisions 1 to 2, is on 
 strike.  A member of an assistance unit, or an individual 
 identified under section 256J.37, subdivisions 1 to 2, is not 
 considered a striker when that person is not in the bargaining 
 unit that voted for the strike and does not cross the picket 
 line for fear of personal injury. 

    HIST: 1997 c 85 art 1 s 11; 1998 c 407 art 6 s 40 

     256J.20 Property limitations. 

    Subdivision 1.    Property ownership provisions.  The 
 county agency must apply paragraphs (a) to (d) to real and 
 personal property.  The county agency must use the equity value 
 of legally available real and personal property, except property 
 excluded in subdivisions 2 and 3, to determine whether an 
 applicant or participant is eligible for assistance. 

    (a) When real or personal property is jointly owned by two 
 or more persons, the county agency shall assume that each person 
 owns an equal share, except that either person owns the entire 
 sum of a joint personal checking or savings account.  When an 
 applicant or participant documents greater or lesser ownership, 
 the county agency must use that greater or lesser share to 
 determine the equity value held by the applicant or 
 participant.  Other types of ownership must be evaluated 
 according to law. 

    (b) Real or personal property owned by the applicant or 
 participant must be presumed legally available to the applicant 
 or participant unless the applicant or participant documents 
 that the property is not legally available to the applicant or 
 participant.  When real or personal property is not legally 
 available, its equity value must not be applied against the 
 limits of subdivisions 2 and 3. 

    (c) An applicant must disclose whether the applicant has 
 transferred real or personal property valued in excess of the 
 property limits in subdivisions 2 and 3 for which reasonable 
 compensation was not received within one year prior to 
 application.  A participant must disclose all transfers of 
 property valued in excess of these limits, according to the 
 reporting requirements in section 256J.30, subdivision 9.  When 
 a transfer of real or personal property without reasonable 
 compensation has occurred: 

    (1) the person who transferred the property must provide 
 the property's description, information needed to determine the 
 property's equity value, the names of the persons who received 
 the property, and the circumstances of and reasons for the 
 transfer; and 

    (2) when the transferred property can be reasonably 
 reacquired, or when reasonable compensation can be secured, the 
 property is presumed legally available to the applicant or 
 participant. 

    (d) A participant may build the equity value of real and 
 personal property to the limits in subdivisions 2 and 3. 

    Subd. 2.    Real property limitations.  Ownership of 
 real property by an applicant or participant is subject to the 
 limitations in paragraphs (a) and (b). 

    (a) A county agency shall exclude the homestead of an 
 applicant or participant according to clauses (1) to (5): 

    (1) an applicant or participant who is purchasing real 
 property through a contract for deed and using that property as 
 a home is considered the owner of real property; 

    (2) the total amount of land that can be excluded under 
 this subdivision is limited to surrounding property which is not 
 separated from the home by intervening property owned by 
 others.  Additional property must be assessed as to its legal 
 and actual availability according to subdivision 1; 

    (3) when real property that has been used as a home by a 
 participant is sold, the county agency must treat the cash 
 proceeds from the sale as excluded property for six months when 
 the participant intends to reinvest the proceeds in another home 
 and maintains those proceeds, unused for other purposes, in a 
 separate account; 

    (4) when the homestead is jointly owned, but the client 
 does not reside in it because of legal separation, pending 
 divorce, or battering or abuse by the spouse or partner, the 
 homestead is excluded; and 

    (5) the homestead shall continue to be excluded if it is 
 temporarily unoccupied due to employment, illness, or as the 
 result of compliance with a county-approved employability plan.  
 The education, training, or job search must be within the state, 
 but can be outside the immediate geographic area.  A homestead 
 temporarily unoccupied because it is not habitable due to a 
 casualty or natural disaster is excluded.  The homestead is 
 excluded during periods only if the client intends to return to 
 it. 

    (b) The equity value of real property that is not excluded 
 under paragraph (a) and which is legally available must be 
 applied against the limits in subdivision 3.  When the equity 
 value of the real property exceeds the limits under subdivision 
 3, the applicant or participant may qualify to receive 
 assistance when the applicant or participant continues to make a 
 good faith effort to sell the property and signs a legally 
 binding agreement to repay the amount of assistance, less child 
 support collected by the agency.  Repayment must be made within 
 five working days after the property is sold.  Repayment to the 
 county agency must be in the amount of assistance received or 
 the proceeds of the sale, whichever is less. 

    Subd. 3.    Other property limitations.  To be eligible 
 for MFIP, the equity value of all nonexcluded real and personal 
 property of the assistance unit must not exceed $2,000 for 
 applicants and $5,000 for ongoing participants.  The value of 
 assets in clauses (1) to (19) must be excluded when determining 
 the equity value of real and personal property: 

    (1) a licensed vehicle up to a loan value of less than or 
 equal to $7,500.  The county agency shall apply any excess loan 
 value as if it were equity value to the asset limit described in 
 this section.  If the assistance unit owns more than one 
 licensed vehicle, the county agency shall determine the vehicle 
 with the highest loan value and count only the loan value over 
 $7,500, excluding:  (i) the value of one vehicle per physically 
 disabled person when the vehicle is needed to transport the 
 disabled unit member; this exclusion does not apply to mentally 
 disabled people; (ii) the value of special equipment for a 
 handicapped member of the assistance unit; and (iii) any vehicle 
 used for long-distance travel, other than daily commuting, for 
 the employment of a unit member. 

    The county agency shall count the loan value of all other 
 vehicles and apply this amount as if it were equity value to the 
 asset limit described in this section.  To establish the loan 
 value of vehicles, a county agency must use the N.A.D.A. 
 Official Used Car Guide, Midwest Edition, for newer model cars.  
 When a vehicle is not listed in the guidebook, or when the 
 applicant or participant disputes the loan value listed in the 
 guidebook as unreasonable given the condition of the particular 
 vehicle, the county agency may require the applicant or 
 participant document the loan value by securing a written 
 statement from a motor vehicle dealer licensed under section 
 168.27, stating the amount that the dealer would pay to purchase 
 the vehicle.  The county agency shall reimburse the applicant or 
 participant for the cost of a written statement that documents a 
 lower loan value; 

    (2) the value of life insurance policies for members of the 
 assistance unit; 

    (3) one burial plot per member of an assistance unit; 

    (4) the value of personal property needed to produce earned 
 income, including tools, implements, farm animals, inventory, 
 business loans, business checking and savings accounts used at 
 least annually and used exclusively for the operation of a 
 self-employment business, and any motor vehicles if at least 50 
 percent of the vehicle's use is to produce income and if the 
 vehicles are essential for the self-employment business; 

    (5) the value of personal property not otherwise specified 
 which is commonly used by household members in day-to-day living 
 such as clothing, necessary household furniture, equipment, and 
 other basic maintenance items essential for daily living; 

    (6) the value of real and personal property owned by a 
 recipient of Supplemental Security Income or Minnesota 
 supplemental aid; 

    (7) the value of corrective payments, but only for the 
 month in which the payment is received and for the following 
 month; 

    (8) a mobile home or other vehicle used by an applicant or 
 participant as the applicant's or participant's home; 

    (9) money in a separate escrow account that is needed to 
 pay real estate taxes or insurance and that is used for this 
 purpose; 

    (10) money held in escrow to cover employee FICA, employee 
 tax withholding, sales tax withholding, employee worker 
 compensation, business insurance, property rental, property 
 taxes, and other costs that are paid at least annually, but less 
 often than monthly; 

    (11) monthly assistance, emergency assistance, and 
 diversionary payments for the current month's needs; 

    (12) the value of school loans, grants, or scholarships for 
 the period they are intended to cover; 

    (13) payments listed in section 256J.21, subdivision 2, 
 clause (9), which are held in escrow for a period not to exceed 
 three months to replace or repair personal or real property; 

    (14) income received in a budget month through the end of 
 the payment month; 

    (15) savings from earned income of a minor child or a minor 
 parent that are set aside in a separate account designated 
 specifically for future education or employment costs; 

    (16) the federal earned income credit, Minnesota working 
 family credit, state and federal income tax refunds, state 
 homeowners and renters credits under chapter 290A, property tax 
 rebates and other federal or state tax rebates in the month 
 received and the following month; 

    (17) payments excluded under federal law as long as those 
 payments are held in a separate account from any nonexcluded 
 funds; 

    (18) the assets of children ineligible to receive MFIP 
 benefits because foster care or adoption assistance payments are 
 made on their behalf; and 

    (19) the assets of persons whose income is excluded under 
 section 256J.21, subdivision 2, clause (43). 

    HIST: 1997 c 85 art 1 s 12; 1997 c 203 art 12 s 9; 1998 c 407 
 art 6 s 41,42; 1999 c 245 art 6 s 19; 1Sp2001 c 2 s 144 

     256J.21 Income limitations. 

    Subdivision 1.    Income inclusions.  To determine 
 MFIP-S eligibility, the county agency must evaluate income 
 received by members of an assistance unit, or by other persons 
 whose income is considered available to the assistance unit, and 
 only count income that is available to the member of the 
 assistance unit.  Income is available if the individual has 
 legal access to the income.  All payments, unless specifically 
 excluded in subdivision 2, must be counted as income. 

    Subd. 2.    Income exclusions.  The following must be 
 excluded in determining a family's available income: 

    (1) payments for basic care, difficulty of care, and 
 clothing allowances received for providing family foster care to 
 children or adults under Minnesota Rules, parts 9545.0010 to 
 9545.0260 and 9555.5050 to 9555.6265, and payments received and 
 used for care and maintenance of a third-party beneficiary who 
 is not a household member; 

    (2) reimbursements for employment training received through 
 the Job Training Partnership Act, United States Code, title 29, 
 chapter 19, sections 1501 to 1792b; 

    (3) reimbursement for out-of-pocket expenses incurred while 
 performing volunteer services, jury duty, employment, or 
 informal carpooling arrangements directly related to employment; 

    (4) all educational assistance, except the county agency 
 must count graduate student teaching assistantships, 
 fellowships, and other similar paid work as earned income and, 
 after allowing deductions for any unmet and necessary 
 educational expenses, shall count scholarships or grants awarded 
 to graduate students that do not require teaching or research as 
 unearned income; 

    (5) loans, regardless of purpose, from public or private 
 lending institutions, governmental lending institutions, or 
 governmental agencies; 

    (6) loans from private individuals, regardless of purpose, 
 provided an applicant or participant documents that the lender 
 expects repayment; 

    (7)(i) state income tax refunds; and 

    (ii) federal income tax refunds; 

    (8)(i) federal earned income credits; 

    (ii) Minnesota working family credits; 

    (iii) state homeowners and renters credits under chapter 
 290A; and 

    (iv) federal or state tax rebates; 

    (9) funds received for reimbursement, replacement, or 
 rebate of personal or real property when these payments are made 
 by public agencies, awarded by a court, solicited through public 
 appeal, or made as a grant by a federal agency, state or local 
 government, or disaster assistance organizations, subsequent to 
 a presidential declaration of disaster; 

    (10) the portion of an insurance settlement that is used to 
 pay medical, funeral, and burial expenses, or to repair or 
 replace insured property; 

    (11) reimbursements for medical expenses that cannot be 
 paid by medical assistance; 

    (12) payments by a vocational rehabilitation program 
 administered by the state under chapter 268A, except those 
 payments that are for current living expenses; 

    (13) in-kind income, including any payments directly made 
 by a third party to a provider of goods and services; 

    (14) assistance payments to correct underpayments, but only 
 for the month in which the payment is received; 

    (15) emergency assistance payments; 

    (16) funeral and cemetery payments as provided by section 
 256.935; 

    (17) nonrecurring cash gifts of $30 or less, not exceeding 
 $30 per participant in a calendar month; 

    (18) any form of energy assistance payment made through 
 Public Law Number 97-35, Low-Income Home Energy Assistance Act 
 of 1981, payments made directly to energy providers by other 
 public and private agencies, and any form of credit or rebate 
 payment issued by energy providers; 

    (19) Supplemental Security Income (SSI), including 
 retroactive SSI payments and other income of an SSI recipient; 

    (20) Minnesota supplemental aid, including retroactive 
 payments; 

    (21) proceeds from the sale of real or personal property; 

    (22) adoption assistance payments under section 259.67; 

    (23) state-funded family subsidy program payments made 
 under section 252.32 to help families care for children with 
 mental retardation or related conditions, consumer support grant 
 funds under section 256.476, and resources and services for a 
 disabled household member under one of the home and 
 community-based waiver services programs under chapter 256B; 

    (24) interest payments and dividends from property that is 
 not excluded from and that does not exceed the asset limit; 

    (25) rent rebates; 

    (26) income earned by a minor caregiver, minor child 
 through age 6, or a minor child who is at least a half-time 
 student in an approved elementary or secondary education 
 program; 

    (27) income earned by a caregiver under age 20 who is at 
 least a half-time student in an approved elementary or secondary 
 education program; 

    (28) MFIP child care payments under section 119B.05; 

    (29) all other payments made through MFIP to support a 
 caregiver's pursuit of greater self-support; 

    (30) income a participant receives related to shared living 
 expenses; 

    (31) reverse mortgages; 

    (32) benefits provided by the Child Nutrition Act of 1966, 
 United States Code, title 42, chapter 13A, sections 1771 to 
 1790; 

    (33) benefits provided by the women, infants, and children 
 (WIC) nutrition program, United States Code, title 42, chapter 
 13A, section 1786; 

    (34) benefits from the National School Lunch Act, United 
 States Code, title 42, chapter 13, sections 1751 to 1769e; 

    (35) relocation assistance for displaced persons under the 
 Uniform Relocation Assistance and Real Property Acquisition 
 Policies Act of 1970, United States Code, title 42, chapter 61, 
 subchapter II, section 4636, or the National Housing Act, United 
 States Code, title 12, chapter 13, sections 1701 to 1750jj; 

    (36) benefits from the Trade Act of 1974, United States 
 Code, title 19, chapter 12, part 2, sections 2271 to 2322; 

    (37) war reparations payments to Japanese Americans and 
 Aleuts under United States Code, title 50, sections 1989 to 
 1989d; 

    (38) payments to veterans or their dependents as a result 
 of legal settlements regarding Agent Orange or other chemical 
 exposure under Public Law Number 101-239, section 10405, 
 paragraph (a)(2)(E); 

    (39) income that is otherwise specifically excluded from 
 MFIP consideration in federal law, state law, or federal 
 regulation; 

    (40) security and utility deposit refunds; 

    (41) American Indian tribal land settlements excluded under 
 Public Law Numbers 98-123, 98-124, and 99-377 to the Mississippi 
 Band Chippewa Indians of White Earth, Leech Lake, and Mille Lacs 
 reservations and payments to members of the White Earth Band, 
 under United States Code, title 25, chapter 9, section 331, and 
 chapter 16, section 1407; 

    (42) all income of the minor parent's parents and 
 stepparents when determining the grant for the minor parent in 
 households that include a minor parent living with parents or 
 stepparents on MFIP with other children; 

    (43) income of the minor parent's parents and stepparents 
 equal to 200 percent of the federal poverty guideline for a 
 family size not including the minor parent and the minor 
 parent's child in households that include a minor parent living 
 with parents or stepparents not on MFIP when determining the 
 grant for the minor parent.  The remainder of income is deemed 
 as specified in section 256J.37, subdivision 1b; 

    (44) payments made to children eligible for relative 
 custody assistance under section 257.85; 

    (45) vendor payments for goods and services made on behalf 
 of a client unless the client has the option of receiving the 
 payment in cash; and 

    (46) the principal portion of a contract for deed payment. 

    Subd. 3.    Initial income test.  The county agency 
 shall determine initial eligibility by considering all earned 
 and unearned income that is not excluded under subdivision 2.  
 To be eligible for MFIP, the assistance unit's countable income 
 minus the disregards in paragraphs (a) and (b) must be below the 
 transitional standard of assistance according to section 256J.24 
 for that size assistance unit. 

    (a) The initial eligibility determination must disregard 
 the following items: 

    (1) the employment disregard is 18 percent of the gross 
 earned income whether or not the member is working full time or 
 part time; 

    (2) dependent care costs must be deducted from gross earned 
 income for the actual amount paid for dependent care up to a 
 maximum of $200 per month for each child less than two years of 
 age, and $175 per month for each child two years of age and 
 older under this chapter and chapter 119B; 

    (3) all payments made according to a court order for 
 spousal support or the support of children not living in the 
 assistance unit's household shall be disregarded from the income 
 of the person with the legal obligation to pay support, provided 
 that, if there has been a change in the financial circumstances 
 of the person with the legal obligation to pay support since the 
 support order was entered, the person with the legal obligation 
 to pay support has petitioned for a modification of the support 
 order; and 

    (4) an allocation for the unmet need of an ineligible 
 spouse or an ineligible child under the age of 21 for whom the 
 caregiver is financially responsible and who lives with the 
 caregiver according to section 256J.36. 

    (b) Notwithstanding paragraph (a), when determining initial 
 eligibility for applicant units when at least one member has 
 received work first or MFIP in this state within four months of 
 the most recent application for MFIP, apply the disregard as 
 defined in section 256J.08, subdivision 24, for all unit members.

    After initial eligibility is established, the assistance 
 payment calculation is based on the monthly income test. 

    Subd. 4.    Monthly income test and determination of 
 assistance payment.  The county agency shall determine ongoing 
 eligibility and the assistance payment amount according to the 
 monthly income test.  To be eligible for MFIP, the result of the 
 computations in paragraphs (a) to (e) must be at least $1. 

    (a) Apply an income disregard as defined in section 
 256J.08, subdivision 24, to gross earnings and subtract this 
 amount from the family wage level.  If the difference is equal 
 to or greater than the MFIP standard of need, the assistance 
 payment is equal to the MFIP standard of need.  If the 
 difference is less than the MFIP standard of need, the 
 assistance payment is equal to the difference.  The employment 
 disregard in this paragraph must be deducted every month there 
 is earned income. 

    (b) All payments made according to a court order for 
 spousal support or the support of children not living in the 
 assistance unit's household must be disregarded from the income 
 of the person with the legal obligation to pay support, provided 
 that, if there has been a change in the financial circumstances 
 of the person with the legal obligation to pay support since the 
 support order was entered, the person with the legal obligation 
 to pay support has petitioned for a modification of the court 
 order. 

    (c) An allocation for the unmet need of an ineligible 
 spouse or an ineligible child under the age of 21 for whom the 
 caregiver is financially responsible and who lives with the 
 caregiver must be made according to section 256J.36. 

    (d) Subtract unearned income dollar for dollar from the 
 MFIP standard of need to determine the assistance payment amount.

    (e) When income is both earned and unearned, the amount of 
 the assistance payment must be determined by first treating 
 gross earned income as specified in paragraph (a).  After 
 determining the amount of the assistance payment under paragraph 
 (a), unearned income must be subtracted from that amount dollar 
 for dollar to determine the assistance payment amount. 

    (f) When the monthly income is greater than the MFIP 
 standard of need after deductions and the income will only 
 exceed the standard for one month, the county agency must 
 suspend the assistance payment for the payment month. 

    Subd. 5.    Distribution of income.  The income of all 
 members of the assistance unit must be counted.  Income may also 
 be deemed from ineligible persons to the assistance unit.  
 Income must be attributed to the person who earns it or to the 
 assistance unit according to paragraphs (a) to (c). 

    (a) Funds distributed from a trust, whether from the 
 principal holdings or sale of trust property or from the 
 interest and other earnings of the trust holdings, must be 
 considered income when the income is legally available to an 
 applicant or participant.  Trusts are presumed legally available 
 unless an applicant or participant can document that the trust 
 is not legally available. 

    (b) Income from jointly owned property must be divided 
 equally among property owners unless the terms of ownership 
 provide for a different distribution. 

    (c) Deductions are not allowed from the gross income of a 
 financially responsible household member or by the members of an 
 assistance unit to meet a current or prior debt. 

    HIST: 1997 c 85 art 1 s 13; 1998 c 407 art 6 s 43; 1999 c 159 
 s 81; 1999 c 245 art 6 s 20-22; 2000 c 488 art 10 s 8; 1Sp2001 c 
 9 art 10 s 13 

     256J.24 Family composition; assistance standards; exit 
  level. 

    Subdivision 1.    MFIP-S assistance unit.  An MFIP-S 
 assistance unit is either a group of individuals with at least 
 one minor child who live together whose needs, assets, and 
 income are considered together and who receive MFIP-S 
 assistance, or a pregnant woman and her spouse who receive 
 MFIP-S assistance.  

    Individuals identified in subdivision 2 must be included in 
 the MFIP-S assistance unit.  Individuals identified in 
 subdivision 3 are ineligible to receive MFIP-S.  Individuals 
 identified in subdivision 4 may be included in the assistance 
 unit at their option.  Individuals not included in the 
 assistance unit who are identified in section 256J.37, 
 subdivisions 1 to 2, must have their income and assets 
 considered when determining eligibility and benefits for an 
 MFIP-S assistance unit.  All assistance unit members, whether 
 mandatory or elective, who live together and for whom one 
 caregiver or two caregivers apply must be included in a single 
 assistance unit. 

    Subd. 2.    Mandatory assistance unit composition.  
 Except for minor caregivers and their children who must be in a 
 separate assistance unit from the other persons in the 
 household, when the following individuals live together, they 
 must be included in the assistance unit: 

    (1) a minor child, including a pregnant minor; 

    (2) the minor child's minor siblings, minor half-siblings, 
 and minor step-siblings; 

    (3) the minor child's natural parents, adoptive parents, 
 and stepparents; and 

    (4) the spouse of a pregnant woman.  

    A minor child must have a caregiver for the child to be 
 included in the assistance unit. 

    Subd. 3.    Individuals who must be excluded from an 
 assistance unit.  (a) The following individuals who are part 
 of the assistance unit determined under subdivision 2 are 
 ineligible to receive MFIP: 

    (1) individuals receiving Supplemental Security Income or 
 Minnesota supplemental aid; 

    (2) individuals disqualified from the food stamp program or 
 MFIP, until the disqualification ends; 

    (3) children on whose behalf federal, state or local foster 
 care payments are made, except as provided in sections 256J.13, 
 subdivision 2, and 256J.74, subdivision 2; and 

    (4) children receiving ongoing monthly adoption assistance 
 payments under section 259.67.  

    (b) The exclusion of a person under this subdivision does 
 not alter the mandatory assistance unit composition. 

    Subd. 4.    Individuals who may elect to be included in 
 the assistance unit.  (a) The minor child's eligible caregiver 
 may choose to be in the assistance unit, if the caregiver is not 
 required to be in the assistance unit under subdivision 2.  If 
 the eligible caregiver chooses to be in the assistance unit, 
 that person's spouse must also be in the unit. 

    (b) Any minor child not related as a sibling, stepsibling, 
 or adopted sibling to the minor child in the unit, but for whom 
 there is an eligible caregiver may elect to be in the unit. 

    (c) A foster care provider of a minor child who is 
 receiving federal, state, or local foster care maintenance 
 payments may elect to receive MFIP-S if the provider meets the 
 definition of caregiver under section 256J.08, subdivision 11.  
 If the provider chooses to receive MFIP-S, the spouse of the 
 provider must also be included in the assistance unit with the 
 provider.  The provider and spouse are eligible for assistance 
 even if the only minor child living in the provider's home is 
 receiving foster care maintenance payments. 

    (d) The adult caregiver or caregivers of a minor parent are 
 eligible to be a separate assistance unit from the minor parent 
 and the minor parent's child when: 

    (1) the adult caregiver or caregivers have no other minor 
 children in the household; 

    (2) the minor parent and the minor parent's child are 
 living together with the adult caregiver or caregivers; and 

    (3) the minor parent and the minor parent's child receive 
 MFIP-S, or would be eligible to receive MFIP-S, if they were not 
 receiving SSI benefits. 

    Subd. 5.    MFIP-S transitional standard.  The following 
 table represents the MFIP-S transitional standard table when all 
 members of the assistance unit are eligible for both food and 
 cash assistance. 

      Number of Eligible People          Standard 
                    1                      $351
                    2                      $609
                    3                      $763
                    4                      $903
                    5                    $1,025
                    6                    $1,165
                    7                    $1,273
                    8                    $1,403
                    9                    $1,530
                   10                    $1,653
              over 10          add $121 per additional member. 

    The commissioner shall annually publish in the State 
 Register the transitional standard for an assistance unit sizes 
 1 to 10. 

    Subd. 5a.    Food portion of MFIP-S transitional standard. 
  The commissioner shall adjust the food portion of the MFIP-S 
 transitional standard by October 1 each year beginning October 
 1998 to reflect the cost-of-living adjustments to the Food Stamp 
 Program.  The commissioner shall annually publish in the State 
 Register the transitional standard for an assistance unit of 
 sizes one to ten. 

    Subd. 6.    Application of assistance standards.  The 
 standards apply to the number of eligible persons in the 
 assistance unit. 

    Subd. 7.    Family wage level standard.  The family wage 
 level standard is 110 percent of the transitional standard under 
 subdivision 5 and is the standard used when there is earned 
 income in the assistance unit.  As specified in section 256J.21, 
 earned income is subtracted from the family wage level to 
 determine the amount of the assistance payment.  Not including 
 the family wage level standard, assistance payments may not 
 exceed the MFIP standard of need for the assistance unit. 

    Subd. 8.    Assistance paid to eligible assistance units. 
  Except for assistance units where a nonparental caregiver is 
 not included in the grant, payments for shelter up to the amount 
 of the cash portion of MFIP benefits for which the assistance 
 unit is eligible shall be vendor paid for as many months as the 
 assistance unit is eligible or six months, whichever comes 
 first.  The residual amount of the grant after vendor payment, 
 if any, must be paid to the MFIP caregiver. 

    Subd. 9.    Shared household standard; MFIP.  (a) Except 
 as prohibited in paragraph (b), the county agency must use the 
 shared household standard when the household includes one or 
 more unrelated members, as that term is defined in section 
 256J.08, subdivision 86a.  The county agency must use the shared 
 household standard, unless a member of the assistance unit is a 
 victim of family violence and has an alternative employment 
 plan, regardless of the number of unrelated members in the 
 household. 

    (b) The county agency must not use the shared household 
 standard when all unrelated members are one of the following: 

    (1) a recipient of public assistance benefits, including 
 food stamps, Supplemental Security Income, adoption assistance, 
 relative custody assistance, or foster care payments; 

    (2) a roomer or boarder, or a person to whom the assistance 
 unit is paying room or board; 

    (3) a minor child under the age of 18; 

    (4) a minor caregiver living with the minor caregiver's 
 parents or in an approved supervised living arrangement; 

    (5) a caregiver who is not the parent of the minor child in 
 the assistance unit; or 

    (6) an individual who provides child care to a child in the 
 MFIP assistance unit. 

    (c) The shared household standard must be discontinued if 
 it is not approved by the United States Department of 
 Agriculture under the MFIP waiver. 

    Subd. 10.    MFIP exit level.  The commissioner shall 
 adjust the MFIP earned income disregard to ensure that most 
 participants do not lose eligibility for MFIP until their income 
 reaches at least 120 percent of the federal poverty guidelines 
 in effect in October of each fiscal year.  The adjustment to the 
 disregard shall be based on a household size of three, and the 
 resulting earned income disregard percentage must be applied to 
 all household sizes.  The adjustment under this subdivision must 
 be implemented at the same time as the October food stamp 
 cost-of-living adjustment is reflected in the food portion of 
 MFIP transitional standard as required under subdivision 5a. 

    HIST: 1997 c 85 art 1 s 14; 1998 c 407 art 6 s 44-51; 1999 c 
 245 art 6 s 23-28; 1Sp2001 c 9 art 10 s 14-16 

  256J.25 Repealed, 1998 c 407 art 6 s 118 

     256J.26 Persons ineligible; vendor payments. 

    Subdivision 1.    Person convicted of drug offenses.  (a)
 Applicants or participants who have been convicted of a drug 
 offense committed after July 1, 1997, may, if otherwise 
 eligible, receive MFIP benefits subject to the following 
 conditions: 

    (1) Benefits for the entire assistance unit must be paid in 
 vendor form for shelter and utilities during any time the 
 applicant is part of the assistance unit. 

    (2) The convicted applicant or participant shall be subject 
 to random drug testing as a condition of continued eligibility 
 and following any positive test for an illegal controlled 
 substance is subject to the following sanctions: 

    (i) for failing a drug test the first time, the residual 
 amount of the participant's grant after making vendor payments 
 for shelter and utility costs, if any, must be reduced by an 
 amount equal to 30 percent of the MFIP standard of need for an 
 assistance unit of the same size.  When a sanction under this 
 subdivision is in effect, the job counselor must attempt to meet 
 with the person face-to-face.  During the face-to-face meeting, 
 the job counselor must explain the consequences of a subsequent 
 drug test failure and inform the participant of the right to 
 appeal the sanction under section 256J.40.  If a face-to-face 
 meeting is not possible, the county agency must send the 
 participant a notice of adverse action as provided in section 
 256J.31, subdivisions 4 and 5, and must include the information 
 required in the face-to-face meeting; or 

    (ii) for failing a drug test two times, the participant is 
 permanently disqualified from receiving MFIP assistance, both 
 the cash and food portions.  The assistance unit's MFIP grant 
 must be reduced by the amount which would have otherwise been 
 made available to the disqualified participant.  
 Disqualification under this item does not make a participant 
 ineligible for food stamps.  Before a disqualification under 
 this provision is imposed, the job counselor must attempt to 
 meet with the participant face-to-face.  During the face-to-face 
 meeting, the job counselor must identify other resources that 
 may be available to the participant to meet the needs of the 
 family and inform the participant of the right to appeal the 
 disqualification under section 256J.40.  If a face-to-face 
 meeting is not possible, the county agency must send the 
 participant a notice of adverse action as provided in section 
 256J.31, subdivisions 4 and 5, and must include the information 
 required in the face-to-face meeting. 

    (3) A participant who fails a drug test the first time and 
 is under a sanction due to other MFIP program requirements is 
 considered to have more than one occurrence of noncompliance and 
 is subject to the applicable level of sanction as specified 
 under section 256J.46, subdivision 1, paragraph (d). 

    (b) Applicants requesting only food stamps or participants 
 receiving only food stamps, who have been convicted of a drug 
 offense that occurred after July 1, 1997, may, if otherwise 
 eligible, receive food stamps if the convicted applicant or 
 participant is subject to random drug testing as a condition of 
 continued eligibility.  Following a positive test for an illegal 
 controlled substance, the applicant is subject to the following 
 sanctions: 

    (1) for failing a drug test the first time, food stamps 
 shall be reduced by an amount equal to 30 percent of the 
 applicable food stamp allotment.  When a sanction under this 
 clause is in effect, a job counselor must attempt to meet with 
 the person face-to-face.  During the face-to-face meeting, a job 
 counselor must explain the consequences of a subsequent drug 
 test failure and inform the participant of the right to appeal 
 the sanction under section 256J.40.  If a face-to-face meeting 
 is not possible, a county agency must send the participant a 
 notice of adverse action as provided in section 256J.31, 
 subdivisions 4 and 5, and must include the information required 
 in the face-to-face meeting; and 

    (2) for failing a drug test two times, the participant is 
 permanently disqualified from receiving food stamps.  Before a 
 disqualification under this provision is imposed, a job 
 counselor must attempt to meet with the participant 
 face-to-face.  During the face-to-face meeting, the job 
 counselor must identify other resources that may be available to 
 the participant to meet the needs of the family and inform the 
 participant of the right to appeal the disqualification under 
 section 256J.40.  If a face-to-face meeting is not possible, a 
 county agency must send the participant a notice of adverse 
 action as provided in section 256J.31, subdivisions 4 and 5, and 
 must include the information required in the face-to-face 
 meeting. 

    (c) For the purposes of this subdivision, "drug offense" 
 means an offense that occurred after July 1, 1997, of sections 
 152.021 to 152.025, 152.0261, or 152.096.  Drug offense also 
 means a conviction in another jurisdiction of the possession, 
 use, or distribution of a controlled substance, or conspiracy to 
 commit any of these offenses, if the offense occurred after July 
 1, 1997, and the conviction is a felony offense in that 
 jurisdiction, or in the case of New Jersey, a high misdemeanor. 

    Subd. 2.    Parole violators.  An individual violating a 
 condition of probation or parole or supervised release imposed 
 under federal law or the law of any state is disqualified from 
 receiving MFIP. 

    Subd. 3.    Fleeing felons.  An individual who is 
 fleeing to avoid prosecution, or custody, or confinement after 
 conviction for a crime that is a felony under the laws of the 
 jurisdiction from which the individual flees, or in the case of 
 New Jersey, is a high misdemeanor, is disqualified from 
 receiving MFIP. 

    Subd. 4.    Denial of assistance for ten years to a person 
 found to have fraudulently misrepresented residency.  An 
 individual who is convicted in federal or state court of having 
 made a fraudulent statement or representation with respect to 
 the place of residence of the individual in order to receive 
 assistance simultaneously from two or more states is 
 disqualified from receiving MFIP for ten years beginning on the 
 date of the conviction. 

    HIST: 1997 c 85 art 1 s 16; 1997 c 203 art 12 s 10; 1997 c 245 
 art 4 s 1; 1998 c 407 art 6 s 52-55; 1999 c 159 s 82-85; 1999 c 
 245 art 6 s 29; 1Sp2001 c 9 art 10 s 17 

     256J.28 Provisions related specifically to food stamp 
  assistance. 

    Subdivision 1.    Expedited issuance of food stamp 
 assistance.  The following households are entitled to 
 expedited issuance of food stamp assistance: 

    (1) households with less than $150 in monthly gross income 
 provided their liquid assets do not exceed $100; 

    (2) migrant or seasonal farm worker households who are 
 destitute as defined in Code of Federal Regulations, title 7, 
 subtitle B, chapter 2, subchapter C, part 273, section 273.10, 
 paragraph (e)(3), provided their liquid assets do not exceed 
 $100; and 

    (3) eligible households whose combined monthly gross income 
 and liquid resources are less than the household's monthly rent 
 or mortgage and utilities. 

    For any month an individual receives expedited Food Stamp 
 Program benefits, the individual is not eligible for the MFIP-S 
 food portion of assistance. 

    Subd. 2.    Food stamps for household members not in the 
 assistance unit.  (a) For household members who purchase and 
 prepare food with the MFIP-S assistance unit but are not part of 
 the assistance unit, the county agency must determine a separate 
 food stamp benefit based on regulations agreed upon with the 
 United States Department of Agriculture. 

    (b) Fair hearing requirements for persons who receive food 
 stamps under this subdivision are governed by section 256.045, 
 and Code of Federal Regulations, title 7, subtitle B, chapter 
 II, part 273, section 273.15. 

    Subd. 3.    Income disregard for certain programs, food 
 assistance portion of assistance payment.  The portion of the 
 MFIP-S assistance payment that is designated by the commissioner 
 as the food assistance portion of the assistance payment must be 
 disregarded as income in the following programs: 

    (1) housing subsidy programs; 

    (2) low-income home energy assistance program; 

    (3) Supplemental Security Income, when determining interim 
 assistance amount; and 

    (4) other programs that do not count food stamps as income. 

    For the purposes of this subdivision, the food assistance 
 portion of the assistance payment means a predetermined portion 
 of the MFIP-S assistance payment that may be received in 
 point-of-purchase sites or as food stamps.  The predetermined 
 portion of the assistance payment will vary by family profile, 
 which is based on family size. 

    Subd. 4. Repealed, 1998 c 407 art 6 s 118 

    Subd. 5.    Food stamps for persons residing in a battered 
 woman's shelter.  Members of an MFIP-S assistance unit 
 residing in a battered woman's shelter may receive food stamps 
 or the food portion twice in a month if the unit that initially 
 received the food stamps or food portion included the alleged 
 abuser. 

    HIST: 1997 c 85 art 1 s 17; 1998 c 407 art 6 s 56-58 

     256J.30 Applicant and participant requirements and 
  responsibilities. 

    Subdivision 1.    Applicant reporting requirements.  An 
 applicant must provide information on an application form and 
 supplemental forms about the applicant's circumstances which 
 affect MFIP-S eligibility or the assistance payment.  An 
 applicant must report changes identified in subdivision 9 while 
 the application is pending.  When an applicant does not 
 accurately report information on an application, both an 
 overpayment and a referral for a fraud investigation may 
 result.  When an applicant does not provide information or 
 documentation, the receipt of the assistance payment may be 
 delayed or the application may be denied depending on the type 
 of information required and its effect on eligibility. 

    Subd. 2.    Requirement to apply for other benefits.  An 
 applicant or participant must apply for, accept if eligible, and 
 follow through with appealing any denials of eligibility for 
 benefits from other programs for which the applicant or 
 participant is potentially eligible and which would, if 
 received, offset assistance payments.  An applicant's or 
 participant's failure to complete application for these benefits 
 without good cause results in denial or termination of 
 assistance.  Good cause for failure to apply for these benefits 
 is allowed when circumstances beyond the control of the 
 applicant or participant prevent the applicant or participant 
 from making an application. 

    Subd. 3.    Responsibility to inquire.  An applicant or 
 participant who does not know or is unsure whether a given 
 change in circumstances will affect the applicant's or 
 participant's MFIP-S eligibility or assistance payment must 
 contact the county agency for information.  

    Subd. 4.    Participant's completion of recertification of 
 eligibility form.  A participant must complete forms 
 prescribed by the commissioner which are required for 
 recertification of eligibility according to section 256J.32, 
 subdivision 6. 

    Subd. 5.    Monthly MFIP-S household reports.  Each 
 assistance unit with a member who has earned income or a recent 
 work history, and each assistance unit that has income deemed to 
 it from a financially responsible person must complete a monthly 
 MFIP-S household report form.  "Recent work history" means the 
 individual received earned income in the report month or any of 
 the previous three calendar months even if the earnings are 
 excluded.  To be complete, the MFIP-S household report form must 
 be signed and dated by the caregivers no earlier than the last 
 day of the reporting period.  All questions required to 
 determine assistance payment eligibility must be answered, and 
 documentation of earned income must be included. 

    Subd. 6. Repealed, 1999 c 245 art 6 s 89 

    Subd. 7.    Due date of MFIP household report form.  An 
 MFIP household report form must be received by the county agency 
 by the eighth calendar day of the month following the reporting 
 period covered by the form.  When the eighth calendar day of the 
 month falls on a weekend or holiday, the MFIP household report 
 form must be received by the county agency the first working day 
 that follows the eighth calendar day.  

    Subd. 8.    Late MFIP household report forms.  
 Paragraphs (a) to (d) apply to the reporting requirements in 
 subdivision 7. 

    (a) When the county agency receives an incomplete MFIP 
 household report form, the county agency must immediately return 
 the incomplete form and clearly state what the caregiver must do 
 for the form to be complete. 

    (b) The automated eligibility system must send a notice of 
 proposed termination of assistance to the assistance unit if a 
 complete MFIP household report form is not received by a county 
 agency.  The automated notice must be mailed to the caregiver by 
 approximately the 16th of the month.  When a caregiver submits 
 an incomplete form on or after the date a notice of proposed 
 termination has been sent, the termination is valid unless the 
 caregiver submits a complete form before the end of the month. 

    (c) An assistance unit required to submit an MFIP household 
 report form is considered to have continued its application for 
 assistance if a complete MFIP household report form is received 
 within a calendar month after the month in which the form was 
 due and assistance shall be paid for the period beginning with 
 the first day of that calendar month. 

    (d) A county agency must allow good cause exemptions from 
 the reporting requirements under subdivisions 5 and 6 when any 
 of the following factors cause a caregiver to fail to provide 
 the county agency with a completed MFIP household report form 
 before the end of the month in which the form is due: 

    (1) an employer delays completion of employment 
 verification; 

    (2) a county agency does not help a caregiver complete the 
 MFIP household report form when the caregiver asks for help; 

    (3) a caregiver does not receive an MFIP household report 
 form due to mistake on the part of the department or the county 
 agency or due to a reported change in address; 

    (4) a caregiver is ill, or physically or mentally 
 incapacitated; or 

    (5) some other circumstance occurs that a caregiver could 
 not avoid with reasonable care which prevents the caregiver from 
 providing a completed MFIP household report form before the end 
 of the month in which the form is due. 

    Subd. 9.    Changes that must be reported.  A caregiver 
 must report the changes or anticipated changes specified in 
 clauses (1) to (17) within ten days of the date they occur, at 
 the time of the periodic recertification of eligibility under 
 section 256J.32, subdivision 6, or within eight calendar days of 
 a reporting period as in subdivision 5 or 6, whichever occurs 
 first.  A caregiver must report other changes at the time of the 
 periodic recertification of eligibility under section 256J.32, 
 subdivision 6, or at the end of a reporting period under 
 subdivision 5 or 6, as applicable.  A caregiver must make these 
 reports in writing to the county agency.  When a county agency 
 could have reduced or terminated assistance for one or more 
 payment months if a delay in reporting a change specified under 
 clauses (1) to (16) had not occurred, the county agency must 
 determine whether a timely notice under section 256J.31, 
 subdivision 4, could have been issued on the day that the change 
 occurred.  When a timely notice could have been issued, each 
 month's overpayment subsequent to that notice must be considered 
 a client error overpayment under section 256J.38.  Calculation 
 of overpayments for late reporting under clause (17) is 
 specified in section 256J.09, subdivision 9.  Changes in 
 circumstances which must be reported within ten days must also 
 be reported on the MFIP household report form for the reporting 
 period in which those changes occurred.  Within ten days, a 
 caregiver must report: 

    (1) a change in initial employment; 

    (2) a change in initial receipt of unearned income; 

    (3) a recurring change in unearned income; 

    (4) a nonrecurring change of unearned income that exceeds 
 $30; 

    (5) the receipt of a lump sum; 

    (6) an increase in assets that may cause the assistance 
 unit to exceed asset limits; 

    (7) a change in the physical or mental status of an 
 incapacitated member of the assistance unit if the physical or 
 mental status is the basis of exemption from an MFIP employment 
 services program; 

    (8) a change in employment status; 

    (9) information affecting an exception under section 
 256J.24, subdivision 9; 

    (10) a change in health insurance coverage; 

    (11) the marriage or divorce of an assistance unit member; 

    (12) the death of a parent, minor child, or financially 
 responsible person; 

    (13) a change in address or living quarters of the 
 assistance unit; 

    (14) the sale, purchase, or other transfer of property; 

    (15) a change in school attendance of a custodial parent or 
 an employed child; 

    (16) filing a lawsuit, a workers' compensation claim, or a 
 monetary claim against a third party; and 

    (17) a change in household composition, including births, 
 returns to and departures from the home of assistance unit 
 members and financially responsible persons, or a change in the 
 custody of a minor child. 

    Subd. 10.    Cooperation with health care benefits.  (a) 
 The caregiver of a minor child must cooperate with the county 
 agency to identify and provide information to assist the county 
 agency in pursuing third-party liability for medical services. 

    (b) A caregiver must assign to the department any rights to 
 health insurance policy benefits the caregiver has during the 
 period of MFIP-S eligibility. 

    (c) A caregiver must identify any third party who may be 
 liable for care and services available under the medical 
 assistance program on behalf of the applicant or participant and 
 all other assistance unit members. 

    (d) When a participant refuses to identify any third party 
 who may be liable for care and services, the recipient must be 
 sanctioned as provided in section 256J.46, subdivision 1.  The 
 recipient is also ineligible for medical assistance until the 
 recipient cooperates with the requirements of this subdivision. 

    Subd. 11.    Requirement to assign support and maintenance 
 rights.  An assistance unit is ineligible for MFIP-S unless 
 the caregiver assigns all rights to child support and spousal 
 maintenance benefits according to section 256.741. 

    Subd. 12.    Requirement to provide social security 
 numbers.  Each member of the assistance unit must provide the 
 member's social security number to the county agency, except for 
 members in the assistance unit who are qualified noncitizens who 
 are victims of domestic violence as defined under section 
 256J.08, subdivision 73, clause (7).  When a social security 
 number is not provided to the county agency for verification, 
 this requirement is satisfied when each member of the assistance 
 unit cooperates with the procedures for verification of numbers, 
 issuance of duplicate cards, and issuance of new numbers which 
 have been established jointly between the Social Security 
 Administration and the commissioner. 

    HIST: 1997 c 85 art 1 s 18; 1998 c 407 art 6 s 59,60; 1999 c 
 245 art 6 s 30-33 

     256J.31 Applicant and participant rights and county 
  agency responsibilities. 

    Subdivision 1.    Right to information.  An applicant or 
 participant has the right to obtain from the county agency 
 information about the benefits, requirements, restrictions, and 
 appeal provisions of public assistance programs. 

    Subd. 2.    Right to authorized representative.  An 
 applicant or participant has the right to designate an 
 authorized representative to act on the applicant's or 
 participant's behalf.  An applicant or participant has the right 
 to be assisted or represented by an authorized representative in 
 eligibility determinations, recertification, conciliation 
 conferences, the fair hearing process, and any other contacts 
 with the county agency or the department.  When a county agency 
 determines that it is necessary for a person to assist an 
 applicant or participant, the county agency must designate a 
 staff member to assist the applicant or participant.  Upon a 
 request from an applicant or participant, a county agency must 
 provide addresses and telephone numbers of organizations that 
 provide legal services at low cost or no cost to low-income 
 persons. 

    Subd. 3.    Right of applicant to notice.  A county 
 agency must notify an applicant of the disposition of the 
 applicant's application.  The notice must be in writing and on 
 forms prescribed by the commissioner.  The county agency must 
 mail the notice to the last known mailing address provided by 
 the applicant.  When an application is denied, the county agency 
 must notify the applicant in writing of the reasons for the 
 denial, of the right to appeal, and of the right to reapply for 
 assistance. 

    Subd. 4.    Participant's right to notice.  A county 
 agency must give a participant written notice of all adverse 
 actions affecting the participant including payment reductions, 
 suspensions, terminations, and use of protective, vendor, or 
 two-party payments.  The notice of adverse action must be on a 
 form prescribed or approved by the commissioner, must be 
 understandable at a seventh grade reading level, and must be 
 mailed to the last known mailing address provided by the 
 participant.  A notice written in English must include the 
 department of human services language block and must be sent to 
 every applicable participant.  The county agency must state on 
 the notice of adverse action the action it intends to take, the 
 reasons for the action, the participant's right to appeal the 
 action, the conditions under which assistance can be continued 
 pending an appeal decision, and the related consequences of the 
 action. 

    Subd. 5.    Mailing of notice.  The notice of adverse 
 action shall be issued according to paragraphs (a) to (d). 

    (a) A notice of adverse action must be mailed at least ten 
 days before the effective date of the adverse action, except as 
 provided in paragraphs (b) to (d). 

    (b) A notice of adverse action must be mailed no later than 
 four working days before the end of the month when the county 
 agency: 

    (1) is informed of the death of the only caregiver or payee 
 in an assistance unit; 

    (2) receives a signed statement from the caregiver that 
 assistance is no longer wanted; 

    (3) has factual information to reduce, suspend, or 
 terminate assistance based on the failure to timely report 
 changes; 

    (4) verifies that a member of the assistance unit has 
 entered a regional treatment center or a licensed residential 
 facility for medical or psychological treatment or 
 rehabilitation; 

    (5) verifies that a member of an assistance unit has been 
 removed from the home as a result of a judicial determination or 
 placed in foster care, and the provisions of section 256J.13, 
 subdivision 2, paragraph (c), clause (2), do not apply; or 

    (6) cannot locate a caregiver. 

    (c) A notice of adverse action must be mailed for a payment 
 month when the caregiver makes a written request for closure 
 before the first of that payment month. 

    (d) A notice of adverse action must be mailed before the 
 effective date of the adverse action when the county agency 
 receives the caregiver's signed and completed MFIP household 
 report form or recertification form that includes information 
 that requires payment reduction, suspension, or termination. 

    Subd. 6.    Appeal rights.  An applicant, participant, 
 or former participant has the right to request a fair hearing 
 when aggrieved by an action or inaction of a county agency.  A 
 request for a fair hearing and rights pending a fair hearing are 
 set as specified in section 256J.40. 

    Subd. 7.    Case records available.  A county agency 
 must make financial case records available to the participant or 
 former participant as soon as possible but no later than the 
 fifth business day following the date of the request.  When the 
 participant or former participant asks for photocopies of 
 material from the financial case record, the county agency must 
 provide one copy of each page at no cost. 

    Subd. 8.    Right to manage affairs.  Except for 
 protective payment provisions authorized under section 256J.39, 
 participants have the right to manage their own affairs. 

    Subd. 9.    Right to protection.  Minor caregivers have 
 the right to protection.  The county agency must refer a minor 
 caregiver to the social service unit within 30 days of the date 
 the application is approved.  The social service unit must 
 assist the caregiver who is less than 18 years of age to develop 
 a plan as specified in section 256J.54. 

    Subd. 10.    Protection from garnishment.  MFIP-S grants 
 or earnings of a caregiver shall be protected from garnishment.  
 This protection for earnings shall extend for a period of six 
 months from the date of termination from MFIP-S. 

    Subd. 11.    Responsibility to retain case records.  The 
 county agency must retain financial case records and employment 
 and training service records for MFIP-S cases according to 
 chapter 13. 

    Subd. 12.    Right to discontinue cash assistance.  A 
 participant who is not in vendor payment status may discontinue 
 receipt of the cash assistance portion of the MFIP assistance 
 grant and retain eligibility for child care assistance under 
 section 119B.05.  For the months a participant chooses to 
 discontinue the receipt of the cash portion of the MFIP grant, 
 the assistance unit accrues months of eligibility to be applied 
 toward eligibility for child care under section 119B.05. 

    HIST: 1997 c 85 art 1 s 19; 1998 c 407 art 6 s 61-63; 1999 c 
 245 art 6 s 34,35; 1Sp2001 c 9 art 2 s 57; art 10 s 18 

*   NOTE:  The amendment to subdivision 12 by Laws 2001, First 
*Special Session chapter 9, article 2, section 57, is effective 
*July 1, 2002.  Laws 2001, First Special Session chapter 9, 
*article 2, section 57, the effective date.

     256J.315 County and tribal cooperation. 

    The county agency must cooperate with tribal governments in 
 the implementation of MFIP-S to ensure that the program meets 
 the special needs of persons living on Indian reservations.  
 This cooperation must include, but is not limited to, the 
 sharing of MFIP-S duties including initial screening, 
 orientation, assessments, and provision of employment and 
 training services.  The county agency shall encourage tribal 
 governments to assume duties related to MFIP-S and shall work 
 cooperatively with tribes that have assumed responsibility for a 
 portion of the MFIP-S program to expand tribal responsibilities, 
 if that expansion is requested by the tribe. 

    HIST: 1997 c 85 art 1 s 20 

     256J.32 Documenting, verifying, and recertifying 
  eligibility. 

    Subdivision 1.    Verification of information.  A county 
 agency must only require verification of information necessary 
 to determine MFIP-S eligibility and the amount of the assistance 
 payment. 

    Subd. 2.    Documentation.  The applicant or participant 
 must document the information required under subdivisions 4 to 6 
 or authorize the county agency to verify the information.  The 
 applicant or participant has the burden of providing documentary 
 evidence to verify eligibility.  The county agency shall assist 
 the applicant or participant in obtaining required documents 
 when the applicant or participant is unable to do so.  When an 
 applicant or participant and the county agency are unable to 
 obtain documents needed to verify information, the county agency 
 may accept an affidavit from an applicant or participant as 
 sufficient documentation. 

    Subd. 3.    Contacting third parties.  A county agency 
 must not request information about an applicant or participant 
 that is not of public record from a source other than county 
 agencies, the department, or the United States Department of 
 Health and Human Services without the person's prior written 
 consent.  An applicant's signature on an application form 
 constitutes consent for contact with the sources specified on 
 the application.  A county agency may use a single consent form 
 to contact a group of similar sources, such as banks or 
 insurance agencies, but the sources to be contacted must be 
 identified by the county agency prior to requesting an 
 applicant's consent. 

    Subd. 4.    Factors to be verified.  The county agency 
 shall verify the following at application: 

    (1) identity of adults; 

    (2) presence of the minor child in the home, if 
 questionable; 

    (3) relationship of a minor child to caregivers in the 
 assistance unit; 

    (4) age, if necessary to determine MFIP eligibility; 

    (5) immigration status; 

    (6) social security number according to the requirements of 
 section 256J.30, subdivision 12; 

    (7) income; 

    (8) self-employment expenses used as a deduction; 

    (9) source and purpose of deposits and withdrawals from 
 business accounts; 

    (10) spousal support and child support payments made to 
 persons outside the household; 

    (11) real property; 

    (12) vehicles; 

    (13) checking and savings accounts; 

    (14) savings certificates, savings bonds, stocks, and 
 individual retirement accounts; 

    (15) pregnancy, if related to eligibility; 

    (16) inconsistent information, if related to eligibility; 

    (17) medical insurance; 

    (18) burial accounts; 

    (19) school attendance, if related to eligibility; 

    (20) residence; 

    (21) a claim of family violence if used as a basis for a 
 waiver from the 60-month time limit in section 256J.42 and 
 regular employment and training services requirements in section 
 256J.56; 

    (22) disability if used as an exemption from employment and 
 training services requirements under section 256J.56; and 

    (23) information needed to establish an exception under 
 section 256J.24, subdivision 9. 

    Subd. 5. Repealed, 1998 c 407 art 6 s 118 

    Subd. 5a.    Inconsistent information.  When the county 
 agency verifies inconsistent information under subdivision 4, 
 clause (16), or 6, clause (4), the reason for verifying the 
 information must be documented in the financial case record. 

    Subd. 6.    Recertification.  The county agency shall 
 recertify eligibility in an annual face-to-face interview with 
 the participant and verify the following: 

    (1) presence of the minor child in the home, if 
 questionable; 

    (2) income, unless excluded, including self-employment 
 expenses used as a deduction or deposits or withdrawals from 
 business accounts; 

    (3) assets when the value is within $200 of the asset 
 limit; 

    (4) information to establish an exception under section 
 256J.24, subdivision 9, if questionable; and 

    (5) inconsistent information, if related to eligibility.  

    Subd. 7.    Notice to undocumented persons; release of 
 private data.  County agencies in consultation with the 
 commissioner of human services shall provide notification to 
 undocumented persons regarding the release of personal data to 
 the Immigration and Naturalization Service and develop protocol 
 regarding the release or sharing of data about undocumented 
 persons with the Immigration and Naturalization Service as 
 required under sections 404, 434, and 411A of the Personal 
 Responsibility and Work Opportunity Reconciliation Act of 1996.  

    Subd. 7a.    Requirement to report to immigration and 
 naturalization services.  The commissioner shall comply with 
 the reporting requirements under United States Code, title 42, 
 section 611a, and any federal regulation or guidance adopted 
 under that law. 

    HIST: 1997 c 85 art 1 s 21; 1998 c 407 art 6 s 64-66; 1999 c 
 245 art 6 s 36,37; 2000 c 488 art 10 s 9; 1Sp2001 c 9 art 10 s 
 19,20 

     256J.33 Prospective and retrospective determination of 
  MFIP eligibility. 

    Subdivision 1.    Determination of eligibility.  A 
 county agency must determine MFIP eligibility prospectively for 
 a payment month based on retrospectively assessing income and 
 the county agency's best estimate of the circumstances that will 
 exist in the payment month. 

    Except as described in section 256J.34, subdivision 1, when 
 prospective eligibility exists, a county agency must calculate 
 the amount of the assistance payment using retrospective 
 budgeting.  To determine MFIP eligibility and the assistance 
 payment amount, a county agency must apply countable income, 
 described in section 256J.37, subdivisions 3 to 10, received by 
 members of an assistance unit or by other persons whose income 
 is counted for the assistance unit, described under sections 
 256J.21 and 256J.37, subdivisions 1 to 2. 

    This income must be applied to the MFIP standard of need or 
 family wage level subject to this section and sections 256J.34 
 to 256J.36.  Income received in a calendar month and not 
 otherwise excluded under section 256J.21, subdivision 2, must be 
 applied to the needs of an assistance unit. 

    Subd. 2.    Prospective eligibility.  A county agency 
 must determine whether the eligibility requirements that pertain 
 to an assistance unit, including those in sections 256J.11 to 
 256J.15 and 256J.20, will be met prospectively for the payment 
 month.  Except for the provisions in section 256J.34, 
 subdivision 1, the income test will be applied retrospectively. 

    Subd. 3.    Retrospective eligibility.  After the first 
 two months of MFIP eligibility, a county agency must continue to 
 determine whether an assistance unit is prospectively eligible 
 for the payment month by looking at all factors other than 
 income and then determine whether the assistance unit is 
 retrospectively income eligible by applying the monthly income 
 test to the income from the budget month.  When the monthly 
 income test is not satisfied, the assistance payment must be 
 suspended when ineligibility exists for one month or ended when 
 ineligibility exists for more than one month. 

    Subd. 4.    Monthly income test.  A county agency must 
 apply the monthly income test retrospectively for each month of 
 MFIP eligibility.  An assistance unit is not eligible when the 
 countable income equals or exceeds the MFIP standard of need or 
 the family wage level for the assistance unit.  The income 
 applied against the monthly income test must include: 

    (1) gross earned income from employment, prior to mandatory 
 payroll deductions, voluntary payroll deductions, wage 
 authorizations, and after the disregards in section 256J.21, 
 subdivision 4, and the allocations in section 256J.36, unless 
 the employment income is specifically excluded under section 
 256J.21, subdivision 2; 

    (2) gross earned income from self-employment less 
 deductions for self-employment expenses in section 256J.37, 
 subdivision 5, but prior to any reductions for personal or 
 business state and federal income taxes, personal FICA, personal 
 health and life insurance, and after the disregards in section 
 256J.21, subdivision 4, and the allocations in section 256J.36; 

    (3) unearned income after deductions for allowable expenses 
 in section 256J.37, subdivision 9, and allocations in section 
 256J.36, unless the income has been specifically excluded in 
 section 256J.21, subdivision 2; 

    (4) gross earned income from employment as determined under 
 clause (1) which is received by a member of an assistance unit 
 who is a minor child or minor caregiver and less than a 
 half-time student; 

    (5) child support and spousal support received by an 
 assistance unit; 

    (6) the income of a parent when that parent is not included 
 in the assistance unit; 

    (7) the income of an eligible relative and spouse who seek 
 to be included in the assistance unit; and 

    (8) the unearned income of a minor child included in the 
 assistance unit. 

    Subd. 5.    When to terminate assistance.  When an 
 assistance unit is ineligible for MFIP assistance for two 
 consecutive months, the county agency must terminate MFIP 
 assistance. 

    HIST: 1997 c 85 art 1 s 22; 1998 c 407 art 6 s 67,68; 1999 c 
 245 art 6 s 38; 2000 c 488 art 10 s 10 

     256J.34 Calculating payments; significant change; income 
  averaging. 

    Subdivision 1.    Prospective budgeting.  A county 
 agency must use prospective budgeting to calculate the 
 assistance payment amount for the first two months for an 
 applicant who has not received assistance in this state for at 
 least one payment month preceding the first month of payment 
 under a current application.  Notwithstanding subdivision 3, 
 paragraph (a), clause (2), a county agency must use prospective 
 budgeting for the first two months for a person who applies to 
 be added to an assistance unit.  Prospective budgeting is not 
 subject to overpayments or underpayments unless fraud is 
 determined under section 256.98. 

    (a) The county agency must apply the income received or 
 anticipated in the first month of MFIP eligibility against the 
 need of the first month.  The county agency must apply the 
 income received or anticipated in the second month against the 
 need of the second month. 

    (b) When the assistance payment for any part of the first 
 two months is based on anticipated income, the county agency 
 must base the initial assistance payment amount on the 
 information available at the time the initial assistance payment 
 is made. 

    (c) The county agency must determine the assistance payment 
 amount for the first two months of MFIP eligibility by budgeting 
 both recurring and nonrecurring income for those two months. 

    Subd. 2.    Retrospective budgeting.  The county agency 
 must use retrospective budgeting to calculate the monthly 
 assistance payment amount after the payment for the first two 
 months has been made under subdivision 1. 

    Subd. 3.    Additional uses of retrospective budgeting.  
 Notwithstanding subdivision 1, the county agency must use 
 retrospective budgeting to calculate the monthly assistance 
 payment amount for the first two months under paragraphs (a) and 
 (b). 

    (a) The county agency must use retrospective budgeting to 
 determine the amount of the assistance payment in the first two 
 months of MFIP eligibility: 

    (1) when an assistance unit applies for assistance for the 
 same month for which assistance has been interrupted, the 
 interruption in eligibility is less than one payment month, the 
 assistance payment for the preceding month was issued in this 
 state, and the assistance payment for the immediately preceding 
 month was determined retrospectively; or 

    (2) when a person applies in order to be added to an 
 assistance unit, that assistance unit has received assistance in 
 this state for at least the two preceding months, and that 
 person has been living with and has been financially responsible 
 for one or more members of that assistance unit for at least the 
 two preceding months. 

    (b) Except as provided in clauses (1) to (4), the county 
 agency must use retrospective budgeting and apply income 
 received in the budget month by an assistance unit and by a 
 financially responsible household member who is not included in 
 the assistance unit against the MFIP standard of need or family 
 wage level to determine the assistance payment to be issued for 
 the payment month. 

    (1) When a source of income ends prior to the third payment 
 month, that income is not considered in calculating the 
 assistance payment for that month.  When a source of income ends 
 prior to the fourth payment month, that income is not considered 
 when determining the assistance payment for that month. 

    (2) When a member of an assistance unit or a financially 
 responsible household member leaves the household of the 
 assistance unit, the income of that departed household member is 
 not budgeted retrospectively for any full payment month in which 
 that household member does not live with that household and is 
 not included in the assistance unit. 

    (3) When an individual is removed from an assistance unit 
 because the individual is no longer a minor child, the income of 
 that individual is not budgeted retrospectively for payment 
 months in which that individual is not a member of the 
 assistance unit, except that income of an ineligible child in 
 the household must continue to be budgeted retrospectively 
 against the child's needs when the parent or parents of that 
 child request allocation of their income against any unmet needs 
 of that ineligible child. 

    (4) When a person ceases to have financial responsibility 
 for one or more members of an assistance unit, the income of 
 that person is not budgeted retrospectively for the payment 
 months which follow the month in which financial responsibility 
 ends. 

    Subd. 4.    Significant change in gross income.  The 
 county agency must recalculate the assistance payment when an 
 assistance unit experiences a significant change, as defined in 
 section 256J.08, resulting in a reduction in the gross income 
 received in the payment month from the gross income received in 
 the budget month.  The county agency must issue a supplemental 
 assistance payment based on the county agency's best estimate of 
 the assistance unit's income and circumstances for the payment 
 month.  Supplemental assistance payments that result from 
 significant changes are limited to two in a 12-month period 
 regardless of the reason for the change.  Notwithstanding any 
 other statute or rule of law, supplementary assistance payments 
 shall not be made when the significant change in income is the 
 result of receipt of a lump sum, receipt of an extra paycheck, 
 business fluctuation in self-employment income, or an assistance 
 unit member's participation in a strike or other labor action.  

    Subd. 5. Repealed, 1998 c 407 art 6 s 118 

    HIST: 1997 c 85 art 1 s 23; 1999 c 245 art 6 s 39-41; 2000 c 
 488 art 10 s 11,12 

     256J.35 Amount of assistance payment. 

    Except as provided in paragraphs (a) to (c), the amount of 
 an assistance payment is equal to the difference between the 
 MFIP standard of need or the Minnesota family wage level in 
 section 256J.24 and countable income. 

    (a) When MFIP eligibility exists for the month of 
 application, the amount of the assistance payment for the month 
 of application must be prorated from the date of application or 
 the date all other eligibility factors are met for that 
 applicant, whichever is later.  This provision applies when an 
 applicant loses at least one day of MFIP eligibility. 

    (b) MFIP overpayments to an assistance unit must be 
 recouped according to section 256J.38, subdivision 4. 

    (c) An initial assistance payment must not be made to an 
 applicant who is not eligible on the date payment is made. 

    HIST: 1997 c 85 art 1 s 24; 1998 c 407 art 6 s 69; 1999 c 245 
 art 6 s 42 

     256J.36 Allocation for unmet need of other household 
  members. 

    Except as prohibited in paragraphs (a) and (b), an 
 allocation of income is allowed from the caregiver's income to 
 meet the unmet need of an ineligible spouse or an ineligible 
 child under the age of 21 for whom the caregiver is financially 
 responsible who also lives with the caregiver.  That allocation 
 is allowed in an amount up to the difference between the MFIP 
 standard of need for the assistance unit when that ineligible 
 person is included in the assistance unit and the MFIP standard 
 of need for the assistance unit when the ineligible person is 
 not included in the assistance unit.  These allocations must be 
 deducted from the caregiver's counted earnings and from unearned 
 income subject to paragraphs (a) and (b). 

    (a) Income of a minor child in the assistance unit must not 
 be allocated to meet the need of an ineligible person, including 
 the child's parent, even when that parent is the payee of the 
 child's income. 

    (b) Income of a caregiver must not be allocated to meet the 
 needs of a disqualified person. 

    HIST: 1997 c 85 art 1 s 25; 1998 c 407 art 6 s 70; 1999 c 245 
 art 6 s 43 

     256J.37 Treatment of income and lump sums. 

    Subdivision 1.    Deemed income from ineligible household 
 members.  Unless otherwise provided under subdivision 1a or 
 1b, the income of ineligible household members must be deemed 
 after allowing the following disregards: 

    (1) the first 18 percent of the ineligible family member's 
 gross earned income; 

    (2) amounts the ineligible person actually paid to 
 individuals not living in the same household but whom the 
 ineligible person claims or could claim as dependents for 
 determining federal personal income tax liability; 

    (3) all payments made by the ineligible person according to 
 a court order for spousal support or the support of children not 
 living in the assistance unit's household, provided that, if 
 there has been a change in the financial circumstances of the 
 ineligible person since the support order was entered, the 
 ineligible person has petitioned for a modification of the 
 support order; and 

    (4) an amount for the needs of the ineligible person and 
 other persons who live in the household but are not included in 
 the assistance unit and are or could be claimed by an ineligible 
 person as dependents for determining federal personal income tax 
 liability.  This amount is equal to the difference between the 
 MFIP standard of need when the ineligible person is included in 
 the assistance unit and the MFIP standard of need when the 
 ineligible person is not included in the assistance unit. 

    Subd. 1a.    Deemed income from disqualified members.  
 The income of disqualified members must be deemed after allowing 
 the following disregards: 

    (1) the first 18 percent of the disqualified member's gross 
 earned income; 

    (2) amounts the disqualified member actually paid to 
 individuals not living in the same household but whom the 
 disqualified member claims or could claim as dependents for 
 determining federal personal income tax liability; 

    (3) all payments made by the disqualified member according 
 to a court order for spousal support or the support of children 
 not living in the assistance unit's household, provided that, if 
 there has been a change in the financial circumstances of the 
 disqualified member's legal obligation to pay support since the 
 support order was entered, the disqualified member has 
 petitioned for a modification of the support order; and 

    (4) an amount for the needs of other persons who live in 
 the household but are not included in the assistance unit and 
 are or could be claimed by the disqualified member as dependents 
 for determining federal personal income tax liability.  This 
 amount is equal to the difference between the MFIP standard of 
 need when the ineligible person is included in the assistance 
 unit and the MFIP standard of need when the ineligible person is 
 not included in the assistance unit.  An amount shall not be 
 allowed for the needs of a disqualified member. 

    Subd. 1b.    Deemed income from parents of minor 
 caregivers.  In households where minor caregivers live with a 
 parent or parents who do not receive MFIP-S, the income of the 
 parents must be deemed after allowing the following disregards: 

    (1) income of the parents equal to 200 percent of the 
 federal poverty guideline for a family size not including the 
 minor parent and the minor parent's child in the household 
 according to section 256J.21, subdivision 2, clause (43); 

    (2) 18 percent of the parents' gross earned income; 

    (3) amounts the parents actually paid to individuals not 
 living in the same household but whom the parents claim or could 
 claim as dependents for determining federal personal income tax 
 liability; and 

    (4) all payments made by parents according to a court order 
 for spousal support or the support of children not living in the 
 parent's household, provided that, if there has been a change in 
 the financial circumstances of the parent's legal obligation to 
 pay support since the support order was entered, the parents 
 have petitioned for a modification of the support order.  

    Subd. 2.    Deemed income and assets of sponsor of 
 noncitizens.  (a) If a noncitizen applies for or receives 
 MFIP, the county must deem the income and assets of the 
 noncitizen's sponsor and the sponsor's spouse as provided in 
 this paragraph and paragraph (b) or (c), whichever is 
 applicable.  The deemed income of a sponsor and the sponsor's 
 spouse is considered unearned income of the noncitizen.  The 
 deemed assets of a sponsor and the sponsor's spouse are 
 considered available assets of the noncitizen. 

    (b) The income and assets of a sponsor who signed an 
 affidavit of support under title IV, sections 421, 422, and 423, 
 of Public Law Number 104-193, the Personal Responsibility and 
 Work Opportunity Reconciliation Act of 1996, and the income and 
 assets of the sponsor's spouse, must be deemed to the noncitizen 
 to the extent required by those sections of Public Law Number 
 104-193. 

    (c) The income and assets of a sponsor and the sponsor's 
 spouse to whom the provisions of paragraph (b) do not apply must 
 be deemed to the noncitizen to the full extent allowed under 
 title V, section 5505, of Public Law Number 105-33, the Balanced 
 Budget Act of 1997. 

    Subd. 3.    Earned income of wage, salary, and contractual 
 employees.  The county agency must include gross earned income 
 less any disregards in the initial and monthly income test.  
 Gross earned income received by persons employed on a 
 contractual basis must be prorated over the period covered by 
 the contract even when payments are received over a lesser 
 period of time. 

    Subd. 4.    Self-employment.  Self-employed individuals 
 are those who are responsible for their own work schedule and do 
 not have coverage under an employer's liability insurance or 
 workers' compensation.  Self-employed individuals generally work 
 for themselves rather than an employer.  However, individuals 
 employed in some types of services may be self-employed even if 
 they have an employer or work out of another's business 
 location.  For example, real estate sales people, individuals 
 who work for commission sales, manufacturer's representatives, 
 and independent contractors may be self-employed.  Self-employed 
 individuals may or may not have FICA deducted from the check 
 issued to them by an employer or another party. 

    Self-employed individuals may own a business singularly or 
 in partnership.  Individuals operating more than one 
 self-employment business may use the loss from one business to 
 offset self-employment income from another business.  A loss 
 from a self-employment business may not offset income earned 
 under subdivision 3. 

    Subd. 5.    Self-employment earnings.  The county agency 
 must determine self-employment income according to the following:

    (a) Subtract allowable business expenses from total gross 
 receipts.  Allowable business expenses include: 

    (1) interest on mortgages and loans; 

    (2) employee wages, except for persons who are part of the 
 assistance unit or whose income is deemed to the participant; 

    (3) FICA funds paid on employees' wages, payment of 
 employee workers' compensation, and unemployment benefits; 

    (4) livestock and veterinary or breeding fees; 

    (5) raw material; 

    (6) seed and fertilizer; 

    (7) maintenance and repairs that are not capital 
 expenditures; 

    (8) tax return preparation fees; 

    (9) license fees, professional fees, franchise fees, and 
 professional dues; 

    (10) tools and supplies that are not capital expenditures; 

    (11) fuel and transportation expenses other than fuel costs 
 covered by the flat rate transportation deduction; 

    (12) advertising costs; 

    (13) meals eaten when required to be away from the local 
 work site; 

    (14) property expenses such as rent, insurance, taxes, and 
 utilities; 

    (15) postage; 

    (16) purchase cost of inventory at time of sale; 

    (17) loss from another self-employment business; 

    (18) attorney fees allowed by the Internal Revenue Service; 
 and 

    (19) tuition for classes necessary to maintain or improve 
 job skills or required by law to maintain job status or salary 
 as allowed by the Internal Revenue Service. 

    (b) The county agency shall not allow a deduction for the 
 following expenses: 

    (1) purchases of capital assets; 

    (2) payments on the principals of loans for capital assets; 

    (3) depreciation; 

    (4) amortization; 

    (5) the wholesale costs of items purchased, processed, or 
 manufactured which are unsold inventory; 

    (6) transportation costs that exceed the maximum standard 
 mileage rate allowed for use of a personal car in the Internal 
 Revenue Code; 

    (7) costs, in any amount, for mileage between an 
 applicant's or participant's home and place of employment; 

    (8) salaries and other employment deductions made for 
 members of an assistance unit or persons who live in the 
 household for whom an employer is legally responsible; 

    (9) monthly expenses in excess of $71 for each roomer; 

    (10) monthly expenses in excess of the Thrifty Food Plan 
 amount for one person for each boarder.  For purposes of this 
 clause and clause (11), "Thrifty Food Plan" has the meaning 
 given it in Code of Federal Regulations; 

    (11) monthly expenses in excess of the roomer rate plus the 
 Thrifty Food Plan amount for one person for each 
 roomer-boarder.  If there is more than one boarder or 
 roomer-boarder, use the total number of boarders as the unit 
 size to determine the Thrifty Food Plan amount; 

    (12) an amount greater than actual expenses or two percent 
 of the estimated market value on a county tax assessment form, 
 whichever is greater, as a deduction for upkeep and repair 
 against rental income; 

    (13) expenses not allowed by the Internal Revenue Code; 

    (14) expenses in excess of 60 percent of gross receipts for 
 in-home child care unless a higher amount can be documented; and 

    (15) expenses that are reimbursed under the child and adult 
 care food program as authorized under the National School Lunch 
 Act, United States Code, title 42. 

    Subd. 6.    Self-employment budget period.  The 
 self-employment budget period begins in the month of application 
 or in the first month of self-employment.  Gross receipts must 
 be budgeted in the month received.  Expenses must be budgeted 
 against gross receipts in the month the expenses are paid, 
 except for paragraphs (a) to (c). 

    (a) The purchase cost of inventory items, including 
 materials which are processed or manufactured, must be deducted 
 as an expense at the time payment is received for the sale of 
 the inventory items. 

    (b) A 12-month rolling average based on clauses (1) to (3) 
 must be used to budget monthly income. 

    (1) For a business in operation for at least 12 months, the 
 county agency shall use the average monthly self-employment 
 income from the most current income tax report for the 12 months 
 before the month of application.  The county agency shall 
 determine a new monthly average by adding in the actual 
 self-employment income and expenses from the previous month and 
 dropping the first month from the averaging period. 

    (2) For a business in operation for less than 12 months, 
 the county agency shall compute the average for the number of 
 months the business has been in operation to determine a monthly 
 average.  When data are available for 12 or more months, average 
 monthly self-employment income is determined under clause (1). 

    (3) If the business undergoes a major change, the county 
 agency shall compute a new rolling average beginning with the 
 first month of the major change.  For the purpose of this 
 clause, major change means a change that affects the nature and 
 scale of the business and is not merely the result of normal 
 business fluctuations. 

    (c) For seasonal self-employment, the caregiver may choose 
 whether to use actual income in the month of receipt and 
 expenses in the month incurred or the rolling average method of 
 computation.  The choice must be made once per year at the time 
 of application or recertification.  For the purpose of this 
 paragraph, seasonal means working six or less months per year. 

    Subd. 7.    Farm income.  Farm income is the difference 
 between gross receipts and operating expenses.  The county 
 agency must not allow a deduction for expenses listed in 
 subdivision 5, paragraph (b).  Gross receipts include sales, 
 rents, subsidies, soil conservation payments, production derived 
 from livestock, and income from home-produced food.  

    Subd. 8.    Rental income.  The county agency must treat 
 income from rental property as earned or unearned income.  
 Income from rental property is unearned income unless the 
 assistance unit spends an average of ten hours per week on 
 maintenance or management of the property.  When the owner 
 spends more than ten hours per week on maintenance or repairs, 
 the earnings are considered self-employment earnings.  An amount 
 must be deducted for upkeep and repairs, as specified in 
 subdivision 5, paragraph (b), clause (12), real estate taxes, 
 insurance, utilities, and interest on principal payments.  When 
 the applicant or participant lives on the rental property, 
 expenses for upkeep, taxes, insurance, utilities, and interest 
 must be divided by the number of rooms to determine expense per 
 room and expenses deducted must be deducted only for the number 
 of rooms rented. 

    Subd. 9.    Unearned income.  (a) The county agency must 
 apply unearned income to the MFIP standard of need.  When 
 determining the amount of unearned income, the county agency 
 must deduct the costs necessary to secure payments of unearned 
 income.  These costs include legal fees, medical fees, and 
 mandatory deductions such as federal and state income taxes. 

    (b) Effective July 1, 2003, the county agency shall count 
 $100 of the value of public and assisted rental subsidies 
 provided through the Department of Housing and Urban Development 
 (HUD) as unearned income.  The full amount of the subsidy must 
 be counted as unearned income when the subsidy is less than $100.

    (c) The provisions of paragraph (b) shall not apply to MFIP 
 participants who are exempt from the employment and training 
 services component because they are: 

    (i) individuals who are age 60 or older; 

    (ii) individuals who are suffering from a professionally 
 certified permanent or temporary illness, injury, or incapacity 
 which is expected to continue for more than 30 days and which 
 prevents the person from obtaining or retaining employment; or 

    (iii) caregivers whose presence in the home is required 
 because of the professionally certified illness or incapacity of 
 another member in the assistance unit, a relative in the 
 household, or a foster child in the household. 

    (d) The provisions of paragraph (b) shall not apply to an 
 MFIP assistance unit where the parental caregiver receives 
 supplemental security income. 

    Subd. 10.    Treatment of lump sums.  (a) The county 
 agency must treat lump-sum payments as earned or unearned 
 income.  If the lump-sum payment is included in the category of 
 income identified in subdivision 9, it must be treated as 
 unearned income.  A lump sum is counted as income in the month 
 received and budgeted either prospectively or retrospectively 
 depending on the budget cycle at the time of receipt.  When an 
 individual receives a lump-sum payment, that lump sum must be 
 combined with all other earned and unearned income received in 
 the same budget month, and it must be applied according to 
 paragraphs (a) to (c).  A lump sum may not be carried over into 
 subsequent months. Any funds that remain in the third month 
 after the month of receipt are counted in the asset limit. 

    (b) For a lump sum received by an applicant during the 
 first two months, prospective budgeting is used to determine the 
 payment and the lump sum must be combined with other earned or 
 unearned income received and budgeted in that prospective month. 

    (c) For a lump sum received by a participant after the 
 first two months of MFIP eligibility, the lump sum must be 
 combined with other income received in that budget month, and 
 the combined amount must be applied retrospectively against the 
 applicable payment month. 

    (d) When a lump sum, combined with other income under 
 paragraphs (b) and (c), is less than the MFIP standard of need 
 for the appropriate payment month, the assistance payment must 
 be reduced according to the amount of the countable income.  
 When the countable income is greater than the MFIP standard or 
 family wage level, the assistance payment must be suspended for 
 the payment month. 

    HIST: 1997 c 85 art 1 s 26; 1997 c 203 art 12 s 11; 1998 c 407 
 art 6 s 71-75; 1999 c 107 s 66; 1999 c 245 art 6 s 44-48; 2000 c 
 343 s 4; 2000 c 488 art 10 s 13; 1Sp2001 c 9 art 10 s 21 

     256J.38 Correction of overpayments and underpayments. 

    Subdivision 1.    Scope of overpayment.  When a 
 participant or former participant receives an overpayment due to 
 agency, client, or ATM error, or due to assistance received 
 while an appeal is pending and the participant or former 
 participant is determined ineligible for assistance or for less 
 assistance than was received, the county agency must recoup or 
 recover the overpayment using the following methods:  

    (1) reconstruct each affected budget month and 
 corresponding payment month; 

    (2) use the policies and procedures that were in effect for 
 the payment month; and 

    (3) do not allow employment disregards in section 256J.21, 
 subdivision 3 or 4, in the calculation of the overpayment when 
 the unit has not reported within two calendar months following 
 the end of the month in which the income was received. 

    Subd. 2.    Notice of overpayment.  When a county agency 
 discovers that a participant or former participant has received 
 an overpayment for one or more months, the county agency must 
 notify the participant or former participant of the overpayment 
 in writing.  A notice of overpayment must specify the reason for 
 the overpayment, the authority for citing the overpayment, the 
 time period in which the overpayment occurred, the amount of the 
 overpayment, and the participant's or former participant's right 
 to appeal.  No limit applies to the period in which the county 
 agency is required to recoup or recover an overpayment according 
 to subdivisions 3 and 4. 

    Subd. 3.    Recovering overpayments from former 
 participants.  A county agency must initiate efforts to 
 recover overpayments paid to a former participant.  Adults and 
 minor caregivers of an assistance unit at the time an 
 overpayment occurs, whether receiving assistance or not, are 
 jointly and individually liable for repayment of the 
 overpayment.  The county agency must request repayment from the 
 former participants.  When an agreement for repayment is not 
 completed within six months of the date of discovery or when 
 there is a default on an agreement for repayment after six 
 months, the county agency must initiate recovery consistent with 
 chapter 270A, or section 541.05.  When a person has been 
 convicted of fraud under section 256.98, recovery must be sought 
 regardless of the amount of overpayment.  When an overpayment is 
 less than $35, and is not the result of a fraud conviction under 
 section 256.98, the county agency must not seek recovery under 
 this subdivision.  The county agency must retain information 
 about all overpayments regardless of the amount.  When an adult 
 or minor caregiver reapplies for assistance, the overpayment 
 must be recouped under subdivision 4. 

    Subd. 4.    Recouping overpayments from participants.  A 
 participant may voluntarily repay, in part or in full, an 
 overpayment even if assistance is reduced under this 
 subdivision, until the total amount of the overpayment is 
 repaid.  When an overpayment occurs due to fraud, the county 
 agency must recover ten percent of the applicable standard or 
 the amount of the monthly assistance payment, whichever is 
 less.  When a nonfraud overpayment occurs, the county agency 
 must recover three percent of the MFIP standard of need or the 
 amount of the monthly assistance payment, whichever is less.  

    Subd. 5.    Recovering automatic teller machine errors.  
 For recipients receiving benefits via electronic benefit 
 transfer, if the overpayment is a result of an ATM dispensing 
 funds in error to the recipient, the agency may recover the ATM 
 error by immediately withdrawing funds from the recipient's 
 electronic benefit transfer account, up to the amount of the 
 error. 

    Subd. 6.    Scope of underpayments.  A county agency 
 must issue a corrective payment for underpayments made to a 
 participant or to a person who would be a participant if an 
 agency or client error causing the underpayment had not occurred.
 The county agency must issue the corrective payment according to 
 subdivision 8. 

    Subd. 7.    Identifying the underpayment.  An 
 underpayment may be identified by a county agency, by a 
 participant, by a former participant, or by a person who would 
 be a participant except for agency or client error. 

    Subd. 8.    Issuing corrective payments.  A county 
 agency must correct an underpayment within seven calendar days 
 after the underpayment has been identified, by adding the 
 corrective payment amount to the monthly assistance payment of 
 the participant or by issuing a separate payment to a 
 participant or former participant, or by reducing an existing 
 overpayment balance.  When an underpayment occurs in a payment 
 month and is not identified until the next payment month or 
 later, the county agency must first subtract the underpayment 
 from any overpayment balance before issuing the corrective 
 payment.  The county agency must not apply an underpayment in a 
 current payment month against an overpayment balance.  When an 
 underpayment in the current payment month is identified, the 
 corrective payment must be issued within seven calendar days 
 after the underpayment is identified. 

    Subd. 9.    Appeals.  A participant may appeal an 
 underpayment, an overpayment, and a reduction in an assistance 
 payment made to recoup the overpayment under subdivision 4.  The 
 participant's appeal of each issue must be timely under section 
 256.045.  When an appeal based on the notice issued under 
 subdivision 2 is not timely, the fact or the amount of that 
 overpayment must not be considered as a part of a later appeal, 
 including an appeal of a reduction in an assistance payment to 
 recoup that overpayment. 

    HIST: 1997 c 85 art 1 s 27; 1998 c 407 art 6 s 76; 1999 c 245 
 art 6 s 49 

     256J.39 Payment provisions; vendor payments. 

    Subdivision 1.    Payment policy.  The following 
 policies apply to monthly assistance payments and corrective 
 payments: 

    (1) Grant payments may be issued in the form of warrants 
 immediately redeemable in cash, electronic benefits transfer, or 
 by direct deposit into the recipient's account in a financial 
 institution. 

    (2) The commissioner shall mail assistance payment checks 
 to the address where a caregiver lives unless the county agency 
 approves an alternate arrangement. 

    (3) The commissioner shall mail monthly assistance payment 
 checks within time to allow postal service delivery to occur no 
 later than the first day of each month.  Monthly assistance 
 payment checks must be dated the first day of the month.  The 
 commissioner shall issue electronic benefits transfer payments 
 so that caregivers have access to the payments no later than the 
 first of the month.  

    (4) The commissioner shall issue replacement checks 
 promptly, but no later than seven calendar days after the 
 provisions of sections 16A.46; 256.01, subdivision 11; and 
 471.415 have been met. 

    (5) The commissioner, with the advance approval of the 
 commissioner of finance, may issue cash assistance grant 
 payments up to three days before the first day of each month, 
 including three days before the start of each state fiscal 
 year.  Of the money appropriated for cash assistance grant 
 payments for each fiscal year, up to three percent of the annual 
 state appropriation is available to the commissioner in the 
 previous fiscal year.  If that amount is insufficient for the 
 costs incurred, an additional amount of the appropriation as 
 needed may be transferred with the advance approval of the 
 commissioner of finance. 

    Subd. 2.    Protective and vendor payments.  
 Alternatives to paying assistance directly to a participant may 
 be used when: 

    (1) a county agency determines that a vendor payment is the 
 most effective way to resolve an emergency situation pertaining 
 to basic needs; 

    (2) a caregiver makes a written request to the county 
 agency asking that part or all of the assistance payment be 
 issued by protective or vendor payments for shelter and utility 
 service only.  The caregiver may withdraw this request in 
 writing at any time; 

    (3) the vendor payment is part of a sanction under section 
 256J.46; 

    (4) the vendor payment is required under section 256J.24, 
 subdivision 8, or 256J.26; 

    (5) protective payments are required for minor parents 
 under section 256J.14; or 

    (6) a caregiver has exhibited a continuing pattern of 
 mismanaging funds as determined by the county agency. 

    The director of a county agency, or the director's 
 designee, must approve a proposal for protective or vendor 
 payment for money mismanagement when there is a pattern of 
 mismanagement under clause (6).  During the time a protective or 
 vendor payment is being made, the county agency must provide 
 services designed to alleviate the causes of the mismanagement. 

    The continuing need for and method of payment must be 
 documented and reviewed every 12 months.  The director of a 
 county agency or the director's designee must approve the 
 continuation of protective or vendor payments.  When it appears 
 that the need for protective or vendor payments will continue or 
 is likely to continue beyond two years because the county 
 agency's efforts have not resulted in sufficiently improved use 
 of assistance on behalf of the minor child, judicial appointment 
 of a legal guardian or other legal representative must be sought 
 by the county agency.  

    Subd. 3.    Choosing payees for protective or vendor 
 payments.  A county agency shall consult with a caregiver 
 regarding the selection of the form of payment, the selection of 
 a protective payee, and the distribution of the assistance 
 payment to meet the various costs incurred by the assistance 
 unit.  When choosing a protective payee, the county agency shall 
 notify the caregiver of a consultation date.  If the caregiver 
 fails to respond to the county agency's request for consultation 
 by the effective date on the notice, the county agency must 
 choose a protective payee for that payment month and subsequent 
 payment months until the caregiver responds to the agency's 
 request for consultation.  The county agency must notify the 
 caregiver of the right to appeal the determination that a 
 protective or vendor payment should be made or continued and to 
 appeal the selection of the payee.  If a county agency is not 
 able to find another protective payee, a county agency staff 
 member may serve as a protective payee.  The following persons 
 may not serve as protective payees:  a member of the county 
 board of commissioners; the county agency staff member 
 determining financial eligibility for the family; special 
 investigative or resource staff; the staff member handling 
 accounting or fiscal processes related to the participant; or a 
 landlord, grocer, or other vendor dealing directly with the 
 participant. 

    Subd. 4.    Discontinuing protective or vendor payments. 
  A county agency shall discontinue protective or vendor 
 payments in two years or in the month following the county 
 agency's failure to grant six-month approval to a money 
 management plan, whichever occurs first.  At least once every 12 
 months, a county agency shall review the performance of a 
 protective payee acting under subdivision 2, clause (3), to 
 determine whether a new payee should be selected.  When a 
 participant complains about the performance of a protective 
 payee, a review shall occur within 30 calendar days. 

    HIST: 1997 c 85 art 1 s 28; 1998 c 407 art 6 s 77; 1999 c 245 
 art 1 s 19; 1Sp2001 c 9 art 10 s 22 

     256J.395 Vendor payment of shelter costs and utilities. 

    Subdivision 1.    Vendor payment.  (a) Effective July 1, 
 1997, when a county is required to provide assistance to a 
 participant in vendor form for shelter costs and utilities under 
 this chapter, or chapter 256, 256D, or 256K, the cost of 
 utilities for a given family may be assumed to be: 

    (1) the average of the actual monthly cost of utilities for 
 that family for the prior 12 months at the family's current 
 residence, if applicable; 

    (2) the monthly plan amount, if any, set by the local 
 utilities for that family at the family's current residence; or 

    (3) the estimated monthly utility costs for the dwelling in 
 which the family currently resides. 

    (b) For purposes of this section, "utility" means any of 
 the following:  municipal water and sewer service; electric, 
 gas, or heating fuel service; or wood, if that is the heating 
 source. 

    (c) In any instance where a vendor payment for rent is 
 directed to a landlord not legally entitled to the payment, the 
 county social services agency shall immediately institute 
 proceedings to collect the amount of the vendored rent payment, 
 which shall be considered a debt under section 270A.03, 
 subdivision 5. 

    Subd. 2.    Vendor payment notification.  (a) When a 
 county agency is required to provide assistance to a participant 
 in vendor payment form for shelter costs or utilities under 
 subdivision 1, and the participant does not give the agency the 
 information needed to pay the vendor, the county agency shall 
 notify the participant of the intent to terminate assistance by 
 mail at least ten days before the effective date of the adverse 
 action. 

    (b) The notice of action shall include a request for 
 information about: 

    (1) the amount of the participant's shelter costs or 
 utilities; 

    (2) the due date of the shelter costs or utilities; and 

    (3) the name and address of the landlord, contract for deed 
 holder, mortgage company, and utility vendor. 

    (c) If the participant fails to provide the requested 
 information by the effective date of the adverse action, the 
 county must terminate the MFIP-S grant.  If the applicant or 
 participant verifies they do not have shelter costs or utility 
 obligations, the county shall not terminate assistance if the 
 assistance unit is otherwise eligible. 

    Subd. 3.    Discontinuing vendor payments due to dispute 
 with landlord.  The county agency shall discontinue vendor 
 payments for shelter costs imposed under this chapter when the 
 vendor payment interferes with the participant's right to 
 withhold rent due to a dispute with the participant's landlord 
 in accordance with federal, state, or local housing laws. 

    HIST: 1997 c 85 art 1 s 29; 1998 c 407 art 6 s 78 

     256J.396 Support from parents of minor caregivers living 
  apart. 

    Subdivision 1.    General provisions.  A minor caregiver 
 and the minor's dependent child living outside of the home of 
 the adult parent must meet the criteria in section 256J.14, to 
 be eligible for assistance in the MFIP-S program.  A parent who 
 lives outside the home of a minor child who is an unemancipated 
 minor caregiver of an assistance unit is financially responsible 
 for that minor caregiver unless the parent is a recipient of 
 public assistance, SSI, MSA, medical assistance, general 
 assistance, or general assistance medical care, and a court 
 order does not otherwise provide a support obligation. 

    Subd. 2.    Amount of support payment.  The amount of 
 support to be paid by a parent, except a parent specified in 
 subdivision 4, must be determined according to paragraphs (a) to 
 (f). 

    (a) A minor caregiver must provide information required by 
 the county agency to identify the whereabouts of the minor 
 caregiver's absent parent or parents. 

    (b) A county agency must notify an absent parent of the 
 parent's legal responsibility to support a minor caregiver and 
 shall request that the absent parent provide the following: 

    (1) the amount of the parent's earned and unearned income 
 for the previous tax year; 

    (2) the amount of the parent's earned and unearned income 
 for the current month; 

    (3) the number and names of dependents who are claimed or 
 could be claimed by the parent on federal income tax forms; 

    (4) the amount of annual medical bills paid by the parent; 

    (5) the amount of annual housing costs paid by the parent; 

    (6) the costs for utilities and repairs to the home which 
 are paid by the parent; and 

    (7) the amount of annual educational costs for family 
 members paid by the parent. 

    (c) When a parent of a minor caregiver does not provide the 
 information requested under paragraph (b), the county agency 
 must refer the matter to the county attorney.  Assistance to the 
 minor caregiver must not be denied, delayed, reduced, or ended 
 because of the lack of cooperation of the minor caregiver's 
 parent. 

    (d) When the information requested under paragraph (b) is 
 received by a county agency, the county agency must compare the 
 parent's income against the scale set forth below using the 
 conditions and procedures specified in paragraph (e). 

           Size of Family            Federal Poverty Guideline
                 1                          $ 9,288
                 2                           12,432
                 3                           15,576
                 4                           18,720
                 5                           21,864

 For each additional family member add $3,144. 

    (e) The parent's income is the parent's gross earned income 
 plus unearned income, determined by the methods in section 
 256J.21.  To determine family size, each person claimed or who 
 could be claimed by a parent as a dependent on federal income 
 tax forms, exclusive of the minor caregiver, must be included.  
 A deduction from income must be allowed for the amount that 
 medical, educational, and housing costs together exceed 30 
 percent of the parent's income.  When the amount of income, 
 after the allowable deduction, exceeds the annual income level 
 in paragraph (d), a parent is liable to pay one-third of the 
 excess for the annual support of the minor caregiver.  These 
 payments must be paid monthly to the minor caregiver or to the 
 county agency on behalf of the minor caregiver. 

    (f) A county agency must notify the parents of the minor 
 caregiver that they are liable for the amount of support 
 determined by the county agency as specified in paragraph (e).  
 When the support payment is received by the minor caregiver, it 
 must be treated as unearned income of the assistance unit.  When 
 the support payment is not received, or a lesser amount is 
 received in any payment month, the county agency must refer the 
 matter to the county attorney. 

    Subd. 3.    Reviews.  A county agency must review 
 financial responsibility every 12 months until minor caregivers 
 reach the age of 18 or are otherwise emancipated.  When a parent 
 reports a change in circumstances, the county agency must review 
 the required amount of payment within ten calendar days. 

    Subd. 4.    Parents under court order for support.  A 
 parent who is required under an existing court order issued 
 under some other authority in state or federal law to pay child 
 support for a minor caregiver is subject to the conditions of 
 that order in lieu of the requirements and contribution levels 
 in subdivision 2. 

    HIST: 1997 c 85 art 1 s 30 

     256J.40 Fair hearings. 

    Caregivers receiving a notice of intent to sanction or a 
 notice of adverse action that includes a sanction, reduction in 
 benefits, suspension of benefits, denial of benefits, or 
 termination of benefits may request a fair hearing.  A request 
 for a fair hearing must be submitted in writing to the county 
 agency or to the commissioner and must be mailed within 30 days 
 after a participant or former participant receives written 
 notice of the agency's action or within 90 days when a 
 participant or former participant shows good cause for not 
 submitting the request within 30 days.  A former participant who 
 receives a notice of adverse action due to an overpayment may 
 appeal the adverse action according to the requirements in this 
 section.  Issues that may be appealed are: 

    (1) the amount of the assistance payment; 

    (2) a suspension, reduction, denial, or termination of 
 assistance; 

    (3) the basis for an overpayment, the calculated amount of 
 an overpayment, and the level of recoupment; 

    (4) the eligibility for an assistance payment; and 

    (5) the use of protective or vendor payments under section 
 256J.39, subdivision 2, clauses (1) to (3). 

    A county agency must not reduce, suspend, or terminate 
 payment when an aggrieved participant requests a fair hearing 
 prior to the effective date of the adverse action or within ten 
 days of the mailing of the notice of adverse action, whichever 
 is later, unless the participant requests in writing not to 
 receive continued assistance pending a hearing decision.  
 Assistance issued pending a fair hearing is subject to recovery 
 under section 256J.38 when as a result of the fair hearing 
 decision the participant is determined ineligible for assistance 
 or the amount of the assistance received.  A county agency may 
 increase or reduce an assistance payment while an appeal is 
 pending when the circumstances of the participant change and are 
 not related to the issue on appeal.  The commissioner's order is 
 binding on a county agency.  No additional notice is required to 
 enforce the commissioner's order. 

    A county agency shall reimburse appellants for reasonable 
 and necessary expenses of attendance at the hearing, such as 
 child care and transportation costs and for the transportation 
 expenses of the appellant's witnesses and representatives to and 
 from the hearing.  Reasonable and necessary expenses do not 
 include legal fees.  Fair hearings must be conducted at a 
 reasonable time and date by an impartial referee employed by the 
 department.  The hearing may be conducted by telephone or at a 
 site that is readily accessible to persons with disabilities. 

    The appellant may introduce new or additional evidence 
 relevant to the issues on appeal.  Recommendations of the 
 appeals referee and decisions of the commissioner must be based 
 on evidence in the hearing record and are not limited to a 
 review of the county agency action.  

    HIST: 1997 c 85 art 1 s 31 

     256J.415 Notice of time limit 12 months prior to 
  60-month time limit expiring. 

    The county agency shall mail a notice to each assistance 
 unit when the assistance unit has 12 months of TANF assistance 
 remaining and each month thereafter until the 60-month limit has 
 expired.  The notice must be developed by the commissioner of 
 human services and must contain information about the 60-month 
 limit, the number of months the participant has remaining, the 
 hardship extension policy, and any other information that the 
 commissioner deems pertinent to an assistance unit nearing the 
 60-month limit. 

    HIST: 1Sp2001 c 9 art 10 s 23 

     256J.42 60-month time limit; exemptions. 

    Subdivision 1.    Time limit.  (a) Except as otherwise 
 provided for in this section, an assistance unit in which any 
 adult caregiver has received 60 months of cash assistance funded 
 in whole or in part by the TANF block grant in this or any other 
 state or United States territory, or from a tribal TANF program, 
 MFIP, the AFDC program formerly codified in sections 256.72 to 
 256.87, or the family general assistance program formerly 
 codified in sections 256D.01 to 256D.23, funded in whole or in 
 part by state appropriations, is ineligible to receive MFIP.  
 Any cash assistance funded with TANF dollars in this or any 
 other state or United States territory, or from a tribal TANF 
 program, or MFIP assistance funded in whole or in part by state 
 appropriations, that was received by the unit on or after the 
 date TANF was implemented, including any assistance received in 
 states or United States territories of prior residence, counts 
 toward the 60-month limitation.  The 60-month limit applies to a 
 minor caregiver except under subdivision 5.  The 60-month time 
 period does not need to be consecutive months for this provision 
 to apply.  

    (b) The months before July 1998 in which individuals 
 received assistance as part of the field trials as an MFIP, 
 MFIP-R, or MFIP or MFIP-R comparison group family are not 
 included in the 60-month time limit. 

    Subd. 2. Repealed by amendment, 1998 c 407 art 6 s 79 

    Subd. 3.    Adults living in Indian country.  In 
 determining the number of months for which an adult has received 
 assistance under MFIP-S, the county agency must disregard any 
 month during which the adult lived in Indian country if during 
 the month at least 50 percent of the adults living in Indian 
 country were not employed. 

    Subd. 4.    Victims of family violence.  Any cash 
 assistance received by an assistance unit in a month when a 
 caregiver complied with a safety plan or after October 1, 2001, 
 complied or is complying with an alternative employment plan 
 under section 256J.49, subdivision 1a, does not count toward the 
 60-month limitation on assistance. 

    Subd. 5.    Exemption for certain families.  (a) Any 
 cash assistance received by an assistance unit does not count 
 toward the 60-month limit on assistance during a month in which 
 the caregiver is in the category in section 256J.56, paragraph 
 (a), clause (1). 

    (b) From July 1, 1997, until the date MFIP is operative in 
 the caregiver's county of financial responsibility, any cash 
 assistance received by a caregiver who is complying with 
 Minnesota Statutes 1996, section 256.73, subdivision 5a, and 
 Minnesota Statutes 1998, section 256.736, if applicable, does 
 not count toward the 60-month limit on assistance.  Thereafter, 
 any cash assistance received by a minor caregiver who is 
 complying with the requirements of sections 256J.14 and 256J.54, 
 if applicable, does not count towards the 60-month limit on 
 assistance. 

    (c) Any diversionary assistance or emergency assistance 
 received does not count toward the 60-month limit. 

    (d) Any cash assistance received by an 18- or 19-year-old 
 caregiver who is complying with the requirements of section 
 256J.54 does not count toward the 60-month limit. 

    Subd. 6.    Case review.  (a) Within 180 days, but not 
 less than 60 days, before the end of the participant's 60th 
 month on assistance, the county agency or job counselor must 
 review the participant's case to determine if the employment 
 plan is still appropriate or if the participant is exempt under 
 section 256J.56 from the employment and training services 
 component, and attempt to meet with the participant face-to-face.

    (b) During the face-to-face meeting, a county agency or the 
 job counselor must: 

    (1) inform the participant how many months of counted 
 assistance the participant has accrued and when the participant 
 is expected to reach the 60th month; 

    (2) explain the hardship extension criteria under section 
 256J.425 and what the participant should do if the participant 
 thinks a hardship extension applies; 

    (3) identify other resources that may be available to the 
 participant to meet the needs of the family; and 

    (4) inform the participant of the right to appeal the case 
 closure under section 256J.40. 

    (c) If a face-to-face meeting is not possible, the county 
 agency must send the participant a notice of adverse action as 
 provided in section 256J.31, subdivisions 4 and 5. 

    (d) Before a participant's case is closed under this 
 section, the county must ensure that: 

    (1) the case has been reviewed by the job counselor's 
 supervisor or the review team designated in the county's 
 approved local service unit plan to determine if the criteria 
 for a hardship extension, if requested, were applied 
 appropriately; and 

    (2) the county agency or the job counselor attempted to 
 meet with the participant face-to-face. 

    HIST: 1997 c 85 art 1 s 32; 1997 c 203 art 12 s 12; 1998 c 407 
 art 6 s 79; 1999 c 159 s 86,87; 1999 c 245 art 6 s 50,51; 2000 c 
 260 s 88; 1Sp2001 c 9 art 10 s 24-27 

     256J.425 Hardship extensions. 

    Subdivision 1.    Eligibility.  To be eligible for a 
 hardship extension, a participant in an assistance unit subject 
 to the time limit under section 256J.42, subdivision 1, in which 
 any participant has received 60 counted months of assistance, 
 must be in compliance in the month the participant is applying 
 for the extension.  For purposes of determining eligibility for 
 a hardship extension, a participant is in compliance in any 
 month that the participant has not been sanctioned. 

    Subd. 1a.    Review.  If a county grants a hardship 
 extension under this section, a county agency shall review the 
 case every six or 12 months, whichever is appropriate based on 
 the participant's circumstances and the extension category. 

    Subd. 2.    Ill or incapacitated.  (a) An assistance 
 unit subject to the time limit in section 256J.42, subdivision 
 1, in which any participant has received 60 counted months of 
 assistance, is eligible to receive months of assistance under a 
 hardship extension if the participant belongs to any of the 
 following groups: 

    (1) participants who are suffering from a professionally 
 certified illness, injury, or incapacity which is expected to 
 continue for more than 30 days and which prevents the person 
 from obtaining or retaining employment and who are following the 
 treatment recommendations of the health care provider certifying 
 the illness, injury, or incapacity; 

    (2) participants whose presence in the home is required as 
 a caregiver because of a professionally certified illness or 
 incapacity of another member in the assistance unit, a relative 
 in the household, or a foster child in the household and the 
 illness or incapacity is expected to continue for more than 30 
 days; or 

    (3) caregivers with a child or an adult in the household 
 who meets the disability or medical criteria for home care 
 services under section 256B.0627, subdivision 1, paragraph (c), 
 or a home and community-based waiver services program under 
 chapter 256B, or meets the criteria for severe emotional 
 disturbance under section 245.4871, subdivision 6, or for 
 serious and persistent mental illness under section 245.462, 
 subdivision 20, paragraph (c).  Caregivers in this category are 
 presumed to be prevented from obtaining or retaining employment. 

    (b) An assistance unit receiving assistance under a 
 hardship extension under this subdivision may continue to 
 receive assistance as long as the participant meets the criteria 
 in paragraph (a), clause (1), (2), or (3). 

    Subd. 3.    Hard-to-employ participants.  An assistance 
 unit subject to the time limit in section 256J.42, subdivision 
 1, in which any participant has received 60 counted months of 
 assistance, is eligible to receive months of assistance under a 
 hardship extension if the participant belongs to any of the 
 following groups: 

    (1) a person who is diagnosed by a licensed physician, 
 psychological practitioner, or other qualified professional, as 
 mentally retarded or mentally ill, and that condition prevents 
 the person from obtaining or retaining unsubsidized employment; 

    (2) a person who: 

    (i) has been assessed by a vocational specialist or the 
 county agency to be unemployable for purposes of this 
 subdivision; or 

    (ii) has an IQ below 80 who has been assessed by a 
 vocational specialist or a county agency to be employable, but 
 not at a level that makes the participant eligible for an 
 extension under subdivision 4 or, in the case of a 
 non-English-speaking person for whom it is not possible to 
 provide a determination due to language barriers or absence of 
 culturally appropriate assessment tools, is determined by a 
 qualified professional to have an IQ below 80.  A person is 
 considered employable if positions of employment in the local 
 labor market exist, regardless of the current availability of 
 openings for those positions, that the person is capable of 
 performing; or 

    (3) a person who is determined by the county agency to be 
 learning disabled or, in the case of a non-English-speaking 
 person for whom it is not possible to provide a medical 
 diagnosis due to language barriers or absence of culturally 
 appropriate assessment tools, is determined by a qualified 
 professional to have a learning disability.  If a rehabilitation 
 plan for the person is developed or approved by the county 
 agency, the plan must be incorporated into the employment plan.  
 However, a rehabilitation plan does not replace the requirement 
 to develop and comply with an employment plan under section 
 256J.52.  For purposes of this section, "learning disabled" 
 means the applicant or recipient has a disorder in one or more 
 of the psychological processes involved in perceiving, 
 understanding, or using concepts through verbal language or 
 nonverbal means.  The disability must severely limit the 
 applicant or recipient in obtaining, performing, or maintaining 
 suitable employment.  Learning disabled does not include 
 learning problems that are primarily the result of visual, 
 hearing, or motor handicaps; mental retardation; emotional 
 disturbance; or due to environmental, cultural, or economic 
 disadvantage.  

    Subd. 4.    Employed participants.  (a) An assistance 
 unit subject to the time limit under section 256J.42, 
 subdivision 1, in which any participant has received 60 months 
 of assistance, is eligible to receive assistance under a 
 hardship extension if the participant belongs to: 

    (1) a one-parent assistance unit in which the participant 
 is participating in work activities for at least 30 hours per 
 week, of which an average of at least 25 hours per week every 
 month are spent participating in employment; or 

    (2) a two-parent assistance unit in which the participants 
 are participating in work activities for at least 55 hours per 
 week, of which an average of at least 45 hours per week every 
 month are spent participating in employment. 

    For purposes of this section, employment means: 

    (1) unsubsidized employment under section 256J.49, 
 subdivision 13, clause (1); 

    (2) subsidized employment under section 256J.49, 
 subdivision 13, clause (2); 

    (3) on-the-job training under section 256J.49, subdivision 
 13, clause (4); 

    (4) an apprenticeship under section 256J.49, subdivision 
 13, clause (19); 

    (5) supported work.  For purposes of this section, 
 "supported work" means services supporting a participant on the 
 job which include, but are not limited to, supervision, job 
 coaching, and subsidized wages; 

    (6) a combination of (1) to (5); or 

    (7) child care under section 256J.49, subdivision 13, 
 clause (25), if it is in combination with paid employment. 

    (b) If a participant is complying with a child protection 
 plan under chapter 260C, the number of hours required under the 
 child protection plan count toward the number of hours required 
 under this subdivision.  

    (c) The county shall provide the opportunity for subsidized 
 employment to participants needing that type of employment 
 within available appropriations. 

    (d) To be eligible for a hardship extension for employed 
 participants under this subdivision, a participant in a 
 one-parent assistance unit or both parents in a two-parent 
 assistance unit must be in compliance for at least ten out of 
 the 12 months immediately preceding the participant's 61st month 
 on assistance.  If only one parent in a two-parent assistance 
 unit fails to be in compliance ten out of the 12 months 
 immediately preceding the participant's 61st month, the county 
 shall give the assistance unit the option of disqualifying the 
 noncompliant parent.  If the noncompliant participant is 
 disqualified, the assistance unit must be treated as a 
 one-parent assistance unit for the purposes of meeting the work 
 requirements under this subdivision and the assistance unit's 
 MFIP grant shall be calculated using the shared household 
 standard under section 256J.08, subdivision 82a. 

    (e) The employment plan developed under section 256J.52, 
 subdivision 5, for participants under this subdivision must 
 contain the number of hours specified in paragraph (a) related 
 to employment and work activities.  The job counselor and the 
 participant must sign the employment plan to indicate agreement 
 between the job counselor and the participant on the contents of 
 the plan. 

    (f) Participants who fail to meet the requirements in 
 paragraph (a), without good cause under section 256J.57, shall 
 be sanctioned or permanently disqualified under subdivision 6.  
 Good cause may only be granted for that portion of the month for 
 which the good cause reason applies.  Participants must meet all 
 remaining requirements in the approved employment plan or be 
 subject to sanction or permanent disqualification.  

    (g) If the noncompliance with an employment plan is due to 
 the involuntary loss of employment, the participant is exempt 
 from the hourly employment requirement under this subdivision 
 for one month.  Participants must meet all remaining 
 requirements in the approved employment plan or be subject to 
 sanction or permanent disqualification.  This exemption is 
 available to one-parent assistance units two times in a 12-month 
 period, and two-parent assistance units, two times per parent in 
 a 12-month period. 

    (h) This subdivision expires on June 30, 2004. 

    Subd. 5.    Accrual of certain exempt months.  (a) A 
 participant who received TANF assistance that counted towards 
 the federal 60-month time limit while the participant was exempt 
 under section 256J.56, paragraph (a), clause (7), from 
 employment and training services requirements and who is no 
 longer eligible for assistance under a hardship extension under 
 subdivision 2, paragraph (a), clause (3), is eligible for 
 assistance under a hardship extension for a period of time equal 
 to the number of months that were counted toward the federal 
 60-month time limit while the participant was exempt under 
 section 256J.56, paragraph (a), clause (7), from the employment 
 and training services requirements. 

    (b) A participant who received TANF assistance that counted 
 towards the federal 60-month time limit while the participant 
 met the state time limit exemption criteria under section 
 256J.42, subdivision 4 or 5, is eligible for assistance under a 
 hardship extension for a period of time equal to the number of 
 months that were counted toward the federal 60-month time limit 
 while the participant met the state time limit exemption 
 criteria under section 256J.42, subdivision 5. 

    Subd. 6.    Sanctions for extended cases.  (a) If one or 
 both participants in an assistance unit receiving assistance 
 under subdivision 3 or 4 are not in compliance with the 
 employment and training service requirements in sections 256J.52 
 to 256J.55, the sanctions under this subdivision apply.  For a 
 first occurrence of noncompliance, an assistance unit must be 
 sanctioned under section 256J.46, subdivision 1, paragraph (d), 
 clause (1).  For a second or third occurrence of noncompliance, 
 the assistance unit must be sanctioned under section 256J.46, 
 subdivision 1, paragraph (d), clause (2).  For a fourth 
 occurrence of noncompliance, the assistance unit is disqualified 
 from MFIP.  If a participant is determined to be out of 
 compliance, the participant may claim a good cause exception 
 under section 256J.57, however, the participant may not claim an 
 exemption under section 256J.56.  

    (b) If both participants in a two-parent assistance unit 
 are out of compliance at the same time, it is considered one 
 occurrence of noncompliance.  

    Subd. 7.    Status of disqualified participants.  (a) An 
 assistance unit that is disqualified under subdivision 6, 
 paragraph (a), may be approved for MFIP if the participant 
 complies with MFIP program requirements and demonstrates 
 compliance for up to one month.  No assistance shall be paid 
 during this period. 

    (b) An assistance unit that is disqualified under 
 subdivision 6, paragraph (a), and that reapplies under paragraph 
 (a) is subject to sanction under section 256J.46, subdivision 1, 
 paragraph (d), clause (1), for a first occurrence of 
 noncompliance.  A subsequent occurrence of noncompliance results 
 in a permanent disqualification. 

    (c) If one participant in a two-parent assistance unit 
 receiving assistance under a hardship extension under 
 subdivision 3 or 4 is determined to be out of compliance with 
 the employment and training services requirements under sections 
 256J.52 to 256J.55, the county shall give the assistance unit 
 the option of disqualifying the noncompliant participant from 
 MFIP.  In that case, the assistance unit shall be treated as a 
 one-parent assistance unit for the purposes of meeting the work 
 requirements under subdivision 4 and the assistance unit's MFIP 
 grant shall be calculated using the shared household standard 
 under section 256J.08, subdivision 82a.  An applicant who is 
 disqualified from receiving assistance under this paragraph may 
 reapply under paragraph (a).  If a participant is disqualified 
 from MFIP under this subdivision a second time, the participant 
 is permanently disqualified from MFIP. 

    (d) Prior to a disqualification under this subdivision, a 
 county agency must review the participant's case to determine if 
 the employment plan is still appropriate and attempt to meet 
 with the participant face-to-face.  If a face-to-face meeting is 
 not conducted, the county agency must send the participant a 
 notice of adverse action as provided in section 256J.31.  During 
 the face-to-face meeting, the county agency must: 

    (1) determine whether the continued noncompliance can be 
 explained and mitigated by providing a needed preemployment 
 activity, as defined in section 256J.49, subdivision 13, clause 
 (16), or services under a local intervention grant for 
 self-sufficiency under section 256J.625; 

    (2) determine whether the participant qualifies for a good 
 cause exception under section 256J.57; 

    (3) inform the participant of the participant's sanction 
 status and explain the consequences of continuing noncompliance; 

    (4) identify other resources that may be available to the 
 participant to meet the needs of the family; and 

    (5) inform the participant of the right to appeal under 
 section 256J.40. 

    Subd. 8.    County extension request.  A county may make 
 a request to the commissioner of human services, and the 
 commissioner may grant, an extension for a category of 
 participants that are not extended under section 256J.425, 
 provided the new category of participants is consistent with the 
 existing extension policy in which an extension is provided to 
 participants whose MFIP requirements conflict with other 
 statutory requirements or obligations.  By January 15 of each 
 year, the commissioner must report to the chairs and ranking 
 minority members of the senate and house committees having 
 jurisdiction over health and human services the extensions that 
 were granted under this section during the previous calendar 
 year.  The legislature must act in order for the extensions to 
 continue.  If the legislature fails to act by the end of the 
 legislative session in which the extensions were reported, the 
 extensions granted under this section during the previous 
 calendar year expire on June 30 of that year. 

    HIST: 1Sp2001 c 9 art 10 s 28 

  256J.43 Repealed, 1Sp2001 c 9 art 10 s 67 

  256J.44 Repealed, 1Sp2001 c 9 art 10 s 67 

     256J.45 Orientation. 

    Subdivision 1.    County agency to provide orientation.  
 A county agency must provide a face-to-face orientation to each 
 MFIP caregiver unless the caregiver is: 

    (1) a single parent, or one parent in a two-parent family, 
 employed at least 35 hours per week; or 

    (2) a second parent in a two-parent family who is employed 
 for 20 or more hours per week provided the first parent is 
 employed at least 35 hours per week. 

 The county agency must inform caregivers who are not exempt 
 under clause (1) or (2) that failure to attend the orientation 
 is considered an occurrence of noncompliance with program 
 requirements, and will result in the imposition of a sanction 
 under section 256J.46.  If the client complies with the 
 orientation requirement prior to the first day of the month in 
 which the grant reduction is proposed to occur, the orientation 
 sanction shall be lifted. 

    Subd. 1a.    Pregnant and parenting minors.  Pregnant 
 and parenting minors who are complying with the provisions of 
 section 256J.54 are exempt from the requirement under 
 subdivision 1, however, the county agency must provide 
 information to the minor as required under section 256J.14. 

    Subd. 2.    General information.  The MFIP orientation 
 must consist of a presentation that informs caregivers of: 

    (1) the necessity to obtain immediate employment; 

    (2) the work incentives under MFIP, including the 
 availability of the federal earned income tax credit and the 
 Minnesota working family tax credit; 

    (3) the requirement to comply with the employment plan and 
 other requirements of the employment and training services 
 component of MFIP, including a description of the range of work 
 and training activities that are allowable under MFIP to meet 
 the individual needs of participants; 

    (4) the consequences for failing to comply with the 
 employment plan and other program requirements, and that the 
 county agency may not impose a sanction when failure to comply 
 is due to the unavailability of child care or other 
 circumstances where the participant has good cause under 
 subdivision 3; 

    (5) the rights, responsibilities, and obligations of 
 participants; 

    (6) the types and locations of child care services 
 available through the county agency; 

    (7) the availability and the benefits of the early 
 childhood health and developmental screening under sections 
 121A.16 to 121A.19; 123B.02, subdivision 16; and 123B.10; 

    (8) the caregiver's eligibility for transition year child 
 care assistance under section 119B.05; 

    (9) the caregiver's eligibility for extended medical 
 assistance when the caregiver loses eligibility for MFIP due to 
 increased earnings or increased child or spousal support; 

    (10) the caregiver's option to choose an employment and 
 training provider and information about each provider, including 
 but not limited to, services offered, program components, job 
 placement rates, job placement wages, and job retention rates; 

    (11) the caregiver's option to request approval of an 
 education and training plan according to section 256J.52; 

    (12) the work study programs available under the higher 
 education system; and 

    (13) effective October 1, 2001, information about the 
 60-month time limit exemption and waivers of regular employment 
 and training requirements for family violence victims and 
 referral information about shelters and programs for victims of 
 family violence. 

    Subd. 3.    Good cause exemptions for not attending 
 orientation.  (a) The county agency shall not impose the 
 sanction under section 256J.46 if it determines that the 
 participant has good cause for failing to attend orientation.  
 Good cause exists when: 

    (1) appropriate child care is not available; 

    (2) the participant is ill or injured; 

    (3) a family member is ill and needs care by the 
 participant that prevents the participant from attending 
 orientation.  For a caregiver with a child or adult in the 
 household who meets the disability or medical criteria for home 
 care services under section 256B.0627, subdivision 1, paragraph 
 (c) or a home and community-based waiver services program under 
 chapter 256B, or meets the criteria for severe emotional 
 disturbance under section 245.4871, subdivision 6, or for 
 serious and persistent mental illness under section 245.462, 
 subdivision 20, paragraph (c), good cause also exists when an 
 interruption in the provision of those services occurs which 
 prevents the participant from attending orientation; 

    (4) the caregiver is unable to secure necessary 
 transportation; 

    (5) the caregiver is in an emergency situation that 
 prevents orientation attendance; 

    (6) the orientation conflicts with the caregiver's work, 
 training, or school schedule; or 

    (7) the caregiver documents other verifiable impediments to 
 orientation attendance beyond the caregiver's control.  

    (b) Counties must work with clients to provide child care 
 and transportation necessary to ensure a caregiver has every 
 opportunity to attend orientation. 

    HIST: 1997 c 85 art 1 s 35; 1998 c 397 art 11 s 3; 1998 c 407 
 art 6 s 81-83; 1999 c 86 art 1 s 59; 1999 c 245 art 6 s 53,54; 
 2000 c 488 art 10 s 14; 1Sp2001 c 9 art 10 s 29,30 

     256J.46 Sanctions. 

    Subdivision 1.    Participants not complying with program 
 requirements.  (a) A participant who fails without good cause 
 to comply with the requirements of this chapter, and who is not 
 subject to a sanction under subdivision 2, shall be subject to a 
 sanction as provided in this subdivision.  Prior to the 
 imposition of a sanction, a county agency shall provide a notice 
 of intent to sanction under section 256J.57, subdivision 2, and, 
 when applicable, a notice of adverse action as provided in 
 section 256J.31. 

    (b) A participant who fails to comply with an alternative 
 employment plan must have the plan reviewed by a person trained 
 in domestic violence and a job counselor or the county agency to 
 determine if components of the alternative employment plan are 
 still appropriate.  If the activities are no longer appropriate, 
 the plan must be revised with a person trained in domestic 
 violence and approved by a job counselor or the county agency.  
 A participant who fails to comply with a plan that is determined 
 not to need revision will lose their exemption and be required 
 to comply with regular employment services activities.  

    (c) A sanction under this subdivision becomes effective the 
 month following the month in which a required notice is given.  
 A sanction must not be imposed when a participant comes into 
 compliance with the requirements for orientation under section 
 256J.45 or third-party liability for medical services under 
 section 256J.30, subdivision 10, prior to the effective date of 
 the sanction.  A sanction must not be imposed when a participant 
 comes into compliance with the requirements for employment and 
 training services under sections 256J.49 to 256J.55 ten days 
 prior to the effective date of the sanction.  For purposes of 
 this subdivision, each month that a participant fails to comply 
 with a requirement of this chapter shall be considered a 
 separate occurrence of noncompliance.  A participant who has had 
 one or more sanctions imposed must remain in compliance with the 
 provisions of this chapter for six months in order for a 
 subsequent occurrence of noncompliance to be considered a first 
 occurrence.  

    (d) Sanctions for noncompliance shall be imposed as follows:

    (1) For the first occurrence of noncompliance by a 
 participant in an assistance unit, the assistance unit's grant 
 shall be reduced by ten percent of the MFIP standard of need for 
 an assistance unit of the same size with the residual grant paid 
 to the participant.  The reduction in the grant amount must be 
 in effect for a minimum of one month and shall be removed in the 
 month following the month that the participant returns to 
 compliance.  

    (2) For a second or subsequent occurrence of noncompliance 
 by a participant in an assistance unit, or when each of the 
 participants in a two-parent assistance unit have a first 
 occurrence of noncompliance at the same time, the assistance 
 unit's shelter costs shall be vendor paid up to the amount of 
 the cash portion of the MFIP grant for which the assistance unit 
 is eligible.  At county option, the assistance unit's utilities 
 may also be vendor paid up to the amount of the cash portion of 
 the MFIP grant remaining after vendor payment of the assistance 
 unit's shelter costs.  The residual amount of the grant after 
 vendor payment, if any, must be reduced by an amount equal to 30 
 percent of the MFIP standard of need for an assistance unit of 
 the same size before the residual grant is paid to the 
 assistance unit.  The reduction in the grant amount must be in 
 effect for a minimum of one month and shall be removed in the 
 month following the month that the participant in a one-parent 
 assistance unit returns to compliance.  In a two-parent 
 assistance unit, the grant reduction must be in effect for a 
 minimum of one month and shall be removed in the month following 
 the month both participants return to compliance.  The vendor 
 payment of shelter costs and, if applicable, utilities shall be 
 removed six months after the month in which the participant or 
 participants return to compliance.  If an assistance unit is 
 sanctioned under this clause, the participant's case file must 
 be reviewed as required under paragraph (e). 

    (e) When a sanction under paragraph (d), clause (2), is in 
 effect, the county agency must review the participant's case to 
 determine if the employment plan is still appropriate and 
 attempt to meet with the participant face-to-face.  The 
 participant may bring an advocate to the face-to-face meeting.  
 If a face-to-face meeting is not conducted, the county agency 
 must send the participant a written notice that includes the 
 information required under clause (1). 

    (1) During the face-to-face meeting, the county agency must:

    (i) determine whether the continued noncompliance can be 
 explained and mitigated by providing a needed preemployment 
 activity, as defined in section 256J.49, subdivision 13, clause 
 (16), or services under a local intervention grant for 
 self-sufficiency under section 256J.625; 

    (ii) determine whether the participant qualifies for a good 
 cause exception under section 256J.57; 

    (iii) determine whether the participant qualifies for an 
 exemption under section 256J.56; 

    (iv) determine whether the participant qualifies for an 
 exemption from regular employment services requirements for 
 victims of family violence under section 256J.52, subdivision 6; 

    (v) inform the participant of the participant's sanction 
 status and explain the consequences of continuing noncompliance; 

    (vi) identify other resources that may be available to the 
 participant to meet the needs of the family; and 

    (vii) inform the participant of the right to appeal under 
 section 256J.40. 

    (2) If the lack of an identified activity can explain the 
 noncompliance, the county must work with the participant to 
 provide the identified activity, and the county must restore the 
 participant's grant amount to the full amount for which the 
 assistance unit is eligible.  The grant must be restored 
 retroactively to the first day of the month in which the 
 participant was found to lack preemployment activities or to 
 qualify for an exemption under section 256J.56, a good cause 
 exception under section 256J.57, or an exemption for victims of 
 family violence under section 256J.52, subdivision 6. 

    (3) If the participant is found to qualify for a good cause 
 exception or an exemption, the county must restore the 
 participant's grant to the full amount for which the assistance 
 unit is eligible.  

    Subd. 1a. Repealed, 1Sp2001 c 9 art 10 s 67 

    Subd. 2.    Sanctions for refusal to cooperate with 
 support requirements.  The grant of an MFIP caregiver who 
 refuses to cooperate, as determined by the child support 
 enforcement agency, with support requirements under section 
 256.741, shall be subject to sanction as specified in this 
 subdivision.  The assistance unit's grant must be reduced by 25 
 percent of the applicable MFIP standard of need.  The residual 
 amount of the grant, if any, must be paid to the caregiver.  A 
 sanction under this subdivision becomes effective the first 
 month following the month in which a required notice is given.  
 A sanction must not be imposed when a caregiver comes into 
 compliance with the requirements under section 256.741 prior to 
 the effective date of the sanction.  The sanction shall be 
 removed in the month following the month that the caregiver 
 cooperates with the support requirements.  Each month that an 
 MFIP caregiver fails to comply with the requirements of section 
 256.741 must be considered a separate occurrence of 
 noncompliance.  An MFIP caregiver who has had one or more 
 sanctions imposed must remain in compliance with the 
 requirements of section 256.741 for six months in order for a 
 subsequent sanction to be considered a first occurrence. 

    Subd. 2a.    Dual sanctions.  (a) Notwithstanding the 
 provisions of subdivisions 1 and 2, for a participant subject to 
 a sanction for refusal to comply with child support requirements 
 under subdivision 2 and subject to a concurrent sanction for 
 refusal to cooperate with other program requirements under 
 subdivision 1, sanctions shall be imposed in the manner 
 prescribed in this subdivision. 

    A participant who has had one or more sanctions imposed 
 under this subdivision must remain in compliance with the 
 provisions of this chapter for six months in order for a 
 subsequent occurrence of noncompliance to be considered a first 
 occurrence.  Any vendor payment of shelter costs or utilities 
 under this subdivision must remain in effect for six months 
 after the month in which the participant is no longer subject to 
 sanction under subdivision 1. 

    (b) If the participant was subject to sanction for: 

    (i) noncompliance under subdivision 1 before being subject 
 to sanction for noncooperation under subdivision 2; or 

    (ii) noncooperation under subdivision 2 before being 
 subject to sanction for noncompliance under subdivision 1, the 
 participant is considered to have a second occurrence of 
 noncompliance and shall be sanctioned as provided in subdivision 
 1, paragraph (d), clause (2).  Each subsequent occurrence of 
 noncompliance shall be considered one additional occurrence and 
 shall be subject to the applicable level of sanction under 
 subdivision 1, paragraph (d), or section 256J.462.  The 
 requirement that the county conduct a review as specified in 
 subdivision 1, paragraph (e), remains in effect. 

    (c) A participant who first becomes subject to sanction 
 under both subdivisions 1 and 2 in the same month is subject to 
 sanction as follows: 

    (i) in the first month of noncompliance and noncooperation, 
 the participant's grant must be reduced by 25 percent of the 
 applicable MFIP standard of need, with any residual amount paid 
 to the participant; 

    (ii) in the second and subsequent months of noncompliance 
 and noncooperation, the participant shall be subject to the 
 applicable level of sanction under subdivision 1, paragraph (d), 
 or section 256J.462. 

    The requirement that the county conduct a review as 
 specified in subdivision 1, paragraph (e), remains in effect. 

    (d) A participant remains subject to sanction under 
 subdivision 2 if the participant: 

    (i) returns to compliance and is no longer subject to 
 sanction under subdivision 1 or section 256J.462; or 

    (ii) has the sanction under subdivision 1, paragraph (d), 
 or section 256J.462 removed upon completion of the review under 
 subdivision 1, paragraph (e). 

    A participant remains subject to the applicable level of 
 sanction under subdivision 1, paragraph (d), or section 256J.462 
 if the participant cooperates and is no longer subject to 
 sanction under subdivision 2. 

    HIST: 1997 c 85 art 1 s 36; 1997 c 245 art 4 s 2; 1998 c 407 
 art 6 s 84-86; 1999 c 245 art 6 s 55-57; 1Sp2001 c 9 art 10 s 
 31,32 

     256J.462 Sanctions; county options. 

    Subdivision 1.    County sanction policy plan.  In 
 addition to the sanctions under section 256J.46, a county agency 
 may annually modify sanctions for noncompliant MFIP participants 
 by implementing one of the sanction options under this section 
 for a sixth or subsequent occurrence of noncompliance.  

    Subd. 2.    Procedure.  (a) If a county modifies 
 sanctions for noncompliant participants, a county agency must 
 develop and submit to the commissioner, by April 15, a proposed 
 sanction policy plan that describes the sanctions imposed for 
 each occurrence of noncompliance.  A county agency must include 
 the sanction policy plan as part of its local service unit plan 
 under section 268.88. 

    (b) A county agency must send a written notice to MFIP 
 participants at least 60 days before a county implements a 
 modification of its sanction policy under this section.  The 
 county must also send a notice of adverse action prior to 
 implementing a sanction under subdivision 3. 

    (c) For the purpose of applying sanctions under this 
 section, only occurrences of noncompliance that occur after the 
 effective date of the sanctions implemented under this section 
 shall be considered.  If the participant is in 30 percent 
 sanction in the month the sanction takes effect, that month 
 counts as the first occurrence for purposes of applying the 
 sanctions under this section, but the sanction shall remain at 
 30 percent for that month. 

    (d) If an assistance unit that is in sanction status moves 
 to a county that has adopted more severe sanctions than the 
 assistance unit's previous county of residence, the participant 
 shall be subject to the level of sanction that was imposed in 
 the previous county of residence for the first six months of 
 residence in the new county or until the participant comes into 
 compliance, whichever occurs earlier. 

    (e) If both participants in a two-parent assistance unit 
 are out of compliance at the same time, it is considered one 
 occurrence of noncompliance. 

    Subd. 3.    Sanction options.  A county agency may 
 modify its sanction policy by implementing one of the following 
 sanctions for a sixth or subsequent occurrence of noncompliance: 

    (a) The county agency may vendor pay the assistance unit's 
 shelter or utility costs, or both costs, up to the amount of the 
 cash portion of the MFIP grant for which the assistance unit is 
 eligible.  The residual amount of the grant after vendor 
 payment, if any, shall be reduced to zero.  The sanction must be 
 in effect for a minimum of one month and shall be removed the 
 month following the month in which the participant returns to 
 compliance.  In a two-parent assistance unit, the sanction must 
 be in effect for a minimum of one month and shall be removed the 
 month following the month in which both participants return to 
 compliance.  The vendor payment of shelter or utility costs, or 
 both, shall be removed six months after the month in which the 
 participant returns to compliance. 

    (b) The county agency may disqualify an assistance unit 
 from receiving MFIP, both the cash and food portions.  This 
 disqualification must be in effect for one full month. 
 Disqualification under this paragraph does not make a 
 participant automatically ineligible for food stamps.  The 
 county shall determine eligibility for food stamps and assist 
 the participant in applying for food stamps, if eligible. 

    Subd. 4.    Case review.  Before a sanction under this 
 section is imposed, a county agency shall conduct the case 
 review required under section 256J.46, subdivision 1, paragraph 
 (e). 

    Subd. 5.    Eligibility after disqualification due to 
 noncompliance.  In the sanction policy plan under subdivision 
 2, a county may propose restrictions on assistance units that 
 reapply for MFIP after disqualification for noncompliance under 
 subdivision 3, paragraph (b).  Such restrictions may not include 
 permanent disqualification for noncompliance.  Any restrictions 
 must be limited to the first six months of MFIP eligibility 
 following reapplication, provided that the participant complies 
 with work requirements for the entire six months.  Such 
 restrictions may include: 

    (1) requiring participants to comply with work requirements 
 for a period not to exceed one month before the assistance unit 
 could regain MFIP eligibility; 

    (2) requiring that reapplying assistance units remain in 
 ten percent sanction for six months; and 

    (3) changing the policy for subsequent sanctions for 
 noncompliance to shorten the time frame before disqualification. 

    Subd. 6.    Sanction policy review.  The commissioner 
 may review a county's sanction policies and practices if the 
 county has a high or low sanction rate as compared to other 
 counties or a high sanction rate for certain hard-to-serve 
 participants.  The commissioner shall require a county agency to 
 complete corrective actions to remedy identified agency errors 
 or misapplications of policy and may suspend a county's 
 authority to impose sanction options under this section until 
 the corrective actions are taken. 

    HIST: 1Sp2001 c 9 art 10 s 33 

*   NOTE:  This section, as added by Laws 2001, First Special 
*Session chapter 9, article 10, section 33, is effective March 1, 
*2002.  Laws 2001, First Special Session chapter 9, article 10, 
*section 33, the effective date.

     256J.47 Diversionary assistance program. 

    Subdivision 1.    Eligibility.  A family is eligible to 
 receive diversionary assistance once every 12 months if: 

    (1) a family member has resided in this state for at least 
 30 days; 

    (2) the caregiver provides verification that the caregiver 
 has either experienced an unexpected occurrence that makes it 
 impossible to retain or obtain employment or the caregiver has a 
 temporary loss of income, which is not due to refusing to accept 
 or terminating suitable employment as defined in section 
 256J.49, without good cause under section 256J.57, resulting in 
 an emergency; 

    (3) the caregiver is at risk of MFIP-S eligibility if 
 diversionary assistance is not provided and household income is 
 below 200 percent of the federal poverty guidelines; and 

    (4) the diversionary assistance will resolve the emergency 
 and divert the family from applying for MFIP-S. 

    For purposes of this section, diversionary assistance means 
 a one-time lump-sum payment to an individual or third-party 
 vendor to prevent long-term receipt of public assistance. 

    Subd. 2.    County agency duties.  County agencies shall:

    (1) thoroughly explain to the caregiver the consequences of 
 receiving diversionary assistance, specifically the resulting 
 period of ineligibility under subdivision 4 for other assistance 
 programs; and 

    (2) determine eligibility for diversionary assistance 
 within five working days of the receipt of the verification that 
 substantiates eligibility or ineligibility.  Verification means 
 client declaration and the best determination of the county 
 agency. 

    Subd. 3.    Maximum amount of assistance.  The maximum 
 amount of diversionary assistance that may be provided to a 
 family is equal to the amount of the MFIP-S transitional 
 standard for the same family size and composition for four 
 months.  The assistance provided under this program must be 
 based on the immediate needs of the family.  Counties must 
 strive to provide the most cost-effective solution to the 
 one-time emergency.  Diversionary assistance is not cost 
 effective if the family's anticipated income added to the 
 diversion payment will not be sufficient to cover the family's 
 immediate needs for the period of ineligibility under 
 subdivision 4, beginning with the month of application, or 
 another emergency can reasonably be anticipated within the 
 period of ineligibility. 

    Subd. 4.    Ineligibility for MFIP; emergency assistance; 
 and emergency general assistance.  Upon receipt of 
 diversionary assistance, the family is ineligible for MFIP, 
 emergency assistance, and emergency general assistance for a 
 period of time.  To determine the period of ineligibility, the 
 county shall use the following formula:  regardless of household 
 changes, the county agency must calculate the number of days of 
 ineligibility by dividing the diversionary assistance issued by 
 the MFIP standard of need a family of the same size and 
 composition would have received under MFIP multiplied by 30, 
 truncating the result.  The ineligibility period begins the date 
 the diversionary assistance is issued. 

    Subd. 5.    Diversionary assistance grant; funding.  The 
 commissioner shall distribute diversionary assistance grants to 
 counties.  The commissioner may use federal block grant funding 
 or state funding for the grants. 

    HIST: 1997 c 85 art 1 s 37; 1998 c 407 art 6 s 87; 1999 c 245 
 art 6 s 58; 2000 c 488 art 10 s 15 

     256J.48 Emergency assistance (EA). 

    Subdivision 1.    Emergency financial assistance.  
 County human service agencies shall grant emergency financial 
 assistance to any needy pregnant woman or needy family with a 
 child under the age of 21 who is or was within six months prior 
 to application living with an eligible caregiver relative 
 specified in section 256J.08. 

    Except for ongoing special diets, emergency assistance is 
 available to a family during one 30-day period in a consecutive 
 12-month period.  A county shall issue assistance for needs that 
 accrue before that 30-day period only when it is necessary to 
 resolve emergencies arising or continuing during the 30-day 
 period of eligibility.  When emergency needs continue, a county 
 may issue assistance for up to 30 days beyond the initial 30-day 
 period of eligibility, but only when assistance is authorized 
 during the initial period. 

    Subd. 1a.    Processing emergency applications.  Within 
 seven days of receiving the application, or sooner if the 
 immediacy and severity of the situation warrants it, families 
 must be notified in writing whether their application was 
 approved, denied, or pended. 

    Subd. 2.    Eligibility.  Notwithstanding other 
 eligibility provisions of this chapter, any family without 
 resources immediately available to meet emergency needs 
 identified in subdivision 3 shall be eligible for an emergency 
 grant under the following conditions: 

    (1) a family member has resided in this state for at least 
 30 days; 

    (2) the family is without resources immediately available 
 to meet emergency needs; 

    (3) assistance is necessary to avoid destitution or provide 
 emergency shelter arrangements; 

    (4) the family's destitution or need for shelter or 
 utilities did not arise because the assistance unit is under 
 sanction, the caregiver is disqualified, or the child or 
 relative caregiver refused without good cause under section 
 256J.57 to accept employment or training for employment in this 
 state or another state; and 

    (5) at least one child or pregnant woman in the emergency 
 assistance unit meets MFIP citizenship requirements in section 
 256J.11. 

    Subd. 3.    Emergency needs.  Emergency needs are 
 limited to the following: 

    (a)    Rent.  A county agency may deny assistance to 
 prevent eviction from rented or leased shelter of an otherwise 
 eligible applicant when the county agency determines that an 
 applicant's anticipated income will not cover continued payment 
 for shelter, subject to conditions in clauses (1) to (3): 

    (1) a county agency must not deny assistance when an 
 applicant can document that the applicant is unable to locate 
 habitable shelter, unless the county agency can document that 
 one or more habitable shelters are available in the community 
 that will result in at least a 20 percent reduction in monthly 
 expense for shelter and that this shelter will be cost-effective 
 for the applicant; 

    (2) when no alternative shelter can be identified by either 
 the applicant or the county agency, the county agency shall not 
 deny assistance because anticipated income will not cover rental 
 obligation; and 

    (3) when cost-effective alternative shelter is identified, 
 the county agency shall issue assistance for moving expenses as 
 provided in paragraph (e). 

    (b)    Definitions.  For purposes of paragraph (a), the 
 following definitions apply (1) "metropolitan statistical area" 
 is as defined by the United States Census Bureau; (2) 
 "alternative shelter" includes any shelter that is located 
 within the metropolitan statistical area containing the county 
 and for which the applicant is eligible, provided the applicant 
 does not have to travel more than 20 miles to reach the shelter 
 and has access to transportation to the shelter.  Clause (2) 
 does not apply to counties in the Minneapolis-St. Paul 
 metropolitan statistical area. 

    (c)    Mortgage and contract for deed arrearages.  A 
 county agency shall issue assistance for mortgage or contract 
 for deed arrearages on behalf of an otherwise eligible applicant 
 according to clauses (1) to (4): 

    (1) assistance for arrearages must be issued only when a 
 home is owned, occupied, and maintained by the applicant; 

    (2) assistance for arrearages must be issued only when no 
 subsequent foreclosure action is expected within the 12 months 
 following the issuance; 

    (3) assistance for arrearages must be issued only when an 
 applicant has been refused refinancing through a bank or other 
 lending institution and the amount payable, when combined with 
 any payments made by the applicant, will be accepted by the 
 creditor as full payment of the arrearage; 

    (4) costs paid by a family which are counted toward the 
 payment requirements in this clause are:  principal and interest 
 payments on mortgages or contracts for deed, balloon payments, 
 homeowner's insurance payments, manufactured home lot rental 
 payments, and tax or special assessment payments related to the 
 homestead.  Costs which are not counted include closing costs 
 related to the sale or purchase of real property. 

    To be eligible for assistance for costs specified in clause 
 (4) which are outstanding at the time of foreclosure, an 
 applicant must have paid at least 40 percent of the family's 
 gross income toward these costs in the month of application and 
 the 11-month period immediately preceding the month of 
 application. 

    When an applicant is eligible under clause (4), a county 
 agency shall issue assistance up to a maximum of four times the 
 MFIP standard of need for a comparable assistance unit. 

    (d)    Damage or utility deposits.  A county agency 
 shall issue assistance for damage or utility deposits when 
 necessary to alleviate the emergency.  The county may require 
 that assistance paid in the form of a damage deposit, less any 
 amount retained by the landlord to remedy a tenant's default in 
 payment of rent or other funds due to the landlord under a 
 rental agreement, or to restore the premises to the condition at 
 the commencement of the tenancy, ordinary wear and tear 
 excepted, be returned to the county when the individual vacates 
 the premises or be paid to the recipient's new landlord as a 
 vendor payment.  The county may require that assistance paid in 
 the form of a utility deposit less any amount retained to 
 satisfy outstanding utility costs be returned to the county when 
 the person vacates the premises, or be paid for the person's new 
 housing unit as a vendor payment.  The vendor payment of 
 returned funds shall not be considered a new use of emergency 
 assistance. 

    (e)    Moving expenses.  A county agency shall issue 
 assistance for expenses incurred when a family must move to a 
 different shelter according to clauses (1) to (4): 

    (1) moving expenses include the cost to transport personal 
 property belonging to a family, the cost for utility connection, 
 and the cost for securing different shelter; 

    (2) moving expenses must be paid only when the county 
 agency determines that a move is cost-effective; 

    (3) moving expenses must be paid at the request of an 
 applicant, but only when destitution or threatened destitution 
 exists; and 

    (4) moving expenses must be paid when a county agency 
 denies assistance to prevent an eviction because the county 
 agency has determined that an applicant's anticipated income 
 will not cover continued shelter obligation in paragraph (a). 

    (f)    Home repairs.  A county agency shall pay for 
 repairs to the roof, foundation, wiring, heating system, 
 chimney, and water and sewer system of a home that is owned and 
 lived in by an applicant. 

    The applicant shall document, and the county agency shall 
 verify the need for and method of repair. 

    The payment must be cost-effective in relation to the 
 overall condition of the home and in relation to the cost and 
 availability of alternative housing. 

    (g)    Utility costs.  Assistance for utility costs must 
 be made when an otherwise eligible family has had a termination 
 or is threatened with a termination of municipal water and sewer 
 service, electric, gas or heating fuel service, refuse removal 
 service, or lacks wood when that is the heating source, subject 
 to the conditions in clauses (1) and (2): 

    (1) a county agency must not issue assistance unless the 
 county agency receives confirmation from the utility provider 
 that assistance combined with payment by the applicant will 
 continue or restore the utility; and 

    (2) a county agency shall not issue assistance for utility 
 costs unless a family paid at least eight percent of the 
 family's gross income toward utility costs due during the 
 preceding 12 months. 

    Clauses (1) and (2) must not be construed to prevent the 
 issuance of assistance when a county agency must take immediate 
 and temporary action necessary to protect the life or health of 
 a child. 

    (h)    Special diets.  Effective January 1, 1998, a 
 county shall pay for special diets or dietary items for MFIP 
 participants.  Persons receiving emergency assistance funds for 
 special diets or dietary items are also eligible to receive 
 emergency assistance for shelter and utility emergencies, if 
 otherwise eligible.  The need for special diets or dietary items 
 must be prescribed by a licensed physician.  Costs for special 
 diets shall be determined as percentages of the allotment for a 
 one-person household under the Thrifty Food Plan as defined by 
 the United States Department of Agriculture.  The types of diets 
 and the percentages of the Thrifty Food Plan that are covered 
 are as follows: 

    (1) high protein diet, at least 80 grams daily, 25 percent 
 of Thrifty Food Plan; 

    (2) controlled protein diet, 40 to 60 grams and requires 
 special products, 100 percent of Thrifty Food Plan; 

    (3) controlled protein diet, less than 40 grams and 
 requires special products, 125 percent of Thrifty Food Plan; 

    (4) low cholesterol diet, 25 percent of Thrifty Food Plan; 

    (5) high residue diet, 20 percent of Thrifty Food Plan; 

    (6) pregnancy and lactation diet, 35 percent of Thrifty 
 Food Plan; 

    (7) gluten-free diet, 25 percent of Thrifty Food Plan; 

    (8) lactose-free diet, 25 percent of Thrifty Food Plan; 

    (9) antidumping diet, 15 percent of Thrifty Food Plan; 

    (10) hypoglycemic diet, 15 percent of Thrifty Food Plan; or 

    (11) ketogenic diet, 25 percent of Thrifty Food Plan. 

    Subd. 4.    Vendor payments for shelter or utility costs. 
  An ongoing MFIP-S grant may, at county board option, be in 
 the form of vendor payments if application for emergency 
 assistance is for shelter or utility costs. 

    HIST: 1997 c 85 art 1 s 38; 1998 c 407 art 6 s 88,89; 1999 c 
 245 art 6 s 59,60; 1Sp2001 c 9 art 10 s 34 

     256J.49 Employment and training services; definitions. 

    Subdivision 1.    Scope.  The terms used in sections 
 256J.50 to 256J.72 have the meanings given them in this section. 

    Subd. 1a.    Alternative employment plan.  "Alternative 
 employment plan" means a plan that is based on an individualized 
 assessment of need and is developed with a person trained in 
 domestic violence and approved by the county or a job 
 counselor.  The plan may address safety, legal or emotional 
 issues, and other demands on the family as a result of the 
 family violence.  The information in section 256J.515, clauses 
 (1) to (8), must be included as part of the development of the 
 alternative employment plan.  The primary goal of an alternative 
 employment plan is to ensure the safety of the caregiver and 
 children.  To the extent it is consistent with ensuring safety, 
 an alternative employment plan shall also include activities 
 that are designed to lead to self-sufficiency.  An activity is 
 inconsistent with ensuring safety if, in the opinion of a person 
 trained in domestic violence, the activity would endanger the 
 safety of the participant or children.  An alternative 
 employment plan may not automatically include a provision that 
 requires a participant to obtain an order for protection or to 
 attend counseling. 

    Subd. 2.    Family violence.  "Family violence" means: 

    (1) physical acts that result, or threaten to result in, 
 physical injury to an individual; 

    (2) sexual abuse; 

    (3) sexual activity involving a minor child; 

    (4) being forced as the caregiver of a minor child to 
 engage in nonconsensual sexual acts or activities; 

    (5) threats of, or attempts at, physical or sexual abuse; 

    (6) mental abuse; or 

    (7) neglect or deprivation of medical care. 

 Claims of family violence must be documented by the applicant or 
 participant providing a sworn statement, which is supported by 
 collateral documentation.  Collateral documentation may consist 
 of any one of the following: 

    (1) police, government agency, or court records; 

    (2) a statement from a battered woman's shelter staff with 
 knowledge of circumstances or credible evidence that supports 
 the sworn statement; 

    (3) a statement from a sexual assault or domestic violence 
 advocate with knowledge of the circumstances or credible 
 evidence that supports a sworn statement; 

    (4) a statement from professionals from whom the applicant 
 or recipient has sought assistance for the abuse; or 

    (5) a sworn statement from any other individual with 
 knowledge of circumstances or credible evidence that supports 
 the sworn statement. 

    Subd. 3.    Employment and training services.  
 "Employment and training services" means programs, activities 
 and services that are designed to assist participants in 
 obtaining and retaining employment. 

    Subd. 4.    Employment and training service provider.  
 "Employment and training service provider" means: 

    (1) a public, private, or nonprofit employment and training 
 agency certified by the commissioner of economic security under 
 sections 268.0122, subdivision 3, and 268.871, subdivision 1, or 
 is approved under section 256J.51 and is included in the county 
 plan submitted under section 256J.50, subdivision 7; 

    (2) a public, private, or nonprofit agency that is not 
 certified by the commissioner under clause (1), but with which a 
 county has contracted to provide employment and training 
 services and which is included in the county's plan submitted 
 under section 256J.50, subdivision 7; or 

    (3) a county agency, if the county has opted to provide 
 employment and training services and the county has indicated 
 that fact in the plan submitted under section 256J.50, 
 subdivision 7. 

    Notwithstanding section 268.871, an employment and training 
 services provider meeting this definition may deliver employment 
 and training services under this chapter. 

    Subd. 5.    Employment plan.  "Employment plan" means a 
 plan developed by the job counselor and the participant which 
 identifies the participant's most direct path to unsubsidized 
 employment, lists the specific steps that the caregiver will 
 take on that path, and includes a timetable for the completion 
 of each step. 

    Subd. 6.    Federal participation standards.  "Federal 
 participation standards" means the work participation standards 
 as specified in title I of Public Law Number 104-193, the 
 Personal Responsibility and Work Opportunity Reconciliation Act 
 of 1996. 

    Subd. 7.    Intensive English as a second language 
 program.  "Intensive English as a second language program" 
 means an English as a second language program that offers at 
 least 20 hours of class per week. 

    Subd. 8.    Job counselor.  "Job counselor" means a 
 staff person employed by or under contract with the employment 
 and training services provider who delivers services as 
 specified in sections 256J.50 to 256J.55. 

    Subd. 9.    Participant.  "Participant" means a 
 recipient of MFIP-S assistance who participates or is required 
 to participate in employment and training services. 

    Subd. 10.    Provider.  "Provider" means an employment 
 and training service provider. 

    Subd. 11. Repealed, 1Sp2001 c 9 art 10 s 67 

    Subd. 12.    Suitable employment.  "Suitable employment" 
 means employment that: 

    (1) is within the participant's physical and mental 
 abilities; 

    (2) pays hourly gross wages of not less than the applicable 
 state or federal minimum wage; 

    (3) meets health and safety standards set by federal, state 
 and county agencies; and 

    (4) complies with federal, state, and local 
 antidiscrimination laws. 

    Subd. 13.    Work activity.  "Work activity" means any 
 activity in a participant's approved employment plan that is 
 tied to the participant's employment goal.  For purposes of the 
 MFIP program, any activity that is included in a participant's 
 approved employment plan meets the definition of work activity 
 as counted under the federal participation standards.  Work 
 activity includes, but is not limited to: 

    (1) unsubsidized employment; 

    (2) subsidized private sector or public sector employment, 
 including grant diversion as specified in section 256J.69; 

    (3) work experience, including CWEP as specified in section 
 256J.67, and including work associated with the refurbishing of 
 publicly assisted housing if sufficient private sector 
 employment is not available; 

    (4) on-the-job training as specified in section 256J.66; 

    (5) job search, either supervised or unsupervised; 

    (6) job readiness assistance; 

    (7) job clubs, including job search workshops; 

    (8) job placement; 

    (9) job development; 

    (10) job-related counseling; 

    (11) job coaching; 

    (12) job retention services; 

    (13) job-specific training or education; 

    (14) job skills training directly related to employment; 

    (15) the self-employment investment demonstration (SEID), 
 as specified in section 256J.65; 

    (16) preemployment activities, based on availability and 
 resources, such as volunteer work, literacy programs and related 
 activities, citizenship classes, English as a second language 
 (ESL) classes as limited by the provisions of section 256J.52, 
 subdivisions 3, paragraph (d), and 5, paragraph (c), or 
 participation in dislocated worker services, chemical dependency 
 treatment, mental health services, peer group networks, 
 displaced homemaker programs, strength-based resiliency 
 training, parenting education, or other programs designed to 
 help families reach their employment goals and enhance their 
 ability to care for their children; 

    (17) community service programs; 

    (18) vocational educational training or educational 
 programs that can reasonably be expected to lead to employment, 
 as limited by the provisions of section 256J.53; 

    (19) apprenticeships; 

    (20) satisfactory attendance in general educational 
 development diploma classes or an adult diploma program; 

    (21) satisfactory attendance at secondary school, if the 
 participant has not received a high school diploma; 

    (22) adult basic education classes; 

    (23) internships; 

    (24) bilingual employment and training services; 

    (25) providing child care services to a participant who is 
 working in a community service program; and 

    (26) activities included in an alternative employment plan 
 that is developed under section 256J.52, subdivision 6. 

    HIST: 1997 c 85 art 1 s 39; 1997 c 200 art 6 s 1 1998 c 407 
 art 6 s 90; 2000 c 488 art 10 s 16; 1Sp2001 c 9 art 10 s 35-37 

     256J.50 County duties. 

    Subdivision 1.    Employment and training services 
 component of MFIP.  (a) By January 1, 1998, each county must 
 develop and implement an employment and training services 
 component of MFIP which is designed to put participants on the 
 most direct path to unsubsidized employment.  Participation in 
 these services is mandatory for all MFIP caregivers, unless the 
 caregiver is exempt under section 256J.56. 

    (b) A county must provide employment and training services 
 under sections 256J.515 to 256J.74 within 30 days after the 
 caregiver's participation becomes mandatory under subdivision 5 
 or within 30 days of receipt of a request for services from a 
 caregiver who under section 256J.42 is no longer eligible to 
 receive MFIP but whose income is below 120 percent of the 
 federal poverty guidelines for a family of the same size.  The 
 request must be made within 12 months of the date the 
 caregivers' MFIP case was closed. 

    Subd. 2.    Pilot programs.  In counties selected for 
 the work first or work focused pilot programs, first-time 
 applicants for assistance must meet the requirements of those 
 programs in place of the requirements of the MFIP-S program.  A 
 county may, at its option, discontinue a work first or work 
 focused pilot program. 

    Subd. 3.    Transitional rule; MFIP or MFIP-R participant. 
  A caregiver who was enrolled in MFIP or MFIP-R on the date 
 the county implements the employment and training services 
 component of MFIP-S and was making satisfactory progress toward 
 the objectives specified in the caregiver's employment plan, may 
 continue with the existing employment plan for up to two years 
 with the approval of a job counselor.  The job counselor may 
 require changes to the plan in order to be consistent with this 
 two-year time limit. 

    Subd. 3a.    Transitional rule; STRIDE, ACCESS.  (a) A 
 county agency that is not a participant in the MFIP or MFIP-R 
 field trials formerly codified in sections 256.031 to 256.0361 
 shall not enroll a recipient into project STRIDE or ACCESS after 
 the date that MFIP is implemented in the county.  

    (b) A caregiver who: 

    (i) was enrolled in project STRIDE or ACCESS continuously 
 since March 1, 1997; 

    (ii) is not a part of an MFIP or MFIP-R comparison group; 
 and 

    (iii) who is making satisfactory progress toward the 
 objectives specified in the caregiver's employment plan, may, 
 with the approval of the job counselor, continue with the 
 existing employment plan for up to two years after the caregiver 
 is enrolled in MFIP.  For purposes of the federal participation 
 standards, the activities in the caregiver's employment plan are 
 work activities, as that term is defined in section 256J.49, 
 subdivision 13. 

    (c) Notwithstanding contrary provisions of section 256.736, 
 the employability plan of a caregiver who is enrolled in project 
 STRIDE or ACCESS on or after July 1, 1997, must meet the 
 requirements of section 256J.53. 

    Subd. 4.    Service providing agencies.  Unless the 
 provisions of subdivision 8 apply, a county must select at least 
 two employment and training service providers.  A county may opt 
 to provide services on its own as one of these providers. 

    Subd. 5.    Participation requirements for all cases.  
 (a) For two-parent cases, participation is required concurrent 
 with the receipt of MFIP cash assistance.  

    For single-parent cases, participation is required 
 concurrent with the receipt of MFIP cash assistance for all 
 counties except Blue Earth and Nicollet, effective July 1, 2000, 
 and is required for Blue Earth and Nicollet counties effective 
 January 1, 2001.  For Blue Earth and Nicollet counties only, 
 from July 1, 2000 to December 31, 2000, mandatory participation 
 for single-parent cases must be required within six months of 
 eligibility for cash assistance. 

    (b) Beginning January 1, 1998, with the exception of 
 caregivers required to attend high school under the provisions 
 of section 256J.54, subdivision 5, MFIP caregivers, upon 
 completion of the secondary assessment, must develop an 
 employment plan and participate in work activities. 

    (c) Upon completion of the secondary assessment: 

    (1) In single-parent families with no children under six 
 years of age, the job counselor and the caregiver must develop 
 an employment plan that includes 20 to 35 hours per week of work 
 activities for the period January 1, 1998, to September 30, 
 1998; 25 to 35 hours of work activities per week in federal 
 fiscal year 1999; and 30 to 35 hours per week of work activities 
 in federal fiscal year 2000 and thereafter. 

    (2) In single-parent families with a child under six years 
 of age, the job counselor and the caregiver must develop an 
 employment plan that includes 20 to 35 hours per week of work 
 activities. 

    (3) In two-parent families, the job counselor and the 
 caregivers must develop employment plans which result in a 
 combined total of at least 55 hours per week of work activities. 

    Subd. 6.    Explanatory materials required.  The county 
 must: 

    (1) explain to applicants and recipients and provide 
 explanatory materials regarding the relationship between the 
 60-month time limit on assistance funded with TANF dollars and 
 the receipt of various benefits, including cash assistance, food 
 stamps, medical assistance, and child care assistance; and 

    (2) provide assistance to applicants and recipients to 
 enable them to minimize the use of their 60 allowable months of 
 TANF-funded assistance.  

    Subd. 7.    Local service unit plan.  (a) Each local or 
 county service unit shall prepare and submit a plan as specified 
 in section 268.88. 

    (b) The plan must include a description of how projects 
 funded under the local intervention grants for self-sufficiency 
 in section 256J.625, subdivisions 2 and 3, operate in the local 
 service unit, including: 

    (1) the target populations of hard-to-employ participants, 
 working participants in need of job retention and wage 
 advancement services, and caregivers who, within the last 12 
 months, have been determined under section 256J.42 to no longer 
 be eligible to receive MFIP and whose income is below 120 
 percent of the federal poverty guidelines for a family of the 
 same size, with a description of how individual participant 
 needs will be met; 

    (2) services that will be provided which may include paid 
 work experience, enhanced mental health services, outreach to 
 sanctioned families and to caregivers who, within the last 12 
 months, have been determined under section 256J.42 to no longer 
 be eligible to receive MFIP but whose income is below 120 
 percent of the federal poverty guidelines for a family of the 
 same size, child care for social services, child care transition 
 year set-aside, homeless and housing advocacy, and 
 transportation; 

    (3) projected expenditures by activity; 

    (4) anticipated program outcomes including the anticipated 
 impact the intervention efforts will have on performance 
 measures under section 256J.751 and on reducing the number of 
 MFIP participants expected to reach their 60-month time limit; 
 and 

    (5) a description of services that are provided or will be 
 provided to MFIP participants affected by chemical dependency, 
 mental health issues, learning disabilities, or family violence. 

    Each plan must demonstrate how the county or tribe is 
 working within its organization and with other organizations in 
 the community to serve hard-to-employ populations, including how 
 organizations in the community were engaged in planning for use 
 of these funds, services other entities will provide under the 
 plan, and whether multicounty or regional strategies are being 
 implemented as part of this plan. 

    (c) Activities and expenditures in the plan must enhance or 
 supplement MFIP activities without supplanting existing 
 activities and expenditures.  However, this paragraph does not 
 require a county to maintain either:  

    (1) its current provision of child care assistance to MFIP 
 families through the expenditure of county resources under 
 chapter 256E for social services child care assistance if funds 
 are appropriated by another law for an MFIP social services 
 child care pool; 

    (2) its current provision of transition-year child care 
 assistance through the expenditure of county resources if funds 
 are appropriated by another law for this purpose; or 

    (3) its current provision of intensive ESL programs through 
 the expenditure of county resources if funds are appropriated by 
 another law for intensive ESL grants. 

    (d) The plan required under this subdivision must be 
 approved before the local or county service unit is eligible to 
 receive funds under section 256J.625, subdivisions 2 and 3. 

    Subd. 8.    County duty to ensure employment and training 
 choices for participants.  Each county, or group of counties 
 working cooperatively, shall make available to participants the 
 choice of at least two employment and training service providers 
 as defined under section 256J.49, subdivision 4, except in 
 counties utilizing workforce centers that use multiple 
 employment and training services, offer multiple services 
 options under a collaborative effort and can document that 
 participants have choice among employment and training services 
 designed to meet specialized needs. 

    Subd. 9.    Exception; financial hardship.  
 Notwithstanding subdivision 8, a county that explains in the 
 plan required under subdivision 7 that the provision of 
 alternative employment and training service providers would 
 result in financial hardship for the county is not required to 
 make available more than one employment and training provider. 

    Subd. 10.    Required notification to victims of family 
 violence.  County agencies and their contractors must provide 
 universal notification to all applicants and recipients of MFIP 
 that: 

    (1) referrals to counseling and supportive services are 
 available for victims of family violence; 

    (2) nonpermanent resident battered individuals married to 
 United States citizens or permanent residents may be eligible to 
 petition for permanent residency under the federal Violence 
 Against Women Act, and that referrals to appropriate legal 
 services are available; 

    (3) victims of family violence are exempt from the 60-month 
 limit on assistance while the individual is complying with an 
 approved safety plan or, after October 1, 2001, an alternative 
 employment plan, as defined in section 256J.49, subdivision 1a; 
 and 

    (4) victims of family violence may choose to have regular 
 work requirements waived while the individual is complying with 
 an alternative employment plan as defined in section 256J.49, 
 subdivision 1a.  

    If an alternative plan is denied, the county or a job 
 counselor must provide reasons why the plan is not approved and 
 document how the denial of the plan does not interfere with the 
 safety of the participant or children. 

    Notification must be in writing and orally at the time of 
 application and recertification, when the individual is referred 
 to the title IV-D child support agency, and at the beginning of 
 any job training or work placement assistance program. 

    Subd. 11.    Coordination.  The county agency and the 
 county agency's employment and training providers must consult 
 and coordinate with other providers of employment and training 
 services to identify existing resources, in order to prevent 
 duplication of services, to assure that other programs' services 
 are available to enable participants to achieve 
 self-sufficiency, and to assure that costs for these other 
 services for which participants are eligible are not incurred by 
 MFIP-S.  At a minimum, the county agency and its providers must 
 coordinate with Jobs Training and Partnership Act providers and 
 with any other relevant employment, training, and education 
 programs in the county. 

    Subd. 12.    Access to persons trained in domestic 
 violence.  In a county where there is no staff person who is 
 trained in domestic violence, as that term is defined in section 
 256J.08, subdivision 67a, the county must work with the nearest 
 organization that is designated as providing services to victims 
 of domestic violence to develop a process, which ensures that 
 domestic violence victims have access to a person trained in 
 domestic violence. 

    HIST: 1997 c 85 art 1 s 40; 1998 c 407 art 6 s 91-93; 1999 c 
 159 s 89; 1999 c 245 art 6 s 61; 2000 c 488 art 10 s 17,18; 
 1Sp2001 c 9 art 10 s 38-41 

     256J.51 Employment and training service provider; 
  alternate approval process. 

    Subdivision 1.    Provider application.  An employment 
 and training service provider that is not included in a county's 
 plan under section 256J.50, subdivision 7, because the county 
 has demonstrated financial hardship under subdivision 9 of that 
 section, may appeal its exclusion to the commissioner of 
 economic security under this section. 

    Subd. 2.    Appeal; alternate approval.  (a) An 
 employment and training service provider that is not included by 
 a county agency in the plan under section 256J.50, subdivision 
 7, and that meets the criteria in paragraph (b), may appeal its 
 exclusion to the commissioner of economic security, and may 
 request alternative approval by the commissioner of economic 
 security to provide services in the county.  

    (b) An employment and training services provider that is 
 requesting alternative approval must demonstrate to the 
 commissioner that the provider meets the standards specified in 
 section 268.871, subdivision 1, paragraph (b), except that the 
 provider's past experience may be in services and programs 
 similar to those specified in section 268.871, subdivision 1, 
 paragraph (b). 

    Subd. 3.    Commissioner's review.  (a) The commissioner 
 must act on a request for alternative approval under this 
 section within 30 days of the receipt of the request.  If after 
 reviewing the provider's request, and the county's plan 
 submitted under section 256J.50, subdivision 7, the commissioner 
 determines that the provider meets the criteria under 
 subdivision 2, paragraph (b), and that approval of the provider 
 would not cause financial hardship to the county, the county 
 must submit a revised plan under subdivision 4 that includes the 
 approved provider.  

    (b) If the commissioner determines that the approval of the 
 provider would cause financial hardship to the county, the 
 commissioner must notify the provider and the county of this 
 determination.  The alternate approval process under this 
 section shall be closed to other requests for alternate approval 
 to provide employment and training services in the county for up 
 to 12 months from the date that the commissioner makes a 
 determination under this paragraph. 

    Subd. 4.    Revised plan required.  The commissioner of 
 economic security must notify the county agency when the 
 commissioner grants an alternative approval to an employment and 
 training service provider under subdivision 2.  Upon receipt of 
 the notice, the county agency must submit a revised plan under 
 section 256J.50, subdivision 7, that includes the approved 
 provider.  The county has 90 days from the receipt of the 
 commissioner's notice to submit the revised plan. 

    Subd. 5.    Review not required.  Notwithstanding 
 subdivision 3, once a county meets the requirements of section 
 256J.50, subdivision 8, the commissioner may, but is not 
 required to, act on a request by an employment and training 
 services provider for alternative approval in that county. 

    HIST: 1997 c 85 art 1 s 41 

     256J.515 Overview of employment and training services. 

    During the first meeting with participants, job counselors 
 must ensure that an overview of employment and training services 
 is provided that: 

    (1) stresses the necessity and opportunity of immediate 
 employment; 

    (2) outlines the job search resources offered; 

    (3) outlines education or training opportunities available; 

    (4) describes the range of work activities, including 
 activities under section 256J.49, subdivision 13, clause (18), 
 that are allowable under MFIP to meet the individual needs of 
 participants; 

    (5) explains the requirements to comply with an employment 
 plan; 

    (6) explains the consequences for failing to comply; 

    (7) explains the services that are available to support job 
 search and work and education; and 

    (8) provides referral information about shelters and 
 programs for victims of family violence, the time limit 
 exemption, and waivers of regular employment and training 
 requirements for family violence victims. 

    Failure to attend the overview of employment and training 
 services without good cause results in the imposition of a 
 sanction under section 256J.46. 

    Effective October 1, 2001, a participant who has an 
 alternative employment plan under section 256J.52, subdivision 
 6, as defined in section 256J.49, subdivision 1a, or who is in 
 the process of developing such a plan, is exempt from the 
 requirement to attend the overview. 

    HIST: 1997 c 85 art 1 s 42; 1998 c 407 art 6 s 94; 1999 c 245 
 art 6 s 62; 1Sp2001 c 9 art 10 s 42 

     256J.52 Assessments; plans. 

    Subdivision 1.    Application limited to certain 
 participants.  This section applies to participants receiving 
 MFIP assistance who are not exempt under section 256J.56, and to 
 caregivers who volunteer for employment and training services. 

    Subd. 2.    Initial assessment.  (a) The job counselor 
 must, with the cooperation of the participant, assess the 
 participant's ability to obtain and retain employment.  This 
 initial assessment must include a review of the participant's 
 education level, prior employment or work experience, 
 transferable work skills, and existing job markets. 

    (b) In assessing the participant, the job counselor must 
 determine if the participant needs refresher courses for 
 professional certification or licensure, in which case, the job 
 search plan under subdivision 3 must include the courses 
 necessary to obtain the certification or licensure, in addition 
 to other work activities, provided the combination of the 
 courses and other work activities are at least for 40 hours per 
 week.  

    (c) If a participant can demonstrate to the satisfaction of 
 the county agency that lack of proficiency in English is a 
 barrier to obtaining suitable employment, the job counselor must 
 include participation in an intensive English as a second 
 language program if available or otherwise a regular English as 
 a second language program in the individual's employment plan 
 under subdivision 5.  Lack of proficiency in English is not 
 necessarily a barrier to employment.  

    (d) The job counselor may approve an education or training 
 plan, and postpone the job search requirement, if the 
 participant has a proposal for an education program which: 

    (1) can be completed within 24 months; and 

    (2) meets the criteria of section 256J.53, subdivisions 1, 
 2, 3, and 5. 

    (e) A participant who, at the time of the initial 
 assessment, presents a plan that includes farming as a 
 self-employed work activity must have an employment plan 
 developed under subdivision 5 that includes the farming as an 
 approved work activity. 

    Subd. 3.    Job search; job search support plan.  (a) 
 If, after the initial assessment, the job counselor determines 
 that the participant possesses sufficient skills that the 
 participant is likely to succeed in obtaining suitable 
 employment, the participant must conduct job search for a period 
 of up to eight weeks, for at least 30 hours per week.  The 
 participant must accept any offer of suitable employment.  Upon 
 agreement by the job counselor and the participant, a job search 
 support plan may limit a job search to jobs that are consistent 
 with the participant's employment goal.  The job counselor and 
 participant must develop a job search support plan which 
 specifies, at a minimum:  whether the job search is to be 
 supervised or unsupervised; support services that will be 
 provided while the participant conducts job search activities; 
 the courses necessary to obtain certification or licensure, if 
 applicable, and after obtaining the license or certificate, the 
 client must comply with subdivision 5; and how frequently the 
 participant must report to the job counselor on the status of 
 the participant's job search activities.  The job search support 
 plan must also specify that the participant fulfill no more than 
 half of the required hours of job search through attending adult 
 basic education or English as a second language classes, if one 
 or both of those activities are approved by the job counselor. 

    (b) During the eight-week job search period, either the job 
 counselor or the participant may request a review of the 
 participant's job search plan and progress towards obtaining 
 suitable employment.  If a review is requested by the 
 participant, the job counselor must concur that the review is 
 appropriate for the participant at that time.  If a review is 
 conducted, the job counselor may make a determination to conduct 
 a secondary assessment prior to the conclusion of the job search.

    (c) Failure to conduct the required job search, to accept 
 any offer of suitable employment, to develop or comply with a 
 job search support plan, or voluntarily quitting suitable 
 employment without good cause results in the imposition of a 
 sanction under section 256J.46.  If at the end of eight weeks 
 the participant has not obtained suitable employment, the job 
 counselor must conduct a secondary assessment of the participant 
 under subdivision 3. 

    (d) In order for an English as a second language (ESL) 
 class to be an approved work activity, a participant must be at 
 or below a spoken language proficiency level of SPL5 or its 
 equivalent, as measured by a nationally recognized test.  A 
 participant may not be approved for more than a total of 24 
 months of ESL activities while participating in the employment 
 and training services component of MFIP.  In approving ESL as a 
 work activity, the job counselor must give preference to 
 enrollment in an intensive ESL program, if one is available, 
 over a regular ESL program.  If an intensive ESL program is 
 approved, the restriction in paragraph (a) that no more than 
 half of the required hours of job search is fulfilled through 
 attending ESL classes does not apply. 

    Subd. 4.    Secondary assessment.  (a) The job counselor 
 must conduct a secondary assessment for those participants who: 

    (1) in the judgment of the job counselor, have barriers to 
 obtaining employment that will not be overcome with a job search 
 support plan under subdivision 3; 

    (2) have completed eight weeks of job search under 
 subdivision 3 without obtaining suitable employment; 

    (3) have not received a secondary assessment, are working 
 at least 20 hours per week, and the participant, job counselor, 
 or county agency requests a secondary assessment; or 

    (4) have an existing job search plan or employment plan 
 developed for another program or are already involved in 
 training or education activities under section 256J.55, 
 subdivision 5. 

    (b) In the secondary assessment the job counselor must 
 evaluate the participant's skills and prior work experience, 
 family circumstances, interests and abilities, need for 
 preemployment activities, supportive or educational services, 
 and the extent of any barriers to employment.  Failure to 
 complete a secondary assessment shall result in the imposition 
 of a sanction as specified in sections 256J.46 and 256J.57.  The 
 job counselor must use the information gathered through the 
 secondary assessment to develop an employment plan under 
 subdivision 5. 

    (c) The job counselor may require the participant to 
 complete a professional chemical use assessment to be performed 
 according to the rules adopted under section 254A.03, 
 subdivision 3, including provisions in the administrative rules 
 which recognize the cultural background of the participant, or a 
 professional psychological assessment as a component of the 
 secondary assessment, when the job counselor has a reasonable 
 belief, based on objective evidence, that a participant's 
 ability to obtain and retain suitable employment is impaired by 
 a medical condition.  The job counselor may ensure that 
 appropriate services, including child care assistance and 
 transportation, are available to the participant to meet needs 
 identified by the assessment.  Data gathered as part of a 
 professional assessment must be classified and disclosed 
 according to the provisions in section 13.46. 

    (d) The provider shall make available to participants 
 information regarding additional vendors or resources which 
 provide employment and training services that may be available 
 to the participant under a plan developed under this section.  
 At a minimum, the provider must make available information on 
 the following resources:  business and higher education 
 partnerships operated under the Minnesota job skills 
 partnership, community and technical colleges, adult basic 
 education programs, and services offered by vocational 
 rehabilitation programs.  The information must include a brief 
 summary of services provided and related performance 
 indicators.  Performance indicators must include, but are not 
 limited to, the average time to complete program offerings, 
 placement rates, entry and average wages, and retention rates.  
 To be included in the information given to participants, a 
 vendor or resource must provide counties with relevant 
 information in the format required by the county. 

    Subd. 5.    Employment plan; contents.  (a) Based on the 
 secondary assessment under subdivision 4, the job counselor and 
 the participant must develop an employment plan for the 
 participant that includes specific activities that are tied to 
 an employment goal and a plan for long-term self-sufficiency, 
 and that is designed to move the participant along the most 
 direct path to unsubsidized employment.  The employment plan 
 must list the specific steps that will be taken to obtain 
 employment and a timetable for completion of each of the steps. 
 Upon agreement by the job counselor and the participant, the 
 employment plan may limit a job search to jobs that are 
 consistent with the participant's employment goal. 

    (b) As part of the development of the participant's 
 employment plan, the participant shall have the option of 
 selecting from among the vendors or resources that the job 
 counselor determines will be effective in supplying one or more 
 of the services necessary to meet the employment goals specified 
 in the participant's plan.  In compiling the list of vendors and 
 resources that the job counselor determines would be effective 
 in meeting the participant's employment goals, the job counselor 
 must determine that adequate financial resources are available 
 for the vendors or resources ultimately selected by the 
 participant. 

    (c) In order for an English as a second language (ESL) 
 class to be an approved work activity, a participant must be at 
 or below a spoken language proficiency level of SPL5 or its 
 equivalent, as measured by a nationally recognized test.  A 
 participant may not be approved for more than a total of 24 
 months of ESL activities while participating in the employment 
 and training services component of MFIP.  In approving ESL as a 
 work activity, the job counselor must give preference to 
 enrollment in an intensive ESL program, if one is available, 
 over a regular ESL program. 

    (d) The job counselor and the participant must sign the 
 developed plan to indicate agreement between the job counselor 
 and the participant on the contents of the plan. 

    Subd. 5a.    Basic education activities in plan.  
 Participants with low skills in reading or mathematics who are 
 proficient only at or below an eighth-grade level must be 
 allowed to include basic education activities in a job search 
 support plan or an employment plan, whichever is applicable. 

    Subd. 6.    Alternative employment plan and family 
 violence waiver provisions.  Participants who have a safety 
 plan under section 256J.49, subdivision 11, prior to October 1, 
 2001, will have that plan converted to an alternative employment 
 plan upon their plan renewal date.  An alternative employment 
 plan must be reviewed at the end of the first six months to 
 determine if the activities contained in the alternative 
 employment plan are still appropriate.  It is the responsibility 
 of the county or a job counselor to contact the participant and 
 notify the participant that the plan is up for review and 
 document whether the participant wishes to renew the plan.  If 
 the participant does not wish to renew the plan, or if the 
 participant fails to respond after reasonable efforts to contact 
 the participant are made by the county or a job counselor, the 
 participant must participate in regular employment services 
 activities.  If the participant requests renewal of the plan or 
 if there is a dispute over whether the plan is still 
 appropriate, the participant must receive the assistance of a 
 person trained in domestic violence.  If the person trained in 
 domestic violence recommends that the activities are still 
 appropriate, the county or a job counselor must renew the 
 alternative employment plan or provide written reasons why the 
 plan is not approved and document how denial of the plan renewal 
 does not interfere with the safety of the participant or 
 children.  If the person trained in domestic violence recommends 
 that the activities are no longer appropriate, the plan must be 
 revised with the assistance of a person trained in domestic 
 violence.  The county or a job counselor must approve the 
 revised plan or provide written reasons why the plan is not 
 approved and document how denial of the plan renewal does not 
 interfere with the safety of the participant or children.  After 
 the first six months reviews may take place quarterly.  During 
 the time a participant is cooperating with the development or 
 revision of an alternative employment plan, the participant is 
 not subject to a sanction for noncompliance with regular 
 employment services activities.  

    Subd. 7.    Revision of plan.  If the employee has lost 
 or quit a job with good cause, the job counselor must ascertain 
 the reason for the job loss and work with the participant to 
 amend the job search support plan or employment plan, whichever 
 is in effect, as necessary to address the problem.  If a job 
 search support plan is in effect, the participant, county 
 agency, or job counselor may request a secondary assessment at 
 this time. 

    Subd. 8.    Administrative support for postemployment 
 education and training.  After a caregiver receiving MFIP-S 
 has been employed for six consecutive months, during which time 
 the caregiver works on average more than 20 hours per week, the 
 caregiver's job counselor shall inform the caregiver that the 
 caregiver may request a secondary assessment described in 
 subdivision 4 and shall provide information about: 

    (1) part-time education and training options available to 
 the caregiver; and 

    (2) child care and transportation resources available to 
 support postemployment education and training. 

    Subd. 9.    Training concurrent with employment.  An 
 MFIP caregiver who is meeting the minimum hourly work 
 participation requirements under the Personal Responsibility and 
 Work Opportunity Reconciliation Act of 1996 through employment 
 must be allowed to meet any additional MFIP-S hourly work 
 participation requirements through training or education that 
 meets the requirements of section 256J.53. 

    HIST: 1997 c 85 art 1 s 43; 1997 c 245 art 4 s 3,4; 1998 c 407 
 art 6 s 95-97; 1999 c 245 art 6 s 63-67; 2000 c 488 art 10 s 
 19,20; 1Sp2001 c 9 art 10 s 43,44 

     256J.53 Post-secondary education; limitations on 
  approval, job search requirement. 

    Subdivision 1.    Length of program.  In order for a 
 post-secondary education or training program to be approved work 
 activity as defined in section 256J.49, subdivision 13, clause 
 (18), it must be a program lasting 24 months or less, and the 
 participant must meet the requirements of subdivisions 2 and 3.  

    Subd. 2.    Documentation supporting program.  In order 
 for a post-secondary education or training program to be an 
 approved activity in a participant's employment plan, the 
 participant or the employment and training service provider must 
 provide documentation that: 

    (1) the participant's employment plan identifies specific 
 goals that can only be met with the additional education or 
 training; 

    (2) there are suitable employment opportunities that 
 require the specific education or training in the area in which 
 the participant resides or is willing to reside; 

    (3) the education or training will result in significantly 
 higher wages for the participant than the participant could earn 
 without the education or training; 

    (4) the participant can meet the requirements for admission 
 into the program; and 

    (5) there is a reasonable expectation that the participant 
 will complete the training program based on such factors as the 
 participant's MFIP-S assessment, previous education, training, 
 and work history; current motivation; and changes in previous 
 circumstances. 

    Subd. 3.    Satisfactory progress required.  In order 
 for a post-secondary education or training program to be an 
 approved activity in a participant's employment plan, the 
 participant must maintain satisfactory progress in the program.  
 "Satisfactory progress" in an education or training program 
 means (1) the participant remains in good standing while the 
 participant is enrolled in the program, as defined by the 
 education or training institution, or (2) the participant makes 
 satisfactory progress as the term is defined in the 
 participant's employment plan. 

    Subd. 4. Repealed, 1Sp2001 c 9 art 10 s 67 

    Subd. 5.    Job search after completion of work activity. 
  If a participant's employment plan includes a post-secondary 
 educational or training program, the plan must include an 
 anticipated completion date for those activities.  At the time 
 the education or training is completed, the participant must 
 participate in job search.  If, after three months of job 
 search, the participant does not find a job that is consistent 
 with the participant's employment goal, the participant must 
 accept any offer of suitable employment. 

    HIST: 1997 c 85 art 1 s 44; 1Sp2001 c 9 art 10 s 45 

     256J.54 Minor parents; employment plan. 

    Subdivision 1.    Assessment of educational progress and 
 needs.  The county agency must document the educational level 
 of each MFIP-S caregiver who is under the age of 20 and 
 determine if the caregiver has obtained a high school diploma or 
 its equivalent.  If the caregiver has not obtained a high school 
 diploma or its equivalent, and is not exempt from the 
 requirement to attend school under subdivision 5, the county 
 agency must complete an individual assessment for the 
 caregiver.  The assessment must be performed as soon as possible 
 but within 30 days of determining MFIP-S eligibility for the 
 caregiver.  The assessment must provide an initial examination 
 of the caregiver's educational progress and needs, literacy 
 level, child care and supportive service needs, family 
 circumstances, skills, and work experience.  In the case of a 
 caregiver under the age of 18, the assessment must also consider 
 the results of either the caregiver's or the caregiver's minor 
 child's child and teen checkup under Minnesota Rules, parts 
 9505.0275 and 9505.1693 to 9505.1748, if available, and the 
 effect of a child's development and educational needs on the 
 caregiver's ability to participate in the program.  The county 
 agency must advise the caregiver that the caregiver's first goal 
 must be to complete an appropriate educational option if one is 
 identified for the caregiver through the assessment and, in 
 consultation with educational agencies, must review the various 
 school completion options with the caregiver and assist in 
 selecting the most appropriate option.  

    Subd. 2.    Responsibility for assessment and employment 
 plan.  For caregivers who are under age 18 without a high 
 school diploma or its equivalent, the assessment under 
 subdivision 1 and the employment plan under subdivision 3 must 
 be completed by the social services agency under section 
 257.33.  For caregivers who are age 18 or 19 without a high 
 school diploma or its equivalent, the assessment under 
 subdivision 1 and the employment plan under subdivision 3 must 
 be completed by the job counselor or, at county option, by the 
 social services agency under section 257.33.  Upon reaching age 
 18 or 19 a caregiver who received social services under section 
 257.33 and is without a high school diploma or its equivalent 
 has the option to choose whether to continue receiving services 
 under the caregiver's plan from the social services agency or to 
 utilize an MFIP employment and training service provider.  The 
 social services agency or the job counselor shall consult with 
 representatives of educational agencies that are required to 
 assist in developing educational plans under section 124D.331. 

    Subd. 3.    Educational option developed.  If the job 
 counselor or county social services agency identifies an 
 appropriate educational option for a caregiver under the age of 
 20 without a high school diploma or its equivalent, the job 
 counselor or agency must develop an employment plan which 
 reflects the identified option.  The plan must specify that 
 participation in an educational activity is required, what 
 school or educational program is most appropriate, the services 
 that will be provided, the activities the caregiver will take 
 part in, including child care and supportive services, the 
 consequences to the caregiver for failing to participate or 
 comply with the specified requirements, and the right to appeal 
 any adverse action.  The employment plan must, to the extent 
 possible, reflect the preferences of the caregiver. 

    Subd. 4.    No appropriate educational option.  If the 
 job counselor determines that there is no appropriate 
 educational option for a caregiver who is age 18 or 19 without a 
 high school diploma or its equivalent, the job counselor must 
 develop an employment plan, as defined in section 256J.49, 
 subdivision 5, for the caregiver.  If the county social services 
 agency determines that school attendance is not appropriate for 
 a caregiver under age 18 without a high school diploma or its 
 equivalent, the county agency shall refer the caregiver to 
 social services for services as provided in section 257.33. 

    Subd. 5.    School attendance required.  (a) 
 Notwithstanding the provisions of section 256J.56, minor 
 parents, or 18- or 19-year-old parents without a high school 
 diploma or its equivalent must attend school unless: 

    (1) transportation services needed to enable the caregiver 
 to attend school are not available; 

    (2) appropriate child care services needed to enable the 
 caregiver to attend school are not available; 

    (3) the caregiver is ill or incapacitated seriously enough 
 to prevent attendance at school; or 

    (4) the caregiver is needed in the home because of the 
 illness or incapacity of another member of the household.  This 
 includes a caregiver of a child who is younger than six weeks of 
 age. 

    (b) The caregiver must be enrolled in a secondary school 
 and meeting the school's attendance requirements.  The county, 
 social service agency, or job counselor must verify at least 
 once per quarter that the caregiver is meeting the school's 
 attendance requirements.  An enrolled caregiver is considered to 
 be meeting the attendance requirements when the school is not in 
 regular session, including during holiday and summer breaks. 

    HIST: 1997 c 85 art 1 s 45; 1998 c 397 art 11 s 3; 1998 c 407 
 art 6 s 98-101; 1999 c 245 art 6 s 68 

     256J.55 Participant requirements, rights, and 
  expectations. 

    Subdivision 1.    Compliance with job search or employment 
 plan; suitable employment.  (a) Each MFIP-S participant must 
 comply with the terms of the participant's job search support 
 plan or employment plan.  When the participant has completed the 
 steps listed in the employment plan, the participant must comply 
 with section 256J.53, subdivision 5, if applicable, and then the 
 participant must not refuse any offer of suitable employment.  
 The participant may choose to accept an offer of suitable 
 employment before the participant has completed the steps of the 
 employment plan. 

    (b) For a participant under the age of 20 who is without a 
 high school diploma or general educational development diploma, 
 the requirement to comply with the terms of the employment plan 
 means the participant must meet the requirements of section 
 256J.54. 

    (c) Failure to develop or comply with a job search support 
 plan or an employment plan, or quitting suitable employment 
 without good cause, shall result in the imposition of a sanction 
 as specified in sections 256J.46 and 256J.57. 

    Subd. 2.    Duty to report.  The participant must inform 
 the job counselor within three working days regarding any 
 changes related to the participant's employment status. 

    Subd. 3.    Move to a different county.  MFIP-S 
 applicants or recipients who move to a different county in 
 Minnesota and are required to participate in employment and 
 training services are subject to the requirements of the 
 destination county.  An employment plan that was developed in 
 the county of origin may be continued in the destination county 
 if both the destination county and the participant agree to do 
 so. 

    Subd. 4.    Choice of provider.  MFIP caregivers must be 
 able to choose from at least two employment and training service 
 providers, unless the county has demonstrated to the 
 commissioner that the provision of multiple employment and 
 training service providers would result in financial hardship 
 for the county, or the county is utilizing a workforce center as 
 specified in section 256J.50, subdivision 8.  Both parents in a 
 two-parent family must choose the same employment and training 
 service provider unless a special need, such as bilingual 
 services, is identified but not available through one service 
 provider. 

    Subd. 5.    Option to utilize existing plan.  With job 
 counselor approval, if a participant is already complying with a 
 job search support or employment plan that was developed for a 
 different program or is already involved in education or 
 training activities, the participant may continue that plan or 
 activity if the plan meets, or is modified to meet, the 
 requirements of sections 256J.52 to 256J.57, and if the 
 participant is concurrently employed and the combination of the 
 hours spent in education or training and employment meets the 
 hourly participation requirements.  The participant is not 
 required to be employed if the number of hours per week the 
 participant is in education or training meets the hourly work 
 participation requirements. 

    HIST: 1997 c 85 art 1 s 46; 1998 c 407 art 6 s 102; 1999 c 245 
 art 6 s 69 

     256J.56 Employment and training services component; 
  exemptions. 

    (a) An MFIP participant is exempt from the requirements of 
 sections 256J.52 to 256J.55 if the participant belongs to any of 
 the following groups: 

    (1) participants who are age 60 or older; 

    (2) participants who are suffering from a professionally 
 certified permanent or temporary illness, injury, or incapacity 
 which is expected to continue for more than 30 days and which 
 prevents the person from obtaining or retaining employment.  
 Persons in this category with a temporary illness, injury, or 
 incapacity must be reevaluated at least quarterly; 

    (3) participants whose presence in the home is required as 
 a caregiver because of a professionally certified illness or 
 incapacity of another member in the assistance unit, a relative 
 in the household, or a foster child in the household and the 
 illness or incapacity is expected to continue for more than 30 
 days; 

    (4) women who are pregnant, if the pregnancy has resulted 
 in a professionally certified incapacity that prevents the woman 
 from obtaining or retaining employment; 

    (5) caregivers of a child under the age of one year who 
 personally provide full-time care for the child.  This exemption 
 may be used for only 12 months in a lifetime.  In two-parent 
 households, only one parent or other relative may qualify for 
 this exemption; 

    (6) participants experiencing a personal or family crisis 
 that makes them incapable of participating in the program, as 
 determined by the county agency.  If the participant does not 
 agree with the county agency's determination, the participant 
 may seek professional certification, as defined in section 
 256J.08, that the participant is incapable of participating in 
 the program. 

    Persons in this exemption category must be reevaluated 
 every 60 days.  A personal or family crisis related to family 
 violence, as determined by the county or a job counselor with 
 the assistance of a person trained in domestic violence, should 
 not result in an exemption, but should be addressed through the 
 development or revision of an alternative employment plan under 
 section 256J.52, subdivision 6; or 

    (7) caregivers with a child or an adult in the household 
 who meets the disability or medical criteria for home care 
 services under section 256B.0627, subdivision 1, paragraph (c), 
 or a home and community-based waiver services program under 
 chapter 256B, or meets the criteria for severe emotional 
 disturbance under section 245.4871, subdivision 6, or for 
 serious and persistent mental illness under section 245.462, 
 subdivision 20, paragraph (c).  Caregivers in this exemption 
 category are presumed to be prevented from obtaining or 
 retaining employment. 

    A caregiver who is exempt under clause (5) must enroll in 
 and attend an early childhood and family education class, a 
 parenting class, or some similar activity, if available, during 
 the period of time the caregiver is exempt under this section.  
 Notwithstanding section 256J.46, failure to attend the required 
 activity shall not result in the imposition of a sanction. 

    (b) The county agency must provide employment and training 
 services to MFIP participants who are exempt under this section, 
 but who volunteer to participate.  Exempt volunteers may request 
 approval for any work activity under section 256J.49, 
 subdivision 13.  The hourly participation requirements for 
 nonexempt participants under section 256J.50, subdivision 5, do 
 not apply to exempt participants who volunteer to participate. 

    HIST: 1997 c 85 art 1 s 47; 1998 c 407 art 6 s 103; 1999 c 245 
 art 6 s 70; 2000 c 488 art 10 s 21; 1Sp2001 c 9 art 10 s 46 

     256J.57 Good cause; failure to comply; notice; 
  conciliation conference. 

    Subdivision 1.    Good cause for failure to comply.  The 
 county agency shall not impose the sanction under section 
 256J.46 if it determines that the participant has good cause for 
 failing to comply with the requirements of sections 256J.52 to 
 256J.55.  Good cause exists when: 

    (1) appropriate child care is not available; 

    (2) the job does not meet the definition of suitable 
 employment; 

    (3) the participant is ill or injured; 

    (4) a member of the assistance unit, a relative in the 
 household, or a foster child in the household is ill and needs 
 care by the participant that prevents the participant from 
 complying with the job search support plan or employment plan; 

    (5) the parental caregiver is unable to secure necessary 
 transportation; 

    (6) the parental caregiver is in an emergency situation 
 that prevents compliance with the job search support plan or 
 employment plan; 

    (7) the schedule of compliance with the job search support 
 plan or employment plan conflicts with judicial proceedings; 

    (8) a mandatory MFIP meeting is scheduled during a time 
 that conflicts with a judicial proceeding or a meeting related 
 to a juvenile court matter, or a participant's work schedule; 

    (9) the parental caregiver is already participating in 
 acceptable work activities; 

    (10) the employment plan requires an educational program 
 for a caregiver under age 20, but the educational program is not 
 available; 

    (11) activities identified in the job search support plan 
 or employment plan are not available; 

    (12) the parental caregiver is willing to accept suitable 
 employment, but suitable employment is not available; or 

    (13) the parental caregiver documents other verifiable 
 impediments to compliance with the job search support plan or 
 employment plan beyond the parental caregiver's control. 

    The job counselor shall work with the participant to 
 reschedule mandatory meetings for individuals who fall under 
 clauses (1), (3), (4), (5), (6), (7), and (8). 

    Subd. 2.    Notice of intent to sanction.  (a) When a 
 participant fails without good cause to comply with the 
 requirements of sections 256J.52 to 256J.55, the job counselor 
 or the county agency must provide a notice of intent to sanction 
 to the participant specifying the program requirements that were 
 not complied with, informing the participant that the county 
 agency will impose the sanctions specified in section 256J.46, 
 and informing the participant of the opportunity to request a 
 conciliation conference as specified in paragraph (b).  The 
 notice must also state that the participant's continuing 
 noncompliance with the specified requirements will result in 
 additional sanctions under section 256J.46, without the need for 
 additional notices or conciliation conferences under this 
 subdivision.  The notice, written in English, must include the 
 department of human services language block, and must be sent to 
 every applicable participant.  If the participant does not 
 request a conciliation conference within ten calendar days of 
 the mailing of the notice of intent to sanction, the job 
 counselor must notify the county agency that the assistance 
 payment should be reduced.  The county must then send a notice 
 of adverse action to the participant informing the participant 
 of the sanction that will be imposed, the reasons for the 
 sanction, the effective date of the sanction, and the 
 participant's right to have a fair hearing under section 256J.40.

    (b) The participant may request a conciliation conference 
 by sending a written request, by making a telephone request, or 
 by making an in-person request.  The request must be received 
 within ten calendar days of the date the county agency mailed 
 the ten-day notice of intent to sanction.  If a timely request 
 for a conciliation is received, the county agency's service 
 provider must conduct the conference within five days of the 
 request.  The job counselor's supervisor, or a designee of the 
 supervisor, must review the outcome of the conciliation 
 conference.  If the conciliation conference resolves the 
 noncompliance, the job counselor must promptly inform the county 
 agency and request withdrawal of the sanction notice. 

    (c) Upon receiving a sanction notice, the participant may 
 request a fair hearing under section 256J.40, without exercising 
 the option of a conciliation conference.  In such cases, the 
 county agency shall not require the participant to engage in a 
 conciliation conference prior to the fair hearing. 

    (d) If the participant requests a fair hearing or a 
 conciliation conference, sanctions will not be imposed until 
 there is a determination of noncompliance.  Sanctions must be 
 imposed as provided in section 256J.46. 

    HIST: 1997 c 85 art 1 s 48; 1998 c 407 art 6 s 104; 1999 c 245 
 art 6 s 71; 1Sp2001 c 9 art 10 s 47 

     256J.61 Reporting requirements. 

    The commissioner of human services, in cooperation with the 
 commissioner of economic security, shall develop reporting 
 requirements for county agencies and employment and training 
 service providers according to section 256.01, subdivision 2, 
 paragraph (17).  Reporting requirements must, to the extent 
 possible, use existing client tracking systems and must be 
 within the limits of funds available.  The requirements must 
 include summary information necessary for state agencies and the 
 legislature to evaluate the effectiveness of the services. 

    HIST: 1997 c 85 art 1 s 49 

     256J.62 Allocation of county employment and training 
  services block grant. 

    Subdivision 1.    Allocation.  Money appropriated for 
 MFIP employment and training services must be allocated to 
 counties and eligible tribal providers as specified in this 
 section. 

    Subd. 2. Repealed, 1999 c 245 art 6 s 89 

    Subd. 2a.    Caseload-based funds allocation.  Effective 
 for state fiscal year 2000, and for all subsequent years, money 
 shall be allocated to counties and eligible tribal providers 
 based on their average number of MFIP cases as a proportion of 
 the statewide total number of MFIP cases:  

    (1) the average number of cases must be based upon counts 
 of MFIP or tribal TANF cases as of March 31, June 30, September 
 30, and December 31 of the previous calendar year, less the 
 number of child only cases and cases where all the caregivers 
 are age 60 or over.  Two-parent cases, with the exception of 
 those with a caregiver age 60 or over, will be multiplied by a 
 factor of two; 

    (2) the MFIP or tribal TANF case count for each eligible 
 tribal provider shall be based upon the number of MFIP or tribal 
 TANF cases who are enrolled in, or are eligible for enrollment 
 in the tribe; and the case must be an active MFIP case; and the 
 case members must reside within the tribal program's service 
 delivery area; and 

    (3) MFIP or tribal TANF cases counted for determining 
 allocations to tribal providers shall be removed from the case 
 counts of the respective counties where they reside to prevent 
 duplicate counts. 

    Subd. 3. Repealed, 1999 c 245 art 6 s 89 

    Subd. 4.    Administrative activities limit.  No more 
 than 15 percent of the money allocated under this section may be 
 used for administrative activities. 

    Subd. 5. Repealed, 1999 c 159 s 154; 1999 c 245 art 6 s 
 89 

    Subd. 6.    Bilingual employment and training services to 
 refugees.  Funds appropriated to cover the costs of bilingual 
 employment and training services to refugees shall be allocated 
 to county agencies based on the county's proportion of the total 
 statewide number of MFIP refugee cases in the previous fiscal 
 year.  Counties with less than one percent of the statewide 
 number of MFIP refugee cases shall not receive an allocation of 
 bilingual employment and training services funds. 

    Subd. 7.    Work literacy language programs.  Funds 
 appropriated to cover the costs of work literacy language 
 programs to non-English-speaking recipients shall be allocated 
 to county agencies based on the county's proportion of the total 
 statewide number of MFIP cases in the previous fiscal year where 
 the lack of English is a barrier to employment.  Counties with 
 less than two percent of the statewide number of MFIP cases 
 where the lack of English is a barrier to employment shall not 
 receive an allocation of the work literacy language program 
 funds. 

    Subd. 8.    Reallocation.  The commissioner of human 
 services shall review county agency expenditures of MFIP 
 employment and training services funds at the end of the third 
 quarter of the first year of the biennium and each quarter after 
 that and may reallocate unencumbered or unexpended money 
 appropriated under this section to those county agencies that 
 can demonstrate a need for additional money. 

    Subd. 9.    Continuation of certain services.  At the 
 request of the participant, the county may continue to provide 
 case management, counseling, or other support services to a 
 participant: 

    (a) who has achieved the employment goal; or 

    (b) who under section 256J.42 is no longer eligible to 
 receive MFIP. 

    These services may be provided for up to 12 months 
 following termination of the participant's eligibility for MFIP. 

    HIST: 1997 c 85 art 1 s 50; 1999 c 159 s 90-92; 1999 c 245 art 
 6 s 72-77; 2000 c 260 s 97; 1Sp2001 c 9 art 10 s 48,49 

     256J.625 Local intervention grants for self-sufficiency. 

    Subdivision 1.    Establishment; guaranteed minimum 
 allocation.  (a) The commissioner shall make grants under this 
 subdivision to assist county and tribal TANF programs to more 
 effectively serve hard-to-employ MFIP participants and 
 participants who, within the last 12 months, have been 
 determined under section 256J.42 to no longer be eligible to 
 receive MFIP but whose income is below 120 percent of the 
 federal poverty guidelines for a family of the same size.  Funds 
 appropriated for local intervention grants for self-sufficiency 
 must be allocated first in amounts equal to the guaranteed 
 minimum in paragraph (b), and second according to the provisions 
 of subdivision 2.  Any remaining funds must be allocated 
 according to the formula in subdivision 3.  Counties or tribes 
 must have an approved local service unit plan under section 
 256J.50, subdivision 7, paragraph (b), in order to receive and 
 expend funds under subdivisions 2 and 3.  

    (b) Each county or tribal program shall receive a 
 guaranteed minimum annual allocation of $25,000. 

    Subd. 2.    Set-aside funds.  (a) Of the funds 
 appropriated for grants under this section, after the allocation 
 in subdivision 1, paragraph (b), is made, 20 percent of the 
 remaining funds each year shall be retained by the commissioner 
 and awarded to counties or tribes whose approved plans 
 demonstrate additional need based on their identification of 
 hard-to-employ families, working participants in need of job 
 retention and wage advancement services, and participants who, 
 within the last 12 months, have been determined under section 
 256J.42 to no longer be eligible to receive MFIP but whose 
 income is below 120 percent of the federal poverty guidelines 
 for a family of the same size, strong anticipated outcomes for 
 families and an effective plan for monitoring performance, or, 
 use of a multicounty, multi-entity or regional approach to serve 
 hard-to-employ families, working participants in need of job 
 retention and wage advancement services, and participants who, 
 within the last 12 months, have been determined under section 
 256J.42 to no longer be eligible to receive MFIP but whose 
 income is below 120 percent of the federal poverty guidelines 
 for a family of the same size, who are identified as a target 
 population to be served in the plan submitted under section 
 256J.50, subdivision 7, paragraph (b).  In distributing funds 
 under this paragraph, the commissioner must achieve a geographic 
 balance.  The commissioner may award funds under this paragraph 
 to other public, private, or nonprofit entities to deliver 
 services in a county or region where the entity or entities 
 submit a plan that demonstrates a strong capability to fulfill 
 the terms of the plan and where the plan shows an innovative or 
 multi-entity approach. 

    (b) For fiscal year 2001 only, of the funds available under 
 this subdivision the commissioner must allocate funding in the 
 amounts specified in article 1, section 2, subdivision 7, for an 
 intensive intervention transitional employment training project 
 and for nontraditional career assistance and training programs.  
 These allocations must occur before any set-aside funds are 
 allocated under paragraph (a). 

    Subd. 2a.    Alternative distribution formula.  (a) By 
 January 31, 2001, the commissioner of human services must 
 develop and present to the appropriate legislative committees a 
 distribution formula that is an alternative to the formula 
 allocation specified in subdivision 3.  The proposed 
 distribution formula must target hard-to-employ MFIP 
 participants, and it must include an incentive-based component 
 that is designed to encourage county and tribal programs to 
 effectively serve hard-to-employ participants.  The 
 commissioner's proposal must also be designed to be implemented 
 for fiscal years 2002 and 2003 in place of the formula 
 allocation specified in subdivision 3. 

    (b) Notwithstanding the provisions of subdivision 2, 
 paragraph (a), if the commissioner does not develop a proposed 
 formula as required in paragraph (a), the set-aside funds for 
 fiscal years 2002 and 2003 that the commissioner would otherwise 
 distribute under subdivision 2, paragraph (a), must not be 
 distributed under that provision.  Funds available under 
 subdivision 2, paragraph (a), must instead be allocated in equal 
 amounts to each county and tribal program in fiscal years 2002 
 and 2003. 

    Subd. 3.    Formula allocation.  Funds remaining after 
 the allocations in subdivisions 1 and 2 must be allocated as 
 follows: 

    (1) 85 percent shall be allocated in proportion to each 
 county's and tribal TANF program's one-parent MFIP cases that 
 have received MFIP assistance for at least 25 months, as sampled 
 on December 31 of the previous calendar year, excluding cases 
 where all caregivers are age 60 or over. 

    (2) 15 percent shall be allocated to each county's and 
 tribal TANF program's two-parent MFIP cases that have received 
 MFIP assistance for at least 25 months, as sampled on December 
 31 of the previous calendar year, excluding cases where all 
 caregivers are age 60 or over. 

    Subd. 4.    Use of funds.  (a) A county or tribal 
 program may use funds allocated under this subdivision to 
 provide services to MFIP participants who are hard-to-employ and 
 their families.  Services provided must be intended to reduce 
 the number of MFIP participants who are expected to reach the 
 60-month time limit under section 256J.42.  Counties, tribes, 
 and other entities receiving funds under subdivision 2 or 3 must 
 submit semiannual progress reports to the commissioner which 
 detail program outcomes. 

    (b) Funds allocated under this section may not be used to 
 provide benefits that are defined as "assistance" in Code of 
 Federal Regulations, title 45, section 260.31, to an assistance 
 unit that is only receiving the food portion of MFIP benefits or 
 under section 256J.42 is no longer eligible to receive MFIP. 

    (c) A county may use funds allocated under this section for 
 that part of the match for federal access to jobs transportation 
 funds that is TANF-eligible.  A county may also use funds 
 allocated under this section to enhance transportation choices 
 for eligible recipients up to 150 percent of the federal poverty 
 guidelines. 

    Subd. 5.    Sunset.  The grant program under this 
 section sunsets on June 30, 2003. 

    HIST: 2000 c 488 art 10 s 22; 1Sp2001 c 9 art 10 s 50-52 

     256J.645 Indian tribe MFIP employment services. 

    Subdivision 1.    Authorization to enter into agreements. 
  Effective July 1, 1997, the commissioner may enter into 
 agreements with federally recognized Indian tribes with a 
 reservation in the state to provide MFIP employment services to 
 members of the Indian tribe and to other caregivers who are a 
 part of the tribal member's MFIP assistance unit.  For purposes 
 of this section, "Indian tribe" means a tribe, band, nation, or 
 other federally recognized group or community of Indians.  The 
 commissioner may also enter into an agreement with a consortium 
 of Indian tribes providing the governing body of each Indian 
 tribe in the consortium complies with the provisions of this 
 section. 

    Subd. 2.    Tribal requirements.  The Indian tribe must: 

    (1) agree to fulfill the responsibilities provided under 
 the employment services component of MFIP regarding operation of 
 MFIP employment services, as designated by the commissioner; 

    (2) operate its employment services program within a 
 geographic service area not to exceed the counties within which 
 a border of the reservation falls; 

    (3) operate its program in conformity with section 13.46 
 and any applicable federal regulations in the use of data about 
 MFIP recipients; 

    (4) coordinate operation of its program with the county 
 agency, Workforce Investment Act programs, and other support 
 services or employment-related programs in the counties in which 
 the tribal unit's program operates; 

    (5) provide financial and program participant activity 
 recordkeeping and reporting in the manner and using the forms 
 and procedures specified by the commissioner and permit 
 inspection of its program and records by representatives of the 
 state; and 

    (6) have the Indian tribe's employment service provider 
 certified by the commissioner of economic security, or approved 
 by the county. 

    Subd. 3.    Funding.  If the commissioner and an Indian 
 tribe are parties to an agreement under this subdivision, the 
 agreement shall annually provide to the Indian tribe the funding 
 allocated in section 256J.62, subdivisions 1 and 2a. 

    Subd. 4.    County agency requirement.  Indian tribal 
 members receiving MFIP benefits and residing in the service area 
 of an Indian tribe operating employment services under an 
 agreement with the commissioner must be referred by county 
 agencies in the service area to the Indian tribe for employment 
 services. 

    HIST: 1997 c 85 art 1 s 51; 1998 c 407 art 6 s 105; 1Sp2001 c 
 9 art 10 s 53 

     256J.65 The self-employment investment demonstration 
  program (SEID). 

    (a) A caregiver who enrolls and participates in the SEID 
 program as specified in section 268.95, may, at county option, 
 be exempted from other employment and training participation 
 requirements for a period of up to 24 months, except for the 
 school attendance requirements as specified in section 256J.54.  

    (b) The following income and resource considerations apply 
 to SEID participants:  

    (1) an unencumbered cash reserve fund, composed of proceeds 
 from a SEID business, is not counted against the grant if those 
 funds are reinvested in the business and the value of the 
 business does not exceed $3,000.  The value of the business is 
 determined by deducting outstanding encumbrances from retained 
 business profit; and 

    (2) the purchase of capital equipment and durable goods of 
 an amount up to $3,000 during a 24-month project period is 
 allowed as a business expense. 

    (c) SEID participants with a county-approved employment 
 plan are also eligible for employment and training services, 
 including child care and transportation. 

    HIST: 1997 c 85 art 1 s 52 

     256J.655 Nontraditional career assistance and training. 

    With the approval of the job counselor, a participant may 
 enroll and participate in a nontraditional career assistance and 
 training (NCAT) program under section 256K.30.  An MFIP 
 recipient participating in an NCAT program with the approval of 
 the job counselor is also eligible for employment and training 
 services, including child care and transportation. 

    HIST: 2000 c 488 art 10 s 23 

     256J.66 On-the-job training. 

    Subdivision 1.    Establishing the on-the-job training 
 program.  (a) County agencies may develop on-the-job training 
 programs for MFIP-S caregivers who are participating in 
 employment and training services.  A county agency that chooses 
 to provide on-the-job training may make payments to employers 
 for on-the-job training costs that, during the period of the 
 training, must not exceed 50 percent of the wages paid by the 
 employer to the participant.  The payments are deemed to be in 
 compensation for the extraordinary costs associated with 
 training participants under this section and in compensation for 
 the costs associated with the lower productivity of the 
 participants during training. 

    (b) Provision of an on-the-job training program under the 
 Job Training Partnership Act, in and of itself, does not qualify 
 as an on-the-job training program under this section. 

    (c) Participants in on-the-job training shall be 
 compensated by the employer at the same rates, including 
 periodic increases, as similarly situated employees or trainees 
 and in accordance with applicable law, but in no event less than 
 the federal or applicable state minimum wage, whichever is 
 higher. 

    Subd. 2.    Training and placement.  (a) County agencies 
 shall limit the length of training based on the complexity of 
 the job and the caregiver's previous experience and training.  
 Placement in an on-the-job training position with an employer is 
 for the purpose of training and employment with the same 
 employer who has agreed to retain the person upon satisfactory 
 completion of training. 

    (b) Placement of any participant in an on-the-job training 
 position must be compatible with the participant's assessment 
 and employment plan under section 256J.52. 

    HIST: 1997 c 85 art 1 s 53 

     256J.67 Community work experience. 

    Subdivision 1.    Establishing the community work 
 experience program.  To the extent of available resources, 
 each county agency may establish and operate a work experience 
 component for MFIP-S caregivers who are participating in 
 employment and training services.  This option for county 
 agencies supersedes the requirement in section 402(a)(1)(B)(iv) 
 of the Social Security Act that caregivers who have received 
 assistance for two months and who are not exempt from work 
 requirements must participate in a work experience program.  The 
 purpose of the work experience component is to enhance the 
 caregiver's employability and self-sufficiency and to provide 
 meaningful, productive work activities.  The county shall use 
 this program for an individual after exhausting all other 
 employment opportunities.  The county agency shall not require a 
 caregiver to participate in the community work experience 
 program unless the caregiver has been given an opportunity to 
 participate in other work activities.  

    Subd. 2.    Commissioner's duties.  The commissioner 
 shall assist counties in the design and implementation of these 
 components.  

    Subd. 3.    Employment options.  (a) Work sites 
 developed under this section are limited to projects that serve 
 a useful public service such as:  health, social service, 
 environmental protection, education, urban and rural development 
 and redevelopment, welfare, recreation, public facilities, 
 public safety, community service, services to aged or disabled 
 citizens, and child care.  To the extent possible, the prior 
 training, skills, and experience of a caregiver must be 
 considered in making appropriate work experience assignments. 

    (b) Structured, supervised volunteer work with an agency or 
 organization, which is monitored by the county service provider, 
 may, with the approval of the county agency, be used as a work 
 experience placement. 

    (c) As a condition of placing a caregiver in a program 
 under this section, the county agency shall first provide the 
 caregiver the opportunity: 

    (1) for placement in suitable subsidized or unsubsidized 
 employment through participation in a job search; or 

    (2) for placement in suitable employment through 
 participation in on-the-job training, if such employment is 
 available. 

    Subd. 4.    Employment plan.  (a) The caretaker's 
 employment plan must include the length of time needed in the 
 work experience program, the need to continue job-seeking 
 activities while participating in work experience, and the 
 caregiver's employment goals. 

    (b) After each six months of a caregiver's participation in 
 a work experience job placement, and at the conclusion of each 
 work experience assignment under this section, the county agency 
 shall reassess and revise, as appropriate, the caregiver's 
 employment plan. 

    (c) A caregiver may claim good cause under section 256J.57, 
 subdivision 1, for failure to cooperate with a work experience 
 job placement.  

    (d) The county agency shall limit the maximum number of 
 hours any participant may work under this section to the amount 
 of the MFIP standard of need divided by the federal or 
 applicable state minimum wage, whichever is higher.  After a 
 participant has been assigned to a position for nine months, the 
 participant may not continue in that assignment unless the 
 maximum number of hours a participant works is no greater than 
 the amount of the MFIP standard of need divided by the rate of 
 pay for individuals employed in the same or similar occupations 
 by the same employer at the same site.  This limit does not 
 apply if it would prevent a participant from counting toward the 
 federal work participation rate. 

    HIST: 1997 c 85 art 1 s 54; 1999 c 245 art 6 s 78 

     256J.68 Injury protection for work experience 
  participants. 

    Subdivision 1.    Applicability.  (a) This section must 
 be used to determine payment of any claims resulting from an 
 alleged injury or death of a person participating in a county or 
 a tribal community work experience program that is approved by 
 the commissioner and is operated by: 

    (i) the county agency; 

    (ii) the tribe; 

    (iii) a department of the state; or 

    (iv) a community-based organization under contract, prior 
 to April 1, 1997, with a county agency to provide a community 
 work experience program or a food stamp community work 
 experience program, provided the organization has not 
 experienced any individual injury loss or claim greater than 
 $1,000. 

    (b) This determination method is available to the 
 community-based organization under paragraph (a), clause (iv), 
 only for claims incurred by participants in the community work 
 experience program or the food stamp community work experience 
 program. 

    (c) This determination method applies to work experience 
 programs authorized by the commissioner for persons applying for 
 or receiving cash assistance and food stamps, and to the 
 Minnesota parent's fair share program and the community service 
 program under section 518.551, subdivision 5a, in a county with 
 an approved community investment program for obligors. 

    Subd. 2.    Investigation of the claim.  Claims that are 
 subject to this section must be investigated by the county 
 agency or the tribal program responsible for supervising the 
 work to determine whether the claimed injury occurred, whether 
 the claimed medical expenses are reasonable, and whether the 
 loss is covered by the claimant's insurance.  If insurance 
 coverage is established, the county agency or tribal program 
 shall submit the claim to the appropriate insurance entity for 
 payment.  The investigating county agency or tribal program 
 shall submit all valid claims, in the amount net of any 
 insurance payments, to the department of human services. 

    Subd. 3.    Submission of claim.  The commissioner shall 
 submit all claims for permanent partial disability compensation 
 to the commissioner of labor and industry.  The commissioner of 
 labor and industry shall review all submitted claims and 
 recommend to the department of human services an amount of 
 compensation comparable to that which would be provided under 
 the permanent partial disability compensation schedule of 
 section 176.101, subdivision 2a. 

    Subd. 4.    Claims less than $1,000.  The commissioner 
 shall approve a claim of $1,000 or less for payment if 
 appropriated funds are available, if the county agency or tribal 
 program responsible for supervising the work has made the 
 determinations required by this section, and if the work program 
 was operated in compliance with the safety provisions of this 
 section.  The commissioner shall pay the portion of an approved 
 claim of $1,000 or less that is not covered by the claimant's 
 insurance within three months of the date of submission.  On or 
 before February 1 of each year, the commissioner shall submit to 
 the appropriate committees of the senate and the house of 
 representatives a list of claims of $1,000 or less paid during 
 the preceding calendar year and shall be reimbursed by 
 legislative appropriation for any claims that exceed the 
 original appropriation provided to the commissioner to operate 
 this program.  Any unspent money from this appropriation shall 
 carry over to the second year of the biennium, and any unspent 
 money remaining at the end of the second year shall be returned 
 to the state general fund. 

    Subd. 5.    Claims more than $1,000.  On or before 
 February 1 of each year, the commissioner shall submit to the 
 appropriate committees of the senate and the house of 
 representatives a list of claims in excess of $1,000 and a list 
 of claims of $1,000 or less that were submitted to but not paid 
 by the commissioner, together with any recommendations of 
 appropriate compensation.  These claims shall be heard and 
 determined by the appropriate committees of the senate and house 
 of representatives and, if approved, must be paid under the 
 legislative claims procedure. 

    Subd. 6.    Compensation for certain costs.  
 Compensation paid under this section is limited to reimbursement 
 for reasonable medical expenses and permanent partial disability 
 compensation for disability in like amounts as allowed in 
 section 176.101, subdivision 2a.  Compensation for injuries 
 resulting in death shall include reasonable medical expenses and 
 burial expenses in addition to payment to the participant's 
 estate in an amount up to $200,000.  No compensation shall be 
 paid under this section for pain and suffering, lost wages, or 
 other benefits provided in chapter 176.  Payments made under 
 this section shall be reduced by any proceeds received by the 
 claimant from any insurance policy covering the loss.  For the 
 purposes of this section, "insurance policy" does not include 
 the medical assistance program authorized under chapter 256B or 
 the general assistance medical care program authorized under 
 chapter 256D. 

    Subd. 7.    Exclusive procedure.  The procedure 
 established by this section is exclusive of all other legal, 
 equitable, and statutory remedies against the state, its 
 political subdivisions, or employees of the state or its 
 political subdivisions.  The claimant shall not be entitled to 
 seek damages from any state, county, tribal, or reservation 
 insurance policy or self-insurance program. 

    Subd. 8.    Invalid claims.  A claim is not valid for 
 purposes of this section if the county agency responsible for 
 supervising the work cannot verify to the commissioner: 

    (1) that appropriate safety training and information is 
 provided to all persons being supervised by the agency under 
 this section; and 

    (2) that all programs involving work by those persons 
 comply with federal Occupational Safety and Health 
 Administration and state department of labor and industry safety 
 standards.  A claim that is not valid because of failure to 
 verify safety training or compliance with safety standards will 
 not be paid by the department of human services or through the 
 legislative claims process and must be heard, decided, and paid, 
 if appropriate, by the local government unit or tribal program 
 responsible for supervising the work of the claimant. 

    HIST: 1997 c 85 art 1 s 55 

     256J.69 Grant diversion. 

    Subdivision 1.    Establishing the grant diversion 
 program.  (a) County agencies may develop grant diversion 
 programs for MFIP-S participants participating in employment and 
 training services.  A county agency that chooses to provide 
 grant diversion may divert to an employer part or all of the 
 MFIP-S cash payment for the participant's assistance unit, in 
 compliance with federal regulations and laws.  Such payments to 
 an employer are to subsidize employment for MFIP-S participants 
 as an alternative to public assistance payments. 

    (b) In addition to diverting the MFIP-S grant to the 
 employer, employment and training funds may be used to subsidize 
 the grant diversion placement. 

    (c) Participants in grant diversion shall be compensated by 
 the employer at the same rates, including periodic increases, as 
 similarly situated employees or trainees and in accordance with 
 applicable law, but in no event less than the federal or 
 applicable state minimum wage, whichever is higher. 

    Subd. 2.    Training and placement.  (a) County agencies 
 shall limit the length of training to nine months.  Placement in 
 a grant diversion training position with an employer is for the 
 purpose of training and employment with the same employer who 
 has agreed to retain the person upon satisfactory completion of 
 training. 

    (b) Placement of any participant in a grant diversion 
 subsidized training position must be compatible with the 
 assessment and employment plan or employability development plan 
 established for the recipient under section 256J.52 or 256K.03, 
 subdivision 8. 

    HIST: 1997 c 85 art 1 s 56 

     256J.72 Nondisplacement in work activities. 

    Subdivision 1.    Nondisplacement protection.  For job 
 assignments under jobs programs established under this chapter 
 or chapter 256, 256D, or 256K, the county agency must provide 
 written notification to and obtain the written concurrence of 
 the appropriate exclusive bargaining representatives with 
 respect to job duties covered under collective bargaining 
 agreements and ensure that no work assignment under this chapter 
 or chapter 256, 256D, or 256K results in: 

    (1) termination, layoff, or reduction of the work hours of 
 an employee for the purpose of hiring an individual under this 
 section; 

    (2) the hiring of an individual if any other person is on 
 layoff, including seasonal layoff, from the same or a 
 substantially equivalent job; 

    (3) any infringement of the promotional opportunities of 
 any currently employed individual; 

    (4) the impairment of existing contract for services of 
 collective bargaining agreements; or 

    (5) a participant filling an established unfilled position 
 vacancy, except for on-the-job training. 

    The written notification must be provided to the 
 appropriate exclusive bargaining representatives at least 14 
 days in advance of placing recipients in temporary public 
 service employment.  The notice must include the number of 
 individuals involved, their work locations and anticipated hours 
 of work, a summary of the tasks to be performed, and a 
 description of how the individuals will be trained and 
 supervised. 

    Subd. 2.    Dispute resolution.  (a) If there is a 
 dispute between an exclusive bargaining representative and a 
 county provider or employer over whether job duties are within 
 the scope of a collective bargaining unit, the exclusive 
 bargaining representative, the county, the provider, or the 
 employer may petition the bureau of mediation services to 
 determine if the job duties are within the scope of a collective 
 bargaining unit, and the bureau shall render a binding decision. 

    (b) In the event of a dispute under this section, the 
 parties may: 

    (1) use a grievance and arbitration procedure of an 
 existing collective bargaining agreement to process a dispute 
 over whether a violation of the nondisplacement provisions has 
 occurred; or 

    (2) if no grievance and arbitration procedure is in place, 
 either party may submit the dispute to the bureau.  The 
 commissioner of the bureau of mediation services shall establish 
 a procedure for a neutral, binding resolution of the dispute. 

    Subd. 3.    Status of participant.  A participant may 
 not work in a temporary public service or community service job 
 for a public employer for more than 67 working days or 536 
 hours, whichever is greater, as part of a work program 
 established under this chapter, or chapter 256, 256D, or 256K.  
 A participant who exceeds the time limits in this subdivision is 
 a public employee, as that term is used in chapter 179A.  Upon 
 the written request of the exclusive bargaining representative, 
 a county or public service employer shall make available to the 
 affected exclusive bargaining representative a report of hours 
 worked by participants in temporary public service or community 
 service jobs. 

    HIST: 1997 c 85 art 1 s 57 

     256J.74 Relationship to other programs. 

    Subdivision 1.    Social services.  The county agency 
 shall refer a participant for social services that are offered 
 in the county of financial responsibility according to the 
 criteria established by that county agency under Minnesota 
 Rules, parts 9550.0010 to 9550.0092.  A payment issued from 
 federal funds under title XX of the Social Security Act, state 
 funds under the Community Social Services Act, federal or state 
 child welfare funds, or county funds in a payment month must not 
 restrict MFIP-S eligibility or reduce the monthly assistance 
 payment for that participant. 

    Subd. 2.    Concurrent eligibility, limitations.  (a) An 
 individual whose needs have been otherwise provided for in 
 another state, in whole or in part by county, state, or federal 
 dollars during a month, is ineligible to receive MFIP for the 
 month.  

    (b) A county agency must not count an applicant or 
 participant as a member of more than one assistance unit in this 
 state in a given payment month, except as provided in clauses 
 (1) and (2). 

    (1) A participant who is a member of an assistance unit is 
 eligible to be included in a second assistance unit the month 
 after the month the participant joins the second unit. 

    (2) An applicant whose needs are met through federal, 
 state, or local foster care payments for the first part of an 
 application month is eligible to receive assistance for the 
 remaining part of the month in which the applicant returns 
 home.  Foster care payments must be considered prorated payments 
 rather than a duplication of MFIP need. 

    Subd. 3.    Emergency assistance, assistance unit with a 
 minor child.  An MFIP-S assistance unit with a minor child or 
 a pregnant woman without a minor child is eligible for emergency 
 assistance when the assistance unit meets the requirements in 
 section 256J.48, subdivision 2. 

    Subd. 4.    Medical assistance.  Medical assistance 
 eligibility for MFIP-S participants shall be determined as 
 described in chapter 256B. 

    Subd. 5.    Food stamps.  For any month an individual 
 receives Food Stamp Program benefits, the individual is not 
 eligible for the MFIP-S food portion of assistance, except as 
 provided under section 256J.28, subdivision 5. 

    HIST: 1997 c 85 art 1 s 58; 1998 c 407 art 6 s 106,107; 1999 c 
 245 art 6 s 79 

     256J.75 County of financial responsibility policies. 

    Subdivision 1.    County of financial responsibility.  
 The county of financial responsibility is the county in which a 
 minor child or pregnant woman lives on the date the application 
 is signed, unless subdivision 4 applies.  When more than one 
 county is financially responsible for the members of an 
 assistance unit, financial responsibility must be assigned to a 
 single county beginning the first day of the calendar month 
 after the assistance unit members are required to be in a single 
 assistance unit.  Financial responsibility must be assigned to 
 the county that was initially responsible for the assistance 
 unit member with the earliest date of application.  The county 
 in which the assistance unit is currently residing becomes 
 financially responsible for the entire assistance unit beginning 
 two full calendar months after the month in which financial 
 responsibility was consolidated in one county. 

    Subd. 2.    Change in residence.  (a) When an assistance 
 unit moves from one county to another and continues to receive 
 assistance, the new county of residence becomes the county of 
 financial responsibility when that assistance unit has lived in 
 that county in nonexcluded status for two full calendar months.  
 "Nonexcluded status" means the period of residence that is not 
 considered excluded time under section 256G.02, subdivision 6.  
 When a minor child moves from one county to another to reside 
 with a different caregiver, the caregiver in the former county 
 is eligible to receive assistance for that child only through 
 the last day of the month of the move.  The caregiver in the new 
 county becomes eligible to receive assistance for the child the 
 first day of the month following the move or the date of 
 application, whichever is later. 

    (b) When an applicant moves from one county to another 
 while the application is pending, the county where application 
 first occurred is the county of financial responsibility until 
 the applicant has lived in the new county for two full calendar 
 months, unless the applicant's move is covered under section 
 256G.02, subdivision 6. 

    Subd. 3.    Responsibility for incorrect assistance 
 payments.  A county of residence, when different from the 
 county of financial responsibility, will be charged by the 
 commissioner for the value of incorrect assistance payments and 
 medical assistance paid to or on behalf of a person who was not 
 eligible to receive that amount.  Incorrect payments include 
 payments to an ineligible person or family resulting from 
 decisions, failures to act, miscalculations, or overdue 
 recertification.  However, financial responsibility does not 
 accrue for a county when the recertification is overdue at the 
 time the referral is received by the county of residence or when 
 the county of financial responsibility does not act on the 
 recommendation of the county of residence.  When federal or 
 state law requires that medical assistance continue after 
 assistance ends, this subdivision also governs financial 
 responsibility for the extended medical assistance. 

    Subd. 4.    Excluded time.  When an applicant or 
 participant resides in an excluded time facility as described in 
 section 256G.02, subdivision 6, the county that is financially 
 responsible for the applicant or participant is the county in 
 which the applicant or participant last resided outside such a 
 facility immediately before entering the facility.  When an 
 applicant or participant has not resided in this state for any 
 time other than excluded time as defined in section 256G.02, 
 subdivision 6, the county that is financially responsible for 
 the applicant or participant is the county in which the 
 applicant or participant resides on the date the application is 
 signed. 

    HIST: 1997 c 85 art 1 s 59 

     256J.751 County performance management. 

    Subdivision 1.    Quarterly county caseload report.  The 
 commissioner shall report quarterly to each county on the 
 county's performance on the following measures: 

    (1) number of cases receiving only the food portion of 
 assistance; 

    (2) number of child-only cases; 

    (3) number of minor caregivers; 

    (4) number of cases that are exempt from the 60-month time 
 limit by the exemption category under section 256J.42; 

    (5) number of participants who are exempt from employment 
 and training services requirements by the exemption category 
 under section 256J.56; 

    (6) number of assistance units receiving assistance under a 
 hardship extension under section 256J.425; 

    (7) number of participants and number of months spent in 
 each level of sanction under section 256J.46, subdivision 1; 

    (8) number of MFIP cases that have left assistance; 

    (9) federal participation requirements as specified in 
 title 1 of Public Law Number 104-193; 

    (10) median placement wage rate; and 

    (11) of each county's total MFIP caseload less the number 
 of cases in clauses (1) to (6): 

    (i) number of one-parent cases; 

    (ii) number of two-parent cases; 

    (iii) percent of one-parent cases that are working more 
 than 20 hours per week; 

    (iv) percent of two-parent cases that are working more than 
 20 hours per week; and 

    (v) percent of cases that have received more than 36 months 
 of assistance. 

    Subd. 2.    Quarterly comparison report.  The 
 commissioner shall report quarterly to all counties on each 
 county's performance on the following measures: 

    (1) percent of MFIP caseload working in paid employment; 

    (2) percent of MFIP caseload receiving only the food 
 portion of assistance; 

    (3) number of MFIP cases that have left assistance; 

    (4) federal participation requirements as specified in 
 Title 1 of Public Law Number 104-193; 

    (5) median placement wage rate; and 

    (6) caseload by months of TANF assistance. 

    Subd. 3.    Annual report.  The commissioner must report 
 to all counties and to the legislature on each county's annual 
 performance on the measures required under subdivision 1 by 
 racial and ethnic group and, to the extent consistent with state 
 and federal law, must include each county's performance on: 

    (1) the number of out-of-wedlock births and births to teen 
 mothers; and 

    (2) number of cases by racial and ethnic group. 

    The report must be completed by January 1, 2002, and 
 January 1 of each year thereafter and must comply with sections 
 3.195 and 3.197. 

    Subd. 4.    Development of performance measures.  By 
 January 1, 2002, the commissioner shall, in consultation with 
 counties, develop measures for county performance in addition to 
 those in subdivisions 1 and 2.  In developing these measures, 
 the commissioner must consider: 

    (1) a measure for MFIP cases that leave assistance due to 
 employment; 

    (2) job retention after participants leave MFIP; 

    (3) participant's earnings at a follow-up point after the 
 participant has left MFIP; and 

    (4) the appropriateness of services provided to minority 
 groups. 

    Subd. 5.    Failure to meet federal performance standards. 
  (a) If sanctions occur for failure to meet the performance 
 standards specified in title 1 of Public Law Number 104-193 of 
 the Personal Responsibility and Work Opportunity Act of 1996, 
 the state shall pay 88 percent of the sanction.  The remaining 
 12 percent of the sanction will be paid by the counties.  The 
 county portion of the sanction will be distributed across all 
 counties in proportion to each county's percentage of the MFIP 
 average monthly caseload during the period for which the 
 sanction was applied. 

    (b) If a county fails to meet the performance standards 
 specified in title 1 of Public Law Number 104-193 of the 
 Personal Responsibility and Work Opportunity Act of 1996 for any 
 year, the commissioner shall work with counties to organize a 
 joint state-county technical assistance team to work with the 
 county.  The commissioner shall coordinate any technical 
 assistance with other departments and agencies including the 
 departments of economic security and children, families, and 
 learning as necessary to achieve the purpose of this paragraph. 

    HIST: 1999 c 245 art 6 s 80; 1Sp2001 c 9 art 10 s 54 

     256J.76 County administrative aid. 

    Subdivision 1.    Administrative functions.  Beginning 
 July 1, 1997, counties will receive federal funds from the TANF 
 block grant for use in supporting eligibility, fraud control, 
 and other related administrative functions.  The federal funds 
 available for distribution, as determined by the commissioner, 
 must be an amount equal to federal administrative aid 
 distributed for fiscal year 1996 under titles IV-A and IV-F of 
 the Social Security Act in effect prior to October 1, 1996.  
 This amount must include the amount paid for local 
 collaboratives under sections 245.4932 and 256F.13, but must not 
 include administrative aid associated with child care under 
 section 119B.05, with emergency assistance intensive family 
 preservation services under section 256F.05, with administrative 
 activities as part of the employment and training services under 
 this chapter or chapter 256K, or with fraud prevention 
 investigation activities under section 256.983.  Before July 15, 
 1999, a county may ask for a review of the commissioner's 
 determination when the county believes fiscal year 1996 
 information was inaccurate or incomplete.  By August 15, 1999, 
 the commissioner must adjust that county's base when the 
 commissioner has determined that inaccurate or incomplete 
 information was used to develop that base.  The commissioner 
 shall adjust the county's 1999 allocation amount to reflect the 
 base change. 

    Subd. 2.    Allocation of county funds.  (a) The 
 commissioner shall determine and allocate the funds available to 
 each county, on a calendar year basis, proportional to the 
 amount paid to each county for fiscal year 1996, excluding the 
 amount paid for local collaboratives under sections 245.4932 and 
 256F.13.  For the period beginning July 1, 1997, and ending 
 December 31, 1998, each county shall receive 150 percent of its 
 base year allocation. 

    (b) Beginning January 1, 2000, the commissioner shall 
 allocate funds made available under this section on a calendar 
 year basis to each county first, in amounts equal to each 
 county's guaranteed floor as described in clause (1), second, to 
 provide an allocation of up to $2,000 to each county as provided 
 for in clause (2), and third, any remaining funds shall be 
 allocated in proportion to the sum of each county's average 
 monthly MFIP cases plus ten percent of each county's average 
 monthly MFIP recipients with budgeted earnings as determined by 
 the most recent calendar year data available. 

    (1) Each county's guaranteed floor shall be calculated as 
 follows: 

    (i) 90 percent of that county's allocation in the preceding 
 calendar year; or 

    (ii) when the amount of funds available is less than the 
 guaranteed floor, each county's allocation shall be equal to the 
 previous calendar year allocation reduced by the same percentage 
 that the statewide allocation was reduced. 

    (2) Each county shall be allocated up to $2,000.  If, after 
 application of the guaranteed floor, funds are insufficient to 
 provide $2,000 per county, each county's allocation under this 
 clause shall be an equal share of remaining funds available. 

    Subd. 3.    Monthly payments to counties.  The 
 commissioner shall pay counties monthly as federal funds are 
 available.  The commissioner may certify the payments for the 
 first three months of a calendar year. 

    Subd. 4.    Reporting requirement and reimbursement.  
 The commissioner shall specify requirements for reporting 
 according to section 256.01, subdivision 2, paragraph (17).  
 Each county shall be reimbursed at a rate of 50 percent of 
 eligible expenditures up to the limit of its allocation.  The 
 commissioner shall regularly review each county's eligible 
 expenditures compared to its allocation.  The commissioner may 
 reallocate funds at any time, from counties which have not or 
 will not have expended their allocations, to counties that have 
 eligible expenditures in excess of their allocation. 

    HIST: 1997 c 85 art 1 s 60; 1999 c 159 s 93; 1999 c 245 art 6 
 s 81-83 

     256J.77 Aging of cash benefits. 

    Cash benefits under chapters 256D, 256J, and 256K by 
 warrants or electronic benefit transfer that have not been 
 accessed within 90 days of issuance shall be canceled.  Cash 
 benefits may be replaced after they are canceled, for up to one 
 year after the date of issuance, if failure to do so would place 
 the client or family at risk.  For purposes of this section, 
 "accessed" means cashing a warrant or making at least one 
 withdrawal from benefits deposited in an electronic benefit 
 account. 

    HIST: 1998 c 407 art 6 s 108 

     256J.88 Child only TANF program. 

    Children who receive assistance under this chapter, in 
 which the assistance unit does not include a caregiver, but only 
 includes a minor child, shall become part of the program 
 established under this section. 

    HIST: 2000 c 488 art 10 s 24