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Chapter 256J

Section 256J.626

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256J.626 MFIP CONSOLIDATED FUND.
    Subdivision 1. Consolidated fund. The consolidated fund is established to support counties
and tribes in meeting their duties under this chapter. Counties and tribes must use funds from
the consolidated fund to develop programs and services that are designed to improve participant
outcomes as measured in section 256J.751, subdivision 2. Counties may use the funds for any
allowable expenditures under subdivision 2, including case management. Tribes may use the
funds for any allowable expenditures under subdivision 2, including case management, except
those in subdivision 2, paragraph (a), clauses (1) and (6).
    Subd. 2. Allowable expenditures. (a) The commissioner must restrict expenditures under the
consolidated fund to benefits and services allowed under title IV-A of the federal Social Security
Act. Allowable expenditures under the consolidated fund may include, but are not limited to:
    (1) short-term, nonrecurring shelter and utility needs that are excluded from the definition of
assistance under Code of Federal Regulations, title 45, section 260.31, for families who meet the
residency requirement in section 256J.12, subdivisions 1 and 1a. Payments under this subdivision
are not considered TANF cash assistance and are not counted towards the 60-month time limit;
    (2) transportation needed to obtain or retain employment or to participate in other approved
work activities or activities under a family stabilization plan;
    (3) direct and administrative costs of staff to deliver employment services for MFIP, the
diversionary work program, or family stabilization services; to administer financial assistance;
and to provide specialized services intended to assist hard-to-employ participants to transition to
work or transition from family stabilization services to MFIP;
    (4) costs of education and training including functional work literacy and English as a
second language;
    (5) cost of work supports including tools, clothing, boots, telephone service, and other
work-related expenses;
    (6) county administrative expenses as defined in Code of Federal Regulations, title 45,
section 260(b);
    (7) services to parenting and pregnant teens;
    (8) supported work;
    (9) wage subsidies;
    (10) child care needed for MFIP, the diversionary work program, or family stabilization
services participants to participate in social services;
    (11) child care to ensure that families leaving MFIP or diversionary work program will
continue to receive child care assistance from the time the family no longer qualifies for transition
year child care until an opening occurs under the basic sliding fee child care program;
    (12) services to help noncustodial parents who live in Minnesota and have minor children
receiving MFIP or DWP assistance, but do not live in the same household as the child, obtain
or retain employment; and
    (13) services to help families participating in family stabilization services achieve the
greatest possible degree of self-sufficiency.
    (b) Administrative costs that are not matched with county funds as provided in subdivision 8
may not exceed 7.5 percent of a county's or 15 percent of a tribe's allocation under this section.
The commissioner shall define administrative costs for purposes of this subdivision.
    (c) The commissioner may waive the cap on administrative costs for a county or tribe
that elects to provide an approved supported employment, unpaid work, or community work
experience program for a major segment of the county's or tribe's MFIP population. The county or
tribe must apply for the waiver on forms provided by the commissioner. In no case shall total
administrative costs exceed the TANF limits.
    Subd. 3. Eligibility for services. Families with a minor child, a pregnant woman, or a
noncustodial parent of a minor child receiving assistance, with incomes below 200 percent of
the federal poverty guideline for a family of the applicable size, are eligible for services funded
under the consolidated fund. Counties and tribes must give priority to families currently receiving
MFIP, the diversionary work program, or family stabilization services, and families at risk of
receiving MFIP or diversionary work program.
    Subd. 4. County and tribal biennial service agreements. (a) Effective January 1, 2004, and
each two-year period thereafter, each county and tribe must have in place an approved biennial
service agreement related to the services and programs in this chapter. In counties with a city of
the first class with a population over 300,000, the county must consider a service agreement that
includes a jointly developed plan for the delivery of employment services with the city. Counties
may collaborate to develop multicounty, multitribal, or regional service agreements.
    (b) The service agreements will be completed in a form prescribed by the commissioner.
The agreement must include:
    (1) a statement of the needs of the service population and strengths and resources in the
community;
    (2) numerical goals for participant outcomes measures to be accomplished during the
biennial period. The commissioner may identify outcomes from section 256J.751, subdivision 2,
as core outcomes for all counties and tribes;
    (3) strategies the county or tribe will pursue to achieve the outcome targets. Strategies must
include specification of how funds under this section will be used and may include community
partnerships that will be established or strengthened;
    (4) strategies the county or tribe will pursue under family stabilization services; and
    (5) other items prescribed by the commissioner in consultation with counties and tribes.
    (c) The commissioner shall provide each county and tribe with information needed to
complete an agreement, including: (1) information on MFIP cases in the county or tribe; (2)
comparisons with the rest of the state; (3) baseline performance on outcome measures; and (4)
promising program practices.
    (d) The service agreement must be submitted to the commissioner by October 15, 2003,
and October 15 of each second year thereafter. The county or tribe must allow a period of not
less than 30 days prior to the submission of the agreement to solicit comments from the public
on the contents of the agreement.
    (e) The commissioner must, within 60 days of receiving each county or tribal service
agreement, inform the county or tribe if the service agreement is approved. If the service
agreement is not approved, the commissioner must inform the county or tribe of any revisions
needed prior to approval.
    (f) The service agreement in this subdivision supersedes the plan requirements of section
116L.88.
    Subd. 5. Innovation projects. Beginning January 1, 2005, no more than $3,000,000 of
the funds annually appropriated to the commissioner for use in the consolidated fund shall be
available to the commissioner for projects testing innovative approaches to improving outcomes
for MFIP participants, family stabilization services participants, and persons at risk of receiving
MFIP as detailed in subdivision 3. Projects shall be targeted to geographic areas with poor
outcomes as specified in section 256J.751, subdivision 5, or to subgroups within the MFIP case
load who are experiencing poor outcomes.
    Subd. 6. Base allocation to counties and tribes; definitions. (a) For purposes of this
section, the following terms have the meanings given.
    (1) "2002 historic spending base" means the commissioner's determination of the sum of the
reimbursement related to fiscal year 2002 of county or tribal agency expenditures for the base
programs listed in clause (6), items (i) through (iv), and earnings related to calendar year 2002 in
the base program listed in clause (6), item (v), and the amount of spending in fiscal year 2002
in the base program listed in clause (6), item (vi), issued to or on behalf of persons residing
in the county or tribal service delivery area.
    (2) "Adjusted caseload factor" means a factor weighted:
    (i) 47 percent on the MFIP cases in each county at four points in time in the most recent
12-month period for which data is available multiplied by the county's caseload difficulty factor;
and
    (ii) 53 percent on the count of adults on MFIP in each county and tribe at four points in time
in the most recent 12-month period for which data is available multiplied by the county or tribe's
caseload difficulty factor.
    (3) "Caseload difficulty factor" means a factor determined by the commissioner for each
county and tribe based upon the self-support index described in section 256J.751, subdivision 2,
clause (6).
    (4) "Initial allocation" means the amount potentially available to each county or tribe based
on the formula in paragraphs (b) through (d).
    (5) "Final allocation" means the amount available to each county or tribe based on the
formula in paragraphs (b) through (d), after adjustment by subdivision 7.
    (6) "Base programs" means the:
    (i) MFIP employment and training services under Minnesota Statutes 2002, section 256J.62,
subdivision 1
, in effect June 30, 2002;
    (ii) bilingual employment and training services to refugees under Minnesota Statutes 2002,
section 256J.62, subdivision 6, in effect June 30, 2002;
    (iii) work literacy language programs under Minnesota Statutes 2002, section 256J.62,
subdivision 7
, in effect June 30, 2002;
    (iv) supported work program authorized in Laws 2001, First Special Session chapter 9,
article 17, section 2, in effect June 30, 2002;
    (v) administrative aid program under section 256J.76 in effect December 31, 2002; and
    (vi) emergency assistance program under Minnesota Statutes 2002, section 256J.48, in
effect June 30, 2002.
    (b) The commissioner shall:
    (1) beginning July 1, 2003, determine the initial allocation of funds available under this
section according to clause (2);
    (2) allocate all of the funds available for the period beginning July 1, 2003, and ending
December 31, 2004, to each county or tribe in proportion to the county's or tribe's share of the
statewide 2002 historic spending base;
    (3) determine for calendar year 2005 the initial allocation of funds to be made available
under this section in proportion to the county or tribe's initial allocation for the period of July 1,
2003, to December 31, 2004;
    (4) determine for calendar year 2006 the initial allocation of funds to be made available
under this section based 90 percent on the proportion of the county or tribe's share of the statewide
2002 historic spending base and ten percent on the proportion of the county or tribe's share of
the adjusted caseload factor;
    (5) determine for calendar year 2007 the initial allocation of funds to be made available
under this section based 70 percent on the proportion of the county or tribe's share of the statewide
2002 historic spending base and 30 percent on the proportion of the county or tribe's share of the
adjusted caseload factor; and
    (6) determine for calendar year 2008 and subsequent years the initial allocation of funds to
be made available under this section based 50 percent on the proportion of the county or tribe's
share of the statewide 2002 historic spending base and 50 percent on the proportion of the county
or tribe's share of the adjusted caseload factor.
    (c) With the commencement of a new or expanded tribal TANF program or an agreement
under section 256.01, subdivision 2, paragraph (g), in which some or all of the responsibilities of
particular counties under this section are transferred to a tribe, the commissioner shall:
    (1) in the case where all responsibilities under this section are transferred to a tribal program,
determine the percentage of the county's current caseload that is transferring to a tribal program
and adjust the affected county's allocation accordingly; and
    (2) in the case where a portion of the responsibilities under this section are transferred to a
tribal program, the commissioner shall consult with the affected county or counties to determine
an appropriate adjustment to the allocation.
    (d) Effective January 1, 2005, counties and tribes will have their final allocations adjusted
based on the performance provisions of subdivision 7.
    Subd. 7. Performance base funds. (a) Beginning calendar year 2008, each county and tribe
will be allocated 95 percent of their initial calendar year allocation. Counties and tribes will be
allocated additional funds based on performance as follows:
    (1) for calendar year 2008 and yearly thereafter, a county or tribe that achieves a 50 percent
MFIP participation rate or a five percentage point improvement over the previous year's MFIP
participation rate under section 256J.751, subdivision 2, clause (7), as averaged across the four
quarterly measurements for the most recent year for which the measurements are available, will
receive an additional allocation equal to 2.5 percent of its initial allocation; and
     (2) for calendar years 2005 and thereafter, a county or tribe that performs above the top of
its annualized range of expected performance on the three-year self-support index under section
256J.751, subdivision 2, clause (6), will receive an additional allocation equal to five percent
of its initial allocation; and
    (3) for calendar years 2005 and thereafter, a county or tribe that performs within its range of
expected performance on the annualized three-year self-support index under section 256J.751,
subdivision 2
, clause (6), will receive an additional allocation equal to 2.5 percent of its initial
allocation; and
    (4) for calendar years 2008 and thereafter, a county or tribe that does not achieve a 50 percent
MFIP participation rate or a five percentage point improvement over the previous year's MFIP
participation rate under section 256J.751, subdivision 2, clause (7), as averaged across the four
quarterly measurements for the most recent year for which the measurements are available, will
not receive an additional 2.5 percent of its initial allocation until after negotiating a multiyear
improvement plan with the commissioner; or
    (5) for calendar years 2008 and thereafter, a county or tribe that does not perform within
its range of expected performance on the annualized three-year self-support index under section
256J.751, subdivision 2, clause (6), will not receive an additional allocation equal to 2.5 percent of
its initial allocation until after negotiating a multiyear improvement plan with the commissioner.
    (b) Performance-based funds for a federally approved tribal TANF program in which the
state and tribe have in place a contract under section 256.01, addressing consolidated funding,
will be allocated as follows:
    (1) for calendar year 2006 and yearly thereafter, a tribe that achieves the participation rate
approved in its federal TANF plan using the average of four quarterly measurements for the
most recent year for which the measurements are available, will receive an additional allocation
equal to 2.5 percent of its initial allocation; and
    (2) for calendar years 2006 and thereafter, a tribe that performs above the top of its
annualized range of expected performance on the three-year self-support index under section
256J.751, subdivision 2, clause (6), will receive an additional allocation equal to five percent
of its initial allocation; or
    (3) for calendar years 2006 and thereafter, a tribe that performs within its range of expected
performance on the annualized three-year self-support index under section 256J.751, subdivision
2
, clause (6), will receive an additional allocation equal to 2.5 percent of its initial allocation; or
    (4) for calendar year 2008 and yearly thereafter, a tribe that does not achieve the participation
rate approved in its federal TANF plan using the average of four quarterly measurements for
the most recent year for which the measurements are available, will not receive an additional
allocation equal to 2.5 percent of its initial allocation until after negotiating a multiyear
improvement plan with the commissioner; or
    (5) for calendar year 2008 and yearly thereafter, a tribe that does not perform within its range
of expected performance on the annualized three-year self-support index under section 256J.751,
subdivision 2
, clause (6), will not receive an additional allocation equal to 2.5 percent until after
negotiating a multiyear improvement plan with the commissioner.
    (c) Funds remaining unallocated after the performance-based allocations in paragraph (a) are
available to the commissioner for innovation projects under subdivision 5.
    (d)(1) If available funds are insufficient to meet county and tribal allocations under paragraph
(a), the commissioner may make available for allocation funds that are unobligated and available
from the innovation projects through the end of the current biennium.
    (2) If after the application of clause (1) funds remain insufficient to meet county and tribal
allocations under paragraph (a), the commissioner must proportionally reduce the allocation of
each county and tribe with respect to their maximum allocation available under paragraph (a).
    Subd. 8. Reporting requirement and reimbursement. (a) The commissioner shall specify
requirements for reporting according to section 256.01, subdivision 2, clause (17). Each county or
tribe shall be reimbursed for eligible expenditures up to the limit of its allocation and subject to
availability of funds.
(b) Reimbursements for county administrative-related expenditures determined through the
income maintenance random moment time study shall be reimbursed at a rate of 50 percent of
eligible expenditures.
(c) The commissioner of human services shall review county and tribal agency expenditures
of the MFIP consolidated fund as appropriate and may reallocate unencumbered or unexpended
money appropriated under this section to those county and tribal agencies that can demonstrate a
need for additional money as follows:
(1) to the extent that particular county or tribal allocations are reduced from the previous
year's amount due to the phase-in under subdivision 6, paragraph (b), clauses (4) to (6), those
tribes or counties would have first priority for reallocated funds; and
(2) to the extent that unexpended funds are insufficient to cover demonstrated need, funds
will be prorated to those counties and tribes in relation to demonstrated need.
    Subd. 9.[Repealed, 2007 c 147 art 2 s 63]
History: 1Sp2003 c 14 art 1 s 94,106; 2004 c 206 s 52; 2004 c 288 art 4 s 51-53; 2005 c
159 art 5 s 7-9; 2006 c 282 art 18 s 2; 2007 c 147 art 2 s 39-45