1st Engrossment - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to human services; establishing the Minnesota 1.3 family investment program-statewide, the welfare 1.4 reform coordinating commission, contingent benefit 1.5 standards, and the work first program; making 1.6 assistance program changes; making technical changes; 1.7 establishing the corps to career community service 1.8 program and the citizenship promotion program; 1.9 requiring a plan for providing a tribal employment and 1.10 training program; requiring a proposal for repayment 1.11 of post-secondary education funds; amending Minnesota 1.12 Statutes 1996, sections 13.46, subdivisions 1 and 2; 1.13 84.0887, subdivision 2; 84.98, subdivision 3; 124.17, 1.14 subdivisions 1d and 1e; 124.175; 124A.02, subdivision 1.15 16; 124A.22, subdivision 3; 136A.125, subdivision 2; 1.16 196.27; 237.70, subdivision 4a; 254B.02, subdivision 1.17 1; 256.01, subdivisions 2 and 4a; 256.017, 1.18 subdivisions 1 and 4; 256.019; 256.031, subdivision 5, 1.19 and by adding a subdivision; 256.033, subdivisions 1 1.20 and 1a; 256.046, subdivision 1; 256.736, subdivision 1.21 3a; 256.74, subdivision 1; 256.82, subdivision 2; 1.22 256.935, subdivision 1; 256.9354, by adding a 1.23 subdivision; 256.98, subdivision 8; 256.981; 256.983, 1.24 subdivisions 1 and 4; 256.9850; 256.9861, subdivision 1.25 5; 256B.055, subdivisions 3, 5, and by adding a 1.26 subdivision; 256B.056, subdivisions 1a, 3, and 4; 1.27 256B.057, subdivisions 1, 1b, and 2b; 256B.06, 1.28 subdivision 4; 256B.062; 256D.01, subdivisions 1, 1a, 1.29 and 1e; 256D.02, subdivisions 6 and 12a; 256D.03, 1.30 subdivision 3; 256D.05, subdivisions 1, 5, and 8; 1.31 256D.051, subdivisions 1a, 2a, 3a, and by adding a 1.32 subdivision; 256D.055; 256D.06, subdivisions 2 and 5; 1.33 256D.08, subdivisions 1 and 2; 256D.09, by adding a 1.34 subdivision; 256D.435, subdivision 3; 256D.44, 1.35 subdivision 5; 256E.03, subdivision 2; 256E.06, 1.36 subdivisions 1 and 3; 256E.07, subdivision 1; 256E.08, 1.37 subdivision 3; 256F.05, subdivision 5; 256G.01, 1.38 subdivision 4; 257.3573, subdivision 2; 259.67, 1.39 subdivision 4; 260.38; 268.0111, subdivisions 5 and 7; 1.40 268.0122, subdivision 3; 268.552, subdivision 5; 1.41 268.6751, subdivision 1; 268.676, subdivision 1; 1.42 268.86, subdivision 2; 268.871, subdivision 1; 268.90, 1.43 subdivision 2; 268.916; 268.95, subdivision 4; 393.07, 1.44 subdivision 6; and 477A.0122, subdivision 2; proposing 1.45 coding for new law in Minnesota Statutes, chapters 3; 1.46 256B; and 256D; proposing coding for new law as 2.1 Minnesota Statutes, chapters 256J; and 256K; repealing 2.2 Minnesota Statutes 1996, sections 256.12, subdivisions 2.3 9, 10, 14, 15, 19, 20, 21, 22, and 23; 256.72; 256.73, 2.4 subdivisions 1, 1a, 1b, 2, 3a, 3b, 5, 5a, 6, 8, 8a, 9, 2.5 10, and 11; 256.7341; 256.7351; 256.7352; 256.7353; 2.6 256.7354; 256.7355; 256.7356; 256.7357; 256.7358; 2.7 256.7359; 256.736, subdivision 18; 256.7365, 2.8 subdivisions 1, 2, 3, 4, 5, 6, 7, and 9; 256.7366; 2.9 256.737; 256.738; 256.7381; 256.7382; 256.7383; 2.10 256.7384; 256.7385; 256.7386; 256.7387; 256.7388; 2.11 256.739; 256.74, subdivisions 1, 1a, 1b, 2, and 6; 2.12 256.745; 256.75; 256.76, subdivision 1; 256.78; 2.13 256.80; 256.81; 256.82; 256.84; 256.85; 256.86; 2.14 256.863; 256.871; 256.8711; 256.879; 256D.02, 2.15 subdivision 5; 256D.0511; and 256D.065. 2.16 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 2.17 ARTICLE 1 2.18 MINNESOTA FAMILY INVESTMENT PROGRAM-STATEWIDE 2.19 Section 1. [256J.01] [ESTABLISHING MINNESOTA FAMILY 2.20 INVESTMENT PROGRAM-STATEWIDE.] 2.21 Subdivision 1. [IMPLEMENTATION OF MINNESOTA FAMILY 2.22 INVESTMENT PROGRAM-STATEWIDE (MFIP-S).] This chapter and chapter 2.23 256K may be cited as the Minnesota family investment 2.24 program-statewide (MFIP-S). MFIP-S is the statewide 2.25 implementation of components of the Minnesota family investment 2.26 plan (MFIP) authorized under section 256.031 and Minnesota 2.27 family investment plan-Ramsey county (MFIP-R) in section 256.047. 2.28 This subdivision is effective January 1, 1998, except the 2.29 transitional provision in section 72 applies. 2.30 Subd. 2. [IMPLEMENTATION OF TEMPORARY ASSISTANCE FOR NEEDY 2.31 FAMILIES (TANF).] The Personal Responsibility and Work 2.32 Opportunity Reconciliation Act of 1996, Public Law Number 2.33 104-193, eliminates the aid to families with dependent children 2.34 (AFDC) program and replaces it with a program of block grants to 2.35 states for temporary assistance for needy families (TANF). TANF 2.36 provides cash assistance for a limited time to families with 2.37 children and to pregnant women. Minnesota's TANF assistance 2.38 will be provided through a statewide expansion of MFIP. The 2.39 modifications specified in this chapter are necessary to comply 2.40 with the new federal law and to improve MFIP. Eligible 2.41 Applicants and recipients of AFDC, family general assistance, 2.42 and food stamps will be converted to the MFIP-S program. The 2.43 conversion to MFIP-S must be made by January 1, 1998, and may be 3.1 made earlier at county option. 3.2 Subd. 3. [RELATIONSHIP TO OTHER STATUTES AND 3.3 RULES.] MFIP-S replaces eligibility for families with children 3.4 and pregnant women under the general assistance program, 3.5 governed by sections 256D.01 to 256D.21 and Minnesota Rules, 3.6 parts 9500.1200 to 9500.1270. 3.7 This subdivision is effective January 1, 1998, except the 3.8 transitional provision in section 72 applies. 3.9 Subd. 4. [CHANGES TO WAIVERS.] The commissioner of human 3.10 services may negotiate and obtain changes in the federal waivers 3.11 and terms and conditions contained in MFIP, MFIP-R, and MFIP-S. 3.12 The commissioner may also terminate federal waivers by directing 3.13 so in the applicable state plan. 3.14 Subd. 5. [COMPLIANCE SYSTEM.] The commissioner shall 3.15 administer a compliance system for the state's temporary 3.16 assistance for needy families (TANF) program, the food stamp 3.17 program, emergency assistance, general assistance, Medical 3.18 Assistance, general assistance medical care, emergency general 3.19 assistance, Minnesota supplemental aid, preadmission screening, 3.20 child support program, and alternative care grants under the 3.21 powers and authorities named in section 256.01, subdivision 2. 3.22 The purpose of the compliance system is to permit the 3.23 commissioner to supervise the administration of public 3.24 assistance programs and to enforce timely and accurate 3.25 distribution of benefits, completeness of service and efficient 3.26 and effective program management and operations, to increase 3.27 uniformity and consistency in the administration and delivery of 3.28 public assistance programs throughout the state, and to reduce 3.29 the possibility of sanction and fiscal disallowances for 3.30 noncompliance with federal regulations and state statutes. 3.31 Sec. 2. [256J.02] [FEDERAL TEMPORARY ASSISTANCE FOR NEEDY 3.32 FAMILIES BLOCK GRANT.] 3.33 Subdivision 1. [COMMISSIONER'S AUTHORITY TO ADMINISTER 3.34 BLOCK GRANT FUNDS.] The commissioner of human services is 3.35 authorized to receive, administer, and expend funds available 3.36 under the TANF block grant authorized under title I of Public 4.1 Law Number 104-193, the Personal Responsibility and Work 4.2 Opportunity Reconciliation Act of 1996. 4.3 Subd. 2. [USE OF MONEY.] State money appropriated for 4.4 purposes of this section and TANF block grant money must be used 4.5 for: 4.6 (1) financial assistance to or on behalf of any minor child 4.7 who is a resident of this state under section 256J.12; 4.8 (2) employment and training services under this chapter or 4.9 chapter 256K; 4.10 (3) emergency financial assistance and services under 4.11 section 256J.48; 4.12 (4) diversionary assistance under section 256J.47; and 4.13 (5) program administration under this chapter. 4.14 Subd. 3. [CARRY FORWARD OF FEDERAL MONEY.] Temporary 4.15 assistance for needy families block grant money must be 4.16 appropriated for the purposes in this section and is available 4.17 until expended. 4.18 Subd. 4. [AUTHORITY TO TRANSFER.] Subject to limitations 4.19 of title I of Public Law Number 104-193, the Personal 4.20 Responsibility and Work Opportunity Reconciliation Act of 1996, 4.21 the legislature may transfer money from the TANF block grant to 4.22 the child care fund under section 119B.02, or the Title XX block 4.23 grant under section 256E.07. 4.24 Subd. 5. [INDIRECT COST LIABILITY.] Notwithstanding the 4.25 provisions of section 16A.127, the statewide and agency indirect 4.26 cost liability identified as part of the TANF grant for any 4.27 current fiscal year shall be limited to no more than the amount 4.28 received in fiscal year 1996. 4.29 Sec. 3. [256J.06] [COMMUNITY INVOLVEMENT.] 4.30 The MFIP-S program must be administered in a way that, in 4.31 addition to the county agency, other sectors in the community 4.32 such as employers from the public and private sectors, 4.33 not-for-profit organizations, educational and social service 4.34 agencies, labor unions, and neighborhood associations are 4.35 involved. 4.36 Sec. 4. [256J.08] [DEFINITIONS.] 5.1 Subdivision 1. [SCOPE OF DEFINITIONS.] The terms used in 5.2 this chapter have the following meanings unless otherwise 5.3 provided for by text. 5.4 Subd. 2. [ABSENT PARENT.] "Absent parent" means a minor 5.5 child's parent who does not live in the same home as the child. 5.6 Subd. 3. [AGENCY ERROR.] "Agency error" means an error 5.7 that results in an overpayment or underpayment to an assistance 5.8 unit and is not caused by an applicant's or participant's 5.9 failure to provide adequate, correct, or timely information 5.10 about income, property, household composition, or other 5.11 circumstances. 5.12 Subd. 4. [APPEAL.] "Appeal" means a written statement from 5.13 an applicant or participant who requests a hearing under section 5.14 256J.31. 5.15 Subd. 5. [APPLICANT.] "Applicant" means a person who has 5.16 submitted to a county agency an application and whose 5.17 application has not been acted upon, denied, or voluntarily 5.18 withdrawn. 5.19 Subd. 6. [APPLICATION.] "Application" means the submission 5.20 by or on behalf of a family to a county agency of a completed, 5.21 signed, and dated form, prescribed by the commissioner, that 5.22 indicates the desire to receive assistance. 5.23 Subd. 7. [ASSISTANCE UNIT OR MFIP-S ASSISTANCE 5.24 UNIT.] "Assistance unit" or "MFIP-S assistance unit" means a 5.25 group of mandatory or optional people receiving or applying for 5.26 MFIP-S benefits together. 5.27 Subd. 8. [AUTHORIZED REPRESENTATIVE.] "Authorized 5.28 representative" means a person who is authorized, in writing, by 5.29 an applicant or participant to act on the applicant's or 5.30 participant's behalf in matters involving the application for 5.31 assistance or participation in MFIP-S. 5.32 Subd. 9. [BASIC NEEDS.] "Basic needs" means the minimum 5.33 personal requirements of subsistence and is restricted to food, 5.34 clothing, shelter, utilities, and other items for which the 5.35 loss, or lack of basic needs, is determined by the county agency 5.36 to pose a direct, immediate threat to the physical health or 6.1 safety of the applicant or participant. 6.2 Subd. 10. [BUDGET MONTH.] "Budget month" means the 6.3 calendar month which the county agency uses to determine the 6.4 income or circumstances of an assistance unit to calculate the 6.5 amount of the assistance payment in the payment month. 6.6 Subd. 11. [CAREGIVER.] "Caregiver" means a minor child's 6.7 natural or adoptive parent or parents who live in the home with 6.8 the minor child. For purposes of determining eligibility for 6.9 this program, caregiver also means any of the following 6.10 individuals, if adults, who live with and provide care and 6.11 support to a minor child when the minor child's natural or 6.12 adoptive parent or parents do not reside in the same home: 6.13 legal custodians, grandfather, grandmother, brother, sister, 6.14 stepfather, stepmother, stepbrother, stepsister, uncle, aunt, 6.15 first cousin, nephew, niece, person of preceding generation as 6.16 denoted by prefixes of "great," "great-great," or 6.17 "great-great-great," or a spouse of any person named in the 6.18 above groups even after the marriage ends by death or divorce. 6.19 Subd. 12. [CLIENT ERROR.] "Client error" means an error 6.20 that results in an overpayment or underpayment and is due to an 6.21 applicant's or participant's failure to provide adequate, 6.22 correct, or timely information concerning income, property, 6.23 household composition, or other circumstances. 6.24 Subd. 13. [COMMISSIONER.] "Commissioner" means the 6.25 commissioner of human services or the commissioner's designated 6.26 representative. 6.27 Subd. 14. [CORRECTIVE PAYMENT.] "Corrective payment" means 6.28 an assistance payment that is made to correct an underpayment. 6.29 Subd. 15. [COUNTABLE INCOME.] "Countable income" means 6.30 earned and unearned income that is not excluded under section 6.31 256J.21, subdivision 2, or disregarded under section 256J.21, 6.32 subdivision 3. 6.33 Subd. 16. [COUNTED EARNINGS.] "Counted earnings" means the 6.34 earned income that remains after applicable disregards under 6.35 section 256J.21, subdivision 4, have been subtracted from gross 6.36 earned income. 7.1 Subd. 17. [COUNTY AGENCY.] "County agency" means the 7.2 agency designated by the county board to implement financial 7.3 assistance for current programs and for MFIP-S and the agency 7.4 responsible for enforcement of child support collection, and a 7.5 county or multicounty agency that is authorized under sections 7.6 393.01, subdivision 7, and 393.07, subdivision 2, to administer 7.7 MFIP-S. 7.8 Subd. 18. [COUNTY BOARD.] "County board" means a board of 7.9 commissioners, a local services agency as defined in chapter 7.10 393, a board established under Joint Powers Act, section 471.59, 7.11 or a human services board under chapter 402. 7.12 Subd. 19. [COUNTY OF FINANCIAL RESPONSIBILITY.] "County of 7.13 financial responsibility" means the county that has financial 7.14 responsibility for providing public assistance as specified in 7.15 chapter 256G. 7.16 Subd. 20. [COUNTY OF RESIDENCE.] "County of residence" 7.17 means the county where the caregiver has established a home. 7.18 Subd. 21. [DATE OF APPLICATION.] "Date of application" 7.19 means the date on which the county agency receives an 7.20 applicant's signed application. 7.21 Subd. 22. [DEEM.] "Deem" means to treat all or part of the 7.22 income of an individual who is not in the assistance unit, but 7.23 who is financially responsible for members of the assistance 7.24 unit, as if it were income available to the assistance unit. 7.25 Subd. 23. [DEPARTMENT.] "Department" means the Minnesota 7.26 department of human services. 7.27 Subd. 24. [DISREGARD.] "Disregard" means earned income 7.28 that is not counted when determining initial eligibility or 7.29 ongoing eligibility and calculating the amount of the assistance 7.30 payment for participants. 7.31 Subd. 25. [DOCUMENTATION.] "Documentation" means a written 7.32 statement or record that substantiates or validates an assertion 7.33 made by a person or an action taken by a person, agency, or 7.34 entity. 7.35 Subd. 26. [EARNED INCOME.] "Earned income" means cash or 7.36 in-kind income earned through the receipt of wages, salary, 8.1 commissions, profit from employment activities, net profit from 8.2 self-employment activities, payments made by an employer for 8.3 regularly accrued vacation or sick leave, and any other profit 8.4 from activity earned through effort or labor. 8.5 Subd. 27. [EARNED INCOME TAX CREDIT.] "Earned income tax 8.6 credit" means the payment which can be obtained by a qualified 8.7 person from an employer or from the Internal Revenue Service as 8.8 provided by section 290.0671 and United States Code, title 26, 8.9 subtitle A, chapter 1, subchapter A, part 4, subpart C, section 8.10 32. 8.11 Subd. 28. [EMERGENCY.] "Emergency" means a situation or a 8.12 set of circumstances that causes or threatens to cause 8.13 destitution to a minor child. 8.14 Subd. 29. [EQUITY VALUE.] "Equity value" means the amount 8.15 of equity in real or personal property owned by a person and is 8.16 determined by subtracting any outstanding encumbrances from the 8.17 fair market value. 8.18 Subd. 30. [EXCLUDED TIME.] "Excluded time" has the meaning 8.19 given in section 256G.02. 8.20 Subd. 31. [EXPEDITED ISSUANCE OF THE FOOD STAMP 8.21 PORTION.] "Expedited issuance of the food stamp portion" means 8.22 the issuance of the food stamp portion to eligible assistance 8.23 units on the day of application as provided in section 393.07, 8.24 subdivision 10a. 8.25 Subd. 32. [FAIR HEARING OR HEARING.] "Fair hearing" or 8.26 "hearing" means the evidentiary hearing conducted by the 8.27 department appeals referee to resolve disputes as specified in 8.28 sections 256.045 and 256J.40. 8.29 Subd. 33. [FAIR MARKET VALUE.] "Fair market value" means 8.30 the price that an item of a particular make, model, size, 8.31 material, or condition would sell for on the open market in the 8.32 particular geographic area. 8.33 Subd. 34. [FAMILY.] "Family" includes: 8.34 (1) the following individuals who live together: a minor 8.35 child or a group of minor children related to each other as 8.36 siblings, half siblings, stepsiblings, or adoptive siblings, 9.1 together with their natural, adoptive parents, stepparents, or 9.2 caregiver as defined in subdivision 11; and 9.3 (2) a pregnant woman with no other children. 9.4 Subd. 35. [FAMILY WAGE LEVEL.] "Family wage level" means 9.5 109 percent of the transitional standard. 9.6 Subd. 36. [FEDERAL INSURANCE CONTRIBUTION ACT OR 9.7 FICA.] "Federal Insurance Contribution Act" or "FICA" means the 9.8 federal law under United States Code, title 26, subtitle C, 9.9 chapter 21, subchapter A, sections 3101 to 3126, that requires 9.10 withholding or direct payment from earned income. 9.11 Subd. 37. [FINANCIAL CASE RECORD.] "Financial case record" 9.12 means an assistance unit's financial eligibility file. 9.13 Subd. 38. [FULL-TIME STUDENT.] "Full-time student" means a 9.14 person who is enrolled in a graded or ungraded primary, 9.15 intermediate, secondary, GED preparatory, trade, technical, 9.16 vocational, or post-secondary school, and who meets the school's 9.17 standard for full-time attendance. 9.18 Subd. 39. [GENERAL EDUCATIONAL DEVELOPMENT OR 9.19 GED.] "General educational development" or "GED" means the 9.20 general educational development certification issued by the 9.21 Minnesota board of education as an equivalent to a secondary 9.22 school diploma under Minnesota Rules, part 3500.3100, subpart 4. 9.23 Subd. 40. [GROSS EARNED INCOME.] "Gross earned income" 9.24 means earned income from employment before mandatory and 9.25 voluntary payroll deductions. Gross earned income includes 9.26 salaries, wages, tips, gratuities, commissions, incentive 9.27 payments from work or training programs, payments made by an 9.28 employer for regularly accrued vacation or sick leave, and 9.29 profits from other activity earned by an individual's effort or 9.30 labor. Gross earned income includes uniform and meal allowances 9.31 if federal income tax is deducted from the allowance. Gross 9.32 earned income includes flexible work benefits received from an 9.33 employer if the employee has the option of receiving the benefit 9.34 or benefits in cash. 9.35 Subd. 41. [GROSS INCOME.] "Gross income" is the sum of 9.36 gross earned income and unearned income. 10.1 Subd. 42. [GROSS RECEIPTS.] "Gross receipts" means the 10.2 money received by a business before the expenses of the business 10.3 are deducted. 10.4 Subd. 43. [HALF-TIME STUDENT.] "Half-time student" means a 10.5 person who is enrolled in a graded or ungraded primary, 10.6 intermediate, secondary, GED preparatory, trade, technical, 10.7 vocational, or post-secondary school, and who meets the school's 10.8 standard of half-time attendance. 10.9 Subd. 44. [HOME.] "Home" means the primary place of 10.10 residence used by a person as the base for day-to-day living and 10.11 does not include locations used as mail drops. 10.12 Subd. 45. [HOMESTEAD.] "Homestead" means the home that is 10.13 owned by, and is the usual residence of, the assistance unit 10.14 together with the surrounding property which is not separated 10.15 from the home by intervening property owned by others. Public 10.16 rights-of-way, such as roads which run through the surrounding 10.17 property and separate it from the home, do not affect the 10.18 exemption of the property. Homestead includes an asset that is 10.19 not real property that the assistance unit uses as a home, such 10.20 as a vehicle. 10.21 Subd. 46. [HOUSEHOLD.] "Household" means a group of 10.22 persons who live together. 10.23 Subd. 47. [INCOME.] "Income" means cash or in-kind 10.24 benefit, whether earned or unearned, received by or available to 10.25 an applicant or participant that is not an asset under section 10.26 256J.20. 10.27 Subd. 48. [INITIAL ELIGIBILITY.] "Initial eligibility" 10.28 means the determination of eligibility for an MFIP-S applicant. 10.29 Subd. 49. [IN-KIND INCOME.] "In-kind income" means income, 10.30 benefits, or payments which are provided in a form other than 10.31 money or liquid assets, including the forms of goods, produce, 10.32 services, privileges, or payments made on behalf of an applicant 10.33 or participant by a third party. 10.34 Subd. 50. [INQUIRY.] "Inquiry" means a communication to a 10.35 county agency through mail, telephone, or in person, by which a 10.36 person or authorized representative requests information about 11.1 public assistance. The county agency shall also treat as an 11.2 inquiry any communication in which a person requesting 11.3 assistance offers information about the person's family 11.4 circumstances that indicates that eligibility for public 11.5 assistance may exist. 11.6 Subd. 51. [LEGALLY AVAILABLE.] "Legally available" means a 11.7 person's right under the law to secure, possess, dispose of, or 11.8 control income or property. 11.9 Subd. 52. [LOW-INCOME HOME ENERGY ASSISTANCE PROGRAM OR 11.10 LIHEAP.] "Low-income home energy assistance program" or "LIHEAP" 11.11 means the program authorized under United States Code, title 42, 11.12 chapter 94, subchapter II, sections 8621 to 8629, and 11.13 administered by the Minnesota department of economic security. 11.14 Subd. 53. [LUMP SUM.] "Lump sum" means nonrecurring income 11.15 that is not excluded in section 256J.21. 11.16 Subd. 54. [MEDICAL ASSISTANCE.] "Medical Assistance" means 11.17 the program established under chapter 256B and Title XIX of the 11.18 Social Security Act. 11.19 Subd. 55. [MFIP-S HOUSEHOLD REPORT FORM.] "MFIP-S 11.20 household report form" means a form prescribed by the 11.21 commissioner that a participant uses to report information to a 11.22 county agency about changes in income and other circumstances. 11.23 Subd. 56. [MIGRANT WORKER.] "Migrant worker" means a 11.24 person who travels away from home on a regular basis, usually 11.25 with a group of other laborers, to seek employment in an 11.26 agriculturally related activity. 11.27 Subd. 57. [MINNESOTA FAMILY INVESTMENT PROGRAM-STATEWIDE 11.28 OR MFIP-S.] "Minnesota family investment program-statewide" or 11.29 "MFIP-S" means the assistance program authorized in this chapter 11.30 and chapter 256K. 11.31 Subd. 58. [MINNESOTA SUPPLEMENTAL AID OR MSA.] "Minnesota 11.32 supplemental aid" or "MSA" means the program established under 11.33 sections 256D.33 to 256D.54. 11.34 Subd. 59. [MINOR CAREGIVER.] "Minor caregiver" means a 11.35 person who: 11.36 (1) is under the age of 18; 12.1 (2) has never been married or otherwise legally 12.2 emancipated; and 12.3 (3) is either the natural parent of a minor child living in 12.4 the same household or is eligible for assistance paid to a 12.5 pregnant woman. 12.6 Subd. 60. [MINOR CHILD.] "Minor child" means a child who 12.7 is living in the same home of a parent or other caregiver, is 12.8 either less than 18 years of age or is under the age of 19 years 12.9 and is regularly attending as a full-time student and is 12.10 expected to complete a high school or a secondary level course 12.11 of vocational or technical training designed to fit students for 12.12 gainful employment before reaching age 19. 12.13 Subd. 61. [MONTHLY INCOME TEST.] "Monthly income test" 12.14 means the test used to determine ongoing eligibility and the 12.15 assistance payment amount according to section 256J.21. 12.16 Subd. 62. [NONRECURRING INCOME.] "Nonrecurring income" 12.17 means a form of income which is received: 12.18 (1) only one time or is not of a continuous nature; or 12.19 (2) in a prospective payment month but is no longer 12.20 received in the corresponding retrospective payment month. 12.21 Subd. 63. [OVERPAYMENT.] "Overpayment" means the portion 12.22 of an assistance payment issued by the county agency that is 12.23 greater than the amount for which the assistance unit is 12.24 eligible. 12.25 Subd. 64. [PARENT.] "Parent" means a child's biological or 12.26 adoptive parent who is legally obligated to support that child. 12.27 Subd. 65. [PARTICIPANT.] "Participant" means a person who 12.28 is currently receiving cash assistance and the food portion 12.29 available through MFIP-S as funded by TANF and the Food Stamp 12.30 program. A person who fails to withdraw or access 12.31 electronically any portion of his or her cash assistance payment 12.32 by the end of the payment month or who returns any uncashed 12.33 assistance check and withdraws from the program is not a 12.34 participant. A person who withdraws a cash assistance payment 12.35 by electronic transfer or receives and cashes a cash assistance 12.36 check and is subsequently determined to be ineligible for 13.1 assistance for that period of time is a participant, regardless 13.2 of whether that assistance is repaid. The term "participant" 13.3 includes the caregiver relative and the minor child whose needs 13.4 are included in the assistance payment. A person in an 13.5 assistance unit who does not receive a cash assistance payment 13.6 because he or she has been suspended from MFIP-S or because his 13.7 or her need falls below the $10 minimum payment level is a 13.8 participant. 13.9 Subd. 66. [PAYEE.] "Payee" means a person to whom an 13.10 assistance payment is made payable. 13.11 Subd. 67. [PAYMENT MONTH.] "Payment month" means the 13.12 calendar month for which the assistance payment is paid. 13.13 Subd. 68. [PERSONAL PROPERTY.] "Personal property" means 13.14 an item of value that is not real property, including the value 13.15 of a contract for deed held by a seller, assets held in trust on 13.16 behalf of members of an assistance unit, cash surrender value of 13.17 life insurance, value of a prepaid burial, savings account, 13.18 value of stocks and bonds, and value of retirement accounts. 13.19 Subd. 69. [PROBABLE FRAUD.] "Probable fraud" means the 13.20 level of evidence that, if proven as fact, would establish that 13.21 assistance has been wrongfully obtained. 13.22 Subd. 70. [PROFESSIONAL CERTIFICATION.] "Professional 13.23 certification" means: 13.24 (1) a statement about a person's illness, injury, or 13.25 incapacity that is signed by a licensed physician, psychological 13.26 practitioner, or licensed psychologist, qualified by 13.27 professional training and experience to diagnose and certify the 13.28 person's condition; or 13.29 (2) a statement about an incapacity involving a spinal 13.30 subluxation condition that is signed by a licensed chiropractor 13.31 qualified by professional training and experience to diagnose 13.32 and certify the condition. 13.33 Subd. 71. [PROSPECTIVE BUDGETING.] "Prospective budgeting" 13.34 means a method of determining the amount of the assistance 13.35 payment in which the budget month and payment month are the same. 13.36 Subdivisions 1 to 71 are effective January 1, 1998, except 14.1 the transitional provision in section 72 applies. 14.2 Subd. 72. [PROTECTIVE PAYEE.] "Protective payee" means a 14.3 person other than the caregiver of an assistance unit who 14.4 receives the monthly assistance payment on behalf of an 14.5 assistance unit and is responsible to provide for the basic 14.6 needs of the assistance unit to the extent of that payment. 14.7 Subd. 73. [QUALIFIED NONCITIZEN.] "Qualified noncitizen" 14.8 means a person: 14.9 (1) who was lawfully admitted for permanent residence 14.10 pursuant to United States Code, title 8; 14.11 (2) who was admitted to the United States as a refugee 14.12 pursuant to United States Code, title 8; section 1157; 14.13 (3) whose deportation is being withheld pursuant to United 14.14 States Code, title 8, section 1253(h); 14.15 (4) who was paroled for a period of at least one year 14.16 pursuant to United States Code, title 8, section 1182(d)(5); 14.17 (5) who was granted conditional entry pursuant to United 14.18 State Code, title 8, section 1153(a)(7); 14.19 (6) who was granted asylum pursuant to United States Code, 14.20 title 8, section 1158; or 14.21 (7) determined to be a battered noncitizen by the United 14.22 States Attorney General according to the Illegal Immigration 14.23 Reform and Immigrant Responsibility Act of 1996, Title V of the 14.24 Omnibus Consolidated Appropriations Act, Public Law Number 14.25 104-200. 14.26 Subd. 74. [REAL PROPERTY.] "Real property" means land and 14.27 all buildings, structures, and improvements, or other fixtures 14.28 on the land, belonging or appertaining to the land, and all 14.29 mines, minerals, fossils, and trees on or under the land. 14.30 Subd. 75. [REASONABLE COMPENSATION.] "Reasonable 14.31 compensation" means the value received in exchange for property 14.32 transferred to another owner that is consistent with fair market 14.33 value and equals or exceeds the seller's equity in the property, 14.34 reduced by costs incurred in the sale. 14.35 Subd. 76. [RECERTIFICATION.] "Recertification" means the 14.36 periodic review of eligibility factors to determine an 15.1 assistance unit's continued eligibility. 15.2 Subd. 77. [RECOUPMENT.] "Recoupment" means the action of 15.3 the county agency to reduce a family's monthly assistance 15.4 payment to recover overpayments caused by client or agency error 15.5 and overpayments received while an appeal is pending. 15.6 Subd. 78. [RECOVERY.] "Recovery" means actions taken by a 15.7 county agency to reclaim the value of overpayments through 15.8 voluntary repayment, recoupment from the assistance payment, 15.9 court action, revenue recapture, or federal tax refund offset 15.10 program (FRTOP). 15.11 Subd. 79. [RECURRING INCOME.] "Recurring income" means a 15.12 form of income which is: 15.13 (1) received periodically, and may be received irregularly 15.14 when receipt can be anticipated even though the date of receipt 15.15 cannot be predicted; and 15.16 (2) from the same source or of the same type that is 15.17 received and budgeted in a prospective month and is received in 15.18 one or both of the first two retrospective months. 15.19 Subd. 80. [REEMPLOYMENT INSURANCE.] "Reemployment 15.20 insurance" means the insurance benefit paid to an unemployed 15.21 worker under sections 268.03 to 268.23. 15.22 Subd. 81. [RETROSPECTIVE BUDGETING.] "Retrospective 15.23 budgeting" means a method of determining the amount of the 15.24 assistance payment in which the payment month is the second 15.25 month after the budget month. 15.26 Subd. 82. [SANCTION.] "Sanction" means the reduction of a 15.27 family's assistance payment by a specified percentage of the 15.28 applicable transitional standard because: a nonexempt 15.29 participant fails to comply with the requirements of sections 15.30 256J.52 to 256J.55; a parental caregiver fails without good 15.31 cause to cooperate with the child support enforcement 15.32 requirements; or a participant fails to comply with the 15.33 insurance, tort liability, or other requirements of this chapter. 15.34 Subd. 83. [SIGNIFICANT CHANGE.] "Significant change" means 15.35 a decline in gross income of 35 percent or more from the income 15.36 used to determine the grant for the current month. 16.1 Subd. 84. [SUPPLEMENTAL SECURITY INCOME OR 16.2 SSI.] "Supplemental Security Income" or "SSI" means the program 16.3 authorized under title XVI of the Social Security Act. 16.4 Subd. 85. [TRANSITIONAL STANDARD.] "Transitional standard" 16.5 means the basic standard for a family with no other income or a 16.6 nonworking family and is a combination of the cash assistance 16.7 needs and food assistance needs for a family of that size. 16.8 Subd. 86. [UNEARNED INCOME.] "Unearned income" means 16.9 income received by a person that does not meet the definition of 16.10 earned income. Unearned income includes income from a contract 16.11 for deed, interest, dividends, reemployment insurance, 16.12 disability insurance payments, veterans benefits, pension 16.13 payments, return on capital investment, insurance payments or 16.14 settlements, severance payments, and payments for illness or 16.15 disability whether the premium payments are made in whole or in 16.16 part by an employer or participant. 16.17 Subd. 87. [VENDOR.] "Vendor" means a provider of goods or 16.18 services. 16.19 Subdivisions 73 to 87 are effective January 1, 1998, except 16.20 the transitional provision in section 72 applies. 16.21 Subd. 88. [VENDOR PAYMENT.] "Vendor payment" means a 16.22 payment authorized by a county agency to a vendor. 16.23 Subd. 89. [VERIFICATION.] "Verification" means the process 16.24 a county agency uses to establish the accuracy or completeness 16.25 of information from an applicant, participant, third party, or 16.26 other source as that information relates to program eligibility 16.27 or an assistance payment. 16.28 Sec. 5. [256J.09] [APPLYING FOR ASSISTANCE.] 16.29 Subdivision 1. [WHERE TO APPLY.] A person must apply for 16.30 assistance at the county agency in the county where that person 16.31 lives. 16.32 Subd. 2. [COUNTY AGENCY RESPONSIBILITY TO PROVIDE 16.33 INFORMATION.] A county agency must inform a person who inquires 16.34 about assistance about eligibility requirements for assistance 16.35 and how to apply for assistance, including diversionary 16.36 assistance and emergency assistance. A county agency must offer 17.1 the person brochures developed or approved by the commissioner 17.2 that describe how to apply for assistance. 17.3 Subd. 3. [SUBMITTING THE APPLICATION FORM.] A county 17.4 agency must offer, in person or by mail, the application forms 17.5 prescribed by the commissioner as soon as a person makes a 17.6 written or oral inquiry. At that time, the county agency must 17.7 inform the person that assistance begins with the date the 17.8 signed application is received by the county agency or the date 17.9 all eligibility criteria are met, whichever is later. The 17.10 county agency must inform the applicant that any delay in 17.11 submitting the application will reduce the amount of assistance 17.12 paid for the month of application. A county agency must inform 17.13 a person that the person may submit the application before an 17.14 interview appointment. To apply for assistance, a person must 17.15 submit a signed application to the county agency. Upon receipt 17.16 of a signed application, the county agency must stamp the date 17.17 of receipt on the face of the application. The county agency 17.18 must process the application within the time period required 17.19 under subdivision 5. An applicant may withdraw the application 17.20 at any time by giving written or oral notice to the county 17.21 agency. The county agency must issue a written notice 17.22 confirming the withdrawal. The notice must inform the applicant 17.23 of the county agency's understanding that the applicant has 17.24 withdrawn the application and no longer wants to pursue it. 17.25 When, within ten days of the date of the agency's notice, an 17.26 applicant informs a county agency, in writing, that the 17.27 applicant does not wish to withdraw the application, the county 17.28 agency must reinstate the application and finish processing the 17.29 application. 17.30 Subd. 4. [VERIFICATION OF INFORMATION ON APPLICATION.] A 17.31 county agency must verify information provided by an applicant 17.32 as required in section 256J.32. 17.33 Subd. 5. [PROCESSING APPLICATIONS.] Upon receiving an 17.34 application, a county agency must determine the applicant's 17.35 eligibility, approve or deny the application, inform the 17.36 applicant of its decision according to the notice provisions in 18.1 section 256J.31, and, if eligible issue, the assistance payment 18.2 to the applicant. When a county agency is unable to process an 18.3 application within 30 days, the county agency must inform the 18.4 applicant of the reason for the delay in writing. When an 18.5 applicant establishes the inability to provide required 18.6 verifications within the 30-day processing period, the county 18.7 agency may not use the expiration of that period as the basis 18.8 for denial. 18.9 Subd. 6. [INVALID REASON FOR DELAY.] A county agency must 18.10 not delay a decision on eligibility or delay issuing the 18.11 assistance payment except to establish state residence by: 18.12 (1) treating the 30-day processing period as a waiting 18.13 period; 18.14 (2) delaying approval or issuance of the assistance payment 18.15 pending the decision of the county board; or 18.16 (3) awaiting the result of a referral to a county agency in 18.17 another county when the county receiving the application does 18.18 not believe it is the county of financial responsibility. 18.19 Subd. 7. [CHANGES IN RESIDENCE DURING APPLICATION.] The 18.20 requirements in subdivisions 5 and 6 apply without regard to the 18.21 length of time that an applicant remains, or intends to remain, 18.22 a resident of the county in which the application is made. When 18.23 an applicant leaves the county where application was made but 18.24 remains in the state, section 256J.75 applies and the county 18.25 agency may request additional information from the applicant 18.26 about changes in circumstances related to the move. 18.27 Subd. 8. [ADDITIONAL APPLICATIONS.] Until a county agency 18.28 issues notice of approval or denial, additional applications 18.29 submitted by an applicant are void. However, an application for 18.30 monthly assistance and an application for emergency assistance 18.31 or emergency general assistance may exist concurrently. More 18.32 than one application for monthly assistance, emergency 18.33 assistance, or emergency general assistance may exist 18.34 concurrently when the county agency decisions on one or more 18.35 earlier applications have been appealed to the commissioner, and 18.36 the applicant asserts that a change in circumstances has 19.1 occurred that would allow eligibility. A county agency must 19.2 require additional application forms or supplemental forms as 19.3 prescribed by the commissioner when a payee's name changes, or 19.4 when a caregiver requests the addition of another person to the 19.5 assistance unit. 19.6 Subd. 9. [ADDENDUM TO AN EXISTING APPLICATION.] An 19.7 addendum to an existing application must be used to add persons 19.8 to an assistance unit regardless of whether the persons being 19.9 added are required to be in the assistance unit. When a person 19.10 is added by addendum to an assistance unit, eligibility for that 19.11 person begins on the first of the month the addendum was filed 19.12 except as provided in section 256J.74, subdivision 2, clause (1). 19.13 Subd. 10. [APPLICANTS WHO DO NOT MEET ELIGIBILITY 19.14 REQUIREMENTS FOR MFIP-S.] When an applicant is not eligible for 19.15 MFIP-S because the applicant does not meet eligibility 19.16 requirements, the county agency must determine whether the 19.17 applicant is eligible for food stamps, Medical Assistance, 19.18 diversionary assistance, or has a need for emergency assistance 19.19 when the applicant meets the eligibility requirements for those 19.20 programs. 19.21 Section 5 is effective January 1, 1998, except the 19.22 transitional provision in section 72 applies. 19.23 ELIGIBILITY FOR MFIP 19.24 Sec. 6. [256J.10] [MFIP-S ELIGIBILITY REQUIREMENTS.] 19.25 To be eligible for MFIP-S, applicants must meet the general 19.26 eligibility requirements in sections 256J.11 to 256J.15, the 19.27 property limitations in section 256J.20, and the income 19.28 limitations in section 256J.21. 19.29 Section 6 is effective January 1, 1998, except the 19.30 transitional provision in section 72 applies. 19.31 Sec. 7. [256J.11] [CITIZENSHIP.] 19.32 Subdivision 1. [GENERAL CITIZENSHIP REQUIREMENTS.] (a) To 19.33 be eligible for AFDC or MFIP-S, a member of the assistance unit 19.34 must be a citizen of the United States, a qualified noncitizen 19.35 as defined in section 256J.08, or a noncitizen who is otherwise 19.36 residing lawfully in the United States. 20.1 (b) A qualified noncitizen who entered the United States on 20.2 or after August 22, 1996, is eligible for MFIP-S. However, TANF 20.3 dollars cannot be used to fund the MFIP-S benefits for an 20.4 individual under this paragraph for a period of five years after 20.5 the date of entry unless the qualified noncitizen meets one of 20.6 the following criteria: 20.7 (1) was admitted to the United States as a refugee under 20.8 United States Code, title 8, section 1157; 20.9 (2) was granted asylum under United States Code, title 8, 20.10 section 1158; 20.11 (3) was granted withholding of deportation under the United 20.12 States Code, title 8, section 1253(h); 20.13 (4) is a veteran of the United States Armed Forces with an 20.14 honorable discharge for a reason other than noncitizen status, 20.15 or is a spouse or unmarried minor dependent child of the same; 20.16 or 20.17 (5) is an individual on active duty in the United States 20.18 Armed Forces, other than for training, or is a spouse or 20.19 unmarried minor dependent child of the same. 20.20 (c) A person who is not a qualified noncitizen but who is 20.21 otherwise residing lawfully in the United States is eligible for 20.22 MFIP-S. However, TANF dollars cannot be used to fund the MFIP-S 20.23 benefits for an individual under this paragraph. 20.24 (d) For purposes of this subdivision, a nonimmigrant in one 20.25 or more of the classes listed in United States Code, title 8, 20.26 section 1101(a)(15), or an undocumented immigrant who resides in 20.27 the United States without the approval or acquiescence of the 20.28 Immigration and Naturalization Service, is not eligible for 20.29 MFIP-S. 20.30 Subd. 2. [NONCITIZENS INELIGIBLE FOR MFIP-S FOOD PORTION.] 20.31 Noncitizens who do not meet one of the exemptions in section 412 20.32 of the Personal Responsibility and Work Opportunity 20.33 Reconciliation Act of 1996 are eligible for the food portion of 20.34 MFIP-S. However, federal food stamp dollars cannot be used to 20.35 fund the food portion of MFIP-S benefits for an individual under 20.36 this subdivision. 21.1 Sec. 8. [256J.12] [MINNESOTA RESIDENCE.] 21.2 Subdivision 1. [RESIDENCY.] To be eligible for AFDC or 21.3 MFIP-S, a family must have established residency in this state. 21.4 A family is considered to have established residency in this 21.5 state when a child or caregiver has resided in this state for at 21.6 least 30 days with the intention of making a permanent home here 21.7 and not for any temporary purpose. Notwithstanding section 21.8 256G.03, time spent in a shelter for battered women shall count 21.9 toward satisfying the 30 day residency requirement. 21.10 Subd. 2. [HARDSHIP EXCEPTION.] (a) A county shall waive 21.11 the 30-day residency requirement where unusual hardship would 21.12 result from denial of assistance. 21.13 (b) For purposes of this section, unusual hardship means a 21.14 family: 21.15 (1) is without alternative shelter; or 21.16 (2) is without available resources for food. 21.17 (c) For purposes of this subdivision, the following 21.18 definitions apply (1) "metropolitan statistical area" is as 21.19 defined by the U.S. Census Bureau; (2) "alternative shelter" 21.20 includes any shelter that is located within the metropolitan 21.21 statistical area containing the county and for which the family 21.22 is eligible, provided the family does not have to travel more 21.23 than 20 miles to reach the shelter and has access to 21.24 transportation to the shelter. Clause (2) does not apply to 21.25 counties in the Minneapolis-St. Paul metropolitan statistical 21.26 area. 21.27 Subd. 3. [PAYMENT PLAN FOR NEW RESIDENTS.] Assistance paid 21.28 to an eligible family in which all members have resided in this 21.29 state for fewer than 12 calendar months shall be at the standard 21.30 and in the form specified in section 256J.43. 21.31 Sec. 9. [256J.13] [MINOR CHILD IN ASSISTANCE UNIT; 21.32 PHYSICAL PRESENCE.] 21.33 Subdivision 1. [MINOR CHILD OR PREGNANT WOMAN.] The 21.34 assistance unit must include at least one minor child or a 21.35 pregnant woman. If a minor child is a recipient of Supplemental 21.36 Security Income or Minnesota supplemental aid, the assistance 22.1 unit is eligible for MFIP-S, but the needs of the minor child 22.2 receiving Supplemental Security Income or Minnesota supplemental 22.3 aid must not be taken into account when the county agency 22.4 determines the amount of assistance to be paid to the assistance 22.5 unit. 22.6 Subd. 2. [PHYSICAL PRESENCE.] A minor child and a 22.7 caregiver must live together except as provided in the following 22.8 paragraphs. 22.9 (a) The physical presence requirement is met when a minor 22.10 child is required to live away from the caregiver's home to meet 22.11 the need for educational curricula that cannot be met by, but is 22.12 approved by, the local public school district, the home is 22.13 maintained for the minor child's return during periodic school 22.14 vacations, and the caregiver continues to maintain 22.15 responsibility for the support and care of the minor child. 22.16 (b) The physical presence requirement is met when a 22.17 caregiver or minor child is away from the home due to illness, 22.18 hospitalization, vacation, incarceration, or other short-term 22.19 absences, when the home is maintained for the return of the 22.20 absent family member, the absence is not expected to last more 22.21 than 30 days beyond the month of departure, and the conditions 22.22 of clause (1), (2), or (3) apply: 22.23 (1) when the minor child and caregiver lived together 22.24 immediately prior to the absence, the caregiver continues to 22.25 maintain responsibility for the support and care of the minor 22.26 child, and the absence is reported at the time of application; 22.27 (2) when the pregnant mother is hospitalized or out of the 22.28 home due to the pregnancy; or 22.29 (3) when the newborn child and mother are hospitalized at 22.30 the time of birth. 22.31 (c) The absence of a caregiver or minor child does not 22.32 affect eligibility for the month of departure when the caregiver 22.33 or minor child received assistance for that month and lived 22.34 together immediately prior to the absence. Eligibility also 22.35 exists in the following month when the absence ends on or before 22.36 the tenth day of that month. 23.1 Section 9 is effective January 1, 1998, except the 23.2 transitional provision in section 72 applies. 23.3 Sec. 10. [256J.14] [ELIGIBILITY FOR PARENTING OR PREGNANT 23.4 MINORS.] 23.5 Subdivision 1. [DEFINITIONS.] The definitions in this 23.6 subdivision only apply to this section. 23.7 (a) "Household of a parent, legal guardian, or other adult 23.8 relative" means the place of residence of: 23.9 (i) a natural or adoptive parent; 23.10 (ii) a legal guardian according to appointment or 23.11 acceptance under section 260.242, 525.615, or 525.6165, and 23.12 related laws; or 23.13 (iii) a relative caregiver. 23.14 (b) "Adult-supervised supportive living arrangement" means 23.15 a private family setting which assumes responsibility for the 23.16 care and control of the minor parent and minor child, or other 23.17 living arrangement, not including a public institution, licensed 23.18 by the commissioner of human services which ensures that the 23.19 minor parent receives adult supervision and supportive services, 23.20 such as counseling, guidance, independent living skills 23.21 training, or supervision. 23.22 Subd. 2. [RESTRICTIONS ON PLACE OF RESIDENCE.] A minor 23.23 parent and the minor child who is in the care of the minor 23.24 parent must reside in the household of a parent, legal guardian, 23.25 or other appropriate adult relative, or in an adult-supervised 23.26 supportive living arrangement in order to receive MFIP-S unless: 23.27 (1) the minor parent has no living parent or legal guardian 23.28 or other appropriate adult relative whose whereabouts is known; 23.29 (2) no living parent or legal guardian of the minor parent 23.30 or other appropriate adult relative allows the minor parent to 23.31 live in the parent's or legal guardian's home; 23.32 (3) the minor parent lived apart from the minor parent's 23.33 own parent, legal guardian, or other appropriate adult relative 23.34 for a period of at least one year before either the birth of the 23.35 minor child or the minor parent's application for MFIP-S; or 23.36 (4) the physical or emotional health or safety of the minor 24.1 parent or minor child would be jeopardized if the minor parent 24.2 and the minor child resided in the same residence with the minor 24.3 parent's parent, legal guardian, or other appropriate adult 24.4 relative. 24.5 Subd. 3. [NOTICE TO MINOR APPLICANTS REQUIRED.] Minor 24.6 applicants must be informed orally and in writing about the 24.7 eligibility requirements and their rights and obligations under 24.8 the MFIP-S program. The county must advise the minor of the 24.9 possible exemptions and specifically ask whether one or more of 24.10 these exemptions is applicable. If the minor alleges one or 24.11 more of these exemptions, then the county must assist the minor 24.12 in obtaining the necessary verifications to determine whether or 24.13 not these exemptions apply. 24.14 Subd. 4. [REFERRAL TO CHILD PROTECTION SERVICES.] If the 24.15 county worker has reason to suspect that the physical or 24.16 emotional health or safety of the minor parent or minor child 24.17 would be jeopardized if they resided with the minor parent's 24.18 parent or legal guardian, then the county worker must make a 24.19 referral to child protective services to determine if 24.20 subdivision 2, clause (4), applies. A new determination by the 24.21 county worker is not necessary if one has been made within the 24.22 last six months, unless there has been a significant change in 24.23 circumstances which justifies a new referral and determination. 24.24 Subd. 5. [RESIDENTS IN SUPPORTIVE LIVING ARRANGEMENTS.] If 24.25 a minor parent is not living with a parent or legal guardian due 24.26 to subdivision 2, clause (1), (2), or (4), the minor parent must 24.27 reside, when possible, in a living arrangement that meets the 24.28 definition of an adult-supervised supportive living arrangement. 24.29 Subd. 6. [PROTECTIVE PAYMENT.] When a minor parent and 24.30 minor child live with another adult relative, or in an 24.31 adult-supervised supportive living arrangement, MFIP-S must be 24.32 paid, when possible, in the form of a protective payment on 24.33 behalf of the minor parent and minor child in accordance with 24.34 section 256J.39, subdivisions 2 to 4. 24.35 Section 10 is effective January 1, 1998, except the 24.36 transitional provision in section 72 applies. 25.1 Sec. 11. [256J.15] [OTHER ELIGIBILITY CONDITIONS.] 25.2 Subdivision 1. [ELIGIBILITY WHEN THERE IS SHARED, COURT 25.3 ORDERED, AND OTHER CUSTODY ARRANGEMENTS.] The language of a 25.4 court order that specifies joint legal or physical custody does 25.5 not preclude a determination that a parent is absent. Absence 25.6 must be determined based on the actual facts of the absence 25.7 according to paragraphs (a) to (c). 25.8 (a) When a minor child spends time in each of the parents' 25.9 homes within a payment month, the minor child's home shall be 25.10 considered the home in which the majority of the minor child's 25.11 time is spent. When this time is exactly equal within a payment 25.12 month, or when the parents alternately live in the minor child's 25.13 home within a payment month, the minor child's home shall be 25.14 with that parent who is applying for MFIP, unless the minor 25.15 child's needs for the full payment month have already been met 25.16 through the provision of assistance to the other parent for that 25.17 month. 25.18 (b) When the physical custody of a minor child alternates 25.19 between parents for periods of at least one payment month, each 25.20 parent shall be eligible for assistance for any full payment 25.21 months the minor child's home is with that parent, except under 25.22 the conditions in paragraph (c). 25.23 (c) When a minor child's home is with one parent for the 25.24 majority of time in each month for at least nine consecutive 25.25 calendar months, and that minor child visits or vacations with 25.26 the other parent under section 256J.13, the minor child's home 25.27 remains with the first parent even when the stay with the second 25.28 parent is for all or the majority of the months in the period of 25.29 the temporary absence. 25.30 Subd. 2. [ELIGIBILITY DURING LABOR DISPUTES.] To receive 25.31 assistance under MFIP-S, a member of an assistance unit who is 25.32 on strike must have been an MFIP-S participant on the day before 25.33 the strike, or have been eligible for MFIP-S on the day before 25.34 the strike. 25.35 The county agency must count the striker's prestrike 25.36 earnings as current earnings. When a member of an assistance 26.1 unit who is not in the bargaining unit that voted for the strike 26.2 does not cross the picket line for fear of personal injury, the 26.3 assistance unit member is not a striker. Except for a member of 26.4 an assistance unit who is not in the bargaining unit that voted 26.5 for the strike and who does not cross the picket line for fear 26.6 of personal injury, a significant change cannot be invoked as a 26.7 result of a labor dispute. 26.8 This subdivision is effective January 1, 1998, except the 26.9 transitional provision in section 72 applies. 26.10 Sec. 12. [256J.20] [PROPERTY LIMITATIONS.] 26.11 Subdivision 1. [PROPERTY OWNERSHIP PROVISIONS.] The county 26.12 agency must apply paragraphs (a) to (d) to real and personal 26.13 property. The county agency must use the equity value of 26.14 legally available real and personal property, except property 26.15 excluded in subdivisions 2 and 3, to determine whether an 26.16 applicant or participant is eligible for assistance. 26.17 (a) When real or personal property is jointly owned by two 26.18 or more persons, the county agency shall assume that each person 26.19 owns an equal share, except that either person owns the entire 26.20 sum of a joint personal checking or savings account. When an 26.21 applicant or participant documents greater or lesser ownership, 26.22 the county agency must use that greater or lesser share to 26.23 determine the equity value held by the applicant or 26.24 participant. Other types of ownership must be evaluated 26.25 according to law. 26.26 (b) Real or personal property owned by the applicant or 26.27 participant must be presumed legally available to the applicant 26.28 or participant unless the applicant or participant documents 26.29 that the property is not legally available to the applicant or 26.30 participant. When real or personal property is not legally 26.31 available, its equity value must not be applied against the 26.32 limits of subdivisions 2 and 3. 26.33 (c) An applicant must disclose whether the applicant has 26.34 transferred real or personal property valued in excess of the 26.35 property limits in subdivisions 2 and 3 for which reasonable 26.36 compensation was not received within one year prior to 27.1 application. A participant must disclose all transfers of 27.2 property valued in excess of these limits, according to the 27.3 reporting requirements in section 256J.30, subdivision 9. When 27.4 a transfer of real or personal property without reasonable 27.5 compensation has occurred: 27.6 (1) the person who transferred the property must provide 27.7 the property's description, information needed to determine the 27.8 property's equity value, the names of the persons who received 27.9 the property, and the circumstances of and reasons for the 27.10 transfer; and 27.11 (2) when the transferred property can be reasonably 27.12 reacquired, or when reasonable compensation can be secured, the 27.13 property is presumed legally available to the applicant or 27.14 participant. 27.15 (d) A participant may build the equity value of real and 27.16 personal property to the limits in subdivisions 2 and 3. 27.17 Subd. 2. [REAL PROPERTY LIMITATIONS.] Ownership of real 27.18 property by an applicant or participant is subject to the 27.19 limitations in paragraphs (a) and (b). 27.20 (a) A county agency shall exclude the homestead of an 27.21 applicant or participant according to clauses (1) to (4): 27.22 (1) an applicant or participant who is purchasing real 27.23 property through a contract for deed and using that property as 27.24 a home is considered the owner of real property; 27.25 (2) the total amount of land that can be excluded under 27.26 this subdivision is limited to surrounding property which is not 27.27 separated from the home by intervening property owned by 27.28 others. Additional property must be assessed as to its legal 27.29 and actual availability according to subdivision 1; 27.30 (3) when real property that has been used as a home by a 27.31 participant is sold, the county agency must treat the cash 27.32 proceeds from the sale as excluded property for six months when 27.33 the participant intends to reinvest the proceeds in another home 27.34 and maintains those proceeds, unused for other purposes, in a 27.35 separate account; and 27.36 (4) when the homestead is jointly owned, but the client 28.1 does not reside in it because of legal separation, pending 28.2 divorce; or battering or abuse by the spouse or partner, the 28.3 homestead is excluded. 28.4 (b) The equity value of real property that is not excluded 28.5 under paragraph (a) and which is legally available must be 28.6 applied against the limits in subdivision 3. When the equity 28.7 value of the real property exceeds the limits under subdivision 28.8 3, the applicant or participant may qualify to receive 28.9 assistance when the applicant or participant continues to make a 28.10 good faith effort to sell the property and signs a legally 28.11 binding agreement to repay the amount of assistance, less child 28.12 support collected by the agency. Repayment must be made within 28.13 five working days after the property is sold. Repayment to the 28.14 county agency must be in the amount of assistance received or 28.15 the proceeds of the sale, whichever is less. 28.16 Subd. 3. [OTHER PROPERTY LIMITATIONS.] To be eligible for 28.17 MFIP-S, the equity value of all nonexcluded real and personal 28.18 property of the assistance unit must not exceed $2,000 for 28.19 applicant families and $5,000 for ongoing recipient families. 28.20 The value of clauses (1) to (17) must be excluded when 28.21 determining the equity value of real and personal property: 28.22 (1) for each working member of the assistance unit, a 28.23 licensed automobile, truck, or van each with a fair market value 28.24 no greater than the amount excluded under the food stamp 28.25 program, provided that each assistance unit is allowed to 28.26 exclude at least one vehicle subject to the value limit in this 28.27 clause. The value of special equipment for a handicapped member 28.28 of the assistance unit is excluded. The fair market value of a 28.29 vehicle is the value listed in the N.A.D.A. Official Used Car 28.30 Guide, Midwest Edition, for newer model cars. Amounts in excess 28.31 of the exclusion are counted against the property limits 28.32 specified in this subdivision; 28.33 (2) the value of life insurance policies for members of the 28.34 assistance unit; 28.35 (3) one burial plot per member of an assistance unit; 28.36 (4) the value of personal property needed to produce earned 29.1 income, including tools, implements, farm animals, inventory, 29.2 business loans, business checking and savings accounts used 29.3 exclusively for the operation of a self-employment business, and 29.4 any motor vehicles if the vehicles are essential for the 29.5 self-employment business; 29.6 (5) the value of personal property not otherwise specified 29.7 which is commonly used by household members in day-to-day living 29.8 such as clothing, necessary household furniture, equipment, and 29.9 other basic maintenance items essential for daily living; 29.10 (6) the value of real and personal property owned by a 29.11 recipient of Social Security Income or Minnesota supplemental 29.12 aid; 29.13 (7) the value of corrective payments, but only for the 29.14 month in which the payment is received and for the following 29.15 month; 29.16 (8) a mobile home used by an applicant or participant as 29.17 the applicant's or participant's home; 29.18 (9) money in a separate escrow account that is needed to 29.19 pay real estate taxes or insurance and that is used for this 29.20 purpose; 29.21 (10) money held in escrow to cover employee FICA, employee 29.22 tax withholding, sales tax withholding, employee worker 29.23 compensation, business insurance, property rental, property 29.24 taxes, and other costs that are paid at least annually, but less 29.25 often than monthly; 29.26 (11) monthly assistance and emergency assistance payments 29.27 for the current month's needs; 29.28 (12) the value of school loans, grants, or scholarships for 29.29 the period they are intended to cover; 29.30 (13) payments listed in section 256J.21, subdivision 2, 29.31 clause (9), which are held in escrow for a period not to exceed 29.32 three months to replace or repair personal or real property; 29.33 (14) income received in a budget month through the end of 29.34 the budget month; 29.35 (15) savings of a minor child or a minor parent that are 29.36 set aside in a separate account designated specifically for 30.1 future education or employment costs; 30.2 (16) the earned income tax credit and Minnesota working 30.3 family credit in the month received the following month; 30.4 (17) payments excluded under federal law as long as those 30.5 payments are held in a separate account from any nonexcluded 30.6 funds; and 30.7 (18) money received by a participant of the corps to career 30.8 program under section 84.0887, subdivision 2, paragraph (b), as 30.9 a postservice benefit under the federal Americorps Act. 30.10 Section 12 is effective January 1, 1998, except the 30.11 transitional provision in section 72 applies. 30.12 Sec. 13. [256J.21] [INCOME LIMITATIONS.] 30.13 Subdivision 1. [INCOME INCLUSIONS.] To determine MFIP-S 30.14 eligibility, the county agency must evaluate income received by 30.15 members of an assistance unit, or by other persons whose income 30.16 is considered available to the assistance unit. All payments, 30.17 unless specifically excluded in subdivision 2, must be counted 30.18 as income. 30.19 Subd. 2. [INCOME EXCLUSIONS.] (a) The following must be 30.20 excluded in determining a family's available income: 30.21 (1) payments for basic care, difficulty of care, and 30.22 clothing allowances received for providing family foster care to 30.23 children or adults under Minnesota Rules, parts 9545.0010 to 30.24 9545.0260 and 9555.5050 to 9555.6265, and payments received and 30.25 used for care and maintenance of a third-party beneficiary who 30.26 is not a household member; 30.27 (2) reimbursements for employment training received through 30.28 the Job Training Partnership Act, United States Code, title 29, 30.29 chapter 19, sections 1501 to 1792b; 30.30 (3) reimbursement for out-of-pocket expenses incurred while 30.31 performing volunteer services, jury duty, or employment; 30.32 (4) all educational assistance, except the county agency 30.33 must count graduate student teaching assistantships, 30.34 fellowships, and other similar paid work as earned income and, 30.35 after allowing deductions for any unmet and necessary 30.36 educational expenses, must count as unearned income all 31.1 scholarships or grants awarded to graduate students that do not 31.2 require teaching or research; 31.3 (5) loans, regardless of purpose, from public or private 31.4 lending institutions, governmental lending institutions, or 31.5 governmental agencies; 31.6 (6) loans from private individuals, regardless of purpose, 31.7 provided an applicant or participant documents that the lender 31.8 expects repayment; 31.9 (7) state and federal income tax refunds; 31.10 (8) state and federal earned income credits; 31.11 (9) funds received for reimbursement, replacement, or 31.12 rebate of personal or real property when these payments are made 31.13 by public agencies, awarded by a court, solicited through public 31.14 appeal, or made as a grant by a federal agency, state or local 31.15 government, or disaster assistance organizations, subsequent to 31.16 a presidential declaration of disaster; 31.17 (10) the portion of an insurance settlement that is used to 31.18 pay medical, funeral, and burial expenses, or to repair or 31.19 replace insured property; 31.20 (11) reimbursements for medical expenses that cannot be 31.21 paid by Medical Assistance; 31.22 (12) payments by a vocational rehabilitation program 31.23 administered by the state under chapter 268A, except those 31.24 payments that are for current living expenses; 31.25 (13) in-kind income, including any payments directly made 31.26 by a third party to a provider of goods and services; 31.27 (14) assistance payments to correct underpayments, but only 31.28 for the month in which the payment is received; 31.29 (15) emergency assistance payments; 31.30 (16) funeral and cemetery payments as provided by section 31.31 256.935; 31.32 (17) nonrecurring cash gifts of $30 or less, not exceeding 31.33 $30 per participant in a calendar month; 31.34 (18) any form of energy assistance payment made through 31.35 LIHEAP, payments made directly to energy providers by other 31.36 public and private agencies, and any form of credit or rebate 32.1 payment issued by energy providers; 32.2 (19) Supplemental Security Income, including retroactive 32.3 payments; 32.4 (20) Minnesota supplemental aid, including retroactive 32.5 payments; 32.6 (21) proceeds from the sale of real or personal property; 32.7 (22) adoption assistance payments under section 259.67; 32.8 (23) state-funded family subsidy program payments made 32.9 under section 252.32 to help families care for children with 32.10 mental retardation or related conditions; 32.11 (24) interest payments and dividends from property that is 32.12 not excluded from and that does not exceed the asset limit; 32.13 (25) rent rebates; 32.14 (26) income earned by a minor caregiver or minor child who 32.15 has not attained the age of 20 and is at least a half-time 32.16 student; 32.17 (27) MFIP-S child care payments under section 119B.05; 32.18 (28) all other payments made through MFIP-S to support a 32.19 caregiver's pursuit of greater self-support; 32.20 (29) income a participant receives related to shared living 32.21 expenses; 32.22 (30) reverse mortgages; 32.23 (31) benefits provided by the Child Nutrition Act of 1966, 32.24 United States Code, title 42, chapter 13A, sections 1771 to 32.25 1790; 32.26 (32) benefits provided by the women, infants, and children 32.27 (WIC) nutrition program, United States Code, title 42, chapter 32.28 13A, section 1786; 32.29 (33) benefits from the National School Lunch Act, United 32.30 States Code, title 42, chapter 13, sections 1751 to 1769e; 32.31 (34) relocation assistance for displaced persons under the 32.32 Uniform Relocation Assistance and Real Property Acquisition 32.33 Policies Act of 1970, United States Code, title 42, chapter 61, 32.34 subchapter II, section 4636, or the National Housing Act, United 32.35 States Code, title 12, chapter 13, sections 1701 to 1750jj; 32.36 (35) benefits from the Trade Act of 1974, United States 33.1 Code, title 19, chapter 12, part 2, sections 2271 to 2322; 33.2 (36) war reparations payments to Japanese Americans and 33.3 Aleuts under United States Code, title 50, sections 1989 to 33.4 1989d; 33.5 (37) payments to veterans or their dependents as a result 33.6 of legal settlements regarding Agent Orange or other chemical 33.7 exposure under Public Law Number 101-239, section 10405, 33.8 paragraph (a)(2)(E); 33.9 (38) security utility deposit refunds; 33.10 (39) American Indian tribal land settlements excluded under 33.11 Public Law Numbers 98-123, 98-124, and 99-377 to the Mississippi 33.12 Band Chippewa Indians of White Earth, Leech Lake, and Mille Lacs 33.13 reservations and payments to members of the White Earth Band, 33.14 under United States Code, title 25, chapter 9, section 331, and 33.15 chapter 16, section 1407; and 33.16 (40) income that is otherwise specifically excluded from 33.17 MFIP-S consideration in federal law, state law, or federal 33.18 regulation. 33.19 (b) When determining income of members of the family who do 33.20 not elect to be included in the assistance unit, the county 33.21 agency shall count the remaining income after disregarding: 33.22 (1) all income of the minor parent's parent when 33.23 determining the grant for the minor parent in households that 33.24 include a minor parent living with a parent on MFIP-S with other 33.25 dependent children. The standard of need for the minor parent 33.26 is equal to the standard of need available if the minor parent's 33.27 parent was not a recipient of MIFP-S; and 33.28 (2) income of the minor parent's parent equal to 200 33.29 percent of the federal poverty guideline for a family size not 33.30 including the minor parent and the minor parent's child in 33.31 households that include a minor parent living with a parent not 33.32 on MFIP-S when determining the grant for the minor parent. The 33.33 remainder of income is deemed under Code of Federal Regulations, 33.34 title 45, section 233.20(a)(3)(xviii) in effect on August 21, 33.35 1996. 33.36 Subd. 3. [INITIAL INCOME TEST.] The county agency shall 34.1 determine initial eligibility by considering all earned and 34.2 unearned income that is not excluded under subdivision 2. To be 34.3 eligible for MFIP-S, the assistance unit's countable income 34.4 minus the disregards in paragraphs (a) to (c) must be below the 34.5 transitional standard of assistance according to section 256J.24 34.6 for that size assistance unit. 34.7 (a) The initial eligibility determination must disregard 34.8 the following items: 34.9 (1) the employment disregard is 18 percent of the gross 34.10 earned income whether or not the member is working full time or 34.11 part time; 34.12 (2) dependent care costs must be deducted from gross earned 34.13 income for the actual amount paid for dependent care up to the 34.14 maximum disregard allowed under this chapter and chapter 119B; 34.15 and 34.16 (3) all payments made according to a court order for the 34.17 support of children not living in the assistance unit's 34.18 household shall be disregarded from the income of the person 34.19 with the legal obligation to pay support, provided that, if 34.20 there has been a change in the financial circumstances of the 34.21 person with the legal obligation to pay support since the 34.22 support order was entered, the person with the legal obligation 34.23 to pay support has petitioned for a modification of the support 34.24 order. 34.25 (b) Notwithstanding paragraph (a), when determining initial 34.26 eligibility for applicants who have received AFDC, family 34.27 general assistance, MFIP, MFIP-R, work first, or MFIP-S in this 34.28 state within four months of the most recent application for 34.29 MFIP-S, the employment disregard is 35 percent of the gross 34.30 earned income. 34.31 After initial eligibility is established, the assistance 34.32 payment calculation is based on the monthly income test. 34.33 Subd. 4. [MONTHLY INCOME TEST AND DETERMINATION OF 34.34 ASSISTANCE PAYMENT.] The county agency shall determine ongoing 34.35 eligibility and the assistance payment amount according to the 34.36 monthly income test. To be eligible for MFIP-S, the result of 35.1 the computations in paragraphs (a) to (d) must be at least one 35.2 dollar. 35.3 (a) Apply a 35 percent income disregard to gross earnings 35.4 and subtract this amount from the family wage level. If the 35.5 difference is equal to or greater than the transitional 35.6 standard, the assistance payment is equal to the transitional 35.7 standard. If the difference is less than the transitional 35.8 standard, the assistance payment is equal to the difference. 35.9 The employment disregard in this paragraph must be deducted 35.10 every month there is earned income. 35.11 (b) All payments made according to a court order for the 35.12 support of children not living in the assistance unit's 35.13 household shall be disregarded from the income of the person 35.14 with the legal obligation to pay support, provided that, if 35.15 there has been a change in the financial circumstances of the 35.16 person with the legal obligation to pay support since the 35.17 support order was entered, the person with the legal obligation 35.18 to pay support has petitioned for a modification of the support 35.19 order. 35.20 (c) Subtract unearned income dollar for dollar from the 35.21 transitional standard to determine the assistance payment amount. 35.22 (d) When income is both earned and unearned, the amount of 35.23 the assistance payment must be determined by first treating 35.24 gross earned income as specified in paragraph (a). After 35.25 determining the amount of the assistance payment under paragraph 35.26 (a), unearned income must be subtracted from that amount dollar 35.27 for dollar to determine the assistance payment amount. 35.28 (e) When the monthly income is greater than the 35.29 transitional or family wage level standard after applicable 35.30 deductions and the income will only exceed the standard for one 35.31 month, the county agency must suspend the assistance payment for 35.32 the payment month. 35.33 Subd. 5. [DISTRIBUTION OF INCOME.] The income of all 35.34 members of the assistance unit must be counted. Income may also 35.35 be deemed from ineligible persons to the assistance unit. 35.36 Income must be attributed to the person who earns it or to the 36.1 assistance unit according to paragraphs (a) to (c). 36.2 (a) Funds distributed from a trust, whether from the 36.3 principal holdings or sale of trust property or from the 36.4 interest and other earnings of the trust holdings, must be 36.5 considered income when the income is legally available to an 36.6 applicant or participant. Trusts are presumed legally available 36.7 unless an applicant or participant can document that the trust 36.8 is not legally available. 36.9 (b) Income from jointly owned property must be divided 36.10 equally among property owners unless the terms of ownership 36.11 provide for a different distribution. 36.12 (c) Deductions are not allowed from the gross income of a 36.13 financially responsible household member or by the members of an 36.14 assistance unit to meet a current or prior debt. 36.15 Section 13 is effective January 1, 1998, except the 36.16 transitional provision in section 72 applies. 36.17 Sec. 14. [256J.24] [FAMILY COMPOSITION AND ASSISTANCE 36.18 STANDARDS.] 36.19 Subdivision 1. [MFIP-S ASSISTANCE UNIT.] An MFIP-S 36.20 assistance unit is either a group of individuals with at least 36.21 one minor child who live together whose needs, assets, and 36.22 income are considered together and who receive MFIP-S 36.23 assistance, or a pregnant woman who receives MFIP-S assistance. 36.24 Individuals identified in subdivision 2 must be included in the 36.25 MFIP-S assistance unit. Individuals identified in subdivision 3 36.26 must be excluded from the assistance unit. Individuals 36.27 identified in subdivision 4 may be included in the assistance 36.28 unit at their option. Individuals not included in the 36.29 assistance unit who are identified in section 256J.37, 36.30 subdivision 1 or 2, must have their income considered when 36.31 determining eligibility and benefits for an MFIP-S assistance 36.32 unit. All assistance unit members, whether mandatory or 36.33 elective, who live together and for whom one caregiver or two 36.34 caregivers apply must be included in a single assistance unit. 36.35 Subd. 2. [MANDATORY ASSISTANCE UNIT COMPOSITION.] When the 36.36 following individuals live together, they must be included in 37.1 the assistance unit: 37.2 (1) a minor child; 37.3 (2) the minor child's siblings, half-siblings, and 37.4 step-siblings; and 37.5 (3) the minor child's natural, adoptive parents, and 37.6 stepparents. 37.7 Subd. 3. [INDIVIDUALS WHO MUST BE EXCLUDED FROM AN 37.8 ASSISTANCE UNIT.] The following individuals must be excluded 37.9 from an assistance unit: 37.10 (1) individuals receiving Supplemental Security Income or 37.11 Minnesota supplemental aid; 37.12 (2) individuals living at home while performing 37.13 court-imposed, unpaid community service work due to a criminal 37.14 conviction; 37.15 (3) individuals disqualified from the food stamp program or 37.16 MFIP-S, until the disqualification ends; and 37.17 (4) children on whose behalf foster care payments under 37.18 title IV-E of the Social Security Act are made, except as 37.19 provided in section 256J.74, subdivision 2. 37.20 Subd. 4. [INDIVIDUALS WHO MAY ELECT TO BE INCLUDED IN THE 37.21 ASSISTANCE UNIT.] The minor child's eligible relative caregiver 37.22 may choose to be in the assistance unit. If the relative 37.23 caregiver chooses to be in the assistance unit, that person's 37.24 spouse must also be in the unit. 37.25 Subd. 5. [MFIP-S TRANSITIONAL STANDARD.] The following 37.26 table represents the MFIP-S transitional standard table when all 37.27 members of the assistance unit are eligible for both food and 37.28 cash assistance. 37.29 Number of Eligible People Standard 37.30 1 $344 37.31 2 $596 37.32 3 $747 37.33 4 $884 37.34 5 $1,003 37.35 6 $1,140 37.36 7 $1,246 38.1 8 $1,373 38.2 9 $1,498 38.3 10 $1,618 38.4 over 10 add $118 per additional member. 38.5 The commissioner shall annually publish in the State 38.6 Register the transitional standard for an assistance unit size 1 38.7 to 10. 38.8 Subd. 6. [APPLICATION OF ASSISTANCE STANDARDS.] The 38.9 standards apply to the number of eligible persons in the 38.10 assistance unit. 38.11 Subd. 6a. [ASSISTANCE VENDOR PAID IF CHILD BORN TO 38.12 RECIPIENT.] If a woman receiving assistance as a caregiver of an 38.13 MFIP-S assistance unit delivers a child born at least ten months 38.14 after the woman begins receiving MFIP-S assistance, benefits 38.15 paid to the assistance unit under this section shall be vendor 38.16 paid for rent and utilities up to the amount of the MFIP-S 38.17 grant. The residual amount of the grant after vendor payment, 38.18 if any, shall be paid to the caregiver. 38.19 Subd. 7. [FAMILY WAGE LEVEL STANDARD.] The family wage 38.20 level standard is 109 percent of the transitional standard under 38.21 subdivision 5 and is the standard used when there is earned 38.22 income in the assistance unit. As specified in section 256J.21, 38.23 earned income is subtracted from the family wage level to 38.24 determine the amount of the assistance payment. Assistance 38.25 payments may not exceed the transitional standard for the 38.26 assistance unit. 38.27 Section 14 is effective January 1, 1998, except the 38.28 transitional provision in section 72 applies. 38.29 Sec. 15. [256J.26] [PERSONS INELIGIBLE.] 38.30 Subdivision 1. [PERSON CONVICTED OF DRUG OFFENSES.] (a) If 38.31 an applicant has been convicted of a drug offense after July 1, 38.32 1997, the assistance unit is ineligible for AFDC or MFIP-S 38.33 benefits until five years after the applicant has completed 38.34 terms of the court-ordered sentence. This subdivision also 38.35 applies to persons who receive food stamps under section 115 of 38.36 the Personal Responsibility and Work Opportunity Reconciliation 39.1 Act of 1996. 39.2 (b) For the purposes of this subdivision, "drug offense" 39.3 means a conviction that occurred after July 1, 1997, of sections 39.4 152.021 to 152.025, 152.0261, or 152.096. Drug offense also 39.5 means a conviction in another jurisdiction of the possession, 39.6 use, or distribution of a controlled substance, or conspiracy to 39.7 commit any of these offenses, if the offense occurred after July 39.8 1, 1997, and the conviction is a felony offense in that 39.9 jurisdiction, or in the case of New Jersey, a high misdemeanor. 39.10 Subd. 2. [PAROLE VIOLATORS.] An individual violating a 39.11 condition of probation or parole imposed under federal or state 39.12 law is ineligible to receive AFDC or MFIP-S. 39.13 Subd. 3. [FLEEING FELONS.] An individual who is fleeing to 39.14 avoid prosecution, or custody, or confinement after conviction 39.15 for a crime that is a felony under the laws of the jurisdiction 39.16 from which the individual flees, or in the case of New Jersey, 39.17 is a high misdemeanor, is ineligible to receive AFDC or MFIP-S. 39.18 Subd. 4. [DENIAL OF ASSISTANCE FOR TEN YEARS TO A PERSON 39.19 FOUND TO HAVE FRAUDULENTLY MISREPRESENTED RESIDENCY.] An 39.20 individual who is convicted in federal or state court of having 39.21 made a fraudulent statement or representation with respect to 39.22 the place of residence of the individual in order to receive 39.23 assistance simultaneously from two or more states is ineligible 39.24 to receive AFDC or MFIP-S for ten years beginning on the date of 39.25 the conviction. 39.26 Sec. 16. [256J.28] [PROVISIONS RELATED SPECIFICALLY TO 39.27 FOOD STAMP ASSISTANCE.] 39.28 Subdivision 1. [EXPEDITED ISSUANCE OF FOOD STAMP 39.29 ASSISTANCE.] The following households are entitled to expedited 39.30 issuance of food stamp assistance: 39.31 (1) households with less than $150 in monthly gross income 39.32 provided their liquid assets do not exceed $100; 39.33 (2) migrant or seasonal farm worker households who are 39.34 destitute as defined in Code of Federal Regulations, title 7, 39.35 subtitle B, chapter 2, subchapter C, part 273, section 273.10, 39.36 paragraph (e)(3), provided their liquid assets do not exceed 40.1 $100; and 40.2 (3) eligible households whose combined monthly gross income 40.3 and liquid assets are less than the household's monthly rent or 40.4 mortgage and utilities. 40.5 The benefits issued through expedited issuance of food 40.6 stamp assistance must be deducted from the amount of the full 40.7 monthly MFIP-S assistance payment and a supplemental payment for 40.8 the difference must be issued. 40.9 Subd. 2. [FOOD STAMPS FOR HOUSEHOLD MEMBERS NOT IN THE 40.10 ASSISTANCE UNIT.] For household members who purchase and prepare 40.11 food with the MFIP-S assistance unit but are not part of the 40.12 assistance unit, the county agency must determine a separate 40.13 food stamp benefit based on regulations agreed upon with the 40.14 United States department of agriculture. 40.15 This subdivision does not apply to optional members who 40.16 have chosen not to be in the assistance unit. 40.17 Fair hearing requirements for persons who receive food 40.18 stamps under this subdivision are governed by section 256.045, 40.19 and Code of Federal Regulations, title 7, subtitle B, chapter 40.20 II, part 273, section 273.15. 40.21 This subdivision is effective January 1, 1998, except the 40.22 transitional provision in section 72 applies. 40.23 Subd. 3. [INCOME DISREGARD FOR CERTAIN PROGRAMS, FOOD 40.24 ASSISTANCE PORTION OF ASSISTANCE PAYMENT.] The portion of the 40.25 MFIP-S assistance payment that is designated by the commissioner 40.26 as the food assistance portion of the assistance payment must be 40.27 disregarded as income in the following programs: 40.28 (1) housing subsidy programs; 40.29 (2) low-income home energy assistance program; 40.30 (3) Supplemental Security Income, when determining interim 40.31 assistance amount; and 40.32 (4) other programs that do not count food stamps as income. 40.33 For the purposes of this subdivision, the food assistance 40.34 portion of the assistance payment means a predetermined portion 40.35 of the MFIP-S assistance payment that may be received in 40.36 point-of-purchase sites or as food stamps. The predetermined 41.1 portion of the assistance payment varies by family profile, 41.2 which is based on family size. 41.3 This subdivision is effective January 1, 1998, except the 41.4 transitional provision in section 72 applies. 41.5 Sec. 17. [256J.30] [APPLICANT AND PARTICIPANT REQUIREMENTS 41.6 AND RESPONSIBILITIES.] 41.7 Subdivision 1. [APPLICANT REPORTING REQUIREMENTS.] An 41.8 applicant must provide information on an application form and 41.9 supplemental forms about the applicant's circumstances which 41.10 affect MFIP-S eligibility or the assistance payment. An 41.11 applicant must report changes identified in subdivision 9 while 41.12 the application is pending. When an applicant does not 41.13 accurately report information on an application, both an 41.14 overpayment and a referral for a fraud investigation may 41.15 result. When an applicant does not provide information or 41.16 documentation, the receipt of the assistance payment may be 41.17 delayed or the application may be denied depending on the type 41.18 of information required and its effect on eligibility. 41.19 Subd. 2. [REQUIREMENT TO APPLY FOR OTHER BENEFITS.] An 41.20 applicant or participant must apply for and follow through with 41.21 appealing any denials of eligibility for benefits from other 41.22 programs for which the applicant or participant is potentially 41.23 eligible and which would, if received, offset assistance 41.24 payments. An applicant's or participant's failure to complete 41.25 application for these benefits without good cause results in 41.26 denial or termination of assistance. Good cause for failure to 41.27 apply for these benefits is allowed when circumstances beyond 41.28 the control of the applicant or participant prevent the 41.29 applicant or participant from making an application. 41.30 Subd. 3. [RESPONSIBILITY TO INQUIRE.] An applicant or 41.31 participant who does not know or is unsure whether a given 41.32 change in circumstances will affect the applicant's or 41.33 participant's MFIP-S eligibility or assistance payment must 41.34 contact the county agency for information. 41.35 Subd. 4. [PARTICIPANT'S COMPLETION OF RECERTIFICATION OF 41.36 ELIGIBILITY FORM.] A participant must complete forms prescribed 42.1 by the commissioner which are required for recertification of 42.2 eligibility according to section 256J.32, subdivision 6. 42.3 Subd. 5. [MONTHLY MFIP-S HOUSEHOLD REPORTS.] Each 42.4 assistance unit with a member who has earned income or a recent 42.5 work history, and each assistance unit that has income allocated 42.6 to it from a financially responsible person, must complete a 42.7 monthly MFIP-S household report form. "Recent work history" 42.8 means the individual received earned income in the report month 42.9 or any of the previous three calendar months even if the 42.10 earnings are excluded. To be complete, the MFIP-S household 42.11 report form must be signed and dated by the caregivers no 42.12 earlier than the last day of the reporting period. All 42.13 questions required to determine assistance payment eligibility 42.14 must be answered, and documentation of earned income must be 42.15 included. 42.16 Subd. 6. [SIX-MONTH MFIP-S HOUSEHOLD REPORT.] Assistance 42.17 units that are not required to report monthly under subdivision 42.18 5 must complete an MFIP-S household report form every six 42.19 months. To be complete, the MFIP-S household report form must 42.20 be signed and dated by the caregiver or caregivers no earlier 42.21 than the last day of the reporting period. All questions 42.22 required to determine assistance payment eligibility must be 42.23 answered and documentation of earned income must be included. 42.24 Subd. 7. [DUE DATE OF MFIP-S HOUSEHOLD REPORT.] An MFIP-S 42.25 household report form must be received by the county agency by 42.26 the eighth calendar day of the month following the reporting 42.27 period covered by the form. When the eighth calendar day of the 42.28 month falls on a weekend or holiday, the MFIP-S household report 42.29 form must be received by the county agency by the first working 42.30 day that follows the eighth calendar day. The county agency 42.31 must send a notice of termination because of a late or 42.32 incomplete MFIP-S household report form. 42.33 Subd. 8. [LATE MFIP-S HOUSEHOLD REPORT FORMS.] Paragraphs 42.34 (a) to (d) apply to the reporting requirements in subdivision 7. 42.35 (a) When a caregiver submits an incomplete MFIP-S household 42.36 report form before the last working day of the month on which a 43.1 ten-day notice of termination can be issued, the county agency 43.2 must return the incomplete form on or before the ten-day notice 43.3 deadline or any previously sent ten-day notice of termination is 43.4 invalid. 43.5 (b) When a complete MFIP-S household report form is not 43.6 received by a county agency before the last ten days of the 43.7 month in which the form is due, the county agency must send a 43.8 notice of proposed termination of assistance. When a caregiver 43.9 submits an incomplete form on or after the date a notice of 43.10 proposed termination has been sent, the termination is valid 43.11 unless the caregiver submits a complete form before the end of 43.12 the month. 43.13 (c) An assistance unit required to submit an MFIP-S 43.14 household report form is considered to have continued its 43.15 application for assistance if a complete MFIP-S household report 43.16 form is received within a calendar month after the month in 43.17 which assistance was received and assistance shall be paid for 43.18 the period beginning with the first day of the month in which 43.19 the report was due. 43.20 (d) A county agency must allow good cause exemptions from 43.21 the reporting requirements under subdivisions 5 and 6 when any 43.22 of the following factors cause a caregiver to fail to provide 43.23 the county agency with a completed MFIP-S household report form 43.24 before the end of the month in which the form is due: 43.25 (1) an employer delays completion of employment 43.26 verification; 43.27 (2) a county agency does not help a caregiver complete the 43.28 MFIP-S household report form when the caregiver asks for help; 43.29 (3) a caregiver does not receive an MFIP-S household report 43.30 form due to mistake on the part of the department or the county 43.31 agency or due to a reported change in address; 43.32 (4) a caregiver is ill, or physically or mentally 43.33 incapacitated; or 43.34 (5) some other circumstance occurs that a caregiver could 43.35 not avoid with reasonable care that prevents the caregiver from 43.36 providing a completed MFIP-S household report form before the 44.1 end of the month in which the form is due. 44.2 Subd. 9. [CHANGES THAT MUST BE REPORTED.] A caregiver must 44.3 report the changes or anticipated changes specified in clauses 44.4 (1) to (16) within ten days of the date they occur, within ten 44.5 days of the date the caregiver learns that the change will 44.6 occur, at the time of the periodic recertification of 44.7 eligibility under section 256J.32, subdivision 6, or within 44.8 eight calendar days of a reporting period as in subdivision 5 or 44.9 6, whichever occurs first. A caregiver must report other 44.10 changes at the time of the periodic recertification of 44.11 eligibility under section 256J.32, subdivision 6, or at the end 44.12 of a reporting period under subdivision 5 or 6, as applicable. 44.13 A caregiver must make these reports in writing or in person to 44.14 the county agency. When a county agency could have reduced or 44.15 terminated assistance for one or more payment months if a delay 44.16 in reporting a change specified under clauses (1) to (16) had 44.17 not occurred, the county agency must determine whether a timely 44.18 notice under section 256J.31, subdivision 4, could have been 44.19 issued on the day that the change occurred. When a timely 44.20 notice could have been issued, each month's overpayment 44.21 subsequent to that notice must be considered a client error 44.22 overpayment under section 256J.38. Changes in circumstances 44.23 which must be reported within ten days must also be reported on 44.24 the MFIP-S household report form for the reporting period in 44.25 which those changes occurred. Within ten days, a caregiver must 44.26 report: 44.27 (1) a change in initial employment; 44.28 (2) a change in initial receipt of unearned income; 44.29 (3) a recurring change in unearned income; 44.30 (4) a nonrecurring change of unearned income that exceeds 44.31 $30; 44.32 (5) the receipt of a lump sum; 44.33 (6) an increase in assets that may cause the assistance 44.34 unit to exceed asset limits; 44.35 (7) a change in the physical or mental status of an 44.36 incapacitated member of the assistance unit if the physical or 45.1 mental status is the basis of an exemption from the MFIP-S 45.2 employment and training services component; 45.3 (8) a change in employment status; 45.4 (9) a change in household composition, including births, 45.5 returns to and departures from the home of assistance unit 45.6 members and financially responsible persons, or a change in the 45.7 custody of a minor child; 45.8 (10) a change in health insurance coverage; 45.9 (11) the marriage or divorce of an assistance unit member; 45.10 (12) the death of a parent, minor child, or financially 45.11 responsible person; 45.12 (13) a change in address or living quarters of the 45.13 assistance unit; 45.14 (14) the sale, purchase, or other transfer of property; 45.15 (15) a change in school attendance of a custodial parent or 45.16 an employed child; and 45.17 (16) filing a lawsuit, a workers' compensation claim, or a 45.18 monetary claim against a third party. 45.19 Subd. 10. [COOPERATION WITH HEALTH CARE BENEFITS.] (a) The 45.20 caregiver of a minor child must cooperate with the county agency 45.21 to identify and provide information to assist the county agency 45.22 in pursuing third-party liability for medical services. 45.23 (b) A caregiver must assign to the department any rights to 45.24 health insurance policy benefits the caregiver has during the 45.25 period of MFIP-S eligibility. 45.26 (c) A caregiver must identify any third party who may be 45.27 liable for care and services available under the medical 45.28 assistance program on behalf of the applicant or participant and 45.29 all other assistance unit members. 45.30 (d) When a participant refuses to assign the rights to the 45.31 department, or when a participant refuses to identify any third 45.32 party who may be liable for care and services, the recipient 45.33 must be sanctioned as provided in section 256J.46. The 45.34 recipient is also ineligible for medical assistance for a 45.35 minimum of one month and until the recipient cooperates with the 45.36 requirements of this subdivision. 46.1 Subd. 11. [REQUIREMENT TO ASSIGN SUPPORT AND MAINTENANCE 46.2 RIGHTS.] To be eligible for MFIP-S, the caregiver must assign 46.3 all rights to child support and spousal maintenance benefits 46.4 according to section 256.74, subdivision 5. 46.5 Subd. 12. [REQUIREMENT TO PROVIDE SOCIAL SECURITY 46.6 NUMBERS.] Each member of the assistance unit must provide the 46.7 member's social security number to the county agency except for 46.8 members of the assistance unit who are qualified aliens 46.9 according to the Illegal Immigration Reform and Immigration 46.10 Responsibility Act of 1996, Title V of the Omnibus Consolidated 46.11 Appropriations Act, Public Law Number 104-200. When a social 46.12 security number is not provided to the county agency for 46.13 verification, this requirement is satisfied when each member of 46.14 the assistance unit cooperates with the procedures for 46.15 verification of numbers, issuance of duplicate cards, and 46.16 issuance of new numbers which have been established jointly 46.17 between the Social Security Administration and the commissioner. 46.18 Section 17 is effective January 1, 1998, except the 46.19 transitional provision in section 72 applies. 46.20 Sec. 18. [256J.31] [APPLICANT AND PARTICIPANT RIGHTS AND 46.21 COUNTY AGENCY RESPONSIBILITIES.] 46.22 Subdivision 1. [RIGHT TO INFORMATION.] An applicant or 46.23 participant has the right to obtain from the county agency 46.24 information about the benefits, requirements, restrictions, and 46.25 appeal provisions of public assistance programs. 46.26 Subd. 2. [RIGHT TO AUTHORIZED REPRESENTATIVE.] An 46.27 applicant or participant has the right to designate an 46.28 authorized representative to act on the applicant's or 46.29 participant's behalf. An applicant or participant has the right 46.30 to be assisted or represented by an authorized representative in 46.31 eligibility determinations, recertification, conciliation 46.32 conferences, the fair hearing process, and any other contacts 46.33 with the county agency or the department. When a county agency 46.34 determines that it is necessary for a person to assist an 46.35 applicant or participant, the county agency must designate a 46.36 staff member to assist the applicant or participant. Upon a 47.1 request from an applicant or participant, a county agency must 47.2 provide addresses and telephone numbers of organizations that 47.3 provide legal services at low cost or no cost to low-income 47.4 persons. 47.5 Subd. 3. [RIGHT OF APPLICANT TO NOTICE.] A county agency 47.6 must notify an applicant of the disposition of the applicant's 47.7 application. The notice must be in writing and on forms 47.8 prescribed by the commissioner. The county agency must mail the 47.9 notice to the last known mailing address provided by the 47.10 applicant. When an application is denied, the county agency 47.11 must notify the applicant in writing of the reasons for the 47.12 denial, of the right to appeal, and of the right to reapply for 47.13 assistance. 47.14 Subd. 4. [PARTICIPANT'S RIGHT TO NOTICE.] A county agency 47.15 must give a participant written notice of all adverse actions 47.16 affecting the participant including payment reductions, 47.17 suspensions, terminations, and use of protective, vendor, or 47.18 two-party payments. The notice of adverse action must be on a 47.19 form prescribed or approved by the commissioner and must be 47.20 mailed to the last known mailing address provided by the 47.21 participant. The county agency must state on the notice of 47.22 adverse action the action it intends to take, the reasons for 47.23 the action, the participant's right to appeal the action, the 47.24 conditions under which assistance can be continued pending an 47.25 appeal decision, and the related consequences of the action. 47.26 Subd. 5. [MAILING OF NOTICE.] The notice of adverse action 47.27 shall be issued according to paragraphs (a) to (c). 47.28 (a) A county agency shall mail a notice of adverse action 47.29 at least ten days before the effective date of the adverse 47.30 action, except as provided in paragraphs (b) and (c). 47.31 (b) A county agency must mail a notice of adverse action at 47.32 least five days before the effective date of the adverse action 47.33 when the county agency has factual information that requires an 47.34 action to reduce, suspend, or terminate assistance based on 47.35 probable fraud. 47.36 (c) A county agency shall mail a notice of adverse action 48.1 before or on the effective date of the adverse action when the 48.2 county agency: 48.3 (1) receives the caregiver's signed monthly MFIP-S 48.4 household report form that includes information that requires 48.5 payment reduction, suspension, or termination; 48.6 (2) is informed of the death of a participant or the payee; 48.7 (3) receives a signed statement from the caregiver that 48.8 assistance is no longer wanted; 48.9 (4) receives a signed statement from the caregiver that 48.10 provides information that requires the termination or reduction 48.11 of assistance; 48.12 (5) verifies that a member of the assistance unit is absent 48.13 from the home and does not meet temporary absence provisions in 48.14 section 256J.13; 48.15 (6) verifies that a member of the assistance unit has 48.16 entered a regional treatment center or a licensed residential 48.17 facility for medical or psychological treatment or 48.18 rehabilitation; 48.19 (7) verifies that a member of an assistance unit has been 48.20 placed in foster care, and the provisions of section 256J.13, 48.21 subdivision 2, paragraph (b), do not apply; or 48.22 (8) cannot locate a caregiver. 48.23 Subd. 6. [APPEAL RIGHTS.] An applicant, participant, or 48.24 former participant has the right to request a fair hearing when 48.25 aggrieved by an action or inaction of a county agency. A 48.26 request for a fair hearing and rights pending a fair hearing are 48.27 set as specified in section 256J.40. 48.28 Subd. 7. [CASE RECORDS AVAILABLE.] A county agency must 48.29 make financial case records available to the participant or 48.30 former participant as soon as possible but no later than the 48.31 fifth business day following the date of the request. When the 48.32 participant or former participant asks for photocopies of 48.33 material from the financial case record, the county agency must 48.34 provide one copy of each page at no cost. 48.35 Subd. 8. [RIGHT TO MANAGE AFFAIRS.] Except for protective 48.36 payment provisions authorized under section 256J.39, 49.1 participants have the right to manage their own affairs. 49.2 Subd. 9. [RIGHT TO PROTECTION.] Minor caregivers have the 49.3 right to protection. The county agency must refer a minor 49.4 caregiver to the social service unit within 30 days of the date 49.5 the application is approved. The social service unit must 49.6 assist the caregiver who is less than 18 years of age to develop 49.7 a plan as specified in section 256J.54. 49.8 Subd. 10. [PROTECTION FROM GARNISHMENT.] MFIP-S grants or 49.9 earnings of a caregiver who is participating in full or 49.10 part-time employment or training shall be protected from 49.11 garnishment. This protection for earnings shall extend for a 49.12 period of six months from the date of termination from MFIP-S. 49.13 Subd. 11. [RESPONSIBILITY TO RETAIN CASE RECORDS.] The 49.14 county agency must retain financial case records and employment 49.15 and training service records for MFIP-S cases according to 49.16 chapter 13. 49.17 Section 18 is effective January 1, 1998, except the 49.18 transitional provision in section 72 applies. 49.19 Sec. 19. [256J.315] [COUNTY AND TRIBAL COOPERATION.] 49.20 The county agency must cooperate with tribal governments in 49.21 the implementation of MFIP-S to ensure that the program meets 49.22 the special needs of persons living on Indian reservations. 49.23 This cooperation must include, but is not limited to, the 49.24 sharing of MFIP-S duties including initial screening, 49.25 orientation, assessments, and provision of employment and 49.26 training services. The county agency shall encourage tribal 49.27 governments to assume duties related to MFIP-S and shall work 49.28 cooperatively with tribes that have assumed responsibility for a 49.29 portion of the MFIP-S program to expand tribal responsibilities, 49.30 if that expansion is requested by the tribe. 49.31 Section 19 is effective January 1, 1998, except the 49.32 transitional provision in section 72 applies. 49.33 Sec. 20. [256J.32] [DOCUMENTING, VERIFYING, AND 49.34 RECERTIFYING ELIGIBILITY.] 49.35 Subdivision 1. [VERIFICATION OF INFORMATION.] A county 49.36 agency must only require verification of information necessary 50.1 to determine MFIP-S eligibility and the amount of the assistance 50.2 payment. 50.3 Subd. 2. [DOCUMENTATION.] The applicant or participant 50.4 must document the information required under subdivisions 4 to 6 50.5 or authorize the county agency to verify the information. The 50.6 applicant or participant has the burden of providing documentary 50.7 evidence to verify eligibility. The county agency shall assist 50.8 the applicant or participant in obtaining required documents 50.9 when the applicant or participant is unable to do so. When an 50.10 applicant or participant and the county agency are unable to 50.11 obtain documents needed to verify information, the county agency 50.12 may accept an affidavit from an applicant or participant as 50.13 sufficient documentation. 50.14 Subd. 3. [CONTACTING THIRD PARTIES.] A county agency must 50.15 not request information about an applicant or participant that 50.16 is not of public record from a source other than county 50.17 agencies, the department, or the United States Department of 50.18 Health and Human Services without the person's prior written 50.19 consent. An applicant's signature on an application form 50.20 constitutes consent for contact with the sources specified on 50.21 the application. A county agency may use a single consent form 50.22 to contact a group of similar sources, such as banks or 50.23 insurance agencies, but the sources to be contacted must be 50.24 identified by the county agency prior to requesting an 50.25 applicant's consent. 50.26 Subd. 4. [FACTORS TO BE VERIFIED.] The county agency shall 50.27 verify the following at application: 50.28 (1) identity of adults; 50.29 (2) presence of the minor child in the home, if 50.30 questionable; 50.31 (3) relationship of a minor child to caregivers in the 50.32 assistance unit; 50.33 (4) age, if necessary to determine MFIP-S eligibility; 50.34 (5) immigration status; 50.35 (6) social security number in accordance with the 50.36 requirements of section 256J.30, subdivision 12; 51.1 (7) income; 51.2 (8) self-employment expenses used as a deduction; 51.3 (9) source and purpose of deposits and withdrawals from 51.4 business accounts; 51.5 (10) spousal support and child support payments made to 51.6 persons outside the household; 51.7 (11) real property; 51.8 (12) vehicles; 51.9 (13) checking and savings accounts; 51.10 (14) savings certificates, savings bonds, stocks, and 51.11 individual retirement accounts; 51.12 (15) pregnancy, if related to eligibility; 51.13 (16) inconsistent information, if related to eligibility; 51.14 (17) medical insurance; 51.15 (18) anticipated graduation date of an 18-year-old; 51.16 (19) burial accounts; 51.17 (20) school attendance, if related to eligibility; and 51.18 (21) residence. 51.19 Subd. 5. [VERIFICATION OF IMMIGRATION STATUS.] An 51.20 applicant's written authorization is required before the county 51.21 agency contacts the Immigration and Naturalization Service to 51.22 verify immigration status under subdivision 4, clause (5). 51.23 However, refusal to provide such authorization is grounds for a 51.24 finding of ineligibility if the applicant fails to produce proof 51.25 of eligible immigration status. 51.26 Subd. 5a. [INCONSISTENT INFORMATION.] When the county 51.27 agency verifies inconsistent information under subdivision 4, 51.28 clause (16), or under subdivision 6, clause (4), the reason for 51.29 verifying the information must be documented in the financial 51.30 case record. 51.31 Subd. 6. [RECERTIFICATION.] The county agency shall 51.32 recertify eligibility in an annual face-to-face interview with 51.33 the participant and verify the following: 51.34 (1) presence of the minor child in the home, if 51.35 questionable; 51.36 (2) income, including self-employment expenses used as a 52.1 deduction or deposits or withdrawals from business accounts; 52.2 (3) assets, when the value is within $200 of the asset 52.3 limit; and 52.4 (4) inconsistent information, if related to eligibility. 52.5 Section 20 is effective January 1, 1998, except the 52.6 transitional provision in section 72 applies. 52.7 Sec. 21. [256J.33] [PROSPECTIVE AND RETROSPECTIVE 52.8 DETERMINATION OF MFIP-S ELIGIBILITY.] 52.9 Subdivision 1. [DETERMINATION OF ELIGIBILITY.] A county 52.10 agency must determine MFIP-S eligibility prospectively for a 52.11 payment month based on retrospectively assessing income and the 52.12 county agency's best estimate of the circumstances that will 52.13 exist in the payment month. 52.14 Except as described in section 256J.34, subdivision 1, when 52.15 prospective eligibility exists, a county agency must calculate 52.16 the amount of the assistance payment using retrospective 52.17 budgeting. To determine MFIP-S eligibility and the assistance 52.18 payment amount, a county agency must apply countable income, 52.19 described in section 256J.37, subdivisions 3 to 10, received by 52.20 members of an assistance unit or by other persons whose income 52.21 is counted for the assistance unit, described under section 52.22 256J.21 and 256J.37, subdivisions 1 and 2. 52.23 This income must be applied to the transitional standard or 52.24 family wage standard subject to this section and sections 52.25 256J.34 to 256J.36. Income received in a calendar month and not 52.26 otherwise excluded under section 256J.21, subdivision 2, must be 52.27 applied to the needs of an assistance unit. 52.28 Subd. 2. [PROSPECTIVE ELIGIBILITY.] A county agency must 52.29 determine whether the eligibility requirements that pertain to 52.30 an assistance unit, including those in sections 256J.10 to 52.31 256J.15 and 256J.20, will be met prospectively for the payment 52.32 month. Except for the provisions in section 256J.34, 52.33 subdivision 1, the income test will be applied retrospectively. 52.34 Subd. 3. [RETROSPECTIVE ELIGIBILITY.] After the first two 52.35 months of MFIP-S eligibility, a county agency must continue to 52.36 determine whether an assistance unit is prospectively eligible 53.1 for the payment month by looking at all factors other than 53.2 income and then determining whether the assistance unit is 53.3 retrospectively income eligible by applying the monthly income 53.4 test to the income from the budget month. When the monthly 53.5 income test is not satisfied, the assistance payment must be 53.6 suspended when ineligibility exists for one month or ended when 53.7 ineligibility exists for more than one month. 53.8 Subd. 4. [MONTHLY INCOME TEST.] A county agency must apply 53.9 the monthly income test retrospectively for each month of MFIP-S 53.10 eligibility. An assistance unit is not eligible when the 53.11 countable income equals or exceeds the transitional standard or 53.12 the family wage level for the assistance unit. The income 53.13 applied against the monthly income test must include: 53.14 (1) gross earned income from employment, prior to mandatory 53.15 payroll deductions, voluntary payroll deductions, wage 53.16 authorizations, and after the disregards in section 256J.21, 53.17 subdivision 3, and the allocations in section 256J.36, unless 53.18 the employment income is specifically excluded under section 53.19 256J.21, subdivision 2; 53.20 (2) gross earned income from self-employment less 53.21 deductions for self-employment expenses in section 256J.37, 53.22 subdivision 5, but prior to any reductions for personal or 53.23 business state and federal income taxes, personal FICA, personal 53.24 health and life insurance, and after the disregards in section 53.25 256J.21, subdivision 3, and the allocations in section 256J.36; 53.26 (3) unearned income after deductions for allowable expenses 53.27 in section 256J.37, subdivision 9, and allocations in section 53.28 256J.36, unless the income has been specifically excluded in 53.29 section 256J.21, subdivision 2; 53.30 (4) gross earned income from employment as determined under 53.31 clause (1) which is received by a member of an assistance unit 53.32 who is a minor child and less than a half-time student; 53.33 (5) child support and spousal support received or 53.34 anticipated to be received by an assistance unit; 53.35 (6) the income of a parent when that parent is not included 53.36 in the assistance unit; 54.1 (7) the income of an eligible relative and the relative's 54.2 spouse who seek to be included in the assistance unit; and 54.3 (8) the unearned income of a minor child included in the 54.4 assistance unit. 54.5 Subd. 5. [WHEN TO TERMINATE ASSISTANCE.] When an 54.6 assistance unit is ineligible for MFIP-S assistance for two 54.7 consecutive months, the county agency must terminate MFIP-S 54.8 assistance. 54.9 Section 21 is effective January 1, 1998, except the 54.10 transitional provision in section 72 applies. 54.11 Sec. 22. [256J.34] [CALCULATING PAYMENTS; SIGNIFICANT 54.12 CHANGE; INCOME AVERAGING.] 54.13 Subdivision 1. [PROSPECTIVE BUDGETING.] A county agency 54.14 must use prospective budgeting to calculate the assistance 54.15 payment amount for the first two months for an applicant who has 54.16 not received assistance in this state for at least one payment 54.17 month preceding the first month of payment under a current 54.18 application. Prospective budgeting is not subject to 54.19 overpayments or underpayments unless fraud is determined under 54.20 section 256.98. 54.21 (a) The county agency must apply the income received or 54.22 anticipated in the first month of MFIP-S eligibility against the 54.23 need of the first month. The county agency must apply the 54.24 income received or anticipated in the second month against the 54.25 need of the second month. 54.26 (b) When the assistance payment for any part of the first 54.27 two months is based on anticipated income, the county agency 54.28 must base the initial assistance payment amount on the 54.29 information available at the time the initial assistance payment 54.30 is made. 54.31 (c) The county agency must determine the assistance payment 54.32 amount for the first two months of MFIP-S eligibility by 54.33 budgeting both recurring and nonrecurring income for those two 54.34 months. 54.35 (d) The county agency must budget the child support income 54.36 received or anticipated to be received by an assistance unit to 55.1 determine the assistance payment amount from the month of 55.2 application through the date in which MFIP-S eligibility is 55.3 determined and assistance is authorized. Child support income 55.4 which has been budgeted to determine the assistance payment in 55.5 the initial two months is considered nonrecurring income. An 55.6 assistance unit must forward any payment of child support to the 55.7 child support enforcement unit of the county agency following 55.8 the date in which assistance is authorized. 55.9 Subd. 2. [RETROSPECTIVE BUDGETING.] The county agency must 55.10 use retrospective budgeting to calculate the monthly assistance 55.11 payment amount after the payment for the first two months has 55.12 been made under subdivision 1. 55.13 Subd. 3. [ADDITIONAL USES OF RETROSPECTIVE 55.14 BUDGETING.] Notwithstanding subdivision 1, the county agency 55.15 must use retrospective budgeting to calculate the monthly 55.16 assistance payment amount for the first two months under 55.17 paragraphs (a) and (b). 55.18 (a) The county agency must use retrospective budgeting to 55.19 determine the amount of the assistance payment in the first two 55.20 months of MFIP-S eligibility: 55.21 (1) when an assistance unit applies for assistance for the 55.22 same month for which assistance has been interrupted, the 55.23 interruption in eligibility is less than one payment month, the 55.24 assistance payment for the preceding month was issued in this 55.25 state, and the assistance payment for the immediately preceding 55.26 month was determined retrospectively; or 55.27 (2) when a person applies in order to be added to an 55.28 assistance unit, that assistance unit has received assistance in 55.29 this state for at least the two preceding months, and that 55.30 person has been living with and has been financially responsible 55.31 for one or more members of that assistance unit for at least the 55.32 two preceding months. 55.33 (b) Except as provided in clauses (1) to (4), the county 55.34 agency must use retrospective budgeting and apply income 55.35 received in the budget month by an assistance unit and by a 55.36 financially responsible household member who is not included in 56.1 the assistance unit against the appropriate transitional or 56.2 family wage level standard to determine the assistance payment 56.3 to be issued for the payment month. 56.4 (1) When a source of income ends prior to the third payment 56.5 month, that income is not considered in calculating the 56.6 assistance payment for that month. When a source of income ends 56.7 prior to the fourth payment month, that income is not considered 56.8 when determining the assistance payment for that month. 56.9 (2) When a member of an assistance unit or a financially 56.10 responsible household member leaves the household of the 56.11 assistance unit, the income of that departed household member is 56.12 not budgeted retrospectively for any full payment month in which 56.13 that household member does not live with that household and is 56.14 not included in the assistance unit. 56.15 (3) When an individual is removed from an assistance unit 56.16 because the individual is no longer a minor child, the income of 56.17 that individual is not budgeted retrospectively for payment 56.18 months in which that individual is not a member of the 56.19 assistance unit, except that income of an ineligible child in 56.20 the household must continue to be budgeted retrospectively 56.21 against the child's needs when the parent or parents of that 56.22 child request allocation of their income against any unmet needs 56.23 of that ineligible child. 56.24 (4) When a person ceases to have financial responsibility 56.25 for one or more members of an assistance unit, the income of 56.26 that person is not budgeted retrospectively for the payment 56.27 months which follow the month in which financial responsibility 56.28 ends. 56.29 Subd. 4. [SIGNIFICANT CHANGE IN GROSS INCOME.] The county 56.30 agency must recalculate the assistance payment when an 56.31 assistance unit experiences a significant change, as defined in 56.32 section 256J.08, resulting in a reduction in the gross income 56.33 received in the payment month from the gross income received in 56.34 the budget month. The county agency must issue a supplemental 56.35 assistance payment based on the county agency's best estimate of 56.36 the assistance unit's income and circumstances for the payment 57.1 month. Budget adjustments that result from significant changes 57.2 are limited to two in a 12-month period regardless of the reason 57.3 for the change. Budget adjustments due to a significant change 57.4 in the amount of direct support received must not be made after 57.5 the date the assistance unit is required to forward support to 57.6 the child support enforcement unit under subdivision 1, 57.7 paragraph (d). 57.8 Subd. 5. [INCOME AVERAGING FOR PARTICIPANTS PAID WEEKLY OR 57.9 BIWEEKLY.] For the purposes of stabilizing assistance payments, 57.10 the county agency may average income for participants paid 57.11 weekly or biweekly. Monthly income may be computed by adding 57.12 income from all paychecks, dividing the sum by the number of 57.13 paychecks, and multiplying the results by 4.3 if paychecks are 57.14 weekly or 2.16 if paychecks are biweekly. The county agency may 57.15 not use income averaging unless discussed with the participant 57.16 and requested by the participant. 57.17 Section 22 is effective January 1, 1998, except the 57.18 transitional provision in section 72 applies. 57.19 Sec. 23. [256J.35] [AMOUNT OF ASSISTANCE PAYMENT.] 57.20 Except as provided in paragraphs (a) to (c), the amount of 57.21 an assistance payment is equal to the difference between the 57.22 transitional standard or the family wage level in section 57.23 256J.24 and countable income. 57.24 (a) When MFIP-S eligibility exists for the month of 57.25 application, the amount of the assistance payment for the month 57.26 of application must be prorated from the date of application or 57.27 the date all other eligibility factors are met for that 57.28 applicant, whichever is later. This provision applies when an 57.29 applicant loses at least one day of MFIP-S eligibility. 57.30 (b) MFIP-S overpayments to an assistance unit must be 57.31 recouped according to section 256J.38, subdivision 4. 57.32 (c) An initial assistance payment must not be made to an 57.33 applicant who is not eligible on the date payment is made. 57.34 Section 23 is effective January 1, 1998, except the 57.35 transitional provision in section 72 applies. 57.36 Sec. 24. [256J.36] [ALLOCATION FOR UNMET NEED OF OTHER 58.1 HOUSEHOLD MEMBERS.] 58.2 Except as prohibited in paragraphs (a) and (b), an 58.3 allocation of income is allowed to meet the unmet need of an 58.4 ineligible spouse or an ineligible child under the age of 21 for 58.5 whom the caregiver is financially responsible who also lives 58.6 with the caregiver. An allocation is allowed from the 58.7 caregiver's income to meet the need of an ineligible or excluded 58.8 person. That allocation is allowed in an amount up to the 58.9 difference between the MFIP-S family allowance for the 58.10 assistance unit when that excluded or ineligible person is 58.11 included in the assistance unit and the MFIP-S family allowance 58.12 for the assistance unit when the excluded or ineligible person 58.13 is not included in the assistance unit. These allocations must 58.14 be deducted from the caregiver's counted earnings and from 58.15 unearned income subject to paragraphs (a) and (b). 58.16 (a) Income of a minor child in the assistance unit must not 58.17 be allocated to meet the need of a person who is not a member of 58.18 the assistance unit, including the child's parent, even when 58.19 that parent is the payee of the child's income. 58.20 (b) Income of an assistance unit must not be allocated to 58.21 meet the needs of a person ineligible for failure to cooperate 58.22 with program requirements including child support requirements, 58.23 a person ineligible due to fraud, or a relative caregiver and 58.24 his or her spouse who opt out of the assistance unit. 58.25 Section 24 is effective January 1, 1998, except the 58.26 transitional provision in section 72 applies. 58.27 Sec. 25. [256J.37] [TREATMENT OF INCOME AND LUMP SUMS.] 58.28 Subdivision 1. [DEEMED INCOME FROM INELIGIBLE HOUSEHOLD 58.29 MEMBERS.] (a) The income of ineligible household members must be 58.30 deemed after allowing the following disregards: 58.31 (1) the first 18 percent of the excluded family member's 58.32 gross earned income; 58.33 (2) amounts the ineligible person actually paid to 58.34 individuals not living in the same household but whom the 58.35 ineligible person claims as dependents for determining federal 58.36 personal income tax liability; 59.1 (3) child or spousal support paid to a person who lives 59.2 outside of the household; and 59.3 (4) an amount for the needs of other persons who live in 59.4 the household but are not included in the assistance unit and 59.5 are or could be claimed by an ineligible person as dependents 59.6 for determining federal personal income tax liability. This 59.7 amount is equal to the difference between the MFIP-S need 59.8 standard when the excluded person is included in the assistance 59.9 unit and the MFIP-S need standard when the excluded person is 59.10 not included in the assistance unit. 59.11 This subdivision is effective January 1, 1998, except the 59.12 transitional provision in section 72 applies. 59.13 Subd. 2. [DEEMED INCOME OF SPONSOR OF NONCITIZENS.] (a) 59.14 All income of a sponsor, or sponsor's spouse, who executed an 59.15 affidavit of support for a noncitizen must be deemed to be 59.16 unearned income of the noncitizen as specified in the Personal 59.17 Responsibility and Work Opportunity Reconciliation Act of 1996 59.18 and any implementing regulations. 59.19 (b) The income of a sponsor who executed an affidavit of 59.20 support for a noncitizen prior to the promulgation of the 59.21 affidavit of support under the Personal Responsibility and Work 59.22 Opportunity Reconciliation Act of 1996, must be deemed to be 59.23 unearned income of the noncitizen after allowing the following 59.24 exclusions: 59.25 (1) 20 percent of the combined gross earned income of the 59.26 sponsor and the sponsor's spouse up to a maximum of $175 per 59.27 month; 59.28 (2) an amount for the needs of the sponsor, the sponsor's 59.29 spouse, and other individuals, living in the sponsor's home, who 59.30 could be claimed by the sponsor or the sponsor's spouse as 59.31 dependents for determining federal personal income tax 59.32 liability, which is equal to the MFIP-S need standard for a 59.33 comparable family unit; 59.34 (3) amounts the sponsor and the sponsor's spouse actually 59.35 paid to individuals not living in the same household but whom 59.36 the sponsor or the sponsor's spouse claim as dependents for 60.1 determining federal personal income tax liability; and 60.2 (4) child or spousal support paid by the sponsor or 60.3 sponsor's spouse to a person who lives outside of the sponsor's 60.4 household. 60.5 Subd. 3. [EARNED INCOME OF WAGE, SALARY, AND CONTRACTUAL 60.6 EMPLOYEES.] The county agency must include gross earned income 60.7 less any disregards in the initial and monthly income test. 60.8 Gross earned income received by persons employed on a 60.9 contractual basis must be prorated over the period covered by 60.10 the contract even when payments are received over a lesser 60.11 period of time. 60.12 This subdivision is effective January 1, 1998, except the 60.13 transitional provision in section 72 applies. 60.14 Subd. 4. [SELF-EMPLOYMENT.] Self-employed individuals are 60.15 those who are responsible for their own work schedule and do not 60.16 have coverage under an employer's liability insurance or 60.17 workers' compensation. Self-employed individuals generally work 60.18 for themselves rather than an employer. However, individuals 60.19 employed in some types of services may be self-employed even if 60.20 they have an employer or work out of another's business 60.21 location. For example, real estate sales people, individuals 60.22 who work for commission sales, manufacturer's representatives, 60.23 and independent contractors may be self-employed. Self-employed 60.24 individuals may or may not have FICA deducted from the check 60.25 issued to them by an employer or another party. 60.26 Self-employed individuals may own a business singularly or 60.27 in partnership. Individuals operating more than one 60.28 self-employment business may use the loss from one business to 60.29 offset self-employment income from another business. A loss 60.30 from a self-employment business may not offset income earned 60.31 under subdivision 3. 60.32 This subdivision is effective January 1, 1998, except the 60.33 transitional provision in section 72 applies. 60.34 Subd. 5. [SELF-EMPLOYMENT EARNINGS.] (a) The county agency 60.35 must determine self-employment income as provided in this 60.36 paragraph. The county agency must subtract allowable business 61.1 expenses from total gross receipts. Allowable business expenses 61.2 include: 61.3 (1) interest on mortgages and loans; 61.4 (2) employee wages, except for persons who are part of the 61.5 assistance unit or whose income is deemed to the participant; 61.6 (3) FICA funds paid on employees' wages, payment of 61.7 employee workers' compensation, and reemployment insurance; 61.8 (4) livestock and veterinary or breeding fees; 61.9 (5) raw material; 61.10 (6) seed and fertilizer; 61.11 (7) maintenance and repairs that are not capital 61.12 expenditures; 61.13 (8) tax return preparation fees; 61.14 (9) license fees, professional fees, franchise fees, and 61.15 professional dues; 61.16 (10) tools and supplies that are not capital expenditures; 61.17 (11) fuel and transportation expenses other than fuel costs 61.18 covered by the flat rate transportation deduction; 61.19 (12) advertising costs; 61.20 (13) meals eaten when required to be away from the local 61.21 work site; 61.22 (14) property expenses such as rent, insurance, taxes, and 61.23 utilities; 61.24 (15) postage; 61.25 (16) purchase cost of inventory at time of sale; 61.26 (17) loss from another self-employment business; 61.27 (18) attorney's fees allowed by the Internal Revenue 61.28 Service; and 61.29 (19) tuition for classes necessary to maintain or improve 61.30 job skills or required by law to maintain job status or salary 61.31 as allowed by the Internal Revenue Service. 61.32 (b) The county agency shall not allow a deduction for the 61.33 following expenses: 61.34 (1) purchases of capital assets; 61.35 (2) payments on the principals of loans for capital assets; 61.36 (3) depreciation; 62.1 (4) amortization; 62.2 (5) the wholesale costs of items purchased, processed, or 62.3 manufactured which are unsold inventory; 62.4 (6) transportation costs that exceed the maximum standard 62.5 mileage rate allowed for use of a personal car in the Internal 62.6 Revenue Code; 62.7 (7) costs, in any amount, for mileage between an 62.8 applicant's or participant's home and place of employment; 62.9 (8) salaries and other employment deductions made for 62.10 members of an assistance unit or persons who live in the 62.11 household for whom an employer is legally responsible; 62.12 (9) monthly expenses in excess of $71 for each roomer; 62.13 (10) monthly expenses in excess of the Thrifty Food Plan 62.14 amount for one person for each boarder. For purposes of this 62.15 clause and clause (11), "Thrifty Food Plan" has the meaning 62.16 given it in Code of Federal Regulations. 62.17 (11) monthly expenses in excess of the roomer rate plus the 62.18 Thrifty Food Plan amount for one person for each 62.19 roomer-boarder. If there is more than one boarder or 62.20 roomer-boarder, the total number of boarders must be used as the 62.21 unit size to determine the Thrifty Food Plan amount; 62.22 (12) an amount greater than actual expenses or two percent 62.23 of the estimated market value on a county tax assessment form, 62.24 whichever is greater, as a deduction for upkeep and repair 62.25 against rental income; 62.26 (13) expenses not allowed by the Internal Revenue Code; 62.27 (14) expenses in excess of 60 percent of gross receipts for 62.28 in-home child care unless a higher amount can be documented; and 62.29 (15) expenses that are reimbursed under the child and adult 62.30 care food program as authorized under the National School Lunch 62.31 Act, United States Code, title 42, section 1766. 62.32 This subdivision is effective January 1, 1998, except the 62.33 transitional provision in section 72 applies. 62.34 Subd. 6. [SELF-EMPLOYMENT BUDGET PERIOD.] The 62.35 self-employment budget period begins in the month of application 62.36 or in the first month of self-employment. Gross receipts must 63.1 be budgeted in the month received. Expenses must be budgeted 63.2 against gross receipts in the month the expenses are paid, 63.3 except for paragraphs (a) to (c). 63.4 (a) The purchase cost of inventory items, including 63.5 materials which are processed or manufactured, must be deducted 63.6 as an expense at the time payment is received for the sale of 63.7 the inventory items. 63.8 (b) A 12-month rolling average based on clauses (1) to (3) 63.9 must be used to budget monthly income. 63.10 (1) For a business in operation for at least 12 months, the 63.11 county agency shall use the average monthly self-employment 63.12 income from the most current income tax return for the taxable 63.13 year before the month of application. The county agency shall 63.14 determine a new monthly average by adding in the actual 63.15 self-employment income and expenses from the previous month and 63.16 dropping the first month from the averaging period. 63.17 (2) For a business in operation for less than 12 months, 63.18 the county agency shall compute the average for the number of 63.19 months the business has been in operation to determine a monthly 63.20 average. When data are available for 12 or more months, average 63.21 monthly self-employment income is determined under clause (1). 63.22 (3) If the business undergoes a major change, the county 63.23 agency shall compute a new rolling average beginning with the 63.24 first month of the major change. For the purpose of this 63.25 clause, "major change" means a change that affects the nature 63.26 and scale of the business and is not merely the result of normal 63.27 business fluctuations. 63.28 (c) For seasonal self-employment, the participant may 63.29 choose whether to use actual income in the month of receipt and 63.30 expenses in the month incurred or the rolling average method of 63.31 computation. The choice must be made once per year at the time 63.32 of application or recertification. For the purpose of this 63.33 paragraph, seasonal means working six or less months per year. 63.34 This subdivision is effective January 1, 1998, except the 63.35 transitional provision in section 72 applies. 63.36 Subd. 7. [FARM INCOME.] Farm income is the difference 64.1 between gross receipts and operating expenses. The county 64.2 agency must not allow a deduction for expenses listed in 64.3 subdivision 5, paragraph (b). Gross receipts include sales, 64.4 rents, subsidies, soil conservation payments, production derived 64.5 from livestock, and income from home-produced food. 64.6 This subdivision is effective January 1, 1998, except the 64.7 transitional provision in section 72 applies. 64.8 Subd. 8. [RENTAL INCOME.] The county agency must treat 64.9 income from rental property as earned or unearned income. 64.10 Income from rental property is unearned income unless the 64.11 assistance unit spends an average of ten hours per week on 64.12 maintenance or management of the property. When the owner 64.13 spends more than ten hours per week on maintenance or repairs, 64.14 the earnings are considered self-employment earnings. An amount 64.15 must be deducted for upkeep and repairs, as limited by 64.16 subdivision 5, paragraph (b), clause (12), real estate taxes, 64.17 insurance, utilities, and interest on principal payments. When 64.18 the applicant or participant lives on the rental property, 64.19 expenses for upkeep, taxes, insurance, utilities, and interest 64.20 must be divided by the number of rooms to determine expense per 64.21 room and expenses deducted must be deducted only for the number 64.22 of rooms rented. 64.23 This subdivision is effective January 1, 1998, except the 64.24 transitional provision in section 72 applies. 64.25 Subd. 9. [UNEARNED INCOME.] (a) The county agency must 64.26 apply unearned income, including housing subsidies as specified 64.27 in paragraph (b), to the transitional standard. When 64.28 determining the amount of unearned income, the county agency 64.29 must deduct the costs necessary to secure payments of unearned 64.30 income. These costs include legal fees, medical fees, and 64.31 mandatory deductions such as federal and state income taxes. 64.32 (b) Effective January 1, 1998, the county agency shall 64.33 count $100 of the value of public and assisted rental subsidies 64.34 provided by the Department of Housing and Urban Development 64.35 (HUD) through state or local housing authorities, as unearned 64.36 income. The full amount of the subsidy must be counted as 65.1 unearned income when the subsidy is less than $100. 65.2 This subdivision is effective January 1, 1998, except the 65.3 transitional provision in section 72 applies. 65.4 Subd. 10. [TREATMENT OF LUMP SUMS.] The county agency must 65.5 treat lump-sum payments as earned or unearned income. If the 65.6 lump-sum payment is included in the category of income 65.7 identified in subdivision 9, it must be treated as unearned 65.8 income. A lump sum is counted as income in the month received 65.9 and budgeted either prospectively or retrospectively depending 65.10 on the budget cycle at the time of receipt. When an individual 65.11 receives a lump-sum payment, that lump sum must be combined with 65.12 all other earned and unearned income received in the same budget 65.13 month, and it must be applied according to paragraphs (a) to (c). 65.14 A lump sum may not be carried over into subsequent months. Any 65.15 funds that remain in the third month after the month of receipt 65.16 are counted in the asset limit. 65.17 (a) For a lump sum received by an applicant during the 65.18 first two months, prospective budgeting is used to determine the 65.19 payment and the lump sum must be combined with other earned or 65.20 unearned income received and budgeted in that prospective month. 65.21 (b) For a lump sum received by a participant after the 65.22 first two months of MFIP-S eligibility, the lump sum must be 65.23 combined with other income received in that budget month, and 65.24 the combined amount must be applied retrospectively against the 65.25 applicable payment month. 65.26 (c) When a lump sum, combined with other income under 65.27 paragraphs (a) and (b), is less than the transitional standard 65.28 for the applicable payment month, the assistance payment must be 65.29 reduced according to the amount of the countable income. When 65.30 the countable income is greater than the transitional standard 65.31 or the family wage standard, the assistance payment must be 65.32 suspended for the payment month. 65.33 This subdivision is effective January 1, 1998, except the 65.34 transitional provision in section 72 applies. 65.35 Sec. 26. [256J.38] [CORRECTION OF OVERPAYMENTS AND 65.36 UNDERPAYMENTS.] 66.1 Subdivision 1. [SCOPE OF OVERPAYMENT.] When a participant 66.2 or former participant receives an overpayment due to agency, 66.3 client, or ATM error, or due to assistance received while an 66.4 appeal is pending and the participant or former participant is 66.5 determined ineligible for assistance or for less assistance than 66.6 was received, the county agency must recoup or recover the 66.7 overpayment under the conditions of this section. 66.8 Subd. 2. [NOTICE OF OVERPAYMENT.] When a county agency 66.9 discovers that a participant or former participant has received 66.10 an overpayment for one or more months, the county agency must 66.11 notify the participant or former participant of the overpayment 66.12 in writing. A notice of overpayment must specify the reason for 66.13 the overpayment, the authority for citing the overpayment, the 66.14 time period in which the overpayment occurred, the amount of the 66.15 overpayment, and the participant's or former participant's right 66.16 to appeal. No limit applies to the period in which the county 66.17 agency is required to recoup or recover an overpayment according 66.18 to subdivisions 3 and 4. 66.19 Subd. 3. [RECOVERING OVERPAYMENTS FROM FORMER 66.20 PARTICIPANTS.] A county agency must initiate efforts to recover 66.21 overpayments paid to a former participant. Adults and minor 66.22 caregivers of an assistance unit at the time an overpayment 66.23 occurs, whether receiving assistance or not, are jointly and 66.24 individually liable for repayment of the overpayment. The 66.25 county agency must request repayment from the former 66.26 participants. When an agreement for repayment is not completed 66.27 within six months of the date of discovery or when there is a 66.28 default on an agreement for repayment after six months, the 66.29 county agency must initiate recovery consistent with chapter 66.30 270A, or section 541.05. When a person has been convicted of 66.31 fraud under section 256.98, recovery must be sought regardless 66.32 of the amount of overpayment. When an overpayment is less than 66.33 $35, and is not the result of a fraud conviction under section 66.34 256.98, the county agency must not seek recovery under this 66.35 subdivision. The county agency must retain information about 66.36 all overpayments regardless of the amount. When an adult or 67.1 minor caregiver reapplies for assistance, the overpayment must 67.2 be recouped under subdivision 4. 67.3 Subd. 4. [RECOUPING OVERPAYMENTS FROM PARTICIPANTS.] A 67.4 participant may voluntarily repay, in part or in full, an 67.5 overpayment even if assistance is reduced under this 67.6 subdivision, until the total amount of the overpayment is 67.7 repaid. When an overpayment occurs, the county agency must 67.8 recover ten percent of the transitional standard or the amount 67.9 of the monthly assistance payment, whichever is less. 67.10 Subd. 5. [RECOVERING AUTOMATIC TELLER MACHINE ERRORS.] For 67.11 recipients receiving benefits via electronic benefit transfer, 67.12 if the overpayment is a result of an ATM dispensing funds in 67.13 error to the recipient, the agency may recover the ATM error by 67.14 immediately withdrawing funds from the recipient's electronic 67.15 benefit transfer account, up to the amount of the error. 67.16 Subd. 6. [SCOPE OF UNDERPAYMENTS.] A county agency must 67.17 issue a corrective payment for underpayments made to a 67.18 participant or to a person who would be a participant if an 67.19 agency or client error causing the underpayment had not occurred. 67.20 The county agency must issue the corrective payment according to 67.21 subdivision 8. 67.22 Subd. 7. [IDENTIFYING THE UNDERPAYMENT.] An underpayment 67.23 may be identified by a county agency, by a participant, by a 67.24 former participant, or by a person who would be a participant 67.25 except for agency or client error. 67.26 Subd. 8. [ISSUING CORRECTIVE PAYMENTS.] A county agency 67.27 must correct an underpayment within seven calendar days after 67.28 the underpayment has been identified, by adding the corrective 67.29 payment amount to the monthly assistance payment of the 67.30 participant or by issuing a separate payment to a participant or 67.31 former participant, or by reducing an existing overpayment 67.32 balance. When an underpayment occurs in a payment month and is 67.33 not identified until the next payment month or later, the county 67.34 agency must first subtract the underpayment from any overpayment 67.35 balance before issuing the corrective payment. The county 67.36 agency must not apply an underpayment in a current payment month 68.1 against an overpayment balance. When an underpayment in the 68.2 current payment month is identified, the corrective payment must 68.3 be issued within seven calendar days after the underpayment is 68.4 identified. 68.5 Subd. 9. [APPEALS.] A participant may appeal an 68.6 underpayment, an overpayment, and a reduction in an assistance 68.7 payment made to recoup the overpayment under subdivision 4. The 68.8 participant's appeal of each issue must be timely under section 68.9 256.045. When an appeal based on the notice issued under 68.10 subdivision 2 is not timely, the fact or the amount of that 68.11 overpayment must not be considered as a part of a later appeal, 68.12 including an appeal of a reduction in an assistance payment to 68.13 recoup that overpayment. 68.14 This subdivision is effective January 1, 1998, except the 68.15 transitional provision in section 72 applies. 68.16 Sec. 27. [256J.39] [PAYMENT PROVISIONS; VENDOR PAYMENTS.] 68.17 Subdivision 1. [PAYMENT POLICY.] The following policies 68.18 apply to monthly assistance payments and corrective payments: 68.19 (1) Grant payments may be issued in the form of warrants 68.20 immediately redeemable in cash, electronic benefits transfer, or 68.21 by direct deposit into the recipient's account in a financial 68.22 institution. 68.23 (2) The commissioner shall mail assistance payment checks 68.24 to the address where a caregiver lives unless the county agency 68.25 approves an alternate arrangement. 68.26 (3) The commissioner shall mail monthly assistance payment 68.27 checks within time to allow postal service delivery to occur no 68.28 later than the first day of each month. Monthly assistance 68.29 payment checks must be dated the first day of the month. The 68.30 commissioner shall issue electronic benefits transfer payments 68.31 so that caregivers have access to the payments no later than the 68.32 first of the month. 68.33 (4) The commissioner shall issue replacement checks 68.34 promptly, but no later than seven calendar days after the 68.35 provisions of sections 16A.46; 256.01, subdivision 11; and 68.36 471.415 have been met. 69.1 Subd. 2. [PROTECTIVE AND VENDOR PAYMENTS.] Alternatives to 69.2 paying assistance directly to a participant may be used when: 69.3 (1) a county agency determines that a vendor payment is the 69.4 most effective way to resolve an emergency situation pertaining 69.5 to basic needs; 69.6 (2) a caregiver makes a written request to the county 69.7 agency asking that part or all of the assistance payment be 69.8 issued by protective or vendor payments for shelter and utility 69.9 service only. The caregiver may withdraw this request in 69.10 writing at any time; 69.11 (3) a caregiver has exhibited a continuing pattern of 69.12 mismanaging funds as determined by the county agency; 69.13 (4) the vendor payment is part of a sanction under section 69.14 256J.46, subdivision 2; or 69.15 (5) the vendor payment is required under section 256J.24 or 69.16 256J.43. 69.17 The director of a county agency must approve a proposal for 69.18 protective or vendor payment for money mismanagement. During 69.19 the time a protective or vendor payment is being made, the 69.20 county agency must provide services designed to alleviate the 69.21 causes of the mismanagement. 69.22 The continuing need for and method of payment must be 69.23 documented and reviewed every 12 months. The director of a 69.24 county agency must approve the continuation of protective or 69.25 vendor payments. 69.26 When it appears that the need for protective or vendor 69.27 payments will continue or is likely to continue beyond two years 69.28 because the county agency's efforts have not resulted in 69.29 sufficiently improved use of assistance on behalf of the minor 69.30 child, judicial appointment of a legal guardian or other legal 69.31 representative must be sought by the county agency. 69.32 Subd. 3. [CHOOSING PAYEES FOR PROTECTIVE OR VENDOR 69.33 PAYMENTS.] A county agency shall consult with a caregiver 69.34 regarding the selection of the form of payment, the selection of 69.35 a protective payee, and the distribution of the assistance 69.36 payment to meet the various costs incurred by the assistance 70.1 unit. When choosing a protective payee, the county agency shall 70.2 notify the caregiver of a consultation date. If the caregiver 70.3 fails to respond to the county agency's request for consultation 70.4 by the effective date on the notice, the county agency must 70.5 choose a protective payee for that payment month and subsequent 70.6 payment months until the caregiver responds to the agency's 70.7 request for consultation. The county agency must notify the 70.8 caregiver of the right to appeal the determination that a 70.9 protective or vendor payment should be made or continued and to 70.10 appeal the selection of the payee. If a county agency is not 70.11 able to find another protective payee, a county agency staff 70.12 member may serve as a protective payee. The following persons 70.13 may not serve as protective payees: a member of the county 70.14 board of commissioners; the county agency staff member 70.15 determining financial eligibility for the family; special 70.16 investigative or resource staff; the staff member handling 70.17 accounting or fiscal processes related to the participant; or a 70.18 landlord, grocer, or other vendor dealing directly with the 70.19 participant. 70.20 Subd. 4. [DISCONTINUING PROTECTIVE OR VENDOR PAYMENTS.] A 70.21 county agency shall discontinue protective or vendor payments in 70.22 two years or in the month following the county agency's failure 70.23 to grant six-month approval to a money management plan, 70.24 whichever occurs first. At least once every 12 months, a county 70.25 agency shall review the performance of a protective payee acting 70.26 under subdivision 2, clause (3), to determine whether a new 70.27 payee should be selected. When a participant complains about 70.28 the performance of a protective payee, a review shall occur 70.29 within 30 calendar days. 70.30 Section 27 is effective January 1, 1998, except the 70.31 transitional provision in section 72 applies. 70.32 Sec. 28. [256J.395] [VENDOR PAYMENT OF RENT AND 70.33 UTILITIES.] 70.34 (a) When a county is required to provide assistance to a 70.35 recipient in vendor form for rent and utilities under chapter 70.36 256, 256D, 256J, or 256K, the cost of utilities for a given 71.1 family may be assumed to be: 71.2 (1) the average of the actual monthly cost of utilities for 71.3 that family for the prior 12 months at the family's current 71.4 residence, if applicable; 71.5 (2) the monthly plan amount, if any, set by the local 71.6 utilities for that family at the family's current residence; or 71.7 (3) the estimated monthly utility costs for the dwelling in 71.8 which the family currently resides. 71.9 (b) For purposes of this section, "utility" means any of 71.10 the following: municipal water and sewer service; electric, 71.11 gas, or heating fuel service; or wood, if that is the heating 71.12 source. 71.13 This section is effective July 1, 1997. 71.14 Sec. 29. [256J.40] [FAIR HEARINGS.] 71.15 Caregivers receiving a notice of intent to sanction or a 71.16 notice of adverse action that includes a sanction, reduction in 71.17 benefits, suspension of benefits, denial of benefits, or 71.18 termination of benefits may request a fair hearing. A request 71.19 for a fair hearing must be submitted in writing to the county 71.20 agency or to the commissioner and must be mailed within 30 days 71.21 after a participant or former participant receives written 71.22 notice of the agency's action or within 90 days when a 71.23 participant or former participant shows good cause for not 71.24 submitting the request within 30 days. A former participant who 71.25 receives a notice of adverse action due to an overpayment may 71.26 appeal the adverse action according to the requirements in this 71.27 section. Issues that may be appealed are: 71.28 (1) the amount of the assistance payment; 71.29 (2) a suspension, reduction, denial, or termination of 71.30 assistance; 71.31 (3) the basis for an overpayment, the calculated amount of 71.32 an overpayment, and the level of recoupment; 71.33 (4) the eligibility for an assistance payment; and 71.34 (5) the use of protective or vendor payments under section 71.35 256J.39, subdivision 2, clauses (1) and (3). 71.36 A county agency must not reduce, suspend, or terminate 72.1 payment when an aggrieved participant requests a fair hearing 72.2 prior to the effective date of the adverse action or within ten 72.3 days of the mailing of the notice of adverse action, whichever 72.4 is later, unless the participant requests in writing not to 72.5 receive continued assistance pending a hearing decision. 72.6 Assistance issued pending a fair hearing is subject to recovery 72.7 under section 256J.38 when as a result of the fair hearing 72.8 decision the participant is determined ineligible for assistance 72.9 or the amount of the assistance received. A county agency may 72.10 increase or reduce an assistance payment while an appeal is 72.11 pending when the circumstances of the participant change and are 72.12 not related to the issue on appeal. The commissioner's order is 72.13 binding on a county agency. No additional notice is required to 72.14 enforce the commissioner's order. 72.15 A county agency shall reimburse appellants for reasonable 72.16 and necessary expenses of attendance at the hearing, such as 72.17 child care and transportation costs and for the transportation 72.18 expenses of the appellant's witnesses and representatives to and 72.19 from the hearing. Reasonable and necessary expenses do not 72.20 include legal fees. Fair hearings must be conducted at a 72.21 reasonable time and date by an impartial referee employed by the 72.22 department. The hearing may be conducted by telephone or at a 72.23 site that is readily accessible to persons with disabilities. 72.24 The appellant may introduce new or additional evidence 72.25 relevant to the issues on appeal. Recommendations of the 72.26 appeals referee and decisions of the commissioner must be based 72.27 on evidence in the hearing record and are not limited to a 72.28 review of the county agency action. 72.29 Section 29 is effective January 1, 1998, except the 72.30 transitional provision in section 72 applies. 72.31 Sec. 30. [256J.42] [60-MONTH TIME LIMIT.] 72.32 Subdivision 1. [TIME LIMIT.] (a) An assistance unit in 72.33 which any adult caregiver has received 60 months of cash 72.34 assistance funded in whole or in part by the TANF block grant is 72.35 ineligible to receive MFIP-S. Any cash assistance funded with 72.36 TANF dollars that was received by the unit on or after the date 73.1 MFIP-S was implemented, including any assistance received in 73.2 states of prior residence, counts toward the 60-month 73.3 limitation. The 60-month limit applies to a minor who is the 73.4 head of a household or who is married to the head of a 73.5 household. The 60-month time period does not need to be 73.6 consecutive months for this provision to apply. 73.7 (b) Months before July 1998 in which individuals receive 73.8 assistance as part of an MFIP, MFIP-R, or MFIP or MFIP-R 73.9 comparison group family under sections 256.031 to 256.0361 or 73.10 sections 256.047 to 256.048 are not included in the 60-month 73.11 time limit. 73.12 Subd. 2. [ASSISTANCE FROM ANOTHER STATE.] An individual is 73.13 ineligible to receive MFIP-S assistance in any month during 73.14 which that individual received benefits from another state under 73.15 the temporary assistance to needy families block grant 73.16 authorized by Title I of Public Law Number 104-193. 73.17 Subd. 3. [ADULTS LIVING ON AN INDIAN RESERVATION.] In 73.18 determining the number of months for which an adult has received 73.19 assistance under MFIP-S, the county agency must disregard any 73.20 month during which the adult lived on an Indian reservation if, 73.21 during the month: 73.22 (1) at least 1,000 individuals were living on the 73.23 reservation; and 73.24 (2) at least 50 percent of the adults living on the 73.25 reservation were unemployed. 73.26 Subd. 4. [VICTIMS OF DOMESTIC VIOLENCE.] Any cash 73.27 assistance received by an assistance unit in a month when a 73.28 caregiver is complying with a safety plan under the MFIP-S 73.29 employment and training component does not count toward the 73.30 60-month limitation on assistance. 73.31 Sec. 31. [256J.43] [INTERSTATE PAYMENT STANDARDS.] 73.32 (a) Effective July 1, 1997, the amount of assistance paid 73.33 to an eligible family in which all members have resided in this 73.34 state for fewer than 12 calendar months shall be the lesser of 73.35 either the payment standard that would have been received by the 73.36 family from the state of immediate prior residence, or the 74.1 amount calculated in accordance with AFDC or MFIP-S standards. 74.2 The lesser payment must continue until the family meets the 74.3 12-month requirement. Payment must be calculated by applying 74.4 this state's budgeting policies, and the unit's net income must 74.5 be deducted from the payment standard in the other state or in 74.6 this state, whichever is lower. Payment shall be made in vendor 74.7 form for rent and utilities, up to the limit of the grant 74.8 amount, and residual amounts, if any, shall be paid directly to 74.9 the assistance unit. 74.10 (b) During the first 12 months a family resides in this 74.11 state, the number of months that a family is eligible to receive 74.12 AFDC or MFIP-S benefits is limited to the number of months the 74.13 family would have been eligible to receive similar benefits in 74.14 the state of immediate prior residence. 74.15 (c) This policy applies whether or not the family received 74.16 similar benefits while residing in the state of previous 74.17 residence. 74.18 (d) When a family moves to this state from another state 74.19 where the family has exhausted that state's time limit for 74.20 receiving benefits under that state's TANF program, the family 74.21 will not be eligible to receive any AFDC or MFIP-S benefits in 74.22 this state for 12 months from the date the family moves here. 74.23 (e) For the purposes of this section, "state of immediate 74.24 prior residence" means: 74.25 (1) the state in which the applicant declares the applicant 74.26 spent the most time in the 30 days prior to moving to this 74.27 state; or 74.28 (2) the state in which an applicant who is a migrant worker 74.29 maintains a home. 74.30 (f) The commissioner shall annually verify and update all 74.31 other states' payment standards as they are to be in effect in 74.32 July of each year. 74.33 Sec. 32. [256J.44] [INITIAL SCREENING OF MFIP-S 74.34 APPLICANT.] 74.35 Subdivision 1. [SCREENING.] The county agency, or at 74.36 county option, the county's employment and training service 75.1 provider as defined in section 256J.49, must screen each 75.2 applicant to determine immediate needs and to determine if the 75.3 applicant may be eligible for: 75.4 (1) another program that is not partially funded through 75.5 the federal temporary assistance to needy families block grant 75.6 under title I of Public Law Number 104-193, including the 75.7 expedited issuance of food stamps under section 256J.28, 75.8 subdivision 1. If the applicant may be eligible for another 75.9 program, a county caseworker must provide the appropriate 75.10 referral to the program; 75.11 (2) the diversionary assistance program under section 75.12 256J.47; or 75.13 (3) the emergency assistance program under section 256J.48. 75.14 The applicant is required to attend the screening. If the 75.15 applicant is not diverted from applying for MFIP-S under clauses 75.16 (1) to (3), and if the applicant meets the MFIP-S eligibility 75.17 requirements, then an orientation under section 256J.45 and an 75.18 initial assessment under section 256J.52 must be completed; or, 75.19 in the case of caregivers who are under the age of 20, a plan 75.20 under section 256J.54 must be completed. 75.21 Subd. 2. [SUPPORT SERVICES TO ATTEND SCREENING AND 75.22 ORIENTATION.] Upon a caregiver's request, the county agency must 75.23 arrange for transportation and child care or reimburse 75.24 caregivers for transportation and child care expenses necessary 75.25 to enable caregivers to attend the initial screening under this 75.26 section and the orientation under section 256J.45 if scheduled 75.27 on a day other than when the caregiver makes application for 75.28 assistance. 75.29 Section 32 is effective January 1, 1998, except the 75.30 transitional provision in section 72 applies. 75.31 Sec. 33. [256J.45] [ORIENTATION.] 75.32 Subdivision 1. [COUNTY AGENCY TO PROVIDE ORIENTATION.] A 75.33 county agency must provide each MFIP-S caregiver with a 75.34 face-to-face orientation. The county agency may not require 75.35 caregivers to attend an MFIP-S orientation. If a caregiver does 75.36 not attend an orientation, the county agency must provide 76.1 written information to the caregiver about MFIP-S. 76.2 Subd. 2. [GENERAL INFORMATION.] The MFIP-S orientation 76.3 must consist of a presentation that informs caregivers of: 76.4 (1) the necessity to obtain immediate employment; 76.5 (2) the work incentives under MFIP-S; 76.6 (3) the requirement to comply with the employment plan and 76.7 other requirements of the employment and training services 76.8 component of MFIP-S; 76.9 (4) the consequences for failing to comply with the 76.10 employment plan and other program requirements; 76.11 (5) the rights, responsibilities, and obligations of 76.12 participants; 76.13 (6) the types and locations of child care services 76.14 available through the county agency; 76.15 (7) the availability and the benefits of the early 76.16 childhood health and developmental screening under sections 76.17 123.701 to 123.74; 76.18 (8) the caregiver's eligibility for transition year child 76.19 care assistance under section 119B.05; 76.20 (9) the caregiver's eligibility for extended medical 76.21 assistance when the caregiver loses eligibility for MFIP-S due 76.22 to increased earnings or increased child or spousal support; and 76.23 (10) the caregiver's option to choose an employment and 76.24 training provider and information about each provider, including 76.25 but not limited to, services offered, program components, job 76.26 placement rates, job placement wages, and job retention rates. 76.27 Section 33 is effective January 1, 1998, except the 76.28 transitional provision in section 72 applies. 76.29 Sec. 34. [256J.46] [SANCTIONS.] 76.30 Subdivision 1. [SANCTIONS FOR REFUSAL TO COOPERATE WITH 76.31 SUPPORT REQUIREMENTS.] The grant of an MFIP-S caregiver who 76.32 refuses to cooperate, as determined by the child support 76.33 enforcement agency, with support requirements under section 76.34 256J.30, must be reduced by 25 percent, and the assistance 76.35 unit's rent and utilities, if any, shall be vendor paid up to 76.36 the amount of the reduced MFIP-S grant. The residual amount of 77.1 the grant, if any, must be paid to the caregiver. A sanction 77.2 under this subdivision becomes effective ten days after the 77.3 required notice is given. The sanction must be in effect for a 77.4 minimum of one month, and shall be removed only when the 77.5 caregiver cooperates with the support requirements. For 77.6 purposes of this subdivision, each month that a participant 77.7 fails to comply with a requirement of section 256J.30 shall be 77.8 considered a separate occurrence of noncompliance. A 77.9 participant who has had one or more sanctions imposed must 77.10 remain in compliance with the provisions of this chapter for 12 77.11 months in order for a subsequent sanction to be considered a 77.12 first occurrence. A sanction under this subdivision is not 77.13 subject to the notice and supervisory review requirements of 77.14 section 256J.57, subdivision 2. 77.15 Subd. 1a. [TRANSITIONAL RULE; SANCTIONS FOR AFDC, FAMILY 77.16 GA, STRIDE, ACCESS, MFIP, OR MFIP-R RECIPIENTS.] For purposes of 77.17 determining a sanction under subdivision 2, a recipient of 77.18 assistance under AFDC, family general assistance, STRIDE, 77.19 ACCESS, MFIP, or MFIP-R, who was under a sanction in the month 77.20 immediately preceding the receipt of assistance under MFIP-S 77.21 shall be considered as having one occurrence of failure to 77.22 comply. A recipient of assistance under AFDC, family general 77.23 assistance, STRIDE, ACCESS, MFIP, or MFIP-R, who was under a 77.24 sanction in each of the two months immediately preceding the 77.25 receipt of assistance under MFIP-S shall be considered as having 77.26 two occurrences of failure to comply. The provisions of section 77.27 256J.57 do not apply to sanctions imposed under AFDC, family 77.28 general assistance, project STRIDE, ACCESS, MFIP, or MFIP-R. 77.29 Subd. 2. [SANCTIONS FOR PARTICIPANTS NOT COMPLYING WITH 77.30 PROGRAM REQUIREMENTS.] (a) A participant who fails without good 77.31 cause to comply with the requirements of this chapter other than 77.32 section 256J.30 shall be subject to a sanction consisting of 77.33 reduced MFIP-S assistance as provided in this subdivision. A 77.34 sanction under this subdivision becomes effective ten days after 77.35 the required notice is given. For purposes of this subdivision, 77.36 each month that a participant fails to comply with a requirement 78.1 of this chapter shall be considered a separate occurrence of 78.2 noncompliance. A participant who has had one or more sanctions 78.3 imposed must remain in compliance with the provisions of this 78.4 chapter for 12 months in order for a subsequent sanction to be 78.5 considered a first occurrence. 78.6 (b) Sanctions for noncompliance shall be imposed as 78.7 follows, provided the participant is not subject to sanction 78.8 under subdivision 1: 78.9 (1) For the first occurrence of failure to comply, a 78.10 participant's rent and utilities, if any, shall be vendor paid 78.11 up to the amount of the MFIP-S grant for which the participant's 78.12 assistance unit is eligible. The residual amount of the grant 78.13 after vendor payment, if any, must be reduced by an amount equal 78.14 to 25 percent of the applicable transitional standard before it 78.15 is paid to the participant. If the assistance unit is a 78.16 two-parent family and both parents are in noncompliance under 78.17 this subdivision, the residual amount of the grant, if any, must 78.18 be reduced by an additional five percent of the applicable 78.19 transitional standard before it is paid to the participant. The 78.20 sanction must be in effect for a minimum of one month, and shall 78.21 be removed only when the participant is in compliance. If the 78.22 participant is not paying rent and utilities, the county may opt 78.23 to vendor pay other expenses for basic needs, after applying the 78.24 required 25 percent reduction. 78.25 (2) For a second or subsequent occurrence, the 78.26 participant's rent and utilities, if any, shall be vendor paid 78.27 up to the amount of the MFIP-S grant for which the participant's 78.28 assistance unit is eligible. The residual amount of the grant 78.29 after vendor payment, if any, must be reduced by an amount equal 78.30 to 35 percent of the applicable transitional standard before the 78.31 residual is paid to the participant. If the assistance unit is 78.32 a two-parent family and both parents are in noncompliance under 78.33 this subdivision, the residual amount of the grant, if any, must 78.34 be reduced by an additional five percent of the applicable 78.35 transitional standard before it is paid to the participant. The 78.36 sanction must be in effect for a minimum of one month, and shall 79.1 be removed only when the participant is in compliance. If the 79.2 participant is not paying rent and utilities, the county may opt 79.3 to vendor pay other expenses for basic needs, after applying the 79.4 required 35 percent reduction. 79.5 (c) Sanctions for noncompliance shall be imposed as 79.6 provided in this paragraph for participants who are subject to 79.7 sanction under both subdivision 1 and this subdivision. For the 79.8 first and each subsequent occurrence, the participant's grant 79.9 must be reduced by 25 percent, and the assistance unit's rent 79.10 and utilities shall be vendor paid up to the amount of the 79.11 reduced grant, as provided in subdivision 1. The residual 79.12 amount of the grant after vendor payment, if any, must be 79.13 reduced by ten percent of the applicable transitional standard 79.14 before it is paid to the participant. If the assistance unit is 79.15 a two-parent family and both parents are in noncompliance under 79.16 this subdivision, the residual amount of the grant, if any, must 79.17 be reduced by an additional five percent of the applicable 79.18 transitional standard before it is paid to the participant. The 79.19 sanction must be in effect for a minimum of one month, and shall 79.20 be removed only when the participant is in compliance. 79.21 Subd. 3. [EXCEPTIONS DUE TO LACK OF DAY CARE.] 79.22 Notwithstanding subdivision 2, the county agency may not reduce 79.23 or terminate MFIP-S assistance based on a refusal of a 79.24 participant to comply with the requirements of the employment 79.25 and training component of MFIP-S if the participant is a single 79.26 custodial parent caring for a child who has not attained six 79.27 years of age, and the participant has a demonstrated inability, 79.28 as determined by the county agency, to obtain needed child care, 79.29 for one or more of the following reasons: 79.30 (1) unavailability of appropriate child care within a 79.31 reasonable distance from the participant's home or work site; 79.32 (2) unavailability or unsuitability of informal child care 79.33 by a relative or under other arrangements; or 79.34 (3) unavailability of appropriate and affordable formal 79.35 child care arrangements. 79.36 Sec. 35. [256J.47] [DIVERSIONARY ASSISTANCE PROGRAM.] 80.1 Subdivision 1. [ELIGIBILITY.] A family is eligible to 80.2 receive diversionary assistance once every 36 months if: 80.3 (1) a family member has resided in this state for at least 80.4 30 days; 80.5 (2) the caregiver provides verification that the caregiver 80.6 has either experienced an unexpected occurrence that makes it 80.7 impossible to retain or obtain employment or the caregiver has a 80.8 temporary loss of income, which is not due to refusing to accept 80.9 or terminating suitable employment as defined in section 80.10 256J.49, without good cause, resulting in an emergency; 80.11 (3) the caregiver is at risk of MFIP-S eligibility if 80.12 diversionary assistance is not provided and household income is 80.13 below 140 percent of the federal poverty guidelines; and 80.14 (4) the diversionary assistance will resolve the emergency 80.15 and divert the family from applying for MFIP-S. 80.16 For purposes of this section, diversionary assistance means 80.17 a one-time lump-sum payment to an individual or third-party 80.18 vendor to prevent long-term receipt of public assistance. 80.19 Subd. 2. [COUNTY AGENCY DUTIES.] County agencies shall: 80.20 (1) thoroughly explain to the caregiver the consequences of 80.21 receiving diversionary assistance, specifically the resulting 80.22 period of ineligibility under subdivision 4 for other assistance 80.23 programs; 80.24 (2) determine eligibility for diversionary assistance 80.25 within five working days of the receipt of the verification 80.26 required under subdivision 1; and 80.27 (3) verify all information as necessary. 80.28 Subd. 3. [MAXIMUM AMOUNT OF ASSISTANCE.] The maximum 80.29 amount of diversionary assistance that may be provided to a 80.30 family is equal to the amount of the MFIP-S standard for the 80.31 same family size and composition for four months. The 80.32 assistance provided under this program must be based on the 80.33 immediate needs of the family. Counties must strive to provide 80.34 the most cost-effective solution to the one-time emergency. 80.35 Diversionary assistance is not cost effective if the family's 80.36 anticipated income added to the diversion payment will not be 81.1 sufficient to cover the family's immediate needs for the period 81.2 of ineligibility under subdivision 4, beginning with the month 81.3 of application, or another emergency can reasonably be 81.4 anticipated within the period of ineligibility. 81.5 Subd. 4. [INELIGIBILITY FOR MFIP-S; EMERGENCY ASSISTANCE; 81.6 AND EMERGENCY GENERAL ASSISTANCE.] Upon receipt of diversionary 81.7 assistance, the family is ineligible for MFIP-S, emergency 81.8 assistance, and emergency general assistance for a period of 81.9 time. To determine the period of ineligibility, the county 81.10 shall use the following formula: regardless of household 81.11 changes, the county agency must calculate the number of days of 81.12 ineligibility by dividing the diversionary assistance issued by 81.13 the maximum monthly amount a family of the same size and 81.14 composition would have received under MFIP-S, multiplied by 30, 81.15 truncating the result. The ineligibility period begins the date 81.16 the diversionary assistance is issued. 81.17 Subd. 5. [DIVERSIONARY ASSISTANCE GRANT; FUNDING] The 81.18 commissioner shall distribute diversionary assistance grants to 81.19 counties. The commissioner may use federal block grant funding 81.20 or state funding for the grants. 81.21 Section 35 is effective January 1, 1998, except the 81.22 transitional provision in section 72 applies. 81.23 Sec. 36. [256J.48] [EMERGENCY ASSISTANCE (EA).] 81.24 Subdivision 1. [EMERGENCY FINANCIAL ASSISTANCE.] County 81.25 human service agencies shall grant emergency financial 81.26 assistance to any needy pregnant woman or needy family with a 81.27 child under the age of 21 who is or was within six months prior 81.28 to application living with an eligible caregiver relative 81.29 specified in section 256J.08. 81.30 Except for ongoing special diets, emergency assistance is 81.31 available to a family during one 30-day period in a consecutive 81.32 12-month period. A county shall issue assistance for needs that 81.33 accrue before that 30-day period only when it is necessary to 81.34 resolve emergencies arising or continuing during the 30-day 81.35 period of eligibility. When emergency needs continue, a county 81.36 may issue assistance for up to 30 days beyond the initial 30-day 82.1 period of eligibility, but only when assistance is authorized 82.2 during the initial period. 82.3 Subd. 2. [ELIGIBILITY.] Notwithstanding other eligibility 82.4 provisions of this chapter, any family without resources 82.5 immediately available to meet emergency needs identified in 82.6 subdivision 3 shall be eligible for an emergency grant under the 82.7 following conditions: 82.8 (1) a family member has resided in this state for at least 82.9 30 days; 82.10 (2) the family is without resources immediately available 82.11 to meet emergency needs; 82.12 (3) assistance is necessary to avoid destitution or provide 82.13 emergency shelter arrangements; and 82.14 (4) the family's destitution or need for shelter or 82.15 utilities did not arise because the child or relative caregiver 82.16 refused without good cause to accept employment or training for 82.17 employment in another state. 82.18 Subd. 3. [EMERGENCY NEEDS.] Emergency needs are limited to 82.19 the following: 82.20 (a) [RENT.] A county agency may deny assistance to prevent 82.21 eviction from rented or leased shelter of an otherwise eligible 82.22 applicant when the county agency determines that an applicant's 82.23 anticipated income will not cover continued payment for shelter, 82.24 subject to conditions in clauses (1) to (3): 82.25 (1) a county agency must not deny assistance when an 82.26 applicant can document that the applicant is unable to locate 82.27 habitable shelter, unless the county agency can document that 82.28 one or more habitable shelters are available in the community 82.29 that will result in at least a 20 percent reduction in monthly 82.30 expense for shelter and that this shelter will be cost-effective 82.31 for the applicant; 82.32 (2) when no alternative shelter can be identified by either 82.33 the applicant or the county agency, the county agency shall not 82.34 deny assistance because anticipated income will not cover rental 82.35 obligation; and 82.36 (3) when cost-effective alternative shelter is identified, 83.1 the county agency shall issue assistance for moving expenses as 83.2 provided in paragraph (d). 83.3 (b) [DEFINITIONS.] For purposes of paragraph (a), the 83.4 following definitions apply (1) "metropolitan statistical area" 83.5 is as defined by the U.S. Census Bureau; (2) "alternative 83.6 shelter" includes any shelter that is located within the 83.7 metropolitan statistical area containing the county and for 83.8 which the applicant is eligible, provided the applicant does not 83.9 have to travel more than 20 miles to reach the shelter and has 83.10 access to transportation to the shelter. Clause (2) does not 83.11 apply to counties in the Minneapolis-St. Paul metropolitan 83.12 statistical area. 83.13 (c) [MORTGAGE AND CONTRACT FOR DEED ARREARAGES.] A county 83.14 agency shall issue assistance for mortgage or contract for deed 83.15 arrearages on behalf of an otherwise eligible applicant 83.16 according to clauses (1) to (5): 83.17 (1) assistance for arrearages must be issued only when a 83.18 home is owned, occupied, and maintained by the applicant; 83.19 (2) assistance for arrearages must be issued only when no 83.20 subsequent foreclosure action is expected within the 12 months 83.21 following the issuance; 83.22 (3) assistance for arrearages must be issued only when an 83.23 applicant has been refused refinancing through a bank or other 83.24 lending institution and the amount payable, when combined with 83.25 any payments made by the applicant, will be accepted by the 83.26 creditor as full payment of the arrearage; 83.27 (4) costs paid by a family which are counted toward the 83.28 payment requirements in clause (5) are: principle and interest 83.29 payments on mortgages or contracts for deed, balloon payments, 83.30 homeowner's insurance payments, manufactured home lot rental 83.31 payments, and tax or special assessment payments related to the 83.32 homestead. Costs which are not counted include closing costs 83.33 related to the sale or purchase of real property. 83.34 To be eligible for assistance for costs specified in clause 83.35 (4) which are outstanding at the time of foreclosure, an 83.36 applicant must have paid at least 40 percent of the family's 84.1 gross income toward these costs in the month of application and 84.2 the 11-month period immediately preceding the month of 84.3 application. 84.4 When an applicant is eligible under clause (4), a county 84.5 agency shall issue assistance up to a maximum of four times the 84.6 MFIP-S transitional standard for a comparable assistance unit. 84.7 (d) [DAMAGE DEPOSITS.] A county agency shall issue 84.8 assistance for damage deposits when necessary to alleviate the 84.9 emergency. 84.10 (e) [MOVING EXPENSES.] A county agency shall issue 84.11 assistance for expenses incurred when a family must move to a 84.12 different shelter according to clauses (1) to (4): 84.13 (1) moving expenses include the cost to transport personal 84.14 property belonging to a family, the cost for utility connection, 84.15 and the cost for securing different shelter; 84.16 (2) moving expenses must be paid only when the county 84.17 agency determines that a move is cost-effective; 84.18 (3) moving expenses must be paid at the request of an 84.19 applicant, but only when destitution or threatened destitution 84.20 exists; and 84.21 (4) moving expenses must be paid when a county agency 84.22 denies assistance to prevent an eviction because the county 84.23 agency has determined that an applicant's anticipated income 84.24 will not cover continued shelter obligation in paragraph (a). 84.25 (f) [HOME REPAIRS.] A county agency shall pay for repairs 84.26 to the roof, foundation, wiring, heating system, chimney, and 84.27 water and sewer system of a home that is owned and lived in by 84.28 an applicant. 84.29 The applicant shall document, and the county agency shall 84.30 verify the need for and method of repair. 84.31 The payment must be cost-effective in relation to the 84.32 overall condition of the home and in relation to the cost and 84.33 availability of alternative housing. 84.34 (g) [UTILITY COSTS.] Assistance for utility costs must be 84.35 made when an otherwise eligible family has had a termination or 84.36 is threatened with a termination of municipal water and sewer 85.1 service, electric, gas or heating fuel service, or lacks wood 85.2 when that is the heating source, subject to the conditions in 85.3 clauses (1) and (2): 85.4 (1) a county agency must not issue assistance unless the 85.5 county agency receives confirmation from the utility provider 85.6 that assistance combined with payment by the applicant will 85.7 continue or restore the utility; and 85.8 (2) a county agency shall not issue assistance for utility 85.9 costs unless a family paid at least eight percent of the 85.10 family's gross income toward utility costs due during the 85.11 preceding 12 months. 85.12 Clauses (1) and (2) must not be construed to prevent the 85.13 issuance of assistance when a county agency must take immediate 85.14 and temporary action necessary to protect the life or health of 85.15 a child. 85.16 (h) [SPECIAL DIETS.] A county shall pay for special diets 85.17 or dietary items. The need for special diets or dietary items 85.18 must be prescribed by a licensed physician. Costs for special 85.19 diets shall be determined as percentages of the allotment for a 85.20 one-person household under the Thrifty Food Plan as defined by 85.21 the United States Department of Agriculture. The types of diets 85.22 and the percentages of the Thrifty Food Plan that are covered 85.23 are as follows: 85.24 (1) high protein diet, at least 80 grams daily, 25 percent 85.25 of Thrifty Food Plan; 85.26 (2) controlled protein diet, 40 to 60 grams and requires 85.27 special products, 100 percent of Thrifty Food Plan; 85.28 (3) controlled protein diet, less than 40 grams and 85.29 requires special products, 125 percent of Thrifty Food Plan; 85.30 (4) low cholesterol diet, 25 percent of Thrifty Food Plan; 85.31 (5) high residue diet, 20 percent of Thrifty Food Plan; 85.32 (6) pregnancy and lactation diet, 35 percent of Thrifty 85.33 Food Plan; 85.34 (7) gluten-free diet, 25 percent of Thrifty Food Plan; 85.35 (8) lactose-free diet, 25 percent of Thrifty Food Plan; 85.36 (9) antidumping diet, 15 percent of Thrifty Food Plan; 86.1 (10) hypoglycemic diet, 15 percent of Thrifty Food Plan; or 86.2 (11) ketogenic diet, 25 percent of Thrifty Food Plan. 86.3 Subd. 4. [VENDOR PAYMENTS FOR SHELTER OR UTILITY 86.4 COSTS.] If an MFIP-S participant applies for and receives 86.5 emergency assistance for shelter and utility costs under 86.6 subdivision 3, paragraph (a), (b), (c), or (f), the ongoing 86.7 MFIP-S assistance payment shall be in the form of vendor 86.8 payments. 86.9 Section 36 is effective January 1, 1998, except the 86.10 transitional provision in section 72 applies. 86.11 Sec. 37. [256J.49] [EMPLOYMENT AND TRAINING SERVICES; 86.12 DEFINITIONS.] 86.13 Subdivision 1. [SCOPE.] The terms used in sections 256J.50 86.14 to 256J.72 have the meanings given them in this section. 86.15 Subd. 2. [DOMESTIC VIOLENCE.] "Domestic violence" means: 86.16 (1) physical acts that result, or threaten to result in, 86.17 physical injury to an individual; 86.18 (2) sexual abuse; 86.19 (3) sexual activity involving a minor child; 86.20 (4) being forced as the caregiver of a minor child to 86.21 engage in nonconsensual sexual acts or activities; 86.22 (5) threats of, or attempts at, physical or sexual abuse; 86.23 (6) mental abuse; or 86.24 (7) neglect or deprivation of medical care. 86.25 Subd. 3. [EMPLOYMENT AND TRAINING SERVICES.] "Employment 86.26 and training services" means programs, activities and services 86.27 that are designed to assist participants in obtaining and 86.28 retaining employment. 86.29 Subd. 4. [EMPLOYMENT AND TRAINING SERVICE 86.30 PROVIDER.] "Employment and training service provider" means: 86.31 (1) a public, private, or nonprofit employment and training 86.32 agency certified by the commissioner of economic security under 86.33 sections 268.0122, subdivision 3, and 268.871, subdivision 1, or 86.34 is approved under section 256J.51 and is included in the county 86.35 plan submitted under section 256J.50, subdivision 6; 86.36 (2) a public, private, or nonprofit agency that is not 87.1 certified by the commissioner under clause (1), but with which a 87.2 county has contracted to provide employment and training 87.3 services; or 87.4 (3) a county agency, if the county has opted to provide 87.5 employment and training services. 87.6 Notwithstanding section 268.871, an employment and training 87.7 services provider meeting this definition may deliver employment 87.8 and training services under this chapter. 87.9 Subd. 5. [EMPLOYMENT PLAN.] "Employment plan" means a plan 87.10 developed by the job counselor and the participant which 87.11 identifies the participant's most direct path to unsubsidized 87.12 employment, lists the specific steps that the participant will 87.13 take on that path, and includes a timetable for the completion 87.14 of each step. 87.15 Subd. 6. [FEDERAL PARTICIPATION STANDARDS.] "Federal 87.16 participation standards" means the work participation standards 87.17 as specified in title I of Public Law Number 104-193, the 87.18 Personal Responsibility and Work Opportunity Reconciliation Act 87.19 of 1996. 87.20 Subd. 7. [INTENSIVE ENGLISH AS A SECOND 87.21 LANGUAGE.] "Intensive English as a second language" means an 87.22 English as a second language program that offers at least 20 87.23 hours of class per week. 87.24 Subd. 8. [JOB COUNSELOR.] "Job counselor" means a staff 87.25 person employed by the employment and training services provider 87.26 who delivers services as specified in sections 256J.50 to 87.27 256J.55. 87.28 Subd. 9. [PARTICIPANT.] "Participant" means a recipient of 87.29 MFIP-S assistance who participates or is required to participate 87.30 in employment and training services. 87.31 Subd. 10. [PROVIDER.] "Provider" means an employment and 87.32 training service provider. 87.33 Subd. 11. [SAFETY PLAN.] "Safety plan" means a plan 87.34 developed by a victim of domestic violence with the assistance 87.35 of a public agency or a private nonprofit agency, including 87.36 agencies that receive designation by the department of 88.1 corrections to provide emergency shelter services or support 88.2 services under section 611A.32. A safety plan shall not include 88.3 a provision that automatically requires a domestic violence 88.4 victim to seek an order of protection, or to attend counseling, 88.5 as part of the safety plan. 88.6 Subd. 12. [SUITABLE EMPLOYMENT.] "Suitable employment" 88.7 means employment that: 88.8 (1) is within the participant's physical and mental 88.9 abilities; 88.10 (2) pays hourly gross wages of not less than the applicable 88.11 state or federal minimum wage; and 88.12 (3) meets health and safety standards set by federal, state 88.13 and county agencies. 88.14 Subd. 13. [WORK ACTIVITY.] "Work activity" means any 88.15 activity in a participant's approved employment plan that is 88.16 tied to the participant's employment goal . For purposes of the 88.17 MFIP-S program, any activity that is included in a participant's 88.18 approved employment plan meets the definition of work activity 88.19 as counted under the federal participation standards. Work 88.20 activity includes, but is not limited to: 88.21 (1) unsubsidized employment; 88.22 (2) subsidized private sector or public sector employment, 88.23 including grant diversion as specified in section 256J.69; 88.24 (3) work experience, including CWEP as specified in section 88.25 256J.67, and including work associated with the refurbishing of 88.26 publicly assisted housing if sufficient private sector 88.27 employment is not available; 88.28 (4) on-the-job training as specified in section 256J.66; 88.29 (5) job search, either supervised or unsupervised; 88.30 (6) job readiness assistance; 88.31 (7) job clubs, including job search workshops; 88.32 (8) job placement; 88.33 (9) job development; 88.34 (10) job-related counseling; 88.35 (11) job coaching; 88.36 (12) job retention services; 89.1 (13) job-specific training or education ; 89.2 (14) job skills training directly related to employment; 89.3 (15) the self-employment investment demonstration (SEID), 89.4 as specified in section 256J.65; 89.5 (16) preemployment activities, based on availability and 89.6 resources, such as volunteer work, citizenship and English as a 89.7 second language classes, or participation in dislocated worker 89.8 services, chemical dependency treatment, mental health services, 89.9 peer group networks, displaced homemaker programs, parenting 89.10 education, or other programs designed to help families reach 89.11 their employment goals and enhance their ability to care for 89.12 their children; 89.13 (17) community service programs; 89.14 (18) vocational educational training or educational 89.15 programs that can reasonably be expected to lead to employment, 89.16 as limited by the provisions of section 256J.53; 89.17 (19) apprenticeships; 89.18 (20) satisfactory attendance in general educational 89.19 development diploma classes; 89.20 (21) satisfactory attendance at secondary school, if the 89.21 participant has not received a high school diploma; 89.22 (22) adult basic education classes; 89.23 (23) internships; 89.24 (24) bilingual employment and training services; 89.25 (25) providing child care services to a participant who is 89.26 working in a community service program; and 89.27 (26) activities included in a safety plan that is developed 89.28 under section 256J.52, subdivision 6. 89.29 Section 37 is effective January 1, 1998, except the 89.30 transitional provision in section 72 applies. 89.31 Sec. 38. [256J.50] [COUNTY DUTIES.] 89.32 Subdivision 1. [EMPLOYMENT AND TRAINING SERVICES COMPONENT 89.33 OF MFIP-S.] (a) By January 1, 1998, each county must develop and 89.34 implement an employment and training services component of 89.35 MFIP-S which is designed to put participants on the most direct 89.36 path to unsubsidized employment. Participation in these 90.1 services is mandatory for all MFIP-S caregivers, unless the 90.2 caregiver is exempt under section 256J.56, and is required 90.3 concurrent with the receipt of MFIP-S cash assistance. 90.4 (b) A county may provide employment and training services 90.5 to MFIP-S caregivers who are exempt from the employment and 90.6 training services component but volunteer for the services. 90.7 Subd. 2. [PILOT PROGRAMS.] In counties selected for the 90.8 work first or work focused pilot programs, first-time applicants 90.9 for assistance must meet the requirements of those programs in 90.10 place of the requirements of the MFIP-S program. A county may, 90.11 at its option, discontinue a work first or work focused pilot 90.12 program. 90.13 Subd. 3. [TRANSITIONAL RULE; MFIP OR MFIP-R 90.14 PARTICIPANT.] A caregiver who was enrolled in MFIP or MFIP-R 90.15 immediately before enrolling in MFIP-S, and who was making 90.16 satisfactory progress toward the objectives specified in the 90.17 caregiver's employment plan, may, with the approval of a job 90.18 counselor, continue with the existing employment plan for up to 90.19 one year after the caregiver is enrolled in MFIP-S. The job 90.20 counselor may require changes to the plan in order to be 90.21 consistent with the time limit. 90.22 Subd. 3a. [TRANSITIONAL RULE; STRIDE, ACCESS.] (a) A 90.23 county agency that is not a participant in the MFIP or MFIP-R 90.24 field trials under sections 256.031 to 256.0361 shall not enroll 90.25 a recipient into project STRIDE or ACCESS after the date that 90.26 MFIP-S is implemented in the county. 90.27 (b) A caregiver who: 90.28 (i) was enrolled in project STRIDE or ACCESS continuously 90.29 since March 1, 1997; 90.30 (ii) is not a part of an MFIP or MFIP-R comparison group; 90.31 and 90.32 (iii) who is making satisfactory progress toward the 90.33 objectives specified in the caregiver's employment plan, may, 90.34 with the approval of the job counselor, continue with the 90.35 existing employment plan for up to two years after the caregiver 90.36 is enrolled in MFIP-S. For purposes of the federal 91.1 participation standards, the activities in the caregiver's 91.2 employment plan are work activities, as that term is defined in 91.3 section 256J.49, subdivision 13. 91.4 (c) Notwithstanding contrary provisions of section 256.736, 91.5 the employability plan of a caregiver who is enrolled in project 91.6 STRIDE or ACCESS on or after July 1, 1997, must meet the 91.7 requirements of sections 256J.52, subdivisions 4 and 5, and 91.8 256J.53, or section 256J.54, if applicable. 91.9 Subd. 4. [SERVICE-PROVIDING AGENCIES.] Counties may select 91.10 one or more employment and training service providers, or may 91.11 opt to provide services on their own. 91.12 Subd. 5. [COUNTY OPTION FOR EARLY IMPLEMENTATION.] A 91.13 county may opt to implement its employment and training services 91.14 component of MFIP-S before January 1, 1998. A county that does 91.15 so is eligible for a bonus payment as specified under this 91.16 subdivision. For each participant that is engaged, prior to 91.17 January 1, in job search under section 256J.52, subdivision 3, 91.18 in activities that are part of an employment plan under section 91.19 256J.52, subdivision 5, or in activities that are part of a 91.20 safety plan under section 256J.52, subdivision 6, the county is 91.21 eligible for a bonus payment of $100. The commissioner must add 91.22 any bonus payments earned under this subdivision to the county's 91.23 employment and training services allocation for fiscal year 91.24 1998. Bonus payments must not supplant, and must be in addition 91.25 to, a county's allocation under section 256J.62. 91.26 Subd. 6. [COUNTY PLAN.] Each county agency shall prepare 91.27 and submit a plan as specified in section 268.88. 91.28 Subd. 7. [COUNTY DUTY TO ENSURE EMPLOYMENT AND TRAINING 91.29 CHOICES FOR PARTICIPANTS.] Each county, or group of counties 91.30 working cooperatively, shall make available to participants the 91.31 choice of at least two employment and training service providers 91.32 as defined under section 256J.49, subdivision 4, except in 91.33 counties utilizing workforce centers that use multiple 91.34 employment providers, offer multiple services options under a 91.35 collaborative effort and can document that participants have 91.36 choice among employment and training services designed to meet 92.1 specialized needs. 92.2 Subd. 8. [EXCEPTION; FINANCIAL HARDSHIP.] Notwithstanding 92.3 subdivision 7, a county that demonstrates in the plan required 92.4 under subdivision 6 that the provision of alternative employment 92.5 and training service providers would result in financial 92.6 hardship for the county is not required to make available more 92.7 than one employment and training provider. 92.8 Section 38 is effective January 1, 1998, except the 92.9 transitional provision in section 72 applies. 92.10 Sec. 39. [256J.51] [EMPLOYMENT AND TRAINING SERVICE 92.11 PROVIDER; ALTERNATE APPROVAL PROCESS.] 92.12 Subdivision 1. [PROVIDER APPLICATION.] An employment and 92.13 training service provider that is not included in a county's 92.14 plan under section 256J.50, subdivision 6, because the county 92.15 has demonstrated financial hardship under subdivision 7 of that 92.16 section, may appeal its exclusion to the commissioner of 92.17 economic security under this section. 92.18 Subd. 2. [APPEAL; ALTERNATE APPROVAL.] (a) An employment 92.19 and training service provider that is not included by a county 92.20 agency in the plan under section 256J.50, subdivision 6, and 92.21 that meets the criteria in paragraph (b), may appeal its 92.22 exclusion to the commissioner of economic security, and may 92.23 request alternative approval by the commissioner of economic 92.24 security to provide services in the county. 92.25 (b) An employment and training services provider that is 92.26 requesting alternative approval must demonstrate to the 92.27 commissioner that the provider meets the standards specified in 92.28 section 268.871, subdivision 1, paragraph (b), except that the 92.29 provider's past experience may be in services and programs 92.30 similar to those specified in section 268.871, subdivision 1, 92.31 paragraph (b). 92.32 Subd. 3. [COMMISSIONER'S REVIEW.] The commissioner must 92.33 act on a request for alternative approval under this section 92.34 within 30 days of the receipt of the request. If after 92.35 reviewing the provider's request, and the county's plan 92.36 submitted under section 256J.50, subdivision 6, the commissioner 93.1 determines that the provider meets the criteria under 93.2 subdivision 2, paragraph (b), and that approval of the provider 93.3 would not cause financial hardship to the county, the county 93.4 must submit a revised plan under subdivision 4 that includes the 93.5 approved provider. 93.6 Subd. 4. [REVISED PLAN REQUIRED.] The commissioner of 93.7 economic security must notify the county agency when the 93.8 commissioner grants an alternative approval to an employment and 93.9 training service provider under subdivision 2. Upon receipt of 93.10 the notice, the county agency must submit a revised plan under 93.11 section 256J.50, subdivision 6, that includes the approved 93.12 provider. The county has 90 days from the receipt of the 93.13 commissioner's notice to submit the revised plan. 93.14 Subd. 5. [REVIEW NOT REQUIRED.] Notwithstanding 93.15 subdivision 3, once a county meets the requirements of section 93.16 256J.50, subdivision 7, the commissioner may, but is not 93.17 required to, act on a request by an employment and training 93.18 services provider for alternative approval in that county. 93.19 Section 39 is effective January 1, 1998, except the 93.20 transitional provision in section 72 applies. 93.21 Sec. 40. [256J.515] [OVERVIEW OF EMPLOYMENT AND TRAINING 93.22 SERVICES.] 93.23 During the first meeting with participants, job counselors 93.24 must provide an overview of employment and training services 93.25 that stresses the necessity and opportunity of immediate 93.26 employment, outlines the job search resources offered, explains 93.27 the requirements to comply with an employment plan and the 93.28 consequences for failing to comply, and explains the services 93.29 that are available to support job search and work. 93.30 Section 40 is effective January 1, 1998, except the 93.31 transitional provision in section 72 applies. 93.32 Sec. 41. [256J.52] [ASSESSMENTS; PLANS.] 93.33 Subdivision 1. [APPLICATION LIMITED TO CERTAIN 93.34 PARTICIPANTS.] This section applies to participants receiving 93.35 MFIP-S assistance who are not exempt under section 256J.56, and 93.36 to caregivers who volunteer for employment and training services 94.1 under section 256J.50. 94.2 Subd. 2. [INITIAL ASSESSMENT.] (a) The job counselor must, 94.3 with the cooperation of the participant, assess the 94.4 participant's ability to obtain and retain employment. This 94.5 initial assessment must include a review of the participant's 94.6 education level, prior employment or work experience, 94.7 transferable work skills, and existing job markets. 94.8 (b) In assessing the participant, the job counselor must 94.9 determine if the participant needs refresher courses for 94.10 professional certification or licensure. If one or more 94.11 refresher courses are needed, the job search support plan under 94.12 subdivision 3 must include the courses necessary to obtain the 94.13 certification or licensure, in addition to other work 94.14 activities, provided the combination of the refresher courses 94.15 and other work activities are at least for 40 hours per week. 94.16 After obtaining the license or certificate, the participant must 94.17 comply with the provisions of subdivision 5. 94.18 (c) If a participant can demonstrate to the satisfaction of 94.19 the county agency that lack of proficiency in English is a 94.20 barrier to obtaining suitable employment, the provider may 94.21 include participation in an intensive English as a second 94.22 language program, in the participant's employment plan under 94.23 subdivision 5. 94.24 (d) A participant who, at the time of the initial 94.25 assessment under this section, is in an education program that 94.26 satisfies the criteria in section 256J.53, may, with the 94.27 approval of the job counselor, postpone job search. The 94.28 participant must be assessed under subdivision 4, and an 94.29 employment plan that includes completion of the education 94.30 program must be developed. 94.31 Subd. 3. [JOB SEARCH; JOB SEARCH SUPPORT PLAN.] (a) If, 94.32 after the initial assessment, the job counselor determines that 94.33 the participant possesses sufficient skills that the participant 94.34 is likely to succeed in obtaining suitable employment, the 94.35 participant must conduct job search for a period of up to four 94.36 weeks, for the number of hours per week required under federal 95.1 participation standards or 30 hours per week, whichever is 95.2 greater. The participant must accept any offer of suitable 95.3 employment. The job counselor and participant must develop a 95.4 job search support plan which specifies, at a minimum: whether 95.5 the job search is to be supervised or unsupervised; support 95.6 services that will be provided while the participant conducts 95.7 job search activities; the refresher courses necessary for 95.8 professional certification or licensure, if applicable; and how 95.9 frequently the participant must report to the job counselor on 95.10 the status of the participant's job search activities. 95.11 (b) If at the end of four weeks the participant has not 95.12 obtained suitable employment, the job counselor must review the 95.13 participant's job search support plan and must either direct the 95.14 participant to conduct an additional four weeks of job search or 95.15 must conduct a secondary assessment of the participant under 95.16 subdivision 4. A participant shall not be required to conduct 95.17 more than a total of eight weeks of job search under this 95.18 subdivision. 95.19 Subd. 4. [SECONDARY ASSESSMENT.] (a) The job counselor 95.20 must conduct a secondary assessment for those participants who: 95.21 (1) in the judgment of the job counselor, have barriers to 95.22 obtaining and retaining employment that will not be overcome 95.23 with a job search support plan under subdivision 3; or 95.24 (2) have completed at least four weeks of job search under 95.25 subdivision 3 without obtaining suitable employment; or 95.26 (3) have not received a secondary assessment, are working 95.27 at least 20 hours per week, and the participant, job counselor, 95.28 or county agency requests a secondary assessment. 95.29 (b) In the secondary assessment the job counselor must 95.30 evaluate the participant's skills and prior work experience, 95.31 family circumstances, interests and abilities, need for 95.32 preemployment activities, supportive or educational services, 95.33 and the extent of any barriers to employment. The job counselor 95.34 must use the information gathered through the secondary 95.35 assessment to develop an employment plan under subdivision 5. 95.36 Subd. 5. [EMPLOYMENT PLAN; CONTENTS.] (a) Based on the 96.1 secondary assessment under subdivision 4, the job counselor and 96.2 the participant must develop an employment plan for the 96.3 participant that includes specific activities that are designed 96.4 to move the participant along the most direct path to 96.5 unsubsidized employment. 96.6 If the participant has an employment goal which can best be 96.7 met with additional education or training and is expected to 96.8 result in higher wages than the participant could earn without 96.9 the additional education or training, the participant, in 96.10 consultation with the job counselor, may propose an employment 96.11 plan that includes activities approved under the criteria of 96.12 section 256J.53. The employment plan must list the specific 96.13 steps that will be taken to obtain employment and a timetable 96.14 for completion of each of the steps. The job counselor and the 96.15 participant must sign the developed plan to indicate agreement 96.16 between the job counselor and the participant on the contents of 96.17 the plan. 96.18 (b) For a parent in a two-parent family who is required to 96.19 participate in the employment and training services component of 96.20 MFIP-S, activities that are considered for the participant's 96.21 plan must generally be limited to those listed in section 96.22 256J.49, subdivision 12, clauses (1) to (17). Activities listed 96.23 in clauses (18) to (26) of that subdivision may be included on 96.24 an exception basis. 96.25 Subd. 6. [SAFETY PLAN.] Notwithstanding subdivisions 1 to 96.26 5, a participant who is a victim of domestic violence and who 96.27 agrees to develop or has developed a safety plan meeting the 96.28 definition under section 256J.49, subdivision 11, is deferred 96.29 from the requirements of this section and sections 256J.54 and 96.30 256J.55 for a period three months from the date the participant 96.31 agreed to develop the plan. A participant deferred under this 96.32 subdivision must submit a safety plan status report to the 96.33 county agency on a quarterly basis. Based on a review of the 96.34 status report, the county agency may renew the participant's 96.35 deferral each quarter, provided the personal safety of the 96.36 participant is still at risk and the participant is complying 97.1 with the safety plan. A participant who is deferred under this 97.2 subdivision may be deferred for a total of 12 months under a 97.3 safety plan, provided the individual is complying with the terms 97.4 of the plan. 97.5 Subd. 7. [MINOR PARENTS; ASSESSMENT.] An MFIP-S caregiver 97.6 who is under the age of 20 must be assessed and have a plan 97.7 developed as provided in section 256J.54. 97.8 Subd. 8. [REVISION OF PLAN.] If the employee has lost or 97.9 quit a job with good cause, the job counselor must ascertain the 97.10 reason for the job loss and work with the participant to amend 97.11 the job search support plan or employment plan, whichever is in 97.12 effect, as necessary to address the problem. If a job search 97.13 support plan is in effect, the participant, county agency, or 97.14 job counselor may request a secondary assessment at this time. 97.15 Section 41 is effective January 1, 1998, except the 97.16 transitional provision in section 72 applies. 97.17 Sec. 42. [256J.53] [POST-SECONDARY EDUCATION; LIMITATIONS 97.18 ON APPROVAL, JOB SEARCH REQUIREMENT.] 97.19 Subdivision 1. [LENGTH OF PROGRAM.] In order for a 97.20 post-secondary education or training program to be approved work 97.21 activity as defined in section 256J.49, subdivision 13, clause 97.22 (18), it must be a program lasting 12 months or less, and the 97.23 participant must meet the requirements of subdivisions 2 and 3. 97.24 A program lasting up to 24 months may be approved on an 97.25 exception basis if the conditions specified in subdivisions 2 to 97.26 4 are met. A participant may not be approved for more than a 97.27 total of 24 months of post-secondary education or training, 97.28 including any months of education or training in a STRIDE or 97.29 ACCESS plan that is continued under section 256J.50, subdivision 97.30 3a. 97.31 Subd. 2. [DOCUMENTATION SUPPORTING PROGRAM.] In order for 97.32 a post-secondary education or training program to be an approved 97.33 activity in a participant's employment plan, the participant or 97.34 the employment and training service provider must provide 97.35 documentation that: 97.36 (1) the participant's employment plan identifies specific 98.1 goals that can only be met with the additional education or 98.2 training; 98.3 (2) there are suitable employment opportunities that 98.4 requires the specific education or training in the area in which 98.5 the participant resides or is willing to reside; 98.6 (3) the education or training will result in significantly 98.7 higher wages for the participant than the participant could earn 98.8 without the education or training; 98.9 (4) the participant can meet the requirements for admission 98.10 into the program; and 98.11 (5) there is a reasonable expectation that the participant 98.12 will complete the training program based on such factors as the 98.13 participant's MFIP-S assessment, previous education, training, 98.14 and work history; current motivation; and changes in previous 98.15 circumstances. 98.16 Subd. 3. [SATISFACTORY PROGRESS REQUIRED.] In order for a 98.17 post-secondary education or training program to be an approved 98.18 activity in a participant's employment plan, the participant 98.19 must maintain satisfactory progress in the program. 98.20 "Satisfactory progress" in an education or training program 98.21 means the participant remains in good standing after completion 98.22 of the second grading period, and maintains at least a 98.23 cumulative grade point average of C or its equivalent while the 98.24 participant is enrolled in the program, as defined by the 98.25 education or training institution, and the participant meets the 98.26 requirements of the participant's employment plan. 98.27 Subd. 4. [REPAYMENT OF EMPLOYMENT AND TRAINING 98.28 ASSISTANCE.] In order for a post-secondary education or training 98.29 program lasting between 13 and 24 months to be an approved 98.30 activity in a participant's employment plan, the participant 98.31 must maintain satisfactory progress in the program and must 98.32 agree to repay the amount of employment and training funds paid 98.33 by the county to support the individual's participation in each 98.34 month of an education or training program after the 12th month 98.35 of the program in the participant's employment plan. Assistance 98.36 obtained by the participant through the federal Pell grant 99.1 program or other federal or state programs of higher education 99.2 assistance must be excluded from the amount to be repaid by the 99.3 participant. The participant and the county agency must develop 99.4 a mutually acceptable repayment plan. The repayment plan must 99.5 not assess any interest charges on the cost of the funds to be 99.6 repaid. The loan is considered to be in repayment status when: 99.7 (1) the participant completes the program and obtains 99.8 employment that pays annual wages that are at least equal to 150 99.9 percent of the federal poverty level; or 99.10 (2) the participant leaves the program before completion of 99.11 the program and obtains employment that pays annual wages that 99.12 are at least equal to 150 percent of the federal poverty level. 99.13 Subd. 5. [JOB SEARCH AFTER COMPLETION OF POST-SECONDARY 99.14 EDUCATION OR TRAINING.] Regardless of the length of the program, 99.15 if a participant's employment plan includes a post-secondary 99.16 education or training program, the plan must include the 99.17 anticipated completion date of the program. At the time the 99.18 education or training is completed, the participant must 99.19 participate in job search. If after three months of job search 99.20 the participant does not find a job that is consistent with the 99.21 participant's employment goals, the participant must accept any 99.22 offer of suitable employment. 99.23 Section 42 is effective January 1, 1998, except the 99.24 transitional provision in section 72 applies. 99.25 Sec. 43. [256J.54] [MINOR PARENTS; EMPLOYMENT PLAN.] 99.26 Subdivision 1. [ASSESSMENT OF EDUCATIONAL PROGRESS AND 99.27 NEEDS.] The county agency must document the educational level of 99.28 each MFIP-S caregiver who is under the age of 20 and determine 99.29 if the caregiver has obtained a high school diploma or its 99.30 equivalent. If the caregiver has not obtained a high school 99.31 diploma or its equivalent, and is not exempt from the 99.32 requirement to attend school under subdivision 5, the county 99.33 agency must complete an individual assessment for the 99.34 caregiver. The assessment must be performed as soon as possible 99.35 but within 30 days of determining MFIP-S eligibility for the 99.36 caregiver. The assessment must provide an initial examination 100.1 of the caregiver's educational progress and needs, literacy 100.2 level, child care and supportive service needs, family 100.3 circumstances, skills, and work experience. In the case of a 100.4 caregiver under the age of 18, the assessment must also consider 100.5 the results of either the caregiver's or the caregiver's minor 100.6 child's child and teen checkup under Minnesota Rules, parts 100.7 9505.0275 and 9505.1693 to 9505.1748, if available, and the 100.8 effect of a child's development and educational needs on the 100.9 caregiver's ability to participate in the program. The county 100.10 agency must advise the caregiver that the caregiver's first goal 100.11 must be to complete an appropriate educational option if one is 100.12 identified for the caregiver through the assessment and, in 100.13 consultation with educational agencies, must review the various 100.14 school completion options with the caregiver and assist in 100.15 selecting the most appropriate option. 100.16 Subd. 2. [RESPONSIBILITY FOR ASSESSMENT AND EMPLOYMENT 100.17 PLAN.] For caregivers who are under age 18, the assessment under 100.18 subdivision 1 and the employment plan under subdivision 3 must 100.19 be completed by the social services agency under section 100.20 257.33. For caregivers who are age 18 or 19, the assessment 100.21 under subdivision 1 and the employment plan under subdivision 3 100.22 must be completed by the job counselor. The social services 100.23 agency or the job counselor shall consult with representatives 100.24 of educational agencies that are required to assist in 100.25 developing educational plans under section 126.235. 100.26 Subd. 3. [EDUCATIONAL OPTION DEVELOPED.] If the job 100.27 counselor or county social services agency identifies an 100.28 appropriate educational option, it must develop an employment 100.29 plan which reflects the identified option. The plan must 100.30 specify that participation in an educational activity is 100.31 required, what school or educational program is most 100.32 appropriate, the services that will be provided, the activities 100.33 the caregiver will take part in, including child care and 100.34 supportive services, the consequences to the caregiver for 100.35 failing to participate or comply with the specified 100.36 requirements, and the right to appeal any adverse action. The 101.1 employment plan must, to the extent possible, reflect the 101.2 preferences of the caregiver. 101.3 Subd. 4. [NO APPROPRIATE EDUCATIONAL OPTION.] If the job 101.4 counselor determines that there is no appropriate educational 101.5 option for a caregiver who is age 18 or 19, the job counselor 101.6 must develop an employment plan, as defined in section 256J.49, 101.7 subdivision 5, for the caregiver. If the county social services 101.8 agency determines that school attendance is not appropriate for 101.9 a caregiver under age 18, the county agency shall refer the 101.10 caregiver to social services for services as provided in section 101.11 257.33. 101.12 Subd. 5. [SCHOOL ATTENDANCE REQUIRED.] (a) Notwithstanding 101.13 the provisions of section 256J.56, minor parents, or 18- or 101.14 19-year-old parents without a high school diploma or its 101.15 equivalent must attend school unless: 101.16 (1) transportation services needed to enable the caregiver 101.17 to attend school are not available; 101.18 (2) licensed or legal nonlicensed child care services 101.19 needed to enable the caregiver to attend school are not 101.20 available; 101.21 (3) the caregiver is ill or incapacitated seriously enough 101.22 to prevent attendance at school; or 101.23 (4) the caregiver is needed in the home because of the 101.24 illness or incapacity of another member of the household. This 101.25 includes a caregiver of a child who is younger than six weeks of 101.26 age. 101.27 (b) The caregiver must be enrolled in a secondary school 101.28 and meeting the school's attendance requirements. An enrolled 101.29 caregiver is considered to be meeting the attendance 101.30 requirements when the school is not in regular session, 101.31 including during holiday and summer breaks. 101.32 Section 43 is effective January 1, 1998, except the 101.33 transitional provision in section 72 applies. 101.34 Sec. 44. [256J.55] [PARTICIPANT REQUIREMENTS, RIGHTS, AND 101.35 EXPECTATIONS.] 101.36 Subdivision 1. [COMPLIANCE WITH EMPLOYMENT PLAN; SUITABLE 102.1 EMPLOYMENT.] (a) Each MFIP-S participant must comply with the 102.2 terms of the participant's job search support plan or employment 102.3 plan. When the participant has completed the steps listed in 102.4 the employment plan, the participant must not refuse any offer 102.5 of suitable employment. The participant may choose to accept an 102.6 offer of suitable employment before the participant has 102.7 completed the steps of the employment plan. 102.8 (b) For a participant under the age of 20 who is without a 102.9 high school diploma or general educational development diploma, 102.10 the requirement to comply with the terms of the employment plan 102.11 means the participant must meet the requirements of section 102.12 256J.54. 102.13 (c) Failure to develop or comply with a job search support 102.14 plan or employment plan, or quitting suitable employment without 102.15 good cause, shall result in the imposition of a sanction as 102.16 specified in sections 256J.57 and 256J.46. 102.17 (d) Notwithstanding paragraph (a), a participant who has 102.18 completed a post-secondary education or training program may 102.19 take up to three months to find a job that is consistent with 102.20 the participant's employment goal before the participant is 102.21 required to accept any offer of suitable employment. 102.22 Subd. 2. [DUTY TO REPORT.] The participant must inform the 102.23 job counselor within three working days regarding any changes 102.24 related to the participant's employment status. 102.25 Subd. 3. [MOVE TO A DIFFERENT COUNTY.] MFIP-S applicants 102.26 or recipients who move to a different county in Minnesota and 102.27 are required to participate in employment and training services 102.28 are subject to the requirements of the destination county. An 102.29 employment plan that was developed in the county of origin may 102.30 be continued in the destination county if both the destination 102.31 county and the participant agree to do so. 102.32 Subd. 4. [CHOICE OF PROVIDER.] A participant must be able 102.33 to choose from at least two employment and training service 102.34 providers, unless the county has demonstrated to the 102.35 commissioner that the provision of multiple employment and 102.36 training service providers would result in financial hardship 103.1 for the county, or the county is utilizing a workforce center as 103.2 specified in section 256J.50, subdivision 7. 103.3 Subd. 5. [OPTION TO UTILIZE EXISTING PLAN.] If a 103.4 participant is already complying with a job search support or 103.5 employment plan that was developed for a different program, the 103.6 participant may utilize that plan and that program's services, 103.7 subject to the requirements of subdivision 3, to be in 103.8 compliance with sections 256J.52 to 256J.57 so long as the plan 103.9 meets, or is modified to meet, the requirements of those 103.10 sections. 103.11 Section 44 is effective January 1, 1998, except the 103.12 transitional provision in section 72 applies. 103.13 Sec. 45. [256J.56] [EMPLOYMENT AND TRAINING SERVICES 103.14 COMPONENT; EXEMPTIONS.] 103.15 An MFIP-S caregiver is exempt from the requirements of 103.16 sections 256J.52 to 256J.55 if the caregiver belongs to any of 103.17 the following groups: 103.18 (1) individuals who are age 60 or older; 103.19 (2) individuals who are suffering from a professionally 103.20 certified permanent or temporary illness, injury, or incapacity 103.21 which is expected to continue for more than 30 days and which 103.22 prevents the person from obtaining or retaining employment. 103.23 Persons in this category with a temporary illness, injury, or 103.24 incapacity must be reevaluated every 30 days, unless the 103.25 certification specifies a different length of time before 103.26 reevaluation; 103.27 (3) caregivers whose presence in the home is required 103.28 because of the professionally certified illness or incapacity of 103.29 another member in the household; 103.30 (4) women who are pregnant, if the pregnancy has resulted 103.31 in a professionally certified incapacity that prevents the woman 103.32 from obtaining or retaining employment; 103.33 (5) caregivers of a child under the age of 12 weeks who 103.34 personally provide full-time care for the child. In two-parent 103.35 households, only one parent or other relative may qualify for 103.36 this exemption; 104.1 (6) individuals employed at least 40 hours per week or at 104.2 least 30 hours per week and engaged in job search for at least 104.3 an additional ten hours per week; 104.4 (7) individuals experiencing a personal or family crisis 104.5 that is professionally certified to make them incapable of 104.6 participating in the program, as determined by the county 104.7 agency. Persons in this category must be reevaluated every 60 104.8 days; or 104.9 (8) second parents in two-parent families, provided the 104.10 second parent is employed for 20 or more hours per week. 104.11 A caregiver who is exempt under clause (5) must enroll in 104.12 and attend an early childhood and family education class, a 104.13 parenting class, or some similar activity during the period of 104.14 time the caregiver is exempt under this section. 104.15 Section 45 is effective January 1, 1998, except the 104.16 transitional provision in section 72 applies. 104.17 Sec. 46. [256J.57] [GOOD CAUSE; FAILURE TO COMPLY; NOTICE; 104.18 CONCILIATION CONFERENCE.] 104.19 Subdivision 1. [GOOD CAUSE FOR FAILURE TO COMPLY.] (a) The 104.20 county agency shall not impose a sanction under section 256J.46 104.21 if the county agency or the job counselor determines that the 104.22 participant has good cause for failing to comply with the 104.23 requirements of sections 256J.52 to 256J.55. Good cause exists 104.24 when: 104.25 (1) needed child care is not available; 104.26 (2) the job does not meet the definition of suitable 104.27 employment under section 256J.49; 104.28 (3) the participant is ill or injured; 104.29 (4) a family member is ill or disabled and needs care by 104.30 the participant that prevents the participant from complying 104.31 with the employment plan; 104.32 (5) the participant is unable to secure necessary 104.33 transportation; 104.34 (6) the participant is in an emergency situation that 104.35 prevents compliance with the employment plan; 104.36 (7) the schedule of compliance with the employment plan 105.1 conflicts with judicial proceedings; 105.2 (8) the participant is already participating in acceptable 105.3 work activities; 105.4 (9) the employment plan requires an educational program for 105.5 a caregiver under age 20, but the educational program is not 105.6 available in the school district; 105.7 (10) activities identified in the employment plan are not 105.8 available; 105.9 (11) the participant is willing to accept suitable 105.10 employment, but suitable employment is not available; and 105.11 (12) the participant documents other verifiable impediments 105.12 to compliance with the employment plan that are beyond the 105.13 participant's control. 105.14 (b) The job search support plan or employment plan of a 105.15 participant who has been granted a good cause exception under 105.16 this section must be reviewed by the job counselor or county 105.17 agency, and must be revised as appropriate to improve the 105.18 participant's ability to comply with the plan requirements, so 105.19 that the participant will be less likely to make another good 105.20 cause claim under this section. 105.21 Subd. 2. [NOTICE OF INTENT TO SANCTION.] (a) When a 105.22 participant fails without good cause to comply with the 105.23 requirements of sections 256J.52 to 256J.55, the job counselor 105.24 or the county agency must provide a notice of intent to sanction 105.25 to the participant specifying the program requirements that were 105.26 not complied with, informing the participant that the county 105.27 agency will impose the sanctions specified in section 256J.46, 105.28 and informing the participant of the opportunity to request a 105.29 conciliation conference as specified in paragraph (b). The 105.30 notice must also state that the participant's continuing 105.31 noncompliance with the specified requirements for more than one 105.32 month will result in additional sanctions under section 256J.46, 105.33 without the need for additional notices or conciliation 105.34 conferences under this subdivision. If the job counselor 105.35 provides the required notice, the job counselor must 105.36 simultaneously notify the county agency that the participant has 106.1 failed to comply and request that the county agency impose the 106.2 sanctions in section 256J.46. The county must then send a 106.3 notice of adverse action to the participant informing the 106.4 participant of the sanction that will be imposed, the reasons 106.5 for the sanction, the effective date of the sanction, and the 106.6 participant's right to have a fair hearing under section 256J.40. 106.7 (b) The participant may request a conciliation conference 106.8 by sending a written request, by making a telephone request, or 106.9 by making an in-person request. The request must be received 106.10 within ten calendar days of the date the county agency mailed 106.11 the ten-day notice of intent to sanction. If a timely request 106.12 for a conciliation is received, the county agency's service 106.13 provider must conduct the conference within five days of the 106.14 request. The job counselor's supervisor, or a designee of the 106.15 supervisor, must review the outcome of the conciliation 106.16 conference. If the conciliation conference resolves the 106.17 noncompliance, the job counselor must promptly inform the county 106.18 agency and request withdrawal of the sanction notice. 106.19 (c) Upon receiving a sanction notice, the participant may 106.20 request a fair hearing under section 256J.40, without exercising 106.21 the option of a conciliation conference. In such cases, the 106.22 county agency shall not require the participant to engage in a 106.23 conciliation conference prior to the fair hearing. 106.24 (d) If the participant requests a fair hearing or a 106.25 conciliation conference, sanctions will not be imposed until 106.26 there is a determination of noncompliance. Sanctions must be 106.27 imposed as provided in section 256J.46. 106.28 Section 46 is effective January 1, 1998, except the 106.29 transitional provision in section 72 applies. 106.30 Sec. 47. [256J.60] [COUNTY EMPLOYMENT AND TRAINING 106.31 PERFORMANCE STANDARDS.] 106.32 Subdivision 1. [TWO-STAGE SET OF PERFORMANCE STANDARDS.] 106.33 The department shall adopt a two-stage set of employment and 106.34 training services performance standards. The first-stage 106.35 standards are mandatory for all counties and are intended to 106.36 enable the state to achieve the federal participation 107.1 standards. The second-stage standards are intended to reward 107.2 counties for performance that exceeds the mandatory standards. 107.3 Only those counties that meet the first-stage standards are 107.4 eligible for the second-stage standards. 107.5 Subd. 2. [FIRST-STAGE PERFORMANCE STANDARDS.] Each county 107.6 must independently meet the federal participation standards. 107.7 Failure to meet the federal participation standards will result 107.8 in a sanction as specified in subdivision 3. Only counties that 107.9 meet the federal participation standards are eligible for 107.10 incentives under subdivision 5. 107.11 Subd. 3. [APPORTIONMENT OF FEDERAL PARTICIPATION STANDARDS 107.12 SANCTIONS.] (a) If the state as a whole fails to achieve the 107.13 federal participation standards specified in section 256J.49, 107.14 subdivision 6, and is sanctioned by the federal government, the 107.15 fiscal penalty will be apportioned to the state and the counties 107.16 using the following method: 107.17 (1) the full sanction amount shall be multiplied by 50 107.18 percent. This is the state's share of the sanction; 107.19 (2) the nonstate share of the sanction shall be distributed 107.20 across all counties in direct proportion to their employment and 107.21 training services allocation for the year for which the sanction 107.22 was imposed. For counties that did not meet the federal 107.23 participation standards, this amount is the fiscal penalty that 107.24 shall be imposed on those counties; 107.25 (3) the amount computed in clause (2) shall be divided by 107.26 two. This is the fiscal penalty that shall be imposed on 107.27 counties that met the federal participation standards for the 107.28 year for which the sanction was imposed; 107.29 (4) under any circumstance, the sanction applied to any 107.30 county shall not exceed one-third of its employment and training 107.31 services allocation for the year for which the sanction was 107.32 imposed; and 107.33 (5) after applying clauses (1) to (4), any remaining 107.34 unattributed portion of the federal sanction shall be assumed by 107.35 the state. 107.36 (b) A county that fails to achieve the participation 108.1 standards specified in section 256J.49, subdivision 6, will be 108.2 subject to a review of its employment and training services 108.3 program under section 268.86, subdivision 2. The commissioners 108.4 of human services and economic security must work with the 108.5 county agency to assess and revise the county's programs, in 108.6 order to improve the county's ability to achieve the 108.7 participation standards in the following year. 108.8 (c) If, in a given year, the state as a whole has met the 108.9 participation standards specified in section 256J.49, 108.10 subdivision 6, a county for which the given year is the second 108.11 consecutive year in which the performance standards were not met 108.12 shall, in addition to a department review of the county program, 108.13 be subject to a fiscal sanction of an amount equal to 20 percent 108.14 of the total employment and training services allocation for the 108.15 second year in which the standards were not met. 108.16 (d) The sanction, as specified in paragraph (a) or (c), 108.17 shall be adjusted to account for variations in county 108.18 demographic and economic conditions. The commissioner shall 108.19 develop a method for this adjustment by January 1, 1998. 108.20 (e) A county may not pay its share of any federal or 108.21 state-imposed fiscal sanction from the county's employment and 108.22 training services allocation. Each county must maintain 108.23 employment and training services funding at the full allocation 108.24 level, regardless of any penalties that are imposed. 108.25 Subd. 4. [SECOND-STAGE PERFORMANCE STANDARDS.] (a) 108.26 Beginning July 1, 1998, and each quarter thereafter, the 108.27 commissioner of human services shall inform all counties of each 108.28 county's performance on the following measures: 108.29 (i) MFIP-S caseload reduction; 108.30 (ii) average placement wage rate; 108.31 (iii) rate of job retention after three months; 108.32 (iv) placement rate into unsubsidized jobs; and 108.33 (v) federal participation requirements as specified in 108.34 section 256J.49, subdivision 6. 108.35 (b) By July 1, 1999, the commissioner shall establish 108.36 performance standards for each of the measures in this 109.1 subdivision, and recommend to the legislature any changes to the 109.2 measures specified in this subdivision that would ensure 109.3 performance standards are developed to achieve the purposes of 109.4 this section. 109.5 Subd. 5. [INCENTIVE FUND.] (a) Beginning July 1, 2000, and 109.6 in each subsequent state fiscal year, the commissioner shall 109.7 withhold from allocation to counties five percent of the total 109.8 annual MFIP-S employment and training services appropriation in 109.9 an incentive fund to be awarded to counties that have met the 109.10 standards specified under subdivision 4 during the previous 109.11 fiscal year. 109.12 (b) Twenty percent of the total incentive fund shall be 109.13 reserved for each of the five measures specified in subdivision 109.14 4. On July 1, 2000, all counties that have met a given standard 109.15 during the previous state fiscal year shall share the incentive 109.16 fund monies for that standard. Each county's share of a 109.17 standard's incentive money shall be the same percent as its 109.18 MFIP-S employment and training services allocation for the 109.19 previous state fiscal year is of the sum of the allocations to 109.20 the counties that qualify to share in the incentive for a given 109.21 measure. 109.22 (c) At the discretion of the commissioner, during the first 109.23 two years of the incentive fund, incentive fund money may be 109.24 used as a contingency fund to cover unanticipated county costs 109.25 of implementing the employment and training services component 109.26 of MFIP-S. 109.27 (d) If no county achieves the second-stage standards, the 109.28 entire incentive fund, minus any amount expended under paragraph 109.29 (c), shall be allocated to all counties in direct proportion to 109.30 their original employment and training services allocation. 109.31 Section 47 is effective January 1, 1998, except the 109.32 transitional provision in section 72 applies. 109.33 Sec. 48. [256J.61] [REPORTING REQUIREMENTS.] 109.34 The commissioner of human services, in cooperation with the 109.35 commissioner of economic security, shall develop reporting 109.36 requirements for county agencies and employment and training 110.1 service providers according to section 256.01, subdivision 2, 110.2 paragraph (17). Reporting requirements must, to the extent 110.3 possible, use existing client tracking systems and must be 110.4 within the limits of funds available. The requirements must 110.5 include summary information necessary for state agencies and the 110.6 legislature to evaluate the effectiveness of the services. 110.7 Section 48 is effective January 1, 1998, except the 110.8 transitional provision in section 72 applies. 110.9 Sec. 49. [256J.62] [ALLOCATION OF COUNTY EMPLOYMENT AND 110.10 TRAINING SERVICES BLOCK GRANT.] 110.11 Subdivision 1. [ALLOCATION.] Money appropriated for MFIP-S 110.12 employment and training services must be allocated to counties 110.13 as specified in this section. 110.14 Subd. 2. [GUARANTEED FLOOR.] First, money shall be 110.15 allocated to counties in an amount equal to the county's 110.16 guaranteed floor. The county's guaranteed floor shall be 110.17 calculated as follows: 110.18 (1) for fiscal 1998, the guaranteed floor shall be 110.19 calculated by multiplying the county's STRIDE allocation 110.20 received for state fiscal year 1997 by 90 percent; 110.21 (2) for each subsequent fiscal year, the guaranteed floor 110.22 shall be calculated by multiplying the county's MFIP-S 110.23 employment and training services allocation received the 110.24 previous state fiscal year by 90 percent; and 110.25 (3) if the amount of funds available for allocation is less 110.26 than the amount allocated to all counties for the previous 110.27 fiscal year, each county's previous year allocation shall be 110.28 reduced in proportion to the reduction in statewide funding for 110.29 the purpose of establishing the guaranteed floor. 110.30 Subd. 3. [ALLOCATION OF BALANCE OF FUNDS.] If there remain 110.31 funds to allocate after establishing each county's guaranteed 110.32 floor under the provisions in subdivision 2, the balance of 110.33 funds shall be allocated as follows: 110.34 (1) for state fiscal year 1998, the remaining funds shall 110.35 be allocated based on the county's average number of AFDC and 110.36 family general assistance cases as compared to the statewide 111.1 total number of cases. The average number of cases shall be 111.2 based on counts of AFDC and family general assistance cases as 111.3 of March 31, June 30, September 30, and December 31 of calendar 111.4 year 1996; 111.5 (2) for state fiscal year 1999, the remaining funds shall 111.6 be allocated based on the county's average number of AFDC, 111.7 family general assistance, and MFIP-S cases as compared to the 111.8 statewide total number of cases. The average number of cases 111.9 shall be based on counts of AFDC, family general assistance, 111.10 MFIP-R, MFIP, and MFIP-S cases as of March 31, June 30, 111.11 September 30, and December 31 of calendar year 1997; and 111.12 (3) for all subsequent state fiscal years, the remaining 111.13 funds shall be allocated based on the county's average number of 111.14 MFIP-S cases as compared to the statewide total number of 111.15 cases. The average number of cases must be based on counts of 111.16 MFIP-S cases as of March 31, June 30, September 30, and December 111.17 31 of the previous calendar year. 111.18 Subd. 4. [ADMINISTRATIVE ACTIVITIES LIMIT.] No more than 111.19 15 percent of the money allocated under this section may be used 111.20 for administrative activities. 111.21 Subd. 4a. [STRIDE ALLOCATION.] Funds allocated for STRIDE 111.22 services for state fiscal year 1998 are allocated to county 111.23 agencies based on the provisions of statute in effect on June 111.24 30, 1997. At the time that the AFDC program is replaced by the 111.25 Temporary Assistance for Needy Families program under title I of 111.26 Public Law Number 104-193 of the Personal Responsibility and 111.27 Work Opportunity Reconciliation Act of 1996, any unexpended 111.28 balance of a county's STRIDE allocation for that fiscal year 111.29 remains available to the county for operation of MFIP-S 111.30 employment and training services and for the operation of the 111.31 STRIDE program for the MFIP and MFIP-R field trial counties for 111.32 the balance of the fiscal year. These STRIDE funds shall be 111.33 included in the calculation of the next year's MFIP-S employment 111.34 and training allocation under the provisions of subdivision 2. 111.35 Subd. 5. [BILINGUAL EMPLOYMENT AND TRAINING SERVICES TO 111.36 REFUGEES.] Funds appropriated to cover the costs of bilingual 112.1 employment and training services to refugees shall be allocated 112.2 to county agencies as follows: 112.3 (1) for state fiscal year 1998, the allocation shall be 112.4 based on the county's proportion of the total statewide number 112.5 of AFDC refugee cases in the previous fiscal year. Counties 112.6 with less than one percent of the statewide number of AFDC, 112.7 MFIP-R, or MFIP refugee cases shall not receive an allocation of 112.8 bilingual employment and training services funds; and 112.9 (2) for each subsequent fiscal year, the allocation shall 112.10 be based on the county's proportion of the total statewide 112.11 number of MFIP-S refugee cases in the previous fiscal year. 112.12 Counties with less than one percent of the statewide number of 112.13 MFIP-S refugee cases shall not receive an allocation of 112.14 bilingual employment and training services funds. 112.15 Subd. 6. [WORK LITERACY LANGUAGE PROGRAMS.] Funds 112.16 appropriated to cover the costs of work literacy language 112.17 programs to non-English speaking participants shall be allocated 112.18 to county agencies as follows: 112.19 (1) for state fiscal year 1998, the allocation shall be 112.20 based on the county's proportion of the total statewide number 112.21 of AFDC or MFIP cases in the previous fiscal year where the lack 112.22 of English is a barrier to employment. Counties with less than 112.23 two percent of the statewide number of AFDC or MFIP cases where 112.24 the lack of English is a barrier to employment shall not receive 112.25 an allocation of the work literacy language program funds; and 112.26 (2) for each subsequent fiscal year, the allocation shall 112.27 be based on the county's proportion of the total statewide 112.28 number of MFIP-S cases in the previous fiscal year where the 112.29 lack of English is a barrier to employment. Counties with less 112.30 than two percent of the statewide number of MFIP-S cases where 112.31 the lack of English is a barrier to employment shall not receive 112.32 an allocation of the work literacy language program funds. 112.33 Subd. 7. [REALLOCATION.] The commissioner of human 112.34 services shall review county agency expenditures of MFIP-S 112.35 employment and training services funds at the end of the third 112.36 quarter of the first year of the biennium and each quarter after 113.1 that and may reallocate unencumbered or unexpended money 113.2 appropriated under this section to those county agencies that 113.3 can demonstrate a need for additional money. 113.4 Subd. 8. [CONTINUATION OF CERTAIN SERVICES.] At county 113.5 option and with the agreement of the participant, the provider 113.6 may continue to provide case management, counseling or other 113.7 support services to a participant following the participant's 113.8 achievement of the employment goal, regardless of the 113.9 participant's eligibility for MFIP-S. 113.10 A county may expend funds for a specific employment and 113.11 training service for the duration of that service to a 113.12 participant if the funds are obligated or expended prior to the 113.13 participant losing MFIP-S eligibility. 113.14 Section 49 is effective January 1, 1998, except the 113.15 transitional provision in section 72 applies. 113.16 Sec. 50. [256J.645] [INDIAN TRIBE MFIP-S EMPLOYMENT AND 113.17 TRAINING.] 113.18 Subdivision 1. [AUTHORIZATION TO ENTER INTO 113.19 AGREEMENTS.] The commissioner may enter into agreements with 113.20 federally recognized Indian tribes with a reservation in the 113.21 state to provide MFIP-S employment and training services to 113.22 members of the Indian tribe and to other caregivers who are a 113.23 part of the tribal member's MFIP-S assistance unit. For 113.24 purposes of this section, "Indian tribe" means a tribe, band, 113.25 nation, or other federally recognized group or community of 113.26 Indians. The commissioner may also enter into an agreement with 113.27 a consortium of Indian tribes providing the governing body of 113.28 each Indian tribe in the consortium complies with the provisions 113.29 of this section. 113.30 Subd. 2. [TRIBAL REQUIREMENTS.] The Indian tribe must: 113.31 (1) agree to fulfill the responsibilities provided under 113.32 the employment and training component of MFIP-S regarding 113.33 operation of MFIP-S employment and training services, as 113.34 designated by the commissioner; 113.35 (2) operate its employment and training services program 113.36 within a geographic service area not to exceed the counties 114.1 within which a border of the reservation falls; 114.2 (3) operate its program in conformity with section 13.46 114.3 and any applicable federal regulations in the use of data about 114.4 MFIP-S recipients; 114.5 (4) coordinate operation of its program with the county 114.6 agency, Job Training Partnership Act programs, and other support 114.7 services or employment-related programs in the counties in which 114.8 the tribal unit's program operates; 114.9 (5) provide financial and program participant activity 114.10 recordkeeping and reporting in the manner and using the forms 114.11 and procedures specified by the commissioner and permit 114.12 inspection of its program and records by representatives of the 114.13 state; and 114.14 (6) have the Indian tribe's employment and training service 114.15 provider certified by the commissioner of economic security, or 114.16 approved by the county. 114.17 Subd. 3. [FUNDING.] (a) If the commissioner and an Indian 114.18 tribe are parties to an agreement under this subdivision, the 114.19 agreement may annually provide to the Indian tribe the funding 114.20 amount in clause (1) or (2): 114.21 (1) if the Indian tribe operated a tribal STRIDE program 114.22 during state fiscal year 1997, the amount to be provided is the 114.23 amount the Indian tribe received from the state for operation of 114.24 its tribal STRIDE program in state fiscal year 1997, except that 114.25 the amount provided for a fiscal year may increase or decrease 114.26 in the same proportion that the total amount of state funds 114.27 available for MFIP-S employment and training services increased 114.28 or decreased that fiscal year. No additional funds shall be 114.29 provided to the tribe under this clause for the first year of 114.30 expansion of MFIP beyond the pilot counties; or 114.31 (2) if the Indian tribe did not operate a tribal STRIDE 114.32 program during state fiscal year 1997, the commissioner may 114.33 provide to the Indian tribe for the first year of operations the 114.34 amount determined by multiplying the state allocation for MFIP-S 114.35 employment and training services to each county agency in the 114.36 Indian tribe's service delivery area by the percentage of MFIP-S 115.1 recipients in that county who were members of the Indian tribe 115.2 during the previous state fiscal year. The resulting amount 115.3 shall also be the amount that the commissioner may provide to 115.4 the Indian tribe annually thereafter through an agreement under 115.5 this subdivision, except that the amount provided for a fiscal 115.6 year may increase or decrease in the same proportion that the 115.7 total amount of state funds available for MFIP-S employment and 115.8 training services increased or decreased that fiscal year. No 115.9 additional funds shall be provided to the tribe under this 115.10 clause for the first year of expansion of MFIP beyond the pilot 115.11 counties. 115.12 (b) Indian tribal members receiving MFIP-S benefits and 115.13 residing in the service area of an Indian tribe operating 115.14 employment and training services under an agreement with the 115.15 commissioner must be referred by county agencies in the service 115.16 area to the Indian tribe for employment and training services. 115.17 Section 50 is effective January 1, 1998, except the 115.18 transitional provision in section 72 applies. 115.19 Sec. 51. [256J.65] [THE SELF-EMPLOYMENT INVESTMENT 115.20 DEMONSTRATION PROGRAM (SEID).] 115.21 (a) A caregiver who enrolls and participates in the SEID 115.22 program as specified in section 268.95, may, at county option, 115.23 be exempted from other employment and training participation 115.24 requirements for a period of up to 24 months, except for the 115.25 school attendance requirements as specified in section 256J.54. 115.26 (b) The following income and resource considerations apply 115.27 to SEID participants: 115.28 (1) an unencumbered cash reserve fund, composed of proceeds 115.29 from a SEID business, is not counted against the grant if those 115.30 funds are reinvested in the business and the value of the 115.31 business does not exceed $3,000. The value of the business is 115.32 determined by deducting outstanding encumbrances from retained 115.33 business profit; and 115.34 (2) the purchase of capital equipment and durable goods of 115.35 an amount up to $3,000 during a 24-month project period is 115.36 allowed as a business expense. 116.1 (c) SEID participants are also eligible for employment and 116.2 training services, including child care assistance and 116.3 transportation. 116.4 Section 51 is effective January 1, 1998, except the 116.5 transitional provision in section 72 applies. 116.6 Sec. 52. [256J.66] [ON-THE-JOB TRAINING.] 116.7 Subdivision 1. [ESTABLISHING THE ON-THE-JOB TRAINING 116.8 PROGRAM.] (a) County agencies may develop on-the-job training 116.9 programs for MFIP-S caregivers who are participating in 116.10 employment and training services. A county agency that chooses 116.11 to provide on-the-job training may make payments to employers 116.12 for on-the-job training costs that, during the period of the 116.13 training, must not exceed 50 percent of the wages paid by the 116.14 employer to the participant. The payments are deemed to be in 116.15 compensation for the extraordinary costs associated with 116.16 training participants under this section and in compensation for 116.17 the costs associated with the lower productivity of the 116.18 participants during training. 116.19 (b) Provision of an on-the-job training program under the 116.20 Job Training Partnership Act, in and of itself, does not qualify 116.21 as an on-the-job training program under this section. 116.22 (c) Participants in on-the-job training shall be 116.23 compensated by the employer at the same rates, including 116.24 periodic increases, as similarly situated employees or trainees 116.25 and in accordance with applicable law, but in no event less than 116.26 the federal or applicable state minimum wage, whichever is 116.27 higher. 116.28 Subd. 2. [TRAINING AND PLACEMENT.] (a) County agencies 116.29 shall limit the length of training based on the complexity of 116.30 the job and the caregiver's previous experience and training. 116.31 Placement in an on-the-job training position with an employer is 116.32 for the purpose of training and employment with the same 116.33 employer who has agreed to retain the person upon satisfactory 116.34 completion of training. 116.35 (b) Placement of any participant in an on-the-job training 116.36 position must be compatible with the participant's assessment 117.1 and employment plan under section 256J.52. 117.2 Section 52 is effective January 1, 1998, except the 117.3 transitional provision in section 72 applies. 117.4 Sec. 53. [256J.67] [COMMUNITY WORK EXPERIENCE.] 117.5 Subdivision 1. [ESTABLISHING THE COMMUNITY WORK EXPERIENCE 117.6 PROGRAM.] To the extent of available resources, each county 117.7 agency may establish and operate a work experience component for 117.8 MFIP-S caregivers who are participating in employment and 117.9 training services. This option for county agencies supersedes 117.10 the requirement in section 402(a)(1)(B)(iv) of the Social 117.11 Security Act that caregivers who have received assistance for 117.12 two months and who are not exempt from work requirements must 117.13 participate in a work experience program. The purpose of the 117.14 work experience component is to enhance the caregiver's 117.15 employability and self-sufficiency and to provide meaningful, 117.16 productive work activities. The county shall only use this 117.17 program after exhausting all other employment opportunities. 117.18 The county agency shall not require a caregiver to participate 117.19 in the community work experience program under this section 117.20 unless the caregiver has been given an opportunity to 117.21 participate in other work activities. The county shall only use 117.22 this program after exhausting all other employment 117.23 opportunities. The county agency shall not require a caregiver 117.24 to participate in the community work experience program under 117.25 this section unless the caregiver has been given an opportunity 117.26 to participate in other work activities. 117.27 Subd. 2. [COMMISSIONER'S DUTIES.] The commissioner shall 117.28 assist counties in the design and implementation of these 117.29 components. 117.30 Subd. 3. [EMPLOYMENT OPTIONS.] (a) Work sites developed 117.31 under this section are limited to projects that serve a useful 117.32 public service such as: health, social service, environmental 117.33 protection, education, urban and rural development and 117.34 redevelopment, welfare, recreation, public facilities, public 117.35 safety, community service, services to aged or disabled 117.36 citizens, and child care. To the extent possible, the prior 118.1 training, skills, and experience of a caregiver must be 118.2 considered in making appropriate work experience assignments. 118.3 (b) Structured, supervised volunteer work with an agency or 118.4 organization, which is monitored by the county service provider, 118.5 may, with the approval of the county agency, be used as a work 118.6 experience placement. 118.7 (c) As a condition of placing a caregiver in a program 118.8 under this section, the county agency shall first provide the 118.9 caregiver the opportunity: 118.10 (1) for placement in suitable subsidized or unsubsidized 118.11 employment through participation in a job search; or 118.12 (2) for placement in suitable employment through 118.13 participation in on-the-job training, if such employment is 118.14 available. 118.15 Subd. 4. [EMPLOYMENT PLAN.] (a) The caretaker's employment 118.16 plan must include the length of time needed in the work 118.17 experience program, the need to continue job-seeking activities 118.18 while participating in work experience, and the caregiver's 118.19 employment goals. 118.20 (b) After each six months of a caregiver's participation in 118.21 a work experience job placement, and at the conclusion of each 118.22 work experience assignment under this section, the county agency 118.23 shall reassess and revise, as appropriate, the caregiver's 118.24 employment plan. 118.25 (c) A participant may claim good cause under section 118.26 256J.57 for failing to cooperate with a work experience job 118.27 placement. 118.28 (d) The county agency shall limit the maximum number of 118.29 hours any participant may work under this section to the amount 118.30 of the applicable MFIP-S transitional standard divided by the 118.31 applicable federal or state minimum wage, whichever is higher. 118.32 After a participant has been assigned to a position for nine 118.33 months, the participant may not continue in that assignment 118.34 unless the maximum number of hours a participant works is no 118.35 greater than the amount of the applicable MFIP-S transitional 118.36 standard divided by the rate of pay for individuals employed in 119.1 the same or similar occupations by the same employer at the same 119.2 site. 119.3 Section 53 is effective January 1, 1998, except the 119.4 transitional provision in section 72 applies. 119.5 Sec. 54. [256J.68] [INJURY PROTECTION FOR WORK EXPERIENCE 119.6 PARTICIPANTS.] 119.7 Subdivision 1. [APPLICABILITY.] Payment of any claims 119.8 resulting from an alleged injury or death of a person 119.9 participating in a county or a tribal community work experience 119.10 program that is operated by the county agency or the tribe and 119.11 approved by the commissioner must be determined in accordance 119.12 with this section. This determination method applies to work 119.13 experience programs authorized by the commissioner for persons 119.14 applying for or receiving cash assistance and food stamps, and 119.15 to the Minnesota parent's fair share program and the community 119.16 service program under section 518.551, subdivision 5a, in a 119.17 county with an approved community investment program for 119.18 obligors. 119.19 Subd. 2. [INVESTIGATION OF THE CLAIM.] Claims that are 119.20 subject to this section must be investigated by the county 119.21 agency or the tribal program responsible for supervising the 119.22 work to determine whether the claimed injury occurred, whether 119.23 the claimed medical expenses are reasonable, and whether the 119.24 loss is covered by the claimant's insurance. If insurance 119.25 coverage is established, the county agency or tribal program 119.26 shall submit the claim to the appropriate insurance entity for 119.27 payment. The investigating county agency or tribal program 119.28 shall submit all valid claims, in the amount net of any 119.29 insurance payments, to the department of human services. 119.30 Subd. 3. [SUBMISSION OF CLAIM.] The commissioner shall 119.31 submit all claims for permanent partial disability compensation 119.32 to the commissioner of labor and industry. The commissioner of 119.33 labor and industry shall review all submitted claims and 119.34 recommend to the department of human services an amount of 119.35 compensation comparable to that which would be provided under 119.36 the permanent partial disability compensation schedule of 120.1 section 176.101, subdivision 2a. 120.2 Subd. 4. [CLAIMS LESS THAN $1,000.] The commissioner shall 120.3 approve a claim of $1,000 or less for payment if appropriated 120.4 funds are available, if the county agency or tribal program 120.5 responsible for supervising the work has made the determinations 120.6 required by this section, and if the work program was operated 120.7 in compliance with the safety provisions of this section. The 120.8 commissioner shall pay the portion of an approved claim of 120.9 $1,000 or less that is not covered by the claimant's insurance 120.10 within three months of the date of submission. On or before 120.11 February 1 of each year, the commissioner shall submit to the 120.12 appropriate committees of the senate and the house of 120.13 representatives a list of claims of $1,000 or less paid during 120.14 the preceding calendar year and shall be reimbursed by 120.15 legislative appropriation for any claims that exceed the 120.16 original appropriation provided to the commissioner to operate 120.17 this program. Any unspent money from this appropriation shall 120.18 carry over to the second year of the biennium, and any unspent 120.19 money remaining at the end of the second year shall be returned 120.20 to the state general fund. 120.21 Subd. 5. [CLAIMS MORE THAN $1,000.] On or before February 120.22 1 of each year, the commissioner shall submit to the appropriate 120.23 committees of the senate and the house of representatives a list 120.24 of claims in excess of $1,000 and a list of claims of $1,000 or 120.25 less that were submitted to but not paid by the commissioner, 120.26 together with any recommendations of appropriate compensation. 120.27 These claims shall be heard and determined by the appropriate 120.28 committees of the senate and house of representatives and, if 120.29 approved, must be paid under the legislative claims procedure. 120.30 Subd. 6. [COMPENSATION FOR CERTAIN COSTS.] Compensation 120.31 paid under this section is limited to reimbursement for 120.32 reasonable medical expenses and permanent partial disability 120.33 compensation for disability in like amounts as allowed in 120.34 section 176.101, subdivision 2a. Compensation for injuries 120.35 resulting in death shall include reasonable medical expenses and 120.36 burial expenses in addition to payment to the participant's 121.1 estate in an amount up to $200,000. No compensation shall be 121.2 paid under this section for pain and suffering, lost wages, or 121.3 other benefits provided in chapter 176. Payments made under 121.4 this section shall be reduced by any proceeds received by the 121.5 claimant from any insurance policy covering the loss. For the 121.6 purposes of this section, "insurance policy" does not include 121.7 the medical assistance program authorized under chapter 256B or 121.8 the general assistance medical care program authorized under 121.9 chapter 256D. 121.10 Subd. 7. [EXCLUSIVE PROCEDURE.] The procedure established 121.11 by this section is exclusive of all other legal, equitable, and 121.12 statutory remedies against the state, its political 121.13 subdivisions, or employees of the state or its political 121.14 subdivisions. The claimant shall not be entitled to seek 121.15 damages from any state, county, tribal, or reservation insurance 121.16 policy or self-insurance program. 121.17 Subd. 8. [INVALID CLAIMS.] A claim is not valid for 121.18 purposes of this section if the county agency responsible for 121.19 supervising the work cannot verify to the commissioner: 121.20 (1) that appropriate safety training and information is 121.21 provided to all persons being supervised by the agency under 121.22 this section; and 121.23 (2) that all programs involving work by those persons 121.24 comply with federal Occupational Safety and Health 121.25 Administration and state department of labor and industry safety 121.26 standards. A claim that is not valid because of failure to 121.27 verify safety training or compliance with safety standards will 121.28 not be paid by the department of human services or through the 121.29 legislative claims process and must be heard, decided, and paid, 121.30 if appropriate, by the local government unit or tribal JOBS 121.31 program responsible for supervising the work of the claimant. 121.32 Section 54 is effective January 1, 1998, except the 121.33 transitional provision in section 72 applies. 121.34 Sec. 55. [256J.69] [GRANT DIVERSION.] 121.35 Subdivision 1. [ESTABLISHING THE GRANT DIVERSION 121.36 PROGRAM.] (a) County agencies may develop grant diversion 122.1 programs for MFIP-S participants participating in employment and 122.2 training services. A county agency that chooses to provide 122.3 grant diversion may divert to an employer part or all of the 122.4 MFIP-S cash payment for the participant's assistance unit, in 122.5 compliance with federal regulations and laws. Such payments to 122.6 an employer are to subsidize employment for MFIP-S participants 122.7 as an alternative to public assistance payments. 122.8 (b) In addition to diverting the MFIP-S grant to the 122.9 employer, employment and training funds may be used to subsidize 122.10 the grant diversion placement. 122.11 (c) Participants in grant diversion shall be compensated by 122.12 the employer at the same rates, including periodic increases, as 122.13 similarly situated employees or trainees and in accordance with 122.14 applicable law, but in no event less than the federal or 122.15 applicable state minimum wage, whichever is higher. 122.16 Subd. 2. [TRAINING AND PLACEMENT.] (a) County agencies 122.17 shall limit the length of training to nine months. Placement in 122.18 a grant diversion training position with an employer is for the 122.19 purpose of training and employment with the same employer who 122.20 has agreed to retain the person upon satisfactory completion of 122.21 training. 122.22 (b) Placement of any participant in a grant diversion 122.23 subsidized training position must be compatible with the 122.24 assessment and employment plan or employability development plan 122.25 established for the recipient under section 256J.52 or 256K.03, 122.26 subdivision 8. 122.27 Section 55 is effective January 1, 1998, except the 122.28 transitional provision in section 72 applies. 122.29 Sec. 56. [256J.72] [NONDISPLACEMENT IN WORK ACTIVITIES.] 122.30 Subdivision 1. [NONDISPLACEMENT PROTECTION.] For job 122.31 assignments under jobs programs established under chapter 256, 122.32 256D, 256J, or 256K, the county agency must provide written 122.33 notification to and obtain the written concurrence of the 122.34 appropriate exclusive bargaining representatives with respect to 122.35 job duties covered under collective bargaining agreements and 122.36 ensure that no work assignment under chapter 256, 256D, 256J, or 123.1 256K results in: 123.2 (1) termination, layoff, or reduction of the work hours of 123.3 an employee for the purpose of hiring an individual under this 123.4 section; 123.5 (2) the hiring of an individual if any other person is on 123.6 layoff, including seasonal layoff, from the same or a 123.7 substantially equivalent job; 123.8 (3) any infringement of the promotional opportunities of 123.9 any currently employed individual; 123.10 (4) the impairment of existing contract for services of 123.11 collective bargaining agreements; or 123.12 (5) a participant filling an established unfilled position 123.13 vacancy, except for a position filled using grant diversion as 123.14 provided in section 256J.69 or on-the-job training. 123.15 The written notification must be provided to the 123.16 appropriate exclusive bargaining representatives at least 14 123.17 days in advance of placing recipients in temporary public 123.18 service employment. The notice must include the number of 123.19 individuals involved, their work locations and anticipated hours 123.20 of work, a summary of the tasks to be performed, and a 123.21 description of how the individuals will be trained and 123.22 supervised. 123.23 Subd. 2. [DISPUTE RESOLUTION.] (a) If there is a dispute 123.24 between an exclusive bargaining representative and a county 123.25 provider or employer over whether job duties are within the 123.26 scope of a collective bargaining unit, the exclusive bargaining 123.27 representative, the county, the provider, or the employer may 123.28 petition the bureau of mediation services to determine if the 123.29 job duties are within the scope of a collective bargaining unit, 123.30 and the bureau shall render a binding decision. 123.31 (b) In the event of a dispute under this section, the 123.32 parties may: 123.33 (1) use a grievance and arbitration procedure of an 123.34 existing collective bargaining agreement to process a dispute 123.35 over whether a violation of the nondisplacement provisions has 123.36 occurred; or 124.1 (2) if no grievance and arbitration procedure is in place, 124.2 either party may submit the dispute to the bureau. The 124.3 commissioner of the bureau of mediation services shall establish 124.4 a procedure for a neutral, binding resolution of the dispute. 124.5 Subd. 3. [STATUS OF PARTICIPANT.] A participant may not 124.6 work in a temporary public service or community service job for 124.7 a public employer for more than 67 working days or 536 hours, 124.8 whichever is greater, as part of a work program established 124.9 under chapter 256, 256D, 256J, or 256K. A participant who 124.10 exceeds the time limits in this subdivision is a public 124.11 employee, as that term is used in chapter 179A. Upon the 124.12 written request of the exclusive bargaining representative, a 124.13 county or public service employer shall make available to the 124.14 affected exclusive bargaining representative a report of hours 124.15 worked by participants in temporary public service or community 124.16 service jobs. 124.17 Section 56 is effective January 1, 1998, except the 124.18 transitional provision in section 72 applies. 124.19 Sec. 57. [256J.74] [RELATIONSHIP TO OTHER PROGRAMS.] 124.20 Subdivision 1. [SOCIAL SERVICES.] The county agency shall 124.21 refer a participant for social services that are offered in the 124.22 county of financial responsibility according to the criteria 124.23 established by that county agency under Minnesota Rules, parts 124.24 9550.0010 to 9550.0092. A payment issued from federal funds 124.25 under title XX of the Social Security Act, state funds under the 124.26 Community Social Services Act, federal or state child welfare 124.27 funds, or county funds in a payment month must not restrict 124.28 MFIP-S eligibility or reduce the monthly assistance payment for 124.29 that participant. 124.30 Subd. 2. [CONCURRENT ELIGIBILITY, LIMITATIONS.] A county 124.31 agency must not count an applicant or participant as a member of 124.32 more than one assistance unit in a given payment month, except 124.33 as provided in clauses (1) and (2). 124.34 (1) A participant who is a member of an assistance unit in 124.35 this state is eligible to be included in a second assistance 124.36 unit in the first full month that the participant leaves the 125.1 first assistance unit and lives with a second assistance unit. 125.2 (2) An applicant whose needs are met through foster care 125.3 that is reimbursed under title IV-E of the Social Security Act 125.4 for the first part of an application month is eligible to 125.5 receive assistance for the remaining part of the month in which 125.6 the applicant returns home. Title IV-E payments and adoption 125.7 assistance payments must be considered prorated payments rather 125.8 than a duplication of MFIP-S need. 125.9 Subd. 3. [EMERGENCY ASSISTANCE, ASSISTANCE UNIT WITH A 125.10 MINOR CHILD.] An MFIP-S assistance unit with a minor child or a 125.11 pregnant woman without a minor child is eligible for emergency 125.12 assistance when the assistance unit meets the requirements in 125.13 section 256J.48, subdivision 2. 125.14 Subd. 4. [MEDICAL ASSISTANCE.] Medical assistance 125.15 eligibility for MFIP-S, participants shall be determined as 125.16 described in chapter 256B. 125.17 Section 57 is effective January 1, 1998, except the 125.18 transitional provision in section 72 applies. 125.19 Sec. 58. [256J.75] [COUNTY OF FINANCIAL RESPONSIBILITY 125.20 POLICIES.] 125.21 Subdivision 1. [COUNTY OF FINANCIAL RESPONSIBILITY.] The 125.22 county of financial responsibility is the county in which a 125.23 minor child or pregnant woman lives on the date the application 125.24 is signed, unless subdivision 4 applies. When more than one 125.25 county is financially responsible for the members of an 125.26 assistance unit, financial responsibility must be assigned to a 125.27 single county beginning the first day of the calendar month 125.28 after the assistance unit members are required to be in a single 125.29 assistance unit. Financial responsibility must be assigned to 125.30 the county that was initially responsible for the assistance 125.31 unit member with the earliest date of application. The county 125.32 in which the assistance unit is currently residing becomes 125.33 financially responsible for the entire assistance unit beginning 125.34 two full calendar months after the month in which financial 125.35 responsibility was consolidated in one county. 125.36 Subd. 2. [CHANGE IN RESIDENCE.] (a) When an assistance 126.1 unit moves from one county to another and continues to receive 126.2 assistance, the new county of residence becomes the county of 126.3 financial responsibility when that assistance unit has lived in 126.4 that county in nonexcluded status for two full calendar months. 126.5 "Nonexcluded status" means the period of residence that is not 126.6 considered excluded time under section 256G.02, subdivision 6. 126.7 When a minor child moves from one county to another to reside 126.8 with a different caregiver, the caregiver in the former county 126.9 is eligible to receive assistance for that child only through 126.10 the last day of the month of the move. The caregiver in the new 126.11 county becomes eligible to receive assistance for the child the 126.12 first day of the month following the move or the date of 126.13 application, whichever is later. 126.14 (b) When an applicant moves from one county to another 126.15 while the application is pending, the county where application 126.16 first occurred is the county of financial responsibility until 126.17 the applicant has lived in the new county for two full calendar 126.18 months, unless the applicant's move is covered under section 126.19 256G.02, subdivision 6. 126.20 Subd. 3. [RESPONSIBILITY FOR INCORRECT ASSISTANCE 126.21 PAYMENTS.] A county of residence, when different from the county 126.22 of financial responsibility, will be charged by the commissioner 126.23 for the value of incorrect assistance payments and medical 126.24 assistance paid to or on behalf of a person who was not eligible 126.25 to receive that amount. Incorrect payments include payments to 126.26 an ineligible person or family resulting from decisions, 126.27 failures to act, miscalculations, or overdue recertification. 126.28 However, financial responsibility does not accrue for a county 126.29 when the recertification is overdue at the time the referral is 126.30 received by the county of residence or when the county of 126.31 financial responsibility does not act on the recommendation of 126.32 the county of residence. When federal or state law requires 126.33 that medical assistance continue after assistance ends, this 126.34 subdivision also governs financial responsibility for the 126.35 extended medical assistance. 126.36 Subd. 4. [EXCLUDED TIME.] When an applicant or participant 127.1 resides in an excluded time facility as described in section 127.2 256G.02, subdivision 6, the county that is financially 127.3 responsible for the applicant or participant is the county in 127.4 which the applicant or participant last resided outside such a 127.5 facility immediately before entering the facility. When an 127.6 applicant or participant has not resided in this state for any 127.7 time other than excluded time as defined in section 256G.02, 127.8 subdivision 6, the county that is financially responsible for 127.9 the applicant or participant is the county in which the 127.10 applicant or participant resides on the date the application is 127.11 signed. 127.12 Section 58 is effective January 1, 1998, except the 127.13 transitional provision in section 72 applies. 127.14 Sec. 59. [256J.76] [COUNTY ADMINISTRATIVE AID.] 127.15 Subdivision 1. [ADMINISTRATIVE FUNCTIONS.] Beginning July 127.16 1, 1997, counties will receive federal funds from the TANF block 127.17 grant for use in supporting eligibility, fraud control, and 127.18 other related administrative functions. The federal funds 127.19 available for distribution, as determined by the commissioner, 127.20 must be an amount equal to federal administrative aid 127.21 distributed for fiscal year 1996 under titles IV-A and IV-F of 127.22 the Social Security Act in effect prior to October 1, 1996. 127.23 This amount must include the amount paid for local 127.24 collaboratives under sections 245.4932 and 256F.13, but must not 127.25 include administrative aid associated with child care under 127.26 section 119B.05, with emergency assistance intensive family 127.27 preservation services under section 256.8711, with 127.28 administrative activities as part of the employment and training 127.29 services under section 256.736, or with fraud prevention 127.30 investigation activities under section 256.983. 127.31 Subd. 2. [ALLOCATION OF COUNTY FUNDS.] (a) The 127.32 commissioner shall determine and allocate the funds available to 127.33 each county on a calendar year basis. 127.34 (b) For calendar year 1998, the commissioner shall allocate 127.35 the funds available under subdivision 1 in proportion to 127.36 administrative aid paid to each county for fiscal year 1996, 128.1 excluding any amounts paid for local collaboratives under 128.2 sections 245.4932 and 256F.13. For the period from July 1, 128.3 1997, to December 31, 1997, each county shall receive an 128.4 additional 50 percent of its calendar year 1998 allocation. 128.5 (c) For calendar year 1999 and following years, the 128.6 commissioner shall allocate the funds available under 128.7 subdivision 1 based on each county's average number of MFIP-S 128.8 cases as compared to the statewide total number of cases. The 128.9 average number of cases must be based on counts of MFIP-S cases 128.10 as of March 31, June 30, September 30, and December 31 of the 128.11 preceding calendar year. 128.12 Subd. 3. [MONTHLY PAYMENTS TO COUNTIES.] The commissioner 128.13 shall pay counties monthly as federal funds are available. The 128.14 commissioner may certify the payments for the first three months 128.15 of a calendar year. 128.16 Subd. 4. [REPORTING REQUIREMENT.] The commissioner shall 128.17 specify requirements for reporting according to section 256.01, 128.18 subdivision 2, paragraph (17). Each county shall be reimbursed 128.19 at a rate of 50 percent of eligible expenditures up to the limit 128.20 of its allocation. 128.21 Sec. 60. [256J.77] [COUNTY AID FOR SUPPLEMENTAL HOUSING 128.22 ASSISTANCE.] 128.23 Subdivision 1. [PROGRAM ESTABLISHED.] This section may be 128.24 cited as the county aid for supplemental housing assistance 128.25 program (CASHAP). CASHAP is a statewide program intended to 128.26 help meet the housing needs of legal noncitizens residing in 128.27 Minnesota on August 22, 1996, who became ineligible for SSI 128.28 benefits under the Personal Responsibility and Work Opportunity 128.29 Reconciliation Act of 1996, Public Law Number 104-193. 128.30 Subd. 2. [ALLOCATION OF COUNTY AID FOR HOUSING ASSISTANCE 128.31 FUNDS.] State funds appropriated for the county aid for 128.32 supplemental housing assistance program shall be allocated to 128.33 county agencies as follows: 128.34 (1) for state fiscal year 1998, the allocation shall be 128.35 based on the county's proportion of the total statewide number 128.36 of legal noncitizens residing in Minnesota on August 22, 1996, 129.1 who became ineligible for SSI benefits under the Personal 129.2 Responsibility and Work Opportunity Reconciliation Act of 1996, 129.3 Public Law Number 104-193; and 129.4 (2) for subsequent fiscal years, the allocation shall be 129.5 based on the county's proportion of total statewide spending for 129.6 county aid for supplemental housing assistance in the preceding 129.7 year. 129.8 Subd. 3. [USE OF CASHAP FUNDS.] County agencies may spend 129.9 CASHAP funds at their discretion to assist with the housing 129.10 needs of legal noncitizens residing in Minnesota on August 22, 129.11 1996, who became ineligible for SSI under the Personal 129.12 Responsibility and Work Opportunity Reconciliation Act of 1996, 129.13 Public Law Number 104-193. 129.14 Subd. 4. [REALLOCATION OF UNUSED FUNDS.] Any CASHAP funds 129.15 not used by a county at the end of a fiscal year shall be 129.16 returned to the commissioner and reallocated in the following 129.17 fiscal year as provided in subdivision 2. 129.18 Sec. 61. [NOTICE AND REFERRAL PROCEDURES FOR DOMESTIC 129.19 VIOLENCE VICTIMS.] 129.20 The commissioner of human services shall develop procedures 129.21 for the county agencies and their contractors to identify 129.22 victims of domestic violence. The procedures must provide, at a 129.23 minimum, universal notification to all applicants and recipients 129.24 of MFIP-S that: 129.25 (1) referrals to counseling and supportive services are 129.26 available for victims of domestic violence; 129.27 (2) nonpermanent resident battered individuals married to 129.28 U.S. citizens or permanent residents may be eligible to petition 129.29 for permanent residency under the Violence Against Women Act, 129.30 and that referrals to appropriate legal services are available; 129.31 and 129.32 (3) victims of domestic violence are exempt from the 129.33 60-month limit on assistance while the individual is complying 129.34 with an approved safety plan, as defined in section 256J.49, 129.35 subdivision 11. Notification must be in writing and orally at 129.36 the time of application and recertification, when the individual 130.1 is referred to the title IV-D child support agency, and at the 130.2 beginning of any job training or work placement assistance 130.3 program. 130.4 Sec. 62. [DOMESTIC VIOLENCE; TRAINING PROGRAMS.] 130.5 The commissioner of human services shall establish 130.6 mandatory domestic violence and sexual abuse training programs 130.7 for employees, contractors, subcontractors, and county welfare 130.8 agencies of the department of human services who work with 130.9 applicants and recipients. To the extent possible, the state or 130.10 local agency shall not refer applicants or recipients to any 130.11 employer who has not been trained in dealing with issues related 130.12 to domestic violence and sexual assault. 130.13 The commissioner shall establish a request for proposals 130.14 from experts in domestic violence and sexual assault issues to 130.15 train employees, contractors, and county welfare agency workers 130.16 on issues of domestic violence and sexual assault. To the 130.17 extent possible, the commissioner will integrate training on 130.18 domestic violence and sexual assault issues with retraining of 130.19 state and county employees on implementation of the new TANF 130.20 program. 130.21 Sec. 63. [FORECAST OF COSTS REQUIRED.] 130.22 For the part of the department of human services' budget 130.23 devoted to assistance to families grants, the commissioner shall 130.24 forecast the total projected costs of each component activity 130.25 biannually, as a part of the November and March forecasts. The 130.26 total projected costs must also be recognized in the fund 130.27 balance. 130.28 Sec. 64. [WELFARE REFORM COORDINATING COMMISSION.] 130.29 The commissioner of human services shall convene a welfare 130.30 reform coordinating commission to oversee implementation of the 130.31 welfare reform measures implemented under the authority of 130.32 Public Law Number 104-193 in this state. The commission shall 130.33 consist of the commissioners of health, human services, economic 130.34 security, transportation, and children, families, and learning. 130.35 In addition, the commissioners shall include representatives of 130.36 county social service agencies and advocacy and recipient 131.1 groups. The commissioner shall convene the commission no later 131.2 than October 1, 1997. The commission shall prepare a report on 131.3 welfare reform and implementation to be presented to the fiscal 131.4 and policy chairs of the health and human services committees in 131.5 the house and senate by February 15, 1998. The report shall 131.6 provide current information on welfare reform initiatives, 131.7 including information on any additional federal changes likely 131.8 to impact Minnesota. The report shall also include 131.9 recommendations for any changes necessary in Minnesota programs 131.10 to ensure successful and financially sound implementation of 131.11 welfare reform measures. 131.12 Sec. 65. [FINDINGS; CONTINGENT BENEFIT STANDARDS.] 131.13 The legislature makes the following findings: 131.14 (a) The legislature is statutorily required to balance the 131.15 state budget. 131.16 (b) The task of balancing the state budget is made 131.17 difficult in the area of the new federal welfare reform program 131.18 for needy families due to the dramatic change in program design 131.19 that this state and all other states must experience, rendering 131.20 historical data on client behavior, interstate migration, and 131.21 welfare spending patterns of dubious value. 131.22 (c) Many states are using the flexibility given to them 131.23 under the federal welfare reform bill to enact more restrictive 131.24 programs than Minnesota. 131.25 (d) Minnesota county human service agencies have reported 131.26 to the commissioner of human services verified cases of families 131.27 moving from other states to this state at least in part because 131.28 this state has higher public assistance benefits. 131.29 (e) Within the state's limited resources, the legislature 131.30 wishes to manage funds appropriated under this part to best 131.31 provide for needy Minnesota families and their children. 131.32 (f) To that end, the legislature has adopted a policy of 131.33 requiring families to be in this state for at least 30 days 131.34 before being eligible for benefits and providing families in 131.35 which no mandatory member has resided in Minnesota for the 131.36 previous 12 months a benefit based on the grant they would have 132.1 received had they applied for benefits in their previous state 132.2 of residence. 132.3 (g) Therefore, if the policy designed to make welfare 132.4 benefits a neutral factor in the decision to move to Minnesota 132.5 and to best manage the benefit appropriation for needy Minnesota 132.6 families and their children, while providing a safety net for 132.7 recent interstate migrants, is enjoined or otherwise prevented 132.8 from being implemented, the commissioner shall do the 132.9 following: (1) ratably reduce benefits under AFDC and MFIP-S, 132.10 but only in an amount sufficient to remain within the forecasted 132.11 budgets for those programs; 132.12 (2) notify the fiscal and policy chairs of the house and 132.13 senate human services committees that the reductions have taken 132.14 place; and 132.15 (3) formulate a plan to be presented to the next 132.16 legislative session. 132.17 Vendor payments under this paragraph shall be for rent and 132.18 utilities, up to the limit of the grant amount. Residual 132.19 amounts, if any, shall be paid directly to the assistance unit. 132.20 Sec. 66. [TRANSFER FUNDING.] 132.21 Effective July 1, 1997, all funding related to the child 132.22 care assistance programs under Minnesota Statutes, section 132.23 256.035, subdivision 8, is transferred to the commissioner of 132.24 children, families, and learning. 132.25 Sec. 67. [SEVERABILITY CLAUSE.] 132.26 If any provision of this act is enjoined from 132.27 implementation or found unconstitutional by any court of 132.28 competent jurisdiction, the remaining provisions shall remain 132.29 valid and shall be given full effect. 132.30 Sec. 68. [TRIBAL EMPLOYMENT AND TRAINING PROGRAM; REPORT.] 132.31 Subdivision 1. [AUTHORITY.] The commissioner of human 132.32 services, in conjunction with Indian tribes in the state, shall 132.33 develop and present to the legislature a plan for providing 132.34 state funds in support of a family assistance program 132.35 administered by Indian tribes who have a reservation in this 132.36 state and who have federal approval to operate a tribal 133.1 program. This plan must identify the primary arrangements 133.2 needed to effect tribal administration and needed funding, 133.3 including agreements with a consortium of tribes, that 133.4 accurately reflects the state funding levels for Indian people 133.5 as would otherwise be available to MFIP-S program recipients. 133.6 This plan must be developed consistent with the requirements set 133.7 forth in the Personal Responsibility and Work Opportunity 133.8 Reconciliation Act of 1996, Public Law Number 104-193, section 133.9 412(b)(1)(B). For purposes of this section, "Indian tribe" 133.10 means a tribe, band, nation, or other federally recognized group 133.11 or community of Indians. 133.12 Subd. 2. [REPORT TO THE LEGISLATURE.] The plan referred to 133.13 in subdivision 1 and any resulting proposal for legislation must 133.14 be presented to the legislature by December 15, 1997. 133.15 Subd. 3. [TRIBAL AGREEMENTS.] Once the plan in subdivision 133.16 1 is presented to and approved by the legislature and signed 133.17 into law, the commissioner is authorized to enter into 133.18 agreements with Indian tribes or consortia of tribes consistent 133.19 with the plan. 133.20 Subd. 4. [TRIBAL AND STATE COORDINATION.] The commissioner 133.21 shall consult with Indian tribes in the state when formulating 133.22 general policies regarding the implementation of the state's 133.23 public assistance program operated under title IV-A of the 133.24 Social Security Act. The commissioner shall take into 133.25 consideration circumstances affecting Indians, including 133.26 circumstances identified by Indian tribes, when designing the 133.27 state's program. The state shall provide Indians with equitable 133.28 access to assistance as provided in the Personal Responsibility 133.29 and Work Opportunity Reconciliation Act of 1996, Public Law 133.30 Number 104-193, section 402(a)(5). 133.31 Subd. 5. [EMPLOYMENT TRAINING.] Nothing in this section 133.32 precludes any Indian tribe in this state from participating in 133.33 employment and training or child care programs otherwise 133.34 available by law to Indian tribes under: 133.35 (1) the MFIP program under Minnesota Statutes, sections 133.36 256.031 to 256.0351, or its successor program; 134.1 (2) project STRIDE under Minnesota Statutes, section 134.2 256.736, or its successor program; 134.3 (3) child care programs for tribal program participants; 134.4 and 134.5 (4) the Minnesota injury protection program. 134.6 Subd. 6. [TRIBAL SOVEREIGN STATUS.] Nothing in this 134.7 section shall be construed to waive, modify, expand, or diminish 134.8 the sovereignty of federally recognized Indian tribes, nor shall 134.9 any Indian tribes be required in any way to deny their 134.10 sovereignty or waive their immunities except as mandated by 134.11 federal law as a requirement of entering into an agreement with 134.12 the state under this section. 134.13 Subd. 7. [PLANNING.] The commissioner of human services 134.14 shall assist tribes, in a collaborative effort, with the 134.15 development of the plan under subdivision 1 and efforts 134.16 associated with such development. Such efforts shall include, 134.17 but not be limited to, data collection regarding: receipt of 134.18 public assistance by Indians, unemployment rates within tribal 134.19 service delivery areas, and dissemination of information and 134.20 research. The commissioner shall provide technical assistance 134.21 to tribal welfare reform task force members and tribes regarding 134.22 the implementation and operation of public assistance programs 134.23 and assistance to tribes to develop the plan under subdivision 1. 134.24 Sec. 69. [REPAYMENT OF POST-SECONDARY EDUCATION FUNDS; 134.25 PROPOSAL REQUIRED.] 134.26 By February 15, 1998, the commissioner of human services, 134.27 in consultation with representatives of county agencies, must 134.28 develop and submit to the legislature a proposal that specifies 134.29 a methodology for the repayment of funds under Minnesota 134.30 Statutes 1996, section 256J.53, subdivision 4. The 134.31 commissioner's proposal must not apply the methodology 134.32 retroactively to participants who had a post-secondary education 134.33 or training program approved under that section before the date 134.34 that the commissioner's proposal, if enacted, becomes effective. 134.35 Sec. 70. [REPEALER.] 134.36 (a) Minnesota Statutes 1996, sections 256.12, subdivisions 135.1 9, 10, 14, 15, 19, 20, 21, 22, and 23; 256.72; 256.73, 135.2 subdivisions 1, 1a, 1b, 2, 3a, 3b, 5, 5a, 6, 8, 8a, 9, 10, and 135.3 11; 256.7341; 256.736, subdivision 18; 256.7365, subdivisions 1, 135.4 2, 3, 4, 5, 6, 7, and 9; 256.7366; 256.737; 256.738; 256.7381; 135.5 256.7382; 256.7383; 256.7384; 256.7385; 256.7386; 256.7387; 135.6 256.7388; 256.739; 256.74, subdivisions 1, 1a, 1b, 2, and 6; 135.7 256.745; 256.75; 256.76, subdivision 1; 256.78; 256.80; 256.81; 135.8 256.82; 256.84; 256.85; 256.86; 256.863; 256.871; and 256.879, 135.9 are repealed effective July 1, 1998. 135.10 (b) From January 1, 1998, to March 31, 1998, the statutory 135.11 sections listed in paragraph (a) apply only in counties that 135.12 operate an MFIP field trial and that continue to provide project 135.13 STRIDE services to members of the MFIP comparison group, and in 135.14 those counties that have not completed conversion to MFIP-S 135.15 employment and training services. 135.16 (c) From April 1, 1998, through June 30, 1998, the sections 135.17 listed in paragraph (a) are effective only in counties that 135.18 operate an MFIP field trial and that continue to provide project 135.19 STRIDE services to members of the comparison group. 135.20 Sec. 71. [NOTICE OF EARLY IMPLEMENTATION.] 135.21 Notwithstanding any inconsistent provisions of sections 135.22 256.12, 256.72 to 256.87, and 256D.01 to 256D.21, a county may 135.23 implement the provisions of chapter 256J or 256K before January 135.24 1, 1998, if the county submits a written notice to the 135.25 commissioner of human services that specifies the date of 135.26 implementation and concisely outlines the county's plan for 135.27 early implementation. Upon receipt of a county's notice, the 135.28 commissioner must review the county's plan for feasibility of 135.29 implementation. The commissioner's review must occur in a 135.30 timely manner. The commissioner may request modifications to 135.31 the county's plan to increase its feasibility. When the 135.32 commissioner agrees with the county's plan, the commissioner 135.33 must publish a notice in the state register that specifies the 135.34 date upon which the MFIP-S program replaces the AFDC and family 135.35 GA programs in the county. 135.36 Sec. 72. [EFFECTIVE DATE.] 136.1 Subdivision 1. [GENERAL EFFECTIVE DATE.] Except as 136.2 specified in subdivision 2, article 1 is effective July 1, 1997. 136.3 Subd. 2. [TRANSITION EFFECTIVE DATE.] The sections 136.4 specified in this article are effective January 1, 1998, except 136.5 that for counties who elect to begin operation of MFIP-S prior 136.6 to January 1, 1998, these sections take effect for each county 136.7 on the date that MFIP-S is implemented in the county. 136.8 ARTICLE 2 136.9 WORK FIRST PROGRAM 136.10 Section 1. [256K.01] [WORK FIRST PROGRAM.] 136.11 Subdivision 1. [CITATION.] Sections 256K.01 to 256K.09 may 136.12 be cited as the work first program. 136.13 Subd. 2. [DEFINITIONS.] As used in sections 256K.01 to 136.14 256K.09, the following words have the meanings given them. 136.15 (a) "Applicant" means an individual who has submitted a 136.16 request for assistance and has never received an AFDC, MFIP-S or 136.17 a family general assistance grant through the MAXIS computer 136.18 system as a caregiver, or an applicant whose AFDC, MFIP-S or 136.19 family general assistance application was denied or benefits 136.20 were terminated due to noncompliance with work first 136.21 requirements. 136.22 (b) "Application date" means the date any Minnesota county 136.23 agency receives a signed and dated combined application form 136.24 Part I. 136.25 (c) "CAF" means a combined application form on which people 136.26 apply for multiple assistance programs, including: cash 136.27 assistance, refugee cash assistance, Minnesota supplemental aid, 136.28 food stamps, medical assistance, general assistance medical 136.29 care, emergency assistance, emergency medical assistance, and 136.30 emergency general assistance medical care. 136.31 (d) "Caregiver" means a parent or eligible adult, including 136.32 a pregnant woman, who is part of the assistance unit that has 136.33 applied for or is receiving an AFDC, MFIP-S, or family general 136.34 assistance grant. In a two-parent family, both parents are 136.35 caregivers. 136.36 (e) "Child support" means a voluntary or court-ordered 137.1 payment by absent parents in an assistance unit. 137.2 (f) "Commissioner" means the commissioner of human services. 137.3 (g) "Department" means the department of human services. 137.4 (h) "Employability development plan" or "EDP" means a plan 137.5 developed by the applicant, with advice from the employment 137.6 advisor, for the purposes of identifying an employment goal, 137.7 improving work skills through certification or education, 137.8 training or skills recertification, and which addresses barriers 137.9 to employment. 137.10 (i) "EDP status report form" means a program form on which 137.11 deferred participants indicate what has been achieved in the 137.12 participant's employability development plan and the types of 137.13 problems encountered. 137.14 (j) "Employment advisor" means a program staff member who 137.15 is qualified to assist the participant to develop a job search 137.16 or employability development plan, match the participant with 137.17 existing job openings, refer the participant to employers, and 137.18 has an extensive knowledge of employers in the area. 137.19 (k) "Financial specialist" means a program staff member who 137.20 is trained to explain the benefits offered under the program, 137.21 determine eligibility for different assistance programs, and 137.22 broker other resources from employers and the community. 137.23 (l) "Job network" means individuals that a person may 137.24 contact to learn more about particular companies, inquire about 137.25 job leads, or discuss occupational interests and expertise. 137.26 (m) "Job search allowance" means the amount of financial 137.27 assistance needed to support job search. 137.28 (n) "Job search plan" or "JSP" means the specific plan 137.29 developed by the applicant, with advice from the employment 137.30 advisor, to secure a job as soon as possible, and focus the 137.31 scope of the job search process and other activities. 137.32 (o) "JSP status report form" means a program form on which 137.33 participants indicate the number of submitted job applications, 137.34 job interviews held, jobs offered, other outcomes achieved, 137.35 problems encountered, and the total number of hours spent on job 137.36 search per week. 138.1 (p) "Participant" means a recipient who is required to 138.2 participate in the work first program. 138.3 (q) "Program" means the work first program. 138.4 (r) "Provider" means an employment and training agency 138.5 certified by the commissioner of economic security under section 138.6 268.871, subdivision 1. 138.7 (s) "Self-employment" means employment where people work 138.8 for themselves rather than an employer, are responsible for 138.9 their own work schedule, and do not have taxes or FICA withheld 138.10 by an employer. 138.11 (t) "Self-sufficiency agreement" means the agreement 138.12 between the county or its representative and the applicant that 138.13 describes the activities that the applicant must conduct and the 138.14 necessary services and aid to be furnished by the county to 138.15 enable the individual to meet the purpose of either the job 138.16 search plan or employability development plan. 138.17 (u) "Subsidized job" means a job that is partly reimbursed 138.18 by the provider for cost of wages for participants in the 138.19 program. 138.20 Subd. 3. [ESTABLISHING WORK FIRST PROGRAM.] The 138.21 commissioners of human services and economic security may 138.22 develop and establish pilot projects which require applicants 138.23 for aid under AFDC, MFIP-S or family general assistance to meet 138.24 the requirements of the work first program. The purpose of the 138.25 program is to: 138.26 (1) ensure that the participant is working as early as 138.27 possible; 138.28 (2) promote greater opportunity for economic self-support, 138.29 participation, and mobility in the work force; and 138.30 (3) minimize the risk for long-term welfare dependency. 138.31 Subd. 4. [PROGRAM ADMINISTRATION.] The program must be 138.32 administered in a way that, in addition to the county agency, 138.33 other sectors in the community such as employers from the public 138.34 and private sectors, not-for-profit organizations, educational 138.35 and social service agencies, labor unions, and neighborhood 138.36 associations are involved. 139.1 Subd. 5. [PROGRAM DESIGN.] The program shall meet the 139.2 following principles: 139.3 (1) work is the primary means of economic support; 139.4 (2) the individual's potential is reviewed during the 139.5 application process to determine how to approach the job market 139.6 aggressively; 139.7 (3) public aid such as cash and medical assistance, child 139.8 care, child support assurance, and other cash benefits are used 139.9 to support intensive job search and immediate work; and 139.10 (4) maximum use is made of tax credits to supplement income. 139.11 Subd. 6. [DUTIES OF COMMISSIONER.] In addition to any 139.12 other duties imposed by law, the commissioner shall: 139.13 (1) establish the program according to sections 256K.01 to 139.14 256K.09 and allocate money as appropriate to pilot counties 139.15 participating in the program; 139.16 (2) provide systems development and staff training; 139.17 (3) accept and supervise the disbursement of any funds that 139.18 may be provided from other sources for use in the demonstration 139.19 program; and 139.20 (4) direct a study to safeguard the interests of children. 139.21 Subd. 7. [DUTIES OF COUNTY AGENCY.] The county agency 139.22 shall: 139.23 (1) collaborate with the commissioners of human services 139.24 and economic security and other agencies to develop, implement, 139.25 and evaluate the demonstration of the work first program; 139.26 (2) operate the work first program in partnership with 139.27 private and public employers, local industry councils, labor 139.28 unions, and employment, educational, and social service 139.29 agencies, according to subdivision 4; and 139.30 (3) ensure that program components such as client 139.31 orientation, immediate job search, job development, creation of 139.32 temporary public service jobs, job placements, and postplacement 139.33 follow-up are implemented according to the work first program. 139.34 Subd. 8. [DUTIES OF PARTICIPANT.] To be eligible for an 139.35 AFDC, MFIP-S or family general assistance benefit, a participant 139.36 shall cooperate with the county agency, the provider, and the 140.1 participant's employer in all aspects of the program. 140.2 Sec. 2. [256K.02] [PROGRAM PARTICIPANTS; PROGRAM 140.3 EXPECTATIONS.] 140.4 All applicants selected for participation are expected to 140.5 meet the requirements under the work first program. Payments 140.6 for rent and utilities up to the AFDC, MFIP-S or family general 140.7 assistance benefits to which the assistance unit is entitled 140.8 will be vendor paid for as many months as the applicant is 140.9 eligible or six months, whichever comes first. The residual 140.10 amount after vendor payment, if any, will be paid to the 140.11 applicant, unless it is used as a wage subsidy under section 140.12 256K.09, subdivision 2. 140.13 Sec. 3. [256K.03] [PROGRAM REQUIREMENTS.] 140.14 Subdivision 1. [NOTIFICATION OF PROGRAM.] Except for the 140.15 provisions in this section, the provisions for the AFDC, MFIP-S, 140.16 and family general assistance application process shall be 140.17 followed. Within two days after receipt of a completed combined 140.18 application form, the county agency must refer to the provider 140.19 the applicant who meets the conditions under section 256K.02, 140.20 and notify the applicant in writing of the program including the 140.21 following provisions: 140.22 (1) notification that, as part of the application process, 140.23 applicants are required to attend orientation, to be followed 140.24 immediately by a job search; 140.25 (2) the program provider, the date, time, and location of 140.26 the scheduled program orientation; 140.27 (3) the procedures for qualifying for and receiving 140.28 benefits under the program; 140.29 (4) the immediate availability of supportive services, 140.30 including, but not limited to, child care, transportation, 140.31 medical assistance, and other work-related aid; and 140.32 (5) the rights, responsibilities, and obligations of 140.33 participants in the program, including, but not limited to, the 140.34 grounds for exemptions and deferrals, the consequences for 140.35 refusing or failing to participate fully, and the appeal process. 140.36 Subd. 2. [PROGRAM ORIENTATION.] The county must give a 141.1 face-to-face orientation regarding the program to the applicant 141.2 within five days after the date of application. The orientation 141.3 must be designed to inform the applicant of: 141.4 (1) the importance of locating and obtaining a job as soon 141.5 as possible; 141.6 (2) benefits to be provided to support work; 141.7 (3) the manner by which benefits shall be paid; 141.8 (4) how other supportive services such as medical 141.9 assistance, child care, transportation, and other work-related 141.10 aid shall be available to support job search and work; 141.11 (5) the consequences for failure without good cause to 141.12 comply with program requirements; and 141.13 (6) the appeal process. 141.14 Subd. 3. [JOB SEARCH PLAN; EMPLOYMENT ADVISOR; FINANCIAL 141.15 SPECIALIST.] At the end of orientation, the provider must assign 141.16 an employment advisor and a financial specialist to the 141.17 applicant. With advice from the employment advisor, the 141.18 applicant must develop a job search plan based on existing job 141.19 markets, prior employment, work experience, and transferable 141.20 work skills, unless exempt under subdivision 5. A job search 141.21 must be planned and conducted for a period of up to eight 141.22 consecutive weeks from the date of application and for at least 141.23 32 hours per week. The types of and target number of job 141.24 openings to be pursued per week must be written in the job 141.25 search plan. The following activities may be included in the 141.26 job search plan: 141.27 (1) motivational counseling; 141.28 (2) job networking or training on how to locate job 141.29 openings; 141.30 (3) development of a personal resume; and 141.31 (4) information on how to conduct job interviews and 141.32 establish a personal job network. 141.33 Following the development of the job search plan or the 141.34 employability development plan under subdivision 8, the 141.35 financial specialist must interview the applicant to determine 141.36 eligibility for and the extent of benefits under sections 142.1 256K.06 and 256K.07 to support the job search or employability 142.2 development plan. The provider must attach to the appropriate 142.3 plan the summary of the necessary enabling services and benefits 142.4 to be furnished by the provider. The provider or its 142.5 representative and the applicant must sign the plan, with its 142.6 attachment, to indicate a self-sufficiency agreement between the 142.7 provider and the participant. 142.8 Subd. 4. [IMMEDIATE JOB SEARCH.] An applicant must be 142.9 required to begin job search within seven days after the date of 142.10 application for at least 32 hours per week for up to eight 142.11 weeks, unless exempt under subdivision 5 or deferred under 142.12 subdivision 8. For an applicant who is working at least 20 142.13 hours per week, job search shall consist of 12 hours per week 142.14 for up to eight weeks. Within the first five days of job 142.15 search, the applicant is required to initiate informational 142.16 contacts with prospective employers, generate additional job 142.17 leads from the job network, review references and experiences 142.18 from previous employment, and carry out the other activities 142.19 under the job search plan developed under subdivision 3. 142.20 Subd. 5. [EXEMPTION CATEGORIES.] (a) The applicant will be 142.21 exempt from the job search requirements and development of a job 142.22 search plan and an employability development plan under 142.23 subdivisions 3, 4, and 8 if the applicant belongs to any of the 142.24 following groups: 142.25 (1) caregivers under age 20 who have not completed a high 142.26 school education and are attending high school on a full-time 142.27 basis; 142.28 (2) individuals who are age 60 or older; 142.29 (3) individuals who are suffering from a professionally 142.30 certified permanent or temporary illness, injury, or incapacity 142.31 which is expected to continue for more than 30 days and which 142.32 prevents the person from obtaining or retaining employment; 142.33 (4) caregivers whose presence in the home is needed because 142.34 of illness or incapacity of another member in the household; 142.35 (5) women who are pregnant, if it has been medically 142.36 verified that the child is expected to be born within the next 143.1 six months; 143.2 (6) caregivers or other caregiver relatives of a child 143.3 under the age of three who personally provide full-time care for 143.4 the child; 143.5 (7) individuals employed at least 30 hours per week; 143.6 (8) individuals for whom participation would require a 143.7 round trip commuting time by available transportation of more 143.8 than two hours, excluding transporting of children for child 143.9 care; 143.10 (9) individuals for whom lack of proficiency in English is 143.11 a barrier to employment, provided such individuals are 143.12 participating in an intensive program which lasts no longer than 143.13 six months and is designed to remedy their language deficiency; 143.14 (10) individuals who, because of advanced age or lack of 143.15 ability, are incapable of gaining proficiency in English, as 143.16 determined by the county social worker, shall continue to be 143.17 exempt under this subdivision and are not subject to the 143.18 requirement that they be participating in a language program; 143.19 (11) individuals under such duress that they are incapable 143.20 of participating in the program, as determined by the county 143.21 social worker; or 143.22 (12) individuals in need of refresher courses for purposes 143.23 of obtaining professional certification or licensure. 143.24 (b) In a two-parent family, only one caregiver may be 143.25 exempted under paragraph (a), clauses (4) and (6). 143.26 Subd. 6. [COUNTY DUTIES.] The county must act on the 143.27 application within 30 days of the application date. If the 143.28 applicant is not eligible, the application will be denied and 143.29 the county must notify the applicant of the denial in writing. 143.30 An applicant whose application has been denied may be allowed to 143.31 complete the job search plan; however, supportive services will 143.32 not be provided. 143.33 Subd. 7. [JOB SEARCH PLAN STATUS REPORT.] The applicant or 143.34 participant must submit a completed job search plan status 143.35 report form to the employment advisor every two weeks during the 143.36 job search process, with the first completed form due 21 days 144.1 after the date of application. 144.2 Subd. 8. [EMPLOYABILITY DEVELOPMENT PLAN.] At the 144.3 discretion and approval of the employment advisor, the applicant 144.4 may be deferred from the requirement to conduct at least 32 144.5 hours of job search per week for up to eight consecutive weeks, 144.6 if during the development of the job search plan, the applicant 144.7 is determined to: 144.8 (1) not have worked within the past 12 months and not have 144.9 a high school or a general equivalency diploma provided the 144.10 applicant agrees to develop and carry out an employability 144.11 development plan instead of job search, and concurrently work 144.12 for at least 16 hours per week in a temporary public service 144.13 job. The employability development plan must include the 144.14 employment goals and specific outcomes the participant must 144.15 achieve; 144.16 (2) be within six months of completing any post-secondary 144.17 training program, provided that the applicant agrees to develop 144.18 and carry out an employability development plan instead of a job 144.19 search, and concurrently work for a minimum number of hours per 144.20 week in a temporary public service job. The employability 144.21 development plan must include the employment goal and specific 144.22 outcomes that the participant must achieve. The applicant that 144.23 is deferred under this subdivision may choose to work in a job 144.24 other than a public service job for a minimum number of hours 144.25 per week rather than in a temporary public service job. For 144.26 individuals who are participating in an educational program 144.27 under this clause, and who are attending school full time as 144.28 determined by the institution, there is no work requirement. 144.29 For individuals participating in an educational program on a 144.30 part-time basis as determined by the institution, the minimum 144.31 number of hours that a participant must work shall be decreased 144.32 as the participant increases the number of credit hours taken, 144.33 except that the participant shall not be required to work more 144.34 than eight hours per week. 144.35 During vacation periods of one month or more, the 16-hour 144.36 per week minimum work requirement shall apply. The applicant 145.1 may be deferred for up to six months. At the end of the 145.2 deferment period, the participant must develop a job search plan 145.3 and conduct at least 32 hours of job search per week for up to 145.4 eight consecutive weeks, and submit reports as required under 145.5 subdivisions 3 and 4; or 145.6 (3) be in treatment for chemical dependency, be a victim of 145.7 domestic abuse, or be homeless, provided that the applicant 145.8 agrees to develop an employability development plan instead of a 145.9 job search plan, and immediately follow through with the 145.10 activities in the employability development plan. The 145.11 employability development plan must include specific outcomes 145.12 that the applicant must achieve for the duration of the 145.13 employability development plan and activities which are needed 145.14 to address the issues identified. Under this clause, the 145.15 applicant may be deferred for up to eight weeks. 145.16 Subd. 9. [EDP STATUS REPORT.] The participant who is 145.17 deferred from job search under subdivision 8 must submit a 145.18 completed employability development plan status report form to 145.19 the employment advisor every 14 days as long as the participant 145.20 continues to be deferred, with the first completed form due 21 145.21 days after the date of application. 145.22 Subd. 10. [JOB OFFER.] The participant must not refuse any 145.23 job offer, provided that the job is within the participant's 145.24 physical and mental abilities, pays hourly gross wages of not 145.25 less than the applicable state or federal minimum wage, and 145.26 meets health and safety standards set by federal, state, and 145.27 county agencies. If a job is offered, the participant must 145.28 inform the provider immediately to redetermine eligibility for 145.29 and extent of benefits and services to support work. To enhance 145.30 job retention, the provider may provide services such as 145.31 motivational counseling or on-site problem solving for up to six 145.32 months. The participant who has completed at least six months 145.33 of work in a nonsubsidized job shall be encouraged to 145.34 participate in a training program that would improve the 145.35 participant's ability to obtain a job that pays a higher wage. 145.36 Subd. 11. [DUTY TO REPORT.] The participant must 146.1 immediately inform the provider regarding any changes related to 146.2 the participant's employment status. 146.3 Subd. 12. [REQUIREMENT TO WORK IN A TEMPORARY PUBLIC 146.4 SERVICE JOB.] (a) If after the completion of the maximum eight 146.5 weeks of job search the participant has failed to secure a 146.6 nonsubsidized or a subsidized job for at least 32 hours per 146.7 week, or does not earn a net income from self-employment that is 146.8 equal to at least the AFDC, MFIP-S or family general assistance 146.9 monthly grant for the household size, whichever is applicable, 146.10 the participant is required to work in a temporary public 146.11 service job for up to 67 working days for (1) at least 32 hours 146.12 per week, or (2) a period equivalent to the result of dividing 146.13 the monthly grant amount which the participant would otherwise 146.14 receive, by the federal hourly minimum wage, or applicable 146.15 hourly state minimum wage, or the hourly rate of pay for 146.16 individuals employed in the same occupation at the site, 146.17 whichever is highest. If the result is more than 128 hours per 146.18 month, the participant's requirement to work in a temporary 146.19 public service job shall not be more than 32 hours per week. 146.20 (b) Within seven days from the date of application, the 146.21 participant who is deferred under subdivision 8, clause (1) or 146.22 (2), and is participating in an educational program on a 146.23 part-time basis must work in a temporary public service job as 146.24 required under subdivision 8, clause (2). 146.25 (c) The provider shall strive to match the profile of the 146.26 participant with the needs of the employers that are 146.27 participating in a temporary jobs program under section 256K.05. 146.28 Sec. 4. [256K.04] [JOB DEVELOPMENT AND SUBSIDY.] 146.29 Subdivision 1. [JOB INVENTORY.] The provider must develop 146.30 an inventory of job openings including full-time, part-time, 146.31 permanent, temporary or seasonal, and training positions in 146.32 partnership with private and public employers, local industry 146.33 councils, and employment agencies. To the extent possible, the 146.34 inventory must include specific information regarding job 146.35 openings, must be updated on a weekly basis, and must be 146.36 available to all participants on a daily basis. 147.1 Subd. 2. [JOB SUBSIDY.] The county may use all or part of 147.2 the AFDC, MFIP-S or family general assistance benefit as a 147.3 subsidy to employers for the purpose of providing work 147.4 experience or training to the participant who has completed the 147.5 job search plan, provided that: 147.6 (1) the job to be subsidized is permanent and full time, 147.7 and pays an hourly rate of at least $6 per hour; 147.8 (2) the employer agrees to retain the participant after 147.9 satisfactory completion of the work experience or training 147.10 period; and 147.11 (3) the participant has first tried to secure a 147.12 nonsubsidized job by following the job search plan. 147.13 The subsidy may be available for up to six months. 147.14 Sec. 5. [256K.05] [TEMPORARY JOBS PROGRAM.] 147.15 Subdivision 1. [PROGRAM ESTABLISHED.] The provider must 147.16 establish and operate a program to provide temporary jobs to 147.17 participants who, after eight weeks of job search, are not hired 147.18 into a nonsubsidized or a subsidized job, or are deferred under 147.19 section 256K.03, subdivision 8. The temporary jobs to be 147.20 created under this section must be public service jobs that 147.21 serve a useful public service such as: health, social service, 147.22 environmental protection, education, urban and rural development 147.23 and redevelopment, welfare, recreation, public facilities, 147.24 public safety, community service, services to the aged or 147.25 disabled citizens, and child care. 147.26 Subd. 2. [ASSIGNMENT TO TEMPORARY PUBLIC SERVICE 147.27 JOBS.] The provider must assign the participant who (1) is 147.28 within completion of the required eight weeks of job search and 147.29 has failed to secure a nonsubsidized or a subsidized job for at 147.30 least 32 hours per week, or (2) does not earn a net income from 147.31 self-employment that is equal to at least the AFDC, MFIP-S or 147.32 family general assistance monthly grant for the household size, 147.33 whichever is applicable, to a temporary public service job. The 147.34 assignment must be made seven days before the end of the job 147.35 search and be based on section 256K.03, subdivision 12. The 147.36 participant that is deferred under section 256K.03, subdivision 148.1 8, will be assigned by the provider to a temporary public 148.2 service job within seven days after the application. 148.3 Subd. 3. [PARTICIPANT'S STATUS.] The participant who is 148.4 working in a temporary public service job under this section is 148.5 not considered an employee for the purposes of unemployment 148.6 insurance compensation, retirement, or civil service laws, and 148.7 shall not perform work ordinarily performed by a public employee. 148.8 Subd. 4. [CONTINUOUS JOB SEARCH REQUIREMENT.] At the 148.9 discretion of the provider, the participant who is working in a 148.10 temporary public service job under section 256K.03, subdivision 148.11 12, may be required to continue to look for a job for up to 148.12 eight hours per week in addition to working. The participant 148.13 who is working at least 20 hours per week but less than 32 hours 148.14 per week in a nonsubsidized or subsidized job may be required to 148.15 look for a job for up to 20 hours per week in lieu of work in 148.16 the temporary public service job so that the total hours of work 148.17 and job search is not more than 40 hours per week. 148.18 Subd. 5. [EXCUSED ABSENCES.] The participant who is 148.19 working in a temporary public service job may be allowed excused 148.20 absences from the assigned temporary job site up to eight hours 148.21 per month. For purposes of this subdivision, "excused absence" 148.22 means absence due to temporary illness or injury of the 148.23 caregiver or a member of the caregiver's family, the 148.24 unavailability of licensed child care or unavailability of 148.25 transportation needed to go to and from the work site, a job 148.26 interview, or a nonmedical emergency. For purposes of this 148.27 subdivision, "emergency" means a sudden, unexpected occurrence 148.28 or situation of a serious or urgent nature that requires action. 148.29 Subd. 6. [MOVE TO A DIFFERENT COUNTY.] If the applicant or 148.30 recipient who is required to participate in the work first 148.31 program moves to a different county in this state, the benefits 148.32 and enabling services agreed upon in the self-sufficiency 148.33 agreement shall be provided by the pilot county where the 148.34 applicant or recipient originated, provided the move was part of 148.35 the job search or employability development plan. If the 148.36 applicant or recipient is moving to a different county for 149.1 failure to comply with the requirements of the work first 149.2 program, the applicant or recipient will not be eligible for 149.3 MFIP-S in this state for at least six months from the date of 149.4 the move. 149.5 Sec. 6. [256K.06] [TRANSITIONAL BENEFITS TO SUPPORT WORK; 149.6 RENT AND UTILITIES VENDOR PAYMENT.] 149.7 Payments for rent and utilities up to the amount of AFDC, 149.8 MFIP-S, or family general assistance benefits to which the 149.9 assistance unit is entitled shall be provided in the form of 149.10 vendor payments for as many months as the applicant is eligible 149.11 or six months, whichever comes first. The residual amount after 149.12 vendor payment, if any, will be paid to the AFDC, MFIP-S or 149.13 family general assistance recipient, unless it is used as a wage 149.14 subsidy under section 256K.09, subdivision 2. This provision 149.15 shall apply to all applicants including those meeting the 149.16 exemption categories under section 256K.03, subdivision 5, or 149.17 deferral categories under section 256K.03, subdivision 8. To 149.18 the extent needed, a job search allowance shall be provided for 149.19 up to eight weeks to cover expenses related to the job search. 149.20 Before the job search allowance is issued, it must be approved 149.21 by the employment advisor and financial specialist, and clearly 149.22 described in the job search plan. 149.23 Sec. 7. [256K.07] [ELIGIBILITY FOR FOOD STAMPS, MEDICAL 149.24 ASSISTANCE, AND CHILD CARE.] 149.25 The participant shall be treated as an AFDC, MFIP-S or 149.26 family general assistance recipient, whichever is applicable, 149.27 for food stamps, medical assistance, and child care eligibility 149.28 purposes. The participant who leaves the program as a result of 149.29 increased earnings from employment shall be eligible for 149.30 transitional Medical Assistance and child care without regard to 149.31 AFDC, MFIP-S or family general assistance receipt in three of 149.32 the six months preceding ineligibility. 149.33 Sec. 8. [256K.08] [SANCTIONS AND APPEAL PROCESS.] 149.34 Subdivision 1. [GOOD CAUSE.] (a) For purposes of this 149.35 subdivision, "good cause" means absence due to temporary illness 149.36 or injury of the participant or a member of the participant's 150.1 family, the unavailability of licensed child care or 150.2 unavailability of transportation needed to attend orientation or 150.3 conduct job search, or a nonmedical emergency as defined under 150.4 section 256K.05, subdivision 5. 150.5 (b) The applicant who is required, but fails, without good 150.6 cause, to participate in orientation, complete the job search 150.7 plan or employability development plan, and comply with the job 150.8 search requirements under section 256K.03, prior to being 150.9 eligible for AFDC, MFIP-S or family general assistance shall be 150.10 denied benefits. The applicant will not be eligible for 150.11 benefits in this state for at least six months. 150.12 (c) If, after receiving a written warning from the county, 150.13 the participant fails, without good cause, to conduct at least 150.14 32 hours of job search per week in any given two-week period, 150.15 the participant will be immediately required to work for at 150.16 least 16 hours per week in a temporary public service job. The 150.17 required 32 hours per week of job search will be reduced to 16 150.18 hours. 150.19 (d) If the participant who is deferred under section 150.20 256K.03, subdivision 8, fails to comply with the activities 150.21 described in the employability development plan, the participant 150.22 will lose the deferment status, provided that the participant 150.23 has received at least two written warnings from the provider. 150.24 (e) If the participant refuses to work in a temporary 150.25 public service job, or is terminated from a temporary public 150.26 service job for failure to work, benefits to the assistance unit 150.27 shall be terminated and the participant shall not be eligible 150.28 for aid under the MFIP-S program for at least six months from 150.29 the date of refusal or termination. If the participant, before 150.30 completing at least four consecutive months of employment, 150.31 voluntarily quits or is terminated from a nonsubsidized or a 150.32 subsidized job, the participant shall immediately be assigned to 150.33 work in a temporary public service job for at least 32 hours per 150.34 week for up to 67 working days unless the participant is hired 150.35 or rehired into a nonsubsidized or subsidized job. 150.36 Subd. 2. [NOTICE OF SANCTIONS.] If the county determines 151.1 that the participant has failed or refused without good cause, 151.2 as defined in subdivision 1, to cooperate with the program 151.3 requirements, the county shall inform the participant in writing 151.4 of its intent to impose an applicable sanction listed under 151.5 subdivision 1 and the opportunity to have a conciliation 151.6 conference upon request and within five days of the notice 151.7 before a sanction is imposed. 151.8 Sec. 9. [256K.09] [FUNDING.] 151.9 Subdivision 1. [LEVERAGING GRANT AMOUNT TO SECURE OTHER 151.10 FUNDS.] The county agency or the provider, in cooperation with 151.11 the department, may leverage the grant amount to secure other 151.12 funds from employers, foundations, and the community for the 151.13 purpose of developing additional components to benefit children 151.14 and improve the program. 151.15 Subd. 2. [EMPLOYER REIMBURSEMENT.] The employer shall be 151.16 reimbursed for wages paid to participants under section 256K.04, 151.17 subdivision 2. 151.18 Sec. 10. [REPEALER.] 151.19 Minnesota Statutes 1996, sections 256.7351; 256.7352; 151.20 256.7353; 256.7354; 256.7355; 256.7356; 256.7357; 256.7358; and 151.21 256.7359, are repealed. 151.22 Sec. 11. [EFFECTIVE DATE.] 151.23 Article 2 is effective July 1, 1997. 151.24 ARTICLE 3 151.25 ASSISTANCE PROGRAM CHANGES 151.26 Section 1. Minnesota Statutes 1996, section 256.01, 151.27 subdivision 2, is amended to read: 151.28 Subd. 2. [SPECIFIC POWERS.] Subject to the provisions of 151.29 section 241.021, subdivision 2, the commissioner of human 151.30 services shall: 151.31 (1) Administer and supervise all forms of public assistance 151.32 provided for by state law and other welfare activities or 151.33 services as are vested in the commissioner. Administration and 151.34 supervision of human services activities or services includes, 151.35 but is not limited to, assuring timely and accurate distribution 151.36 of benefits, completeness of service, and quality program 152.1 management. In addition to administering and supervising human 152.2 services activities vested by law in the department, the 152.3 commissioner shall have the authority to: 152.4 (a) require county agency participation in training and 152.5 technical assistance programs to promote compliance with 152.6 statutes, rules, federal laws, regulations, and policies 152.7 governing human services; 152.8 (b) monitor, on an ongoing basis, the performance of county 152.9 agencies in the operation and administration of human services, 152.10 enforce compliance with statutes, rules, federal laws, 152.11 regulations, and policies governing welfare services and promote 152.12 excellence of administration and program operation; 152.13 (c) develop a quality control program or other monitoring 152.14 program to review county performance and accuracy of benefit 152.15 determinations; 152.16 (d) require county agencies to make an adjustment to the 152.17 public assistance benefits issued to any individual consistent 152.18 with federal law and regulation and state law and rule and to 152.19 issue or recover benefits as appropriate; 152.20 (e) delay or deny payment of all or part of the state and 152.21 federal share of benefits and administrative reimbursement 152.22 according to the procedures set forth in section 256.017; and 152.23 (f) make contracts with and grants to public and private 152.24 agencies and organizations, both profit and nonprofit, and 152.25 individuals, using appropriated funds. 152.26 (2) Inform county agencies, on a timely basis, of changes 152.27 in statute, rule, federal law, regulation, and policy necessary 152.28 to county agency administration of the programs. 152.29 (3) Administer and supervise all child welfare activities; 152.30 promote the enforcement of laws protecting handicapped, 152.31 dependent, neglected and delinquent children, and children born 152.32 to mothers who were not married to the children's fathers at the 152.33 times of the conception nor at the births of the children; 152.34 license and supervise child-caring and child-placing agencies 152.35 and institutions; supervise the care of children in boarding and 152.36 foster homes or in private institutions; and generally perform 153.1 all functions relating to the field of child welfare now vested 153.2 in the state board of control. 153.3 (4) Administer and supervise all noninstitutional service 153.4 to handicapped persons, including those who are visually 153.5 impaired, hearing impaired, or physically impaired or otherwise 153.6 handicapped. The commissioner may provide and contract for the 153.7 care and treatment of qualified indigent children in facilities 153.8 other than those located and available at state hospitals when 153.9 it is not feasible to provide the service in state hospitals. 153.10 (5) Assist and actively cooperate with other departments, 153.11 agencies and institutions, local, state, and federal, by 153.12 performing services in conformity with the purposes of Laws 153.13 1939, chapter 431. 153.14 (6) Act as the agent of and cooperate with the federal 153.15 government in matters of mutual concern relative to and in 153.16 conformity with the provisions of Laws 1939, chapter 431, 153.17 including the administration of any federal funds granted to the 153.18 state to aid in the performance of any functions of the 153.19 commissioner as specified in Laws 1939, chapter 431, and 153.20 including the promulgation of rules making uniformly available 153.21 medical care benefits to all recipients of public assistance, at 153.22 such times as the federal government increases its participation 153.23 in assistance expenditures for medical care to recipients of 153.24 public assistance, the cost thereof to be borne in the same 153.25 proportion as are grants of aid to said recipients. 153.26 (7) Establish and maintain any administrative units 153.27 reasonably necessary for the performance of administrative 153.28 functions common to all divisions of the department. 153.29 (8) Act as designated guardian of both the estate and the 153.30 person of all the wards of the state of Minnesota, whether by 153.31 operation of law or by an order of court, without any further 153.32 act or proceeding whatever, except as to persons committed as 153.33 mentally retarded. 153.34 (9) Act as coordinating referral and informational center 153.35 on requests for service for newly arrived immigrants coming to 153.36 Minnesota. 154.1 (10) The specific enumeration of powers and duties as 154.2 hereinabove set forth shall in no way be construed to be a 154.3 limitation upon the general transfer of powers herein contained. 154.4 (11) Establish county, regional, or statewide schedules of 154.5 maximum fees and charges which may be paid by county agencies 154.6 for medical, dental, surgical, hospital, nursing and nursing 154.7 home care and medicine and medical supplies under all programs 154.8 of medical care provided by the state and for congregate living 154.9 care under the income maintenance programs. 154.10 (12) Have the authority to conduct and administer 154.11 experimental projects to test methods and procedures of 154.12 administering assistance and services to recipients or potential 154.13 recipients of public welfare. To carry out such experimental 154.14 projects, it is further provided that the commissioner of human 154.15 services is authorized to waive the enforcement of existing 154.16 specific statutory program requirements, rules, and standards in 154.17 one or more counties. The order establishing the waiver shall 154.18 provide alternative methods and procedures of administration, 154.19 shall not be in conflict with the basic purposes, coverage, or 154.20 benefits provided by law, and in no event shall the duration of 154.21 a project exceed four years. It is further provided that no 154.22 order establishing an experimental project as authorized by the 154.23 provisions of this section shall become effective until the 154.24 following conditions have been met: 154.25 (a) The proposed comprehensive plan, including estimated 154.26 project costs and the proposed order establishing the waiver, 154.27 shall be filed with the secretary of the senate and chief clerk 154.28 of the house of representatives at least 60 days prior to its 154.29 effective date. 154.30 (b) The secretary of health, education, and welfare of the 154.31 United States has agreed, for the same project, to waive state 154.32 plan requirements relative to statewide uniformity. 154.33 (c) A comprehensive plan, including estimated project 154.34 costs, shall be approved by the legislative advisory commission 154.35 and filed with the commissioner of administration. 154.36 (13) In accordance with federal requirements, establish 155.1 procedures to be followed by local welfare boards in creating 155.2 citizen advisory committees, including procedures for selection 155.3 of committee members. 155.4 (14) Allocate federal fiscal disallowances or sanctions 155.5 which are based on quality control error rates for the aid to 155.6 families with dependent children, medical assistance, or food 155.7 stamp program in the following manner: 155.8 (a) One-half of the total amount of the disallowance shall 155.9 be borne by the county boards responsible for administering the 155.10 programs. For the medical assistance and AFDC programs, 155.11 disallowances shall be shared by each county board in the same 155.12 proportion as that county's expenditures for the sanctioned 155.13 program are to the total of all counties' expenditures for the 155.14 AFDC and medical assistance programs. For the food stamp 155.15 program, sanctions shall be shared by each county board, with 50 155.16 percent of the sanction being distributed to each county in the 155.17 same proportion as that county's administrative costs for food 155.18 stamps are to the total of all food stamp administrative costs 155.19 for all counties, and 50 percent of the sanctions being 155.20 distributed to each county in the same proportion as that 155.21 county's value of food stamp benefits issued are to the total of 155.22 all benefits issued for all counties. Each county shall pay its 155.23 share of the disallowance to the state of Minnesota. When a 155.24 county fails to pay the amount due hereunder, the commissioner 155.25 may deduct the amount from reimbursement otherwise due the 155.26 county, or the attorney general, upon the request of the 155.27 commissioner, may institute civil action to recover the amount 155.28 due. 155.29 (b) Notwithstanding the provisions of paragraph (a), if the 155.30 disallowance results from knowing noncompliance by one or more 155.31 counties with a specific program instruction, and that knowing 155.32 noncompliance is a matter of official county board record, the 155.33 commissioner may require payment or recover from the county or 155.34 counties, in the manner prescribed in paragraph (a), an amount 155.35 equal to the portion of the total disallowance which resulted 155.36 from the noncompliance, and may distribute the balance of the 156.1 disallowance according to paragraph (a). 156.2 (15) Develop and implement special projects that maximize 156.3 reimbursements and result in the recovery of money to the 156.4 state. For the purpose of recovering state money, the 156.5 commissioner may enter into contracts with third parties. Any 156.6 recoveries that result from projects or contracts entered into 156.7 under this paragraph shall be deposited in the state treasury 156.8 and credited to a special account until the balance in the 156.9 account reaches $1,000,000. When the balance in the account 156.10 exceeds $1,000,000, the excess shall be transferred and credited 156.11 to the general fund. All money in the account is appropriated 156.12 to the commissioner for the purposes of this paragraph. 156.13 (16)Have the authority to make direct payments to156.14facilities providing shelter to women and their children156.15pursuant to section 256D.05, subdivision 3. Upon the written156.16request of a shelter facility that has been denied payments156.17under section 256D.05, subdivision 3, the commissioner shall156.18review all relevant evidence and make a determination within 30156.19days of the request for review regarding issuance of direct156.20payments to the shelter facility. Failure to act within 30 days156.21shall be considered a determination not to issue direct payments.156.22(17)Have the authority to establish and enforce the 156.23 following county reporting requirements: 156.24 (a) The commissioner shall establish fiscal and statistical 156.25 reporting requirements necessary to account for the expenditure 156.26 of funds allocated to counties for human services programs. 156.27 When establishing financial and statistical reporting 156.28 requirements, the commissioner shall evaluate all reports, in 156.29 consultation with the counties, to determine if the reports can 156.30 be simplified or the number of reports can be reduced. 156.31 (b) The county board shall submit monthly or quarterly 156.32 reports to the department as required by the commissioner. 156.33 Monthly reports are due no later than 15 working days after the 156.34 end of the month. Quarterly reports are due no later than 30 156.35 calendar days after the end of the quarter, unless the 156.36 commissioner determines that the deadline must be shortened to 157.1 20 calendar days to avoid jeopardizing compliance with federal 157.2 deadlines or risking a loss of federal funding. Only reports 157.3 that are complete, legible, and in the required format shall be 157.4 accepted by the commissioner. 157.5 (c) If the required reports are not received by the 157.6 deadlines established in clause (b), the commissioner may delay 157.7 payments and withhold funds from the county board until the next 157.8 reporting period. When the report is needed to account for the 157.9 use of federal funds and the late report results in a reduction 157.10 in federal funding, the commissioner shall withhold from the 157.11 county boards with late reports an amount equal to the reduction 157.12 in federal funding until full federal funding is received. 157.13 (d) A county board that submits reports that are late, 157.14 illegible, incomplete, or not in the required format for two out 157.15 of three consecutive reporting periods is considered 157.16 noncompliant. When a county board is found to be noncompliant, 157.17 the commissioner shall notify the county board of the reason the 157.18 county board is considered noncompliant and request that the 157.19 county board develop a corrective action plan stating how the 157.20 county board plans to correct the problem. The corrective 157.21 action plan must be submitted to the commissioner within 45 days 157.22 after the date the county board received notice of noncompliance. 157.23 (e) The final deadline for fiscal reports or amendments to 157.24 fiscal reports is one year after the date the report was 157.25 originally due. If the commissioner does not receive a report 157.26 by the final deadline, the county board forfeits the funding 157.27 associated with the report for that reporting period and the 157.28 county board must repay any funds associated with the report 157.29 received for that reporting period. 157.30 (f) The commissioner may not delay payments, withhold 157.31 funds, or require repayment under paragraph (c) or (e) if the 157.32 county demonstrates that the commissioner failed to provide 157.33 appropriate forms, guidelines, and technical assistance to 157.34 enable the county to comply with the requirements. If the 157.35 county board disagrees with an action taken by the commissioner 157.36 under paragraph (c) or (e), the county board may appeal the 158.1 action according to sections 14.57 to 14.69. 158.2 (g) Counties subject to withholding of funds under 158.3 paragraph (c) or forfeiture or repayment of funds under 158.4 paragraph (e) shall not reduce or withhold benefits or services 158.5 to clients to cover costs incurred due to actions taken by the 158.6 commissioner under paragraph (c) or (e). 158.7(18)(17) Allocate federal fiscal disallowances or 158.8 sanctions for audit exceptions when federal fiscal disallowances 158.9 or sanctions are based on a statewide random sample for the 158.10 foster care program under title IV-E of the Social Security Act, 158.11 United States Code, title 42, in direct proportion to each 158.12 county's title IV-E foster care maintenance claim for that 158.13 period. 158.14 Sec. 2. Minnesota Statutes 1996, section 256.031, is 158.15 amended by adding a subdivision to read: 158.16 Subd. 6. [END OF FIELD TRIALS.] Upon agreement with the 158.17 federal government, the field trials of the Minnesota family 158.18 investment plan will end June 30, 1998. Families in the 158.19 comparison group under subdivision 3, paragraph (d), clause (i), 158.20 receiving aid to families with dependent children under sections 158.21 256.72 to 256.87, and STRIDE services under section 256.736 will 158.22 continue in those programs until June 30, 1998. After June 30, 158.23 1998, families who cease receiving assistance under the 158.24 Minnesota family investment plan and comparison group families 158.25 who cease receiving assistance under AFDC and STRIDE who are 158.26 eligible for the Minnesota family investment program-statewide 158.27 (MFIP-S), medical assistance, general assistance medical care, 158.28 or the food stamp program shall be placed with their consent on 158.29 the programs for which they are eligible. 158.30 Sec. 3. Minnesota Statutes 1996, section 256.033, 158.31 subdivision 1, is amended to read: 158.32 Subdivision 1. [ELIGIBILITY CONDITIONS.] (a) A family is 158.33 entitled to assistance under the Minnesota family investment 158.34 plan if the family is assigned to a test group in the evaluation 158.35 as provided in section 256.031, subdivision 3, paragraph (d), 158.36 and: 159.1 (1) the family meets the definition of assistance unit 159.2 under section 256.032, subdivision 1a; 159.3 (2) the family's resources not excluded under subdivision 3 159.4 do not exceed $2,000; 159.5 (3) the family can verify citizenship or lawful resident 159.6 alien status; and 159.7 (4) the family provides or applies for a social security 159.8 number for each member of the family receiving assistance under 159.9 the family investment plan. 159.10 (b) A family is eligible for the family investment plan if 159.11 the net income is less than the transitional standard as defined 159.12 in section 256.032, subdivision 13, for that size and 159.13 composition of family. In determining available net income, the 159.14 provisions in subdivision 2 shall apply. 159.15 (c) Upon application, a family is initially eligible for 159.16 the family investment plan if the family's gross income does not 159.17 exceed the applicable transitional standard of assistance for 159.18 that family as defined under section 256.032, subdivision 13, 159.19 after deducting: 159.20 (1) 18 percent to cover taxes; and 159.21 (2) actual dependent care costs up to the maximum 159.22 disregarded under United States Code, title 42, section 159.23 602(a)(8)(A)(iii); and159.24(3) $50 of child support collected in that month. 159.25 (d) A family can remain eligible for the program if: 159.26 (1) it meets the conditions in subdivision 1a; and 159.27 (2) its income is below the transitional standard in 159.28 section 256.032, subdivision 13, allowing for income exclusions 159.29 in subdivision 2 and after applying the family investment plan 159.30 treatment of earnings under subdivision 1a. 159.31 Sec. 4. Minnesota Statutes 1996, section 256.033, 159.32 subdivision 1a, is amended to read: 159.33 Subd. 1a. [TREATMENT OF INCOME FOR THE PURPOSES OF 159.34 CONTINUED ELIGIBILITY.] To help families during their transition 159.35 from the Minnesota family investment plan to self-sufficiency, 159.36 the following income supports are available: 160.1 (a) The $30 and one-third and $90 disregards allowed under 160.2 section 256.74, subdivision 1, and the 20 percent earned income 160.3 deduction allowed under the federal Food Stamp Act of 1977, as 160.4 amended, are replaced with a single disregard of not less than 160.5 35 percent of gross earned income to cover taxes and other 160.6 work-related expenses and to reward the earning of income. This 160.7 single disregard is available for the entire time a family 160.8 receives assistance through the Minnesota family investment plan. 160.9 (b) The dependent care deduction, as prescribed under 160.10 section 256.74, subdivision 1, and United States Code, title 7, 160.11 section 2014(e), is replaced for families with earned income who 160.12 need assistance with dependent care with an entitlement to a 160.13 dependent care subsidy from money appropriated for the Minnesota 160.14 family investment plan. 160.15 (c) The family wage level, as defined in section 256.032, 160.16 subdivision 8, allows families to supplement earned income with 160.17 assistance received through the Minnesota family investment 160.18 plan. If, after earnings are adjusted according to the 160.19 disregard described in paragraph (a), earnings have raised 160.20 family income to a level equal to or greater than the family 160.21 wage level, the amount of assistance received through the 160.22 Minnesota family investment plan must be reduced. 160.23(d) The first $50 of any timely support payment for a month160.24received by the public agency responsible for child support160.25enforcement shall be paid to the family and disregarded in160.26determining eligibility and the amount of assistance in160.27accordance with United States Code, title 42, sections160.28602(a)(8)(A)(vi) and 657(b)(1). This paragraph applies160.29regardless of whether the caregiver is in transitional status,160.30is exempt from developing or complying with the terms of a160.31family support agreement, or has had a sanction imposed under160.32subdivision 3.160.33 Sec. 5. Minnesota Statutes 1996, section 256.74, 160.34 subdivision 1, is amended to read: 160.35 Subdivision 1. [AMOUNT.] The amount of assistance which 160.36 shall be granted to or on behalf of any dependent child and 161.1 parent or other needy eligible relative caring for the dependent 161.2 child shall be determined by the county agencyin accordance161.3withaccording to rules promulgated by the commissioner and 161.4 shall be sufficient, when added to all other income and support 161.5 available to the child, to provide the child with a reasonable 161.6 subsistence compatible with decency and health. To the extent 161.7 permissible under federal law, an eligible relative caretaker or 161.8 parent shall have the option to include in the assistance unit 161.9 the needs, income, and resources of the following essential 161.10 persons who are not otherwise eligible for AFDC because they do 161.11 not qualify as a caretaker or as a dependent child: 161.12 (1) a parent or relative caretaker's spouse and 161.13 stepchildren; or 161.14 (2) blood or legally adopted relatives who are under the 161.15 age of 18 or under the age of 19 years who are regularly 161.16 attending as a full-time student, and are expected to complete 161.17 before or during the month of their 19th birthday, a high school 161.18 or secondary level course of vocational or technical training 161.19 designed to prepare students for gainful employment. The amount 161.20 shall be based on the method of budgeting required in Public Law 161.21 Number 97-35, section 2315, United States Code, title 42, 161.22 section 602, as amended and federal regulations at Code of 161.23 Federal Regulations, title 45, section 233. Nonrecurring lump 161.24 sum income received by an AFDC family must be budgeted in the 161.25 normal retrospective cycle. When the family's income, after 161.26 application of the applicable disregards, exceeds the need 161.27 standard for the family because of receipt of earned or unearned 161.28 lump sum income, the family will be ineligible for the full 161.29 number of months derived by dividing the sum of the lump sum 161.30 income and other income by the monthly need standard for a 161.31 family of that size. Any income remaining from this calculation 161.32 is income in the first month following the period of 161.33 ineligibility. The first month of ineligibility is the payment 161.34 month that corresponds with the budget month in which the lump 161.35 sum income was received. For purposes of applying the lump sum 161.36 provision, family includes those persons defined in the Code of 162.1 Federal Regulations, title 45, section 233.20(a)(3)(ii)(F). A 162.2 period of ineligibility must be shortened when the standard of 162.3 need increases and the amount the family would have received 162.4 also changes, an amount is documented as stolen, an amount is 162.5 unavailable because a member of the family left the household 162.6 with that amount and has not returned, an amount is paid by the 162.7 family during the period of ineligibility to cover a cost that 162.8 would otherwise qualify for emergency assistance, or the family 162.9 incurs and pays for medical expenses which would have been 162.10 covered by medical assistance if eligibility existed. In making 162.11 its determination the county agency shall disregard the 162.12 following from family income: 162.13 (1) all the earned income of each dependent child applying 162.14 for AFDC if the child is a full-time student and all of the 162.15 earned income of each dependent child receiving AFDC who is a 162.16 full-time student or is a part-time student who is not a 162.17 full-time employee. A student is one who is attending a school, 162.18 college, or university, or a course of vocational or technical 162.19 training designed to fit students for gainful employment and 162.20 includes a participant in the Job Corps program under the Job 162.21 Training Partnership Act (JTPA). The county agency shall also 162.22 disregard all income of each dependent child applying for or 162.23 receiving AFDC when the income is derived from a program carried 162.24 out under JTPA, except that disregard of earned income may not 162.25 exceed six months per calendar year; 162.26 (2) all educational assistance, except the county agency 162.27 shall count graduate student teaching assistantships, 162.28 fellowships, and other similar paid work as earned income and, 162.29 after allowing deductions for any unmet and necessary 162.30 educational expenses, shall count scholarships or grants awarded 162.31 to graduate students that do not require teaching or research as 162.32 unearned income; 162.33 (3) the first $90 of each individual's earned income. For 162.34 self-employed persons, the expenses directly related to 162.35 producing goods and services and without which the goods and 162.36 services could not be produced shall be disregarded 163.1pursuantaccording to rules promulgated by the commissioner; 163.2 (4) thirty dollars plus one-third of each individual's 163.3 earned income for individuals found otherwise eligible to 163.4 receive aid or who have received aid in one of the four months 163.5 before the month of application. With respect to any month, the 163.6 county welfare agency shall not disregard under this clause any 163.7 earned income of any person who has: (a) reduced earned income 163.8 without good cause within 30 days preceding any month in which 163.9 an assistance payment is made; (b) refused without good cause to 163.10 accept an offer of suitable employment;(c) left employment or163.11reduced earnings without good cause and applied for assistance163.12so as to be able later to return to employment with the163.13advantage of the income disregard;or(d)(c) failed without 163.14 good cause to make a timely report of earned incomein163.15accordance withaccording to rules promulgated by the 163.16 commissioner of human services. Persons who are already 163.17 employed and who apply for assistance shall have their needs 163.18 computed with full account taken of their earned and other 163.19 income. If earned and other income of the family is less than 163.20 need, as determined on the basis of public assistance standards, 163.21 the county agency shall determine the amount of the grant by 163.22 applying the disregard of income provisions. The county agency 163.23 shall not disregard earned income for persons in a family if the 163.24 total monthly earned and other income exceeds their needs, 163.25 unless for any one of the four preceding months their needs were 163.26 met in whole or in part by a grant payment. The disregard of163.27$30 and one-third of earned income in this clause shall be163.28applied to the individual's income for a period not to exceed163.29four consecutive months. Any month in which the individual163.30loses this disregard because of the provisions of subclauses (a)163.31to (d) shall be considered as one of the four months. An163.32additional $30 work incentive must be available for an163.33eight-month period beginning in the month following the last163.34month of the combined $30 and one-third work incentive. This163.35period must be in effect whether or not the person has earned163.36income or is eligible for AFDC. To again qualify for the earned164.1income disregards under this clause, the individual must not be164.2a recipient of aid for a period of 12 consecutive months. When164.3an assistance unit becomes ineligible for aid due to the fact164.4that these disregards are no longer applied to income, the164.5assistance unit shall be eligible for medical assistance164.6benefits for a 12-month period beginning with the first month of164.7AFDC ineligibility; 164.8 (5) an amount equal to the actual expenditures for the care 164.9 of each dependent child or incapacitated individual living in 164.10 the same home and receiving aid, not to exceed: (a) $175 for 164.11 each individual age two and older, and $200 for each individual 164.12 under the age of two. The dependent care disregard must be 164.13 applied after all other disregards under this subdivision have 164.14 been applied; 164.15 (6)the first $50 per assistance unit of the monthly164.16support obligation collected by the support and recovery (IV-D)164.17unit. The first $50 of periodic support payments collected by164.18the public authority responsible for child support enforcement164.19from a person with a legal obligation to pay support for a164.20member of the assistance unit must be paid to the assistance164.21unit within 15 days after the end of the month in which the164.22collection of the periodic support payments occurred and must be164.23disregarded when determining the amount of assistance. A review164.24of a payment decision under this clause must be requested within164.2530 days after receiving the notice of collection of assigned164.26support or within 90 days after receiving the notice if good164.27cause can be shown for not making the request within the 30-day164.28limit;164.29(7)that portion of an insurance settlement earmarked and 164.30 used to pay medical expenses, funeral and burial costs, or to 164.31 repair or replace insured property; and 164.32(8)(7) all earned income tax credit payments received by 164.33 the family as a refund of federal income taxes or made as 164.34 advance payments by an employer. 164.35 All payments madepursuantaccording to a court order for 164.36 the support of children not living in the assistance unit's 165.1 household shall be disregarded from the income of the person 165.2 with the legal obligation to pay support, provided that, if 165.3 there has been a change in the financial circumstances of the 165.4 person with the legal obligation to pay support since the 165.5 support order was entered, the person with the legal obligation 165.6 to pay support has petitioned for a modification of the support 165.7 order. 165.8 Sec. 6. Minnesota Statutes 1996, section 256.736, 165.9 subdivision 3a, is amended to read: 165.10 Subd. 3a. [PARTICIPATION.] (a)Except as provided under165.11paragraphs (b) and (c),Participation in employment and training 165.12 services under this section is limited to the following 165.13 recipients: 165.14 (1) caretakers who are required to participate in a job 165.15 search under subdivision 14; 165.16 (2) custodial parents who are subject to the school 165.17 attendance or case management participation requirements under 165.18 subdivision 3b; 165.19(3) caretakers whose participation in employment and165.20training services began prior to May 1, 1990, if the caretaker's165.21AFDC eligibility has not been interrupted for 30 days or more165.22and the caretaker's employability development plan has not been165.23completed;165.24(4) recipients who are members of a family in which the165.25youngest child is within two years of being ineligible for AFDC165.26due to age;165.27(5) custodial parents under the age of 24 who: (i) have165.28not completed a high school education and who, at the time of165.29application for AFDC, were not enrolled in high school or in a165.30high school equivalency program; or (ii) have had little or no165.31work experience in the preceding year;165.32(6) recipients who have received AFDC for 36 or more months165.33out of the last 60 months;165.34(7) recipients who are participants in the self-employment165.35investment demonstration project under section 268.95; and165.36(8) recipients who participate in the new chance research166.1and demonstration project under contract with the department of166.2human servicesand 166.3 (3) after the county agency assures the availability of 166.4 employment and training services for recipients identified under 166.5 clauses (1) and (2), and to the extent of available resources, 166.6 any other AFDC recipient. 166.7 (b)If the commissioner determines that participation of166.8persons listed in paragraph (a) in employment and training166.9services is insufficient either to meet federal performance166.10targets or to fully utilize funds appropriated under this166.11section, the commissioner may, after notifying the chairs of the166.12senate family services committee, the house health and human166.13services committee, the family services division of the senate166.14family services and health care committees, and the human166.15services division of the house health and human services166.16committee, permit additional groups of recipients to participate166.17until the next meeting of the legislative advisory commission,166.18after which the additional groups may continue to enroll for166.19participation unless the legislative advisory commission166.20disapproves the continued enrollment. The commissioner shall166.21allow participation of additional groups in the following order166.22only as needed to meet performance targets or fully utilize166.23funding for employment and training services under this section:166.24(1) recipients who have received 24 or more months of AFDC166.25out of the previous 48 months; and166.26(2) recipients who have not completed a high school166.27education or a high school equivalency program.166.28(c) To the extent of money appropriated specifically for166.29this paragraph, the commissioner may permit AFDC caretakers who166.30are not eligible for participation in employment and training166.31services under the provisions of paragraph (a) or (b) to166.32participate. Money must be allocated to county agencies based166.33on the county's percentage of participants statewide in services166.34under this section in the prior calendar year. Caretakers must166.35be selected on a first-come, first-served basis from a waiting166.36list of caretakers who volunteer to participate. The167.1commissioner may, on a quarterly basis, reallocate unused167.2allocations to county agencies that have sufficient volunteers.167.3If funding under this paragraph is discontinued in future fiscal167.4years, caretakers who began participating under this paragraph167.5must be deemed eligible under paragraph (a), clause (3).167.6(d)Participants who are eligible and enroll in the STRIDE 167.7 program under one of the categories of this subdivision are 167.8 required to cooperate with the assessment and employability plan 167.9 development and to meet the terms of their employability plan. 167.10 Failure to comply, without good cause, shall result in the 167.11 imposition of sanctions as specified in subdivision 4, clause 167.12 (6). 167.13 Sec. 7. Minnesota Statutes 1996, section 256.82, 167.14 subdivision 2, is amended to read: 167.15 Subd. 2. [FOSTER CARE MAINTENANCE PAYMENTS.] 167.16 Notwithstanding subdivision 1, for the purposes of foster care 167.17 maintenance payments under Title IV-E of the federal Social 167.18 Security Act, United States Code, title 42, sections 670 to 676, 167.19 during the period beginning July 1, 1985, and ending December 167.20 31, 1985, the county paying the maintenance costs shall be 167.21 reimbursed for the costs from those federal funds available for 167.22 that purpose together with an amount of state funds equal to a 167.23 percentage of the difference between the total cost and the 167.24 federal funds made available for payment. This percentage shall 167.25 not exceed the percentage specified in subdivision 1 for the aid 167.26 to families with dependent children program. In the event that 167.27 the state appropriation for this purpose is less than the state 167.28 percentage set in subdivision 1, the reimbursement shall be 167.29 ratably reduced to the county. Beginning January 1, 1986, for 167.30 the purpose of foster care maintenance payments under Title IV-E 167.31 of the Social Security Act, United States Code, title 42, 167.32 sections 670 to 676, the county paying the maintenance costs 167.33 must be reimbursed for the costs from the federal money 167.34 available for the purpose. Beginning July 1, 1997, for the 167.35 purposes of determining a child's eligibility under title IV-E 167.36 of the Social Security Act, the placing agency shall use AFDC 168.1 requirements as specified in federal law. 168.2 Sec. 8. Minnesota Statutes 1996, section 256.9354, is 168.3 amended by adding a subdivision to read: 168.4 Subd. 8. [SPONSOR'S INCOME AND RESOURCES DEEMED 168.5 AVAILABLE.] When determining eligibility for any federal or 168.6 state benefits under sections 256.9351 to 256.9363 and 256.9366 168.7 to 256.9369, the income and resources of all noncitizens shall 168.8 be deemed to include their sponsors' income and resources as 168.9 defined in the Personal Responsibility and Work Opportunity 168.10 Reconciliation Act of 1996, title IV, Public Law Number 104-193, 168.11 sections 421 and 422. 168.12 Sec. 9. Minnesota Statutes 1996, section 256B.055, 168.13 subdivision 3, is amended to read: 168.14 Subd. 3. [AFDC FAMILIES.] Until January 1, 1998, medical 168.15 assistance may be paid for a person who is eligible for or 168.16 receiving, or who would be eligible for, except for excess 168.17 income or assets, public assistance under the aid to families 168.18 with dependent children program in effect as of July 16, 1996, 168.19 as required by the Personal Responsibility and Work Opportunity 168.20 Reconciliation Act of 1996 (PRWORA), Public Law Number 104-193 168.21 unless a federal waiver is received to permit automatic 168.22 eligibility of AFDC recipients for medical assistance. 168.23 Sec. 10. Minnesota Statutes 1996, section 256B.055, is 168.24 amended by adding a subdivision to read: 168.25 Subd. 3a. [MFIP-S FAMILIES; FAMILIES ELIGIBLE UNDER PRIOR 168.26 AFDC RULES.] (a) Beginning January 1, 1998, or on the date that 168.27 MFIP-S is implemented in counties which choose the MFIP-S early 168.28 implementation option under section 256J.50, medical assistance 168.29 may be paid for a person receiving public assistance under the 168.30 MFIP-S program. 168.31 (b) Beginning January 1, 1998, or on the date that MFIP-S 168.32 is implemented in counties which elect to implement MFIP-S 168.33 earlier under section 256J.50, medical assistance may be paid 168.34 for a person who would have been eligible for public assistance 168.35 under the income and resource standards and deprivation 168.36 requirements, or who would have been eligible but for excess 169.1 income or assets, under the state's AFDC plan in effect as of 169.2 July 16, 1996, as required by the Personal Responsibility and 169.3 Work Opportunity Reconciliation Act of 1996 (PRWORA), Public Law 169.4 Number 104-193. 169.5 Sec. 11. Minnesota Statutes 1996, section 256B.055, 169.6 subdivision 5, is amended to read: 169.7 Subd. 5. [PREGNANT WOMEN; DEPENDENT UNBORN CHILD.] Medical 169.8 assistance may be paid for a pregnant woman who has written 169.9 verification of a positive pregnancy test from a physician or 169.10 licensed registered nurse, who meets the other eligibility 169.11 criteria of this section and who would be categorically eligible 169.12 for assistance under theaid to families with dependent children169.13programstate's AFDC plan in effect as of July 16, 1996, as 169.14 required by the Personal Responsibility and Work Opportunity 169.15 Reconciliation Act of 1996 (PRWORA), Public Law Number 104-193, 169.16 if the child had been born and was living with the woman. For 169.17 purposes of this subdivision, a woman is considered pregnant for 169.18 60 days postpartum. 169.19 Sec. 12. Minnesota Statutes 1996, section 256B.056, 169.20 subdivision 1a, is amended to read: 169.21 Subd. 1a. [INCOME AND ASSETS GENERALLY.] Unless 169.22 specifically required by state law or rule or federal law or 169.23 regulation, the methodologies used in counting income and assets 169.24 to determine eligibility for medical assistance for persons 169.25 whose eligibility category is based on blindness, disability, or 169.26 age of 65 or more years, the methodologies for the supplemental 169.27 security income program shall be used, except that payments made 169.28pursuantaccording to a court order for the support of children 169.29 shall be excluded from income in an amount not to exceed the 169.30 difference between the applicable income standard used in the 169.31 state's medical assistance program for aged, blind, and disabled 169.32 persons and the applicable income standard used in the state's 169.33 medical assistance program for families with children. 169.34 Exclusion of court-ordered child support payments is subject to 169.35 the condition that if there has been a change in the financial 169.36 circumstances of the person with the legal obligation to pay 170.1 support since the support order was entered, the person with the 170.2 legal obligation to pay support has petitioned for modification 170.3 of the support order. For families and children, which includes 170.4 all other eligibility categories, the methodologiesfor the aid170.5to families with dependent children program under section 256.73170.6 under the state's AFDC plan in effect as of July 16, 1996, as 170.7 required by the Personal Responsibility and Work Opportunity 170.8 Reconciliation Act of 1996 (PRWORA), Public Law Number 104-193, 170.9 shall be used. Effective upon federal approval, in-kind 170.10 contributions to, and payments made on behalf of, a recipient, 170.11 by an obligor, in satisfaction of or in addition to a temporary 170.12 or permanent order for child support or maintenance, shall be 170.13 considered income to the recipient. For these purposes, a 170.14 "methodology" does not include an asset or income standard, or 170.15 accounting method, or method of determining effective dates. 170.16 Sec. 13. Minnesota Statutes 1996, section 256B.056, 170.17 subdivision 3, is amended to read: 170.18 Subd. 3. [ASSET LIMITATIONS.] To be eligible for medical 170.19 assistance, a person must not individually own more than $3,000 170.20 in assets, or if a member of a household with two family 170.21 members,(husband and wife, or parent and child), the household 170.22 must not own more than $6,000 in assets, plus $200 for each 170.23 additional legal dependent. In addition to these maximum 170.24 amounts, an eligible individual or family may accrue interest on 170.25 these amounts, but they must be reduced to the maximum at the 170.26 time of an eligibility redetermination. The accumulation of the 170.27 clothing and personal needs allowancepursuantaccording to 170.28 section 256B.35 must also be reduced to the maximum at the time 170.29 of the eligibility redetermination. The value of assets that 170.30 are not considered in determining eligibility for medical 170.31 assistance is the value of those assetsthat are excluded by the170.32aid to families with dependent children programexcluded under 170.33 the AFDC state plan as of July 16, 1996, as required by the 170.34 Personal Responsibility and Work Opportunity Reconciliation Act 170.35 of 1996 (PRWORA), Public Law Number 104-193, for families and 170.36 children, and the supplemental security income program for aged, 171.1 blind, and disabled persons, with the following exceptions: 171.2 (a) Household goods and personal effects are not considered. 171.3 (b) Capital and operating assets of a trade or business 171.4 that the local agency determines are necessary to the person's 171.5 ability to earn an income are not considered. 171.6 (c) Motor vehicles are excluded to the same extent excluded 171.7 by the supplemental security income program. 171.8 (d) Assets designated as burial expenses are excluded to 171.9 the same extent excluded by the supplemental security income 171.10 program. 171.11 Sec. 14. Minnesota Statutes 1996, section 256B.056, 171.12 subdivision 4, is amended to read: 171.13 Subd. 4. [INCOME.] To be eligible for medical assistance, 171.14 a person must not have, or anticipate receiving, semiannual 171.15 income in excess of 120 percent of the income standards by 171.16 family size usedinunder the aid to families with dependent 171.17 childrenprogramstate plan as of July 16, 1996, as required by 171.18 the Personal Responsibility and Work Opportunity Reconciliation 171.19 Act of 1996 (PRWORA), Public Law Number 104-193, except that 171.20 families and children may have an income up to 133-1/3 percent 171.21 of the AFDC income standard. In computing income to determine 171.22 eligibility of persons who are not residents of long-term care 171.23 facilities, the commissioner shall disregard increases in income 171.24 as required by Public Law Numbers 94-566, section 503; 99-272; 171.25 and 99-509. Veterans aid and attendance benefits are considered 171.26 income to the recipient. 171.27 Sec. 15. Minnesota Statutes 1996, section 256B.057, 171.28 subdivision 1, is amended to read: 171.29 Subdivision 1. [PREGNANT WOMEN AND INFANTS.] (a) An infant 171.30 less than one year of age or a pregnant woman who has written 171.31 verification of a positive pregnancy test from a physician or 171.32 licensed registered nurse, is eligible for medical assistance if 171.33 countable family income is equal to or less than 275 percent of 171.34 the federal poverty guideline for the same family size. For 171.35 purposes of this subdivision, "countable family income" means 171.36 the amount of income considered available using the methodology 172.1 of the AFDC program under the state's AFDC plan as of July 16, 172.2 1996, as required by the Personal Responsibility and Work 172.3 Opportunity Reconciliation Act of 1996 (PRWORA), Public Law 172.4 Number 104-193, except for the earned income disregard and 172.5 employment deductions. An amount equal to the amount of earned 172.6 income exceeding 275 percent of the federal poverty guideline, 172.7 up to a maximum of the amount by which the combined total of 185 172.8 percent of the federal poverty guideline plus the earned income 172.9 disregards and deductions of the AFDC program under the state's 172.10 AFDC plan as of July 16, 1996, as required by the Personal 172.11 Responsibility and Work Opportunity Reconciliation Act of 1996 172.12 (PRWORA), Public Law Number 104-193, exceeds 275 percent of the 172.13 federal poverty guideline will be deducted for pregnant women 172.14 and infants less than one year of age. Eligibility for a 172.15 pregnant woman or infant less than one year of age under this 172.16 subdivision must be determined without regard to asset standards 172.17 established in section 256B.056, subdivision 3. 172.18 (b) An infant born on or after January 1, 1991, to a woman 172.19 who was eligible for and receiving medical assistance on the 172.20 date of the child's birth shall continue to be eligible for 172.21 medical assistance without redetermination until the child's 172.22 first birthday, as long as the child remains in the woman's 172.23 household. 172.24 Sec. 16. Minnesota Statutes 1996, section 256B.057, 172.25 subdivision 1b, is amended to read: 172.26 Subd. 1b. [PREGNANT WOMEN AND INFANTS; EXPANSION.] (a) 172.27 This subdivision supersedes subdivision 1 as long as the 172.28 Minnesota health care reform waiver remains in effect. When the 172.29 waiver expires, the commissioner of human services shall publish 172.30 a notice in the State Register and notify the revisor of 172.31 statutes. An infant less than two years of age or a pregnant 172.32 woman who has written verification of a positive pregnancy test 172.33 from a physician or licensed registered nurse, is eligible for 172.34 medical assistance if countable family income is equal to or 172.35 less than 275 percent of the federal poverty guideline for the 172.36 same family size. For purposes of this subdivision, "countable 173.1 family income" means the amount of income considered available 173.2 using the methodology of the AFDC program under the state's AFDC 173.3 plan as of July 16, 1996, as required by the Personal 173.4 Responsibility and Work Opportunity Reconciliation Act of 1996 173.5 (PRWORA), Public Law Number 104-193, except for the earned 173.6 income disregard and employment deductions. An amount equal to 173.7 the amount of earned income exceeding 275 percent of the federal 173.8 poverty guideline, up to a maximum of the amount by which the 173.9 combined total of 185 percent of the federal poverty guideline 173.10 plus the earned income disregards and deductions of the AFDC 173.11 program under the state's AFDC plan as of July 16, 1996, as 173.12 required by the Personal Responsibility and Work Opportunity 173.13 Reconciliation Act of 1996 (PRWORA), Public Law Number 104-193, 173.14 exceeds 275 percent of the federal poverty guideline will be 173.15 deducted for pregnant women and infants less than two years of 173.16 age. Eligibility for a pregnant woman or infant less than two 173.17 years of age under this subdivision must be determined without 173.18 regard to asset standards established in section 256B.056, 173.19 subdivision 3. 173.20 (b) An infant born on or after January 1, 1991, to a woman 173.21 who was eligible for and receiving medical assistance on the 173.22 date of the child's birth shall continue to be eligible for 173.23 medical assistance without redetermination until the child's 173.24 second birthday, as long as the child remains in the woman's 173.25 household. 173.26 Sec. 17. Minnesota Statutes 1996, section 256B.057, 173.27 subdivision 2b, is amended to read: 173.28 Subd. 2b. [NO ASSET TEST FOR CHILDREN AND THEIR PARENTS; 173.29 EXPANSION.] This subdivision supersedes subdivision 2a as long 173.30 as the Minnesota health care reform waiver remains in effect. 173.31 When the waiver expires, this subdivision expires and the 173.32 commissioner of human services shall publish a notice in the 173.33 State Register and notify the revisor of statutes. Eligibility 173.34 for medical assistance for a person under age 21, and the 173.35 person's parents or relative caretakers as definedin the aid to173.36families with dependent children program according to chapter174.1256, who are eligible under section 256B.055, subdivision174.23under the state's AFDC plan in effect as of July 16, 1996, as 174.3 required by the Personal Responsibility and Work Opportunity 174.4 Reconciliation Act of 1996 (PRWORA), Public Law Number 104-193, 174.5 and who live in the same household as the person eligible under 174.6 age 21, must be determined without regard to asset standards 174.7 established in section 256B.056. 174.8 Sec. 18. Minnesota Statutes 1996, section 256B.06, 174.9 subdivision 4, is amended to read: 174.10 Subd. 4. [CITIZENSHIP REQUIREMENTS.] (a) Eligibility for 174.11 medical assistance is limited to citizens of the United 174.12 Statesand aliens lawfully admitted for permanent residence or174.13otherwise permanently residing in the United States under the174.14color of law. Aliens who are seeking legalization under the174.15Immigration Reform and Control Act of 1986, Public Law Number174.1699-603, who are under age 18, over age 65, blind, disabled, or174.17Cuban or Haitian, and who meet the eligibility requirements of174.18medical assistance under subdivision 1 and sections 256B.055 to174.19256B.062 are eligible to receive medical assistance. Pregnant174.20women who are aliens seeking legalization under the Immigration174.21Reform and Control Act of 1986, Public Law Number 99-603, and174.22who meet the eligibility requirements of medical assistance174.23under subdivision 1 are eligible for payment of care and174.24services through the period of pregnancy and six weeks174.25postpartum. Payment shall also be made for care and services174.26that are furnished to an alien, regardless of immigration174.27status, who otherwise meets the eligibility requirements of this174.28section if such care and services are necessary for the174.29treatment of an emergency medical condition, except for organ174.30transplants and related care and services. For purposes of this174.31subdivision, the term "emergency medical condition" means a174.32medical condition, including labor and delivery, that if not174.33immediately treated could cause a person physical or mental174.34disability, continuation of severe pain, or death., qualified 174.35 noncitizens as defined in this subdivision, and other persons 174.36 residing lawfully in the United States. 175.1 (b) "Qualified noncitizen" means a person who meets one of 175.2 the following immigration criteria: 175.3 (1) admitted for lawful permanent residence according to 175.4 United States Code, title 8; 175.5 (2) admitted to the United States as a refugee according to 175.6 United States Code, title 8, section 1157; 175.7 (3) granted asylum according to United States Code, title 175.8 8, section 1158; 175.9 (4) granted withholding of deportation according to United 175.10 States Code, title 8, section 1253(h); 175.11 (5) paroled for a period of at least one year according to 175.12 United States Code, title 8, section 1182(d)(5); 175.13 (6) granted conditional entrant status according to United 175.14 States Code, title 8, section 1153(a)(7); or 175.15 (7) determined to be a battered noncitizen by the United 175.16 States Attorney General according to the Illegal Immigration 175.17 Reform and Immigrant Responsibility Act of 1996, title V of the 175.18 Omnibus Consolidated Appropriations Bill, Public Law Number 175.19 104-200. 175.20 (c) All qualified noncitizens who were residing in the 175.21 United States before August 22, 1996, who otherwise meet the 175.22 eligibility requirements of chapter 256B, are eligible for 175.23 medical assistance with federal financial participation. 175.24 (d) All qualified noncitizens who entered the United States 175.25 on or after August 22, 1996, and who otherwise meet the 175.26 eligibility requirements of chapter 256B, are eligible for 175.27 medical assistance with federal financial participation through 175.28 November 30, 1996. 175.29 Beginning December 1, 1996, qualified noncitizens who 175.30 entered the United States on or after August 22, 1996, and who 175.31 otherwise meet the eligibility requirements of chapter 256B are 175.32 eligible for medical assistance with federal participation for 175.33 five years if they meet one of the following criteria: 175.34 (i) refugees admitted to the United States according to 175.35 United States Code, title 8, section 1157; 175.36 (ii) persons granted asylum according to United States 176.1 Code, title 8, section 1158; 176.2 (iii) persons granted withholding of deportation according 176.3 to United States code, title 8, section 1253(h); 176.4 (iv) veterans of the United States Armed Forces with an 176.5 honorable discharge for a reason other than noncitizen status, 176.6 their spouses and unmarried minor dependent children; or 176.7 (v) persons on active duty in the United States Armed 176.8 Forces, other than for training, their spouses and unmarried 176.9 minor dependent children. 176.10 Beginning December 1, 1996, qualified noncitizens who do 176.11 not meet one of the criteria in items (i) to (v) are eligible 176.12 for medical assistance without federal financial participation 176.13 as described in paragraph (j). 176.14 (e) Noncitizens who are not qualified noncitizens as 176.15 defined in paragraph (b), who are lawfully residing in the 176.16 United States and who otherwise meet the eligibility 176.17 requirements of chapter 256B, are eligible for medical 176.18 assistance under clauses (1) to (3). These individuals must 176.19 cooperate with the Immigration and Naturalization Service to 176.20 pursue any applicable immigration status, including citizenship, 176.21 that would qualify them for medical assistance with federal 176.22 financial participation. 176.23 (1) Persons who were medical assistance recipients on 176.24 August 22, 1996, are eligible for medical assistance with 176.25 federal financial participation through December 31, 1996. 176.26 (2) Beginning January 1, 1997, persons described in clause 176.27 (1) are eligible for medical assistance without federal 176.28 financial participation as described in paragraph (j). 176.29 (3) Beginning December 1, 1996, persons residing in the 176.30 United States prior to August 22, 1996, who were not receiving 176.31 medical assistance and persons who arrived on or after August 176.32 22, 1996, are eligible for medical assistance without federal 176.33 financial participation as described in paragraph (j). 176.34 (f) Nonimmigrants are eligible for the benefits as provided 176.35 in paragraphs (h) and (i). For purposes of this subdivision, a 176.36 "nonimmigrant" is a person in one of the classes listed in 177.1 United States Code, title 8, section 1101(a)(15). 177.2 (g) When determining eligibility for any federal or state 177.3 benefits under this subdivision, the income and resources of all 177.4 noncitizens shall be deemed to include their sponsors' income 177.5 and resources as required under the Personal Responsibility and 177.6 Work Opportunity Reconciliation Act of 1996, title IV, Public 177.7 Law Number 104-193, sections 421 and 422. 177.8 (h) Payment shall also be made for care and services that 177.9 are furnished to noncitizens, regardless of immigration status, 177.10 who otherwise meet the eligibility requirements of chapter 256B, 177.11 if such care and services are necessary for the treatment of an 177.12 emergency medical condition, except for organ transplants and 177.13 related care and services and routine prenatal care. For 177.14 purposes of this subdivision, the term "emergency medical 177.15 condition" means a medical condition that meets the requirements 177.16 of United States Code, title 42, section 1396b(v). 177.17 (i) Pregnant noncitizens who are undocumented or 177.18 nonimmigrants, who otherwise meet the eligibility requirements 177.19 of chapter 256B, are eligible for medical assistance payment 177.20 without federal financial participation for care and services 177.21 through the period of pregnancy, except for labor and delivery, 177.22 and 60 days postpartum. 177.23 (j) Qualified noncitizens as described in paragraph (d), 177.24 and all other noncitizens lawfully residing in the United States 177.25 as described in paragraph (e), who are ineligible for medical 177.26 assistance with federal financial participation and who 177.27 otherwise meet the eligibility requirements of chapter 256B and 177.28 of this paragraph, are eligible for medical assistance without 177.29 federal financial participation. Qualified noncitizens as 177.30 described in paragraph (d) are only eligible for medical 177.31 assistance without federal financial participation for five 177.32 years from their date of entry into the United States. 177.33 (k) The commissioner shall submit to the legislature by 177.34 December 31, 1998, a report on the number of recipients and cost 177.35 of coverage of care and services made according to paragraphs 177.36 (i) and (j). 178.1 Sec. 19. Minnesota Statutes 1996, section 256B.062, is 178.2 amended to read: 178.3 256B.062 [CONTINUED ELIGIBILITY.] 178.4 Medical assistance may be paid for persons who received aid 178.5 to families with dependent children in at least three of the six 178.6 months preceding the month in which the person became ineligible 178.7 for aid to families with dependent children, if the 178.8 ineligibility was due to an increase in hours of employment or 178.9 employment income or due to the loss of an earned income 178.10 disregard. A person who is eligible for extended medical 178.11 assistance is entitled to six months of assistance without 178.12 reapplication, unless the assistance unit ceases to include a 178.13 dependent child. For a person under 21 years of age, medical 178.14 assistance may not be discontinued within the six-month period 178.15 of extended eligibility until it has been determined that the 178.16 person is not otherwise eligible for medical assistance. 178.17 Medical assistance may be continued for an additional six months 178.18 if the person meets all requirements for the additional six 178.19 months, according to Title XIX of the Social Security Act, as 178.20 amended by section 303 of the Family Support Act of 1988, Public 178.21 Law Number 100-485. This section is repealed effective January 178.22 1, 1998. 178.23 Sec. 20. [256B.0635] [CONTINUED ELIGIBILITY IN SPECIAL 178.24 CIRCUMSTANCES.] 178.25 Subdivision 1. [INCREASED EMPLOYMENT.] Beginning January 178.26 1, 1998, or on the date that MFIP-S is implemented in counties 178.27 which elect to implement MFIP-S earlier under section 256J.50, 178.28 medical assistance may be paid for persons who received MFIP-S 178.29 or medical assistance for families and children in at least 178.30 three of six months preceding the month in which the person 178.31 became ineligible for MFIP-S or medical assistance, if the 178.32 ineligibility was due to an increase in hours of employment or 178.33 employment income or due to the loss of an earned income 178.34 disregard. In addition, to receive continued assistance under 178.35 this section, persons who received medical assistance for 178.36 families and children but did not receive MFIP-S must have had 179.1 income less than or equal to the assistance standard for their 179.2 family size under the state's AFDC plan in effect as of July 16, 179.3 1996, as required by the Personal Responsibility and Work 179.4 Opportunity Reconciliation Act of 1996 (PRWORA), Public Law 179.5 Number 104-193, at the time medical assistance eligibility 179.6 began. A person who is eligible for extended medical assistance 179.7 is entitled to six months of assistance without reapplication, 179.8 unless the assistance unit ceases to include a dependent child. 179.9 For a person under 21 years of age, medical assistance may not 179.10 be discontinued within the six-month period of extended 179.11 eligibility until it has been determined that the person is not 179.12 otherwise eligible for medical assistance. Medical assistance 179.13 may be continued for an additional six months if the person 179.14 meets all requirements for the additional six months, according 179.15 to Title XIX of the Social Security Act, as amended by section 179.16 303 of the Family Support Act of 1988, Public Law Number 100-485. 179.17 Subd. 2. [INCREASED CHILD OR SPOUSAL SUPPORT.] Beginning 179.18 January 1, 1998, or on the date that MFIP-S is implemented in 179.19 counties which elect to implement MFIP-S earlier under section 179.20 256J.50, medical assistance may be paid for persons who received 179.21 MFIP-S or medical assistance for families and children in at 179.22 least three of the six months preceding the month in which the 179.23 person became ineligible for MFIP-S or medical assistance, if 179.24 the ineligibility was the result of the collection of child or 179.25 spousal support under part D of title IV. In addition, to 179.26 receive continued assistance under this section, persons who 179.27 received medical assistance for families and children but did 179.28 not receive MFIP-S must have had income less than or equal to 179.29 the assistance standard for their family size under the state's 179.30 AFDC plan in effect as of July 16, 1996, as required by the 179.31 Personal Responsibility and Work Opportunity Reconciliation Act 179.32 of 1996 (PRWORA), Public Law Number 104-193, at the time medical 179.33 assistance eligibility began. A person who is eligible for 179.34 extended medical assistance under this subdivision is entitled 179.35 to four months of assistance without reapplication, unless the 179.36 assistance unit ceases to include a dependent child. For a 180.1 person under 21 years of age, medical assistance may not be 180.2 discontinued within the four-month period of extended 180.3 eligibility until it has been determined that the person is not 180.4 otherwise eligible for medical assistance. 180.5 Sec. 21. Minnesota Statutes 1996, section 256D.01, 180.6 subdivision 1, is amended to read: 180.7 Subdivision 1. [POLICY.] The objectives of sections 180.8 256D.01 to 256D.21 are to provide a sound administrative 180.9 structure for public assistance programs; to maximize the use of 180.10 federal money for public assistance purposes; to provide an 180.11 integrated public assistance program forall personseligible 180.12 households in the state without adequate income or resources to 180.13 maintain a subsistence reasonably compatible with decency and 180.14 health; and to provide services to help employable and 180.15 potentially employable persons prepare for and attain 180.16 self-sufficiency and obtain permanent work. 180.17 It isdeclared to bethe policy of this state thatpersons180.18 eligible households unable to provide for themselves and not 180.19 otherwise provided for by lawandwho meet the eligibility 180.20 requirements of sections 256D.01 to 256D.21 are entitled to 180.21 receive grants of general assistance necessary to maintain a 180.22 subsistence reasonably compatible with decency and health. 180.23 Providing this assistance is a matter of public concern and a 180.24 necessity in promoting the public health and welfare. 180.25 Section 21 is effective January 1, 1998. 180.26 Sec. 22. Minnesota Statutes 1996, section 256D.01, 180.27 subdivision 1a, is amended to read: 180.28 Subd. 1a. [STANDARDS.] (a) A principal objective in 180.29 providing general assistance is to provide forpersonssingle 180.30 adults or childless couples ineligible for federal programs who 180.31 are unable to provide for themselves. The minimum standard of 180.32 assistance determines the total amount of the general assistance 180.33 grant without separate standards for shelter, utilities, or 180.34 other needs. 180.35 (b) The commissioner shall set the standard of assistance 180.36 for an assistance unit consisting of an adult recipient who is 181.1 childless and unmarried or living apart from children and spouse 181.2 and who does not live with a parent or parents or a legal 181.3 custodian. When the other standards specified in this 181.4 subdivision increase, this standard must also be increased by 181.5 the same percentage. 181.6 (c) For an assistance unit consisting of a single adult who 181.7 lives with a parent or parents, the general assistance standard 181.8 of assistance is the amount that the aid to families with 181.9 dependent children standard of assistance, in effect on January 181.10 1, 1996, would increase if the recipient were added as an 181.11 additional minor child to an assistance unit consisting of the 181.12 recipient's parent and all of that parent's family members, 181.13 except that the standard may not exceed the standard for a 181.14 general assistance recipient living alone. Benefits received by 181.15 a responsible relative of the assistance unit under the 181.16 supplemental security income program, a workers' compensation 181.17 program, the Minnesota supplemental aid program, or any other 181.18 program based on the responsible relative's disability, and any 181.19 benefits received by a responsible relative of the assistance 181.20 unit under the social security retirement program, may not be 181.21 counted in the determination of eligibility or benefit level for 181.22 the assistance unit. Except as provided below, the assistance 181.23 unit is ineligible for general assistance if the available 181.24 resources or the countable income of the assistance unit and the 181.25 parent or parents with whom the assistance unit lives are such 181.26 that a family consisting of the assistance unit's parent or 181.27 parents, the parent or parents' other family members and the 181.28 assistance unit as the only or additional minor child would be 181.29 financially ineligible for general assistance. For the purposes 181.30 of calculating the countable income of the assistance unit's 181.31 parent or parents, the calculation methods, income deductions, 181.32 exclusions, and disregards used when calculating the countable 181.33 income for a single adult or childless couple must be used. 181.34 (d) For an assistance unit consisting of a childless 181.35 couple, the standards of assistance are the same as the first 181.36 and second adult standards of the aid to families with dependent 182.1 children program in effect on July 16, 1996. If one member of 182.2 the couple is not included in the general assistance grant, the 182.3 standard of assistance for the other is the second adult 182.4 standard of the aid to families with dependent children program. 182.5(e) For an assistance unit consisting of all members of a182.6family, the standards of assistance are the same as the182.7standards of assistance that apply to a family under the aid to182.8families with dependent children program if that family had the182.9same number of parents and children as the assistance unit under182.10general assistance and if all members of that family were182.11eligible for the aid to families with dependent children182.12program. If one or more members of the family are not included182.13in the assistance unit for general assistance, the standards of182.14assistance for the remaining members are the same as the182.15standards of assistance that apply to an assistance unit182.16composed of the entire family, less the standards of assistance182.17for a family of the same number of parents and children as those182.18members of the family who are not in the assistance unit for182.19general assistance. In no case shall the standard for family182.20members who are in the assistance unit for general assistance,182.21when combined with the standard for family members who are not182.22in the general assistance unit, total more than the standard for182.23the entire family if all members were in an AFDC assistance182.24unit. A child may not be excluded from the assistance unit182.25unless income intended for its benefit is received from a182.26federally aided categorical assistance program or supplemental182.27security income. The income of a child who is excluded from the182.28assistance unit may not be counted in the determination of182.29eligibility or benefit level for the assistance unit.182.30(f) An assistance unit consisting of one or more members of182.31a family must have its grant determined using the policies and182.32procedures of the aid to families with dependent children182.33program, except that, until June 30, 1995, in cases where a182.34county agency has developed or approved a case plan that182.35includes reunification with the children, foster care182.36maintenance payments made under state or local law for a child183.1who is temporarily absent from the assistance unit must not be183.2considered income to the child and the payments must not be183.3counted in the determination of the eligibility or benefit level183.4of the assistance unit. Otherwise, the standard of assistance183.5must be determined according to paragraph (e); the first $50 of183.6total child support received by an assistance unit in a month183.7must be excluded and the balance counted as unearned income.183.8 Section 22 is effective January 1, 1998. 183.9 Sec. 23. Minnesota Statutes 1996, section 256D.01, 183.10 subdivision 1e, is amended to read: 183.11 Subd. 1e. [RULES REGARDING EMERGENCY ASSISTANCE.]In order183.12to maximize the use of federal funds,The commissioner shall 183.13 adopt rules, to the extent permitted by federal law, for183.14eligibility for the emergency assistance program under aid to183.15families with dependent children, andunder the terms of 183.16 sections 256D.01 to 256D.21 for general assistance, to require 183.17 use of the emergency program under aid to families with 183.18 dependent children or MFIP-S as the primary financial resource 183.19 when available. The commissioner shall adopt rules for 183.20 eligibility for general assistance of persons with seasonal 183.21 income and may attribute seasonal income to other periods not in 183.22 excess of one year from receipt by an applicant or recipient. 183.23 General assistance payments may not be made for foster care, 183.24 child welfare services, or other social services. Vendor 183.25 payments and vouchers may be issued only as authorized in 183.26 sections 256D.05, subdivision 6, and 256D.09. 183.27 Sec. 24. Minnesota Statutes 1996, section 256D.02, 183.28 subdivision 6, is amended to read: 183.29 Subd. 6. "Child" means an adultor minorchild or 183.30 emancipated minor or, until December 30, 1997, the minor child 183.31 of an individual. 183.32 Sec. 25. Minnesota Statutes 1996, section 256D.02, 183.33 subdivision 12a, is amended to read: 183.34 Subd. 12a. [RESIDENT.] (a) For purposes of eligibility for 183.35 general assistance and general assistance medical care, a 183.36 "resident" is a person living in the state for at least 30 days 184.1 with the intention of making the person's home here and not for 184.2 any temporary purpose. Notwithstanding section 256G.03, time 184.3 spent in a shelter for battered women shall count toward 184.4 satisfying the 30-day residency requirement. All applicants for 184.5 these programs are required to demonstrate the requisite intent 184.6 and can do so in any of the following ways: 184.7 (1) by showing that the applicant maintains a residence at 184.8 a verified address, other than a place of public accommodation. 184.9 An applicant may verify a residence address by presenting a 184.10 valid state driver's license, a state identification card, a 184.11 voter registration card, a rent receipt, a statement by the 184.12 landlord, apartment manager, or homeowner verifying that the 184.13 individual is residing at the address, or other form of 184.14 verification approved by the commissioner; or 184.15 (2) by verifying residencein accordance withaccording to 184.16 Minnesota Rules, part 9500.1219, subpart 3, item C. 184.17 (b)An applicant who has been in the state for less than 30184.18days shall be considered a resident if the applicant can provide184.19documentation:184.20(1) that the applicant was born in the state;184.21(2) that the applicant has been a long-time resident of the184.22state or was formerly a resident of the state for at least 365184.23days and is returning to the state from a temporary absence, as184.24those terms are defined in rules adopted by the commissioner;184.25(3) that the applicant has come to the state to join a184.26close relative which, for purposes of this subdivision, means a184.27parent, grandparent, brother, sister, spouse, or child; or184.28(4) that the applicant has come to this state to accept a184.29bona fide offer of employment for which the applicant is184.30eligible.184.31 For general assistance medical care, a county agency shall 184.32 waive the 30-day residency requirement in cases ofemergencies,184.33includingmedical emergencies, or where unusual hardship would184.34result from denial of general assistance medical care. For 184.35 general assistance, a countymayshall waive the 30-day 184.36 residency requirementin cases of emergencies, including medical185.1emergencies, orwhere unusual hardship would result from denial 185.2 of general assistance. For purposes of this subdivision, 185.3 "unusual hardship" means the applicant is without shelter or is 185.4 without available resources for food. 185.5 The county agency must report to the commissioner within 30 185.6 days on any waiver granted under this section. The county shall 185.7 not deny an application solely because the applicant does not 185.8 meet at least one of the criteria in this subdivision, but shall 185.9 continue to process the application and leave the application 185.10 pending until the residency requirement is met or until 185.11 eligibility or ineligibility is established. 185.12 (c) For purposes of paragraph (b), the following 185.13 definitions apply (1) "metropolitan statistical area" is as 185.14 defined by the U.S. Census Bureau; (2) "shelter" includes any 185.15 shelter that is located within the metropolitan statistical area 185.16 containing the county and for which the applicant is eligible, 185.17 provided the applicant does not have to travel more than 20 185.18 miles to reach the shelter and has access to transportation to 185.19 the shelter. Clause (2) does not apply to counties in the 185.20 Minneapolis-St. Paul metropolitan statistical area. 185.21 (d) For purposes of eligibility for emergency general 185.22 assistance, the 30-day residency requirement in paragraph (a) 185.23 shall not be waived. 185.24 Section 25 is effective January 1, 1998. 185.25 Sec. 26. [256D.024] [PERSONS PROHIBITED FROM RECEIVING 185.26 GENERAL ASSISTANCE, GENERAL ASSISTANCE MEDICAL CARE, MINNESOTA 185.27 SUPPLEMENTAL AID.] 185.28 Subdivision 1. [PERSON CONVICTED OF DRUG OFFENSES.] (a) If 185.29 an applicant has been convicted of a drug offense after July 1, 185.30 1997, the assistance unit is ineligible for benefits under this 185.31 chapter until five years after the applicant has completed terms 185.32 of the court-ordered sentence. 185.33 (b) For the purposes of this subdivision, "drug offense" 185.34 means a conviction that occurred after July 1, 1997, of sections 185.35 152.021 to 152.025, 152.0261, or 152.096. Drug offense also 185.36 means a conviction in another jurisdiction of the possession, 186.1 use, or distribution of a controlled substance, or conspiracy to 186.2 commit any of these offenses, if the offense occurred after July 186.3 1, 1997, and the conviction is a felony offense in that 186.4 jurisdiction, or in the case of New Jersey, a high misdemeanor. 186.5 Subd. 2. [PAROLE VIOLATORS.] An individual violating a 186.6 condition of probation or parole imposed under federal or state 186.7 law is ineligible to receive benefits under this chapter. 186.8 Subd. 3. [FLEEING FELONS.] An individual who is fleeing to 186.9 avoid prosecution, or custody, or confinement after conviction 186.10 for a crime that is a felony under the laws of the jurisdiction 186.11 from which the individual flees, or in the case of New Jersey, 186.12 is a high misdemeanor, is ineligible to receive benefits under 186.13 this chapter. 186.14 Subd. 4. [DENIAL OF ASSISTANCE FOR TEN YEARS TO A PERSON 186.15 FOUND TO HAVE FRAUDULENTLY MISREPRESENTED RESIDENCY.] An 186.16 individual who is convicted in federal or state court of having 186.17 made a fraudulent statement or representation with respect to 186.18 the place of residence of the individual in order to receive 186.19 assistance simultaneously from two or more states is ineligible 186.20 to receive benefits under this chapter for ten years beginning 186.21 on the date of the conviction. 186.22 Sec. 27. Minnesota Statutes 1996, section 256D.03, 186.23 subdivision 3, is amended to read: 186.24 Subd. 3. [GENERAL ASSISTANCE MEDICAL CARE; ELIGIBILITY.] 186.25 (a) General assistance medical care may be paid for any person 186.26 who is not eligible for medical assistance under chapter 256B, 186.27 including eligibility for medical assistance based on a 186.28 spenddown of excess income according to section 256B.056, 186.29 subdivision 5, and: 186.30 (1) who is receiving assistance under section 256D.05, or 186.31 who is having a payment made on the person's behalf under 186.32 sections 256I.01 to 256I.06; or 186.33 (2)(i) who is a resident of Minnesota; and whose equity in 186.34 assets is not in excess of $1,000 per assistance unit. No asset 186.35 test shall be applied to children and their parents living in 186.36 the same household. Exempt assets, the reduction of excess 187.1 assets, and the waiver of excess assets must conform to the 187.2 medical assistance program in chapter 256B, with the following 187.3 exception: the maximum amount of undistributed funds in a trust 187.4 that could be distributed to or on behalf of the beneficiary by 187.5 the trustee, assuming the full exercise of the trustee's 187.6 discretion under the terms of the trust, must be applied toward 187.7 the asset maximum; and 187.8 (ii) who has countable income not in excess of the 187.9 assistance standards established in section 256B.056, 187.10 subdivision 4, or whose excess income is spent downpursuant187.11 according to section 256B.056, subdivision 5, using a six-month 187.12 budget period, except that a one-month budget period must be 187.13 used for recipients residing in a long-term care facility. The 187.14 method for calculating earned income disregards and deductions 187.15 for a person who resides with a dependent child under age 21 187.16 shallbe as specified in section 256.74, subdivision 1follow 187.17 section 256B.056. However, if a disregard of $30 and one-third 187.18 of the remainder described in section 256.74, subdivision 1, 187.19 clause (4), has been applied to the wage earner's income, the 187.20 disregard shall not be applied again until the wage earner's 187.21 income has not been considered in an eligibility determination 187.22 for general assistance, general assistance medical care, medical 187.23 assistance,oraid to families with dependent children or MFIP-S 187.24 for 12 consecutive months. The earned income and work expense 187.25 deductions for a person who does not reside with a dependent 187.26 child under age 21 shall be the same as the method used to 187.27 determine eligibility for a person under section 256D.06, 187.28 subdivision 1, except the disregard of the first $50 of earned 187.29 income is not allowed; or 187.30 (3) who would be eligible for medical assistance except 187.31 that the person resides in a facility that is determined by the 187.32 commissioner or the federal health care financing administration 187.33 to be an institution for mental diseases. 187.34 (b) Eligibility is available for the month of application, 187.35 and for three months prior to application if the person was 187.36 eligible in those prior months. A redetermination of 188.1 eligibility must occur every 12 months. 188.2 (c) General assistance medical care is not available for a 188.3 person in a correctional facility unless the person is detained 188.4 by law for less than one year in a county correctional or 188.5 detention facility as a person accused or convicted of a crime, 188.6 or admitted as an inpatient to a hospital on a criminal hold 188.7 order, and the person is a recipient of general assistance 188.8 medical care at the time the person is detained by law or 188.9 admitted on a criminal hold order and as long as the person 188.10 continues to meet other eligibility requirements of this 188.11 subdivision. 188.12 (d) General assistance medical care is not available for 188.13 applicants or recipients who do not cooperate with the county 188.14 agency to meet the requirements of medical assistance. 188.15 (e) In determining the amount of assets of an individual, 188.16 there shall be included any asset or interest in an asset, 188.17 including an asset excluded under paragraph (a), that was given 188.18 away, sold, or disposed of for less than fair market value 188.19 within the 60 months preceding application for general 188.20 assistance medical care or during the period of eligibility. 188.21 Any transfer described in this paragraph shall be presumed to 188.22 have been for the purpose of establishing eligibility for 188.23 general assistance medical care, unless the individual furnishes 188.24 convincing evidence to establish that the transaction was 188.25 exclusively for another purpose. For purposes of this 188.26 paragraph, the value of the asset or interest shall be the fair 188.27 market value at the time it was given away, sold, or disposed 188.28 of, less the amount of compensation received. For any 188.29 uncompensated transfer, the number of months of ineligibility, 188.30 including partial months, shall be calculated by dividing the 188.31 uncompensated transfer amount by the average monthly per person 188.32 payment made by the medical assistance program to skilled 188.33 nursing facilities for the previous calendar year. The 188.34 individual shall remain ineligible until this fixed period has 188.35 expired. The period of ineligibility may exceed 30 months, and 188.36 a reapplication for benefits after 30 months from the date of 189.1 the transfer shall not result in eligibility unless and until 189.2 the period of ineligibility has expired. The period of 189.3 ineligibility begins in the month the transfer was reported to 189.4 the county agency, or if the transfer was not reported, the 189.5 month in which the county agency discovered the transfer, 189.6 whichever comes first. For applicants, the period of 189.7 ineligibility begins on the date of the first approved 189.8 application. 189.9 (f) When determining eligibility for any state benefits 189.10 under this subdivision, the income and resources of all 189.11 noncitizens shall be deemed to include their sponsor's income 189.12 and resources as defined in the Personal Responsibility and Work 189.13 Opportunity Reconciliation Act of 1996, title IV, Public Law 189.14 Number 104-193, section 421. 189.15(f)(g)(1)Beginning October 1, 1993,An undocumentedalien189.16 noncitizen or a nonimmigrant is ineligible for general 189.17 assistance medical care other than emergency services. For 189.18 purposes of this subdivision, a nonimmigrant is an individual in 189.19 one or more of the classes listed in United States Code, title 189.20 8, section 1101(a)(15), and an undocumentedaliennoncitizen is 189.21 an individual who resides in the United States without the 189.22 approval or acquiescence of the Immigration and Naturalization 189.23 Service. 189.24 (2) This subdivision does not apply to a child under age 189.25 18, to a Cuban or Haitian entrant as defined in Public Law 189.26 Number 96-422, section 501(e)(1) or (2)(a), or toan aliena 189.27 noncitizen who is aged, blind, or disabled as defined inUnited189.28States Code, title 42, section 1382c(a)(1)Code of Federal 189.29 Regulations, title 42, sections 435.520, 435.530, 435.531, 189.30 435.540, and 435.541, who cooperates with the Immigration and 189.31 Naturalization Service to pursue any applicable immigration 189.32 status, including citizenship, that would qualify the individual 189.33 for medical assistance with federal financial participation. 189.34 (3) For purposes of paragraph (f), "emergency services" has 189.35 the meaning given in Code of Federal Regulations, title 42, 189.36 section 440.255(b)(1), except that it also means services 190.1 rendered because of suspected or actual pesticide poisoning. 190.2 (4) Notwithstanding any other provision of law, a 190.3 noncitizen who is ineligible for medical assistance due to the 190.4 deeming of a sponsor's income and resources, is ineligible for 190.5 general assistance medical care. 190.6 Sec. 28. Minnesota Statutes 1996, section 256D.05, 190.7 subdivision 1, is amended to read: 190.8 Subdivision 1. [ELIGIBILITY.] (a) Eachperson or family190.9whoseassistance unit with income and resourcesareless than 190.10 the standard of assistance established by the commissioner 190.11 and with a member who is a resident of the state shall be 190.12 eligible for and entitled to general assistance if theperson or190.13familyassistance unit is: 190.14 (1) a person who is suffering from a professionally 190.15 certified permanent or temporary illness, injury, or incapacity 190.16 which is expected to continue for more than 30 days and which 190.17 prevents the person from obtaining or retaining employment; 190.18 (2) a person whose presence in the home on a substantially 190.19 continuous basis is required because of the professionally 190.20 certified illness, injury, incapacity, or the age of another 190.21 member of the household; 190.22 (3) a person who has been placed in, and is residing in, a 190.23 licensed or certified facility for purposes of physical or 190.24 mental health or rehabilitation, or in an approved chemical 190.25 dependency domiciliary facility, if the placement is based on 190.26 illness or incapacity and ispursuantaccording to a plan 190.27 developed or approved by the county agency through its director 190.28 or designated representative or in a facility which has been 190.29 designated by the commissioner of corrections as a battered 190.30 women's shelter; 190.31 (4)a person who resides in a shelter facility described in190.32subdivision 3;190.33(5)a person not described in clause (1) or (3) who is 190.34 diagnosed by a licensed physician, psychological practitioner, 190.35 or other qualified professional, as mentally retarded or 190.36 mentally ill, and that condition prevents the person from 191.1 obtaining or retaining employment; 191.2(6)(5) a person who has an application pending for, or is 191.3 appealing termination of benefits from, the social security 191.4 disability program or the program of supplemental security 191.5 income for the aged, blind, and disabled, provided the person 191.6 has a professionally certified permanent or temporary illness, 191.7 injury, or incapacity which is expected to continue for more 191.8 than 30 days and which prevents the person from obtaining or 191.9 retaining employment; 191.10(7)(6) a person who is unable to obtain or retain 191.11 employment because advanced age significantly affects the 191.12 person's ability to seek or engage in substantial work; 191.13(8)(7) a person who has been assessed by a vocational 191.14 specialist and, in consultation with the county agency, has been 191.15 determined to be unemployable for purposes of thisitem,clause; 191.16 a person is considered employable if there exist positions of 191.17 employment in the local labor market, regardless of the current 191.18 availability of openings for those positions, that the person is 191.19 capable of performing. The person's eligibility under this 191.20 category must be reassessed at least annually. The county 191.21 agency must provide notice to the person not later than 30 days 191.22 before annual eligibility under this item ends, informing the 191.23 person of the date annual eligibility will end and the need for 191.24 vocational assessment if the person wishes to continue 191.25 eligibility under this clause. For purposes of establishing 191.26 eligibility under this clause, it is the applicant's or 191.27 recipient's duty to obtain any needed vocational assessment; 191.28(9)(8) a person who is determined by the county agency,in191.29accordance withaccording to permanent rules adopted by the 191.30 commissioner, to be learning disabled, provided that if a 191.31 rehabilitation plan for the person is developed or approved by 191.32 the county agency, the person is following the plan; 191.33(10)(9) a child under the age of 18 who is not living with 191.34 a parent, stepparent, or legal custodian,butand only if: the 191.35 child is legally emancipated or living with an adult with the 191.36 consent of an agency acting as a legal custodian; the child is 192.1 at least 16 years of age and the general assistance grant is 192.2 approved by the director of the county agency or a designated 192.3 representative as a component of a social services case plan for 192.4 the child; or the child is living with an adult with the consent 192.5 of the child's legal custodian and the county agency. For 192.6 purposes of this clause, "legally emancipated" means a person 192.7 under the age of 18 years who: (i) has been married; (ii) is on 192.8 active duty in the uniformed services of the United States; 192.9 (iii) has been emancipated by a court of competent jurisdiction; 192.10 or (iv) is otherwise considered emancipated under Minnesota law, 192.11 and for whom county social services has not determined that a 192.12 social services case plan is necessary, for reasons other 192.13 thanthatthe child has failed or refuses to cooperate with the 192.14 county agency in developing the plan; 192.15(11)(10) until January 1, 1998, a woman in the last 192.16 trimester of pregnancy who does not qualify for aid to families 192.17 with dependent children. A woman who is in the last trimester 192.18 of pregnancy who is currently receiving aid to families with 192.19 dependent children may be granted emergency general assistance 192.20 to meet emergency needs; 192.21(12)(11) a person who is eligible for displaced homemaker 192.22 services, programs, or assistance under section 268.96, but only 192.23 if that person is enrolled as a full-time student; 192.24(13)(12) a person who lives more than two hours round-trip 192.25 traveling time from any potential suitable employment; 192.26(14)(13) a person who is involved with protective or 192.27 court-ordered services that prevent the applicant or recipient 192.28 from working at least four hours per day; 192.29(15)(14) until January 1, 1998, (i) a family as defined in 192.30 section 256D.02, subdivision 5, which is ineligible for the aid 192.31 to families with dependent children program. 192.32 (ii) unless exempt under section 256D.051, subdivision 3a, 192.33 each adult in the unit must participate in and cooperate with 192.34 the food stamp employment and training program under section 192.35 256D.051 each month that the unit receives general assistance 192.36 benefits. The recipient's participation must begin no later 193.1 than the first day of the first full month following the 193.2 determination of eligibility for general assistance benefits. 193.3 To the extent of available resources, and with the county 193.4 agency's consent, the recipient may voluntarily continue to 193.5 participate in food stamp employment and training services for 193.6 up to three additional consecutive months immediately following 193.7 termination of general assistance benefits in order to complete 193.8 the provisions of the recipient's employability development 193.9 plan. If an adult member fails without good cause to 193.10 participate in or cooperate with the food stamp employment and 193.11 training program, the county agency shall concurrently terminate 193.12 that person's eligibility for general assistance and food stamps 193.13for two months or until compliance is achieved, whichever is193.14shorter,using the notice, good cause, conciliation and 193.15 termination procedures specified in section 256D.051; or 193.16(16)(15) a person over age 18 whose primary language is 193.17 not English and who is attending high school at least half time; 193.18 (16) a person under the age of 18 who suffers from 193.19 maladaptive behavior in the personal and behavior function area, 193.20 which for purposes of this section, is defined in the Code of 193.21 Federal Regulations and has the meaning given to these terms as 193.22 of August 21, 1996; or 193.23 (17) a person whose alcohol and drug addiction is a 193.24 material factor that contributes to the person's disability so 193.25 long as the person is receiving treatment from a licensed 193.26 chemical dependency provider, or is on a waiting list to receive 193.27 such treatment. 193.28 (b)Persons or families who are notAssistance units that 193.29 do not include a stateresidentsresident but who are otherwise 193.30 eligible for general assistance may receive emergency general 193.31 assistance to meet emergency needs. 193.32 (c) As a condition of eligibility under paragraph (a), 193.33 clauses (1), (3),(5)(4),(8)(7), and(9)(8), the 193.34 recipient must complete an interim assistance agreement and must 193.35 apply for other maintenance benefits as specified in section 193.36 256D.06, subdivision 5, and must comply with efforts to 194.1 determine the recipient's eligibility for those other 194.2 maintenance benefits. 194.3 (d) The burden of providing documentation for a county 194.4 agency to use to verify eligibility for general assistance or 194.5 for exemption from the food stamp employment and training 194.6 program is upon the applicant or recipient. The county agency 194.7 shall use documents already in its possession to verify 194.8 eligibility, and shall help the applicant or recipient obtain 194.9 other existing verification necessary to determine eligibility 194.10 which the applicant or recipient does not have and is unable to 194.11 obtain. 194.12 Sec. 29. Minnesota Statutes 1996, section 256D.05, 194.13 subdivision 5, is amended to read: 194.14 Subd. 5. [TRANSFERS OF PROPERTY.] The equity value of real 194.15 and personal property transferred without reasonable 194.16 compensation within 12 months preceding the date of application 194.17 for general assistance must be included in determining the 194.18 resources of an assistance unit in the same manner as in the aid 194.19 to families with dependent children program under chapter 256 or 194.20 MFIP-S under chapter 256J. 194.21 Sec. 30. Minnesota Statutes 1996, section 256D.05, 194.22 subdivision 8, is amended to read: 194.23 Subd. 8. [PERSONS INELIGIBLECITIZENSHIP.](a) Beginning194.24October 1, 1993, an undocumented alien or a nonimmigrant is194.25ineligible for general assistance benefits. For purposes of194.26this subdivision, a nonimmigrant is an individual in one or more194.27of the classes listed in United States Code, title 8, section194.281101(a)(15), and an undocumented alien is an individual who194.29resides in the United States without the approval or194.30acquiescence of the Immigration and Naturalization Service.194.31(b) This subdivision does not apply to a child under age194.3218, to a Cuban or Haitian entrant as defined in Public Law194.33Number 96-422, section 501(e)(1) or (2)(a), or to an alien who194.34is aged, blind, or disabled as defined in United States Code,194.35title 42, section 1382c(a)(1).Effective July 1, 1997, 194.36 citizenship requirements for applicants and recipients under 195.1 sections 256D.01 to 256D.21 shall be determined the same as 195.2 under section 256J.11. The income of sponsors of noncitizens 195.3 shall be deemed available to general assistance and general 195.4 assistance medical care applicants and recipients according to 195.5 the Personal Responsibility and Work Opportunity Reconciliation 195.6 Act of 1996, Public Law Number 104-193, Title IV, section 421. 195.7 Sec. 31. Minnesota Statutes 1996, section 256D.051, 195.8 subdivision 1a, is amended to read: 195.9 Subd. 1a. [NOTICES; CONCILIATION CONFERENCE;AND 195.10 SANCTIONS.] (a) At the time the county agency notifies the 195.11 household that it is eligible for food stamps, the county agency 195.12 must inform all mandatory employment and training services 195.13 participants as identified in subdivision 1 in the household 195.14 that they must comply with all food stamp employment and 195.15 training program requirements each month, including the 195.16 requirement to attend an initial orientation to the food stamp 195.17 employment and training program and that food stamp eligibility 195.18 will end unless the participants comply with the requirements 195.19 specified in the notice. 195.20 (b) A participant who fails without good cause to comply 195.21 with food stamp employment and training program requirements of 195.22 this section, including attendance at orientation, will lose 195.23 food stamp eligibility fortwo months or until the county agency195.24determines that the participant has complied with the program195.25requirements, whichever is shorter.the following periods: 195.26 (1) for the first occurrence, for one month or until the 195.27 person complies with the requirements not previously complied 195.28 with, whichever is longer; 195.29 (2) for the second occurrence, for three months or until 195.30 the person complies with the requirements not previously 195.31 complied with, whichever is longer; or 195.32 (3) for the third and any subsequent occurrence, for six 195.33 months or until the person complies with the requirements not 195.34 previously complied with, whichever is longer. 195.35 If the participant is not the food stamp head of household, 195.36 the person shall be considered an ineligible household member 196.1 for food stamp purposes. If the participant is the food stamp 196.2 head of household, the entire household is ineligible for food 196.3 stamps as provided in Code of Federal Regulations, title 7, 196.4 section 273.7(g). "Good cause" means circumstances beyond the 196.5 control of the participant, such as illness or injury, illness 196.6 or injury of another household member requiring the 196.7 participant's presence, a household emergency, or the inability 196.8 to obtain child care for children between the ages of six and 12 196.9 or to obtain transportation needed in order for the participant 196.10 to meet the food stamp employment and training program 196.11 participation requirements. 196.12 (c) The county agency shall mail or hand deliver a notice 196.13 to the participant not later than five days after determining 196.14 that the participant has failed without good cause to comply 196.15 with food stamp employment and training program requirements 196.16 which specifies the requirements that were not complied with, 196.17 the factual basis for the determination of noncompliance, and 196.18 the right to reinstate eligibility upon a showing of good 196.19 causeor thefor failure to meet the requirements,. The notice 196.20 must ask the reason for the noncompliance,andmustidentify the 196.21 participant's appeal rights. The notice must request that the 196.22 participant inform the county agency if the participant believes 196.23 that good cause existed for the failure to comply, must offer196.24the participant a conciliation conference as provided in196.25paragraph (d),and must state that the county agency intends to 196.26 terminate eligibility for food stamp benefits due to failure to 196.27 comply with food stamp employment and training program 196.28 requirements. 196.29 (d)The county agency must offer a conciliation conference196.30to participants who have failed to comply with food stamp196.31employment and training program requirements. The purpose of196.32the conference is to determine the cause for noncompliance, to196.33attempt to resolve the problem causing the noncompliance so that196.34all requirements are complied with, and to determine if good196.35cause for noncompliance was present. The conciliation period196.36shall run for ten working days from the date of the notice197.1required in paragraph (c). Information about how to request a197.2conciliation conference must be specified in the notice required197.3in paragraph (c). If the county agency determines that the197.4participant, during the conciliation period, complied with all197.5food stamp employment and training program requirements that the197.6recipient was required to comply with prior to and during the197.7conciliation period, or if the county agency determines that197.8good cause for failing to comply with the requirements was197.9present, a sanction on the participant's or household's food197.10stamp eligibility shall not be imposed.197.11(e)If the county agency determines that the participant 197.12 did not comply during theconciliation periodmonth with all 197.13 food stamp employment and training program requirements that 197.14 were in effectprior to and during the conciliation period, and 197.15 if the county agency determines that good cause was not present, 197.16 the county must provide a ten-day notice of termination of food 197.17 stamp benefits.The termination notice must be issued following197.18the last day of the conciliation period.The amount of food 197.19 stamps that are withheld from the household and determination of 197.20 the impact of the sanction on other household members is 197.21 governed by Code of Federal Regulations, title 7, section 273.7. 197.22(f)(e) The participant may appeal the termination of food 197.23 stamp benefits under the provisions of section 256.045. 197.24 Sec. 32. Minnesota Statutes 1996, section 256D.051, 197.25 subdivision 2a, is amended to read: 197.26 Subd. 2a. [DUTIES OF COMMISSIONER.] In addition to any 197.27 other duties imposed by law, the commissioner shall: 197.28 (1) based on this section and section 256D.052 and Code of 197.29 Federal Regulations, title 7, section 273.7, supervise the 197.30 administration of food stamp employment and training services to 197.31 county agencies; 197.32 (2) disburse money appropriated for food stamp employment 197.33 and training services to county agencies based upon the county's 197.34 costs as specified in section 256D.06; 197.35 (3) accept and supervise the disbursement of any funds that 197.36 may be provided by the federal government or from other sources 198.1 for use in this state for food stamp employment and training 198.2 services;and198.3 (4) cooperate with other agencies including any agency of 198.4 the United States or of another state in all matters concerning 198.5 the powers and duties of the commissioner under this section and 198.6 section 256D.052; and 198.7 (5) in cooperation with the commissioner of economic 198.8 security, ensure that each component of an employment and 198.9 training program carried out under this section is delivered 198.10 through a statewide workforce development system, unless the 198.11 component is not available locally through such a system. 198.12 Sec. 33. Minnesota Statutes 1996, section 256D.051, 198.13 subdivision 3a, is amended to read: 198.14 Subd. 3a. [PERSONS REQUIRED TO REGISTER FOR AND 198.15 PARTICIPATE IN THE FOOD STAMP EMPLOYMENT AND TRAINING PROGRAM.] 198.16 (a) To the extent required under Code of Federal Regulations, 198.17 title 7, section 273.7(a), each applicant for and recipient of 198.18 food stamps is required to register for work as a condition of 198.19 eligibility for food stamp benefits. Applicants and recipients 198.20 are registered by signing an application or annual reapplication 198.21 for food stamps, and must be informed that they are registering 198.22 for work by signing the form. 198.23 (b) The commissioner shall determine, within federal 198.24 requirements, persons required to participate in the food stamp 198.25 employment and training (FSET) program. 198.26 (c) The following food stamp recipients are exempt from 198.27 mandatory participation in food stamp employment and training 198.28 services: 198.29 (1) recipients of benefits under the AFDC program, MFIP-S 198.30 program, Minnesota supplemental aid program, or the general 198.31 assistance program, except that an adult who receives general 198.32 assistance under section 256D.05, subdivision 1, paragraph (b), 198.33 is not exempt unless that person qualifies under one of the 198.34 remaining exemption provisions in this paragraph; 198.35 (2) a child; 198.36 (3) a recipient over age 55; 199.1 (4) a recipient who has a mental or physical illness, 199.2 injury, or incapacity which is expected to continue for at least 199.3 30 days and which impairs the recipient's ability to obtain or 199.4 retain employment as evidenced by professional certification or 199.5 the receipt of temporary or permanent disability benefits issued 199.6 by a private or government source; 199.7 (5) a parent or other household member responsible for the 199.8 care of either a dependent child in the household who is under 199.9 age six or a person in the household who is professionally 199.10 certified as having a physical or mental illness, injury, or 199.11 incapacity. Only one parent or other household member may claim 199.12 exemption under this provision; 199.13 (6) a recipient receiving unemployment compensation or who 199.14 has applied for unemployment compensation and has been required 199.15 to register for work with the department of economic security as 199.16 part of the unemployment compensation application process; 199.17 (7) a recipient participating each week in a drug addiction 199.18 or alcohol abuse treatment and rehabilitation program, provided 199.19 the operators of the treatment and rehabilitation program, in 199.20 consultation with the county agency, recommend that the 199.21 recipient not participate in the food stamp employment and 199.22 training program; 199.23 (8) a recipient employed or self-employed for 30 or more 199.24 hours per week at employment paying at least minimum wage, or 199.25 who earns wages from employment equal to or exceeding 30 hours 199.26 multiplied by the federal minimum wage;or199.27 (9) a student enrolled at least half time in any school, 199.28 training program, or institution of higher education. When 199.29 determining if a student meets this criteria, the school's, 199.30 program's or institution's criteria for being enrolled half time 199.31 shall be used.; or 199.32 (10) a recipient residing with and responsible for the care 199.33 of a minor child. 199.34 Sec. 34. Minnesota Statutes 1996, section 256D.051, is 199.35 amended by adding a subdivision to read: 199.36 Subd. 18. [WORK EXPERIENCE PLACEMENTS.] (a) To the extent 200.1 of available resources, each county agency must establish and 200.2 operate a work experience component in the food stamp employment 200.3 and training program for recipients who are subject to a federal 200.4 limit of three months of food stamp eligibility in any 36-month 200.5 period. The purpose of the work experience component is to 200.6 enhance the participant's employability, self-sufficiency, and 200.7 to provide meaningful, productive work activities. 200.8 (b) The commissioner shall assist counties in the design 200.9 and implementation of these components. The commissioner must 200.10 ensure that job placements under a work experience component 200.11 comply with section 256J.72. Written or oral concurrence with 200.12 job duties of persons placed under the community work experience 200.13 program shall be obtained from the appropriate exclusive 200.14 bargaining representative. 200.15 (c) Worksites developed under this section are limited to 200.16 projects that serve a useful public service such as health, 200.17 social service, environmental protection, education, urban and 200.18 rural development and redevelopment, welfare, recreation, public 200.19 facilities, public safety, community service, services to aged 200.20 or disabled citizens, and child care. To the extent possible, 200.21 the prior training, skills, and experience of a recipient must 200.22 be used in making appropriate work experience assignments. 200.23 (d) Structured, supervised volunteer work with an agency or 200.24 organization that is monitored by the county service provider 200.25 may, with the approval of the county agency, be used as a work 200.26 experience placement. 200.27 (e) As a condition of placing a person receiving food 200.28 stamps in a program under this subdivision, the county agency 200.29 shall first provide the recipient the opportunity: 200.30 (1) for placement in suitable subsidized or unsubsidized 200.31 employment through participation in job search under section 200.32 256D.051; or 200.33 (2) for placement in suitable employment through 200.34 participation in on-the-job training, if such employment is 200.35 available. 200.36 (f) The county agency shall limit the maximum monthly 201.1 number of hours that any participant may work in a work 201.2 experience placement to a number equal to the amount of the 201.3 family's monthly food stamp allotment divided by the greater of 201.4 the federal minimum wage or the applicable state minimum wage. 201.5 After a participant has been assigned to a position for nine 201.6 months, the participant may not continue in that assignment 201.7 unless the maximum number of hours a participant works is no 201.8 greater than the amount of the participant's food stamp 201.9 allotment divided by the rate of pay for individuals employed in 201.10 the same or similar occupations by the same employer at the same 201.11 site. 201.12 (g) The participant's employability development plan must 201.13 include the length of time needed in the work experience 201.14 program, the need to continue job seeking activities while 201.15 participating in work experience, and the participant's 201.16 employment goals. 201.17 (h) After each six months of a recipient's participation in 201.18 a work experience job placement, and at the conclusion of each 201.19 work experience assignment under this section, the county agency 201.20 shall reassess and revise, as appropriate, the participant's 201.21 employability development plan. 201.22 (i) A participant may claim good cause under section 201.23 256J.57 for failure to cooperate with a work experience job 201.24 placement. 201.25 (j) A recipient who has failed without good cause to 201.26 participate in or comply with the work experience job placement 201.27 shall be terminated from participation in work experience job 201.28 activities. If the recipient is not exempt from mandatory food 201.29 stamp employment and training program participation under 201.30 section 256D.051, subdivision 3a, the recipient will be assigned 201.31 to other mandatory program activities. If the recipient is 201.32 exempt from mandatory participation but is participating as a 201.33 volunteer, the person shall be terminated from the food stamp 201.34 employment and training program. 201.35 Sec. 35. [256D.0512] [BUDGETING LUMP SUMS.] 201.36 Nonrecurring lump-sum income received by a recipient of 202.1 general assistance must be budgeted in the normal retrospective 202.2 cycle. 202.3 Sec. 36. Minnesota Statutes 1996, section 256D.055, is 202.4 amended to read: 202.5 256D.055 [COUNTY DESIGN; WORK FOCUSED PROGRAM.] 202.6 The commissioner of human services shall issue a request 202.7 for proposals from counties to submit a plan for developing and 202.8 implementing a county-designed program. The plan shall be for 202.9 first-time applicants foraid to families with dependent202.10children (AFDC) and family general assistance (FGA)Minnesota 202.11 family investment program-statewide (MFIP-S) and, until January 202.12 1, 1998, aid to families with dependent children (AFDC) and 202.13 family general assistance and must emphasize the importance of 202.14 becoming employed and oriented into the work force in order to 202.15 become self-sufficient. The plan must target public assistance 202.16 applicants who are most likely to become self-sufficient quickly 202.17 with short-term assistance or services such as child care, child 202.18 support enforcement, or employment and training services. 202.19 The plan may include vendor payments, mandatory job search, 202.20 refocusing existing county or provider efforts, or other program 202.21 features. The commissioner may approve a county plan which 202.22 allows a county to use other program funding for the county work 202.23 focus program in a more flexible manner. Nothing in this 202.24 section shall allow payments made to the public assistance 202.25 applicant to be less than the amount the applicant would have 202.26 received if the program had not been implemented, or reduce or 202.27 eliminate a category of eligible participants from the program 202.28 without legislative approval. 202.29 The commissioner shall not approve a county plan that would 202.30 have an adverse impact on the Minnesota family investment plan 202.31 demonstration. If the plan is approved by the commissioner, the 202.32 county may implement the plan. If the plan is approved by the 202.33 commissioner, but a federal waiver is necessary to implement the 202.34 plan, the commissioner shall apply for the necessary federal 202.35 waivers. 202.36 Sec. 37. [256D.057] [SUPPLEMENT FOR CERTAIN DISABLED 203.1 CHILDREN AND NONCITIZENS.] 203.2 (a) For an assistance unit that contains an adult or a 203.3 minor legal noncitizen who was residing in this state as of July 203.4 1, 1997, and lost eligibility for the federal Food Stamp and 203.5 Supplemental Security Income programs under the provisions of 203.6 title IV of Public Law Number 104-193, the amount of assistance 203.7 that the unit is eligible for under section 256D.06 shall be 203.8 increased by the additional amount that the assistance unit 203.9 would have been eligible for if the noncitizen were a citizen, 203.10 for each legal noncitizen, provided the legal adult noncitizen 203.11 in the assistance unit is: 203.12 (1) enrolled in a literacy class, English as a second 203.13 language class, or a citizenship class; 203.14 (2) applying for admission to a literacy class, English as 203.15 a second language class, or a citizenship class, and is on a 203.16 waiting list; 203.17 (3) in the process of applying for a waiver from the 203.18 Immigration and Naturalization Service of the English language 203.19 or civics requirements of the citizenship test; 203.20 (4) has submitted an application for citizenship to the 203.21 Immigration and Naturalization Service and is waiting for a 203.22 testing date or a subsequent swearing in ceremony; or 203.23 (5) has been denied citizenship due to a failure to pass 203.24 the test after two attempts or because of an inability to 203.25 understand the rights and responsibilities of becoming a United 203.26 States citizen, as documented by the Immigration and 203.27 Naturalization Service or the county. 203.28 (b) For the period from July 1, 1997, to February 28, 1998, 203.29 an assistance unit shall receive a transitional amount of $100 203.30 per month for each legal noncitizen who qualifies for assistance 203.31 under paragraph (a). 203.32 (c) A minor disabled child who was residing in this state 203.33 on July 1, 1997, and lost eligibility for Supplemental Security 203.34 Income under the provisions of Title II of Public Law Number 203.35 104-193, shall be eligible for medical assistance under chapter 203.36 256B. 204.1 Section 37 is effective July 1, 1997. 204.2 Sec. 38. Minnesota Statutes 1996, section 256D.06, 204.3 subdivision 2, is amended to read: 204.4 Subd. 2. Notwithstanding the provisions of subdivision 1, 204.5 a grant of general assistance shall be made to an eligible 204.6individual,single adult, married couple, or family for an 204.7 emergency need, as defined in rules promulgated by the 204.8 commissioner, where the recipient requests temporary assistance 204.9 not exceeding 30 days if an emergency situation appears to exist 204.10 and (a) until January 1, 1998, the individual is ineligible for 204.11 the program of emergency assistance under aid to families with 204.12 dependent children and is not a recipient of aid to families 204.13 with dependent children at the time of applicationhereunder; or 204.14 (b) the individual or family is (i) ineligible for MFIP-S or is 204.15 not a participant of MFIP-S; and (ii) is ineligible for 204.16 emergency assistance under section 256J.48. If an applicant or 204.17 recipient relates facts to the county agency which may be 204.18 sufficient to constitute an emergency situation, the county 204.19 agency shall advise the person of the procedure for applying for 204.20 assistancepursuantaccording to this subdivision. 204.21 Sec. 39. Minnesota Statutes 1996, section 256D.06, 204.22 subdivision 5, is amended to read: 204.23 Subd. 5. Any applicant, otherwise eligible for general 204.24 assistance and possibly eligible for maintenance benefits from 204.25 any other source shall (a) make application for those benefits 204.26 within 30 days of the general assistance application; and (b) 204.27 execute an interim assistance authorization agreement on a form 204.28 as directed by the commissioner. If found eligible for benefits 204.29 from other sources, and a payment received from another source 204.30 relates to the period during which general assistance was also 204.31 being received, the recipient shall be required to reimburse the 204.32 county agency for the interim assistance paid. Reimbursement 204.33 shall not exceed the amount of general assistance paid during 204.34 the time period to which the other maintenance benefits apply 204.35 and shall not exceed the state standard applicable to that time 204.36 period. The commissioner shall adopt rules authorizing county 205.1 agencies or other client representatives to retain from the 205.2 amount recovered under an interim assistance agreement 25 205.3 percent plus actual reasonable fees, costs, and disbursements of 205.4 appeals and litigation, of providing special assistance to the 205.5 recipient in processing the recipient's claim for maintenance 205.6 benefits from another source. The money retained under this 205.7 section shall be from the state share of the recovery. The 205.8 commissioner or the county agency may contract with qualified 205.9 persons to provide the special assistance. The rules adopted by 205.10 the commissioner shall include the methods by which county 205.11 agencies shall identify, refer, and assist recipients who may be 205.12 eligible for benefits under federal programs for the disabled. 205.13This subdivision does not require repayment of per diem payments205.14made to shelters for battered women pursuant to section 256D.05,205.15subdivision 3.205.16 Sec. 40. [256D.066] [INTERSTATE PAYMENT STANDARDS.] 205.17 (a) Effective July 1, 1997, the amount of assistance paid 205.18 to an eligible assistance unit in which all members have resided 205.19 in this state for less than 12 calendar months shall be the 205.20 lesser of either the payment standard that would have been 205.21 received by the assistance unit from the state of immediate 205.22 prior residence, or the amount calculated in accordance with 205.23 this chapter. The lesser payment shall continue until the 205.24 assistance unit meets the 12-month requirement. Payment shall 205.25 be calculated by applying this state's budgeting policies and 205.26 the unit's net income shall be deducted from the payment 205.27 standard in the other state or in this state, whichever is 205.28 lower. At county option, payment shall be made in vendor form 205.29 for rent and utilities, up to the limit of the grant amount, and 205.30 residual amounts, if any, shall be paid directly to the 205.31 assistance unit. 205.32 (b) During the first 12 months an assistance unit resides 205.33 in this state, the number of months that the unit is eligible to 205.34 receive general assistance benefits is limited to the number of 205.35 months the unit would have been eligible to receive similar 205.36 benefits in the state of immediate prior residence. 206.1 (c) This policy applies whether or not the unit received 206.2 similar benefits while residing in the state of previous 206.3 residence. 206.4 (d) When a unit moves to this state from another state 206.5 where the unit has exhausted that state's time limit for 206.6 receiving similar benefits, the unit will not be eligible to 206.7 receive any general assistance benefits in this state for 12 206.8 months from the date the unit moves here. 206.9 (e) For the purposes of this subdivision, "state of 206.10 immediate prior residence" means: 206.11 (i) the state in which the applicant declares the applicant 206.12 spent the most time in the 30 days prior to moving to this 206.13 state; or 206.14 (ii) the applicant is in the migrant work stream and the 206.15 applicant maintains a home in another state. 206.16 Sec. 41. Minnesota Statutes 1996, section 256D.08, 206.17 subdivision 1, is amended to read: 206.18 Subdivision 1. In determining eligibility ofa family,206.19married couple, or individual there shall be excludedan 206.20 assistance unit, the following resources shall be excluded: 206.21 (1) real or personal property or liquid assets which do not 206.22 exceedthose permitted under the federally aided assistance206.23program known as aid to families with dependent children$1,000; 206.24 and 206.25 (2) other property which has been determined,in accordance206.26with and subjectaccording to limitations contained in rules 206.27 promulgated by the commissioner, to be essential tothe family206.28or individualthe assistance unit as a means of self-support or 206.29 self-care or which is producing income that is being used for 206.30 the support of theindividual or familyassistance unit. The 206.31 commissioner shall further provide by rule the conditions for 206.32 those situations in which property not excluded under this 206.33 subdivision may be retained by thefamily or individual206.34 assistance unit where there is a reasonable probability that in 206.35 the foreseeable future the property will be used for the 206.36 self-support of theindividual or familyassistance unit; and 207.1 (3) payments, madepursuantaccording to litigation and 207.2 subsequent appropriation by the United States Congress, of funds 207.3 to compensate members of Indian tribes for the taking of tribal 207.4 land by the federal government. 207.5 Sec. 42. Minnesota Statutes 1996, section 256D.08, 207.6 subdivision 2, is amended to read: 207.7 Subd. 2. Notwithstanding any other provision of sections 207.8 256D.01 to 256D.21, the commissioner shall provide by rule for 207.9 the exclusion of property from the determination of eligibility 207.10 for general assistance when it appears likely that the need for 207.11 general assistance will not exceed 30 days or an undue hardship 207.12 would be imposed onan individual or familyan assistance unit 207.13 by the forced disposal of the property. 207.14 Sec. 43. Minnesota Statutes 1996, section 256D.09, is 207.15 amended by adding a subdivision to read: 207.16 Subd. 2b. If at any time there is verification that the 207.17 client's disability is dependent upon their continued drug 207.18 addiction or alcoholism, general assistance for rent and 207.19 utilities must be made in the form of vendor payments. 207.20 Verification of drug addiction or alcoholism can be 207.21 received from: 207.22 (1) denial of social security benefits based on drug 207.23 addiction or alcoholism; 207.24 (2) a statement from the state medical review team that the 207.25 person's disability is dependent upon continued drug addiction 207.26 or alcoholism; or 207.27 (3) a doctor's statement that the person's disability is 207.28 dependent upon continued drug addiction or alcoholism. 207.29 Sec. 44. Minnesota Statutes 1996, section 256D.435, 207.30 subdivision 3, is amended to read: 207.31 Subd. 3. [APPLICATION FOR FEDERALLY FUNDED BENEFITS.] 207.32 Persons who live with the applicant or recipient, who have unmet 207.33 needs and for whom the applicant or recipient has financial 207.34 responsibility, must apply for and, if eligible, acceptAFDC and207.35otherany federally funded benefits, including MFIP-S. 207.36 Sec. 45. Minnesota Statutes 1996, section 256D.44, 208.1 subdivision 5, is amended to read: 208.2 Subd. 5. [SPECIAL NEEDS.] In addition to the state 208.3 standards of assistance established in subdivisions 1 to 4, 208.4 payments are allowed for the following special needs of 208.5 recipients of Minnesota supplemental aid who are not residents 208.6 of a nursing home, a regional treatment center, or a group 208.7 residential housing facility:. 208.8 (a) The county agency shall pay a monthly allowance for 208.9 medically prescribed diets payable under the AFDC program or 208.10 Minnesota family investment program-statewide if the cost of 208.11 those additional dietary needs cannot be met through some other 208.12 maintenance benefit. 208.13 (b) Payment for nonrecurring special needs must be allowed 208.14 for necessary home repairs or necessary repairs or replacement 208.15 of household furniture and appliances using the payment standard 208.16 of the AFDC program in effect on July 16, 1996, for these 208.17 expenses, as long as other funding sources are not available. 208.18 (c) A fee for guardian or conservator service is allowed at 208.19 a reasonable rate negotiated by the county or approved by the 208.20 court. This rate shall not exceed five percent of the 208.21 assistance unit's gross monthly income up to a maximum of $100 208.22 per month. If the guardian or conservator is a member of the 208.23 county agency staff, no fee is allowed. 208.24 (d) The county agency shall continue to pay a monthly 208.25 allowance of $68 for restaurant meals for a person who was 208.26 receiving a restaurant meal allowance on June 1, 1990, and who 208.27 eats two or more meals in a restaurant daily. The allowance 208.28 must continue until the person has not received Minnesota 208.29 supplemental aid for one full calendar month or until the 208.30 person's living arrangement changes and the person no longer 208.31 meets the criteria for the restaurant meal allowance, whichever 208.32 occurs first. 208.33 (e) A fee of ten percent of the recipient's gross income or 208.34 $25, whichever is less, is allowed for representative payee 208.35 services provided by an agency that meets the requirements under 208.36 SSI regulations to charge a fee for representative payee 209.1 services. This special need is available to all recipients of 209.2 Minnesota supplemental aid regardless of their living 209.3 arrangement. 209.4 Sec. 46. Minnesota Statutes 1996, section 259.67, 209.5 subdivision 4, is amended to read: 209.6 Subd. 4. [ELIGIBILITY CONDITIONS.] (a) The placing agency 209.7 shalldetermineuse the AFDC requirements in effect on as 209.8 specified in federal law , when determining the child's 209.9 eligibility for adoption assistance under title IV-E of the 209.10 Social Security Act. If the child does not qualify, the placing 209.11 agency shall certify a child as eligible for state funded 209.12 adoption assistance only if the following criteria are met: 209.13 (1) Due to the child's characteristics or circumstances it 209.14 would be difficult to provide the child an adoptive home without 209.15 adoption assistance. 209.16 (2)(i) A placement agency has made reasonable efforts to 209.17 place the child for adoption without adoption assistance, but 209.18 has been unsuccessful; or 209.19 (ii) the child's licensed foster parents desire to adopt 209.20 the child and it is determined by the placing agency that the 209.21 adoption is in the best interest of the child. 209.22 (3) The child has been a ward of the commissioner or a 209.23 Minnesota-licensed child-placing agency. 209.24 (b) For purposes of this subdivision, the characteristics 209.25 or circumstances that may be considered in determining whether a 209.26 child is a child with special needs under United States Code, 209.27 title 42, chapter 7, subchapter IV, part E, or meets the 209.28 requirements of paragraph (a), clause (1), are the following: 209.29 (1) The child is a member of a sibling group to be placed 209.30 as one unit in which at least one sibling is older than 15 209.31 months of age or is described in clause (2) or (3). 209.32 (2) The child has documented physical, mental, emotional, 209.33 or behavioral disabilities. 209.34 (3) The child has a high risk of developing physical, 209.35 mental, emotional, or behavioral disabilities. 209.36 (c) When a child's eligibility for adoption assistance is 210.1 based upon the high risk of developing physical, mental, 210.2 emotional, or behavioral disabilities, payments shall not be 210.3 made under the adoption assistance agreement unless and until 210.4 the potential disability manifests itself as documented by an 210.5 appropriate health care professional. 210.6 Sec. 47. [TRANSFER OF RESPONSIBILITIES FOR PROVIDING 210.7 SECURE CRISIS SHELTER.] 210.8 All of the powers, duties, and functions of the 210.9 commissioner of human services relating to the operation and 210.10 funding of shelters for battered women are transferred to the 210.11 commissioner of corrections in accordance with Minnesota 210.12 Statutes, section 15.039, except for personnel transfers under 210.13 section 15.039, subdivision 7. 210.14 Sec. 48. [FINDINGS; CONTINGENT BENEFIT STANDARDS.] 210.15 The legislature makes the following findings: 210.16 (a) The legislature is statutorily required to balance the 210.17 state budget. 210.18 (b) The task of balancing the state budget is made 210.19 difficult in the area of the new federal welfare reform program 210.20 for the needy due to the dramatic change in program design that 210.21 this state and all other states must experience, rendering 210.22 historical data on client behavior, interstate migration, and 210.23 welfare spending patterns of dubious value. 210.24 (c) Many states have more restrictive or nonexistent state 210.25 welfare programs to aid needy individuals without children. 210.26 (d) Within the state's limited resources, the legislature 210.27 wishes to manage funds appropriated under this part to best 210.28 provide for needy Minnesotans. 210.29 (e) To that end, the legislature has adopted a policy in 210.30 Minnesota Statutes, section 256D.066, of providing households of 210.31 needy individuals or couples without children in which no 210.32 mandatory member has resided in Minnesota for the previous 12 210.33 months a benefit based on the grant the household would have 210.34 received had it applied for benefits in its previous state of 210.35 residence. 210.36 (f) Therefore, if the policy designed to make welfare 211.1 benefits a neutral factor in the decision to move to Minnesota 211.2 and to best manage the benefit appropriation for needy 211.3 Minnesotans, while providing a safety net for recent interstate 211.4 migrants, is enjoined or otherwise prevented from being 211.5 implemented, the commissioner shall ratably reduce the benefit 211.6 standards for all assistance units, from the standards in 211.7 Minnesota Statutes, section 256D.01, but only in an amount 211.8 sufficient to remain within the forecasted budgets for those 211.9 programs. In the event the commissioner is required to ratably 211.10 reduce benefits under this section, the commissioner shall 211.11 notify the fiscal and policy chairs of the house and senate 211.12 human services committees that the reductions have taken place 211.13 and shall formulate a plan to be presented to the next 211.14 legislative session. 211.15 At county option, these benefits shall be paid in vendor 211.16 form for rent and utilities, up to the limit of the grant 211.17 amount. The residual amount, if any, shall be paid directly to 211.18 the assistance unit. 211.19 Sec. 49. [REPEALER.] 211.20 Minnesota Statutes 1996, sections 256.8711; 256D.02, 211.21 subdivision 5; 256D.0511; and 256D.065 are repealed. 211.22 Sec. 50. [EFFECTIVE DATES.] 211.23 Sections 21, 22, and 25 are effective January 1, 1998. 211.24 ARTICLE 4 211.25 TECHNICAL CHANGES; CROSS REFERENCES 211.26 Section 1. Minnesota Statutes 1996, section 13.46, 211.27 subdivision 1, is amended to read: 211.28 Subdivision 1. [DEFINITIONS.] As used in this section: 211.29 (a) "Individual" means an individualpursuantaccording to 211.30 section 13.02, subdivision 8, but does not include a vendor of 211.31 services. 211.32 (b) "Program" includes all programs for which authority is 211.33 vested in a component of the welfare systempursuantaccording 211.34 to statute or federal law, including, but not limited to, aid to 211.35 families with dependent children, Minnesota family investment 211.36 program-statewide, medical assistance, general assistance,work212.1readiness,general assistance medical care, and child support 212.2 collections. 212.3 (c) "Welfare system" includes the department of human 212.4 services, local social services agencies, county welfare 212.5 agencies, the public authority responsible for child support 212.6 enforcement, human services boards, community mental health 212.7 center boards, state hospitals, state nursing homes, the 212.8 ombudsman for mental health and mental retardation, and persons, 212.9 agencies, institutions, organizations, and other entities under 212.10 contract to any of the above agencies to the extent specified in 212.11 the contract. 212.12 (d) "Mental health data" means data on individual clients 212.13 and patients of community mental health centers, established 212.14 under section 245.62, mental health divisions of counties and 212.15 other providers under contract to deliver mental health 212.16 services, or the ombudsman for mental health and mental 212.17 retardation. 212.18 (e) "Fugitive felon" means a person who has been convicted 212.19 of a felony and who has escaped from confinement or violated the 212.20 terms of probation or parole for that offense. 212.21 Sec. 2. Minnesota Statutes 1996, section 13.46, 212.22 subdivision 2, is amended to read: 212.23 Subd. 2. [GENERAL.] (a) Unless the data is summary data or 212.24 a statute specifically provides a different classification, data 212.25 on individuals collected, maintained, used, or disseminated by 212.26 the welfare system is private data on individuals, and shall not 212.27 be disclosed except: 212.28 (1)pursuantaccording to section 13.05; 212.29 (2)pursuantaccording to court order; 212.30 (3)pursuantaccording to a statute specifically 212.31 authorizing access to the private data; 212.32 (4) to an agent of the welfare system, including a law 212.33 enforcement person, attorney, or investigator acting for it in 212.34 the investigation or prosecution of a criminal or civil 212.35 proceeding relating to the administration of a program; 212.36 (5) to personnel of the welfare system who require the data 213.1 to determine eligibility, amount of assistance, and the need to 213.2 provide services of additional programs to the individual; 213.3 (6) to administer federal funds or programs; 213.4 (7) between personnel of the welfare system working in the 213.5 same program; 213.6 (8) the amounts of cash public assistance and relief paid 213.7 to welfare recipients in this state, including their names, 213.8 social security numbers, income, addresses, and other data as 213.9 required, upon request by the department of revenue to 213.10 administer the property tax refund law, supplemental housing 213.11 allowance, early refund of refundable tax credits, and the 213.12 income tax. "Refundable tax credits" means the dependent care 213.13 credit under section 290.067, the Minnesota working family 213.14 credit under section 290.0671, the property tax refund under 213.15 section 290A.04, and, if the required federal waiver or waivers 213.16 are granted, the federal earned income tax credit under section 213.17 32 of the Internal Revenue Code; 213.18 (9) to the Minnesota department of economic security for 213.19 the purpose of monitoring the eligibility of the data subject 213.20 for reemployment insurance, for any employment or training 213.21 program administered, supervised, or certified by that agency, 213.22 or for the purpose of administering any rehabilitation program, 213.23 whether alone or in conjunction with the welfare system, and to 213.24 verify receipt of energy assistance for the telephone assistance 213.25 plan; 213.26 (10) to appropriate parties in connection with an emergency 213.27 if knowledge of the information is necessary to protect the 213.28 health or safety of the individual or other individuals or 213.29 persons; 213.30 (11) data maintained by residential programs as defined in 213.31 section 245A.02 may be disclosed to the protection and advocacy 213.32 system established in this statepursuantaccording to Part C of 213.33 Public Law Number 98-527 to protect the legal and human rights 213.34 of persons with mental retardation or other related conditions 213.35 who live in residential facilities for these persons if the 213.36 protection and advocacy system receives a complaint by or on 214.1 behalf of that person and the person does not have a legal 214.2 guardian or the state or a designee of the state is the legal 214.3 guardian of the person; 214.4 (12) to the county medical examiner or the county coroner 214.5 for identifying or locating relatives or friends of a deceased 214.6 person; 214.7 (13) data on a child support obligor who makes payments to 214.8 the public agency may be disclosed to the higher education 214.9 services office to the extent necessary to determine eligibility 214.10 under section 136A.121, subdivision 2, clause (5); 214.11 (14) participant social security numbers and names 214.12 collected by the telephone assistance program may be disclosed 214.13 to the department of revenue to conduct an electronic data match 214.14 with the property tax refund database to determine eligibility 214.15 under section 237.70, subdivision 4a; 214.16 (15) the current address of a recipient of aid to families 214.17 with dependent children or Minnesota family investment 214.18 program-statewide may be disclosed to law enforcement officers 214.19 who provide the name and social security number of the recipient 214.20 and satisfactorily demonstrate that: (i) the recipient is a 214.21 fugitive felon, including the grounds for this determination; 214.22 (ii) the location or apprehension of the felon is within the law 214.23 enforcement officer's official duties; and (iii) the request is 214.24 made in writing and in the proper exercise of those duties; 214.25 (16) the current address of a recipient of general 214.26 assistance, work readiness,or general assistance medical care 214.27 may be disclosed to probation officers and corrections agents 214.28 who are supervising the recipient, and to law enforcement 214.29 officers who are investigating the recipient in connection with 214.30 a felony level offense; 214.31 (17) information obtained from food stamp applicant or 214.32 recipient households may be disclosed to local, state, or 214.33 federal law enforcement officials, upon their written request, 214.34 for the purpose of investigating an alleged violation of the 214.35 food stamp act,in accordance withaccording to Code of Federal 214.36 Regulations, title 7, section 272.1(c); 215.1 (18) data on a child support obligor who is in arrears may 215.2 be disclosed for purposes of publishing the datapursuant215.3 according to section 518.575; 215.4 (19) data on child support payments made by a child support 215.5 obligor may be disclosed to the obligee; 215.6 (20) data in the work reporting system may be disclosed 215.7 under section 256.998, subdivision 7; 215.8 (21) to the department of children, families, and learning 215.9 for the purpose of matching department of children, families, 215.10 and learning student data with public assistance data to 215.11 determine students eligible for free and reduced price meals, 215.12 meal supplements, and free milkpursuantaccording to United 215.13 States Code, title 42, sections 1758, 1761, 1766, 1766a, 1772, 215.14 and 1773; to produce accurate numbers of students receiving aid 215.15 to families with dependent children or Minnesota family 215.16 investment program-statewide as required by section 124.175; and 215.17 to allocate federal and state funds that are distributed based 215.18 on income of the student's family; or 215.19 (22) the current address and telephone number of program 215.20 recipients and emergency contacts may be released to the 215.21 commissioner of health or a local board of health as defined in 215.22 section 145A.02, subdivision 2, when the commissioner or local 215.23 board of health has reason to believe that a program recipient 215.24 is a disease case, carrier, suspect case, or at risk of illness, 215.25 and the data are necessary to locate the person. 215.26 (b) Information on persons who have been treated for drug 215.27 or alcohol abuse may only be disclosedin accordance with215.28 according to the requirements of Code of Federal Regulations, 215.29 title 42, sections 2.1 to 2.67. 215.30 (c) Data provided to law enforcement agencies under 215.31 paragraph (a), clause (15), (16), or (17), or paragraph (b), are 215.32 investigative data and are confidential or protected nonpublic 215.33 while the investigation is active. The data are private after 215.34 the investigation becomes inactive under section 13.82, 215.35 subdivision 5, paragraph (a) or (b). 215.36 (d) Mental health data shall be treated as provided in 216.1 subdivisions 7, 8, and 9, but is not subject to the access 216.2 provisions of subdivision 10, paragraph (b). 216.3 Sec. 3. Minnesota Statutes 1996, section 84.98, 216.4 subdivision 3, is amended to read: 216.5 Subd. 3. [CRITERIA FOR DETERMINING ECONOMIC, SOCIAL, 216.6 PHYSICAL, OR EDUCATIONAL DISADVANTAGE.] (a) The criteria for 216.7 determining economic, social, physical, or educational 216.8 disadvantage shall be determined as provided in this subdivision. 216.9 (b) Economically disadvantaged are persons who meet the 216.10 criteria for disadvantaged established by the department of 216.11 economic security or persons receiving services provided by the 216.12 department of human services such as welfare payments, food 216.13 stamps,andaid to families with dependent children or Minnesota 216.14 family investment program-statewide. 216.15 (c) Socially disadvantaged are persons who have been 216.16 classified as persons in need of supervision by the court system. 216.17 (d) Physically disadvantaged are persons who have been 216.18 identified as having special needs by public agencies that deal 216.19 with employment for the disabled. 216.20 (e) Educationally disadvantaged are persons who have 216.21 dropped out of school or are at risk of dropping out of school 216.22 and persons with learning disabilities or in need of special 216.23 education classes. 216.24 Sec. 4. Minnesota Statutes 1996, section 124.17, 216.25 subdivision 1d, is amended to read: 216.26 Subd. 1d. [AFDC AND MFIP-S PUPIL UNITS.] AFDC and MFIP-S 216.27 pupil units for fiscal year 1993 and thereafter must be computed 216.28 according to this subdivision. 216.29 (a) The AFDC and MFIP-S concentration percentage for a 216.30 district equals the product of 100 times the ratio of: 216.31 (1) the number of pupils enrolled in the district from 216.32 families receiving assistance from either aid to families with 216.33 dependent children or Minnesota family investment 216.34 program-statewide according to subdivision 1e; to 216.35 (2) the number of pupils in average daily membership 216.36 according to subdivision 1e enrolled in the district. 217.1 (b) The AFDC and MFIP-S pupil weighting factor for a 217.2 district equals the lesser of one or the quotient obtained by 217.3 dividing the district's AFDC and MFIP-S concentration percentage 217.4 by 11.5. 217.5 (c) The AFDC and MFIP-S pupil units for a district for 217.6 fiscal year 1993 and thereafter equals the product of: 217.7 (1) the number of pupils enrolled in the district from 217.8 families receiving assistance from either aid to families with 217.9 dependent children or Minnesota family investment 217.10 program-statewide according to subdivision 1e; times 217.11 (2) the AFDC and MFIP-S pupil weighting factor for the 217.12 district; times 217.13 (3) .67. 217.14 Sec. 5. Minnesota Statutes 1996, section 124.17, 217.15 subdivision 1e, is amended to read: 217.16 Subd. 1e. [AFDC AND MFIP-S PUPIL COUNTS.] AFDC and MFIP-S 217.17 pupil counts and average daily membership for subdivisions 1b 217.18 and 1d shall be determined according to this subdivision: 217.19 (a) For districts where the number of pupils from families 217.20 receiving assistance from either aid to families with dependent 217.21 children or Minnesota family investment program-statewide has 217.22 increased over the preceding year for each of the two previous 217.23 years, the number of pupils enrolled in the district from 217.24 families receiving assistance from either aid to families with 217.25 dependent children or Minnesota family investment 217.26 program-statewide shall be those counted on October 1 of the 217.27 previous school year. The average daily membership used shall 217.28 be from the previous school year. 217.29 (b) For districts that do not meet the requirement of 217.30 paragraph (a), the number of pupils enrolled in the district 217.31 from families receiving assistance from either aid to families 217.32 with dependent children or Minnesota family investment 217.33 program-statewide shall be the average number of pupils on 217.34 October 1 of the second previous school year and October 1 of 217.35 the previous school year. The average daily membership used 217.36 shall be the average number enrolled in the previous school year 218.1 and the second previous school year. 218.2 (c) Notwithstanding paragraphs (a) and (b), for charter 218.3 schools in the first three years of operation, the number of 218.4 pupils enrolled from families receiving either AFDC or MFIP-S 218.5 shall be those counted on October 1 of the current school year. 218.6 The average daily membership used shall be from the current 218.7 school year. 218.8 Sec. 6. Minnesota Statutes 1996, section 124.175, is 218.9 amended to read: 218.10 124.175 [AFDC AND MFIP-S PUPIL COUNT.] 218.11 Each year by March 1, the department of human services 218.12 shall certify to the department of children, families, and 218.13 learning, for each school district, the number of pupils from 218.14 families receiving assistance from either aid to families with 218.15 dependent children or Minnesota family investment 218.16 program-statewide who were enrolled in a public school on 218.17 October 1 of the preceding year. 218.18 Sec. 7. Minnesota Statutes 1996, section 124A.02, 218.19 subdivision 16, is amended to read: 218.20 Subd. 16. [PUPIL UNITS, AFDC AND MFIP-S.] "AFDC and MFIP-S 218.21 pupil units" for fiscal year 1993 and thereafter means pupil 218.22 units identified in section 124.17, subdivision 1d. 218.23 Sec. 8. Minnesota Statutes 1996, section 124A.22, 218.24 subdivision 3, is amended to read: 218.25 Subd. 3. [COMPENSATORY EDUCATION REVENUE.] The 218.26 compensatory education revenue for each district equals the 218.27 formula allowance less $300 times the AFDC and MFIP-S pupil 218.28 units computed according to section 124.17, subdivision 1d. 218.29 Sec. 9. Minnesota Statutes 1996, section 136A.125, 218.30 subdivision 2, is amended to read: 218.31 Subd. 2. [ELIGIBLE STUDENTS.] An applicant is eligible for 218.32 a child care grant if the applicant: 218.33 (1) is a resident of the state of Minnesota; 218.34 (2) has a child 12 years of age or younger, or 14 years of 218.35 age or younger who is handicapped as defined in section 120.03, 218.36 and who is receiving or will receive care on a regular basis 219.1 from a licensed or legal, nonlicensed caregiver; 219.2 (3) is income eligible as determined by the office's 219.3 policies and rules, but is not a recipient of assistance from 219.4 either aid to families with dependent children or Minnesota 219.5 family investment program-statewide; 219.6 (4) has not earned a baccalaureate degree and has been 219.7 enrolled full time less than eight semesters, 12 quarters, or 219.8 the equivalent; 219.9 (5) is pursuing a nonsectarian program or course of study 219.10 that applies to an undergraduate degree, diploma, or 219.11 certificate; 219.12 (6) is enrolled at least half time in an eligible 219.13 institution; and 219.14 (7) is in good academic standing and making satisfactory 219.15 academic progress. 219.16 Sec. 10. Minnesota Statutes 1996, section 196.27, is 219.17 amended to read: 219.18 196.27 [AGENT ORANGE SETTLEMENT PAYMENTS.] 219.19 (a) Payments received by veterans or their dependents 219.20 because of settlements between them and the manufacturers of 219.21 Agent Orange or other chemical agents, as defined in section 219.22 196.21, must not be treated as income (or an available resource) 219.23 of the veterans or their dependents for the purposes of any 219.24 program of public assistance or benefit program administered by 219.25 the department of veterans affairs, the department of human 219.26 services, or other agencies of the state or political 219.27 subdivisions of the state, except as provided in paragraph (b). 219.28 (b) The income and resource exclusion in paragraph (a) does 219.29 not apply to the medical assistance, food stamps,oraid to 219.30 families with dependent children or Minnesota family investment 219.31 program-statewide programs until the commissioner of human 219.32 services receives formal approval from the United States 219.33 Department of Health and Human Services, for the medical 219.34 assistanceand, aid to families with dependent children or 219.35 Minnesota family investment program-statewide programs, and from 219.36 the United States Department of Agriculture, for the food stamps 220.1 program. The income exclusion does not apply to the Minnesota 220.2 supplemental aid program until the commissioner receives formal 220.3 federal approval of the exclusion for the medical assistance 220.4 program. 220.5 Sec. 11. Minnesota Statutes 1996, section 237.70, 220.6 subdivision 4a, is amended to read: 220.7 Subd. 4a. [HOUSEHOLDS ELIGIBLE FOR CREDITS.] The telephone 220.8 assistance plan must provide telephone assistance credit for a 220.9 residential household in Minnesota that meets each of the 220.10 following criteria: 220.11 (1) has a household member who: 220.12 (i) subscribes to local exchange service; and 220.13 (ii) is either disabled or 65 years of age or older; 220.14 (2) whose household income is 150 percent or less of 220.15 federal poverty guidelines or is currently eligible for: 220.16 (i) aid to families with dependent children or Minnesota 220.17 family investment program-statewide; 220.18 (ii) medical assistance; 220.19 (iii) general assistance; 220.20 (iv) Minnesota supplemental aid; 220.21 (v) food stamps; 220.22 (vi) refugee cash assistance or refugee medical assistance; 220.23 (vii) energy assistance; or 220.24 (viii) supplemental security income; and 220.25 (3) who has been certified as eligible for telephone 220.26 assistance plan credits. 220.27 Sec. 12. Minnesota Statutes 1996, section 254B.02, 220.28 subdivision 1, is amended to read: 220.29 Subdivision 1. [CHEMICAL DEPENDENCY TREATMENT ALLOCATION.] 220.30 The chemical dependency funds appropriated for allocation shall 220.31 be placed in a special revenue account. For the fiscal year 220.32 beginning July 1, 1987, funds shall be transferred to operate 220.33 the vendor payment, invoice processing, and collections system 220.34 for one year. The commissioner shall annually transfer funds 220.35 from the chemical dependency fund to pay for operation of the 220.36 drug and alcohol abuse normative evaluation system and to pay 221.1 for all costs incurred by adding two positions for licensing of 221.2 chemical dependency treatment and rehabilitation programs 221.3 located in hospitals for which funds are not otherwise 221.4 appropriated. The commissioner shall annually divide the money 221.5 available in the chemical dependency fund that is not held in 221.6 reserve by counties from a previous allocation. Twelve percent 221.7 of the remaining money must be reserved for treatment of 221.8 American Indians by eligible vendors under section 254B.05. The 221.9 remainder of the money must be allocated among the counties 221.10 according to the following formula, using state demographer data 221.11 and other data sources determined by the commissioner: 221.12 (a) For purposes of this formula, American Indians and 221.13 children under age 14 are subtracted from the population of each 221.14 county to determine the restricted population. 221.15 (b) The amount of chemical dependency fund expenditures for 221.16 entitled persons for services not covered by prepaid plans 221.17 governed by section 256B.69 in the previous year is divided by 221.18 the amount of chemical dependency fund expenditures for entitled 221.19 persons for all services to determine the proportion of exempt 221.20 service expenditures for each county. 221.21 (c) The prepaid plan months of eligibility is multiplied by 221.22 the proportion of exempt service expenditures to determine the 221.23 adjusted prepaid plan months of eligibility for each county. 221.24 (d) The adjusted prepaid plan months of eligibility is 221.25 added to the number of restricted population fee for service 221.26 months of eligibility for aid to families with dependent 221.27 children, Minnesota family investment program-statewide, general 221.28 assistance, and medical assistance and divided by the county 221.29 restricted population to determine county per capita months of 221.30 covered service eligibility. 221.31 (e) The number of adjusted prepaid plan months of 221.32 eligibility for the state is added to the number of fee for 221.33 service months of eligibility for aid to families with dependent 221.34 children, Minnesota family investment program-statewide, general 221.35 assistance, and medical assistance for the state restricted 221.36 population and divided by the state restricted population to 222.1 determine state per capita months of covered service eligibility. 222.2 (f) The county per capita months of covered service 222.3 eligibility is divided by the state per capita months of covered 222.4 service eligibility to determine the county welfare caseload 222.5 factor. 222.6 (g) The median married couple income for the most recent 222.7 three-year period available for the state is divided by the 222.8 median married couple income for the same period for each county 222.9 to determine the income factor for each county. 222.10 (h) The county restricted population is multiplied by the 222.11 sum of the county welfare caseload factor and the county income 222.12 factor to determine the adjusted population. 222.13 (i) $15,000 shall be allocated to each county. 222.14 (j) The remaining funds shall be allocated proportional to 222.15 the county adjusted population. 222.16 Sec. 13. Minnesota Statutes 1996, section 256.01, 222.17 subdivision 2, is amended to read: 222.18 Subd. 2. [SPECIFIC POWERS.] Subject to the provisions of 222.19 section 241.021, subdivision 2, the commissioner of human 222.20 services shall: 222.21 (1) Administer and supervise all forms of public assistance 222.22 provided for by state law and other welfare activities or 222.23 services as are vested in the commissioner. Administration and 222.24 supervision of human services activities or services includes, 222.25 but is not limited to, assuring timely and accurate distribution 222.26 of benefits, completeness of service, and quality program 222.27 management. In addition to administering and supervising human 222.28 services activities vested by law in the department, the 222.29 commissioner shall have the authority to: 222.30 (a) require county agency participation in training and 222.31 technical assistance programs to promote compliance with 222.32 statutes, rules, federal laws, regulations, and policies 222.33 governing human services; 222.34 (b) monitor, on an ongoing basis, the performance of county 222.35 agencies in the operation and administration of human services, 222.36 enforce compliance with statutes, rules, federal laws, 223.1 regulations, and policies governing welfare services and promote 223.2 excellence of administration and program operation; 223.3 (c) develop a quality control program or other monitoring 223.4 program to review county performance and accuracy of benefit 223.5 determinations; 223.6 (d) require county agencies to make an adjustment to the 223.7 public assistance benefits issued to any individual consistent 223.8 with federal law and regulation and state law and rule and to 223.9 issue or recover benefits as appropriate; 223.10 (e) delay or deny payment of all or part of the state and 223.11 federal share of benefits and administrative reimbursement 223.12 according to the procedures set forth in section 256.017; and 223.13 (f) make contracts with and grants to public and private 223.14 agencies and organizations, both profit and nonprofit, and 223.15 individuals, using appropriated funds. 223.16 (2) Inform county agencies, on a timely basis, of changes 223.17 in statute, rule, federal law, regulation, and policy necessary 223.18 to county agency administration of the programs. 223.19 (3) Administer and supervise all child welfare activities; 223.20 promote the enforcement of laws protecting handicapped, 223.21 dependent, neglected and delinquent children, and children born 223.22 to mothers who were not married to the children's fathers at the 223.23 times of the conception nor at the births of the children; 223.24 license and supervise child-caring and child-placing agencies 223.25 and institutions; supervise the care of children in boarding and 223.26 foster homes or in private institutions; and generally perform 223.27 all functions relating to the field of child welfare now vested 223.28 in the state board of control. 223.29 (4) Administer and supervise all noninstitutional service 223.30 to handicapped persons, including those who are visually 223.31 impaired, hearing impaired, or physically impaired or otherwise 223.32 handicapped. The commissioner may provide and contract for the 223.33 care and treatment of qualified indigent children in facilities 223.34 other than those located and available at state hospitals when 223.35 it is not feasible to provide the service in state hospitals. 223.36 (5) Assist and actively cooperate with other departments, 224.1 agencies and institutions, local, state, and federal, by 224.2 performing services in conformity with the purposes of Laws 224.3 1939, chapter 431. 224.4 (6) Act as the agent of and cooperate with the federal 224.5 government in matters of mutual concern relative to and in 224.6 conformity with the provisions of Laws 1939, chapter 431, 224.7 including the administration of any federal funds granted to the 224.8 state to aid in the performance of any functions of the 224.9 commissioner as specified in Laws 1939, chapter 431, and 224.10 including the promulgation of rules making uniformly available 224.11 medical care benefits to all recipients of public assistance, at 224.12 such times as the federal government increases its participation 224.13 in assistance expenditures for medical care to recipients of 224.14 public assistance, the cost thereof to be borne in the same 224.15 proportion as are grants of aid to said recipients. 224.16 (7) Establish and maintain any administrative units 224.17 reasonably necessary for the performance of administrative 224.18 functions common to all divisions of the department. 224.19 (8) Act as designated guardian of both the estate and the 224.20 person of all the wards of the state of Minnesota, whether by 224.21 operation of law or by an order of court, without any further 224.22 act or proceeding whatever, except as to persons committed as 224.23 mentally retarded. 224.24 (9) Act as coordinating referral and informational center 224.25 on requests for service for newly arrived immigrants coming to 224.26 Minnesota. 224.27 (10) The specific enumeration of powers and duties as 224.28 hereinabove set forth shall in no way be construed to be a 224.29 limitation upon the general transfer of powers herein contained. 224.30 (11) Establish county, regional, or statewide schedules of 224.31 maximum fees and charges which may be paid by county agencies 224.32 for medical, dental, surgical, hospital, nursing and nursing 224.33 home care and medicine and medical supplies under all programs 224.34 of medical care provided by the state and for congregate living 224.35 care under the income maintenance programs. 224.36 (12) Have the authority to conduct and administer 225.1 experimental projects to test methods and procedures of 225.2 administering assistance and services to recipients or potential 225.3 recipients of public welfare. To carry out such experimental 225.4 projects, it is further provided that the commissioner of human 225.5 services is authorized to waive the enforcement of existing 225.6 specific statutory program requirements, rules, and standards in 225.7 one or more counties. The order establishing the waiver shall 225.8 provide alternative methods and procedures of administration, 225.9 shall not be in conflict with the basic purposes, coverage, or 225.10 benefits provided by law, and in no event shall the duration of 225.11 a project exceed four years. It is further provided that no 225.12 order establishing an experimental project as authorized by the 225.13 provisions of this section shall become effective until the 225.14 following conditions have been met: 225.15 (a) The proposed comprehensive plan, including estimated 225.16 project costs and the proposed order establishing the waiver, 225.17 shall be filed with the secretary of the senate and chief clerk 225.18 of the house of representatives at least 60 days prior to its 225.19 effective date. 225.20 (b) The secretary of health, education, and welfare of the 225.21 United States has agreed, for the same project, to waive state 225.22 plan requirements relative to statewide uniformity. 225.23 (c) A comprehensive plan, including estimated project 225.24 costs, shall be approved by the legislative advisory commission 225.25 and filed with the commissioner of administration. 225.26 (13)In accordance withAccording to federal requirements, 225.27 establish procedures to be followed by local welfare boards in 225.28 creating citizen advisory committees, including procedures for 225.29 selection of committee members. 225.30 (14) Allocate federal fiscal disallowances or sanctions 225.31 which are based on quality control error rates for the aid to 225.32 families with dependent children, Minnesota family investment 225.33 program-statewide, medical assistance, or food stamp program in 225.34 the following manner: 225.35 (a) One-half of the total amount of the disallowance shall 225.36 be borne by the county boards responsible for administering the 226.1 programs. For the medical assistanceand, AFDC, and MFIP-S 226.2 programs, disallowances shall be shared by each county board in 226.3 the same proportion as that county's expenditures for the 226.4 sanctioned program are to the total of all counties' 226.5 expenditures for the AFDC, MFIP-S and medical assistance 226.6 programs. For the food stamp program, sanctions shall be shared 226.7 by each county board, with 50 percent of the sanction being 226.8 distributed to each county in the same proportion as that 226.9 county's administrative costs for food stamps are to the total 226.10 of all food stamp administrative costs for all counties, and 50 226.11 percent of the sanctions being distributed to each county in the 226.12 same proportion as that county's value of food stamp benefits 226.13 issued are to the total of all benefits issued for all 226.14 counties. Each county shall pay its share of the disallowance 226.15 to the state of Minnesota. When a county fails to pay the 226.16 amount due hereunder, the commissioner may deduct the amount 226.17 from reimbursement otherwise due the county, or the attorney 226.18 general, upon the request of the commissioner, may institute 226.19 civil action to recover the amount due. 226.20 (b) Notwithstanding the provisions of paragraph (a), if the 226.21 disallowance results from knowing noncompliance by one or more 226.22 counties with a specific program instruction, and that knowing 226.23 noncompliance is a matter of official county board record, the 226.24 commissioner may require payment or recover from the county or 226.25 counties, in the manner prescribed in paragraph (a), an amount 226.26 equal to the portion of the total disallowance which resulted 226.27 from the noncompliance, and may distribute the balance of the 226.28 disallowance according to paragraph (a). 226.29 (15) Develop and implement special projects that maximize 226.30 reimbursements and result in the recovery of money to the 226.31 state. For the purpose of recovering state money, the 226.32 commissioner may enter into contracts with third parties. Any 226.33 recoveries that result from projects or contracts entered into 226.34 under this paragraph shall be deposited in the state treasury 226.35 and credited to a special account until the balance in the 226.36 account reaches $1,000,000. When the balance in the account 227.1 exceeds $1,000,000, the excess shall be transferred and credited 227.2 to the general fund. All money in the account is appropriated 227.3 to the commissioner for the purposes of this paragraph. 227.4 (16) Have the authority to make direct payments to 227.5 facilities providing shelter to women and their children 227.6pursuantaccording to section 256D.05, subdivision 3. Upon the 227.7 written request of a shelter facility that has been denied 227.8 payments under section 256D.05, subdivision 3, the commissioner 227.9 shall review all relevant evidence and make a determination 227.10 within 30 days of the request for review regarding issuance of 227.11 direct payments to the shelter facility. Failure to act within 227.12 30 days shall be considered a determination not to issue direct 227.13 payments. 227.14 (17) Have the authority to establish and enforce the 227.15 following county reporting requirements: 227.16 (a) The commissioner shall establish fiscal and statistical 227.17 reporting requirements necessary to account for the expenditure 227.18 of funds allocated to counties for human services programs. 227.19 When establishing financial and statistical reporting 227.20 requirements, the commissioner shall evaluate all reports, in 227.21 consultation with the counties, to determine if the reports can 227.22 be simplified or the number of reports can be reduced. 227.23 (b) The county board shall submit monthly or quarterly 227.24 reports to the department as required by the commissioner. 227.25 Monthly reports are due no later than 15 working days after the 227.26 end of the month. Quarterly reports are due no later than 30 227.27 calendar days after the end of the quarter, unless the 227.28 commissioner determines that the deadline must be shortened to 227.29 20 calendar days to avoid jeopardizing compliance with federal 227.30 deadlines or risking a loss of federal funding. Only reports 227.31 that are complete, legible, and in the required format shall be 227.32 accepted by the commissioner. 227.33 (c) If the required reports are not received by the 227.34 deadlines established in clause (b), the commissioner may delay 227.35 payments and withhold funds from the county board until the next 227.36 reporting period. When the report is needed to account for the 228.1 use of federal funds and the late report results in a reduction 228.2 in federal funding, the commissioner shall withhold from the 228.3 county boards with late reports an amount equal to the reduction 228.4 in federal funding until full federal funding is received. 228.5 (d) A county board that submits reports that are late, 228.6 illegible, incomplete, or not in the required format for two out 228.7 of three consecutive reporting periods is considered 228.8 noncompliant. When a county board is found to be noncompliant, 228.9 the commissioner shall notify the county board of the reason the 228.10 county board is considered noncompliant and request that the 228.11 county board develop a corrective action plan stating how the 228.12 county board plans to correct the problem. The corrective 228.13 action plan must be submitted to the commissioner within 45 days 228.14 after the date the county board received notice of noncompliance. 228.15 (e) The final deadline for fiscal reports or amendments to 228.16 fiscal reports is one year after the date the report was 228.17 originally due. If the commissioner does not receive a report 228.18 by the final deadline, the county board forfeits the funding 228.19 associated with the report for that reporting period and the 228.20 county board must repay any funds associated with the report 228.21 received for that reporting period. 228.22 (f) The commissioner may not delay payments, withhold 228.23 funds, or require repayment under paragraph (c) or (e) if the 228.24 county demonstrates that the commissioner failed to provide 228.25 appropriate forms, guidelines, and technical assistance to 228.26 enable the county to comply with the requirements. If the 228.27 county board disagrees with an action taken by the commissioner 228.28 under paragraph (c) or (e), the county board may appeal the 228.29 action according to sections 14.57 to 14.69. 228.30 (g) Counties subject to withholding of funds under 228.31 paragraph (c) or forfeiture or repayment of funds under 228.32 paragraph (e) shall not reduce or withhold benefits or services 228.33 to clients to cover costs incurred due to actions taken by the 228.34 commissioner under paragraph (c) or (e). 228.35 (18) Allocate federal fiscal disallowances or sanctions for 228.36 audit exceptions when federal fiscal disallowances or sanctions 229.1 are based on a statewide random sample for the foster care 229.2 program under title IV-E of the Social Security Act, United 229.3 States Code, title 42, in direct proportion to each county's 229.4 title IV-E foster care maintenance claim for that period. 229.5 Sec. 14. Minnesota Statutes 1996, section 256.01, 229.6 subdivision 4a, is amended to read: 229.7 Subd. 4a. [TECHNICAL ASSISTANCE FOR IMMUNIZATION 229.8 REMINDERS.] The state agency shall provide appropriate technical 229.9 assistance to county agencies to develop methods to have county 229.10 financial workers remind and encourage recipients of aid to 229.11 families with dependent children, Minnesota family investment 229.12 program-statewide, the Minnesota family investment plan, medical 229.13 assistance, family general assistance, or food stamps whose 229.14 assistance unit includes at least one child under the age of 229.15 five to have each young child immunized against childhood 229.16 diseases. The state agency must examine the feasibility of 229.17 utilizing the capacity of a statewide computer system to assist 229.18 county agency financial workers in performing this function at 229.19 appropriate intervals. 229.20 Sec. 15. Minnesota Statutes 1996, section 256.017, 229.21 subdivision 1, is amended to read: 229.22 Subdivision 1. [AUTHORITY AND PURPOSE.] The commissioner 229.23 shall administer a compliance system for aid to families with 229.24 dependent children, Minnesota family investment 229.25 program-statewide, the food stamp program, emergency assistance, 229.26 general assistance,work readiness,medical assistance, general 229.27 assistance medical care, emergency general assistance, Minnesota 229.28 supplemental assistance, preadmission screening, and alternative 229.29 care grants under the powers and authorities named in section 229.30 256.01, subdivision 2. The purpose of the compliance system is 229.31 to permit the commissioner to supervise the administration of 229.32 public assistance programs and to enforce timely and accurate 229.33 distribution of benefits, completeness of service and efficient 229.34 and effective program management and operations, to increase 229.35 uniformity and consistency in the administration and delivery of 229.36 public assistance programs throughout the state, and to reduce 230.1 the possibility of sanctions and fiscal disallowances for 230.2 noncompliance with federal regulations and state statutes. 230.3 The commissioner shall utilize training, technical 230.4 assistance, and monitoring activities, as specified in section 230.5 256.01, subdivision 2, to encourage county agency compliance 230.6 with written policies and procedures. 230.7 Sec. 16. Minnesota Statutes 1996, section 256.017, 230.8 subdivision 4, is amended to read: 230.9 Subd. 4. [DETERMINING THE AMOUNT OF THE QUALITY CONTROL 230.10 CASE PENALTY.] (a) The amount of the quality control case 230.11 penalty is limited to the amount of the dollar error for the 230.12 quality control sample month in a reviewed case as determined by 230.13 the state quality control review procedures for the aid to 230.14 families with dependent children, Minnesota family investment 230.15 program-statewide and food stamp programs or for any other 230.16 income transfer program for which the commissioner develops a 230.17 quality control program. 230.18 (b) Payment errors in medical assistance or any other 230.19 medical services program for which the department develops a 230.20 quality control program are subject to set rate penalties based 230.21 on the average cost of the specific quality control error 230.22 element for a sample review month for that household size and 230.23 status of institutionalization and as determined from state 230.24 quality control data in the preceding fiscal year for the 230.25 corresponding program. 230.26 (c) Errors identified in negative action cases, such as 230.27 incorrect terminations or denials of assistance are subject to 230.28 set rate penalties based on the average benefit cost of that 230.29 household size as determined from state quality control data in 230.30 the preceding fiscal year for the corresponding program. 230.31 Sec. 17. Minnesota Statutes 1996, section 256.019, is 230.32 amended to read: 230.33 256.019 [RECOVERY OF MONEY; APPORTIONMENT.] 230.34 When an amount is recovered from any source for assistance 230.35 given under the provisions governing public assistance programs 230.36 including aid to families with dependent children, Minnesota 231.1 family investment program-statewide, emergency assistance, 231.2 general assistance,work readiness,and Minnesota supplemental 231.3 aid, there shall be paid to the United States the amount due 231.4 under the terms of the Social Security Act and the balance must 231.5 be paid into the treasury of the state or countyin accordance231.6withaccording to current rates of financial participation; 231.7 except if the recovery is made by a county agency using any 231.8 method other than recoupment, the county may keep one-half of 231.9 the nonfederal share of the recovery. This does not apply to 231.10 recoveries from medical providers or to recoveries begun by the 231.11 department of human services' surveillance and utilization 231.12 review division, state hospital collections unit, and the 231.13 benefit recoveries division or, by the attorney general's 231.14 office, or child support collections. 231.15 Sec. 18. Minnesota Statutes 1996, section 256.031, 231.16 subdivision 5, is amended to read: 231.17 Subd. 5. [FEDERAL WAIVERS.]In accordance withAccording 231.18 to sections 256.031 to 256.0361 and federal laws authorizing the 231.19 program, the commissioner shall seek waivers of federal 231.20 requirements of: United States Code, title 42, section 601 et 231.21 seq., and United States Code, title 7, section 2011 et seq., 231.22 needed to implement the Minnesota family investment plan in a 231.23 manner consistent with the goals and objectives of the program. 231.24 The commissioner shall seek terms from the federal government 231.25 that are consistent with the goals of the Minnesota family 231.26 investment plan. The commissioner shall also seek terms from 231.27 the federal government that will maximize federal financial 231.28 participation so that the extra costs to the state of 231.29 implementing the program are minimized, to the extent that those 231.30 terms are consistent with the goals of the Minnesota family 231.31 investment plan. An agreement with the federal government under 231.32 this section shall provide that the agreements may be canceled 231.33 by the state or federal government upon 180 days' notice or 231.34 immediately upon mutual agreement. If the agreement is 231.35 canceled, families which cease receiving assistance under the 231.36 Minnesota family investment plan who are eligible for the aid to 232.1 families with dependent children, Minnesota family investment 232.2 program-statewide, general assistance, medical assistance, 232.3 general assistance medical care, or the food stamp program must 232.4 be placed with their consent on the programs for which they are 232.5 eligible. 232.6 Sec. 19. Minnesota Statutes 1996, section 256.046, 232.7 subdivision 1, is amended to read: 232.8 Subdivision 1. [HEARING AUTHORITY.] A local agency may 232.9 initiate an administrative fraud disqualification hearing for 232.10 individuals accused of wrongfully obtaining assistance or 232.11 intentional program violations in the aid to families with 232.12 dependent children, Minnesota family investment 232.13 program-statewide or food stamp programs. The hearing is 232.14 subject to the requirements of section 256.045 and the 232.15 requirements in Code of Federal Regulations, title 7, section 232.16 273.16, for the food stamp program and title 45, section 232.17 235.112, for the aid to families with dependent children program. 232.18 Sec. 20. Minnesota Statutes 1996, section 256.935, 232.19 subdivision 1, is amended to read: 232.20 Subdivision 1. On the death of any person receiving public 232.21 assistance through aid to dependent children or MFIP-S, the 232.22 county agency shall pay an amount for funeral expenses not 232.23 exceeding the amount paid for comparable services under section 232.24 261.035 plus actual cemetery charges. No funeral expenses shall 232.25 be paid if the estate of the deceased is sufficient to pay such 232.26 expenses or if the spouse, who was legally responsible for the 232.27 support of the deceased while living, is able to pay such 232.28 expenses; provided, that the additional payment or donation of 232.29 the cost of cemetery lot, interment, religious service, or for 232.30 the transportation of the body into or out of the community in 232.31 which the deceased resided, shall not limit payment by the 232.32 county agency as herein authorized. Freedom of choice in the 232.33 selection of a funeral director shall be granted to persons 232.34 lawfully authorized to make arrangements for the burial of any 232.35 such deceased recipient. In determining the sufficiency of such 232.36 estate, due regard shall be had for the nature and marketability 233.1 of the assets of the estate. The county agency may grant 233.2 funeral expenses where the sale would cause undue loss to the 233.3 estate. Any amount paid for funeral expenses shall be a prior 233.4 claim against the estate, as provided in section 524.3-805, and 233.5 any amount recovered shall be reimbursed to the agency which 233.6 paid the expenses. The commissioner shall specify requirements 233.7 for reports, including fiscal reports, according to section 233.8 256.01, subdivision 2, paragraph (17). The state share of 233.9 county agency expenditures shall be 50 percent and the county 233.10 share shall be 50 percent. Benefits shall be issued to 233.11 recipients by the state or county and funded according to 233.12 section 256.025, subdivision 3, subject to provisions of section 233.13 256.017. 233.14 Beginning July 1, 1991, the state will reimburse counties 233.15 according to the payment schedule set forth in section 256.025 233.16 for the county share of county agency expenditures made under 233.17 this subdivision from January 1, 1991, on. Payment under this 233.18 subdivision is subject to the provisions of section 256.017. 233.19 Sec. 21. Minnesota Statutes 1996, section 256.98, 233.20 subdivision 8, is amended to read: 233.21 Subd. 8. [DISQUALIFICATION FROM PROGRAM.] Any person found 233.22 to be guilty of wrongfully obtaining assistance by a federal or 233.23 state court or by an administrative hearing determination, or 233.24 waiver thereof, through a disqualification consent agreement, or 233.25 as part of any approved diversion plan under section 401.065 in 233.26 the aid to families with dependent children, Minnesota family 233.27 investment program-statewide program, the food stamp program, 233.28 the Minnesota family investment plan, the general assistance or 233.29 family general assistance program, or the Minnesota supplemental 233.30 aid program, or the work readiness programshall be disqualified 233.31 from that program. The needs of that individual shall not be 233.32 taken into consideration in determining the grant level for that 233.33 assistance unit: 233.34 (1) for six months after the first offense; 233.35 (2) for 12 months after the second offense; and 233.36 (3) permanently after the third or subsequent offense. 234.1 The period of program disqualification shall begin on the 234.2 date stipulated on the advance notice of disqualification 234.3 without possibility of postponement for administrative stay or 234.4 administrative hearing and shall continue through completion 234.5 unless and until the findings upon which the sanctions were 234.6 imposed are reversed by a court of competent jurisdiction. The 234.7 period for which sanctions are imposed is not subject to 234.8 review. The sanctions provided under this subdivision are in 234.9 addition to, and not in substitution for, any other sanctions 234.10 that may be provided for by law for the offense involved. A 234.11 disqualification established through hearing or waiver shall 234.12 result in the disqualification period beginning immediately 234.13 unless the person has become otherwise ineligible for 234.14 assistance. If the person is ineligible for assistance, the 234.15 disqualification period begins when the person again meets the 234.16 eligibility criteria of the program from which they were 234.17 disqualified. 234.18 Sec. 22. Minnesota Statutes 1996, section 256.981, is 234.19 amended to read: 234.20 256.981 [TRAINING OF WELFARE FRAUD PROSECUTORS.] 234.21 The commissioner of human services shall, to the extent an 234.22 appropriation is provided for this purpose, contract with the 234.23 county attorney's council or other public or private entity 234.24 experienced in providing training for prosecutors to conduct 234.25 quarterly workshops and seminars focusing on current aid to 234.26 families with dependent children and Minnesota family investment 234.27 program-statewide program issues, other income maintenance 234.28 program changes, recovery issues, alternative sentencing 234.29 methods, use of technical aids for interviews and 234.30 interrogations, and other matters affecting prosecution of 234.31 welfare fraud cases. 234.32 Sec. 23. Minnesota Statutes 1996, section 256.983, 234.33 subdivision 1, is amended to read: 234.34 Subdivision 1. [PROGRAMS ESTABLISHED.] Within the limits 234.35 of available appropriations, and to the extent required or 234.36 authorized by applicable federal regulations, the commissioner 235.1 of human services shall require the establishment of fraud 235.2 prevention investigation programs in the seven counties 235.3 participating in the fraud prevention investigation pilot 235.4 project established under this section, and in 11 additional 235.5 Minnesota counties with the largest aid to families with 235.6 dependent children program caseloads as of July 1, 1991. If 235.7 funds are sufficient, the commissioner may also extend fraud 235.8 prevention investigation programs to: (1) other counties that 235.9 have welfare fraud control programs already in place based on 235.10 enhanced funding contracts covering the fraud investigation 235.11 function;and(2) counties that have the largest AFDC caseloads 235.12 as of July 1, 1994, and are not currently participating in the 235.13 fraud prevention investigation pilot project; and (3) counties 235.14 with the largest MFIP-S caseloads as of July 1 of years after 235.15 1997, that are not currently participating in the fraud 235.16 prevention investigation program. The pilot project may be 235.17 expanded provided the expansion is budget neutral to the state. 235.18 Sec. 24. Minnesota Statutes 1996, section 256.983, 235.19 subdivision 4, is amended to read: 235.20 Subd. 4. [FUNDING.] (a) Every involved county agency shall 235.21 either have in place or obtain an approved contract which meets 235.22 all federal requirements necessary to obtain enhanced federal 235.23 funding for its welfare fraud control and fraud prevention 235.24 investigation programs. County agency reimbursement shall be 235.25 made through the settlement provisions applicable to the aid to 235.26 families with dependent children, Minnesota family investment 235.27 program-statewide and food stamp programs. 235.28 (b) After allowing an opportunity to establish compliance, 235.29 the commissioner will deny administrative reimbursement if for 235.30 any three-month period during any grant year, a county agency 235.31 fails to comply with fraud investigation guidelines, or fails to 235.32 meet the cost-effectiveness standards developed by the 235.33 commissioner. This result is contingent on the commissioner 235.34 providing written notice, including an offer of technical 235.35 assistance, within 30 days of the end of the third or subsequent 235.36 month of noncompliance. The county agency shall be required to 236.1 submit a corrective action plan to the commissioner within 30 236.2 days of receipt of a notice of noncompliance. Failure to submit 236.3 a corrective action plan or, continued deviation from standards 236.4 of more than ten percent after submission of a corrective action 236.5 plan, will result in denial of funding for each subsequent month 236.6 during the grant year or billing the county agency for fraud 236.7 prevention investigation (FPI) service provided by the 236.8 commissioner. The denial of funding shall apply to the general 236.9 settlement received by the county agency on a quarterly basis 236.10 and shall not reduce the grant amount applicable to the FPI 236.11 project. 236.12 Sec. 25. Minnesota Statutes 1996, section 256.9850, is 236.13 amended to read: 236.14 256.9850 [IDENTITY VERIFICATION.] 236.15 The commissioner of human services shall seek from the 236.16 Secretary of Health and Human Services all necessary waivers of 236.17 the requirements of the program of AFDC or Minnesota family 236.18 investment program-statewide, to enable the commissioner to 236.19 establish a statewide program to test the effectiveness of 236.20 identity verification systems in the electronic benefit transfer 236.21 systems in the state AFDC program or Minnesota family investment 236.22 program-statewide. Identity verification provisions shall be 236.23 added to the statewide requests for proposal on the expansion of 236.24 electronic benefit transfer systems in the AFDC program or 236.25 Minnesota family investment program-statewide. 236.26 Sec. 26. Minnesota Statutes 1996, section 256.9861, 236.27 subdivision 5, is amended to read: 236.28 Subd. 5. [FUNDING.] (a) Grant funds are intended to help 236.29 offset the reduction in federal financial participation to 50 236.30 percent and may be apportioned to the participating counties 236.31 whenever feasible, and within the commissioner's discretion, to 236.32 achieve this goal. State funding shall be made available 236.33 contingent on counties submitting a plan that is approved by the 236.34 department of human services. Failure or delay in obtaining 236.35 that approval shall not, however, eliminate the obligation to 236.36 maintain fraud control efforts at the January 1, 1995, level. 237.1 Additional counties may be added to the project to the extent 237.2 that funds are subsequently made available. Every involved 237.3 county must meet all federal requirements necessary to obtain 237.4 federal funding for its welfare fraud control and prevention 237.5 programs. County agency reimbursement shall be made through the 237.6 settlement provisions applicable to the AFDC, Minnesota family 237.7 investment program-statewide and food stamp programs. 237.8 (b) Should a county agency fail to comply with the 237.9 standards set, or fail to meet cost-effectiveness standards 237.10 developed by the commissioner for three months during any grant 237.11 year, the commissioner shall deny reimbursement or 237.12 administrative costs, after allowing an opportunity to establish 237.13 compliance. 237.14 (c) Any denial of reimbursement under paragraph (b) is 237.15 contingent on the commissioner providing written notice, 237.16 including an offer of technical assistance, within 30 days of 237.17 the end of the third or subsequent months of noncompliance. The 237.18 county agency shall be required to submit a corrective action 237.19 plan to the commissioner within 30 days of receipt of a notice 237.20 of noncompliance. Failure to submit a corrective action plan or 237.21 continued deviation from standards of more than ten percent 237.22 after submission of corrective action plan, will result in 237.23 denial of funding for each such month during the grant year, or 237.24 billing the county agency for program integrity reinvestment 237.25 project services provided by the commissioner. The denial of 237.26 funding shall apply to the general settlement received by the 237.27 county agency on a quarterly basis and shall not reduce the 237.28 grant amount applicable to the program integrity reinvestment 237.29 project. 237.30 Sec. 27. Minnesota Statutes 1996, section 256E.03, 237.31 subdivision 2, is amended to read: 237.32 Subd. 2. (a) "Community social services" means services 237.33 provided or arranged for by county boards to fulfill the 237.34 responsibilities prescribed in section 256E.08, subdivision 1, 237.35 to the following groups of persons: 237.36 (1) families with children under age 18, who are 238.1 experiencing child dependency, neglect or abuse, and also 238.2 pregnant adolescents, adolescent parents under the age of 18, 238.3 and their children; 238.4 (2) persons who are under the guardianship of the 238.5 commissioner of human services as dependent and neglected wards; 238.6 (3) adults who are in need of protection and vulnerable as 238.7 defined in section 626.5572; 238.8 (4) persons age 60 and over who are experiencing difficulty 238.9 living independently and are unable to provide for their own 238.10 needs; 238.11 (5) emotionally disturbed children and adolescents, 238.12 chronically and acutely mentally ill persons who are unable to 238.13 provide for their own needs or to independently engage in 238.14 ordinary community activities; 238.15 (6) persons with mental retardation as defined in section 238.16 252A.02, subdivision 2, or with related conditions as defined in 238.17 section 252.27, subdivision 1a, who are unable to provide for 238.18 their own needs or to independently engage in ordinary community 238.19 activities; 238.20 (7) drug dependent and intoxicated persons as defined in 238.21 section 254A.02, subdivisions 5 and 7, and persons at risk of 238.22 harm to self or others due to the ingestion of alcohol or other 238.23 drugs; 238.24 (8) parents whose income is at or below 70 percent of the 238.25 state median income and who are in need of child care services 238.26 in order to secure or retain employment or to obtain the 238.27 training or education necessary to secure employment; and 238.28 (9) other groups of persons who, in the judgment of the 238.29 county board, are in need of social services. 238.30 (b) Except as provided in section 256E.08, subdivision 5, 238.31 community social services do not include public assistance 238.32 programs known as aid to families with dependent children, 238.33 Minnesota family investment program-statewide, Minnesota 238.34 supplemental aid, medical assistance, general assistance, 238.35 general assistance medical care, or community health services 238.36 authorized by sections 145A.09 to 145A.13. 239.1 Sec. 28. Minnesota Statutes 1996, section 256E.06, 239.2 subdivision 1, is amended to read: 239.3 Subdivision 1. [FORMULA.] The commissioner of human 239.4 services shall distribute community social service aids to each 239.5 county board in an amount determined according to the following 239.6 formula: 239.7 In calendar year 1982 and thereafter: 239.8 (a) One-third shall be distributed on the basis of the 239.9 average unduplicated number of persons who receive AFDC, 239.10 Minnesota family investment program-statewide, general 239.11 assistance, and medical assistance per month in the calendar 239.12 year two years prior to the year for which funds are being 239.13 distributed as reported in the average monthly caseload reports 239.14 required under sections 256.01, 256B.04 and 256D.04, and 239.15 certified by the commissioner of human services; and 239.16 (b) One-third shall be distributed on the basis of the 239.17 number of persons residing in the county as determined by the 239.18 most recent data of the state demographer; 239.19 (c) One-third shall be distributed on the basis of the 239.20 number of persons residing in the county who are 65 years old or 239.21 older as determined by the most recent data of the state 239.22 demographer. 239.23 Sec. 29. Minnesota Statutes 1996, section 256E.06, 239.24 subdivision 3, is amended to read: 239.25 Subd. 3. [PAYMENTS TO COUNTIES.] The commissioner of human 239.26 services shall make payments for community social services to 239.27 each county in four installments per year. The commissioner of 239.28 human services may certify the payments for the first three 239.29 months of a calendar year based on estimates of the unduplicated 239.30 number of persons receiving AFDC, Minnesota family investment 239.31 program-statewide, general assistance and medical assistance for 239.32 the prior year. The following three payments shall be adjusted 239.33 to reflect the actual unduplicated number of persons who 239.34 received AFDC, Minnesota family investment program-statewide, 239.35 general assistance and medical assistance as required by 239.36 subdivision 1. The commissioner shall ensure that the pertinent 240.1 payment of the allotment for that quarter is made to each county 240.2 on the first working day after the end of each quarter of the 240.3 calendar year, except for the last quarter of the calendar 240.4 year. The commissioner shall ensure that each county receives 240.5 its payment of the allotment for that quarter no later than the 240.6 last working day of that quarter. This scheduling of payments 240.7 does not require compliance with subdivision 10. 240.8 Sec. 30. Minnesota Statutes 1996, section 256E.07, 240.9 subdivision 1, is amended to read: 240.10 Subdivision 1. [FORMULA.] In federal fiscal year 1985 and 240.11 subsequent years, money for social services that is received 240.12 from the federal government to reimburse counties for social 240.13 service expenditurespursuantaccording to title XX of the 240.14 Social Security Act shall be allocated to each county according 240.15 to the following formula: 240.16 (a) Two-thirds shall be allocated on the basis of the 240.17 annual average number of unduplicated active monthly caseloads 240.18 in each county in the following programs: aid to families with 240.19 dependent children, Minnesota family investment 240.20 program-statewide, medical assistance, general assistance, 240.21 supplementary security income, and Minnesota supplemental aid. 240.22 (b) One-third shall be allocated on the basis of the number 240.23 of persons residing in the county as determined by the most 240.24 recent estimate of the state demographer. 240.25 (c) The commissioner shall allocate to the counties 240.26pursuantaccording to this section the total money received from 240.27 the federal government for social servicespursuantaccording to 240.28 title XX of the Social Security Act, except that portion of the 240.29 state's allocation which the legislature authorizes for 240.30 administrative purposes and for migrant day care. 240.31 Sec. 31. Minnesota Statutes 1996, section 256E.08, 240.32 subdivision 3, is amended to read: 240.33 Subd. 3. [ADMINISTRATION OF INCOME MAINTENANCE PROGRAMS.] 240.34 The county board may designate itself, a human services board, 240.35 or a local social services agency to perform the functions of 240.36 local social services agencies as prescribed in chapter 393 and 241.1 assigned to county agencies in other law which pertains to the 241.2 administration of income maintenance programs known as aid to 241.3 families with dependent children, Minnesota family investment 241.4 program-statewide, general assistance, Minnesota supplemental 241.5 aid, medical assistance, general assistance medical care, and 241.6 emergency assistance. 241.7 Sec. 32. Minnesota Statutes 1996, section 256F.05, 241.8 subdivision 5, is amended to read: 241.9 Subd. 5. [INAPPROPRIATE EXPENDITURES.] Family preservation 241.10 fund basic, placement earnings, and development grant money must 241.11 not be used for: 241.12 (1) child day care necessary solely because of the 241.13 employment or training to prepare for employment, of a parent or 241.14 other relative with whom the child is living; 241.15 (2) residential facility payments; 241.16 (3) adoption assistance payments; 241.17 (4) public assistance payments for aid to families with 241.18 dependent children, Minnesota family investment 241.19 program-statewide, supplemental aid, medical assistance, general 241.20 assistance, general assistance medical care, or community health 241.21 services authorized by sections 145A.09 to 145A.13; or 241.22 (5) administrative costs for local social services agency 241.23 public assistance staff. 241.24 Sec. 33. Minnesota Statutes 1996, section 256G.01, 241.25 subdivision 4, is amended to read: 241.26 Subd. 4. [ADDITIONAL COVERAGE.] The provisions in sections 241.27 256G.02, subdivision 4, paragraphs (a) to (d); 256G.02, 241.28 subdivisions 5 to 8; 256G.03; 256G.04; 256G.05; and 256G.07, 241.29 subdivisions 1 to 3, apply to the following programs: aid to 241.30 families with dependent children, Minnesota family investment 241.31 program-statewide; medical assistance; general assistance; 241.32 family general assistance; general assistance medical care; and 241.33 Minnesota supplemental aid. 241.34 Sec. 34. Minnesota Statutes 1996, section 257.3573, 241.35 subdivision 2, is amended to read: 241.36 Subd. 2. [INAPPROPRIATE EXPENDITURES.] Indian child 242.1 welfare grant money must not be used for: 242.2 (1) child day care necessary solely because of employment 242.3 or training for employment of a parent or other relative with 242.4 whom the child is living; 242.5 (2) foster care maintenance or difficulty of care payments; 242.6 (3) residential facility payments; 242.7 (4) adoption assistance payments; 242.8 (5) public assistance payments for aid to families with 242.9 dependent children, Minnesota family investment 242.10 program-statewide, supplemental aid, medical assistance, general 242.11 assistance, general assistance medical care, or community health 242.12 services authorized by sections 145A.01 to 145A.14; or 242.13 (6) administrative costs for income maintenance staff. 242.14 Sec. 35. Minnesota Statutes 1996, section 260.38, is 242.15 amended to read: 242.16 260.38 [COST, PAYMENT.] 242.17 In addition to the usual care and services given by public 242.18 and private agencies, the necessary cost incurred by the 242.19 commissioner of human services in providing care for such child 242.20 shall be paid by the county committing such child which, subject 242.21 to uniform rules established by the commissioner of human 242.22 services, may receive a reimbursement not exceeding one-half of 242.23 such costs from funds made available for this purpose by the 242.24 legislature during the period beginning July 1, 1985, and ending 242.25 December 31, 1985. Beginning January 1, 1986, the necessary 242.26 cost incurred by the commissioner of human services in providing 242.27 care for the child must be paid by the county committing the 242.28 child. Where such child is eligible to receive a grant of aid 242.29 to families with dependent children, Minnesota family investment 242.30 program-statewide or supplemental security income for the aged, 242.31 blind, and disabled, or a foster care maintenance payment under 242.32 Title IV-E of the Social Security Act, United States Code, title 242.33 42, sections 670 to 676, the child's needs shall be met through 242.34 these programs. 242.35 Sec. 36. Minnesota Statutes 1996, section 268.0111, 242.36 subdivision 5, is amended to read: 243.1 Subd. 5. [INCOME MAINTENANCE AND SUPPORT SERVICES.] 243.2 "Income maintenance and support services" means programs through 243.3 which the state or its subdivisions provide direct financial or 243.4 in-kind support to unemployed or underemployed persons, 243.5 including reemployment insurance, aid to families with dependent 243.6 children, Minnesota family investment program-statewide, general 243.7 assistance,work readiness assistance,food stamps, energy 243.8 assistance, disability determinations, and child care. Income 243.9 maintenance and support services do not include medical 243.10 assistance, aging services, social services, community social 243.11 services, mental health services, or services for the 243.12 emotionally disturbed, the mentally retarded, or residents of 243.13 nursing homes. 243.14 Sec. 37. Minnesota Statutes 1996, section 268.0111, 243.15 subdivision 7, is amended to read: 243.16 Subd. 7. [PUBLIC ASSISTANCE.] "Public assistance" means 243.17 aid to families with dependent children, Minnesota family 243.18 investment program-statewide and general assistance, and work243.19readiness. 243.20 Sec. 38. Minnesota Statutes 1996, section 268.0122, 243.21 subdivision 3, is amended to read: 243.22 Subd. 3. [DUTIES AS A STATE AGENCY.] The commissioner 243.23 shall: 243.24 (1) administer the unemployment insurance laws and related 243.25 programs; 243.26 (2) administer the aspects of aid to families with 243.27 dependent children, Minnesota family investment 243.28 program-statewide, general assistance,work readiness,and food 243.29 stamps that relate to employment and training services, subject 243.30 to the contract under section 268.86, subdivision 2; 243.31 (3) administer wage subsidies and the discretionary 243.32 employment and training fund; 243.33 (4) administer a national system of public employment 243.34 offices as prescribed by United States Code, title 29, chapter 243.35 4B, the Wagner-Peyser Act, and other federal employment and 243.36 training programs; 244.1 (5) cooperate with the federal government and its 244.2 employment and training agencies in any reasonable manner as 244.3 necessary to qualify for federal aid for employment and training 244.4 services and money; 244.5 (6) enter into agreements with other departments of the 244.6 state and local units of government as necessary; 244.7 (7) certify employment and training service providers and 244.8 decertify service providers that fail to comply with performance 244.9 criteria according to standards established by the commissioner; 244.10 (8) provide consistent, integrated employment and training 244.11 services across the state; 244.12 (9) establish the standards for all employment and training 244.13 services administered under this chapter; 244.14 (10) develop standards for the contents and structure of 244.15 the local service unit plans and plans for Indian tribe 244.16 employment and training services; 244.17 (11) provide current state and substate labor market 244.18 information and forecasts, in cooperation with other agencies; 244.19 (12) identify underserved populations, unmet service needs, 244.20 and funding requirements; 244.21 (13) consult with the council for the blind on matters 244.22 pertaining to programs and services for the blind and visually 244.23 impaired; and 244.24 (14) enter into agreements with Indian tribes as necessary 244.25 to provide employment and training services as funds become 244.26 available. 244.27 Sec. 39. Minnesota Statutes 1996, section 268.552, 244.28 subdivision 5, is amended to read: 244.29 Subd. 5. [ALLOCATION TO APPLICANTS.] Priority for 244.30 subsidies shall be in the following order: 244.31 (1) applicants living in households with no other income 244.32 source; 244.33 (2) applicants whose incomes and resources are less than 244.34 the standard for eligibility for general assistanceor work244.35readiness; and 244.36 (3) applicants who are eligible for aid to families with 245.1 dependent children or Minnesota family investment 245.2 program-statewide. 245.3 Sec. 40. Minnesota Statutes 1996, section 268.6751, 245.4 subdivision 1, is amended to read: 245.5 Subdivision 1. [WAGE SUBSIDIES.] Wage subsidy money must 245.6 be allocated to local service units in the following manner: 245.7 (a) The commissioner shall allocate 87.5 percent of the 245.8 funds available for allocation to local service units for wage 245.9 subsidy programs as follows: the proportion of the wage subsidy 245.10 money available to each local service unit must be based on the 245.11 number of unemployed persons in the local service unit for the 245.12 most recent six-month period and the number ofwork readiness245.13assistance cases andaid to families with dependent children and 245.14 Minnesota family investment program-statewide cases in the local 245.15 service unit for the most recent six-month period. 245.16 (b) Five percent of the money available for wage subsidy 245.17 programs must be allocated at the discretion of the commissioner. 245.18 (c) Seven and one-half percent of the money available for 245.19 wage subsidy programs must be allocated at the discretion of the 245.20 commissioner to provide jobs for residents of federally 245.21 recognized Indian reservations. 245.22 (d) By December 31 of each fiscal year, providers and local 245.23 service units receiving wage subsidy money shall report to the 245.24 commissioner on the use of allocated funds. The commissioner 245.25 shall reallocate uncommitted funds for each fiscal year 245.26 according to the formula in paragraph (a). 245.27 Sec. 41. Minnesota Statutes 1996, section 268.676, 245.28 subdivision 1, is amended to read: 245.29 Subdivision 1. [AMONG JOB APPLICANTS.] At least 80 percent 245.30 of funds allocated among eligible job applicants statewide must 245.31 be allocated to: 245.32 (1) applicants living in households with no other income 245.33 source; 245.34 (2) applicants whose incomes and resources are less than 245.35 the standards for eligibility for general assistanceor work245.36readiness; 246.1 (3) applicants who are eligible for aid to families with 246.2 dependent children or Minnesota family investment 246.3 program-statewide; and 246.4 (4) applicants who live in a farm household who demonstrate 246.5 severe household financial need. 246.6 Sec. 42. Minnesota Statutes 1996, section 268.86, 246.7 subdivision 2, is amended to read: 246.8 Subd. 2. [INTERAGENCY AGREEMENTS.] By October 1, 1987, the 246.9 commissioner and the commissioner of human services shall enter 246.10 into a written contract for the design, delivery, and 246.11 administration of employment and training services for 246.12 applicants for or recipients of food stampsor, aid to families 246.13 with dependent childrenand work readinessor Minnesota family 246.14 investment program-statewide, including AFDC and MFIP-S 246.15 employment and training programs,and general assistanceor work246.16readiness grant diversion. The contract must address: 246.17 (1) specific roles and responsibilities of each department; 246.18 (2) assignment and supervision of staff for interagency 246.19 activities including any necessary interagency employee mobility 246.20 agreements under the administrative procedures of the department 246.21 of employee relations; 246.22 (3) mechanisms for determining the conditions under which 246.23 individuals participate in services, their rights and 246.24 responsibilities while participating, and the standards by which 246.25 the services must be administered; 246.26 (4) procedures for providing technical assistance to local 246.27 service units, Indian tribes, and employment and training 246.28 service providers; 246.29 (5) access to appropriate staff for ongoing development and 246.30 interpretation of policy, rules, and program standards; 246.31 (6) procedures for reimbursing appropriate agencies for 246.32 administrative expenses; and 246.33 (7) procedures for accessing available federal funds. 246.34 Sec. 43. Minnesota Statutes 1996, section 268.871, 246.35 subdivision 1, is amended to read: 246.36 Subdivision 1. [RESPONSIBILITY AND CERTIFICATION.] (a) 247.1 Unless prohibited by federal law or otherwise determined by 247.2 state law, a local service unit is responsible for the delivery 247.3 of employment and training services. After February 1, 1988, 247.4 employment and training services must be delivered by certified 247.5 employment and training service providers. 247.6 (b) The local service unit's employment and training 247.7 service provider must meet the certification standards in this 247.8 subdivision in order to be certified to deliver any of the 247.9 following employment and training services and programs: wage 247.10 subsidies;work readiness; work readiness andgeneral assistance 247.11 grant diversion; food stamp employment and training programs; 247.12 community work experience programs; AFDC or MFIP-S job search; 247.13 AFDC or MFIP-S grant diversion; AFDC or MFIP-S on-the-job 247.14 training; and AFDC or MFIP-S case management. 247.15 (c) The commissioner shall certify a local service unit's 247.16 service provider to provide these employment and training 247.17 services and programs if the commissioner determines that the 247.18 provider has: 247.19 (1) past experience in direct delivery of the programs 247.20 specified in paragraph (b); 247.21 (2) staff capabilities and qualifications, including 247.22 adequate staff to provide timely and effective services to 247.23 clients, and proven staff experience in providing specific 247.24 services such as assessments, career planning, job development, 247.25 job placement, support services, and knowledge of community 247.26 services and educational resources; 247.27 (3) demonstrated effectiveness in providing services to 247.28 public assistance recipients and other economically 247.29 disadvantaged clients; and 247.30 (4) demonstrated administrative capabilities, including 247.31 adequate fiscal and accounting procedures, financial management 247.32 systems, participant data systems, and record retention 247.33 procedures. 247.34 (d) When the only service provider that meets the criterion 247.35 in paragraph (c), clause (1), has been decertified,pursuant247.36 according to subdivision 1a, in that local service unit, the 248.1 following criteria shall be substituted: past experience in 248.2 direct delivery of multiple, coordinated, nonduplicative 248.3 services, including outreach, assessments, identification of 248.4 client barriers, employability development plans, and provision 248.5 or referral to support services. 248.6 (e) The commissioner shall certify providers of the 248.7 Minnesota family investment plan case management services as 248.8 defined in section 256.032, subdivision 3. Providers must meet 248.9 the standards defined in paragraph (c), except that past 248.10 experience under paragraph (c), clause (1), must be in services 248.11 and programs similar to those specified in section 256.032, 248.12 subdivision 3. 248.13 Employment and training service providers shall be 248.14 certified by the commissioner for two fiscal years beginning 248.15 July 1, 1991, and every second year thereafter. 248.16 Sec. 44. Minnesota Statutes 1996, section 268.90, 248.17 subdivision 2, is amended to read: 248.18 Subd. 2. [EMPLOYMENT CONDITIONS.] (a) An eligible 248.19 nonprofit or public employer may not terminate, lay off, or 248.20 reduce the regular working hours of an employee for the purpose 248.21 of hiring an individual with money available under this 248.22 program. An eligible employer may not hire an individual with 248.23 money available through this program if any other person is on 248.24 layoff from the same or a substantially equivalent job. 248.25 (b) Community investment program participants are employees 248.26 of the project employer within the meaning of workers' 248.27 compensation laws, personal income tax, and the federal 248.28 insurance contribution act, but not retirement or civil service 248.29 laws. 248.30 (c) Each project and job must comply with all applicable 248.31 affirmative action, fair labor, health, safety, and 248.32 environmental standards. 248.33 (d) Individuals employed under the community investment 248.34 program must be paid a wage at the same wage rates as work site 248.35 or employees doing comparable work in that locality, unless 248.36 otherwise specified in law. 249.1 (e) Recipients of aid to families with dependent 249.2 children or Minnesota family investment program-statewide who 249.3 are eligible on the basis of an unemployed parent may not have 249.4 available more than 100 hours a month. All employees are 249.5 limited to 32 hours or four days a week, so that they can 249.6 continue to seek full-time private sector employment, unless 249.7 otherwise specified in law. 249.8 (f) The commissioner shall establish, by rule, the terms 249.9 and conditions governing the participation of appropriate public 249.10 assistance recipients. The rules must, at a minimum, establish 249.11 the procedures by which the minimum and maximum number of work 249.12 hours and maximum allowable travel distances are determined, the 249.13 amounts and methods by which work expenses will be paid, and the 249.14 manner in which support services will be provided. The rules 249.15 must also provide for periodic reviews of clients continuing 249.16 employment in community investment programs. 249.17 (g) Participation in a community investment program by a 249.18 recipient of aid to families with dependent children, Minnesota 249.19 family investment program-statewide or general assistance is 249.20 voluntary; however, work readiness registrants may be required249.21to participate. 249.22 Sec. 45. Minnesota Statutes 1996, section 268.916, is 249.23 amended to read: 249.24 268.916 [REPORTS.] 249.25 Each grantee shall submit an annual report to the 249.26 commissioner on the format designated by the commissioner, 249.27 including program information report data. By January 1 of each 249.28 year, the commissioner shall prepare an annual report to the 249.29 health and human services committee of the house of 249.30 representatives and the family services committee of the senate 249.31 concerning the uses and impact of head start supplemental 249.32 funding, including a summary of innovative programs and the 249.33 results of innovative programs and an evaluation of the 249.34 coordination of head start programs with employment and training 249.35 services provided to AFDC and MFIP-S recipients. 249.36 Sec. 46. Minnesota Statutes 1996, section 268.95, 250.1 subdivision 4, is amended to read: 250.2 Subd. 4. [PILOT PROGRAM.] The commissioner shall develop a 250.3 pilot program, in cooperation with the commissioners of trade 250.4 and economic development and human services, to enable 250.5 low-income persons to start or expand self-employment 250.6 opportunities or home-based businesses that are designed to make 250.7 the individual entrepreneurs economically independent. The 250.8 commissioner of human services shall seek necessary waivers from 250.9 federal regulations to allow recipients of aid to families with 250.10 dependent children or Minnesota family investment 250.11 program-statewide to participate and retain eligibility while 250.12 establishing a business. 250.13 Sec. 47. Minnesota Statutes 1996, section 393.07, 250.14 subdivision 6, is amended to read: 250.15 Subd. 6. [PURCHASE OF EQUIPMENT TO AID WELFARE 250.16 RECIPIENTS.] Every local social services agency authorizing 250.17 braces, crutches, trusses, wheel chairs and hearing aids for use 250.18 by recipients of supplemental security income for the aged, 250.19 blind and disabled, aid to families with dependent children or 250.20 Minnesota family investment program-statewide and relief shall 250.21 secure such devices at the lowest cost obtainable conducive to 250.22 the well being of the recipient and fix the recipient's grant in 250.23 an amount to cover the cost of the device providing it will be 250.24 purchased at the lowest cost obtainable, or may make payment for 250.25 the device directly to the vendor. 250.26 Sec. 48. Minnesota Statutes 1996, section 477A.0122, 250.27 subdivision 2, is amended to read: 250.28 Subd. 2. [DEFINITIONS.] For purposes of this section, the 250.29 following definitions apply: 250.30 (a) "Children in out-of-home placement" means the total 250.31 unduplicated number of children in out-of-home care as reported 250.32pursuantaccording to section 257.0725. 250.33 (b) "Family preservation programs" means family-based 250.34 services as defined in section 256F.03, subdivision 5, families 250.35 first services, parent and child education programs, and day 250.36 treatment services provided in cooperation with a school 251.1 district or other programs as defined by the commissioner of 251.2 human services. 251.3 (c) "Income maintenance caseload" means average monthly 251.4 number of AFDC or Minnesota family investment program-statewide 251.5 cases for the calendar year. 251.6 By July 1, 1994, the commissioner of human services shall 251.7 certify to the commissioner of revenue the number of children in 251.8 out-of-home placement in 1991 and 1992 for each county and the 251.9 income maintenance caseload for each county for the most recent 251.10 year available. By July 1 of each subsequent year, the 251.11 commissioner of human services shall certify to the commissioner 251.12 of revenue the income maintenance caseload for each county for 251.13 the most recent calendar year available. 251.14 Sec. 49. [REVISOR INSTRUCTION.] 251.15 The revisor of statutes shall identify in Minnesota 251.16 Statutes and Minnesota Rules all references to aid to families 251.17 with dependent children and AFDC. 251.18 The revisor shall prepare a report by January 1, 1998, for 251.19 the 1998 legislature showing where these changes were made. 251.20 Sec. 50. [EFFECTIVE DATE.] 251.21 Sections 1 to 48 are effective July 1, 1997. 251.22 ARTICLE 5 251.23 CORPS TO CAREER PROGRAM 251.24 Section 1. Minnesota Statutes 1996, section 84.0887, 251.25 subdivision 2, is amended to read: 251.26 Subd. 2. [ADDITIONAL SERVICES; CORPS TO CAREER COMMUNITY 251.27 SERVICE.] (a) In addition to services under subdivision 1, youth 251.28 corps programs may coordinate with or provide services to: 251.29 (1) making public facilities accessible to individuals with 251.30 disabilities; 251.31 (2) federal, state, local, and regional governmental 251.32 agencies; 251.33 (3) nursing homes, hospices, senior centers, hospitals, 251.34 local libraries, parks, recreational facilities, child and adult 251.35 day care centers, programs servicing individuals with 251.36 disabilities, and schools; 252.1 (4) law enforcement agencies, and penal and probation 252.2 systems; 252.3 (5) private nonprofit organizations that primarily focus on 252.4 social service such as community action agencies; 252.5 (6) activities that focus on the rehabilitation or 252.6 improvement of public facilities, neighborhood improvements, 252.7 literacy training that benefits educationally disadvantaged 252.8 individuals, weatherization of and basic repairs to low-income 252.9 housing including housing occupied by older adults, activities 252.10 that focus on drug and alcohol abuse education, prevention, and 252.11 treatment; and 252.12 (7) any other nonpartisan civic activities and services 252.13 that the commissioner determines to be of a substantial social 252.14 benefit in meeting unmet human, educational, or environmental 252.15 needs, particularly needs related to poverty, or in the 252.16 community where volunteer service is to be performed. 252.17 (b) Youth and young adults may provide full-time or 252.18 part-time youth community service in a program known as "corps 252.19 to career" if the individual: 252.20 (1) is an unemployed high school dropout and is a parent of 252.21 a minor member of an assistance unit under the AFDC, MFIP, or 252.22 MFIP-R programs under chapter 256, or under the MFIP-S program 252.23 under chapter 256J, or is a person who is a member of an 252.24 assistance unit under the AFDC, MFIP, or MFIP-R programs under 252.25 chapter 256, or under the MFIP-S program under chapter 256J; 252.26 (2) agrees to only use the individual's postservice benefit 252.27 under the federal Americorps Act to complete a customized job 252.28 training program that requires 20 percent of the individual's 252.29 time to be spent in the corps to career program and that is 252.30 consistent with the work requirements of the employment and 252.31 training services component of the MFIP-S program under chapter 252.32 256J or, if a customized job training program is unavailable, 252.33 agrees to use the postservice benefit consistent with the 252.34 federal education award; and 252.35 (3) during the entire time the individual completes the 252.36 individual's job training program, resides within an enterprise 253.1 zone as defined in section 469.303. 253.2 To be eligible under this paragraph, any individual who 253.3 receives assistance under clause (1) after MFIP-S has been 253.4 implemented in the individual's county of financial 253.5 responsibility, and who meets the requirements in clauses (2) 253.6 and (3), also must meet the requirements of the employment and 253.7 training services component of the MFIP-S program under chapter 253.8 256J. 253.9 (c) The commissioner of the department of natural resources 253.10 shall ensure that the corps to career program will not decrease 253.11 employment opportunities that would be available without the 253.12 program; will not displace current employees including any 253.13 partial displacement in the form of reduced hours of work other 253.14 than overtime, wages, employment benefits, or regular seasonal 253.15 work; will not impair existing labor agreements; and will not 253.16 result in the substitution of project funding for preexisting 253.17 funds or sources of funds for ongoing work. 253.18 Sec. 2. [EFFECTIVE DATE.] 253.19 This article is effective July 1, 1997. 253.20 ARTICLE 6 253.21 CITIZENSHIP PROMOTION 253.22 Section 1. [3.9228] [CITIZENSHIP PROMOTION PROGRAM.] 253.23 Subdivision 1. [CREATION.] The citizenship promotion 253.24 program is created as a statewide program. The purpose of the 253.25 program is to provide assistance to legal immigrants to obtain 253.26 citizenship status. The program consists of public education 253.27 and information, group application workshops, citizenship and 253.28 English for citizenship classes, and video citizenship 253.29 instruction. 253.30 Subd. 2. [PUBLIC EDUCATION AND INFORMATION.] The public 253.31 education program must include the preparation and distribution 253.32 of information about citizenship eligibility requirements, how 253.33 to apply, what testing requirements are, and where citizenship 253.34 assistance can be obtained. Community meetings must be held to 253.35 provide the same information and to respond to questions. 253.36 Subd. 3. [GROUP APPLICATION WORKSHOPS.] Group workshops 254.1 must be held on a periodic basis. The workshops must provide 254.2 individualized advice about applying for citizenship and provide 254.3 an overview of the citizenship process. Participants must be 254.4 screened for English proficiency and, upon request, enrolled in 254.5 citizenship application workshops. 254.6 Subd. 4. [CITIZENSHIP AND ENGLISH CLASSES.] The program 254.7 must support and supplement existing English for citizenship 254.8 classes. Classes must also be supported and offered in native 254.9 languages for those able to take a citizenship test in their 254.10 native language. Tuition may be charged for classes, 254.11 scholarships provided for needy students, interpreters provided, 254.12 and transportation and child care assistance provided for 254.13 hardship applicants. 254.14 Subd. 5. [VIDEO INSTRUCTION.] The program must develop and 254.15 produce a television series to provide citizenship education and 254.16 make available videotapes of the classes. 254.17 Subd. 6. [ADMINISTRATION.] The executive directors of the 254.18 councils on Black Minnesotans, Asian-Pacific Minnesotans, and 254.19 Chicano-Latino affairs shall jointly administer the citizenship 254.20 promotion program. The directors shall jointly hire and 254.21 supervise staff to coordinate the program. The staff shall 254.22 process applications for grants, act as a clearinghouse to 254.23 promote the exchange of information, expertise, and best 254.24 practices among citizenship promotion programs and 254.25 organizations, and develop resources to assist in the operation 254.26 of community-based programs. The staff shall organize an 254.27 advisory committee of representatives of ethnic and geographic 254.28 groups of legal immigrants. 254.29 Subd. 7. [GRANTS.] The directors shall make grants to 254.30 nonprofit organizations and government agencies to operate 254.31 citizenship promotion programs under this section. The staff 254.32 shall consult with the advisory committee about the appropriate 254.33 selection of grantees and about what policies should be adopted 254.34 to ensure that the goals of the citizenship promotion programs 254.35 are attained. In awarding grants, the directors must consider 254.36 the quality of programs operated by proposed applicants, 255.1 including the program's prior success in enabling immigrants to 255.2 become citizens. Grant applicants must identify the measures by 255.3 which their success with the grant funds will be evaluated, 255.4 including the numbers of immigrants who are expected to become 255.5 citizens. In awarding grants, the councils shall ensure 255.6 reasonable access to citizenship programs in all regions of 255.7 Minnesota. 255.8 Sec. 2. [EFFECTIVE DATE.] 255.9 This article is effective the day following final enactment.