Minnesota Legislature
SF 1
1st Engrossment - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am
KEY: stricken = removed, old language.
underscored = added, new language.
1.1 A bill for an act 1.2 relating to human services; replacing the aid to 1.3 families with dependent children program with the 1.4 Minnesota family investment program-statewide; 1.5 amending Minnesota Statutes 1996, sections 13.46, 1.6 subdivisions 1 and 2; 84.98, subdivision 3; 124.17, 1.7 subdivisions 1d and 1e; 124.175; 124A.02, subdivision 1.8 16; 124A.22, subdivision 3; 136A.125, subdivision 2; 1.9 196.27; 237.70, subdivision 4a; 254B.02, subdivision 1.10 1; 256.01, subdivisions 2 and 4a; 256.017, 1.11 subdivisions 1 and 4; 256.019; 256.031, subdivision 5, 1.12 and by adding subdivisions; 256.033, subdivisions 1 1.13 and 1a; 256.046, subdivision 1; 256.736, subdivision 1.14 3a; 256.74, subdivision 1; 256.82, subdivision 2; 1.15 256.935, subdivision 1; 256.9354, by adding a 1.16 subdivision; 256.98, subdivision 8; 256.981; 256.983, 1.17 subdivisions 1 and 4; 256.9850; 256.9861, subdivision 1.18 5; 256B.055, subdivisions 3, 5, and by adding 1.19 subdivisions; 256B.056, subdivisions 1a, 3, and 4; 1.20 256B.057, subdivisions 1, 1b, and 2b; 256B.06, 1.21 subdivision 4; 256B.062; 256D.01, subdivisions 1, 1a, 1.22 and 1e; 256D.02, subdivisions 6 and 12a; 256D.03, 1.23 subdivision 3; 256D.05, subdivisions 1, 2, 5, 7, and 1.24 8; 256D.051, subdivisions 1a, 2a, 3a, and by adding a 1.25 subdivision; 256D.055; 256D.06, subdivisions 2 and 5; 1.26 256D.08, subdivisions 1 and 2; 256D.09, by adding a 1.27 subdivision; 256D.435, subdivision 3; 256D.44, 1.28 subdivision 5; 256E.03, subdivision 2; 256E.06, 1.29 subdivisions 1 and 3; 256E.07, subdivision 1; 256E.08, 1.30 subdivision 3; 256F.04, subdivisions 1 and 2; 256F.05, 1.31 subdivisions 2, 3, 4, 5, and 8; 256F.06, subdivisions 1.32 1 and 2; 256G.01, subdivision 4; 256G.02, subdivision 1.33 6; 257.3573, subdivision 2; 259.67, subdivision 4; 1.34 260.38; 268.0111, subdivisions 5 and 7; 268.0122, 1.35 subdivision 3; 268.552, subdivision 5; 268.6751, 1.36 subdivision 1; 268.676, subdivision 1; 268.86, 1.37 subdivision 2; 268.871, subdivision 1; 268.90, 1.38 subdivision 2; 268.916; 268.95, subdivision 4; 393.07, 1.39 subdivision 6; and 477A.0122, subdivision 2; proposing 1.40 coding for new law in Minnesota Statutes, chapters 1.41 256B; and 256D; proposing coding for new law as 1.42 Minnesota Statutes, chapters 256J; and 256K; repealing 1.43 Minnesota Statutes 1996, sections 256.12, subdivisions 1.44 9, 10, 14, 15, 20, 21, 22, and 23; 256.72; 256.73; 1.45 256.7341; 256.7351; 256.7352; 256.7353; 256.7354; 1.46 256.7355; 256.7356; 256.7357; 256.7358; 256.7359; 2.1 256.736, subdivision 19; 256.7365; 256.7366; 256.7381; 2.2 256.7382; 256.7383; 256.7384; 256.7385; 256.7386; 2.3 256.7387; 256.7388; 256.74, subdivisions 1, 1a, 1b, 2, 2.4 and 6; 256.745; 256.75; 256.76; 256.78; 256.80; 2.5 256.81; 256.82; 256.84; 256.85; 256.86; 256.863; 2.6 256.871; 256.8711; 256.879; 256D.02, subdivision 5; 2.7 256D.05, subdivisions 3 and 3a; 256D.0511; 256D.065; 2.8 and 256F.05, subdivisions 5 and 7. 2.9 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 2.10 ARTICLE 1 2.11 MINNESOTA FAMILY INVESTMENT PROGRAM-STATEWIDE 2.12 Section 1. [256J.01] [ESTABLISHING MINNESOTA FAMILY 2.13 INVESTMENT PROGRAM-STATEWIDE.] 2.14 Subdivision 1. [IMPLEMENTATION OF MINNESOTA FAMILY 2.15 INVESTMENT PROGRAM-STATEWIDE (MFIP-S).] This chapter and chapter 2.16 256K may be cited as the Minnesota family investment 2.17 program-statewide (MFIP-S). MFIP-S is the statewide 2.18 implementation of components of the Minnesota family investment 2.19 plan (MFIP) authorized under section 256.031 and Minnesota 2.20 family investment plan-Ramsey county (MFIP-R) in section 256.047. 2.21 Subd. 2. [IMPLEMENTATION OF TEMPORARY ASSISTANCE FOR NEEDY 2.22 FAMILIES (TANF).] The Personal Responsibility and Work 2.23 Opportunity Reconciliation Act of 1996, Public Law Number 2.24 104-193, eliminates the entitlement program of aid to families 2.25 with dependent children (AFDC) and replaces it with block grants 2.26 to states for temporary assistance for needy families (TANF). 2.27 TANF provides cash assistance for a limited time to families 2.28 with children and to pregnant women. Minnesota's TANF 2.29 assistance will be provided through a statewide expansion of 2.30 MFIP. The modifications specified in this chapter are necessary 2.31 to comply with the new federal law and to improve MFIP. 2.32 Applicants and recipients of AFDC, family general assistance, 2.33 and food stamps will be converted to the MFIP-S program. The 2.34 conversion to MFIP-S must be made on October 1, 1997. 2.35 Subd. 3. [RELATIONSHIP TO OTHER STATUTES AND 2.36 RULES.] MFIP-S replaces eligibility for families with children 2.37 and pregnant women under the general assistance program, 2.38 governed by sections 256D.01 to 256D.21 and Minnesota Rules, 2.39 parts 9500.1200 to 9500.1270. 3.1 Subd. 4. [CHANGES TO WAIVERS.] The commissioner of human 3.2 services may negotiate and obtain changes in the federal waivers 3.3 and terms and conditions contained in the MFIP, MFIP-R, and 3.4 MFIP-S programs. The commissioner may also terminate federal 3.5 waivers by directing so in the applicable state plan. 3.6 Subd. 5. [COMPLIANCE SYSTEM.] The commissioner shall 3.7 administer a compliance system for the state's temporary 3.8 assistance for needy families (TANF) program, the food stamp 3.9 program, emergency assistance, general assistance, medical 3.10 assistance, general assistance medical care, emergency general 3.11 assistance, Minnesota supplemental aid, preadmission screening, 3.12 child support program, and alternative care grants under the 3.13 powers and authorities named in section 256.01, subdivision 2. 3.14 The purpose of the compliance system is to permit the 3.15 commissioner to supervise the administration of public 3.16 assistance programs and to enforce timely and accurate 3.17 distribution of benefits, completeness of service and efficient 3.18 and effective program management and operations, to increase 3.19 uniformity and consistency in the administration and delivery of 3.20 public assistance programs throughout the state, and to reduce 3.21 the possibility of sanction and fiscal disallowances for 3.22 noncompliance with federal regulations and state statutes. 3.23 Sec. 2. [256J.02] [FEDERAL TEMPORARY ASSISTANCE FOR NEEDY 3.24 FAMILIES BLOCK GRANT.] 3.25 Subdivision 1. [COMMISSIONER'S AUTHORITY TO ADMINISTER 3.26 BLOCK GRANT FUNDS.] The commissioner of human services is 3.27 authorized to receive, administer, and expend funds available 3.28 under the TANF block grant authorized under title I of Public 3.29 Law Number 104-193, the Personal Responsibility and Work 3.30 Opportunity Reconciliation Act of 1996. 3.31 Subd. 2. [USE OF MONEY.] State money appropriated for 3.32 purposes of this section and TANF block grant money must be used 3.33 for: 3.34 (1) financial assistance to or on behalf of any minor child 3.35 who is a resident of this state under section 256J.12; 3.36 (2) employment and training programs under this chapter; 4.1 (3) emergency financial assistance and services under 4.2 section 256J.48; 4.3 (4) diversionary assistance under section 256J.47; and 4.4 (5) program administration under this chapter. 4.5 Subd. 3. [CARRY FORWARD OF FEDERAL MONEY.] Temporary 4.6 assistance for needy families block grant money must be 4.7 appropriated for the purposes in this section and is available 4.8 until expended. 4.9 Subd. 4. [AUTHORITY TO TRANSFER.] Subject to limitations 4.10 of title I of Public Law Number 104-193, the Personal 4.11 Responsibility and Work Opportunity Reconciliation Act of 1996, 4.12 the legislature may transfer money from the TANF block grant to 4.13 the child care fund under section 119B.01, or the Title XX block 4.14 grant under section 256E.07. 4.15 Subd. 5. [INDIRECT COST LIABILITY.] Notwithstanding the 4.16 provisions of section 16A.127, the statewide and agency indirect 4.17 cost liability identified as part of the TANF grant for any 4.18 current fiscal year shall be limited to no more than the amount 4.19 received in fiscal year 1996. 4.20 Sec. 3. [256J.06] [COMMUNITY INVOLVEMENT.] 4.21 The MFIP-S program must be administered in a way that, in 4.22 addition to the county agency, other sectors in the community 4.23 such as employers from the public and private sectors, 4.24 not-for-profit organizations, educational and social service 4.25 agencies, labor unions, and neighborhood associations are 4.26 involved. 4.27 Sec. 4. [256J.08] [DEFINITIONS.] 4.28 Subdivision 1. [SCOPE OF DEFINITIONS.] The terms used in 4.29 this chapter have the following meanings unless otherwise 4.30 provided for by text. 4.31 Subd. 2. [ABSENT PARENT.] "Absent parent" means a minor 4.32 child's parent who does not live in the home. 4.33 Subd. 3. [AGENCY ERROR.] "Agency error" means an error 4.34 that results in an overpayment or underpayment to an assistance 4.35 unit and is not caused by an applicant's or participant's 4.36 failure to provide adequate, correct, or timely information 5.1 about income, property, household composition, or other 5.2 circumstances. 5.3 Subd. 4. [APPEAL.] "Appeal" means a written statement from 5.4 an applicant or participant who requests a hearing under section 5.5 256J.31. 5.6 Subd. 5. [APPLICANT.] "Applicant" means a person who has 5.7 submitted to a county agency an application and whose 5.8 application has not been acted upon, denied, or voluntarily 5.9 withdrawn. 5.10 Subd. 6. [APPLICATION.] "Application" means the submission 5.11 by or on behalf of a family to a county agency of a completed, 5.12 signed, and dated form, prescribed by the commissioner, that 5.13 indicates the desire to receive assistance. 5.14 Subd. 7. [ASSISTANCE UNIT OR MFIP-S ASSISTANCE 5.15 UNIT.] "Assistance unit" or "MFIP-S assistance unit" means a 5.16 group of mandatory or optional people receiving or applying for 5.17 MFIP-S benefits together. 5.18 Subd. 8. [AUTHORIZED REPRESENTATIVE.] "Authorized 5.19 representative" means a person who is authorized, in writing, by 5.20 an applicant or participant to act on the applicant's or 5.21 participant's behalf in matters involving the application for 5.22 assistance or participation in MFIP-S. 5.23 Subd. 9. [BASIC NEEDS.] "Basic needs" means the minimum 5.24 personal requirements of subsistence and is restricted to food, 5.25 clothing, shelter, utilities, and other items for which the 5.26 loss, or lack of basic needs, is determined by the county agency 5.27 to pose a direct, immediate threat to the physical health or 5.28 safety of the applicant or participant. 5.29 Subd. 10. [BUDGET MONTH.] "Budget month" means the 5.30 calendar month which the county agency uses to determine the 5.31 income or circumstances of an assistance unit to calculate the 5.32 amount of the assistance payment in the payment month. 5.33 Subd. 11. [CAREGIVER.] "Caregiver" means a minor child's 5.34 natural or adoptive parent or parents who live in the home with 5.35 the minor child. For purposes of determining eligibility for 5.36 this program, caregiver also means any of the following 6.1 individuals, if adults, who live with and provide care and 6.2 support to a minor child when the minor child's natural or 6.3 adoptive parent or parents do not reside in the same home: 6.4 grandfather, grandmother, brother, sister, stepfather, 6.5 stepmother, stepbrother, stepsister, uncle, aunt, first cousin, 6.6 nephew, niece, person of preceding generation as denoted by 6.7 prefixes of "great," "great-great," or "great-great-great," or a 6.8 spouse of any person named in the above groups even after the 6.9 marriage ends by death or divorce. 6.10 Subd. 12. [CLIENT ERROR.] "Client error" means an error 6.11 that results in an overpayment or underpayment and is due to an 6.12 applicant's or participant's failure to provide adequate, 6.13 correct, or timely information concerning income, property, 6.14 household composition, or other circumstances. 6.15 Subd. 13. [COMMISSIONER.] "Commissioner" means the 6.16 commissioner of the department of human services or the 6.17 commissioner's designated representative. 6.18 Subd. 14. [CORRECTIVE PAYMENT.] "Corrective payment" means 6.19 an assistance payment that is made to correct an underpayment. 6.20 Subd. 15. [COUNTABLE INCOME.] "Countable income" means 6.21 earned and unearned income that is not excluded under section 6.22 256J.21, subdivision 2, or disregarded under section 256J.21, 6.23 subdivision 3. 6.24 Subd. 16. [COUNTED EARNINGS.] "Counted earnings" means the 6.25 earned income that remains after applicable disregards under 6.26 section 256J.21, subdivision 2, have been subtracted from gross 6.27 earned income. 6.28 Subd. 17. [COUNTY AGENCY.] "County agency" means the 6.29 agency designated by the county board to implement financial 6.30 assistance for current programs and for MFIP-S and the agency 6.31 responsible for enforcement of child support collection, and a 6.32 county or multicounty agency that is authorized under sections 6.33 393.01, subdivision 7, and 393.07, subdivision 2, to administer 6.34 MFIP-S. 6.35 Subd. 18. [COUNTY BOARD.] "County board" means a board of 6.36 commissioners, a local services agency as defined in chapter 7.1 393, a board established under the Joint Powers Act, section 7.2 471.59, or a human services board under chapter 402. 7.3 Subd. 19. [COUNTY OF FINANCIAL RESPONSIBILITY.] "County of 7.4 financial responsibility" means the county that has financial 7.5 responsibility for providing public assistance as specified in 7.6 chapter 256G. 7.7 Subd. 20. [COUNTY OF RESIDENCE.] "County of residence" 7.8 means the county where the caregiver has established a home. 7.9 Subd. 21. [DATE OF APPLICATION.] "Date of application" 7.10 means the date on which the county agency receives an 7.11 applicant's signed application. 7.12 Subd. 22. [DEEM.] "Deem" means to treat all or part of the 7.13 income of an individual who is not in the assistance unit, but 7.14 who is financially responsible for members of the assistance 7.15 unit, as if it were income available to the assistance unit. 7.16 Subd. 23. [DEPARTMENT.] "Department" means the Minnesota 7.17 department of human services. 7.18 Subd. 24. [DISREGARD.] "Disregard" means earned income 7.19 that is not counted when determining initial eligibility or 7.20 ongoing eligibility and calculating the amount of the assistance 7.21 payment for participants. 7.22 Subd. 25. [DOCUMENTATION.] "Documentation" means a written 7.23 statement or record that substantiates or validates an assertion 7.24 made by a person or an action taken by a person, agency, or 7.25 entity. 7.26 Subd. 26. [EARNED INCOME.] "Earned income" means cash or 7.27 in-kind income earned through the receipt of wages, salary, 7.28 commissions, profit from employment activities, net profit from 7.29 self-employment activities, payments made by an employer for 7.30 regularly accrued vacation or sick leave, and any other profit 7.31 from activity earned through effort or labor. 7.32 Subd. 27. [EARNED INCOME TAX CREDIT.] "Earned income tax 7.33 credit" means the payment which can be obtained by a qualified 7.34 person from an employer or from the Internal Revenue Service as 7.35 provided by section 290.0671 and United States Code, title 26, 7.36 subtitle A, chapter 1, subchapter A, part 4, subpart C, section 8.1 32. 8.2 Subd. 28. [EMERGENCY.] "Emergency" means a situation or a 8.3 set of circumstances that causes or threatens to cause 8.4 destitution to a minor child. 8.5 Subd. 29. [EQUITY VALUE.] "Equity value" means the amount 8.6 of equity in real or personal property owned by a person and is 8.7 determined by subtracting any outstanding encumbrances from the 8.8 fair market value. 8.9 Subd. 30. [EXCLUDED TIME.] "Excluded time" has the meaning 8.10 given in section 256G.02. 8.11 Subd. 31. [EXPEDITED ISSUANCE OF THE FOOD STAMP 8.12 PORTION.] "Expedited issuance of the food stamp portion" means 8.13 the issuance of the food stamp portion to eligible assistance 8.14 units on the day of application as provided in section 393.07, 8.15 subdivision 10a. 8.16 Subd. 32. [FAIR HEARING OR HEARING.] "Fair hearing" or 8.17 "hearing" means the evidentiary hearing conducted by the 8.18 department appeals referee to resolve disputes as specified in 8.19 section 256.045. 8.20 Subd. 33. [FAIR MARKET VALUE.] "Fair market value" means 8.21 the price that an item of a particular make, model, size, 8.22 material, or condition would sell for on the open market in the 8.23 particular geographic area. 8.24 Subd. 34. [FAMILY.] "Family" includes: 8.25 (1) the following individuals who live together: a minor 8.26 child or a group of minor children related to each other as 8.27 siblings, half siblings, stepsiblings, or adoptive siblings, 8.28 together with their natural, adoptive parents, stepparents, or 8.29 caregiver as defined in subdivision 11; and 8.30 (2) a pregnant woman with no other children. 8.31 Subd. 35. [FAMILY WAGE LEVEL.] "Family wage level" means 8.32 110 percent of the transitional standard. 8.33 Subd. 36. [FEDERAL INSURANCE CONTRIBUTION ACT OR 8.34 FICA.] "Federal Insurance Contribution Act" or "FICA" means the 8.35 federal law under United States Code, title 26, subtitle C, 8.36 chapter 21, subchapter A, sections 3101 to 3126, that requires 9.1 withholding or direct payment from earned income. 9.2 Subd. 37. [FINANCIAL CASE RECORD.] "Financial case record" 9.3 means an assistance unit's financial eligibility file. 9.4 Subd. 38. [FULL-TIME STUDENT.] "Full-time student" means a 9.5 person who is enrolled in a graded or ungraded primary, 9.6 intermediate, secondary, GED preparatory, trade, technical, 9.7 vocational, or post-secondary school, and who meets the school's 9.8 standard for full-time attendance. 9.9 Subd. 39. [GENERAL EDUCATIONAL DEVELOPMENT OR 9.10 GED.] "General educational development" or "GED" means the 9.11 general educational development certification issued by the 9.12 Minnesota board of education as an equivalent to a secondary 9.13 school diploma under Minnesota Rules, part 3500.3100, subpart 4. 9.14 Subd. 40. [GROSS EARNED INCOME.] "Gross earned income" 9.15 means earned income from employment before mandatory and 9.16 voluntary payroll deductions. Gross earned income includes 9.17 salaries, wages, tips, gratuities, commissions, incentive 9.18 payments from work or training programs, payments made by an 9.19 employer for regularly accrued vacation or sick leave, and 9.20 profits from other activity earned by an individual's effort or 9.21 labor. Gross earned income includes uniform and meal allowances 9.22 if federal income tax is deducted from the allowance. Gross 9.23 earned income includes flexible work benefits received from an 9.24 employer if the employee has the option of receiving the benefit 9.25 or benefits in cash. 9.26 Subd. 41. [GROSS INCOME.] "Gross income" is the sum of 9.27 gross earned income and unearned income. 9.28 Subd. 42. [GROSS RECEIPTS.] "Gross receipts" means the 9.29 money received by a business before the expenses of the business 9.30 are deducted. 9.31 Subd. 43. [HALF-TIME STUDENT.] "Half-time student" means a 9.32 person who is enrolled in a graded or ungraded primary, 9.33 intermediate, secondary, GED preparatory, trade, technical, 9.34 vocational, or post-secondary school, and who meets the school's 9.35 standard of half-time attendance. 9.36 Subd. 44. [HOME.] "Home" means the primary place of 10.1 residence used by a person as the base for day-to-day living and 10.2 does not include locations used as mail drops. 10.3 Subd. 45. [HOMESTEAD.] "Homestead" means the home that is 10.4 owned by, and is the usual residence of, the assistance unit 10.5 together with the surrounding property which is not separated 10.6 from the home by intervening property owned by others. Public 10.7 rights-of-way, such as roads which run through the surrounding 10.8 property and separate it from the home, do not affect the 10.9 exemption of the property. Homestead includes an asset that is 10.10 not real property that the assistance unit uses as a home, such 10.11 as a vehicle. 10.12 Subd. 46. [HOUSEHOLD.] "Household" means a group of 10.13 persons who live together. 10.14 Subd. 47. [INCOME.] "Income" means cash or in-kind 10.15 benefit, whether earned or unearned, received by or available to 10.16 an applicant or participant that is not an asset under section 10.17 256J.20. 10.18 Subd. 48. [INITIAL ELIGIBILITY.] "Initial eligibility" 10.19 means the determination of eligibility for an MFIP-S applicant. 10.20 Subd. 49. [IN-KIND INCOME.] "In-kind income" means income, 10.21 benefits, or payments which are provided in a form other than 10.22 money or liquid assets, including the forms of goods, produce, 10.23 services, privileges, or payments made on behalf of an applicant 10.24 or participant by a third party. 10.25 Subd. 50. [INQUIRY.] "Inquiry" means a communication to a 10.26 county agency through mail, telephone, or in person, by which a 10.27 person or authorized representative requests information about 10.28 public assistance. The county agency shall also treat as an 10.29 inquiry any communication in which a person requesting 10.30 assistance offers information about the person's family 10.31 circumstances that indicates that eligibility for public 10.32 assistance may exist. 10.33 Subd. 51. [LEGALLY AVAILABLE.] "Legally available" means a 10.34 person's right under the law to secure, possess, dispose of, or 10.35 control income or property. 10.36 Subd. 52. [LOW-INCOME HOME ENERGY ASSISTANCE PROGRAM OR 11.1 LIHEAP.] "Low-income home energy assistance program" or "LIHEAP" 11.2 means the program authorized under United States Code, title 42, 11.3 chapter 94, subchapter II, sections 8621 to 8629, and 11.4 administered by the Minnesota department of economic security. 11.5 Subd. 53. [LUMP SUM.] "Lump sum" means nonrecurring income 11.6 that is not excluded in section 256J.21. 11.7 Subd. 54. [MEDICAL ASSISTANCE.] "Medical assistance" means 11.8 the program established under chapter 256B and Title XIX of the 11.9 Social Security Act. 11.10 Subd. 55. [MFIP-S HOUSEHOLD REPORT FORM.] "MFIP-S 11.11 household report form" means a form prescribed by the 11.12 commissioner that a participant uses to report information to a 11.13 county agency about changes in income and other circumstances. 11.14 Subd. 56. [MIGRANT WORKER.] "Migrant worker" means a 11.15 person who travels away from home on a regular basis, usually 11.16 with a group of other laborers, to seek employment in an 11.17 agriculturally related activity. 11.18 Subd. 57. [MINNESOTA FAMILY INVESTMENT PROGRAM-STATEWIDE 11.19 OR MFIP-S.] "Minnesota family investment program-statewide" or 11.20 "MFIP-S" means the assistance program authorized in this chapter 11.21 and chapter 256K. 11.22 Subd. 58. [MINNESOTA SUPPLEMENTAL AID OR MSA.] "Minnesota 11.23 supplemental aid" or "MSA" means the program established under 11.24 sections 256D.33 to 256D.54. 11.25 Subd. 59. [MINOR CAREGIVER.] "Minor caregiver" means a 11.26 person who: 11.27 (1) is under the age of 18; 11.28 (2) has never been married or otherwise legally 11.29 emancipated; and 11.30 (3) is either the natural parent of a minor child living in 11.31 the same household or is eligible for assistance paid to a 11.32 pregnant woman. 11.33 Subd. 60. [MINOR CHILD.] "Minor child" means a child who 11.34 is living in the same home of a parent or other caregiver, is 11.35 either less than 18 years of age or is under the age of 19 years 11.36 and is regularly attending as a full-time student and is 12.1 expected to complete a high school or a secondary level course 12.2 of vocational or technical training designed to fit students for 12.3 gainful employment before reaching age 19. 12.4 Subd. 61. [MONTHLY INCOME TEST.] "Monthly income test" 12.5 means the test used to determine ongoing eligibility and the 12.6 assistance payment amount according to section 256J.21. 12.7 Subd. 62. [NONRECURRING INCOME.] "Nonrecurring income" 12.8 means a form of income which is received: 12.9 (1) only one time or is not of a continuous nature; or 12.10 (2) in a prospective payment month but is no longer 12.11 received in the corresponding retrospective payment month. 12.12 Subd. 63. [OVERPAYMENT.] "Overpayment" means the portion 12.13 of an assistance payment issued by the county agency that is 12.14 greater than the amount for which the assistance unit is 12.15 eligible. 12.16 Subd. 64. [PARENT.] "Parent" means a child's biological or 12.17 adoptive parent who is legally obligated to support that child. 12.18 Subd. 65. [PARTICIPANT.] "Participant" means a person who 12.19 is currently receiving cash assistance and the food portion 12.20 available through MFIP-S as funded by TANF and the food stamp 12.21 program. A person who fails to withdraw or access 12.22 electronically any portion of his or her cash assistance payment 12.23 by the end of the payment month or who returns any uncashed 12.24 assistance check and withdraws from the program is not a 12.25 participant. A person who withdraws a cash assistance payment 12.26 by electronic transfer or receives and cashes a cash assistance 12.27 check and is subsequently determined to be ineligible for 12.28 assistance for that period of time is a participant, regardless 12.29 whether that assistance is repaid. The term "participant" 12.30 includes the caregiver relative and the minor child whose needs 12.31 are included in the assistance payment. A person in an 12.32 assistance unit who does not receive a cash assistance payment 12.33 because he or she has been suspended from MFIP-S or because his 12.34 or her need falls below the $10 minimum payment level is a 12.35 participant. 12.36 Subd. 66. [PAYEE.] "Payee" means a person to whom an 13.1 assistance payment is made payable. 13.2 Subd. 67. [PAYMENT MONTH.] "Payment month" means the 13.3 calendar month for which the assistance payment is paid. 13.4 Subd. 68. [PERSONAL PROPERTY.] "Personal property" means 13.5 an item of value that is not real property, including the value 13.6 of a contract for deed held by a seller, assets held in trust on 13.7 behalf of members of an assistance unit, cash surrender value of 13.8 life insurance, value of a prepaid burial, savings account, 13.9 value of stocks and bonds, and value of retirement accounts. 13.10 Subd. 69. [PROBABLE FRAUD.] "Probable fraud" means the 13.11 level of evidence that, if proven as fact, would establish that 13.12 assistance has been wrongfully obtained. 13.13 Subd. 70. [PROFESSIONAL CERTIFICATION.] "Professional 13.14 certification" means: 13.15 (1) a statement about a person's illness, injury, or 13.16 incapacity that is signed by a licensed physician, psychological 13.17 practitioner, or licensed psychologist, qualified by 13.18 professional training and experience to diagnose and certify the 13.19 person's condition; or 13.20 (2) a statement about an incapacity involving a spinal 13.21 subluxation condition that is signed by a licensed chiropractor 13.22 qualified by professional training and experience to diagnose 13.23 and certify the condition. 13.24 Subd. 71. [PROSPECTIVE BUDGETING.] "Prospective budgeting" 13.25 means a method of determining the amount of the assistance 13.26 payment in which the budget month and payment month are the same. 13.27 Subd. 72. [PROTECTIVE PAYEE.] "Protective payee" means a 13.28 person other than the caregiver of an assistance unit who 13.29 receives the monthly assistance payment on behalf of an 13.30 assistance unit and is responsible to provide for the basic 13.31 needs of the assistance unit to the extent of that payment. 13.32 Subd. 73. [QUALIFIED NONCITIZEN.] "Qualified noncitizen" 13.33 means a person: 13.34 (1) who was lawfully admitted for permanent residence 13.35 pursuant to United States Code, title 8; 13.36 (2) who was admitted to the United States as a refugee 14.1 pursuant to United States Code, title 8; section 1157; 14.2 (3) whose deportation is being withheld pursuant to United 14.3 States Code, title 8, section 1253(h); 14.4 (4) who was paroled for a period of at least one year 14.5 pursuant to United States Code, title 8, section 1182(d)(5); 14.6 (5) who was granted conditional entry pursuant to United 14.7 State Code, title 8, section 1153(a)(7); 14.8 (6) who was granted asylum pursuant to United States Code, 14.9 title 8, section 1158; or 14.10 (7) determined to be a battered noncitizen by the United 14.11 States Attorney General according to the Illegal Immigration 14.12 Reform and Immigrant Responsibility Act of 1996, Title V of the 14.13 Omnibus Consolidated Appropriations Bill, Public Law Number 14.14 104-200. 14.15 Subd. 74. [REAL PROPERTY.] "Real property" means land and 14.16 all buildings, structures, and improvements, or other fixtures 14.17 on the land, belonging or appertaining to the land, and all 14.18 mines, minerals, fossils, and trees on or under the land. 14.19 Subd. 75. [REASONABLE COMPENSATION.] "Reasonable 14.20 compensation" means the value received in exchange for property 14.21 transferred to another owner that is consistent with fair market 14.22 value and equals or exceeds the seller's equity in the property, 14.23 reduced by costs incurred in the sale. 14.24 Subd. 76. [RECERTIFICATION.] "Recertification" means the 14.25 periodic review of eligibility factors to determine an 14.26 assistance unit's continued eligibility. 14.27 Subd. 77. [RECOUPMENT.] "Recoupment" means the action of 14.28 the county agency to reduce a family's monthly assistance 14.29 payment to recover overpayments caused by client or agency error 14.30 and overpayments received while an appeal is pending. 14.31 Subd. 78. [RECOVERY.] "Recovery" means actions taken by a 14.32 county agency to reclaim the value of overpayments through 14.33 voluntary repayment, recoupment from the assistance payment, 14.34 court action, revenue recapture, or federal tax refund offset 14.35 program. 14.36 Subd. 79. [RECURRING INCOME.] "Recurring income" means a 15.1 form of income which is: 15.2 (1) received periodically, and may be received irregularly 15.3 when receipt can be anticipated even though the date of receipt 15.4 cannot be predicted; and 15.5 (2) from the same source or of the same type that is 15.6 received and budgeted in a prospective month and is received in 15.7 one or both of the first two retrospective months. 15.8 Subd. 80. [REEMPLOYMENT INSURANCE.] "Reemployment 15.9 insurance" means the insurance benefit paid to an unemployed 15.10 worker under sections 268.03 to 268.23. 15.11 Subd. 81. [RETROSPECTIVE BUDGETING.] "Retrospective 15.12 budgeting" means a method of determining the amount of the 15.13 assistance payment in which the payment month is the second 15.14 month after the budget month. 15.15 Subd. 82. [SANCTION.] "Sanction" means the reduction of a 15.16 family's assistance payment by a specified percentage of the 15.17 applicable transitional standard because: the nonexempt 15.18 participant fails to comply with the requirements of sections 15.19 256J.51 to 256J.55; the parental caregiver fails without good 15.20 cause to cooperate with the child support enforcement 15.21 requirements; or a recipient fails to comply with the insurance, 15.22 tort liability, or other requirements of this chapter. 15.23 Subd. 83. [SIGNIFICANT CHANGE.] "Significant change" means 15.24 a decline in gross income of 37 percent or more from the income 15.25 used to determine the grant for the current month. 15.26 Subd. 84. [SUPPLEMENTAL SECURITY INCOME OR 15.27 SSI.] "Supplemental Security Income" or "SSI" means the program 15.28 authorized under title XVI of the Social Security Act. 15.29 Subd. 85. [TRANSITIONAL STANDARD.] "Transitional standard" 15.30 means the basic standard for a family with no other income or a 15.31 nonworking family and is a combination of the cash assistance 15.32 needs and food assistance needs for a family of that size. 15.33 Subd. 86. [UNEARNED INCOME.] "Unearned income" means 15.34 income received by a person that does not meet the definition of 15.35 earned income. Unearned income includes income from a contract 15.36 for deed, interest, dividends, reemployment insurance, 16.1 disability insurance payments, veterans benefits, pension 16.2 payments, return on capital investment, insurance payments or 16.3 settlements, severance payments, and payments for illness or 16.4 disability whether the premium payments are made in whole or in 16.5 part by an employer or participant. 16.6 Subd. 87. [VENDOR.] "Vendor" means a provider of goods or 16.7 services. 16.8 Subd. 88. [VENDOR PAYMENT.] "Vendor payment" means a 16.9 payment authorized by a county agency to a vendor. 16.10 Subd. 89. [VERIFICATION.] "Verification" means the process 16.11 a county agency uses to establish the accuracy or completeness 16.12 of information from an applicant, participant, third party, or 16.13 other source as that information relates to program eligibility 16.14 or an assistance payment. 16.15 Sec. 5. [256J.09] [APPLYING FOR ASSISTANCE.] 16.16 Subdivision 1. [WHERE TO APPLY.] A person must apply for 16.17 assistance at the county agency in the county where that person 16.18 lives. 16.19 Subd. 2. [COUNTY AGENCY RESPONSIBILITY TO PROVIDE 16.20 INFORMATION.] A county agency must inform a person who inquires 16.21 about assistance about eligibility requirements for assistance 16.22 and how to apply for assistance, including diversionary 16.23 assistance and emergency assistance. A county agency must offer 16.24 the person brochures developed or approved by the commissioner 16.25 that describe how to apply for assistance. 16.26 Subd. 3. [SUBMITTING THE APPLICATION FORM.] A county 16.27 agency must offer, in person or by mail, the application forms 16.28 prescribed by the commissioner as soon as a person makes a 16.29 written or oral inquiry. At that time, the county agency must 16.30 inform the person that assistance begins with the date the 16.31 signed application is received by the county agency or the date 16.32 all eligibility criteria are met, whichever is later. The 16.33 county agency must inform the applicant that any delay in 16.34 submitting the application will reduce the amount of assistance 16.35 paid for the month of application. A county agency must inform 16.36 a person that the person may submit the application before an 17.1 interview appointment. To apply for assistance, a person must 17.2 submit a signed application to the county agency. Upon receipt 17.3 of a signed application, the county agency must stamp the date 17.4 of receipt on the face of the application. The county agency 17.5 must process the application within the time period required 17.6 under subdivision 5. An applicant may withdraw the application 17.7 at any time by giving written or oral notice to the county 17.8 agency. The county agency must issue a written notice 17.9 confirming the withdrawal. The notice must inform the applicant 17.10 of the county agency's understanding that the applicant has 17.11 withdrawn the application and no longer wants to pursue it. 17.12 When, within ten days of the date of the agency's notice, an 17.13 applicant informs a county agency, in writing, that the 17.14 applicant does not wish to withdraw the application, the county 17.15 agency must reinstate the application and finish processing the 17.16 application. 17.17 Subd. 4. [VERIFICATION OF INFORMATION ON APPLICATION.] A 17.18 county agency must verify information provided by an applicant 17.19 as required in section 256J.32. 17.20 Subd. 5. [PROCESSING APPLICATIONS.] Upon receiving an 17.21 application, a county agency must determine the applicant's 17.22 eligibility, approve or deny the application, inform the 17.23 applicant of its decision according to the notice provisions in 17.24 section 256J.31, and, if eligible, issue the assistance payment 17.25 to the applicant. When a county agency is unable to process an 17.26 application within 30 days, the county agency must inform the 17.27 applicant of the reason for the delay in writing. When an 17.28 applicant establishes the inability to provide required 17.29 verification within the 30-day processing period, the county 17.30 agency may not use the expiration of that period as the basis 17.31 for denial. 17.32 Subd. 6. [INVALID REASON FOR DELAY.] A county agency must 17.33 not delay a decision on eligibility or delay issuing the 17.34 assistance payment except to establish state residence by: 17.35 (1) treating the 30-day processing period as a waiting 17.36 period; 18.1 (2) delaying approval or issuance of the assistance payment 18.2 pending the decision of the county board; or 18.3 (3) awaiting the result of a referral to a county agency in 18.4 another county when the county receiving the application does 18.5 not believe it is the county of financial responsibility. 18.6 Subd. 7. [CHANGES IN RESIDENCE DURING APPLICATION.] The 18.7 requirements in subdivisions 5 and 6 apply without regard to the 18.8 length of time that an applicant remains, or intends to remain, 18.9 a resident of the county in which the application is made. When 18.10 an applicant leaves the county where application was made but 18.11 remains in the state, section 256J.75 applies and the county 18.12 agency may request additional information from the applicant 18.13 about changes in circumstances related to the move. 18.14 Subd. 8. [ADDITIONAL APPLICATIONS.] Until a county agency 18.15 issues notice of approval or denial, additional applications 18.16 submitted by an applicant are void. However, an application for 18.17 monthly assistance and an application for emergency assistance 18.18 or emergency general assistance may exist concurrently. More 18.19 than one application for monthly assistance, emergency 18.20 assistance, or emergency general assistance may exist 18.21 concurrently when the county agency decisions on one or more 18.22 earlier applications have been appealed to the commissioner, and 18.23 the applicant asserts that a change in circumstances has 18.24 occurred that would allow eligibility. A county agency must 18.25 require additional application forms or supplemental forms as 18.26 prescribed by the commissioner when a payee's name changes, or 18.27 when a caregiver requests the addition of another person to the 18.28 assistance unit. 18.29 Subd. 9. [ADDENDUM TO AN EXISTING APPLICATION.] An 18.30 addendum to an existing application must be used to add persons 18.31 to an assistance unit regardless of whether the persons being 18.32 added are required to be in the assistance unit. When a person 18.33 is added by addendum to an assistance unit, eligibility for that 18.34 person begins on the first of the month the addendum was filed, 18.35 under section 256J.74, subdivision 2, paragraph (a). 18.36 Subd. 10. [APPLICANTS WHO DO NOT MEET ELIGIBILITY 19.1 REQUIREMENTS FOR MFIP-S.] When an applicant is not eligible for 19.2 MFIP-S because the applicant does not meet eligibility 19.3 requirements, the county agency must determine whether the 19.4 applicant is eligible for food stamps, medical assistance, 19.5 diversionary assistance, or has a need for emergency assistance 19.6 when the applicant meets the eligibility requirements for those 19.7 programs. 19.8 ELIGIBILITY FOR MFIP 19.9 Sec. 6. [256J.10] [MFIP-S ELIGIBILITY REQUIREMENTS.] 19.10 To be eligible for MFIP-S, applicants must meet the general 19.11 eligibility requirements in sections 256J.11 to 256J.15, the 19.12 property limitations in section 256J.20, and the income 19.13 limitations in section 256J.21. 19.14 Sec. 7. [256J.11] [CITIZENSHIP.] 19.15 Subdivision 1. [GENERAL CITIZENSHIP REQUIREMENTS.] (a) A 19.16 member of the assistance unit must be a citizen of the United 19.17 States, a qualified noncitizen as defined in section 256J.08, or 19.18 a noncitizen who is otherwise residing lawfully in the United 19.19 States to be eligible for MFIP-S. 19.20 (b) A qualified noncitizen who entered the United States on 19.21 or after August 22, 1996, is eligible for MFIP-S. However, TANF 19.22 dollars cannot be used to fund the MFIP-S benefits for an 19.23 individual under this paragraph for a period of five years after 19.24 the date of entry unless the qualified noncitizen meets one of 19.25 the following criteria: 19.26 (1) was admitted to the United States as a refugee under 19.27 United States Code, title 8, section 1157; 19.28 (2) was granted asylum under United States Code, title 8, 19.29 section 1158; 19.30 (3) was granted withholding of deportation under the United 19.31 States Code, title 8, section 1253(h); 19.32 (4) is a veteran of the United States Armed Forces with an 19.33 honorable discharge for a reason other than noncitizen status, 19.34 their spouses and minor children; or 19.35 (5) is an individual on active duty in the United States 19.36 Armed Forces, other than for training, or is a spouse or minor 20.1 child of the same. 20.2 (c) A person who is not a qualified noncitizen who is 20.3 otherwise residing lawfully in the United States is eligible for 20.4 MFIP-S. However, TANF dollars cannot be used to fund the MFIP-S 20.5 benefits for an individual under this paragraph. 20.6 (d) For purposes of this subdivision, a nonimmigrant in one 20.7 or more of the classes listed in United States Code, title 8, 20.8 section 1101(a)(15), or an undocumented immigrant who resides in 20.9 the United States without the approval or acquiescence of the 20.10 Immigration and Naturalization Service, must not be considered 20.11 to be residing in the United States. 20.12 Subd. 2. [NONCITIZENS INELIGIBLE FOR MFIP-S FOOD PORTION.] 20.13 Noncitizens who do not meet one of the exemptions in section 412 20.14 of the Personal Responsibility and Work Opportunity 20.15 Reconciliation Act of 1996 are not eligible for the food portion 20.16 of MFIP-S. 20.17 Sec. 8. [256J.12] [MINNESOTA RESIDENCE.] 20.18 Subdivision 1. [RESIDENCY.] A family is considered to have 20.19 established residency in this state when a child or caregiver 20.20 has resided in this state for at least 30 days. After 20.21 satisfying the residency requirement, the family must be paid in 20.22 accordance with section 256J.43. 20.23 Subd. 2. [HARDSHIP EXCEPTION.] A county shall waive the 20.24 30-day residency requirement where unusual hardship would result 20.25 from denial of assistance. For purposes of this section, 20.26 unusual hardship means a family: 20.27 (1) is without alternative shelter or at risk of losing 20.28 shelter; or 20.29 (2) is without available resources for food. 20.30 Sec. 9. [256J.13] [MINOR CHILD IN ASSISTANCE UNIT; 20.31 PHYSICAL PRESENCE.] 20.32 Subdivision 1. [MINOR CHILD OR PREGNANT WOMAN.] The 20.33 assistance unit must include at least one minor child or a 20.34 pregnant woman. If a minor child is a recipient of Supplemental 20.35 Security Income or Minnesota supplemental aid, the assistance 20.36 unit is eligible for MFIP-S, but the needs of the minor child 21.1 receiving Supplemental Security Income or Minnesota supplemental 21.2 aid must not be taken into account when the county agency 21.3 determines the amount of the assistance payment to be paid to 21.4 the assistance unit. 21.5 Subd. 2. [PHYSICAL PRESENCE.] A minor child and a 21.6 caregiver must live together except as provided in the following 21.7 paragraphs. 21.8 (a) The physical presence requirement is met when a minor 21.9 child is required to live away from the caregiver's home to meet 21.10 the need for educational curricula that cannot be met by, but is 21.11 approved by, the local public school district, the home is 21.12 maintained for the minor child's return during periodic school 21.13 vacations, and the caregiver continues to maintain 21.14 responsibility for the support and care of the minor child. 21.15 (b) The physical presence requirement is met when an 21.16 applicant caregiver or applicant minor child is away from the 21.17 home due to illness or hospitalization, when the home is 21.18 maintained for the return of the absent family member, the 21.19 absence is not expected to last more than six months beyond the 21.20 month of departure, and the conditions of clause (1), (2), or 21.21 (3) apply: 21.22 (1) when the minor child and caregiver lived together 21.23 immediately prior to the absence, the caregiver continues to 21.24 maintain responsibility for the support and care of the minor 21.25 child, and the absence is reported at the time of application; 21.26 (2) when the pregnant mother is hospitalized or out of the 21.27 home due to the pregnancy; or 21.28 (3) when the newborn child and mother are hospitalized at 21.29 the time of birth. 21.30 (c) The absence of a caregiver or minor child does not 21.31 affect eligibility for the month of departure when the caregiver 21.32 or minor child received assistance for that month and lived 21.33 together immediately prior to the absence. Eligibility also 21.34 exists in the following month when the absence ends on or before 21.35 the tenth day of that month. A temporary absence of a caregiver 21.36 or a minor child which continues beyond the month of departure 22.1 must not affect eligibility when the home is maintained for the 22.2 return of the absent family member, the caregiver continues to 22.3 maintain responsibility for the support and care of the minor 22.4 child, and one of clauses (1) to (7) applies: 22.5 (1) a participant caregiver or participant child is absent 22.6 due to illness or hospitalization, and the absence is expected 22.7 to last no more than six months beyond the month of departure; 22.8 (2) a participant child is out of the home due to placement 22.9 in foster care as defined in section 260.015, subdivision 7, 22.10 when the placement will not be paid under title IV-E of the 22.11 Social Security Act, and when the absence is expected to last no 22.12 more than six months beyond the month of departure; 22.13 (3) a participant minor child is out of the home for a 22.14 vacation, the vacation is not with an absent parent, and the 22.15 absence is expected to last no more than two months beyond the 22.16 month of departure; 22.17 (4) a participant minor child is out of the home due to a 22.18 visit or vacation with an absent parent, the home of the minor 22.19 child remains with the caregiver, the absence meets the 22.20 conditions of this paragraph and the absence is expected to last 22.21 no more than two months beyond the month of departure; 22.22 (5) a participant caregiver is out of the home due to a 22.23 death or illness of a relative, incarceration, training, or 22.24 employment search and suitable arrangements have been made for 22.25 the care of the minor child, or a participant minor child is out 22.26 of the home due to incarceration, and the absence is expected to 22.27 last no more than two months beyond the month of departure; 22.28 (6) a participant caregiver and a participant minor child 22.29 are both absent from Minnesota due to a situation described in 22.30 clause (5), or vacation, and the absence is expected to last no 22.31 more than one month beyond the month of the departure; or 22.32 (7) a participant minor child has run away from home, and 22.33 another person has not made application for that minor child, 22.34 assistance must continue for no more than two months following 22.35 the month of departure. 22.36 Sec. 10. [256J.14] [ELIGIBILITY FOR PARENTING OR PREGNANT 23.1 MINORS.] 23.2 (a) The definitions in this paragraph only apply to this 23.3 subdivision. 23.4 (1) "Household of a parent, legal guardian, or other adult 23.5 relative" means the place of residence of: 23.6 (i) a natural or adoptive parent; 23.7 (ii) a legal guardian according to appointment or 23.8 acceptance under section 260.242, 525.615, or 525.6165, and 23.9 related laws; or 23.10 (iii) a caregiver. 23.11 (2) "Adult-supervised supportive living arrangement" means 23.12 a private family setting which assumes responsibility for the 23.13 care and control of the minor parent and minor child, or other 23.14 living arrangement, not including a public institution, licensed 23.15 by the commissioner of human services which ensures that the 23.16 minor parent receives adult supervision and supportive services, 23.17 such as counseling, guidance, independent living skills 23.18 training, or supervision. 23.19 (b) A minor parent and the minor child who is in the care 23.20 of the minor parent must reside in the household of a parent, 23.21 legal guardian, other appropriate adult relative, or other 23.22 caregiver, or in an adult-supervised supportive living 23.23 arrangement in order to receive MFIP-S unless: 23.24 (1) the minor parent has no living parent, other 23.25 appropriate adult relative, or legal guardian whose whereabouts 23.26 is known; 23.27 (2) no living parent, other appropriate adult relative, or 23.28 legal guardian of the minor parent allows the minor parent to 23.29 live in the parent's, appropriate adult relative's, or legal 23.30 guardian's home; 23.31 (3) the minor parent lived apart from the minor parent's 23.32 own parent or legal guardian for a period of at least one year 23.33 before either the birth of the minor child or the minor parent's 23.34 application for MFIP-S; 23.35 (4) the physical or emotional health or safety of the minor 23.36 parent or minor child would be jeopardized if the minor parent 24.1 and the minor child resided in the same residence with the minor 24.2 parent's parent, other appropriate adult relative, or legal 24.3 guardian; or 24.4 (5) an adult supervised supportive living arrangement is 24.5 not available for the minor parent and the dependent child in 24.6 the county in which the minor currently resides. If an adult 24.7 supervised supportive living arrangement becomes available 24.8 within the county, the minor parent and child must reside in 24.9 that arrangement. 24.10 (c) Minor applicants must be informed orally and in writing 24.11 about the eligibility requirements and their rights and 24.12 obligations under the MFIP-S program. The county must advise 24.13 the minor of the possible exemptions and specifically ask 24.14 whether one or more of these exemptions is applicable. If the 24.15 minor alleges one or more of these exemptions, then the county 24.16 must assist the minor in obtaining the necessary verifications 24.17 to determine whether or not these exemptions apply. 24.18 (d) If the county worker has reason to suspect that the 24.19 physical or emotional health or safety of the minor parent or 24.20 minor child would be jeopardized if they resided with the minor 24.21 parent's parent or legal guardian, then the county worker must 24.22 make a referral to child protective services to determine if 24.23 paragraph (b), clause (4), applies. A new determination by the 24.24 county worker is not necessary if one has been made within the 24.25 last six months, unless there has been a significant change in 24.26 circumstances which justifies a new referral and determination. 24.27 (e) If a minor parent is not living with a parent or legal 24.28 guardian due to paragraph (b), clause (1), (2), or (4), the 24.29 minor parent must reside, when possible, in a living arrangement 24.30 that meets the standards of paragraph (a), clause (2). 24.31 (f) When a minor parent and minor child live with another 24.32 adult relative, or in an adult-supervised supportive living 24.33 arrangement, MFIP-S must be paid, when possible, in the form of 24.34 a protective payment on behalf of the minor parent and minor 24.35 child in accordance with section 256J.39, subdivisions 2 to 4. 24.36 Sec. 11. [256J.15] [OTHER ELIGIBILITY CONDITIONS.] 25.1 Subdivision 1. [ELIGIBILITY WHEN THERE IS SHARED, COURT 25.2 ORDERED, AND OTHER CUSTODY ARRANGEMENTS.] The language of a 25.3 court order that specifies joint legal or physical custody does 25.4 not preclude a determination that a parent is absent. Absence 25.5 must be determined based on the actual facts of the absence 25.6 according to paragraphs (a) to (c). 25.7 (a) When a minor child spends time in each of the parents' 25.8 homes within a payment month, the minor child's home shall be 25.9 considered the home in which the majority of the minor child's 25.10 time is spent. When this time is exactly equal within a payment 25.11 month, or when the parents alternately live in the minor child's 25.12 home within a payment month, the minor child's home shall be 25.13 with that parent who is applying for MFIP, unless the minor 25.14 child's needs for the full payment month have already been met 25.15 through the provision of assistance to the other parent for that 25.16 month. 25.17 (b) When the physical custody of a minor child alternates 25.18 between parents for periods of at least one payment month, each 25.19 parent shall be eligible for assistance for any full payment 25.20 months the minor child's home is with that parent, except under 25.21 the conditions in paragraph (c). 25.22 (c) When a minor child's home is with one parent for the 25.23 majority of time in each month for at least nine consecutive 25.24 calendar months, and that minor child visits or vacations with 25.25 the other parent under section 256J.13, the minor child's home 25.26 remains with the first parent even when the stay with the second 25.27 parent is for all or the majority of the months in the period of 25.28 the temporary absence. 25.29 Subd. 2. [ELIGIBILITY DURING LABOR DISPUTES.] An 25.30 assistance unit with a member on strike must be a participant on 25.31 the day before the strike, or have been eligible for MFIP-S on 25.32 the day before the strike. 25.33 The county agency must count the striker's prestrike 25.34 earnings as current earnings. When a member of an assistance 25.35 unit who is not in the bargaining unit that voted for the strike 25.36 does not cross the picket line for fear of personal injury, the 26.1 assistance unit member is not a striker. Except for a member of 26.2 an assistance unit who is not in the bargaining unit that voted 26.3 for the strike and who does not cross the picket line for fear 26.4 of personal injury, a significant change cannot be invoked as a 26.5 result of a labor dispute. 26.6 Sec. 12. [256J.20] [PROPERTY LIMITATIONS.] 26.7 Subdivision 1. [PROPERTY OWNERSHIP PROVISIONS.] The county 26.8 agency must apply paragraphs (a) to (d) to real and personal 26.9 property. The county agency must use the equity value of 26.10 legally available real and personal property, except property 26.11 excluded in subdivisions 2 and 3, to determine whether an 26.12 applicant or participant is eligible for assistance. 26.13 (a) When real or personal property is jointly owned by two 26.14 or more persons, the county agency shall assume that each person 26.15 owns an equal share, except that either person owns the entire 26.16 sum of a joint personal checking or savings account. When an 26.17 applicant or participant documents greater or lesser ownership, 26.18 the county agency must use that greater or lesser share to 26.19 determine the equity value held by the applicant or 26.20 participant. Other types of ownership must be evaluated 26.21 according to law. 26.22 (b) Real or personal property owned by the applicant or 26.23 participant must be presumed legally available to the applicant 26.24 or participant unless the applicant or participant documents 26.25 that the property is not legally available to the applicant or 26.26 participant. When real or personal property is not legally 26.27 available, its equity value must not be applied against the 26.28 limits of subdivisions 2 and 3. 26.29 (c) An applicant must disclose whether the applicant has 26.30 transferred real or personal property valued in excess of the 26.31 property limits in subdivisions 2 and 3 for which reasonable 26.32 compensation was not received within one year prior to 26.33 application. A participant must disclose all transfers of 26.34 property valued in excess of these limits, according to the 26.35 reporting requirements in section 256J.30, subdivision 9. When 26.36 a transfer of real or personal property without reasonable 27.1 compensation has occurred: 27.2 (1) the person who transferred the property must provide 27.3 the property's description, information needed to determine the 27.4 property's equity value, the names of the persons who received 27.5 the property, and the circumstances of and reasons for the 27.6 transfer; and 27.7 (2) when the transferred property can be reasonably 27.8 reacquired, or when reasonable compensation can be secured, the 27.9 property is presumed legally available to the applicant or 27.10 participant. 27.11 (d) A participant may build the equity value of real and 27.12 personal property to the limits in subdivisions 2 and 3. 27.13 Subd. 2. [REAL PROPERTY LIMITATIONS.] Ownership of real 27.14 property by an applicant or participant is subject to the 27.15 limitations in paragraphs (a) and (b). 27.16 (a) A county agency shall exclude the homestead of an 27.17 applicant or participant according to clauses (1) to (4): 27.18 (1) an applicant or participant who is purchasing real 27.19 property through a contract for deed and using that property as 27.20 a home is considered the owner of real property; 27.21 (2) the total amount of land that can be excluded under 27.22 this subdivision is limited to surrounding property which is not 27.23 separated from the home by intervening property owned by 27.24 others. Additional property must be assessed as to its legal 27.25 and actual availability according to subdivision 1; 27.26 (3) when real property that has been used as a home by a 27.27 participant is sold, the county agency must treat the cash 27.28 proceeds from the sale as excluded property for six months when 27.29 the participant intends to reinvest the proceeds in another home 27.30 and maintains those proceeds, unused for other purposes, in a 27.31 separate account; and 27.32 (4) when the homestead is jointly owned, but the client 27.33 does not reside in it because of legal separation, pending 27.34 divorce, or battering or abuse by the spouse or partner, the 27.35 homestead is excluded. 27.36 (b) The equity value of real property that is not excluded 28.1 under paragraph (a) and which is legally available must be 28.2 applied against the limits in subdivision 3. When the equity 28.3 value of the real property exceeds the limits under subdivision 28.4 3, the applicant or participant may qualify to receive 28.5 assistance when the applicant or participant continues to make a 28.6 good faith effort to sell the property and signs a legally 28.7 binding agreement to repay the amount of assistance, less child 28.8 support collected by the agency. Repayment must be made within 28.9 five working days after the property is sold. Repayment to the 28.10 county agency must be in the amount of assistance received or 28.11 the proceeds of the sale, whichever is less. 28.12 Subd. 3. [OTHER PROPERTY LIMITATIONS.] To be eligible for 28.13 MFIP-S, the equity value of all nonexcluded real and personal 28.14 property of the assistance unit must not exceed $2,000 for 28.15 applicants and $5,000 for ongoing recipients. The value of 28.16 clauses (1) to (17) must be excluded when determining the equity 28.17 value of real and personal property: 28.18 (1) licensed automobiles, trucks, or vans up to a total 28.19 equity value of less than or equal to $7,500. Apply any excess 28.20 equity value to the asset limit described in this section. If 28.21 the assistance unit owns more than one licensed vehicle, 28.22 determine the vehicle with the highest equity value, count only 28.23 the equity value over $7,500. Count the equity value of all 28.24 other vehicles and apply this amount to the asset limit 28.25 described in this section. The value of special equipment for a 28.26 handicapped member of the assistance unit is excluded. To 28.27 establish the equity value of vehicles, a county agency must 28.28 subtract any outstanding encumbrances from the trade-in value 28.29 listed in the N.A.D.A. Official Used Car Guide, Midwest Edition, 28.30 for newer model cars. The N.A.D.A. Official Used Car Guide, 28.31 Midwest Edition, is incorporated by reference. When a vehicle 28.32 is not listed in the guidebook, or when the applicant or 28.33 participant disputes the value listed in the guidebook as 28.34 unreasonable given the condition of the particular vehicle, the 28.35 county agency may require the applicant or participant to 28.36 document the value by securing a written statement from a motor 29.1 vehicle dealer licensed under section 168.27, stating the amount 29.2 that the dealer would pay to purchase the vehicle. The county 29.3 agency shall reimburse the applicant or participant for the cost 29.4 of a written statement that documents a lower value; 29.5 (2) the value of life insurance policies for members of the 29.6 assistance unit; 29.7 (3) one burial plot per member of an assistance unit; 29.8 (4) the value of personal property needed to produce earned 29.9 income, including tools, implements, farm animals, inventory, 29.10 business loans, business checking and savings accounts used 29.11 exclusively for the operation of a self-employment business, and 29.12 any motor vehicles if the vehicles are essential for the 29.13 self-employment business; 29.14 (5) the value of personal property not otherwise specified 29.15 which is commonly used by household members in day-to-day living 29.16 such as clothing, necessary household furniture, equipment, and 29.17 other basic maintenance items essential for daily living; 29.18 (6) the value of real and personal property owned by a 29.19 recipient of Social Security Income or Minnesota supplemental 29.20 aid; 29.21 (7) the value of corrective payments, but only for the 29.22 month in which the payment is received and for the following 29.23 month; 29.24 (8) a mobile home used by an applicant or participant as 29.25 the applicant's or participant's home; 29.26 (9) money in a separate escrow account that is needed to 29.27 pay real estate taxes or insurance and that is used for this 29.28 purpose; 29.29 (10) money held in escrow to cover employee FICA, employee 29.30 tax withholding, sales tax withholding, employee worker 29.31 compensation, business insurance, property rental, property 29.32 taxes, and other costs that are paid at least annually, but less 29.33 often than monthly; 29.34 (11) monthly assistance and emergency assistance payments 29.35 for the current month's needs; 29.36 (12) the value of school loans, grants, or scholarships for 30.1 the period they are intended to cover; 30.2 (13) payments listed in section 256J.21, subdivision 2, 30.3 clause (9), which are held in escrow for a period not to exceed 30.4 three months to replace or repair personal or real property; 30.5 (14) income received in a budget month through the end of 30.6 the budget month; 30.7 (15) savings of a minor child or a minor parent that are 30.8 set aside in a separate account designated specifically for 30.9 future education or employment costs; 30.10 (16) the earned income tax credit and Minnesota working 30.11 family credit in the month received and the following month; and 30.12 (17) payments excluded under federal law as long as those 30.13 payments are held in a separate account from any nonexcluded 30.14 funds. 30.15 Sec. 13. [256J.21] [INCOME LIMITATIONS.] 30.16 Subdivision 1. [INCOME INCLUSIONS.] To determine MFIP-S 30.17 eligibility, the county agency must evaluate income received by 30.18 members of an assistance unit, or by other persons whose income 30.19 is considered available to the assistance unit. All payments, 30.20 unless specifically excluded in subdivision 2, must be counted 30.21 as income. 30.22 Subd. 2. [INCOME EXCLUSIONS.] (a) The following must be 30.23 excluded in determining a family's available income: 30.24 (1) payments for basic care, difficulty of care, and 30.25 clothing allowances received for providing family foster care to 30.26 children or adults under Minnesota Rules, parts 9545.0010 to 30.27 9545.0260 and 9555.5050 to 9555.6265, and payments received and 30.28 used for care and maintenance of a third-party beneficiary who 30.29 is not a household member; 30.30 (2) reimbursements for employment training received through 30.31 the Job Training Partnership Act, United States Code, title 29, 30.32 chapter 19, sections 1501 to 1792b; 30.33 (3) reimbursement for out-of-pocket expenses incurred while 30.34 performing volunteer services, jury duty, or employment; 30.35 (4) all educational assistance, except the county agency 30.36 must count graduate student teaching assistantships, 31.1 fellowships, and other similar paid work as earned income and, 31.2 after allowing deductions for any unmet and necessary 31.3 educational expenses, shall count scholarships or grants awarded 31.4 to graduate students that do not require teaching or research as 31.5 unearned income; 31.6 (5) loans, regardless of purpose, from public or private 31.7 lending institutions, governmental lending institutions, or 31.8 governmental agencies; 31.9 (6) loans from private individuals, regardless of purpose, 31.10 provided an applicant or participant documents that the lender 31.11 expects repayment; 31.12 (7) state and federal income tax refunds; 31.13 (8) state and federal earned income credits; 31.14 (9) funds received for reimbursement, replacement, or 31.15 rebate of personal or real property when these payments are made 31.16 by public agencies, awarded by a court, solicited through public 31.17 appeal, or made as a grant by a federal agency, state or local 31.18 government, or disaster assistance organizations, subsequent to 31.19 a presidential declaration of disaster; 31.20 (10) the portion of an insurance settlement that is used to 31.21 pay medical, funeral, and burial expenses, or to repair or 31.22 replace insured property; 31.23 (11) reimbursements for medical expenses that cannot be 31.24 paid by medical assistance; 31.25 (12) payments by a vocational rehabilitation program 31.26 administered by the state under chapter 268A, except those 31.27 payments that are for current living expenses; 31.28 (13) in-kind income, including any payments directly made 31.29 by a third party to a provider of goods and services; 31.30 (14) assistance payments to correct underpayments, but only 31.31 for the month in which the payment is received; 31.32 (15) emergency assistance payments; 31.33 (16) funeral and cemetery payments as provided by section 31.34 256.935; 31.35 (17) nonrecurring cash gifts of $30 or less, not exceeding 31.36 $30 per participant in a calendar month; 32.1 (18) any form of energy assistance payment made through 32.2 Public Law Number 97-35, Low-Income Home Energy Assistance Act 32.3 of 1981, payments made directly to energy providers by other 32.4 public and private agencies, and any form of credit or rebate 32.5 payment issued by energy providers; 32.6 (19) Supplemental Security Income, including retroactive 32.7 payments; 32.8 (20) Minnesota supplemental aid, including retroactive 32.9 payments; 32.10 (21) proceeds from the sale of real or personal property; 32.11 (22) adoption assistance payments under section 259.67; 32.12 (23) state-funded family subsidy program payments made 32.13 under section 252.32 to help families care for children with 32.14 mental retardation or related conditions; 32.15 (24) interest payments and dividends from property that is 32.16 not excluded from and that does not exceed the asset limit; 32.17 (25) rent rebates; 32.18 (26) income earned by a minor caregiver or minor child who 32.19 is at least a half-time student; 32.20 (27) income earned by a caregiver under age 20 who is at 32.21 least a half-time student in an approved secondary education 32.22 program; 32.23 (28) MFIP-S child care payments under section 119B.05; 32.24 (29) all other payments made through MFIP-S to support a 32.25 caregiver's pursuit of greater self-support; 32.26 (30) income a participant receives related to shared living 32.27 expenses; 32.28 (31) reverse mortgages; 32.29 (32) benefits provided by the Child Nutrition Act of 1966, 32.30 United States Code, title 42, chapter 13A, sections 1771 to 32.31 1790; 32.32 (33) benefits provided by the women, infants, and children 32.33 (WIC) nutrition program, United States Code, title 42, chapter 32.34 13A, section 1786; 32.35 (34) benefits from the National School Lunch Act, United 32.36 States Code, title 42, chapter 13, sections 1751 to 1769e; 33.1 (35) relocation assistance for displaced persons under the 33.2 Uniform Relocation Assistance and Real Property Acquisition 33.3 Policies Act of 1970, United States Code, title 42, chapter 61, 33.4 subchapter II, section 4636, or the National Housing Act, United 33.5 States Code, title 12, chapter 13, sections 1701 to 1750jj; 33.6 (36) benefits from the Trade Act of 1974, United States 33.7 Code, title 19, chapter 12, part 2, sections 2271 to 2322; 33.8 (37) war reparations payments to Japanese Americans and 33.9 Aleuts under United States Code, title 50, sections 1989 to 33.10 1989d; 33.11 (38) payments to veterans or their dependents as a result 33.12 of legal settlements regarding Agent Orange or other chemical 33.13 exposure under Public Law Number 101-239, section 10405, 33.14 paragraph (a)(2)(E); 33.15 (39) income that is otherwise specifically excluded from 33.16 the MFIP-S program consideration in federal law, state law, or 33.17 federal regulation; 33.18 (40) security and utility deposit refunds; and 33.19 (41) American Indian tribal land settlements excluded under 33.20 Public Law Numbers 98-123, 98-124, and 99-377 to the Mississippi 33.21 Band Chippewa Indians of White Earth, Leech Lake, and Mille Lacs 33.22 reservations and payments to members of the White Earth Band, 33.23 under United States Code, title 25, chapter 9, section 331, and 33.24 chapter 16, section 1407. 33.25 (b) When determining income of members of the family who do 33.26 not elect to be included in the assistance unit, the county 33.27 agency shall count the remaining income after disregarding: 33.28 (1) all income of the minor parent's parent when 33.29 determining the grant for the minor parent in households that 33.30 include a minor parent living with a parent on TANF with other 33.31 dependent children. The standard of need for the minor parent 33.32 is equal to the standard of need available if the minor parent's 33.33 parent was not a recipient of TANF; and 33.34 (2) income of the minor parent's parent equal to 200 33.35 percent of the federal poverty guideline for a family size not 33.36 including the minor parent and the minor parent's child in 34.1 households that include a minor parent living with a parent not 34.2 on TANF when determining the grant for the minor parent. The 34.3 remainder of income is deemed under Code of Federal Regulations, 34.4 title 45, section 233.20(a)(3)(xviii). 34.5 Subd. 3. [INITIAL INCOME TEST.] The county agency shall 34.6 determine initial eligibility by considering all earned and 34.7 unearned income that is not excluded under subdivision 2. To be 34.8 eligible for MFIP-S, the assistance unit's countable income 34.9 minus the disregards in paragraphs (a) to (d) must be below the 34.10 transitional standard of assistance according to section 256J.24 34.11 for that size assistance unit. 34.12 (a) When determining initial eligibility, the employment 34.13 disregard is 18 percent of the gross earned income whether or 34.14 not the member is working full time or part time. 34.15 (b) When determining initial eligibility, all payments made 34.16 according to a court order for the support of children not 34.17 living in the assistance unit's household must be disregarded 34.18 from the income of the person with the legal obligation to pay 34.19 support, provided that, if there has been a change in the 34.20 financial circumstances of the person with the legal obligation 34.21 to pay support since the support order was entered, the person 34.22 with the legal obligation to pay support has petitioned for a 34.23 modification of the court order. 34.24 (c) When determining initial eligibility, dependent care 34.25 costs must be deducted from gross earned income for the actual 34.26 amount paid for dependent care up to the maximum disregard 34.27 allowed under this chapter and chapter 119B. 34.28 (d) Notwithstanding paragraph (a), when determining initial 34.29 eligibility for participants who have received AFDC, family 34.30 general assistance, MFIP, work first, or MFIP-S in this state 34.31 within four months of the most recent application for MFIP-S, 34.32 the employment disregard is 37 percent of the gross earned 34.33 income. 34.34 After initial eligibility is established, the assistance 34.35 payment calculation is based on the monthly income test. 34.36 Subd. 4. [MONTHLY INCOME TEST AND DETERMINATION OF 35.1 ASSISTANCE PAYMENT.] The county agency shall determine ongoing 35.2 eligibility and the assistance payment amount according to the 35.3 monthly income test. To be eligible for MFIP-S, the result of 35.4 the computations in paragraphs (a) to (e) must be at least $1. 35.5 (a) Apply a 37 percent income disregard to gross earnings 35.6 and subtract this amount from the family wage level. If the 35.7 difference is equal to or greater than the transitional 35.8 standard, the assistance payment is equal to the transitional 35.9 standard. If the difference is less than the transitional 35.10 standard, the assistance payment is equal to the difference. 35.11 The employment disregard in this paragraph must be deducted 35.12 every month there is earned income. 35.13 (b) All payments made according to a court order for the 35.14 support of children not living in the assistance unit's 35.15 household must be disregarded from the income of the person with 35.16 the legal obligation to pay support, provided that, if there has 35.17 been a change in the financial circumstances of the person with 35.18 the legal obligation to pay support since the support order was 35.19 entered, the person with the legal obligation to pay support has 35.20 petitioned for a modification of the court order. 35.21 (c) Subtract unearned income dollar for dollar from the 35.22 transitional standard to determine the assistance payment amount. 35.23 (d) When income is both earned and unearned, the amount of 35.24 the assistance payment must be determined by first treating 35.25 gross earned income as specified in paragraph (a). After 35.26 determining the amount of the assistance payment under paragraph 35.27 (a), unearned income must be subtracted from that amount dollar 35.28 for dollar to determine the assistance payment amount. 35.29 (e) When the monthly income is greater than the 35.30 transitional or family wage level standard after applicable 35.31 deductions and the income will only exceed the standard for one 35.32 month, the county agency must suspend the assistance payment for 35.33 the payment month. 35.34 Subd. 5. [DISTRIBUTION OF INCOME.] The income of all 35.35 members of the assistance unit must be counted. Income may also 35.36 be deemed from ineligible persons to the assistance unit. 36.1 Income must be attributed to the person who earns it or to the 36.2 assistance unit according to paragraphs (a) to (c). 36.3 (a) Funds distributed from a trust, whether from the 36.4 principal holdings or sale of trust property or from the 36.5 interest and other earnings of the trust holdings, must be 36.6 considered income when the income is legally available to an 36.7 applicant or participant. Trusts are presumed legally available 36.8 unless an applicant or participant can document that the trust 36.9 is not legally available. 36.10 (b) Income from jointly owned property must be divided 36.11 equally among property owners unless the terms of ownership 36.12 provide for a different distribution. 36.13 (c) Deductions are not allowed from the gross income of a 36.14 financially responsible household member or by the members of an 36.15 assistance unit to meet a current or prior debt. 36.16 Sec. 14. [256J.24] [FAMILY COMPOSITION AND ASSISTANCE 36.17 STANDARDS.] 36.18 Subdivision 1. [MFIP-S ASSISTANCE UNIT.] An MFIP-S 36.19 assistance unit is either a group of individuals with at least 36.20 one minor child who live together whose needs, assets, and 36.21 income are considered together and who receive MFIP-S 36.22 assistance, or a pregnant woman who receives MFIP-S assistance. 36.23 Individuals identified in subdivision 2 must be included in the 36.24 MFIP-S assistance unit. Individuals identified in subdivision 3 36.25 must be excluded from the assistance unit. Individuals 36.26 identified in subdivision 4 may be included in the assistance 36.27 unit at their option. Individuals not included in the 36.28 assistance unit who are identified in section 256J.37, 36.29 subdivision 1, must have their income considered when 36.30 determining eligibility and benefits for an MFIP-S assistance 36.31 unit. All assistance unit members, whether mandatory or 36.32 elective, who live together and for whom one caregiver or two 36.33 caregivers apply must be included in a single assistance unit. 36.34 Subd. 2. [MANDATORY ASSISTANCE UNIT COMPOSITION.] When the 36.35 following individuals live together, they must be included in 36.36 the assistance unit: 37.1 (1) a minor child; 37.2 (2) the minor child's siblings, half-siblings, and 37.3 step-siblings; and 37.4 (3) the minor child's natural, adoptive parents, and 37.5 stepparents. 37.6 Subd. 3. [INDIVIDUALS WHO MUST BE EXCLUDED FROM AN 37.7 ASSISTANCE UNIT.] The following individuals must be excluded 37.8 from an assistance unit: 37.9 (1) individuals receiving Supplemental Security Income or 37.10 Minnesota supplemental aid; 37.11 (2) individuals living at home while performing 37.12 court-imposed, unpaid community service work due to a criminal 37.13 conviction; and 37.14 (3) individuals disqualified from the food stamp program 37.15 until the disqualification ends. 37.16 Subd. 4. [INDIVIDUALS WHO MAY ELECT TO BE INCLUDED IN THE 37.17 ASSISTANCE UNIT.] The minor child's eligible relative caregiver 37.18 may choose to be in the assistance unit. If the relative 37.19 caregiver chooses to be in the assistance unit, that person's 37.20 spouse must also be in the unit. 37.21 Subd. 4a. [CAREGIVER STATUS.] A caregiver who is complying 37.22 with the requirements of sections 256J.14 and 256J.54 is not a 37.23 head of household for purposes of the 60-month lifetime limit on 37.24 assistance under section 256J.42. 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 sizes 38.7 1 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. 7. [FAMILY WAGE LEVEL STANDARD.] The family wage 38.12 level standard is 110 percent of the transitional standard under 38.13 subdivision 5 and is the standard used when there is earned 38.14 income in the assistance unit. As specified in section 256J.21, 38.15 earned income is subtracted from the family wage level to 38.16 determine the amount of the assistance payment. Assistance 38.17 payments may not exceed the transitional standard for the 38.18 assistance unit. 38.19 Sec. 15. [256J.26] [PERSONS INELIGIBLE.] 38.20 Subdivision 1. [PAROLE VIOLATORS.] An individual violating 38.21 a condition of probation or parole imposed under federal or 38.22 state law is ineligible to receive MFIP-S. 38.23 Subd. 2. [FLEEING FELONS.] An individual who is fleeing to 38.24 avoid prosecution, or custody, or confinement after conviction 38.25 for a crime that is a felony under the laws of the state from 38.26 which the individual flees, or in the case of New Jersey, is a 38.27 high misdemeanor, is ineligible to receive MFIP-S. 38.28 Subd. 3. [DENIAL OF ASSISTANCE FOR TEN YEARS TO A PERSON 38.29 FOUND TO HAVE FRAUDULENTLY MISREPRESENTED RESIDENCY.] An 38.30 individual who is convicted in federal or state court of having 38.31 made a fraudulent statement or representation with respect to 38.32 the place of residence of the individual in order to receive 38.33 assistance simultaneously from two or more states is ineligible 38.34 to receive MFIP-S for ten years beginning on the date of the 38.35 conviction. 38.36 Sec. 16. [256J.28] [PROVISIONS RELATED SPECIFICALLY TO 39.1 FOOD STAMP ASSISTANCE.] 39.2 Subdivision 1. [EXPEDITED ISSUANCE OF FOOD STAMP 39.3 ASSISTANCE.] The following households are entitled to expedited 39.4 issuance of food stamp assistance: 39.5 (1) households with less than $150 in monthly gross income 39.6 provided their liquid assets do not exceed $100; 39.7 (2) migrant or seasonal farm worker households who are 39.8 destitute as defined in Code of Federal Regulations, title 7, 39.9 subtitle B, chapter 2, subchapter C, part 273, section 273.10, 39.10 paragraph (e)(3), provided their liquid assets do not exceed 39.11 $100; and 39.12 (3) eligible households whose combined monthly gross income 39.13 and liquid resources are less than the household's monthly rent 39.14 or mortgage and utilities. 39.15 The benefits issued through expedited issuance of food 39.16 stamp assistance must be deducted from the amount of the full 39.17 monthly MFIP-S assistance payment and a supplemental payment for 39.18 the difference must be issued. 39.19 Subd. 2. [FOOD STAMPS FOR HOUSEHOLD MEMBERS NOT IN THE 39.20 ASSISTANCE UNIT.] For household members who purchase and prepare 39.21 food with the MFIP-S assistance unit but are not part of the 39.22 assistance unit, the county agency must determine a separate 39.23 food stamp benefit based on regulations agreed upon with the 39.24 department of agriculture. 39.25 This subdivision does not apply to optional members who 39.26 have chosen not to be in the assistance unit. 39.27 Fair hearing requirements for persons who receive food 39.28 stamps under this subdivision are governed by section 256.045, 39.29 and Code of Federal Regulations, title 7, subtitle B, chapter 39.30 II, part 273, section 273.15. 39.31 Subd. 3. [INCOME DISREGARD FOR CERTAIN PROGRAMS, FOOD 39.32 ASSISTANCE PORTION OF ASSISTANCE PAYMENT.] The portion of the 39.33 MFIP-S assistance payment that is designated by the commissioner 39.34 as the food assistance portion of the assistance payment must be 39.35 disregarded as income in the following programs: 39.36 (1) housing subsidy programs; 40.1 (2) low-income home energy assistance program; 40.2 (3) Supplemental Security Income, when determining interim 40.3 assistance amount; and 40.4 (4) other programs that do not count food stamps as income. 40.5 For the purposes of this subdivision, the food assistance 40.6 portion of the assistance payment means a predetermined portion 40.7 of the MFIP-S assistance payment that may be received in 40.8 point-of-purchase sites or as food stamps. The predetermined 40.9 portion of the assistance payment will vary by family profile, 40.10 which is based on family size. 40.11 Sec. 17. [256J.30] [APPLICANT AND PARTICIPANT REQUIREMENTS 40.12 AND RESPONSIBILITIES.] 40.13 Subdivision 1. [APPLICANT REPORTING REQUIREMENTS.] An 40.14 applicant must provide information on an application form and 40.15 supplemental forms about the applicant's circumstances which 40.16 affect MFIP-S eligibility or the assistance payment. An 40.17 applicant must report changes identified in subdivision 9 while 40.18 the application is pending. When an applicant does not 40.19 accurately report information on an application, both an 40.20 overpayment and a referral for a fraud investigation may 40.21 result. When an applicant does not provide information or 40.22 documentation, the receipt of the assistance payment may be 40.23 delayed or the application may be denied depending on the type 40.24 of information required and its effect on eligibility. 40.25 Subd. 2. [REQUIREMENT TO APPLY FOR OTHER BENEFITS.] An 40.26 applicant or participant must apply for and follow through with 40.27 appealing any denials of eligibility for benefits from other 40.28 programs for which the applicant or participant is potentially 40.29 eligible and which would, if received, offset assistance 40.30 payments. An applicant's or participant's failure to complete 40.31 application for these benefits without good cause results in 40.32 denial or termination of assistance. Good cause for failure to 40.33 apply for these benefits is allowed when circumstances beyond 40.34 the control of the applicant or participant prevent the 40.35 applicant or participant from making an application. 40.36 Subd. 3. [RESPONSIBILITY TO INQUIRE.] An applicant or 41.1 participant who does not know or is unsure whether a given 41.2 change in circumstances will affect the applicant's or 41.3 participant's MFIP-S eligibility or assistance payment must 41.4 contact the county agency for information. 41.5 Subd. 4. [PARTICIPANT'S COMPLETION OF RECERTIFICATION OF 41.6 ELIGIBILITY FORM.] A participant must complete forms prescribed 41.7 by the commissioner which are required for recertification of 41.8 eligibility according to section 256J.32, subdivision 5. 41.9 Subd. 5. [MONTHLY MFIP-S HOUSEHOLD REPORTS.] Each 41.10 assistance unit with a member who has earned income or a recent 41.11 work history, and each assistance unit that has income deemed to 41.12 it from a financially responsible person must complete a monthly 41.13 MFIP-S household report form. "Recent work history" means the 41.14 individual received earned income in the report month or any of 41.15 the previous three calendar months even if the earnings are 41.16 excluded. To be complete, the MFIP-S household report form must 41.17 be signed and dated by the caregivers no earlier than the last 41.18 day of the reporting period. All questions required to 41.19 determine assistance payment eligibility must be answered, and 41.20 documentation of earned income must be included. 41.21 Subd. 6. [SIX-MONTH MFIP-S HOUSEHOLD REPORT.] Assistance 41.22 units that are not required to report monthly under subdivision 41.23 5 must complete an MFIP-S household report form every six 41.24 months. To be complete, the MFIP-S household report form must 41.25 be signed and dated by the caregiver or caregivers no earlier 41.26 than the last day of the reporting period. All questions 41.27 required to determine assistance payment eligibility must be 41.28 answered and documentation of earned income must be included. 41.29 Subd. 7. [DUE DATE OF MFIP-S HOUSEHOLD REPORT.] An MFIP-S 41.30 household report form must be received by the county agency by 41.31 the eighth calendar day of the month following the reporting 41.32 period covered by the form. When the eighth calendar day of the 41.33 month falls on a weekend or holiday, the MFIP-S household report 41.34 form must be received by the county agency the first working day 41.35 that follows the eighth calendar day. The county agency must 41.36 send a notice of termination because of a late or incomplete 42.1 MFIP-S household report form. 42.2 Subd. 8. [LATE MFIP-S HOUSEHOLD REPORT FORMS.] Paragraphs 42.3 (a) to (d) apply to the reporting requirements in subdivision 7. 42.4 (a) When a caregiver submits an incomplete MFIP-S household 42.5 report form before the last working day of the month on which a 42.6 ten-day notice of termination can be issued, the county agency 42.7 must return the incomplete form on or before the ten-day notice 42.8 deadline or any previously sent ten-day notice of termination is 42.9 invalid. 42.10 (b) When a complete MFIP-S household report form is not 42.11 received by a county agency before the last ten days of the 42.12 month in which the form is due, the county agency must send a 42.13 notice of proposed termination of assistance. When a caregiver 42.14 submits an incomplete form on or after the date a notice of 42.15 proposed termination has been sent, the termination is valid 42.16 unless the caregiver submits a complete form before the end of 42.17 the month. 42.18 (c) An assistance unit required to submit an MFIP-S 42.19 household report form is considered to have continued its 42.20 application for assistance if a complete MFIP-S household report 42.21 form is received within a calendar month after the month in 42.22 which assistance was received and assistance shall be paid for 42.23 the period beginning with the first day of the month in which 42.24 the report was due. 42.25 (d) A county agency must allow good cause exemptions from 42.26 the reporting requirements under subdivisions 5 and 6 when any 42.27 of the following factors cause a caregiver to fail to provide 42.28 the county agency with a completed MFIP-S household report form 42.29 before the end of the month in which the form is due: 42.30 (1) an employer delays completion of employment 42.31 verification; 42.32 (2) a county agency does not help a caregiver complete the 42.33 MFIP-S household report form when the caregiver asks for help; 42.34 (3) a caregiver does not receive an MFIP-S household report 42.35 form due to mistake on the part of the department or the county 42.36 agency or due to a reported change in address; 43.1 (4) a caregiver is ill, or physically or mentally 43.2 incapacitated; or 43.3 (5) some other circumstance occurs that a caregiver could 43.4 not avoid with reasonable care which prevents the caregiver from 43.5 providing a completed MFIP-S household report form before the 43.6 end of the month in which the form is due. 43.7 Subd. 9. [CHANGES THAT MUST BE REPORTED.] A caregiver must 43.8 report the changes or anticipated changes specified in clauses 43.9 (1) to (16) within ten days of the date they occur, within ten 43.10 days of the date the caregiver learns that the change will 43.11 occur, at the time of the periodic recertification of 43.12 eligibility under section 256J.32, subdivision 6, or within 43.13 eight calendar days of a reporting period as in subdivision 5 or 43.14 6, whichever occurs first. A caregiver must report other 43.15 changes at the time of the periodic recertification of 43.16 eligibility under section 256J.32, subdivision 6, or at the end 43.17 of a reporting period under subdivision 5 or 6, as applicable. 43.18 A caregiver must make these reports in writing or in person to 43.19 the county agency. When a county agency could have reduced or 43.20 terminated assistance for one or more payment months if a delay 43.21 in reporting a change specified under clauses (1) to (16) had 43.22 not occurred, the county agency must determine whether a timely 43.23 notice under section 256J.31, subdivision 4, could have been 43.24 issued on the day that the change occurred. When a timely 43.25 notice could have been issued, each month's overpayment 43.26 subsequent to that notice must be considered a client error 43.27 overpayment under section 256J.38. Changes in circumstances 43.28 which must be reported within ten days must also be reported on 43.29 the MFIP-S household report form for the reporting period in 43.30 which those changes occurred. Within ten days, a caregiver must 43.31 report: 43.32 (1) a change in initial employment; 43.33 (2) a change in initial receipt of unearned income; 43.34 (3) a recurring change in unearned income; 43.35 (4) a nonrecurring change of unearned income that exceeds 43.36 $30; 44.1 (5) the receipt of a lump sum; 44.2 (6) an increase in assets that may cause the assistance 44.3 unit to exceed asset limits; 44.4 (7) a change in the physical or mental status of an 44.5 incapacitated adult if the physical or mental status is the 44.6 basis of exemption from an MFIP-S work and training program; 44.7 (8) a change in employment status; 44.8 (9) a change in household composition, including births, 44.9 returns to and departures from the home of assistance unit 44.10 members and financially responsible persons, or a change in the 44.11 custody of a minor child; 44.12 (10) a change in health insurance coverage; 44.13 (11) the marriage or divorce of an assistance unit member; 44.14 (12) the death of a parent, minor child, or financially 44.15 responsible person; 44.16 (13) a change in address or living quarters of the 44.17 assistance unit; 44.18 (14) the sale, purchase, or other transfer of property; 44.19 (15) a change in school attendance of a custodial parent or 44.20 an employed child; and 44.21 (16) filing a lawsuit, a workers' compensation claim, or a 44.22 monetary claim against a third party. 44.23 Subd. 10. [COOPERATION WITH HEALTH CARE BENEFITS.] (a) The 44.24 caregiver of a minor child must cooperate with the county agency 44.25 to identify and provide information to assist the county agency 44.26 in pursuing third-party liability for medical services. 44.27 (b) A caregiver must assign to the department any rights to 44.28 health insurance policy benefits the caregiver has during the 44.29 period of MFIP-S eligibility. 44.30 (c) A caregiver must identify any third party who may be 44.31 liable for care and services available under the medical 44.32 assistance program on behalf of the applicant or participant and 44.33 all other assistance unit members. 44.34 (d) When a participant refuses to assign the rights to the 44.35 department, or when a participant refuses to identify any third 44.36 party who may be liable for care and services, the recipient 45.1 must be sanctioned as provided in section 256J.46. The 45.2 recipient is also ineligible for medical assistance for a 45.3 minimum of one month and until the recipient cooperates with the 45.4 requirements of this subdivision. 45.5 Subd. 11. [REQUIREMENT TO ASSIGN SUPPORT AND MAINTENANCE 45.6 RIGHTS.] To be eligible for MFIP-S, the caregiver must assign 45.7 all rights to child support and spousal maintenance benefits . 45.8 Subd. 12. [REQUIREMENT TO PROVIDE SOCIAL SECURITY 45.9 NUMBERS.] Each member of the assistance unit must provide the 45.10 member's social security number to the county agency, except for 45.11 members in the assistance unit who are qualified aliens who are 45.12 victims of domestic violence as defined under section 256J.49. 45.13 When a social security number is not provided to the county 45.14 agency for verification, this requirement is satisfied when each 45.15 member of the assistance unit cooperates with the procedures for 45.16 verification of numbers, issuance of duplicate cards, and 45.17 issuance of new numbers which have been established jointly 45.18 between the Social Security Administration and the commissioner. 45.19 Sec. 18. [256J.31] [APPLICANT AND PARTICIPANT RIGHTS AND 45.20 COUNTY AGENCY RESPONSIBILITIES.] 45.21 Subdivision 1. [RIGHT TO INFORMATION.] An applicant or 45.22 participant has the right to obtain from the county agency 45.23 information about the benefits, requirements, restrictions, and 45.24 appeal provisions of public assistance programs. 45.25 Subd. 2. [RIGHT TO AUTHORIZED REPRESENTATIVE.] An 45.26 applicant or participant has the right to designate an 45.27 authorized representative to act on the applicant's or 45.28 participant's behalf. An applicant or participant has the right 45.29 to be assisted or represented by an authorized representative in 45.30 eligibility determinations, recertification, conciliation 45.31 conferences, the fair hearing process, and any other contacts 45.32 with the county agency or the department. When a county agency 45.33 determines that it is necessary for a person to assist an 45.34 applicant or participant, the county agency must designate a 45.35 staff member to assist the applicant or participant. Upon a 45.36 request from an applicant or participant, a county agency must 46.1 provide addresses and telephone numbers of organizations that 46.2 provide legal services at low cost or no cost to low-income 46.3 persons. 46.4 Subd. 3. [RIGHT OF APPLICANT TO NOTICE.] A county agency 46.5 must notify an applicant of the disposition of the applicant's 46.6 application. The notice must be in writing and on forms 46.7 prescribed by the commissioner. The county agency must mail the 46.8 notice to the last known mailing address provided by the 46.9 applicant. When an application is denied, the county agency 46.10 must notify the applicant in writing of the reasons for the 46.11 denial, of the right to appeal, and of the right to reapply for 46.12 assistance. 46.13 Subd. 4. [PARTICIPANT'S RIGHT TO NOTICE.] A county agency 46.14 must give a participant written notice of all adverse actions 46.15 affecting the participant including payment reductions, 46.16 suspensions, terminations, and use of protective, vendor, or 46.17 two-party payments. The notice of adverse action must be on a 46.18 form prescribed or approved by the commissioner and must be 46.19 mailed to the last known mailing address provided by the 46.20 participant. The county agency must state on the notice of 46.21 adverse action the action it intends to take, the reasons for 46.22 the action, the participant's right to appeal the action, the 46.23 conditions under which assistance can be continued pending an 46.24 appeal decision, and the related consequences of the action. 46.25 Subd. 5. [MAILING OF NOTICE.] The notice of adverse action 46.26 shall be issued according to paragraphs (a) to (c). 46.27 (a) A county agency shall mail a notice of adverse action 46.28 at least ten days before the effective date of the adverse 46.29 action, except as provided in paragraphs (b) and (c). 46.30 (b) A county agency must mail a notice of adverse action at 46.31 least five days before the effective date of the adverse action 46.32 when the county agency has factual information that requires an 46.33 action to reduce, suspend, or terminate assistance based on 46.34 probable fraud. 46.35 (c) A county agency shall mail a notice of adverse action 46.36 before or on the effective date of the adverse action when the 47.1 county agency: 47.2 (1) receives the caregiver's signed monthly MFIP-S 47.3 household report form that includes information that requires 47.4 payment reduction, suspension, or termination; 47.5 (2) is informed of the death of a participant or the payee; 47.6 (3) receives a signed statement from the caregiver that 47.7 assistance is no longer wanted; 47.8 (4) receives a signed statement from the caregiver that 47.9 provides information that requires the termination or reduction 47.10 of assistance; 47.11 (5) verifies that a member of the assistance unit is absent 47.12 from the home and does not meet temporary absence provisions in 47.13 section 256J.13; 47.14 (6) verifies that a member of the assistance unit has 47.15 entered a regional treatment center or a licensed residential 47.16 facility for medical or psychological treatment or 47.17 rehabilitation; 47.18 (7) verifies that a member of an assistance unit has been 47.19 placed in foster care, and the provisions of section 256J.13, 47.20 subdivision 2, paragraph (b), do not apply; 47.21 (8) verifies that a member of an assistance unit has been 47.22 approved to receive assistance by another county or state; or 47.23 (9) cannot locate a caregiver. 47.24 Subd. 6. [APPEAL RIGHTS.] An applicant, participant, or 47.25 former participant has the right to request a fair hearing when 47.26 aggrieved by an action or inaction of a county agency. A 47.27 request for a fair hearing and rights pending a fair hearing are 47.28 set as specified in section 256J.40. 47.29 Subd. 7. [CASE RECORDS AVAILABLE.] A county agency must 47.30 make financial case records available to the participant or 47.31 former participant as soon as possible but no later than the 47.32 fifth business day following the date of the request. When the 47.33 participant or former participant asks for photocopies of 47.34 material from the financial case record, the county agency must 47.35 provide one copy of each page at no cost. 47.36 Subd. 8. [RIGHT TO MANAGE AFFAIRS.] Except for protective 48.1 payment provisions authorized under section 256J.39, 48.2 participants have the right to manage their own affairs. 48.3 Subd. 9. [RIGHT TO PROTECTION.] Minor caregivers have the 48.4 right to protection. The county agency must refer a minor 48.5 caregiver to the social service unit within 30 days of the date 48.6 the application is approved. The social service unit must 48.7 assist the caregiver who is less than 18 years of age to develop 48.8 a plan as specified in section 256J.54. 48.9 Subd. 10. [PROTECTION FROM GARNISHMENT.] MFIP-S grants or 48.10 earnings of a caregiver while participation in full or part-time 48.11 employment or training shall be protected from garnishment. 48.12 This protection for earnings shall extend for a period of six 48.13 months from the date of termination from MFIP-S. 48.14 Subd. 11. [RESPONSIBILITY TO RETAIN CASE RECORDS.] The 48.15 county agency must retain financial case records and employment 48.16 and training service records for MFIP-S cases according to 48.17 chapter 13. 48.18 Sec. 19. [256J.315] [COUNTY AND TRIBAL COOPERATION.] 48.19 The county agency must cooperate with tribal governments in 48.20 the implementation of MFIP-S to ensure that the program meets 48.21 the special needs of persons living on Indian reservations. 48.22 This cooperation must include, but is not limited to, the 48.23 sharing of MFIP-S duties including initial screening, 48.24 orientation, assessments, and provision of employment and 48.25 training services. The county agency shall encourage tribal 48.26 governments to assume duties related to MFIP-S and shall work 48.27 cooperatively with tribes that have assumed responsibility for a 48.28 portion of the MFIP-S program to expand tribal responsibilities, 48.29 if that expansion is requested by the tribe. 48.30 Sec. 20. [256J.32] [DOCUMENTING, VERIFYING, AND 48.31 RECERTIFYING ELIGIBILITY.] 48.32 Subdivision 1. [VERIFICATION OF INFORMATION.] A county 48.33 agency must only require verification of information necessary 48.34 to determine MFIP-S eligibility and the amount of the assistance 48.35 payment. 48.36 Subd. 2. [DOCUMENTATION.] The applicant or participant 49.1 must document the information required under subdivisions 4 to 6 49.2 or authorize the county agency to verify the information. The 49.3 applicant or participant has the burden of providing documentary 49.4 evidence to verify eligibility. The county agency shall assist 49.5 the applicant or participant in obtaining required documents 49.6 when the applicant or participant is unable to do so. When an 49.7 applicant or participant and the county agency are unable to 49.8 obtain documents needed to verify information, the county agency 49.9 may accept an affidavit from an applicant or participant as 49.10 sufficient documentation. 49.11 Subd. 3. [CONTACTING THIRD PARTIES.] A county agency must 49.12 not request information about an applicant or participant that 49.13 is not of public record from a source other than county 49.14 agencies, the department, or the United States Department of 49.15 Health and Human Services without the person's prior written 49.16 consent. An applicant's signature on an application form 49.17 constitutes consent for contact with the sources specified on 49.18 the application. A county agency may use a single consent form 49.19 to contact a group of similar sources, such as banks or 49.20 insurance agencies, but the sources to be contacted must be 49.21 identified by the county agency prior to requesting an 49.22 applicant's consent. 49.23 Subd. 4. [FACTORS TO BE VERIFIED.] The county agency shall 49.24 verify the following at application: 49.25 (1) identity of adults; 49.26 (2) presence of the minor child in the home, if 49.27 questionable; 49.28 (3) relationship of a minor child to caregivers in the 49.29 assistance unit; 49.30 (4) age, if necessary to determine MFIP-S eligibility; 49.31 (5) immigration status; 49.32 (6) social security number; 49.33 (7) income; 49.34 (8) self-employment expenses used as a deduction; 49.35 (9) source and purpose of deposits and withdrawals from 49.36 business accounts; 50.1 (10) spousal support and child support payments made to 50.2 persons outside the household; 50.3 (11) real property; 50.4 (12) vehicles; 50.5 (13) checking and savings accounts; 50.6 (14) savings certificates, savings bonds, stocks, and 50.7 individual retirement accounts; 50.8 (15) pregnancy if related to eligibility; 50.9 (16) inconsistent information, if related to eligibility; 50.10 (17) medical insurance; 50.11 (18) anticipated graduation date of an 18-year-old; 50.12 (19) burial accounts; 50.13 (20) school attendance, if related to eligibility; and 50.14 (21) residence. 50.15 Subd. 5. [VERIFICATION OF IMMIGRATION STATUS.] An 50.16 applicant's written authorization is required before the county 50.17 agency contacts the Immigration and Naturalization Service to 50.18 verify immigration status under subdivision 4, clause (5). 50.19 However, refusal to provide such authorization is grounds for a 50.20 finding of ineligibility if the applicant fails to produce proof 50.21 of eligible immigration status. 50.22 Subd. 5a. [INCONSISTENT INFORMATION.] When the county 50.23 agency verifies inconsistent information under subdivision 4, 50.24 clause (16), or under subdivision 6, clause (4), the reason for 50.25 verifying the information must be documented in the financial 50.26 case record. 50.27 Subd. 6. [RECERTIFICATION.] The county agency shall 50.28 recertify eligibility in an annual face-to-face interview with 50.29 the participant and verify the following: 50.30 (1) presence of the minor child in the home, if 50.31 questionable; 50.32 (2) income, including self-employment expenses used as a 50.33 deduction or deposits or withdrawals from business accounts; 50.34 (3) assets when the value is within $200 of the asset 50.35 limit; and 50.36 (4) inconsistent information, if related to eligibility. 51.1 Sec. 21. [256J.33] [PROSPECTIVE AND RETROSPECTIVE 51.2 DETERMINATION OF MFIP-S ELIGIBILITY.] 51.3 Subdivision 1. [DETERMINATION OF ELIGIBILITY.] A county 51.4 agency must determine MFIP-S eligibility prospectively for a 51.5 payment month based on retrospectively assessing income and the 51.6 county agency's best estimate of the circumstances that will 51.7 exist in the payment month. 51.8 Except as described in section 256J.34, subdivision 1, when 51.9 prospective eligibility exists, a county agency must calculate 51.10 the amount of the assistance payment using retrospective 51.11 budgeting. To determine MFIP-S eligibility and the assistance 51.12 payment amount, a county agency must apply countable income, 51.13 described in section 256J.37, subdivisions 3 to 10, received by 51.14 members of an assistance unit or by other persons whose income 51.15 is counted for the assistance unit, described under sections 51.16 256J.21 and 256J.37, subdivisions 1 and 2 . 51.17 This income must be applied to the transitional standard or 51.18 family wage standard subject to this section and sections 51.19 256J.34 to 256J.36. Income received in a calendar month and not 51.20 otherwise excluded under section 256J.21, subdivision 2, must be 51.21 applied to the needs of an assistance unit. 51.22 Subd. 2. [PROSPECTIVE ELIGIBILITY.] A county agency must 51.23 determine whether the eligibility requirements that pertain to 51.24 an assistance unit, including those in sections 256J.11 to 51.25 256J.15 and 256J.20, will be met prospectively for the payment 51.26 month. Except for the provisions in section 256J.34, 51.27 subdivision 1, the income test will be applied retrospectively. 51.28 Subd. 3. [RETROSPECTIVE ELIGIBILITY.] After the first two 51.29 months of MFIP-S eligibility, a county agency must continue to 51.30 determine whether an assistance unit is prospectively eligible 51.31 for the payment month by looking at all factors other than 51.32 income and then determine whether the assistance unit is 51.33 retrospectively income eligible by applying the monthly income 51.34 test to the income from the budget month. When the monthly 51.35 income test is not satisfied, the assistance payment must be 51.36 suspended when ineligibility exists for one month or ended when 52.1 ineligibility exists for more than one month. 52.2 Subd. 4. [MONTHLY INCOME TEST.] A county agency must apply 52.3 the monthly income test retrospectively for each month of MFIP-S 52.4 eligibility. An assistance unit is not eligible when the 52.5 countable income equals or exceeds the transitional standard or 52.6 the family wage level for the assistance unit. The income 52.7 applied against the monthly income test must include: 52.8 (1) gross earned income from employment, prior to mandatory 52.9 payroll deductions, voluntary payroll deductions, wage 52.10 authorizations, and after the disregards in section 256J.21, 52.11 subdivision 3, and the allocations in section 256J.36, unless 52.12 the employment income is specifically excluded under section 52.13 256J.21, subdivision 2; 52.14 (2) gross earned income from self-employment less 52.15 deductions for self-employment expenses in section 256J.37, 52.16 subdivision 5, but prior to any reductions for personal or 52.17 business state and federal income taxes, personal FICA, personal 52.18 health and life insurance, and after the disregards in section 52.19 256J.21, subdivision 3, and the allocations in section 256J.36; 52.20 (3) unearned income after deductions for allowable expenses 52.21 in section 256J.37, subdivision 9, and allocations in section 52.22 256J.36, unless the income has been specifically excluded in 52.23 section 256J.21, subdivision 2; 52.24 (4) gross earned income from employment as determined under 52.25 clause (1) which is received by a member of an assistance unit 52.26 who is a minor child or minor caregiver and less than a 52.27 half-time student; 52.28 (5) child support and spousal support received or 52.29 anticipated to be received by an assistance unit; 52.30 (6) the income of a parent when that parent is not included 52.31 in the assistance unit; 52.32 (7) the income of an eligible relative and spouse who seek 52.33 to be included in the assistance unit; and 52.34 (8) the unearned income of a minor child included in the 52.35 assistance unit. 52.36 Subd. 5. [WHEN TO TERMINATE ASSISTANCE.] When an 53.1 assistance unit is ineligible for MFIP-S assistance for two 53.2 consecutive months, the county agency must terminate MFIP-S 53.3 assistance. 53.4 Sec. 22. [256J.34] [CALCULATING PAYMENTS; SIGNIFICANT 53.5 CHANGE; INCOME AVERAGING.] 53.6 Subdivision 1. [PROSPECTIVE BUDGETING.] A county agency 53.7 must use prospective budgeting to calculate the assistance 53.8 payment amount for the first two months for an applicant who has 53.9 not received assistance in this state for at least one payment 53.10 month preceding the first month of payment under a current 53.11 application. Prospective budgeting is not subject to 53.12 overpayments or underpayments unless fraud is determined under 53.13 section 256.98. 53.14 (a) The county agency must apply the income received or 53.15 anticipated in the first month of MFIP-S eligibility against the 53.16 need of the first month. The county agency must apply the 53.17 income received or anticipated in the second month against the 53.18 need of the second month. 53.19 (b) When the assistance payment for any part of the first 53.20 two months is based on anticipated income, the county agency 53.21 must base the initial assistance payment amount on the 53.22 information available at the time the initial assistance payment 53.23 is made. 53.24 (c) The county agency must determine the assistance payment 53.25 amount for the first two months of MFIP-S eligibility by 53.26 budgeting both recurring and nonrecurring income for those two 53.27 months. 53.28 (d) The county agency must budget the child support income 53.29 received or anticipated to be received by an assistance unit to 53.30 determine the assistance payment amount from the month of 53.31 application through the date in which MFIP-S eligibility is 53.32 determined and assistance is authorized. Child support income 53.33 which has been budgeted to determine the assistance payment in 53.34 the initial two months is considered nonrecurring income. An 53.35 assistance unit must forward any payment of child support to the 53.36 child support enforcement unit of the county agency following 54.1 the date in which assistance is authorized. 54.2 Subd. 2. [RETROSPECTIVE BUDGETING.] The county agency must 54.3 use retrospective budgeting to calculate the monthly assistance 54.4 payment amount after the payment for the first two months has 54.5 been made under subdivision 1. 54.6 Subd. 3. [ADDITIONAL USES OF RETROSPECTIVE 54.7 BUDGETING.] Notwithstanding subdivision 1, the county agency 54.8 must use retrospective budgeting to calculate the monthly 54.9 assistance payment amount for the first two months under 54.10 paragraphs (a) and (b). 54.11 (a) The county agency must use retrospective budgeting to 54.12 determine the amount of the assistance payment in the first two 54.13 months of MFIP-S eligibility: 54.14 (1) when an assistance unit applies for assistance for the 54.15 same month for which assistance has been interrupted, the 54.16 interruption in eligibility is less than one payment month, the 54.17 assistance payment for the preceding month was issued in this 54.18 state, and the assistance payment for the immediately preceding 54.19 month was determined retrospectively; or 54.20 (2) when a person applies in order to be added to an 54.21 assistance unit, that assistance unit has received assistance in 54.22 this state for at least the two preceding months, and that 54.23 person has been living with and has been financially responsible 54.24 for one or more members of that assistance unit for at least the 54.25 two preceding months. 54.26 (b) Except as provided in clauses (1) to (4), the county 54.27 agency must use retrospective budgeting and apply income 54.28 received in the budget month by an assistance unit and by a 54.29 financially responsible household member who is not included in 54.30 the assistance unit against the appropriate transitional or 54.31 family wage level standard to determine the assistance payment 54.32 to be issued for the payment month. 54.33 (1) When a source of income ends prior to the third payment 54.34 month, that income is not considered in calculating the 54.35 assistance payment for that month. When a source of income ends 54.36 prior to the fourth payment month, that income is not considered 55.1 when determining the assistance payment for that month. 55.2 (2) When a member of an assistance unit or a financially 55.3 responsible household member leaves the household of the 55.4 assistance unit, the income of that departed household member is 55.5 not budgeted retrospectively for any full payment month in which 55.6 that household member does not live with that household and is 55.7 not included in the assistance unit. 55.8 (3) When an individual is removed from an assistance unit 55.9 because the individual is no longer a minor child, the income of 55.10 that individual is not budgeted retrospectively for payment 55.11 months in which that individual is not a member of the 55.12 assistance unit, except that income of an ineligible child in 55.13 the household must continue to be budgeted retrospectively 55.14 against the child's needs when the parent or parents of that 55.15 child request allocation of their income against any unmet needs 55.16 of that ineligible child. 55.17 (4) When a person ceases to have financial responsibility 55.18 for one or more members of an assistance unit, the income of 55.19 that person is not budgeted retrospectively for the payment 55.20 months which follow the month in which financial responsibility 55.21 ends. 55.22 Subd. 4. [SIGNIFICANT CHANGE IN GROSS INCOME.] The county 55.23 agency must recalculate the assistance payment when an 55.24 assistance unit experiences a significant change, as defined in 55.25 section 256J.08, resulting in a reduction in the gross income 55.26 received in the payment month from the gross income received in 55.27 the budget month. The county agency must issue a supplemental 55.28 assistance payment based on the county agency's best estimate of 55.29 the assistance unit's income and circumstances for the payment 55.30 month. Budget adjustments that result from significant changes 55.31 are limited to two in a 12-month period regardless of the reason 55.32 for the change. Budget adjustments due to a significant change 55.33 in the amount of direct support received must not be made after 55.34 the date the assistance unit is required to forward support to 55.35 the child support enforcement unit under subdivision 1, 55.36 paragraph (d). 56.1 Subd. 5. [INCOME AVERAGING FOR PARTICIPANTS PAID WEEKLY OR 56.2 BIWEEKLY.] For the purposes of stabilizing assistance payments, 56.3 the county agency may average income for participants paid 56.4 weekly or biweekly. Monthly income may be computed by adding 56.5 income from all paychecks, dividing the sum by the number of 56.6 paychecks, and multiplying the results by 4.3 if paychecks are 56.7 weekly or 2.16 if paychecks are biweekly. The county agency may 56.8 not use income averaging unless discussed with the participant 56.9 and requested by the participant. 56.10 Sec. 23. [256J.35] [AMOUNT OF ASSISTANCE PAYMENT.] 56.11 Except as provided in paragraphs (a) to (c), the amount of 56.12 an assistance payment is equal to the difference between the 56.13 transitional standard or the family wage level in section 56.14 256J.24 and countable income. 56.15 (a) When MFIP-S eligibility exists for the month of 56.16 application, the amount of the assistance payment for the month 56.17 of application must be prorated from the date of application or 56.18 the date all other eligibility factors are met for that 56.19 applicant, whichever is later. This provision applies when an 56.20 applicant loses at least one day of MFIP-S eligibility. 56.21 (b) MFIP-S overpayments to an assistance unit must be 56.22 recouped according to section 256J.38, subdivision 4. 56.23 (c) An initial assistance payment must not be made to an 56.24 applicant who is not eligible on the date payment is made. 56.25 Sec. 24. [256J.36] [ALLOCATION FOR UNMET NEED OF OTHER 56.26 HOUSEHOLD MEMBERS.] 56.27 Except as prohibited in paragraphs (a) and (b), an 56.28 allocation of income is allowed to meet the unmet need of an 56.29 ineligible spouse or an ineligible child under the age of 21 for 56.30 whom the caregiver is financially responsible who also lives 56.31 with the caregiver. An allocation is allowed from the 56.32 caregiver's income to meet the need of an ineligible or excluded 56.33 person. That allocation is allowed in an amount up to the 56.34 difference between the MFIP-S family allowance for the 56.35 assistance unit when that excluded or ineligible person is 56.36 included in the assistance unit and the MFIP-S family allowance 57.1 for the assistance unit when the excluded or ineligible person 57.2 is not included in the assistance unit. These allocations must 57.3 be deducted from the caregiver's counted earnings and from 57.4 unearned income subject to paragraphs (a) and (b). 57.5 (a) Income of a minor child in the assistance unit must not 57.6 be allocated to meet the need of a person who is not a member of 57.7 the assistance unit, including the child's parent, even when 57.8 that parent is the payee of the child's income. 57.9 (b) Income of an assistance unit must not be allocated to 57.10 meet the needs of a person ineligible for failure to cooperate 57.11 with program requirements including child support requirements, 57.12 a person ineligible due to fraud, or a relative caregiver and 57.13 his or her spouse who opt out of the assistance unit. 57.14 Sec. 25. [256J.37] [TREATMENT OF INCOME AND LUMP SUMS.] 57.15 Subdivision 1. [DEEMED INCOME FROM INELIGIBLE HOUSEHOLD 57.16 MEMBERS.] The income of ineligible household members must be 57.17 deemed after allowing the following disregards: 57.18 (1) the first 18 percent of the excluded family member's 57.19 gross earned income; 57.20 (2) amounts the ineligible person actually paid to 57.21 individuals not living in the same household but whom the 57.22 ineligible person claims as dependents for determining federal 57.23 personal income tax liability; 57.24 (3) child or spousal support paid to a person who lives 57.25 outside of the household; and 57.26 (4) an amount for the needs of other persons who live in 57.27 the household but are not included in the assistance unit and 57.28 are or could be claimed by an ineligible person as dependents 57.29 for determining federal personal income tax liability. This 57.30 amount is equal to the difference between the MFIP-S need 57.31 standard when the excluded person is included in the assistance 57.32 unit and the MFIP-S need standard when the excluded person is 57.33 not included in the assistance unit. 57.34 Subd. 2. [DEEMED INCOME OF SPONSOR OF NONCITIZENS.] (a) 57.35 All income of a sponsor, or sponsor's spouse, who executed an 57.36 affidavit of support for a noncitizen must be deemed to be 58.1 unearned income of the noncitizen as specified in the Personal 58.2 Responsibility and Work Opportunity Reconciliation Act of 1996 58.3 and subsequently set out in federal rules. 58.4 (b) The income of a sponsor who executed an affidavit of 58.5 support for a noncitizen prior to the promulgation of the 58.6 affidavit of support under the Personal Responsibility and Work 58.7 Opportunity Reconciliation Act of 1996, must be deemed to be 58.8 unearned income of the noncitizen after allowing the following 58.9 exclusions: 58.10 (1) 20 percent of the combined gross earned income of the 58.11 sponsor and the sponsor's spouse up to a maximum of $175 per 58.12 month; 58.13 (2) an amount for the needs of the sponsor, the sponsor's 58.14 spouse, and other individuals, living in the sponsor's home, who 58.15 could be claimed by the sponsor or the sponsor's spouse as 58.16 dependents for determining federal personal income tax 58.17 liability, which is equal to the MFIP-S need standard for a 58.18 comparable family unit; 58.19 (3) amounts the sponsor and the sponsor's spouse actually 58.20 paid to individuals not living in the same household but whom 58.21 the sponsor or the sponsor's spouse claim as dependents for 58.22 determining federal personal income tax liability; and 58.23 (4) child or spousal support paid to a person who lives 58.24 outside of the sponsor's household. 58.25 Subd. 3. [EARNED INCOME OF WAGE, SALARY, AND CONTRACTUAL 58.26 EMPLOYEES.] The county agency must include gross earned income 58.27 less any disregards in the initial and monthly income test. 58.28 Gross earned income received by persons employed on a 58.29 contractual basis must be prorated over the period covered by 58.30 the contract even when payments are received over a lesser 58.31 period of time. 58.32 Subd. 4. [SELF-EMPLOYMENT.] Self-employed individuals are 58.33 those who are responsible for their own work schedule and do not 58.34 have coverage under an employer's liability insurance or 58.35 workers' compensation. Self-employed individuals generally work 58.36 for themselves rather than an employer. However, individuals 59.1 employed in some types of services may be self-employed even if 59.2 they have an employer or work out of another's business 59.3 location. For example, real estate sales people, individuals 59.4 who work for commission sales, manufacturer's representatives, 59.5 and independent contractors may be self-employed. Self-employed 59.6 individuals may or may not have FICA deducted from the check 59.7 issued to them by an employer or another party. 59.8 Self-employed individuals may own a business singularly or 59.9 in partnership. Individuals operating more than one 59.10 self-employment business may use the loss from one business to 59.11 offset self-employment income from another business. A loss 59.12 from a self-employment business may not offset income earned 59.13 under subdivision 3. 59.14 Subd. 5. [SELF-EMPLOYMENT EARNINGS.] The county agency 59.15 must determine self-employment income according to the following: 59.16 (a) Subtract allowable business expenses from total gross 59.17 receipts. Allowable business expenses include: 59.18 (1) interest on mortgages and loans; 59.19 (2) employee wages, except for persons who are part of the 59.20 assistance unit or whose income is deemed to the participant; 59.21 (3) FICA funds paid on employees' wages, payment of 59.22 employee workers' compensation, and reemployment insurance; 59.23 (4) livestock and veterinary or breeding fees; 59.24 (5) raw material; 59.25 (6) seed and fertilizer; 59.26 (7) maintenance and repairs that are not capital 59.27 expenditures; 59.28 (8) tax return preparation fees; 59.29 (9) license fees, professional fees, franchise fees, and 59.30 professional dues; 59.31 (10) tools and supplies that are not capital expenditures; 59.32 (11) fuel and transportation expenses other than fuel costs 59.33 covered by the flat rate transportation deduction; 59.34 (12) advertising costs; 59.35 (13) meals eaten when required to be away from the local 59.36 work site; 60.1 (14) property expenses such as rent, insurance, taxes, and 60.2 utilities; 60.3 (15) postage; 60.4 (16) purchase cost of inventory at time of sale; 60.5 (17) loss from another self-employment business; 60.6 (18) attorney fees allowed by the Internal Revenue Service; 60.7 and 60.8 (19) tuition for classes necessary to maintain or improve 60.9 job skills or required by law to maintain job status or salary 60.10 as allowed by the Internal Revenue Service. 60.11 (b) The county agency shall not allow a deduction for the 60.12 following expenses: 60.13 (1) purchases of capital assets; 60.14 (2) payments on the principals of loans for capital assets; 60.15 (3) depreciation; 60.16 (4) amortization; 60.17 (5) the wholesale costs of items purchased, processed, or 60.18 manufactured which are unsold inventory; 60.19 (6) transportation costs that exceed the maximum standard 60.20 mileage rate allowed for use of a personal car in the Internal 60.21 Revenue Code; 60.22 (7) costs, in any amount, for mileage between an 60.23 applicant's or participant's home and place of employment; 60.24 (8) salaries and other employment deductions made for 60.25 members of an assistance unit or persons who live in the 60.26 household for whom an employer is legally responsible; 60.27 (9) monthly expenses in excess of $71 for each roomer; 60.28 (10) monthly expenses in excess of the Thrifty Food Plan 60.29 amount for one person for each boarder. For purposes of this 60.30 clause and clause (11), "Thrifty Food Plan" has the meaning 60.31 given it in Code of Federal Regulations; 60.32 (11) monthly expenses in excess of the roomer rate plus the 60.33 Thrifty Food Plan amount for one person for each 60.34 roomer-boarder. If there is more than one boarder or 60.35 roomer-boarder, use the total number of boarders as the unit 60.36 size to determine the Thrifty Food Plan amount; 61.1 (12) an amount greater than actual expenses or two percent 61.2 of the estimated market value on a county tax assessment form, 61.3 whichever is greater, as a deduction for upkeep and repair 61.4 against rental income; 61.5 (13) expenses not allowed by the Internal Revenue Code; 61.6 (14) expenses in excess of 60 percent of gross receipts for 61.7 in-home child care unless a higher amount can be documented; and 61.8 (15) expenses that are reimbursed under the child and adult 61.9 care food program as authorized under the National School Lunch 61.10 Act, United States Code, title 42. 61.11 Subd. 6. [SELF-EMPLOYMENT BUDGET PERIOD.] The 61.12 self-employment budget period begins in the month of application 61.13 or in the first month of self-employment. Gross receipts must 61.14 be budgeted in the month received. Expenses must be budgeted 61.15 against gross receipts in the month the expenses are paid, 61.16 except for paragraphs (a) to (c). 61.17 (a) The purchase cost of inventory items, including 61.18 materials which are processed or manufactured, must be deducted 61.19 as an expense at the time payment is received for the sale of 61.20 the inventory items. 61.21 (b) A 12-month rolling average based on clauses (1) to (3) 61.22 must be used to budget monthly income. 61.23 (1) For a business in operation for at least 12 months, the 61.24 county agency shall use the average monthly self-employment 61.25 income from the most current income tax report for the 12 months 61.26 before the month of application. The county agency shall 61.27 determine a new monthly average by adding in the actual 61.28 self-employment income and expenses from the previous month and 61.29 dropping the first month from the averaging period. 61.30 (2) For a business in operation for less than 12 months, 61.31 the county agency shall compute the average for the number of 61.32 months the business has been in operation to determine a monthly 61.33 average. When data are available for 12 or more months, average 61.34 monthly self-employment income is determined under clause (1). 61.35 (3) If the business undergoes a major change, the county 61.36 agency shall compute a new rolling average beginning with the 62.1 first month of the major change. For the purpose of this 62.2 clause, major change means a change that affects the nature and 62.3 scale of the business and is not merely the result of normal 62.4 business fluctuations. 62.5 (c) For seasonal self-employment, the caregiver may choose 62.6 whether to use actual income in the month of receipt and 62.7 expenses in the month incurred or the rolling average method of 62.8 computation. The choice must be made once per year at the time 62.9 of application or recertification. For the purpose of this 62.10 paragraph, seasonal means working six or less months per year. 62.11 Subd. 7. [FARM INCOME.] Farm income is the difference 62.12 between gross receipts and operating expenses. The county 62.13 agency must not allow a deduction for expenses listed in 62.14 subdivision 5, paragraph (b). Gross receipts include sales, 62.15 rents, subsidies, soil conservation payments, production derived 62.16 from livestock, and income from home-produced food. 62.17 Subd. 8. [RENTAL INCOME.] The county agency must treat 62.18 income from rental property as earned or unearned income. 62.19 Income from rental property is unearned income unless the 62.20 assistance unit spends an average of ten hours per week on 62.21 maintenance or management of the property. When the owner 62.22 spends more than ten hours per week on maintenance or repairs, 62.23 the earnings are considered self-employment earnings. An amount 62.24 must be deducted for upkeep and repairs, as specified in 62.25 subdivision 5, paragraph (b), clause (12), real estate taxes, 62.26 insurance, utilities, and interest on principal payments. When 62.27 the applicant or participant lives on the rental property, 62.28 expenses for upkeep, taxes, insurance, utilities, and interest 62.29 must be divided by the number of rooms to determine expense per 62.30 room and expenses deducted must be deducted only for the number 62.31 of rooms rented. 62.32 Subd. 9. [UNEARNED INCOME.] (a) The county agency must 62.33 apply unearned income, including housing subsidies as in 62.34 paragraph (b), to the transitional standard. When determining 62.35 the amount of unearned income, the county agency must deduct the 62.36 costs necessary to secure payments of unearned income. These 63.1 costs include legal fees, medical fees, and mandatory deductions 63.2 such as federal and state income taxes. 63.3 (b) Effective July 1, 1998, the county agency shall count 63.4 $100 of the value of public and assisted housing subsidies 63.5 provided by the Department of Housing and Urban Development 63.6 (HUD), or by state or local housing authorities, as unearned 63.7 income. The full amount of the subsidy must be counted as 63.8 unearned income when the subsidy is less than $100. 63.9 Subd. 10. [TREATMENT OF LUMP SUMS.] The county agency must 63.10 treat lump-sum payments as earned or unearned income. If the 63.11 lump-sum payment is included in the category of income 63.12 identified in subdivision 9, it must be treated as unearned 63.13 income. A lump sum is counted as income in the month received 63.14 and budgeted either prospectively or retrospectively depending 63.15 on the budget cycle at the time of receipt. When an individual 63.16 receives a lump-sum payment, that lump sum must be combined with 63.17 all other earned and unearned income received in the same budget 63.18 month, and it must be applied according to paragraphs (a) to (c). 63.19 There is no carryover into subsequent months. Any funds that 63.20 remain in the third month after the month of receipt are counted 63.21 in the asset limit. 63.22 (a) For a lump sum received by an applicant during the 63.23 first two months, prospective budgeting is used to determine the 63.24 payment and the lump sum must be combined with other earned or 63.25 unearned income received and budgeted in that prospective month. 63.26 (b) For a lump sum received by a participant after the 63.27 first two months of MFIP-S eligibility, the lump sum must be 63.28 combined with other income received in that budget month, and 63.29 the combined amount must be applied retrospectively against the 63.30 applicable payment month. 63.31 (c) When a lump sum, combined with other income under 63.32 paragraphs (a) and (b), is less than the transitional standard 63.33 for the applicable payment month, the assistance payment is 63.34 reduced according to the amount of the countable income. When 63.35 the countable income is greater than the transitional standard 63.36 or the family wage standard, the assistance payment is suspended 64.1 for the payment month. 64.2 Sec. 26. [256J.38] [CORRECTION OF OVERPAYMENTS AND 64.3 UNDERPAYMENTS.] 64.4 Subdivision 1. [SCOPE OF OVERPAYMENT.] When a participant 64.5 or former participant receives an overpayment due to agency, 64.6 client, or ATM error, or due to assistance received while an 64.7 appeal is pending and the participant or former participant is 64.8 determined ineligible for assistance or for less assistance than 64.9 was received, the county agency must recoup or recover the 64.10 overpayment under the conditions of this section. 64.11 Subd. 2. [NOTICE OF OVERPAYMENT.] When a county agency 64.12 discovers that a participant or former participant has received 64.13 an overpayment for one or more months, the county agency must 64.14 notify the participant or former participant of the overpayment 64.15 in writing. A notice of overpayment must specify the reason for 64.16 the overpayment, the authority for citing the overpayment, the 64.17 time period in which the overpayment occurred, the amount of the 64.18 overpayment, and the participant's or former participant's right 64.19 to appeal. No limit applies to the period in which the county 64.20 agency is required to recoup or recover an overpayment according 64.21 to subdivisions 3 and 4. 64.22 Subd. 3. [RECOVERING OVERPAYMENTS FROM FORMER 64.23 PARTICIPANTS.] A county agency must initiate efforts to recover 64.24 overpayments paid to a former participant. Adults and minor 64.25 caregivers of an assistance unit at the time an overpayment 64.26 occurs, whether receiving assistance or not, are jointly and 64.27 individually liable for repayment of the overpayment. The 64.28 county agency must request repayment from the former 64.29 participants. When an agreement for repayment is not completed 64.30 within six months of the date of discovery or when there is a 64.31 default on an agreement for repayment after six months, the 64.32 county agency must initiate recovery consistent with chapter 64.33 270A, or section 541.05. When a person has been convicted of 64.34 fraud under section 256.98, recovery must be sought regardless 64.35 of the amount of overpayment. When an overpayment is less than 64.36 $35, and is not the result of a fraud conviction under section 65.1 256.98, the county agency must not seek recovery under this 65.2 subdivision. The county agency must retain information about 65.3 all overpayments regardless of the amount. When an adult or 65.4 minor caregiver reapplies for assistance, the overpayment must 65.5 be recouped under subdivision 4. 65.6 Subd. 4. [RECOUPING OVERPAYMENTS FROM PARTICIPANTS.] A 65.7 participant may voluntarily repay, in part or in full, an 65.8 overpayment even if assistance is reduced under this 65.9 subdivision, until the total amount of the overpayment is 65.10 repaid. When an overpayment occurs due to fraud, the county 65.11 agency must recover ten percent of the transitional standard or 65.12 the amount of the monthly assistance payment, whichever is 65.13 less. When a nonfraud overpayment occurs, the county agency 65.14 must recover ten percent of the transitional standard or the 65.15 amount of the monthly assistance payment, whichever is less. 65.16 Subd. 5. [RECOVERING AUTOMATIC TELLER MACHINE ERRORS.] For 65.17 recipients receiving benefits via electronic benefit transfer, 65.18 if the overpayment is a result of an ATM dispensing funds in 65.19 error to the recipient, the agency may recover the ATM error by 65.20 immediately withdrawing funds from the recipient's electronic 65.21 benefit transfer account, up to the amount of the error. 65.22 Subd. 6. [SCOPE OF UNDERPAYMENTS.] A county agency must 65.23 issue a corrective payment for underpayments made to a 65.24 participant or to a person who would be a participant if an 65.25 agency or client error causing the underpayment had not occurred. 65.26 The county agency must issue the corrective payment according to 65.27 subdivision 8. 65.28 Subd. 7. [IDENTIFYING THE UNDERPAYMENT.] An underpayment 65.29 may be identified by a county agency, by a participant, by a 65.30 former participant, or by a person who would be a participant 65.31 except for agency or client error. 65.32 Subd. 8. [ISSUING CORRECTIVE PAYMENTS.] A county agency 65.33 must correct an underpayment within seven calendar days after 65.34 the underpayment has been identified, by adding the corrective 65.35 payment amount to the monthly assistance payment of the 65.36 participant or by issuing a separate payment to a participant or 66.1 former participant, or by reducing an existing overpayment 66.2 balance. When an underpayment occurs in a payment month and is 66.3 not identified until the next payment month or later, the county 66.4 agency must first subtract the underpayment from any overpayment 66.5 balance before issuing the corrective payment. The county 66.6 agency must not apply an underpayment in a current payment month 66.7 against an overpayment balance. When an underpayment in the 66.8 current payment month is identified, the corrective payment must 66.9 be issued within seven calendar days after the underpayment is 66.10 identified. 66.11 Subd. 9. [APPEALS.] A participant may appeal an 66.12 underpayment, an overpayment, and a reduction in an assistance 66.13 payment made to recoup the overpayment under subdivision 4. The 66.14 participant's appeal of each issue must be timely under section 66.15 256.045. When an appeal based on the notice issued under 66.16 subdivision 2 is not timely, the fact or the amount of that 66.17 overpayment must not be considered as a part of a later appeal, 66.18 including an appeal of a reduction in an assistance payment to 66.19 recoup that overpayment. 66.20 Sec. 27. [256J.39] [PAYMENT PROVISIONS; VENDOR PAYMENTS.] 66.21 Subdivision 1. [PAYMENT POLICY.] The following policies 66.22 apply to monthly assistance payments and corrective payments: 66.23 (a) Grant payments may be issued in the form of warrants 66.24 immediately redeemable in cash, electronic benefits transfer, or 66.25 by direct deposit into the recipient's account in a financial 66.26 institution. 66.27 (b) The commissioner shall mail assistance payment checks 66.28 to the address where a caregiver lives unless the county agency 66.29 approves an alternate arrangement. 66.30 (c) The commissioner shall mail monthly assistance payment 66.31 checks within time to allow postal service delivery to occur no 66.32 later than the first day of each month. Monthly assistance 66.33 payment checks must be dated the first day of the month. 66.34 (d) The commissioner shall issue replacement checks 66.35 promptly, but no later than seven calendar days after the 66.36 provisions of sections 16A.46; 256.01, subdivision 11; and 67.1 471.415 have been met. 67.2 (e) When a payment is made by means other than by check, 67.3 the time limits in paragraphs (c) and (d) apply. 67.4 (f) When the commissioner issues payments in the form of 67.5 food coupons, the payments will be issued on a staggered basis 67.6 through the first ten mailing days of the month. Sundays and 67.7 federal holidays are not mailing days. 67.8 Subd. 2. [PROTECTIVE AND VENDOR PAYMENTS.] Alternatives to 67.9 paying assistance directly to a participant may be used when a: 67.10 (1) county agency determines that a vendor payment is the 67.11 most effective way to resolve an emergency situation pertaining 67.12 to basic needs; 67.13 (2) caregiver makes a written request to the county agency 67.14 asking that part or all of the assistance payment be issued by 67.15 protective or vendor payments for shelter and utility service 67.16 only. The caregiver may withdraw this request in writing at any 67.17 time; 67.18 (3) caregiver has exhibited a continuing pattern of 67.19 mismanaging funds as determined by the county agency; or 67.20 (4) the vendor payment is part of a sanction under section 67.21 256J.46, subdivision 2. 67.22 The director of a county agency must approve a proposal for 67.23 protective or vendor payment for money mismanagement. During 67.24 the time a protective or vendor payment is being made, the 67.25 county agency must provide services designed to alleviate the 67.26 causes of the mismanagement. 67.27 The continuing need for and method of payment must be 67.28 documented and reviewed every 12 months. The director of a 67.29 county agency must approve the continuation of protective or 67.30 vendor payments. 67.31 When it appears that the need for protective or vendor 67.32 payments will continue or is likely to continue beyond two years 67.33 because the county agency's efforts have not resulted in 67.34 sufficiently improved use of assistance on behalf of the minor 67.35 child, judicial appointment of a legal guardian or other legal 67.36 representative must be sought by the county agency. 68.1 Subd. 3. [CHOOSING PAYEES FOR PROTECTIVE OR VENDOR 68.2 PAYMENTS.] A county agency shall consult with a caregiver 68.3 regarding the selection of the form of payment, the selection of 68.4 a protective payee, and the distribution of the assistance 68.5 payment to meet the various costs incurred by the assistance 68.6 unit. When choosing a protective payee, the county agency shall 68.7 notify the caregiver of a consultation date. If the caregiver 68.8 fails to respond to the county agency's request for consultation 68.9 by the effective date on the notice, the county agency must 68.10 choose a protective payee for that payment month and subsequent 68.11 payment months until the caregiver responds to the agency's 68.12 request for consultation. The county agency must notify the 68.13 caregiver of the right to appeal the determination that a 68.14 protective or vendor payment should be made or continued and to 68.15 appeal the selection of the payee. If a county agency is not 68.16 able to find another protective payee, a county agency staff 68.17 member may serve as a protective payee. The following persons 68.18 may not serve as protective payees: a member of the county 68.19 board of commissioners; the county agency staff member 68.20 determining financial eligibility for the family; special 68.21 investigative or resource staff; the staff member handling 68.22 accounting or fiscal processes related to the participant; or a 68.23 landlord, grocer, or other vendor dealing directly with the 68.24 participant. 68.25 Subd. 4. [DISCONTINUING PROTECTIVE OR VENDOR PAYMENTS.] A 68.26 county agency shall discontinue protective or vendor payments in 68.27 two years or in the month following the county agency's failure 68.28 to grant six-month approval to a money management plan, 68.29 whichever occurs first. At least once every 12 months, a county 68.30 agency shall review the performance of a protective payee acting 68.31 under subdivision 2, clause (3), to determine whether a new 68.32 payee should be selected. When a participant complains about 68.33 the performance of a protective payee, a review shall occur 68.34 within 30 calendar days. 68.35 Subd. 5. [VENDOR PAYMENTS FOR DRUG OFFENSES.] (a) If an 68.36 applicant has been convicted of a drug offense, the assistance 69.1 must be issued through vendor payments as provided in paragraph 69.2 (c) until: 69.3 (1) the recipient has completed terms of the court-ordered 69.4 sentence; 69.5 (2) the recipient has successfully completed a drug 69.6 treatment program when appropriate; and 69.7 (3) the county agency has made a determination that the 69.8 recipient can successfully manage the recipient's funds. 69.9 This subdivision also applies to persons who receive food 69.10 stamps under section 115 of the Personal Responsibility and Work 69.11 Opportunity Reconciliation Act of 1996. 69.12 (b) For the purposes of this subdivision, "drug offense" 69.13 means a conviction that occurred after July 1, 1997, of sections 69.14 152.021 to 152.025, 152.0261, or 152.096. Drug offense also 69.15 means a conviction in another jurisdiction of the possession, 69.16 use, or distribution of a controlled substance, or conspiracy to 69.17 commit any of these offenses, if the conviction occurred after 69.18 July 1, 1997, and the conviction is a felony offense in that 69.19 jurisdiction. 69.20 (c) The county agency shall consult with the caregiver 69.21 regarding the identity of vendors for shelter and utility 69.22 payments under this subdivision. Any balance of the MFIP-S 69.23 grant remaining after issuing vendor payments for shelter and 69.24 utility needs shall be issued to the caregiver. If the 69.25 caregiver exhibits a pattern of mismanaging funds, the balance 69.26 of the MFIP-S grant may be issued under the policy prescribed in 69.27 subdivisions 2 to 4. 69.28 Sec. 28. [256J.395] [SUPPORT FROM PARENTS OF MINOR 69.29 CAREGIVERS LIVING APART.] 69.30 Subdivision 1. [GENERAL PROVISIONS.] A minor caregiver and 69.31 the minor's dependent child living outside of the home of the 69.32 adult parent must meet the criteria in section 256J.14, to be 69.33 eligible for assistance in the MFIP-S program. A parent who 69.34 lives outside the home of a minor child who is an unemancipated 69.35 minor caregiver of an assistance unit is financially responsible 69.36 for that minor caregiver unless the parent is a recipient of 70.1 public assistance, SSI, MSA, medical assistance, general 70.2 assistance, or general assistance medical care, and a court 70.3 order does not otherwise provide a support obligation. 70.4 Subd. 2. [AMOUNT OF SUPPORT PAYMENT.] The amount of 70.5 support to be paid by a parent, except a parent specified in 70.6 subdivision 4, must be determined according to paragraphs (a) to 70.7 (f). 70.8 (a) A minor caregiver must provide information required by 70.9 the county agency to identify the whereabouts of the minor 70.10 caregiver's absent parent or parents. 70.11 (b) A county agency must notify an absent parent of the 70.12 parent's legal responsibility to support a minor caregiver and 70.13 shall request that the absent parent provide the following: 70.14 (1) the amount of the parent's earned and unearned income 70.15 for the previous tax year; 70.16 (2) the amount of the parent's earned and unearned income 70.17 for the current month; 70.18 (3) the number and names of dependents who are claimed or 70.19 could be claimed by the parent on federal income tax forms; 70.20 (4) the amount of annual medical bills paid by the parent; 70.21 (5) the amount of annual housing costs paid by the parent; 70.22 (6) the costs for utilities and repairs to the home which 70.23 are paid by the parent; and 70.24 (7) the amount of annual educational costs for family 70.25 members paid by the parent. 70.26 (c) When a parent of a minor caregiver does not provide the 70.27 information requested under paragraph (b), the county agency 70.28 must refer the matter to the county attorney. Assistance to the 70.29 minor caregiver must not be denied, delayed, reduced, or ended 70.30 because of the lack of cooperation of the minor caregiver's 70.31 parent. 70.32 (d) When the information requested under paragraph (b) is 70.33 received by a county agency, the county agency must compare the 70.34 parent's income against the scale set forth below using the 70.35 conditions and procedures specified in paragraph (e). 70.36 Size of Family Federal Poverty Guideline 71.1 1 $ 9,288 71.2 2 12,432 71.3 3 15,576 71.4 4 18,720 71.5 5 21,864 71.6 For each additional family member add $3,144. 71.7 (e) The parent's income is the parent's gross earned income 71.8 plus unearned income, determined by the methods in section 71.9 256J.21. To determine family size, each person claimed or who 71.10 could be claimed by a parent as a dependent on federal income 71.11 tax forms, exclusive of the minor caregiver, must be included. 71.12 A deduction from income must be allowed for the amount that 71.13 medical, educational, and housing costs together exceed 30 71.14 percent of the parent's income. When the amount of income, 71.15 after the allowable deduction, exceeds the annual income level 71.16 in paragraph (d), a parent is liable to pay one-third of the 71.17 excess for the annual support of the minor caregiver. These 71.18 payments must be paid monthly to the minor caregiver or to the 71.19 county agency on behalf of the minor caregiver. 71.20 (f) A county agency must notify the parents of the minor 71.21 caregiver that they are liable for the amount of support 71.22 determined by the county agency as specified in paragraph (e). 71.23 When the support payment is received by the minor caregiver, it 71.24 must be treated as unearned income of the assistance unit. When 71.25 the support payment is not received, or a lesser amount is 71.26 received in any payment month, the county agency must refer the 71.27 matter to the county attorney. 71.28 Subd. 3. [REVIEWS.] A county agency must review financial 71.29 responsibility every 12 months until minor caregivers reach the 71.30 age of 18 or are otherwise emancipated. When a parent reports a 71.31 change in circumstances, the county agency must review the 71.32 required amount of payment within ten calendar days. 71.33 Subd. 4. [PARENTS UNDER COURT ORDER FOR SUPPORT.] A parent 71.34 who is required under an existing court order issued under some 71.35 other authority in state or federal law to pay child support for 71.36 a minor caregiver is subject to the conditions of that order in 72.1 lieu of the requirements and contribution levels in subdivision 72.2 2. 72.3 Sec. 29. [256J.40] [FAIR HEARINGS.] 72.4 Caregivers receiving a notice of intent to sanction or a 72.5 notice of adverse action that includes a sanction, reduction in 72.6 benefits, suspension of benefits, denial of benefits, or 72.7 termination of benefits may request a fair hearing. A request 72.8 for a fair hearing must be submitted in writing to the county 72.9 agency or to the commissioner and must be mailed within 30 days 72.10 after a participant or former participant receives written 72.11 notice of the agency's action or within 90 days when a 72.12 participant or former participant shows good cause for not 72.13 submitting the request within 30 days. A former participant who 72.14 receives a notice of adverse action due to an overpayment may 72.15 appeal the adverse action according to the requirements in this 72.16 section. Issues that may be appealed are: 72.17 (1) the amount of the assistance payment; 72.18 (2) a suspension, reduction, denial, or termination of 72.19 assistance; 72.20 (3) the basis for an overpayment, the calculated amount of 72.21 an overpayment, and the level of recoupment; 72.22 (4) the eligibility for an assistance payment; and 72.23 (5) the use of protective or vendor payments under section 72.24 256J.39, subdivision 2, clauses (1) to (3). 72.25 A county agency must not reduce, suspend, or terminate 72.26 payment when an aggrieved participant requests a fair hearing 72.27 prior to the effective date of the adverse action or within ten 72.28 days of the mailing of the notice of adverse action, whichever 72.29 is later, unless the participant requests in writing not to 72.30 receive continued assistance pending a hearing decision. 72.31 Assistance issued pending a fair hearing is subject to recovery 72.32 under section 256J.38 when as a result of the fair hearing 72.33 decision the participant is determined ineligible for assistance 72.34 or the amount of the assistance received. A county agency may 72.35 increase or reduce an assistance payment while an appeal is 72.36 pending when the circumstances of the participant change and are 73.1 not related to the issue on appeal. The commissioner's order is 73.2 binding on a county agency. No additional notice is required to 73.3 enforce the commissioner's order. 73.4 A county agency shall reimburse appellants for reasonable 73.5 and necessary expenses of attendance at the hearing, such as 73.6 child care and transportation costs and for the transportation 73.7 expenses of the appellant's witnesses and representatives to and 73.8 from the hearing. Reasonable and necessary expenses do not 73.9 include legal fees. Fair hearings must be conducted at a 73.10 reasonable time and date by an impartial referee employed by the 73.11 department. The hearing may be conducted by telephone or at a 73.12 site that is readily accessible to persons with disabilities. 73.13 The appellant may introduce new or additional evidence 73.14 relevant to the issues on appeal. Recommendations of the 73.15 appeals referee and decisions of the commissioner must be based 73.16 on evidence in the hearing record and are not limited to a 73.17 review of the county agency action. 73.18 Sec. 30. [256J.42] [60-MONTH TIME LIMIT.] 73.19 Subdivision 1. [TIME LIMIT.] (a) An assistance unit in 73.20 which any adult caregiver has received 60 months of cash 73.21 assistance funded in whole or in part by the TANF block grant is 73.22 ineligible to receive MFIP-S. Any cash assistance funded with 73.23 TANF dollars that was received by the unit on or after the date 73.24 MFIP-S was implemented, including any assistance received in 73.25 states of prior residence, counts toward the 60-month 73.26 limitation. The 60-month limit applies to a minor who is the 73.27 head of a household or who is married to the head of a 73.28 household. The 60-month time period does not need to be 73.29 consecutive months for this provision to apply. 73.30 (b) The time limit does not apply to individuals in the 73.31 MFIP control groups under sections 256.031 and 256.047 until 73.32 March 31, 1998. 73.33 Subd. 2. [ASSISTANCE FROM ANOTHER STATE.] An individual 73.34 whose needs have been otherwise provided for in another state, 73.35 in whole or in part by the TANF block grant during a month, is 73.36 ineligible to receive MFIP-S for the month. 74.1 Subd. 3. [ADULTS LIVING ON AN INDIAN RESERVATION.] In 74.2 determining the number of months for which an adult has received 74.3 assistance under MFIP-S, disregard any month during which the 74.4 adult lived on an Indian reservation if, during the month: 74.5 (1) at least 1,000 individuals were living on the 74.6 reservation; and 74.7 (2) at least 50 percent of the adults living on the 74.8 reservation were unemployed. 74.9 Subd. 4. [VICTIMS OF DOMESTIC VIOLENCE.] Any cash 74.10 assistance received by an assistance unit in a month when a 74.11 caregiver is complying with a safety plan under the MFIP-S 74.12 employment and training component does not count toward the 74.13 60-month limitation on assistance. 74.14 Subd. 5. [EXEMPTION FOR CERTAIN FAMILIES.] Any cash 74.15 assistance received by an assistance unit does not count toward 74.16 the 60-month limit on assistance if the assistance unit would 74.17 qualify for assistance under section 256D.05, except for the 74.18 presence of minor dependent children in the family. 74.19 Sec. 31. [256J.43] [INTERSTATE PAYMENT STANDARDS.] 74.20 (a) Effective July 1, 1997, the amount of assistance paid 74.21 to an eligible family in which all members have resided in this 74.22 state for less than 12 calendar months shall be the lesser of 74.23 either the payment standard that would have been received by the 74.24 family from the state of immediate prior residence, or the 74.25 amount calculated in accordance with MFIP-S. The lesser payment 74.26 must continue until the family meets the 12-month requirement. 74.27 Payment must be calculated by applying this state's budgeting 74.28 policies, and the unit's net income must be deducted from the 74.29 payment standard in the other state or in this state, whichever 74.30 is lower. Payments under this paragraph shall be vendor paid 74.31 for rent and utilities, with the remainder, if any, paid to the 74.32 unit. 74.33 (b) During the first 12 months a family resides in this 74.34 state, the number of months that a family is eligible to receive 74.35 MFIP-S benefits is limited to the number of months the family 74.36 would have been eligible to receive similar benefits in the 75.1 state of immediate prior residence. 75.2 (c) This policy applies whether or not the family received 75.3 similar benefits while residing in the state of previous 75.4 residence. 75.5 (d) When a family moves to this state from another state 75.6 where the family has exhausted that state's time limit for 75.7 receiving benefits under that state's TANF program, the family 75.8 will not be eligible to receive any MFIP-S benefits in this 75.9 state for 12 months from the date the family moves here. 75.10 (e) For the purposes of this section, "state of immediate 75.11 prior residence" means: 75.12 (1) the state in which the applicant declares the applicant 75.13 spent the most time in the 30 days prior to moving to this 75.14 state; or 75.15 (2) the applicant is in the migrant work stream and the 75.16 applicant maintains a home in another state. 75.17 (f) The commissioner shall verify and update all other 75.18 states' payment standards annually to be effective in July of 75.19 each year. 75.20 (g) Any individual to whom this section applies who was a 75.21 recipient of TANF benefits in the state of immediate previous 75.22 residence and was under sanction in that state for failure to 75.23 comply with work activities is required to comply with 75.24 employment and training activities as determined by the county 75.25 agency, as a condition of eligibility. 75.26 Sec. 32. [256J.44] [INITIAL SCREENING OF MFIP-S 75.27 APPLICANT.] 75.28 Subdivision 1. [SCREENING.] The county agency, or at 75.29 county option, the county's employment and training service 75.30 provider, must screen each applicant to determine immediate 75.31 needs and to determine if the applicant may be eligible for: 75.32 (1) another program that is not partially funded through 75.33 the federal temporary assistance to needy families block grant 75.34 under title I of Public Law 104-193. If the applicant may be 75.35 eligible for another program, a county caseworker must provide 75.36 the appropriate referral to the program; 76.1 (2) the diversionary assistance program under section 76.2 256J.47; 76.3 (3) the emergency assistance program under section 256J.48; 76.4 or 76.5 (4) expedited issuance of food stamp assistance under 76.6 section 256J.28, subdivision 1. 76.7 The applicant is required to attend the screening. If the 76.8 applicant is not diverted from applying for MFIP-S under clauses 76.9 (1) to (3), and if the applicant meets the MFIP-S eligibility 76.10 requirements, then an orientation under section 256J.51 and an 76.11 initial assessment under section 256J.52 must be completed or, 76.12 in the case of caregivers who are under the age of 20, a plan 76.13 under section 256J.54 must be completed. 76.14 Subd. 2. [SUPPORT SERVICES TO ATTEND SCREENING AND 76.15 ORIENTATION.] Upon a caregiver's request, the county agency must 76.16 arrange for transportation and child care or reimburse 76.17 caregivers for transportation and child care expenses necessary 76.18 to enable caregivers to attend the initial screening under this 76.19 section and orientation under section 256J.51 if scheduled on a 76.20 day other than when the caregiver makes application for 76.21 assistance. 76.22 Sec. 33. [256J.46] [SANCTIONS.] 76.23 Subdivision 1. [SANCTIONS FOR REFUSAL TO COOPERATE WITH 76.24 SUPPORT REQUIREMENTS.] The grant of an MFIP-S caregiver who 76.25 refuses to cooperate, as determined by the child support 76.26 enforcement agency, with support requirements under section 76.27 256J.30 must be reduced by 25 percent. The sanction must be in 76.28 effect for a minimum of one month, and shall be removed only 76.29 when the caregiver cooperates with the support requirements. A 76.30 sanction under this subdivision is not subject to the notice and 76.31 supervisory review requirements of section 256J.57, subdivision 76.32 2. 76.33 Subd. 2. [SANCTIONS FOR PARTICIPANTS NOT COMPLYING WITH 76.34 PROGRAM REQUIREMENTS.] (a) A participant who fails without good 76.35 cause to comply with the requirements of this chapter shall be 76.36 subject to a sanction consisting of reduced MFIP-S assistance as 77.1 provided in this subdivision. A sanction under this subdivision 77.2 becomes effective ten days after the required notice is given. 77.3 For purposes of this subdivision, each month that a participant 77.4 fails to comply with a requirement of this chapter shall be 77.5 considered a separate occurrence of noncompliance. A 77.6 participant who has had one or more sanctions imposed must 77.7 remain in compliance with the provisions of this chapter for 12 77.8 months in order for a subsequent sanction to be considered a 77.9 first occurrence. 77.10 (b) Sanctions for noncompliance shall be imposed as 77.11 follows, provided the participant is not subject to sanction 77.12 under subdivision 1: 77.13 (1) For the first occurrence of failure to comply, a 77.14 participant's rent and utilities shall be vendor paid up to the 77.15 amount of the MFIP-S grant for which the participant's 77.16 assistance unit is eligible. The residual amount of the grant 77.17 after vendor payment, if any, must be reduced by an amount equal 77.18 to ten percent of the applicable transitional standard before it 77.19 is paid to the participant. The sanction must be in effect for 77.20 a minimum of one month, and shall be removed only when the 77.21 participant is in compliance. 77.22 (2) For a second occurrence, the participant's rent and 77.23 utilities shall be vendor paid up to the amount of the MFIP-S 77.24 grant for which the participant's assistance unit is eligible. 77.25 The residual amount of the grant after vendor payment, if any, 77.26 must be reduced by an amount equal to 25 percent of the 77.27 applicable transitional standard before the residual is paid to 77.28 the participant. The sanction must be in effect for a minimum 77.29 of one month, and shall be removed only when the participant is 77.30 in compliance. 77.31 (3) For a third or subsequent occurrence, the participant's 77.32 rent and utilities shall be vendor paid up to the amount of the 77.33 MFIP-S grant for which the participant's assistance unit is 77.34 eligible. The residual amount of the grant after vendor 77.35 payment, if any, must be reduced by an amount equal to 35 77.36 percent of the applicable transitional standard before the 78.1 residual is paid to the participant. The sanction must be in 78.2 effect for a minimum of one month, and shall be removed only 78.3 when the participant is in compliance. 78.4 (c) Sanctions for noncompliance shall be imposed as 78.5 provided in this paragraph for participants who are subject to 78.6 sanction under subdivision 1. For the first and each subsequent 78.7 occurrence, the participant's grant must be reduced by 25 78.8 percent as provided in subdivision 1, and the assistance unit's 78.9 rent and utilities shall be vendor paid up to the amount of the 78.10 reduced grant. The residual amount of the grant after vendor 78.11 payment, if any, must be reduced by ten percent of the 78.12 applicable transitional standard before it is paid to the 78.13 participant. The sanction must be in effect for a minimum of 78.14 one month, and shall be removed only when the participant is in 78.15 compliance. 78.16 (d) If a participant is subject to sanction under paragraph 78.17 (c) and later becomes subject to sanction under paragraph (b), 78.18 each month of sanction under paragraph (c) shall count as a 78.19 separate occurrence of noncompliance for purposes of determining 78.20 the sanction under paragraph (b). 78.21 Subd. 3. [EXCEPTIONS DUE TO LACK OF DAY 78.22 CARE.] Notwithstanding subdivision 2, a county agency may not 78.23 reduce or terminate MFIP-S assistance based on a refusal of a 78.24 participant to comply with the work and training requirements of 78.25 MFIP-S if the participant is a single custodial parent caring 78.26 for a child who has not attained six years of age, and the 78.27 participant has a demonstrated inability, as determined by the 78.28 county agency, to obtain needed child care, for one or more of 78.29 the following reasons: 78.30 (1) unavailability of appropriate child care within a 78.31 reasonable distance from the participant's home or work site; 78.32 (2) unavailability or unsuitability of informal child care 78.33 by a relative or under other arrangements; or 78.34 (3) unavailability of appropriate and affordable formal 78.35 child care arrangements. 78.36 Sec. 34. [256J.47] [DIVERSIONARY ASSISTANCE PROGRAM.] 79.1 Subdivision 1. [ELIGIBILITY.] A family is eligible to 79.2 receive diversionary assistance once every 36 months if: 79.3 (1) a family member has resided in this state for at least 79.4 30 days; 79.5 (2) the caregiver provides verification that the caregiver 79.6 has either experienced an unexpected occurrence that makes it 79.7 impossible to retain or obtain employment or the caregiver has a 79.8 temporary loss of income, which is not due to refusing to accept 79.9 or terminating suitable employment as defined in section 79.10 256J.49, without good cause, resulting in an emergency; 79.11 (3) the caregiver is at risk of MFIP-S eligibility if 79.12 diversionary assistance is not provided and household income is 79.13 below 140 percent of the federal poverty guidelines; and 79.14 (4) the diversionary assistance will resolve the emergency 79.15 and divert the family from applying for MFIP-S. 79.16 For purposes of this section, diversionary assistance means 79.17 a one-time lump-sum payment to an individual or third-party 79.18 vendor to prevent long-term receipt of public assistance. 79.19 Subd. 2. [COUNTY AGENCY DUTIES.] County agencies shall: 79.20 (1) thoroughly explain to the caregiver the consequences of 79.21 receiving diversionary assistance, specifically the resulting 79.22 period of ineligibility under subdivision 4 for other assistance 79.23 programs; and 79.24 (2) determine eligibility for diversionary assistance 79.25 within five working days of the receipt of the verification that 79.26 substantiates eligibility or ineligibility. Verification means 79.27 client declaration and the best determination of the county 79.28 agency. 79.29 Subd. 3. [MAXIMUM AMOUNT OF ASSISTANCE.] The maximum 79.30 amount of diversionary assistance that may be provided to a 79.31 family is equal to the amount of the MFIP-S standard for the 79.32 same family size and composition for four months. The 79.33 assistance provided under this program must be based on the 79.34 immediate needs of the family. Counties must strive to provide 79.35 the most cost-effective solution to the one-time emergency. 79.36 Diversionary assistance is not cost effective if the family's 80.1 anticipated income added to the diversion payment will not be 80.2 sufficient to cover the family's immediate needs for the period 80.3 of ineligibility under subdivision 4, beginning with the month 80.4 of application, or another emergency can reasonably be 80.5 anticipated within the period of ineligibility. 80.6 Subd. 4. [INELIGIBILITY FOR MFIP-S; EMERGENCY ASSISTANCE; 80.7 AND EMERGENCY GENERAL ASSISTANCE.] Upon receipt of diversionary 80.8 assistance, the family is ineligible for MFIP-S, emergency 80.9 assistance, and emergency general assistance for a period of 80.10 time. To determine the period of ineligibility, the county 80.11 shall use the following formula: regardless of household 80.12 changes, the county agency must calculate the number of days of 80.13 ineligibility by dividing the diversionary assistance issued by 80.14 the maximum monthly amount a family of the same size and 80.15 composition would have received under MFIP-S, multiplied by 30, 80.16 truncating the result. The ineligibility period begins the date 80.17 the diversionary assistance is issued. 80.18 Subd. 5. [DIVERSIONARY ASSISTANCE GRANT; FUNDING] The 80.19 commissioner shall distribute diversionary assistance grants to 80.20 counties. The commissioner may use federal block grant funding 80.21 or state funding for the grants. 80.22 Sec. 35. [256J.48] [EMERGENCY ASSISTANCE (EA).] 80.23 Subdivision 1. [EMERGENCY FINANCIAL ASSISTANCE.] County 80.24 human service agencies shall grant emergency financial 80.25 assistance to any needy family with a child under the age of 21 80.26 who is or was within six months prior to application living with 80.27 an eligible caregiver relative specified in section 256J.08. 80.28 Except for ongoing special diets, emergency assistance is 80.29 available to a family during one 30-day period in a consecutive 80.30 12-month period. A county shall issue assistance for needs that 80.31 accrue before that 30-day period only when it is necessary to 80.32 resolve emergencies arising or continuing during the 30-day 80.33 period of eligibility. When emergency needs continue, a county 80.34 may issue assistance for up to 30 days beyond the initial 30-day 80.35 period of eligibility, but only when assistance is authorized 80.36 during the initial period. 81.1 Subd. 2. [ELIGIBILITY.] Notwithstanding other eligibility 81.2 provisions of this chapter, any family without resources 81.3 immediately available to meet emergency needs identified in 81.4 subdivision 3 shall be eligible for an emergency grant under the 81.5 following conditions: 81.6 (1) a family member has resided in this state for at least 81.7 30 days; 81.8 (2) the family is without resources immediately available 81.9 to meet emergency needs; 81.10 (3) assistance is necessary to avoid destitution or provide 81.11 emergency shelter arrangements; and 81.12 (4) the family's destitution or need for shelter or 81.13 utilities did not arise because the child or relative caregiver 81.14 refused without good cause to accept employment or training for 81.15 employment in another state. 81.16 Subd. 3. [EMERGENCY NEEDS.] Emergency needs are limited to 81.17 the following: 81.18 (a) [RENT.] A county agency may deny assistance to prevent 81.19 eviction from rented or leased shelter of an otherwise eligible 81.20 applicant when the county agency determines that an applicant's 81.21 anticipated income will not cover continued payment for shelter, 81.22 subject to conditions in clauses (1) to (3): 81.23 (1) a county agency must not deny assistance when an 81.24 applicant can document that the applicant is unable to locate 81.25 habitable shelter, unless the county agency can document that 81.26 one or more habitable shelters are available in the community 81.27 that will result in at least a 20 percent reduction in monthly 81.28 expense for shelter and that this shelter will be cost-effective 81.29 for the applicant; 81.30 (2) when no alternative shelter can be identified by either 81.31 the applicant or the county agency, the county agency shall not 81.32 deny assistance because anticipated income will not cover rental 81.33 obligation; and 81.34 (3) when cost-effective alternative shelter is identified, 81.35 the county agency shall issue assistance for moving expenses as 81.36 provided in paragraph (d). 82.1 (b) [MORTGAGE AND CONTRACT FOR DEED ARREARAGES.] A county 82.2 agency shall issue assistance for mortgage or contract for deed 82.3 arrearages on behalf of an otherwise eligible applicant 82.4 according to clauses (1) to (5): 82.5 (1) assistance for arrearages must be issued only when a 82.6 home is owned, occupied, and maintained by the applicant; 82.7 (2) assistance for arrearages must be issued only when no 82.8 subsequent foreclosure action is expected within the 12 months 82.9 following the issuance; 82.10 (3) assistance for arrearages must be issued only when an 82.11 applicant has been refused refinancing through a bank or other 82.12 lending institution and the amount payable, when combined with 82.13 any payments made by the applicant, will be accepted by the 82.14 creditor as full payment of the arrearage; 82.15 (4) costs paid by a family which are counted toward the 82.16 payment requirements under this clause are principle and 82.17 interest payments on mortgages or contracts for deed, balloon 82.18 payments, homeowner's insurance payments, manufactured home lot 82.19 rental payments, and tax or special assessment payments related 82.20 to the homestead. Costs which are not counted include closing 82.21 costs related to the sale or purchase of real property which are 82.22 outstanding at the time of foreclosure. An applicant must have 82.23 paid at least 40 percent of the family's gross income toward 82.24 these costs in the month of application and the 11-month period 82.25 immediately preceding the month of application; and 82.26 (5) when an applicant is eligible under clause (4), a 82.27 county agency shall issue assistance up to a maximum of four 82.28 times the MFIP-S transitional standard for a comparable 82.29 assistance unit. 82.30 (c) [DAMAGE DEPOSITS.] A county agency shall issue 82.31 assistance for damage deposits when necessary to alleviate the 82.32 emergency. 82.33 (d) [MOVING EXPENSES.] A county agency shall issue 82.34 assistance for expenses incurred when a family must move to a 82.35 different shelter according to clauses (1) to (4): 82.36 (1) moving expenses include the cost to transport personal 83.1 property belonging to a family, the cost for utility connection, 83.2 and the cost for securing different shelter; 83.3 (2) moving expenses must be paid only when the county 83.4 agency determines that a move is cost-effective; 83.5 (3) moving expenses must be paid at the request of an 83.6 applicant, but only when destitution or threatened destitution 83.7 exists; and 83.8 (4) moving expenses must be paid when a county agency 83.9 denies assistance to prevent an eviction because the county 83.10 agency has determined that an applicant's anticipated income 83.11 will not cover continued shelter obligation in paragraph (a). 83.12 (e) [HOME REPAIRS.] A county agency shall pay for repairs 83.13 to the roof, foundation, wiring, heating system, chimney, and 83.14 water and sewer system of a home that is owned and lived in by 83.15 an applicant. 83.16 The applicant shall document, and the county agency shall 83.17 verify the need for and method of repair. 83.18 The payment must be cost-effective in relation to the 83.19 overall condition of the home and in relation to the cost and 83.20 availability of alternative housing. 83.21 (f) [UTILITY COSTS.] Assistance for utility costs must be 83.22 made when an otherwise eligible family has had a termination or 83.23 is threatened with a termination of municipal water and sewer 83.24 service, electric, gas or heating fuel service, or lacks wood 83.25 when that is the heating source, subject to the conditions in 83.26 clauses (1) and (2): 83.27 (1) a county agency must not issue assistance unless the 83.28 county agency receives confirmation from the utility provider 83.29 that assistance combined with payment by the applicant will 83.30 continue or restore the utility; 83.31 (2) a county agency shall not issue assistance for utility 83.32 costs unless a family paid at least eight percent of the 83.33 family's gross income toward utility costs due during the 83.34 utility budget period; and 83.35 (3) clauses (1) and (2) must not be construed to prevent 83.36 the issuance of assistance when a county agency must take 84.1 immediate and temporary action necessary to protect the life or 84.2 health of a child. 84.3 (g) [SPECIAL DIETS.] A county shall pay for special diets 84.4 or dietary items. The need for special diets or dietary items 84.5 must be prescribed by a licensed physician. Costs for special 84.6 diets shall be determined as percentages of the allotment for a 84.7 one-person household under the Thrifty Food Plan. The types of 84.8 diets and the percentages of the Thrifty Food Plan that are 84.9 covered are as follows: 84.10 (1) high protein diet, at least 80 grams daily, 25 percent 84.11 of Thrifty Food Plan; 84.12 (2) controlled protein diet, 40 to 60 grams and requires 84.13 special products, 100 percent of Thrifty Food Plan; 84.14 (3) controlled protein diet, less than 40 grams and 84.15 requires special products, 125 percent of Thrifty Food Plan; 84.16 (4) low cholesterol diet, 25 percent of Thrifty Food Plan; 84.17 (5) high residue diet, 20 percent of Thrifty Food Plan; 84.18 (6) pregnancy and lactation diet, 35 percent of Thrifty 84.19 Food Plan; 84.20 (7) gluten-free diet, 25 percent of Thrifty Food Plan; 84.21 (8) lactose-free diet, 25 percent of Thrifty Food Plan; 84.22 (9) antidumping diet, 15 percent of Thrifty Food Plan; 84.23 (10) hypoglycemic diet, 15 percent of Thrifty Food Plan; or 84.24 (11) ketogenic diet, 25 percent of Thrifty Food Plan. 84.25 Subd. 4. [VENDOR PAYMENTS FOR SHELTER OR UTILITY 84.26 COSTS.] An ongoing MFIP-S grant may, at county board option, be 84.27 in the form of vendor payments if application for emergency 84.28 assistance is for shelter or utility costs. 84.29 MFIP-S EMPLOYMENT AND TRAINING 84.30 Sec. 36. [256J.49] [EMPLOYMENT AND TRAINING SERVICES; 84.31 DEFINITIONS.] 84.32 Subdivision 1. [SCOPE.] The terms used in sections 256J.50 84.33 to 256J.72 have the meanings given them in this section. 84.34 Subd. 2. [DOMESTIC VIOLENCE.] "Domestic violence" means: 84.35 (1) physical acts that result, or threaten to result in, 84.36 physical injury to an individual; 85.1 (2) sexual abuse; 85.2 (3) sexual activity involving a minor child; 85.3 (4) being forced as the caregiver of a minor child to 85.4 engage in nonconsensual sexual acts or activities; 85.5 (5) threats of, or attempts at, physical or sexual abuse; 85.6 (6) mental abuse; or 85.7 (7) neglect or deprivation of medical care. 85.8 Subd. 3. [EMPLOYMENT AND TRAINING SERVICES.] "Employment 85.9 and training services" means programs, activities and services 85.10 that are designed to assist participants in obtaining and 85.11 retaining employment. 85.12 Subd. 4. [EMPLOYMENT AND TRAINING SERVICE 85.13 PROVIDER.] "Employment and training service provider" means: 85.14 (1) a public, private, or nonprofit employment and training 85.15 agency certified by the commissioner of economic security under 85.16 sections 268.0122, subdivision 3, and 268.871, subdivision 1; 85.17 (2) a public, private, or nonprofit agency that is not 85.18 certified by the commissioner under clause (1), but with which a 85.19 county has contracted to provide employment and training 85.20 services; or 85.21 (3) a county agency, if the county has opted to provide 85.22 employment and training services. 85.23 Subd. 5. [EMPLOYMENT PLAN.] "Employment plan" means a plan 85.24 developed by the job counselor and the participant which 85.25 identifies the participant's most direct path to employment, 85.26 lists the specific steps that the caregiver will take on that 85.27 path, and includes a timetable for the completion of each step. 85.28 Subd. 6. [FEDERAL PARTICIPATION STANDARDS.] "Federal 85.29 participation standards" means the work participation standards 85.30 as specified in title I of Public Law No. 104-193, the Personal 85.31 Responsibility and Work Opportunity Reconciliation Act of 1996. 85.32 Subd. 7. [INTENSIVE ENGLISH AS A SECOND LANGUAGE 85.33 PROGRAM.] "Intensive English as a second language program" means 85.34 an English as a second language program that offers at least 20 85.35 hours of class per week. 85.36 Subd. 8. [JOB COUNSELOR.] "Job counselor" means a staff 86.1 person employed by the employment and training services provider 86.2 who delivers services as specified in sections 256J.50 to 86.3 256J.69. 86.4 Subd. 9. [PARTICIPANT.] "Participant" means a recipient of 86.5 MFIP-S assistance who participates or is required to participate 86.6 in employment and training services. 86.7 Subd. 10. [PROVIDER.] "Provider" means an employment and 86.8 training service provider. 86.9 Subd. 11. [SAFETY PLAN.] "Safety plan" means a plan 86.10 developed by a victim of domestic violence or a person at risk 86.11 of becoming a victim of domestic violence with the assistance of 86.12 a public agency or a private nonprofit agency, including 86.13 agencies that receive designation by the department of 86.14 corrections to provide emergency shelter services or support 86.15 services under section 611A.32. A safety plan shall not include 86.16 a provision that automatically requires a domestic violence 86.17 victim to seek an order of protection, or to attend counseling, 86.18 as part of the safety plan. 86.19 Subd. 12. [SUITABLE EMPLOYMENT.] "Suitable employment" 86.20 means employment that: 86.21 (1) is within the participant's physical and mental 86.22 abilities; 86.23 (2) pays hourly gross wages of not less than the applicable 86.24 state or federal minimum wage; 86.25 (3) meets health and safety standards set by federal, state 86.26 and county agencies; and 86.27 (4) complies with federal, state, and local 86.28 antidiscrimination laws. 86.29 Subd. 13. [WORK ACTIVITY.] "Work activity" means any 86.30 activity in a participant's approved employment plan that is 86.31 tied to the participant's employment goal . For purposes of the 86.32 MFIP-S program, any activity that is included in a participant's 86.33 approved employment plan meets the definition of work activity 86.34 as counted under the federal participation standards. Work 86.35 activity includes, but is not limited to: 86.36 (1) unsubsidized employment; 87.1 (2) subsidized private sector or public sector employment, 87.2 including grant diversion as specified in section 256J.69; 87.3 (3) work experience, including CWEP as specified in section 87.4 256J.67, and including work associated with the refurbishing of 87.5 publicly assisted housing if sufficient private sector 87.6 employment is not available; 87.7 (4) on-the-job training as specified in section 256J.66; 87.8 (5) job search, either supervised or unsupervised; 87.9 (6) job readiness assistance; 87.10 (7) job clubs, including job search workshops; 87.11 (8) job placement; 87.12 (9) job development; 87.13 (10) job-related counseling; 87.14 (11) job coaching; 87.15 (12) job retention services; 87.16 (13) job-specific training or education ; 87.17 (14) job skills training directly related to employment; 87.18 (15) the self-employment investment demonstration (SEID), 87.19 as specified in section 256J.65; 87.20 (16) preemployment activities, based on availability and 87.21 resources, such as volunteer work, citizenship and English as a 87.22 second language classes, or participation in dislocated worker 87.23 services, chemical dependency treatment, mental health services, 87.24 peer group networks, displaced homemaker programs, parenting 87.25 education, or other programs designed to help families reach 87.26 their employment goals and enhance their ability to care for 87.27 their children; 87.28 (17) community service programs; 87.29 (18) vocational educational training or educational 87.30 programs that can reasonably be expected to lead to employment, 87.31 as limited by the provisions of section 256J.53; 87.32 (19) apprenticeships; 87.33 (20) satisfactory attendance in general educational 87.34 development diploma classes; 87.35 (21) satisfactory attendance at secondary school, if the 87.36 participant has not received a high school diploma; 88.1 (22) adult basic education classes; 88.2 (23) internships; 88.3 (24) bilingual employment and training services; 88.4 (25) providing child care services to a participant who is 88.5 working in a community service program; and 88.6 (26) activities included in a safety plan that is developed 88.7 under section 256J.52, subdivision 6. 88.8 Sec. 37. [256J.50] [COUNTY DUTIES.] 88.9 Subdivision 1. [EMPLOYMENT AND TRAINING SERVICES COMPONENT 88.10 OF MFIP-S.] (a) By October 1, 1997, each county must develop and 88.11 implement an employment and training services component of 88.12 MFIP-S which is designed to put participants on the most direct 88.13 path to unsubsidized employment. Participation in these 88.14 services is mandatory for all MFIP-S caregivers according to 88.15 subdivision 5, unless the caregiver is exempt under section 88.16 256J.56 and is required concurrent with the receipt of MFIP-S 88.17 cash assistance. 88.18 (b) A county may delay implementation of the employment and 88.19 training services component of MFIP-S beyond October 1, 1997, if 88.20 the county presents to the commissioner in writing by September 88.21 1, 1997, the reasons why the delay is necessary. A county must 88.22 implement the employment and training services component by 88.23 January 1, 1998. 88.24 (c) Each county or group of counties working cooperatively 88.25 must make available to their participants the choice of at least 88.26 two employment and training service providers, except in 88.27 counties utilizing workforce centers that use multiple 88.28 employment providers and offer multiple service options under a 88.29 collaborative effort and can document that participants have 88.30 choice among employment and training services designed to meet 88.31 specialized needs. 88.32 Subd. 2. [PILOT PROGRAMS.] In counties selected for the 88.33 work first or work focused pilot programs, first-time applicants 88.34 for assistance must meet the requirements of those programs in 88.35 place of the requirements of the MFIP-S program. A county may, 88.36 at its option, discontinue a work first or work focused pilot 89.1 program. 89.2 Subd. 3. [TRANSITIONAL RULE; STRIDE, ACCESS, MFIP, OR 89.3 MFIP-R PARTICIPANT.] A caregiver who was enrolled in project 89.4 STRIDE, ACCESS, MFIP or MFIP-R on the date the county implements 89.5 the employment and training services component of MFIP-S and was 89.6 making satisfactory progress toward the objectives specified in 89.7 the caregiver's employment plan, may continue with the existing 89.8 employment plan for up to two years with the approval of a job 89.9 counselor. The job counselor may require changes to the plan in 89.10 order to be consistent with this two-year time limit. 89.11 Subd. 4. [SERVICE-PROVIDING AGENCIES.] Counties may select 89.12 one or more employment and training service providers, or may 89.13 opt to provide services on their own. 89.14 Subd. 5. [PARTICIPATION REQUIREMENTS FOR SINGLE-PARENT AND 89.15 TWO-PARENT CASES.] A county must establish a uniform schedule 89.16 for requiring participation by single parents. Mandatory 89.17 participation must be required within three months of 89.18 eligibility for cash assistance. For two-parent cases, 89.19 participation is required concurrent with the receipt of MFIP-S 89.20 cash assistance. 89.21 Sec. 38. [256J.51] [ORIENTATION.] 89.22 Subdivision 1. [COUNTY AGENCY TO PROVIDE 89.23 ORIENTATION.] County agencies in MFIP-S counties must provide 89.24 each applicant who has been referred to employment and training 89.25 services with a face-to-face orientation to the employment and 89.26 training component of MFIP-S with staff of the county agency or 89.27 the entity providing the orientation. The county agency may not 89.28 require caregivers to attend an MFIP-S orientation. If a 89.29 caregiver does not attend an orientation, the county agency must 89.30 provide written information to the caregiver about MFIP-S. 89.31 Subd. 2. [GENERAL INFORMATION.] The MFIP-S orientation 89.32 must consist of a presentation that informs caregivers of: 89.33 (1) the necessity to obtain immediate employment; 89.34 (2) the work incentives under MFIP-S; 89.35 (3) the requirement to comply with the employment plan and 89.36 other requirements of the work and training component of MFIP-S; 90.1 (4) the consequences for failing to comply with the 90.2 employment plan and other program requirements; 90.3 (5) the rights, responsibilities, and obligations of 90.4 participants; 90.5 (6) the types and locations of child care services 90.6 available through the county agency; 90.7 (7) the availability and the benefits of the early 90.8 childhood health and developmental screening under sections 90.9 123.701 to 123.74; 90.10 (8) the caregiver's eligibility for transition year child 90.11 care assistance when the caregiver loses eligibility for MFIP-S 90.12 due to increased earnings; 90.13 (9) the caregiver's eligibility for extended medical 90.14 assistance when the caregiver loses eligibility for MFIP-S due 90.15 to increased earnings or increased child or spousal support; and 90.16 (10) the caregiver's option to choose an employment and 90.17 training provider and information about each provider, including 90.18 but not limited to, services offered, program components, job 90.19 placement rates, job placement wages, and job retention rates. 90.20 Sec. 39. [256J.52] [ASSESSMENTS; PLANS.] 90.21 Subdivision 1. [APPLICATION LIMITED TO CERTAIN 90.22 RECIPIENTS.] This section applies to recipients of MFIP-S 90.23 assistance who are not exempt under section 256J.56. 90.24 Subd. 2. [INITIAL ASSESSMENT.] (a) The job counselor must, 90.25 with the cooperation of the participant, assess the 90.26 participant's ability to obtain employment. This initial 90.27 assessment must include a review of the participant's education 90.28 level, prior employment or work experience, transferable work 90.29 skills, and existing job markets. In assessing the participant, 90.30 the job counselor must determine if the participant needs 90.31 refresher courses for professional certification or licensure, 90.32 in which case, the job search plan under subdivision 3 must 90.33 include the courses necessary to obtain the certification or 90.34 licensure, in addition to other work activities, provided the 90.35 combination of the courses and other work activities are at 90.36 least for 40 hours per week. Lack of proficiency in English is 91.1 not necessarily a barrier to employment. If an individual can 91.2 demonstrate to the satisfaction of the county agency that lack 91.3 of proficiency in English is a barrier to obtaining suitable 91.4 employment, the individual must include participation in an 91.5 intensive English as a second language program in the 91.6 individual's employment plan under subdivision 5. 91.7 (b) Caretakers who, at the time of the initial assessment 91.8 under this section, are participating in an education program 91.9 that satisfies the criteria in section 256J.53, may, with the 91.10 approval of the job counselor, postpone job search. These 91.11 caretakers must be referred for development of an employment 91.12 plan that includes completion of the education program. 91.13 Subd. 3. [JOB SEARCH; JOB SEARCH SUPPORT PLAN.] If, after 91.14 the initial assessment, the job counselor determines that the 91.15 participant possesses sufficient skills that the participant is 91.16 likely to succeed in obtaining suitable employment, the 91.17 participant must conduct job search for a period of up to eight 91.18 weeks, for at least 30 hours per week. The participant must 91.19 accept any offer of suitable employment. The job counselor and 91.20 participant must develop a job search support plan which 91.21 specifies, at a minimum: whether the job search is to be 91.22 supervised or unsupervised; support services that will be 91.23 provided while the participant conducts job search activities; 91.24 the courses necessary to obtain certification or licensure, if 91.25 applicable, and after obtaining the license or certificate, the 91.26 client must comply with subdivision 5; and how frequently the 91.27 participant must report to the job counselor on the status of 91.28 the participant's job search activities. Failure to conduct the 91.29 required job search, to accept any offer of suitable employment, 91.30 to develop or comply with a job search support plan, or 91.31 voluntarily quitting suitable employment without good cause 91.32 results in the imposition of a sanction under section 256J.46. 91.33 If at the end of eight weeks the participant has not obtained 91.34 suitable employment, the job counselor must conduct a secondary 91.35 assessment of the participant under subdivision 4. 91.36 Subd. 4. [SECONDARY ASSESSMENT.] (a) The job counselor 92.1 must conduct a secondary assessment for those participants who: 92.2 (1) in the judgment of the job counselor, have barriers to 92.3 obtaining employment that will not be overcome with a job search 92.4 support plan under subdivision 3; or 92.5 (2) have completed eight weeks of job search under 92.6 subdivision 3 without obtaining suitable employment. 92.7 (b) In the secondary assessment the job counselor must 92.8 evaluate the participant's skills and prior work experience, 92.9 family circumstances, interests and abilities, need for 92.10 preemployment, supportive, or educational services, and the 92.11 extent of any barriers to employment. The job counselor must 92.12 use the information gathered through the secondary assessment to 92.13 develop an employment plan under subdivision 5. 92.14 Subd. 5. [EMPLOYMENT PLAN; CONTENTS.] Based on the 92.15 secondary assessment under subdivision 4, the job counselor and 92.16 the participant must develop an employment plan for the 92.17 participant that includes specific activities that are tied to 92.18 an employment goal and a plan for long-term self-sufficiency, 92.19 and that is designed to move the participant along the most 92.20 direct path to unsubsidized employment. The employment plan 92.21 must list the specific steps that will be taken to obtain 92.22 employment and a timetable for completion of each of the steps. 92.23 The job counselor and the participant must sign the developed 92.24 plan to indicate agreement between the job counselor and the 92.25 participant on the contents of the plan. 92.26 Subd. 6. [SAFETY PLAN.] Notwithstanding subdivisions 1 to 92.27 5, a participant who is a victim of domestic violence and who 92.28 agrees to develop or has developed a safety plan meeting the 92.29 definition under section 256J.49, subdivision 11, is deferred 92.30 from the requirements of this section, section 256J.54, and 92.31 section 256J.55 for a period of three months from the date the 92.32 safety plan is approved . A participant deferred under this 92.33 subdivision must submit a safety plan status report to the 92.34 county agency on a quarterly basis. Based on a review of the 92.35 status report, the county agency may approve or renew the 92.36 participant's deferral each quarter, provided the personal 93.1 safety of the participant is still at risk and the participant 93.2 is complying with the plan. A participant who is deferred under 93.3 this subdivision may be deferred for a total of 12 months under 93.4 a safety plan, provided the individual is complying with the 93.5 terms of the plan. 93.6 Sec. 40. [256J.53] [LIMITATIONS ON POST-SECONDARY 93.7 EDUCATION AS AN APPROVED WORK ACTIVITY.] 93.8 Subdivision 1. [LENGTH OF PROGRAM.] In order for a 93.9 post-secondary education or training program to be an approved 93.10 work activity as defined in section 256J.49, subdivision 13, 93.11 clause (18), it must be a program lasting 12 months or less. A 93.12 program lasting up to 24 months may be approved if the 93.13 conditions specified in subdivisions 2 to 4 are met. A 93.14 participant may not be approved for more than a total of 24 93.15 months of post-secondary education or training. 93.16 Subd. 2. [DOCUMENTATION SUPPORTING PROGRAM.] In order for 93.17 a post-secondary education or training program lasting between 93.18 13 and 24 months to be an approved activity in a participant's 93.19 employment plan, the participant or the employment and training 93.20 service provider must provide documentation that: 93.21 (1) the participant's employment plan identifies specific 93.22 goals that can only be met with the additional education or 93.23 training; 93.24 (2) there are suitable employment opportunities that 93.25 require the specific education or training in the area in which 93.26 the participant resides or is willing to reside; 93.27 (3) the education or training will result in significantly 93.28 higher wages for the participant than the participant could earn 93.29 without the education or training; 93.30 (4) the participant can meet the requirements for admission 93.31 into the program; and 93.32 (5) there is a reasonable expectation that the caregiver 93.33 will complete the training program based on the MFIP-S 93.34 assessment; previous education training and work history; 93.35 current motivation; and changes in previous circumstances. 93.36 Subd. 3. [SATISFACTORY PROGRESS REQUIRED.] In order for a 94.1 post-secondary education or training program lasting between 13 94.2 and 24 months to be an approved activity in a participant's 94.3 employment plan, the participant must maintain satisfactory 94.4 progress in the program. "Satisfactory progress" in an 94.5 education or training program means the participant remains in 94.6 good standing while the participant is enrolled in the program, 94.7 as defined by the education or training institution, and the 94.8 participant meets the requirements of the participant's 94.9 employment plan. 94.10 Subd. 4. [REPAYMENT OF EMPLOYMENT AND TRAINING 94.11 ASSISTANCE.] In order for a post-secondary education or training 94.12 program lasting between 13 and 24 months to be an approved 94.13 activity in a participant's employment plan, the participant 94.14 must agree to repay the amount of employment and training funds 94.15 paid by the county to support the approved activities in the 94.16 participant's employment plan during each month after the 12th 94.17 month that the participant is enrolled in the program. 94.18 Assistance obtained by the participant through the federal Pell 94.19 grant program or other federal or state programs of higher 94.20 education assistance must be excluded from the amount to be 94.21 repaid by the participant. The participant and the county 94.22 agency must develop a mutually acceptable repayment plan. The 94.23 repayment plan must not assess any interest charges on the cost 94.24 of the funds to be repaid. The loan is considered to be in 94.25 repayment status when: 94.26 (1) the participant completes the program and obtains 94.27 suitable employment that pays annual gross wages of at least 150 94.28 percent of the federal poverty level; or 94.29 (2) the participant leaves the program before completion of 94.30 the program and obtains suitable employment that pays annual 94.31 gross wages of at least 150 percent of the federal poverty level. 94.32 Subd. 5. [JOB SEARCH AFTER COMPLETION OF WORK 94.33 ACTIVITY.] If a participant's employment plan includes an 94.34 educational or training goal, the plan must include an 94.35 anticipated completion date for those activities. At the time 94.36 the education or training is completed, the participant must 95.1 participate in job search. If, after three months of job 95.2 search, the participant does not find a job that is consistent 95.3 with the participant's employment goal, the participant must 95.4 accept any offer of suitable employment. 95.5 Sec. 41. [256J.54] [MINOR PARENTS; EMPLOYMENT PLAN.] 95.6 Subdivision 1. [ASSESSMENT OF EDUCATIONAL PROGRESS AND 95.7 NEEDS.] The county agency must document the educational level of 95.8 each MFIP-S caregiver who is under the age of 20 and determine 95.9 if the caregiver has obtained a high school diploma or its 95.10 equivalent. If the caregiver has not obtained a high school 95.11 diploma or its equivalent, and is not exempt from the 95.12 requirement to attend school under subdivision 5, the county 95.13 agency must complete an individual assessment for the 95.14 caregiver. The assessment must be performed as soon as possible 95.15 but within 30 days of determining MFIP-S eligibility for the 95.16 caregiver. The assessment must provide an initial examination 95.17 of the caregiver's educational progress and needs, literacy 95.18 level, child care and supportive service needs, family 95.19 circumstances, skills, and work experience. In the case of a 95.20 caregiver under the age of 18, the assessment must also consider 95.21 the results of either the caregiver's or the caregiver's minor 95.22 child's child and teen checkup under Minnesota Rules, part 95.23 9505.0275 and parts 9505.1693 to 9505.1748, if available, and 95.24 the effect of a child's development and educational needs on the 95.25 caregiver's ability to participate in the program. The county 95.26 agency must advise the caregiver that the caregiver's first goal 95.27 must be to complete an appropriate educational option if one is 95.28 identified for the caregiver through the assessment and, in 95.29 consultation with educational agencies, must review the various 95.30 school completion options with the caregiver and assist in 95.31 selecting the most appropriate option. 95.32 Subd. 2. [RESPONSIBILITY FOR ASSESSMENT AND EMPLOYMENT 95.33 PLAN.] For caregivers who are under age 18, the assessment under 95.34 subdivision 1 and the employment plan under subdivision 3 must 95.35 be completed by the social services agency under section 95.36 257.33. For caregivers who are age 18 or 19, the assessment 96.1 under subdivision 1 and the employment plan under subdivision 3 96.2 must be completed by the job counselor. The social services 96.3 agency or the job counselor shall consult with representatives 96.4 of educational agencies that are required to assist in 96.5 developing educational plans under section 126.235. 96.6 Subd. 3. [EDUCATIONAL OPTION DEVELOPED.] If the job 96.7 counselor or county social services agency identifies an 96.8 appropriate educational option, it must develop an employment 96.9 plan which reflects the identified option. The plan must 96.10 specify that participation in an educational activity is 96.11 required, what school or educational program is most 96.12 appropriate, the services that will be provided, the activities 96.13 the caregiver will take part in, including child care and 96.14 supportive services, the consequences to the caregiver for 96.15 failing to participate or comply with the specified 96.16 requirements, and the right to appeal any adverse action. The 96.17 employment plan must, to the extent possible, reflect the 96.18 preferences of the caregiver. 96.19 Subd. 4. [NO APPROPRIATE EDUCATIONAL OPTION.] If the job 96.20 counselor determines that there is no appropriate educational 96.21 option for a caregiver who is age 18 or 19, the job counselor 96.22 must develop an employment plan, as defined in section 256J.49, 96.23 subdivision 5, for the caregiver. If the county social services 96.24 agency determines that school attendance is not appropriate for 96.25 a caregiver under age 18, the county agency shall refer the 96.26 caregiver to social services for services as provided in section 96.27 257.33. 96.28 Subd. 5. [SCHOOL ATTENDANCE REQUIRED.] (a) Notwithstanding 96.29 the provisions of section 256J.56, minor parents, or 18- or 96.30 19-year-old parents without a high school diploma or its 96.31 equivalent must attend school unless: 96.32 (1) transportation services needed to enable the caregiver 96.33 to attend school are not available; 96.34 (2) licensed or legal nonlicensed child care services 96.35 needed to enable the caregiver to attend school are not 96.36 available; 97.1 (3) the caregiver is ill or incapacitated seriously enough 97.2 to prevent attendance at school; or 97.3 (4) the caregiver is needed in the home because of the 97.4 illness or incapacity of another member of the household. This 97.5 includes a caregiver of a child who is younger than six weeks of 97.6 age. 97.7 (b) The caregiver must be enrolled in a secondary school 97.8 and meeting the school's attendance requirements. An enrolled 97.9 caregiver is considered to be meeting the attendance 97.10 requirements when the school is not in regular session, 97.11 including during holiday and summer breaks. 97.12 Sec. 42. [256J.55] [PARTICIPANT REQUIREMENTS AND 97.13 EXPECTATIONS.] 97.14 Subdivision 1. [COMPLIANCE WITH EMPLOYMENT PLAN; SUITABLE 97.15 EMPLOYMENT.] (a) Each MFIP-S participant must comply with the 97.16 terms of the participant's employment plan. When the 97.17 participant has completed the steps listed in the employment 97.18 plan, the participant must comply with section 256J.53, 97.19 subdivision 5 . The participant may choose to accept an offer 97.20 of suitable employment before the participant has completed the 97.21 steps of the employment plan. 97.22 (b) For a participant under the age of 20 who is without a 97.23 high school diploma or general educational development diploma, 97.24 the requirement to comply with the terms of the employment plan 97.25 means the participant must meet the requirements of section 97.26 256J.54. 97.27 (c) Failure to develop or comply with an employment plan, 97.28 or quitting suitable employment without good cause, shall result 97.29 in the imposition of a sanction as specified in sections 256J.57 97.30 and 256J.46. 97.31 Subd. 2. [DUTY TO REPORT.] The participant must inform the 97.32 job counselor within three working days regarding any changes 97.33 related to the participant's employment status. 97.34 Subd. 3. [MOVE TO A DIFFERENT COUNTY.] MFIP-S applicants 97.35 or recipients who move to a different county in Minnesota and 97.36 are required to participate in employment and training services 98.1 are subject to the requirements of the destination county. An 98.2 employment plan that was developed in the county of origin may 98.3 be continued in the destination county if both the destination 98.4 county and the participant agree to do so. 98.5 Sec. 43. [256J.56] [EMPLOYMENT AND TRAINING SERVICES 98.6 COMPONENT; EXEMPTIONS.] 98.7 An MFIP-S caregiver is exempt from the requirements of 98.8 sections 256J.51 to 256J.55 if the caregiver belongs to any of 98.9 the following groups: 98.10 (1) individuals who are age 60 or older; 98.11 (2) individuals who are suffering from a professionally 98.12 certified permanent or temporary illness, injury, or incapacity 98.13 which is expected to continue for more than 30 days and which 98.14 prevents the person from obtaining or retaining employment. 98.15 Persons in this category with a temporary illness, injury, or 98.16 incapacity must be reevaluated at least quarterly; 98.17 (3) caregivers whose presence in the home is required 98.18 because of the professionally certified illness or incapacity of 98.19 another member in the household; 98.20 (4) women who are pregnant, if the pregnancy has resulted 98.21 in a professionally certified incapacity that prevents the woman 98.22 from obtaining or retaining employment; 98.23 (5) caregivers of a child under the age of one year who 98.24 personally provide full-time care for the child. In two-parent 98.25 households, only one parent or other relative may qualify for 98.26 this exemption; 98.27 (6) individuals employed at least 40 hours per week or at 98.28 least 30 hours per week and engaged in job search for at least 98.29 an additional ten hours per week; 98.30 (7) individuals experiencing a personal or family crisis 98.31 that is professionally certified to make them incapable of 98.32 participating in the program, as determined by the county 98.33 agency. Persons in this category must be reevaluated every 60 98.34 days; or 98.35 (8) second parents in two-parent families, provided the 98.36 second parent is employed for 20 or more hours per week. 99.1 Sec. 44. [256J.57] [GOOD CAUSE; FAILURE TO COMPLY; NOTICE; 99.2 CONCILIATION CONFERENCE.] 99.3 Subdivision 1. [GOOD CAUSE FOR FAILURE TO COMPLY.] The 99.4 county agency shall not impose the sanction under section 99.5 256J.46 if it determines that the parental caregiver has good 99.6 cause for not meeting the expectations of developing and 99.7 complying with the terms of an employment plan developed with 99.8 the county agency. Good cause exists when: 99.9 (1) needed child care is not available; 99.10 (2) the job does not meet the definition of suitable 99.11 employment; 99.12 (3) the parental caregiver is ill or injured; 99.13 (4) a family member is ill and needs care by the parental 99.14 caregiver that prevents the parental caregiver from complying 99.15 with the employment plan; 99.16 (5) the parental caregiver is unable to secure necessary 99.17 transportation; 99.18 (6) the parental caregiver is in an emergency situation 99.19 that prevents compliance with the employment plan; 99.20 (7) the schedule of compliance with the employment plan 99.21 conflicts with judicial proceedings; 99.22 (8) the parental caregiver is already participating in 99.23 acceptable work activities; 99.24 (9) the employment plan requires an educational program for 99.25 a caregiver under age 20, but the educational program is not 99.26 available; 99.27 (10) activities identified in the employment plan are not 99.28 available; 99.29 (11) the parental caregiver is willing to accept suitable 99.30 employment, but employment is not available; or 99.31 (12) the parental caregiver documents other verifiable 99.32 impediments to compliance with the employment plan beyond the 99.33 parental caregiver's control. 99.34 Subd. 2. [SUPERVISORY REVIEW; NOTICE OF INTENT TO 99.35 SANCTION.] (a) Before a job counselor provides a notice of 99.36 intent to sanction a participant for noncompliance under 100.1 paragraph (b), the job counselor's immediate supervisor must 100.2 review the reason for a participant's noncompliance. The 100.3 supervisor's review must occur in a timely manner. If the 100.4 supervisor concurs with the job counselor's judgment that the 100.5 failure is not reasonable or justified, the job counselor must 100.6 provide the notice specified in paragraph (b). 100.7 (b) When a participant fails without good cause to comply 100.8 with the requirements of sections 256J.51 to 256J.55, the job 100.9 counselor or the county agency must provide a notice of intent 100.10 to sanction to the participant specifying the program 100.11 requirements that were not complied with, informing the 100.12 participant that the county agency will impose the sanctions 100.13 specified in section 256J.46, and informing the participant of 100.14 the opportunity to request a conciliation conference as 100.15 specified in paragraph (c). If the job counselor provides the 100.16 required notice, the job counselor must simultaneously notify 100.17 the county agency that the participant has failed to comply and 100.18 request that the county agency impose the sanctions in section 100.19 256J.46. The county must then send a notice of adverse action 100.20 to the participant informing the participant of the sanction 100.21 that will be imposed, the reasons for the sanction, the 100.22 effective date of the sanction, and the participant's right to 100.23 have a fair hearing under section 256J.40. 100.24 (c) The participant may request a conciliation conference 100.25 by sending a written request, by making a telephone request, or 100.26 by making an in-person request. The request must be received 100.27 within ten calendar days of the date the county agency mailed 100.28 the ten-day notice of intent to sanction. If a timely request 100.29 for a conciliation is received, the county agency's service 100.30 provider must conduct the conference within five days of the 100.31 request. If the conciliation conference resolves the 100.32 noncompliance, the job counselor must promptly inform the county 100.33 agency and request withdrawal of the sanction notice. 100.34 (d) Upon receiving a sanction notice, the participant may 100.35 request a fair hearing under section 256J.40, without exercising 100.36 the option of a conciliation conference. The county agency may 101.1 not require a conciliation conference prior to a fair hearing. 101.2 (e) If the participant requests a fair hearing or a 101.3 conciliation conference, sanctions will not be imposed until 101.4 there is a determination of noncompliance. Sanctions must be 101.5 imposed as provided in section 256J.46. 101.6 Sec. 45. [256J.61] [REPORTING REQUIREMENTS.] 101.7 The commissioner of human services, in cooperation with the 101.8 commissioner of economic security, shall develop reporting 101.9 requirements for county agencies and employment and training 101.10 service providers according to section 256.01, subdivision 2, 101.11 paragraph (17). Reporting requirements must, to the extent 101.12 possible, use existing client tracking systems and must be 101.13 within the limits of funds available. The requirements must 101.14 include summary information necessary for state agencies and the 101.15 legislature to evaluate the effectiveness of the services. 101.16 Sec. 46. [256J.62] [ALLOCATION OF COUNTY EMPLOYMENT AND 101.17 TRAINING SERVICES BLOCK GRANT.] 101.18 Subdivision 1. [ALLOCATION.] Money appropriated for MFIP-S 101.19 employment and training services must be allocated to counties 101.20 as specified in this section. 101.21 Subd. 2. [GUARANTEED FLOOR.] First, money shall be 101.22 allocated to counties in an amount equal to the county's 101.23 guaranteed floor. The county's guaranteed allocation floor 101.24 shall be calculated as follows: 101.25 (1) for fiscal 1998, the guaranteed allocation floor shall 101.26 be calculated by multiplying the county's STRIDE allocation 101.27 received for state fiscal year 1997 by 90 percent; 101.28 (2) for each subsequent fiscal year, the guaranteed 101.29 allocation floor shall be calculated by multiplying the county's 101.30 MFIP-S employment and training services allocation received the 101.31 previous state fiscal year by 90 percent; and 101.32 (3) if the amount of funds available for allocation is less 101.33 than the amount allocated to all counties for the previous 101.34 fiscal year, each county's previous year allocation shall be 101.35 reduced in proportion to the reduction in statewide funding for 101.36 the purpose of establishing the guaranteed floor. 102.1 Subd. 3. [ALLOCATION OF BALANCE OF FUNDS.] If there remain 102.2 funds to allocate after establishing each county's guaranteed 102.3 floor under the provisions in subdivision 2, the balance of 102.4 funds shall be allocated as follows: 102.5 (1) up to 25 percent of the funds must be allocated to 102.6 counties without cities of the first class that contract with 102.7 other counties to provide employment and training services. Not 102.8 more than 20 percent of the funding can be used for 102.9 administrative costs associated with employment and training 102.10 contracts. When determining compliance with the federal work 102.11 participation requirements, the commissioner shall measure the 102.12 participation rate for those counties that jointly contract to 102.13 provide the employment and training services on a regional 102.14 basis; 102.15 (2) for state fiscal year 1998, the remaining funds shall 102.16 be allocated based on the county's average number of AFDC and 102.17 family general assistance cases as compared to the statewide 102.18 total number of cases. The average number of cases shall be 102.19 based on counts of cases as of March 31, June 30, September 30, 102.20 and December 31 of calendar year 1996; 102.21 (3) for state fiscal year 1999, the remaining funds shall 102.22 be allocated based on the county's average number of AFDC, 102.23 family general assistance, MFIP, MFIP-R, and MFIP-S cases as 102.24 compared to the statewide total number of cases. The average 102.25 number of cases shall be based on counts of MFIP cases as of 102.26 March 31, June 30, September 30, and December 31 of calendar 102.27 year 1997; and 102.28 (4) for all subsequent state fiscal years, the remaining 102.29 funds shall be allocated based on the county's average number of 102.30 MFIP-S cases as compared to the statewide total number of 102.31 cases. The average number of cases must be based on counts of 102.32 MFIP-S cases as of March 31, June 30, September 30, and December 102.33 31 of the previous calendar year. 102.34 Subd. 4. [ADMINISTRATIVE ACTIVITIES LIMIT.] No more than 102.35 15 percent of the money allocated under this section may be used 102.36 for administrative activities. 103.1 Subd. 5. [BILINGUAL EMPLOYMENT AND TRAINING SERVICES TO 103.2 REFUGEES.] Funds appropriated to cover the costs of bilingual 103.3 employment and training services to refugees shall be allocated 103.4 to county agencies as follows: 103.5 (1) for state fiscal year 1998, the allocation shall be 103.6 based on the county's proportion of the total statewide number 103.7 of AFDC refugee cases in the previous fiscal year. Counties 103.8 with less than one percent of the statewide number of AFDC or 103.9 MFIP refugee cases shall not receive an allocation of bilingual 103.10 employment and training services funds; and 103.11 (2) for each subsequent fiscal year, the allocation shall 103.12 be based on the county's proportion of the total statewide 103.13 number of MFIP-S refugee cases in the previous fiscal year. 103.14 Counties with less than one percent of the statewide number of 103.15 MFIP-S refugee cases shall not receive an allocation of 103.16 bilingual employment and training services funds. 103.17 Subd. 6. [WORK LITERACY LANGUAGE PROGRAMS.] Funds 103.18 appropriated to cover the costs of work literacy language 103.19 programs to non-English speaking recipients shall be allocated 103.20 to county agencies as follows: 103.21 (1) for state fiscal year 1998, the allocation shall be 103.22 based on the county's proportion of the total statewide number 103.23 of AFDC or MFIP cases in the previous fiscal year where the lack 103.24 of English is a barrier to employment. Counties with less than 103.25 two percent of the statewide number of AFDC or MFIP cases where 103.26 the lack of English is a barrier to employment shall not receive 103.27 an allocation of the work literacy language program funds; and 103.28 (2) for each subsequent fiscal year, the allocation shall 103.29 be based on the county's proportion of the total statewide 103.30 number of MFIP-S cases in the previous fiscal year where the 103.31 lack of English is a barrier to employment. Counties with less 103.32 than two percent of the statewide number of MFIP-S cases where 103.33 the lack of English is a barrier to employment shall not receive 103.34 an allocation of the work literacy language program funds. 103.35 Subd. 7. [REALLOCATION.] The commissioner of human 103.36 services shall review county agency expenditures of MFIP-S 104.1 employment and training services funds at the end of the third 104.2 quarter of the first year of the biennium and each quarter after 104.3 that and may reallocate unencumbered or unexpended money 104.4 appropriated under this section to those county agencies that 104.5 can demonstrate a need for additional money. 104.6 Subd. 8. [CONTINUATION OF CERTAIN SERVICES.] At the 104.7 request of the caregiver, the county may continue to provide 104.8 case management, counseling or other support services to a 104.9 participant following the participant's achievement of the 104.10 employment goal, regardless of the participant's eligibility for 104.11 MFIP-S. 104.12 A county may expend funds for a specific employment and 104.13 training service for the duration of that service to a 104.14 participant if the funds are obligated or expended prior to the 104.15 participant losing MFIP-S eligibility. 104.16 Sec. 47. [256J.645] [INDIAN TRIBE MFIP-S EMPLOYMENT AND 104.17 TRAINING.] 104.18 Subdivision 1. [AUTHORIZATION TO ENTER INTO 104.19 AGREEMENTS.] The commissioner may enter into agreements with 104.20 federally recognized Indian tribes with a reservation in the 104.21 state to provide MFIP-S employment and training services to 104.22 members of the Indian tribe and to other caregivers who are a 104.23 part of the tribal member's MFIP-S assistance unit. For 104.24 purposes of this section, "Indian tribe" means a tribe, band, 104.25 nation, or other federally recognized group or community of 104.26 Indians. The commissioner may also enter into an agreement with 104.27 a consortium of Indian tribes providing the governing body of 104.28 each Indian tribe in the consortium complies with the provisions 104.29 of this section. 104.30 Subd. 2. [TRIBAL REQUIREMENTS.] The Indian tribe must: 104.31 (1) agree to fulfill the responsibilities provided under 104.32 the employment and training component of MFIP-S regarding 104.33 operation of MFIP-S employment and training services, as 104.34 designated by the commissioner; 104.35 (2) operate its employment and training services program 104.36 within a geographic service area not to exceed the counties 105.1 within which a border of the reservation falls; 105.2 (3) operate its program in conformity with section 13.46 105.3 and any applicable federal regulations in the use of data about 105.4 MFIP-S recipients; 105.5 (4) coordinate operation of its program with the county 105.6 agency, Job Training Partnership Act programs, and other support 105.7 services or employment-related programs in the counties in which 105.8 the tribal unit's program operates; 105.9 (5) provide financial and program participant activity 105.10 recordkeeping and reporting in the manner and using the forms 105.11 and procedures specified by the commissioner and permit 105.12 inspection of its program and records by representatives of the 105.13 state; and 105.14 (6) have the Indian tribe's employment and training service 105.15 provider certified by the commissioner of economic security, or 105.16 approved by the county. 105.17 Subd. 3. [FUNDING.] If the commissioner and an Indian 105.18 tribe are parties to an agreement under this subdivision, the 105.19 agreement may annually provide to the Indian tribe the funding 105.20 amount in clause (1) or (2): 105.21 (1) if the Indian tribe operated a tribal STRIDE program 105.22 during state fiscal year 1997, the amount to be provided is the 105.23 amount the Indian tribe received from the state for operation of 105.24 its tribal STRIDE program in state fiscal year 1997, except that 105.25 the amount provided for a fiscal year may increase or decrease 105.26 in the same proportion that the total amount of state funds 105.27 available for MFIP-S employment and training services increased 105.28 or decreased that fiscal year. No additional funds shall be 105.29 provided to the tribe under this clause for the first year of 105.30 expansion of MFIP beyond the pilot counties; or 105.31 (2) if the Indian tribe did not operate a tribal STRIDE 105.32 program during state fiscal year 1997, the commissioner may 105.33 provide to the Indian tribe for the first year of operations the 105.34 amount determined by multiplying the state allocation for MFIP-S 105.35 employment and training services to each county agency in the 105.36 Indian tribe's service delivery area by the percentage of MFIP-S 106.1 recipients in that county who were members of the Indian tribe 106.2 during the previous state fiscal year. The resulting amount 106.3 shall also be the amount that the commissioner may provide to 106.4 the Indian tribe annually thereafter through an agreement under 106.5 this subdivision, except that the amount provided for a fiscal 106.6 year may increase or decrease in the same proportion that the 106.7 total amount of state funds available for MFIP-S employment and 106.8 training services increased or decreased that fiscal year. No 106.9 additional funds shall be provided to the tribe under this 106.10 clause for the first year of expansion of MFIP beyond the pilot 106.11 counties. 106.12 Subd. 4. [COUNTY AGENCY REQUIREMENT.] Indian tribal 106.13 members receiving MFIP-S benefits and residing in the service 106.14 area of an Indian tribe operating employment and training 106.15 services under an agreement with the commissioner must be 106.16 referred by county agencies in the service area to the Indian 106.17 tribe for employment and training services. 106.18 Sec. 48. [256J.65] [THE SELF-EMPLOYMENT INVESTMENT 106.19 DEMONSTRATION PROGRAM (SEID).] 106.20 (a) A caregiver who enrolls and participates in the SEID 106.21 program as specified in section 268.95, may, at county option, 106.22 be exempted from other employment and training participation 106.23 requirements for a period of up to 24 months, except for the 106.24 school attendance requirements as specified in section 256J.54. 106.25 (b) The following income and resource considerations apply 106.26 to SEID participants: 106.27 (1) an unencumbered cash reserve fund, composed of proceeds 106.28 from a SEID business, is not counted against the grant if those 106.29 funds are reinvested in the business and the value of the 106.30 business does not exceed $3,000. The value of the business is 106.31 determined by deducting outstanding encumbrances from retained 106.32 business profit; and 106.33 (2) the purchase of capital equipment and durable goods of 106.34 an amount up to $3,000 during a 24-month project period is 106.35 allowed as a business expense. 106.36 (c) SEID participants are also eligible for employment and 107.1 training services, including child care and transportation. 107.2 Sec. 49. [256J.66] [ON-THE-JOB TRAINING.] 107.3 Subdivision 1. [ESTABLISHING THE ON-THE-JOB TRAINING 107.4 PROGRAM.] (a) County agencies may develop on-the-job training 107.5 programs for MFIP-S caregivers who are participating in 107.6 employment and training services. A county agency that chooses 107.7 to provide on-the-job training may make payments to employers 107.8 for on-the-job training costs that, during the period of the 107.9 training, must not exceed 50 percent of the wages paid by the 107.10 employer to the participant. The payments are deemed to be in 107.11 compensation for the extraordinary costs associated with 107.12 training participants under this section and in compensation for 107.13 the costs associated with the lower productivity of the 107.14 participants during training. 107.15 (b) Provision of an on-the-job training program under the 107.16 Job Training Partnership Act, in and of itself, does not qualify 107.17 as an on-the-job training program under this section. 107.18 Subd. 2. [TRAINING AND PLACEMENT.] (a) County agencies 107.19 shall limit the length of training based on the complexity of 107.20 the job and the caregiver's previous experience and training. 107.21 Placement in an on-the-job training position with an employer is 107.22 for the purpose of training and employment with the same 107.23 employer who has agreed to retain the person upon satisfactory 107.24 completion of training. 107.25 (b) Placement of any caregiver in an on-the-job training 107.26 position must be compatible with the participant's assessment 107.27 and the employability plan under section 256J.52. 107.28 Sec. 50. [256J.67] [COMMUNITY WORK EXPERIENCE.] 107.29 Subdivision 1. [ESTABLISHING THE COMMUNITY WORK EXPERIENCE 107.30 PROGRAM.] To the extent of available resources, each county 107.31 agency may establish and operate a work experience component for 107.32 MFIP-S caregivers who are participating in employment and 107.33 training services. This option for county agencies supersedes 107.34 the requirement in section 402(a)(1)(B)(iv) of the Social 107.35 Security Act that caregivers who have received assistance for 107.36 two months and who are not exempt from work requirements must 108.1 participate in a work experience program. The purpose of the 108.2 work experience component is to enhance the caregiver's 108.3 employability and self-sufficiency and to provide meaningful, 108.4 productive work activities. The county shall use this program 108.5 for an individual after exhausting all other employment 108.6 opportunities. The county agency shall not require a caregiver 108.7 to participate in the community work experience program unless 108.8 the caregiver has been given an opportunity to participate in 108.9 other work activities. 108.10 Subd. 2. [COMMISSIONER'S DUTIES.] The commissioner shall 108.11 assist counties in the design and implementation of these 108.12 components. 108.13 Subd. 3. [EMPLOYMENT OPTIONS.] (a) Work sites developed 108.14 under this section are limited to projects that serve a useful 108.15 public service such as: health, social service, environmental 108.16 protection, education, urban and rural development and 108.17 redevelopment, welfare, recreation, public facilities, public 108.18 safety, community service, services to aged or disabled 108.19 citizens, and child care. To the extent possible, the prior 108.20 training, skills, and experience of a caregiver must be 108.21 considered in making appropriate work experience assignments. 108.22 (b) Structured, supervised volunteer work with an agency or 108.23 organization, which is monitored by the county service provider, 108.24 may, with the approval of the county agency, be used as a work 108.25 experience placement. 108.26 (c) As a condition of placing a caregiver in a program 108.27 under this section, the county agency shall first provide the 108.28 caregiver the opportunity: 108.29 (1) for placement in suitable subsidized or unsubsidized 108.30 employment through participation in a job search; or 108.31 (2) for placement in suitable employment through 108.32 participation in on-the-job training, if such employment is 108.33 available. 108.34 Subd. 4. [EMPLOYMENT PLAN.] (a) The caretaker's employment 108.35 plan must include the length of time needed in the work 108.36 experience program, the need to continue job-seeking activities 109.1 while participating in work experience, and the caregiver's 109.2 employment goals. 109.3 (b) After each six months of a caregiver's participation in 109.4 a work experience job placement, and at the conclusion of each 109.5 work experience assignment under this section, the county agency 109.6 shall reassess and revise, as appropriate, the caregiver's 109.7 employment plan. 109.8 (c) A caregiver has good cause under section 256J.57, 109.9 subdivision 1, for failure to cooperate with a work experience 109.10 job placement if, in the judgment of the employment and training 109.11 service provider, the reason for failure is reasonable and 109.12 justified. 109.13 (d) The county agency shall limit the maximum number of 109.14 hours any participant may work under this section to the amount 109.15 of the transitional standard divided by the federal or 109.16 applicable state minimum wage, whichever is higher. After a 109.17 participant has been assigned to a position for nine months, the 109.18 participant may not continue in that assignment unless the 109.19 maximum number of hours a participant works is no greater than 109.20 the amount of the transitional standard divided by the rate of 109.21 pay for individuals employed in the same or similar occupations 109.22 by the same employer at the same site. This limit does not 109.23 apply if it would prevent a participant from counting toward the 109.24 federal work participation rate. 109.25 Sec. 51. [256J.68] [INJURY PROTECTION FOR WORK EXPERIENCE 109.26 PARTICIPANTS.] 109.27 Subdivision 1. [APPLICABILITY.] Payment of any claims 109.28 resulting from an alleged injury or death of a person 109.29 participating in a county or a tribal community work experience 109.30 program approved by the commissioner must be determined in 109.31 accordance with this section. This determination method applies 109.32 to work experience programs authorized by the commissioner for 109.33 persons applying for or receiving cash assistance and food 109.34 stamps, and to the Minnesota parent's fair share program and the 109.35 community service program under section 518.551, subdivision 5a, 109.36 in a county with an approved community investment program for 110.1 obligors. 110.2 Subd. 2. [INVESTIGATION OF THE CLAIM.] Claims that are 110.3 subject to this section must be investigated by the county 110.4 agency or the tribal program responsible for supervising the 110.5 work to determine whether the claimed injury occurred, whether 110.6 the claimed medical expenses are reasonable, and whether the 110.7 loss is covered by the claimant's insurance. If insurance 110.8 coverage is established, the county agency or tribal program 110.9 shall submit the claim to the appropriate insurance entity for 110.10 payment. The investigating county agency or tribal program 110.11 shall submit all valid claims, in the net amount of any 110.12 insurance payments, to the department of human services. 110.13 Subd. 3. [SUBMISSION OF CLAIM.] The commissioner shall 110.14 submit all claims for impairment compensation to the 110.15 commissioner of labor and industry. The commissioner of labor 110.16 and industry shall review all submitted claims and recommend to 110.17 the department of human services an amount of compensation 110.18 comparable to that which would be provided under the impairment 110.19 compensation schedule of section 176.101, subdivision 2a. 110.20 Subd. 4. [CLAIMS LESS THAN $1,000.] The commissioner shall 110.21 approve a claim of $1,000 or less for payment if appropriated 110.22 funds are available, if the county agency or tribal program 110.23 responsible for supervising the work has made the determinations 110.24 required by this section, and if the work program was operated 110.25 in compliance with the safety provisions of this section. The 110.26 commissioner shall pay the portion of an approved claim of 110.27 $1,000 or less that is not covered by the claimant's insurance 110.28 within three months of the date of submission. On or before 110.29 February 1 of each legislative session, the commissioner shall 110.30 submit to the appropriate committees of the senate and the house 110.31 of representatives a list of claims of $1,000 or less paid 110.32 during the preceding calendar year and shall be reimbursed by 110.33 legislative appropriation for any claims that exceed the 110.34 original appropriation provided to the commissioner to operate 110.35 this program. Any unspent money from this appropriation shall 110.36 carry over to the second year of the biennium, and any unspent 111.1 money remaining at the end of the second year shall be returned 111.2 to the state general fund. 111.3 Subd. 5. [CLAIMS MORE THAN $1,000.] On or before February 111.4 1 of each year, the commissioner shall submit to the appropriate 111.5 committees of the senate and the house of representatives a list 111.6 of claims in excess of $1,000 and a list of claims of $1,000 or 111.7 less that were submitted to but not paid by the commissioner, 111.8 together with any recommendations of appropriate compensation. 111.9 These claims shall be heard and determined by the appropriate 111.10 committees of the senate and house of representatives and, if 111.11 approved, must be paid under the legislative claims procedure. 111.12 Subd. 6. [COMPENSATION FOR CERTAIN COSTS.] Compensation 111.13 paid under this section is limited to reimbursement for 111.14 reasonable medical expenses and impairment compensation for 111.15 disability in like amounts as allowed in section 176.101, 111.16 subdivision 2a. Compensation for injuries resulting in death 111.17 shall include reasonable medical expenses and burial expenses in 111.18 addition to payment to the participant's estate in an amount up 111.19 to $200,000. No compensation shall be paid under this section 111.20 for pain and suffering, lost wages, or other benefits provided 111.21 in chapter 176. Payments made under this section shall be 111.22 reduced by any proceeds received by the claimant from any 111.23 insurance policy covering the loss. For the purposes of this 111.24 section, "insurance policy" does not include the medical 111.25 assistance program authorized under chapter 256B or the general 111.26 assistance medical care program authorized under chapter 256D. 111.27 Subd. 7. [EXCLUSIVE PROCEDURE.] The procedure established 111.28 by this section is exclusive of all other legal, equitable, and 111.29 statutory remedies against the state, its political 111.30 subdivisions, or employees of the state or its political 111.31 subdivisions. The claimant shall not be entitled to seek 111.32 damages from any state, county, tribal, or reservation insurance 111.33 policy or self-insurance program. 111.34 Subd. 8. [INVALID CLAIMS.] A claim is not valid for 111.35 purposes of this section if the county agency responsible for 111.36 supervising the work cannot verify to the commissioner: 112.1 (1) that appropriate safety training and information is 112.2 provided to all persons being supervised by the agency under 112.3 this section; and 112.4 (2) that all programs involving work by those persons 112.5 comply with federal Occupational Safety and Health 112.6 Administration and state department of labor and industry safety 112.7 standards. A claim that is not valid because of failure to 112.8 verify safety training or compliance with safety standards will 112.9 not be paid by the department of human services or through the 112.10 legislative claims process and must be heard, decided, and paid, 112.11 if appropriate, by the local government unit or tribal JOBS 112.12 program responsible for supervising the work of the claimant. 112.13 Sec. 52. [256J.69] [GRANT DIVERSION.] 112.14 Subdivision 1. [ESTABLISHING THE GRANT DIVERSION 112.15 PROGRAM.] (a) County agencies may develop grant diversion 112.16 programs for MFIP-S participants participating in employment and 112.17 training services. A county agency that chooses to provide 112.18 grant diversion may divert to an employer part or all of the 112.19 MFIP-S cash payment for the participant's assistance unit, in 112.20 compliance with federal regulations and laws. Such payments to 112.21 an employer are to subsidize employment for MFIP-S caregivers as 112.22 an alternative to public assistance payments. 112.23 (b) In addition to diverting the MFIP-S grant to the 112.24 employer, employment and training funds may be used to subsidize 112.25 the grant diversion placement. 112.26 Subd. 2. [TRAINING AND PLACEMENT.] (a) County agencies 112.27 shall limit the length of training to nine months. Placement in 112.28 a grant diversion training position with an employer is for the 112.29 purpose of training and employment with the same employer who 112.30 has agreed to retain the person upon satisfactory completion of 112.31 training. 112.32 (b) Placement of any caregiver in a grant diversion 112.33 subsidized training position must be compatible with the 112.34 assessment and the employment plan or the employability 112.35 development plan established for the recipient under section 112.36 256J.52 or 256K.03, subdivision 8. 113.1 Sec. 53. [256J.72] [NONDISPLACEMENT IN WORK ACTIVITIES.] 113.2 Subdivision 1. [NONDISPLACEMENT PROTECTION.] For job 113.3 assignments under jobs programs established under this chapter 113.4 or chapter 256, 256D, or 256K, the county agency must provide 113.5 written notification to and obtain the written concurrence of 113.6 the appropriate exclusive bargaining representatives with 113.7 respect to job duties covered under collective bargaining 113.8 agreements and ensure that no work assignment under this chapter 113.9 or chapter 256, 256D, or 256K results in: 113.10 (1) termination, layoff, or reduction of the work hours of 113.11 an employee for the purpose of hiring an individual under this 113.12 section; 113.13 (2) the hiring of an individual if any other person is on 113.14 layoff, including seasonal layoff, from the same or a 113.15 substantially equivalent job; 113.16 (3) any infringement of the promotional opportunities of 113.17 any currently employed individual; 113.18 (4) the impairment of existing contract for services of 113.19 collective bargaining agreements; or 113.20 (5) a participant filling an established unfilled position 113.21 vacancy, except for on-the-job training. 113.22 The written notification must be provided to the 113.23 appropriate exclusive bargaining representatives at least 14 113.24 days in advance of placing recipients in temporary public 113.25 service employment. The notice must include the number of 113.26 individuals involved, their work locations and anticipated hours 113.27 of work, a summary of the tasks to be performed, and a 113.28 description of how the individuals will be trained and 113.29 supervised. 113.30 Subd. 2. [DISPUTE RESOLUTION.] (a) If there is a dispute 113.31 between an exclusive bargaining representative and a county 113.32 provider or employer over whether job duties are within the 113.33 scope of a collective bargaining unit, the exclusive bargaining 113.34 representative, the county, the provider, or the employer may 113.35 petition the bureau of mediation services to determine if the 113.36 job duties are within the scope of a collective bargaining unit, 114.1 and the bureau shall render a binding decision. 114.2 (b) In the event of a dispute under this section, the 114.3 parties may: 114.4 (1) use a grievance and arbitration procedure of an 114.5 existing collective bargaining agreement to process a dispute 114.6 over whether a violation of the nondisplacement provisions has 114.7 occurred; or 114.8 (2) if no grievance and arbitration procedure is in place, 114.9 either party may submit the dispute to the bureau. The 114.10 commissioner of the bureau of mediation services shall establish 114.11 a procedure for a neutral, binding resolution of the dispute. 114.12 Subd. 3. [STATUS OF PARTICIPANT.] A participant may not 114.13 work in a temporary public service or community service job for 114.14 a public employer for more than 67 working days or 536 hours, 114.15 whichever is greater, as part of a work program established 114.16 under this chapter or chapter 256, 256D, or 256K. A participant 114.17 who exceeds the time limits in this paragraph is a public 114.18 employee, as that term is used in chapter 179A. Upon the 114.19 written request of the exclusive bargaining representative, a 114.20 county or public service employer shall make available to the 114.21 affected exclusive bargaining representative a report of hours 114.22 worked by participants in temporary public service or community 114.23 service jobs. 114.24 Sec. 54. [256J.74] [RELATIONSHIP TO OTHER PROGRAMS.] 114.25 Subdivision 1. [SOCIAL SERVICES.] The county agency shall 114.26 refer a participant for social services that are offered in the 114.27 county of financial responsibility according to the criteria 114.28 established by that county agency under Minnesota Rules, parts 114.29 9550.0010 to 9550.0092. A payment issued from title XX, child 114.30 welfare funds, or county funds in a payment month must not 114.31 restrict MFIP-S eligibility or reduce the monthly assistance 114.32 payment for that participant. 114.33 Subd. 2. [CONCURRENT ELIGIBILITY, LIMITATIONS.] A county 114.34 agency must not count an applicant or participant as a member of 114.35 more than one assistance unit in a given payment month, except 114.36 as provided in paragraphs (a) and (b). 115.1 (a) A participant who is a member of an assistance unit in 115.2 this state is eligible to be included in a second assistance 115.3 unit in the first full month that the participant leaves the 115.4 first assistance unit and lives with a second assistance unit. 115.5 (b) An applicant whose needs are met through foster care 115.6 that is reimbursed under title IV-E for the first part of an 115.7 application month is eligible to receive assistance for the 115.8 remaining part of the month in which the applicant returns 115.9 home. Title IV-E payments and assistance payments must be 115.10 considered prorated payments rather than a duplication of MFIP-S 115.11 need. 115.12 Subd. 3. [EMERGENCY ASSISTANCE, ASSISTANCE UNIT WITH A 115.13 MINOR CHILD.] An MFIP-S assistance unit with a minor child or a 115.14 pregnant woman without a minor child is eligible for emergency 115.15 assistance when the assistance unit meets the requirements in 115.16 section 256J.48, subdivision 2. 115.17 Subd. 4. [MEDICAL ASSISTANCE.] Medical assistance 115.18 eligibility for MFIP-S will be determined as described in 115.19 chapter 256B. 115.20 Sec. 55. [256J.75] [COUNTY OF FINANCIAL RESPONSIBILITY 115.21 POLICIES.] 115.22 Subdivision 1. [COUNTY OF FINANCIAL RESPONSIBILITY.] The 115.23 county of financial responsibility is the county in which a 115.24 minor child or pregnant woman lives on the date the application 115.25 is signed, unless subdivision 4 applies. When more than one 115.26 county is financially responsible for the members of an 115.27 assistance unit, financial responsibility must be assigned to a 115.28 single county beginning the first day of the calendar month 115.29 after the assistance unit members are required to be in a single 115.30 assistance unit. Financial responsibility must be assigned to 115.31 the county that was initially responsible for the assistance 115.32 unit member with the earliest date of application. The county 115.33 in which the assistance unit is currently residing becomes 115.34 financially responsible for the entire assistance unit beginning 115.35 two full calendar months after the month in which financial 115.36 responsibility was consolidated in one county. 116.1 Subd. 2. [CHANGE IN RESIDENCE.] (a) When an assistance 116.2 unit moves from one county to another and continues to receive 116.3 assistance, the new county of residence becomes the county of 116.4 financial responsibility when that assistance unit has lived in 116.5 that county in nonexcluded status for two full calendar months. 116.6 "Nonexcluded status" means the period of residence that is not 116.7 considered excluded time under section 256G.02, subdivision 6. 116.8 When a minor child moves from one county to another to reside 116.9 with a different caregiver, the caregiver in the former county 116.10 is eligible to receive assistance for that child only through 116.11 the last day of the month of the move. The caregiver in the new 116.12 county becomes eligible to receive assistance for the child the 116.13 first day of the month following the move or the date of 116.14 application, whichever is later. 116.15 (b) When an applicant moves from one county to another 116.16 while the application is pending, the county where application 116.17 first occurred is the county of financial responsibility until 116.18 the applicant has lived in the new county for two full calendar 116.19 months, unless the applicant's move is covered under section 116.20 256G.02, subdivision 6. 116.21 Subd. 3. [RESPONSIBILITY FOR INCORRECT ASSISTANCE 116.22 PAYMENTS.] A county of residence, when different from the county 116.23 of financial responsibility, will be charged by the commissioner 116.24 for the value of incorrect assistance payments and medical 116.25 assistance paid to or on behalf of a person who was not eligible 116.26 to receive that amount. Incorrect payments include payments to 116.27 an ineligible person or family resulting from decisions, 116.28 failures to act, miscalculations, or overdue recertification. 116.29 However, financial responsibility does not accrue for a county 116.30 when the recertification is overdue at the time the referral is 116.31 received by the county of residence or when the county of 116.32 financial responsibility does not act on the recommendation of 116.33 the county of residence. When federal or state law requires 116.34 that medical assistance continue after assistance ends, this 116.35 subdivision also governs financial responsibility for the 116.36 extended medical assistance. 117.1 Subd. 4. [EXCLUDED TIME.] When an applicant or participant 117.2 resides in an excluded time facility as described in section 117.3 256G.02, subdivision 6, the county that is financially 117.4 responsible for the applicant or participant is the county in 117.5 which the applicant or participant last resided outside such a 117.6 facility immediately before entering the facility. When an 117.7 applicant or participant has not resided in this state for any 117.8 time other than excluded time as defined in section 256G.02, 117.9 subdivision 6, the county that is financially responsible for 117.10 the applicant or participant is the county in which the 117.11 applicant or participant resides on the date the application is 117.12 signed. 117.13 Sec. 56. [256J.76] [COUNTY ADMINISTRATIVE AID.] 117.14 Subdivision 1. [ADMINISTRATIVE FUNCTIONS.] Beginning July 117.15 1, 1997, counties will receive federal funds from the TANF block 117.16 grant for use in supporting eligibility, fraud control, and 117.17 other related administrative functions. The federal funds 117.18 available for distribution, as determined by the commissioner, 117.19 must be an amount equal to federal administrative aid 117.20 distributed for fiscal year 1996 under titles IV-A and IV-F of 117.21 the Social Security Act in effect prior to October 1, 1996. 117.22 This amount must include the amount paid for local 117.23 collaboratives under sections 245.4932 and 256F.13, but must not 117.24 include administrative aid associated with child care under 117.25 section 119B.05, with emergency assistance intensive family 117.26 preservation services under section 256.8711, with 117.27 administrative activities as part of the employment and training 117.28 services under section 256.736, or with fraud prevention 117.29 investigation activities under section 256.983. 117.30 Subd. 2. [ALLOCATION OF COUNTY FUNDS.] The commissioner 117.31 shall determine and allocate the funds available to each county, 117.32 on a calendar year basis, proportional to the amount paid to 117.33 each county for fiscal year 1996, excluding the amount paid for 117.34 local collaboratives under sections 245.4932 and 256F.13. For 117.35 the period beginning July 1, 1997, and ending December 31, 1998, 117.36 each county shall receive 150 percent of its base year 118.1 allocation. 118.2 Subd. 3. [MONTHLY PAYMENTS TO COUNTIES.] The commissioner 118.3 shall pay counties monthly as federal funds are available. The 118.4 commissioner may certify the payments for the first three months 118.5 of a calendar year. 118.6 Subd. 4. [REPORTING REQUIREMENT.] The commissioner shall 118.7 specify requirements for reporting according to section 256.01, 118.8 subdivision 2, paragraph (17). Each county shall be reimbursed 118.9 at a rate of 50 percent of eligible expenditures up to the limit 118.10 of its allocation. 118.11 Sec. 57. [NOTICE AND REFERRAL PROCEDURES FOR DOMESTIC 118.12 VIOLENCE VICTIMS.] 118.13 The commissioner of human services shall develop procedures 118.14 for the county agencies and their contractors to identify 118.15 victims of domestic violence. The procedures must provide, at a 118.16 minimum, universal notification to all applicants and recipients 118.17 of MFIP-S that: 118.18 (1) referrals to counseling and supportive services are 118.19 available for victims of domestic violence; and 118.20 (2) victims of domestic violence are exempt from the 118.21 60-month limit on assistance while the individual is complying 118.22 with an approved safety plan, as defined in Minnesota Statutes, 118.23 section 256J.49, subdivision 11. Notification must be in 118.24 writing and orally at the time of application and 118.25 recertification, when the individual is referred to the title 118.26 IV-D child support agency, and at the beginning of any job 118.27 training or work placement assistance program. 118.28 Sec. 58. [COUNTY PERFORMANCE STANDARDS.] 118.29 (a) Beginning July 1, 1998, and each quarter thereafter, 118.30 the commissioner of human services shall inform all counties of 118.31 each county's performance on the following measures: 118.32 (1) MFIP-S caseload reduction; 118.33 (2) average placement wage rate; 118.34 (3) rate of job retention after three months; 118.35 (4) placement rate into unsubsidized jobs; and 118.36 (5) federal participation requirements as specified in 119.1 title 1 of Public Law Number 104-193 of the Personal 119.2 Responsibility and Work Opportunity Act of 1996. 119.3 (b) By January 1, 1998, the counties and the department 119.4 shall establish performance standards for each of the measures 119.5 in paragraph (a). 119.6 (c) By July 1, 1998, the counties and the department shall 119.7 develop a plan to allocate, if such sanctions occur, federal 119.8 sanctions between the state and counties resulting from a 119.9 failure to meet the performance standards specified in title 1 119.10 of Public Law Number 104-193 of the Personal Responsibility and 119.11 Work Opportunity Act of 1996. 119.12 (d) The department shall report the plan to the legislature 119.13 by October 1, 1998. 119.14 Sec. 59. [FINDINGS; CONTINGENT BENEFIT STANDARDS.] 119.15 The legislature makes the following findings: 119.16 (a) The legislature is statutorily required to balance the 119.17 state budget. 119.18 (b) The task of balancing the state budget is made 119.19 difficult in the area of the new federal welfare reform program 119.20 for needy families due to the dramatic change in program design 119.21 that this state and all other states must experience, rendering 119.22 historical data on client behavior, interstate migration, and 119.23 welfare spending patterns of dubious value. 119.24 (c) Many states are using the flexibility given to them 119.25 under the federal welfare reform bill to enact more restrictive 119.26 programs than Minnesota. 119.27 (d) Minnesota county human service agencies have reported 119.28 to the commissioner of human services verified cases of families 119.29 moving from other states to this state at least in part because 119.30 this state has higher public assistance benefits. 119.31 (e) Within the state's limited resources, the legislature 119.32 wishes to manage funds appropriated under this part to best 119.33 provide for needy Minnesota families and their children. 119.34 (f) To that end, the legislature has adopted a policy of 119.35 requiring families to be in this state for at least 30 days 119.36 before being eligible for benefits and providing families in 120.1 which no mandatory member has resided in Minnesota for the 120.2 previous 12 months a benefit based on the grant they would have 120.3 received had they applied for benefits in their previous state 120.4 of residence. 120.5 (g) Therefore, if the policy designed to make welfare 120.6 benefits a neutral factor in the decision to move to Minnesota 120.7 and to best manage the benefit appropriation for needy Minnesota 120.8 families and their children, while providing a safety net for 120.9 recent interstate migrants, is enjoined or otherwise prevented 120.10 from being implemented, the commissioner shall replace the 120.11 benefit standards in Minnesota Statutes, section 256J.24, 120.12 subdivision 5, with the following standards: 120.13 Number of Eligible People Standard 120.14 1 $228 120.15 2 $393 120.16 3 $500 120.17 4 $595 120.18 5 $679 120.19 6 $781 120.20 7 $851 120.21 8 $947 120.22 9 $1,042 120.23 10 $1,137 120.24 over 10 Add $93 per additional member 120.25 Sec. 60. [TRANSFER FUNDING.] 120.26 Effective July 1, 1997, all funding related to the child 120.27 care assistance programs under Minnesota Statutes, section 120.28 256.035, subdivision 8, is transferred to the commissioner of 120.29 children, families, and learning. 120.30 Sec. 61. [TRIBAL EMPLOYMENT AND TRAINING PROGRAM; REPORT.] 120.31 Subdivision 1. [AUTHORITY.] The commissioner of human 120.32 services, in conjunction with Indian tribes in the state, shall 120.33 develop and present to the legislature a plan for providing 120.34 state funds in support of a family assistance program 120.35 administered by Indian tribes who have a reservation in this 120.36 state and who have federal approval to operate a tribal 121.1 program. This plan must identify the primary arrangements 121.2 needed to effect tribal administration and needed funding, 121.3 including agreements with a consortium of tribes, that 121.4 accurately reflects the state funding levels for Indian people 121.5 as would otherwise be available to MFIP-S program recipients. 121.6 This plan must be developed consistent with the requirements set 121.7 forth in the Personal Responsibility and Work Opportunity 121.8 Reconciliation Act of 1996, Public Law Number 104-193, section 121.9 412(b)(1)(B). For purposes of this section, "Indian tribe" 121.10 means a tribe, band, nation, or other federally recognized group 121.11 or community of Indians. 121.12 Subd. 2. [REPORT TO THE LEGISLATURE.] The plan referred to 121.13 in subdivision 1 and any resulting proposal for legislation must 121.14 be presented to the legislature by December 15, 1997. 121.15 Subd. 3. [TRIBAL AGREEMENTS.] Once the plan in subdivision 121.16 1 is presented to and approved by the legislature and signed 121.17 into law, the commissioner is authorized to enter into 121.18 agreements with Indian tribes or consortia of tribes consistent 121.19 with the plan. 121.20 Subd. 4. [TRIBAL AND STATE COORDINATION.] The commissioner 121.21 shall consult with Indian tribes in the state when formulating 121.22 general policies regarding the implementation of the state's 121.23 public assistance program operated under title IV-A of the 121.24 Social Security Act. The commissioner shall take into 121.25 consideration circumstances affecting Indians, including 121.26 circumstances identified by Indian tribes, when designing the 121.27 state's program. The state shall provide Indians with equitable 121.28 access to assistance as provided in the Personal Responsibility 121.29 and Work Opportunity Reconciliation Act of 1996, Public Law 121.30 Number 104-193, section 402(a)(5). 121.31 Subd. 5. [EMPLOYMENT TRAINING.] Nothing in this section 121.32 precludes any Indian tribe in this state from participating in 121.33 employment and training or child care programs otherwise 121.34 available by law to Indian tribes under: 121.35 (1) the MFIP program under Minnesota Statutes, sections 121.36 256.031 to 256.0361, or its successor program; 122.1 (2) project STRIDE under Minnesota Statutes, section 122.2 256.736, or its successor program; 122.3 (3) child care programs for tribal program participants; 122.4 and 122.5 (4) the Minnesota injury protection program. 122.6 Subd. 6. [TRIBAL SOVEREIGN STATUS.] Nothing in this 122.7 section shall be construed to waive, modify, expand, or diminish 122.8 the sovereignty of federally recognized Indian tribes, nor shall 122.9 any Indian tribes be required in any way to deny their 122.10 sovereignty or waive their immunities except as mandated by 122.11 federal law as a requirement of entering into an agreement with 122.12 the state under this section. 122.13 Subd. 7. [PLANNING.] The commissioner of human services 122.14 shall assist tribes, in a collaborative effort, with the 122.15 development of the plan under subdivision 1 and efforts 122.16 associated with such development. Such efforts shall include, 122.17 but not be limited to, data collection regarding: receipt of 122.18 public assistance by Indians, unemployment rates within tribal 122.19 service delivery areas, and dissemination of information and 122.20 research. The commissioner shall provide technical assistance 122.21 to tribal welfare reform task force members and tribes regarding 122.22 the implementation and operation of public assistance programs 122.23 and assistance to tribes to develop the plan under subdivision 1. 122.24 Sec. 62. [FORECASTING FUNDS.] 122.25 For the assistance to families grants part of the budget, 122.26 the commissioner of human services shall not expend more funds 122.27 than the appropriations made available by the legislature. 122.28 Appropriations made available must include the state 122.29 appropriated funds and federal funds specified for this purpose 122.30 and other available funds transferred from other accounts as 122.31 allowed by Minnesota law. Regardless of this limitation on 122.32 expenditures, the total projected costs of this program must be 122.33 forecasted and recognized in the fund balance. 122.34 Sec. 63. [REPEALER.] 122.35 Minnesota Statutes 1996, sections 256.12, subdivisions 9, 122.36 10, 14, 15, 20, 21, 22, and 23; 256.72; 256.73; 256.7341; 123.1 256.7351; 256.7352; 256.7353; 256.7354; 256.7355; 256.7356; 123.2 256.7357; 256.7358; 256.7359; 256.736, subdivision 19; 256.7365; 123.3 256.7366; 256.7381; 256.7382; 256.7383; 256.7384; 256.7385; 123.4 256.7386; 256.7387; 256.7388; 256.74, subdivisions 1, 1a, 1b, 2, 123.5 and 6; 256.745; 256.75; 256.76; 256.78; 256.80; 256.81; 256.82; 123.6 256.84; 256.85; 256.86; 256.863; 256.871; and 256.879, are 123.7 repealed. 123.8 Sec. 64. [EFFECTIVE DATE.] 123.9 This article is effective July 1, 1997. 123.10 ARTICLE 2 123.11 PILOT PROGRAM 123.12 Section 1. [256K.01] [WORK FIRST PROGRAM.] 123.13 Subdivision 1. [CITATION.] Sections 256K.01 to 256K.08 may 123.14 be cited as the work first program. 123.15 Subd. 2. [DEFINITIONS.] As used in sections 256K.01 to 123.16 256K.08, the following words have the meanings given them. 123.17 (a) "Applicant" means an individual who has submitted a 123.18 request for assistance and has never received an MFIP-S or a 123.19 family general assistance grant through the MAXIS computer 123.20 system as a caregiver, or an applicant whose MFIP-S or family 123.21 general assistance application was denied or benefits were 123.22 terminated due to noncompliance with work first requirements. 123.23 (b) "Application date" means the date any Minnesota county 123.24 agency receives a signed and dated combined application form 123.25 Part I. 123.26 (c) "CAF" means a combined application form on which people 123.27 apply for multiple assistance programs, including: cash 123.28 assistance, refugee cash assistance, Minnesota supplemental aid, 123.29 food stamps, medical assistance, general assistance medical 123.30 care, emergency assistance, emergency medical assistance, and 123.31 emergency general assistance medical care. 123.32 (d) "Caregiver" means a parent or eligible adult, including 123.33 a pregnant woman, who is part of the assistance unit that has 123.34 applied for or is receiving an MFIP-S or family general 123.35 assistance grant. In a two-parent family, both parents are 123.36 caregivers. 124.1 (e) "Child support" means a voluntary or court-ordered 124.2 payment by absent parents in an assistance unit. 124.3 (f) "Commissioner" means the commissioner of human services. 124.4 (g) "Department" means the department of human services. 124.5 (h) "Employability development plan" or "EDP" means a plan 124.6 developed by the applicant, with advice from the employment 124.7 advisor, for the purposes of identifying an employment goal, 124.8 improving work skills through certification or education, 124.9 training or skills recertification, and which addresses barriers 124.10 to employment. 124.11 (i) "EDP status report form" means a program form on which 124.12 deferred participants indicate what has been achieved in the 124.13 participant's employability development plan and the types of 124.14 problems encountered. 124.15 (j) "Employment advisor" means a program staff member who 124.16 is qualified to assist the participant to develop a job search 124.17 or employability development plan, match the participant with 124.18 existing job openings, refer the participant to employers, and 124.19 has an extensive knowledge of employers in the area. 124.20 (k) "Financial specialist" means a program staff member who 124.21 is trained to explain the benefits offered under the program, 124.22 determine eligibility for different assistance programs, and 124.23 broker other resources from employers and the community. 124.24 (l) "Job network" means individuals that a person may 124.25 contact to learn more about particular companies, inquire about 124.26 job leads, or discuss occupational interests and expertise. 124.27 (m) "Job search allowance" means the amount of financial 124.28 assistance needed to support job search. 124.29 (n) "Job search plan" or "JSP" means the specific plan 124.30 developed by the applicant, with advice from the employment 124.31 advisor, to secure a job as soon as possible, and focus the 124.32 scope of the job search process and other activities. 124.33 (o) "JSP status report form" means a program form on which 124.34 participants indicate the number of submitted job applications, 124.35 job interviews held, jobs offered, other outcomes achieved, 124.36 problems encountered, and the total number of hours spent on job 125.1 search per week. 125.2 (p) "Participant" means a recipient who is required to 125.3 participate in the work first program. 125.4 (q) "Program" means the work first program. 125.5 (r) "Provider" means an employment and training agency 125.6 certified by the commissioner of economic security under section 125.7 268.871, subdivision 1. 125.8 (s) "Self-employment" means employment where people work 125.9 for themselves rather than an employer, are responsible for 125.10 their own work schedule, and do not have taxes or FICA withheld 125.11 by an employer. 125.12 (t) "Self-sufficiency agreement" means the agreement 125.13 between the county or its representative and the applicant that 125.14 describes the activities that the applicant must conduct and the 125.15 necessary services and aid to be furnished by the county to 125.16 enable the individual to meet the purpose of either the job 125.17 search plan or employability development plan. 125.18 (u) "Subsidized job" means a job that is partly reimbursed 125.19 by the provider for cost of wages for participants in the 125.20 program. 125.21 Subd. 3. [ESTABLISHING WORK FIRST PROGRAM.] The 125.22 commissioners of human services and economic security may 125.23 develop and establish pilot projects which require applicants 125.24 for aid under MFIP-S under chapter 256J to meet the requirements 125.25 of the work first program. The purpose of the program is to: 125.26 (1) ensure that the participant is working as early as 125.27 possible; 125.28 (2) promote greater opportunity for economic self-support, 125.29 participation, and mobility in the work force; and 125.30 (3) minimize the risk for long-term welfare dependency. 125.31 Subd. 4. [PROGRAM ADMINISTRATION.] The program must be 125.32 administered in a way that, in addition to the county agency, 125.33 other sectors in the community such as employers from the public 125.34 and private sectors, not-for-profit organizations, educational 125.35 and social service agencies, labor unions, and neighborhood 125.36 associations are involved. 126.1 Subd. 5. [PROGRAM DESIGN.] The program shall meet the 126.2 following principles: 126.3 (1) work is the primary means of economic support; 126.4 (2) the individual's potential is reviewed during the 126.5 application process to determine how to approach the job market 126.6 aggressively; 126.7 (3) public aid such as cash and medical assistance, child 126.8 care, child support assurance, and other cash benefits are used 126.9 to support intensive job search and immediate work; and 126.10 (4) maximum use is made of tax credits to supplement income. 126.11 Subd. 6. [DUTIES OF COMMISSIONER.] In addition to any 126.12 other duties imposed by law, the commissioner shall: 126.13 (1) establish the program according to sections 256K.01 to 126.14 256K.08 and allocate money as appropriate to pilot counties 126.15 participating in the program; 126.16 (2) provide systems development and staff training; 126.17 (3) accept and supervise the disbursement of any funds that 126.18 may be provided from other sources for use in the demonstration 126.19 program; and 126.20 (4) direct a study to safeguard the interests of children. 126.21 Subd. 7. [DUTIES OF COUNTY AGENCY.] The county agency 126.22 shall: 126.23 (1) collaborate with the commissioners of human services 126.24 and economic security and other agencies to develop, implement, 126.25 and evaluate the demonstration of the work first program; 126.26 (2) operate the work first program in partnership with 126.27 private and public employers, local industry councils, labor 126.28 unions, and employment, educational, and social service 126.29 agencies, according to subdivision 4; and 126.30 (3) ensure that program components such as client 126.31 orientation, immediate job search, job development, creation of 126.32 temporary public service jobs, job placements, and postplacement 126.33 follow-up are implemented according to the work first program. 126.34 Subd. 8. [DUTIES OF PARTICIPANT.] To be eligible for an 126.35 MFIP-S benefit, a participant shall cooperate with the county 126.36 agency, the provider, and the participant's employer in all 127.1 aspects of the program. 127.2 Sec. 2. [256K.02] [PROGRAM PARTICIPANTS; PROGRAM 127.3 EXPECTATIONS.] 127.4 All applicants selected for participation are expected to 127.5 meet the requirements under the work first program. Payments 127.6 for rent and utilities up to the MFIP-S benefits to which the 127.7 assistance unit is entitled will be vendor paid for as many 127.8 months as the applicant is eligible or six months, whichever 127.9 comes first. The residual amount after vendor payment, if any, 127.10 will be paid to the MFIP-S recipient, unless it is used as a 127.11 wage subsidy under section 256K.04, subdivision 2. 127.12 Sec. 3. [256K.03] [PROGRAM REQUIREMENTS.] 127.13 Subdivision 1. [NOTIFICATION OF PROGRAM.] Except for the 127.14 provisions in this section, the provisions for the MFIP-S 127.15 application process shall be followed. Within two days after 127.16 receipt of a completed combined application form, the county 127.17 agency must refer to the provider the applicant who meets the 127.18 conditions under section 256K.02, and notify the applicant in 127.19 writing of the program including the following provisions: 127.20 (1) notification that, as part of the application process, 127.21 applicants are required to attend orientation, to be followed 127.22 immediately by a job search; 127.23 (2) the program provider, the date, time, and location of 127.24 the scheduled program orientation; 127.25 (3) the procedures for qualifying for and receiving 127.26 benefits under the program; 127.27 (4) the immediate availability of supportive services, 127.28 including, but not limited to, child care, transportation, 127.29 medical assistance, and other work-related aid; and 127.30 (5) the rights, responsibilities, and obligations of 127.31 participants in the program, including, but not limited to, the 127.32 grounds for exemptions and deferrals, the consequences for 127.33 refusing or failing to participate fully, and the appeal process. 127.34 Subd. 2. [PROGRAM ORIENTATION.] The county must give a 127.35 face-to-face orientation regarding the program to the applicant 127.36 within five days after the date of application. The orientation 128.1 must be designed to inform the applicant of: 128.2 (1) the importance of locating and obtaining a job as soon 128.3 as possible; 128.4 (2) benefits to be provided to support work; 128.5 (3) the manner by which benefits shall be paid; 128.6 (4) how other supportive services such as medical 128.7 assistance, child care, transportation, and other work-related 128.8 aid shall be available to support job search and work; 128.9 (5) the consequences for failure without good cause to 128.10 comply with program requirements; and 128.11 (6) the appeal process. 128.12 Subd. 3. [JOB SEARCH PLAN; EMPLOYMENT ADVISOR; FINANCIAL 128.13 SPECIALIST.] At the end of orientation, the provider must assign 128.14 an employment advisor and a financial specialist to the 128.15 applicant. With advice from the employment advisor, the 128.16 applicant must develop a job search plan based on existing job 128.17 markets, prior employment, work experience, and transferable 128.18 work skills, unless exempt under subdivision 5. A job search 128.19 must be planned and conducted for a period of up to eight 128.20 consecutive weeks from the date of application and for at least 128.21 32 hours per week. The types of and target number of job 128.22 openings to be pursued per week must be written in the job 128.23 search plan. The following activities may be included in the 128.24 job search plan: 128.25 (1) motivational counseling; 128.26 (2) job networking or training on how to locate job 128.27 openings; 128.28 (3) development of a personal resume; and 128.29 (4) information on how to conduct job interviews and 128.30 establish a personal job network. 128.31 Following the development of the job search plan or the 128.32 employability development plan under subdivision 8, the 128.33 financial specialist must interview the applicant to determine 128.34 eligibility for and the extent of benefits under sections 128.35 256K.06 and 256K.07 to support the job search or employability 128.36 development plan. The provider must attach to the appropriate 129.1 plan the summary of the necessary enabling services and benefits 129.2 to be furnished by the provider. The provider or its 129.3 representative and the applicant must sign the plan, with its 129.4 attachment, to indicate a self-sufficiency agreement between the 129.5 provider and the participant. 129.6 Subd. 4. [IMMEDIATE JOB SEARCH.] An applicant must be 129.7 required to begin job search within seven days after the date of 129.8 application for at least 32 hours per week for up to eight 129.9 weeks, unless exempt under subdivision 5 or deferred under 129.10 subdivision 8. For an applicant who is working at least 20 129.11 hours per week, job search shall consist of 12 hours per week 129.12 for up to eight weeks. Within the first five days of job 129.13 search, the applicant is required to initiate informational 129.14 contacts with prospective employers, generate additional job 129.15 leads from the job network, review references and experiences 129.16 from previous employment, and carry out the other activities 129.17 under the job search plan developed under subdivision 3. 129.18 Subd. 5. [EXEMPTION CATEGORIES.] (a) The applicant will be 129.19 exempt from the job search requirements and development of a job 129.20 search plan and an employability development plan under 129.21 subdivisions 3, 4, and 8 if the applicant belongs to any of the 129.22 following groups: 129.23 (1) caregivers under age 20 who have not completed a high 129.24 school education and are attending high school on a full-time 129.25 basis; 129.26 (2) individuals who are age 60 or older; 129.27 (3) individuals who are suffering from a professionally 129.28 certified permanent or temporary illness, injury, or incapacity 129.29 which is expected to continue for more than 30 days and which 129.30 prevents the person from obtaining or retaining employment; 129.31 (4) caregivers whose presence in the home is needed because 129.32 of illness or incapacity of another member in the household; 129.33 (5) women who are pregnant, if it has been medically 129.34 verified that the child is expected to be born within the next 129.35 six months; 129.36 (6) caregivers or other caregiver relatives of a child 130.1 under the age of three who personally provide full-time care for 130.2 the child; 130.3 (7) individuals employed at least 30 hours per week; 130.4 (8) individuals for whom participation would require a 130.5 round trip commuting time by available transportation of more 130.6 than two hours, excluding transporting of children for child 130.7 care; 130.8 (9) individuals for whom lack of proficiency in English is 130.9 a barrier to employment, provided such individuals are 130.10 participating in an intensive program which lasts no longer than 130.11 six months and is designed to remedy their language deficiency; 130.12 (10) individuals who, because of advanced age or lack of 130.13 ability, are incapable of gaining proficiency in English, as 130.14 determined by the county social worker, shall continue to be 130.15 exempt under this subdivision and are not subject to the 130.16 requirement that they be participating in a language program; 130.17 (11) individuals under such duress that they are incapable 130.18 of participating in the program, as determined by the county 130.19 social worker; or 130.20 (12) individuals in need of refresher courses for purposes 130.21 of obtaining professional certification or licensure. 130.22 (b) In a two-parent family, only one caregiver may be 130.23 exempted under paragraph (a), clauses (4) and (6). 130.24 Subd. 6. [COUNTY DUTIES.] The county must act on the 130.25 application within 30 days of the application date. If the 130.26 applicant is not eligible, the application will be denied and 130.27 the county must notify the applicant of the denial in writing. 130.28 An applicant whose application has been denied may be allowed to 130.29 complete the job search plan; however, supportive services will 130.30 not be provided. 130.31 Subd. 7. [JOB SEARCH PLAN STATUS REPORT.] The applicant or 130.32 participant must submit a completed job search plan status 130.33 report form to the employment advisor every two weeks during the 130.34 job search process, with the first completed form due 21 days 130.35 after the date of application. 130.36 Subd. 8. [EMPLOYABILITY DEVELOPMENT PLAN.] At the 131.1 discretion and approval of the employment advisor, the applicant 131.2 may be deferred from the requirement to conduct at least 32 131.3 hours of job search per week for up to eight consecutive weeks, 131.4 if during the development of the job search plan, the applicant 131.5 is determined to: 131.6 (1) not have worked within the past 12 months and not have 131.7 a high school or a general equivalency diploma provided the 131.8 applicant agrees to develop and carry out an employability 131.9 development plan instead of job search, and concurrently work 131.10 for at least 16 hours per week in a temporary public service 131.11 job. The employability development plan must include the 131.12 employment goals and specific outcomes the participant must 131.13 achieve; 131.14 (2) be within six months of completing any post-secondary 131.15 training program, provided that the applicant agrees to develop 131.16 and carry out an employability development plan instead of a job 131.17 search, and concurrently work for a minimum number of hours per 131.18 week in a temporary public service job. The employability 131.19 development plan must include the employment goal and specific 131.20 outcomes that the participant must achieve. The applicant that 131.21 is deferred under this subdivision may choose to work in a job 131.22 other than a public service job for a minimum number of hours 131.23 per week rather than in a temporary public service job. For 131.24 individuals who are participating in an educational program 131.25 under this clause, and who are attending school full time as 131.26 determined by the institution, there is no work requirement. 131.27 For individuals participating in an educational program on a 131.28 part-time basis as determined by the institution, the minimum 131.29 number of hours that a participant must work shall be decreased 131.30 as the participant increases the number of credit hours taken, 131.31 except that the participant shall not be required to work more 131.32 than eight hours per week. 131.33 During vacation periods of one month or more, the 16-hour 131.34 per week minimum work requirement shall apply. The applicant 131.35 may be deferred for up to six months. At the end of the 131.36 deferment period, the participant must develop a job search plan 132.1 and conduct at least 32 hours of job search per week for up to 132.2 eight consecutive weeks, and submit reports as required under 132.3 subdivisions 3 and 4; or 132.4 (3) be in treatment for chemical dependency, be a victim of 132.5 domestic abuse, or be homeless, provided that the applicant 132.6 agrees to develop an employability development plan instead of a 132.7 job search plan, and immediately follow through with the 132.8 activities in the employability development plan. The 132.9 employability development plan must include specific outcomes 132.10 that the applicant must achieve for the duration of the 132.11 employability development plan and activities which are needed 132.12 to address the issues identified. Under this clause, the 132.13 applicant may be deferred for up to eight weeks. 132.14 Subd. 9. [EDP STATUS REPORT.] The participant who is 132.15 deferred from job search under subdivision 8 must submit a 132.16 completed employability development plan status report form to 132.17 the employment advisor every 14 days as long as the participant 132.18 continues to be deferred, with the first completed form due 21 132.19 days after the date of application. 132.20 Subd. 10. [JOB OFFER.] The participant must not refuse any 132.21 job offer, provided that the job is within the participant's 132.22 physical and mental abilities, pays hourly gross wages of not 132.23 less than the applicable state or federal minimum wage, and 132.24 meets health and safety standards set by federal, state, and 132.25 county agencies. If a job is offered, the participant must 132.26 inform the provider immediately to redetermine eligibility for 132.27 and extent of benefits and services to support work. To enhance 132.28 job retention, the provider may provide services such as 132.29 motivational counseling or on-site problem solving for up to six 132.30 months. The participant who has completed at least six months 132.31 of work in a nonsubsidized job shall be encouraged to 132.32 participate in a training program that would improve the 132.33 participant's ability to obtain a job that pays a higher wage. 132.34 Subd. 11. [DUTY TO REPORT.] The participant must 132.35 immediately inform the provider regarding any changes related to 132.36 the participant's employment status. 133.1 Subd. 12. [REQUIREMENT TO WORK IN A TEMPORARY PUBLIC 133.2 SERVICE JOB.] (a) If after the completion of the maximum eight 133.3 weeks of job search the participant has failed to secure a 133.4 nonsubsidized or a subsidized job for at least 32 hours per 133.5 week, or does not earn a net income from self-employment that is 133.6 equal to at least the MFIP-S monthly grant for the household 133.7 size, whichever is applicable, the participant is required to 133.8 work in a temporary public service job for up to 67 working days 133.9 for (1) at least 32 hours per week, or (2) a period equivalent 133.10 to the result of dividing the MFIP-S grant amount which the 133.11 participant would otherwise receive, whichever is applicable, by 133.12 the federal hourly minimum wage, or applicable hourly state 133.13 minimum wage, or the hourly rate of pay for individuals employed 133.14 in the same occupation at the site, whichever is highest. If 133.15 the result is more than 128 hours per month, the participant's 133.16 requirement to work in a temporary public service job shall not 133.17 be more than 32 hours per week. 133.18 (b) Within seven days from the date of application, the 133.19 participant that is deferred under subdivision 8, clause (1) or 133.20 (2), and is participating in an educational program on a 133.21 part-time basis must work in a temporary public service job as 133.22 required under subdivision 8, clause (2). 133.23 (c) The provider shall strive to match the profile of the 133.24 participant with the needs of the employers that are 133.25 participating in a temporary jobs program under section 256K.05. 133.26 Sec. 4. [256K.04] [JOB DEVELOPMENT AND SUBSIDY.] 133.27 Subdivision 1. [JOB INVENTORY.] The provider must develop 133.28 an inventory of job openings including full-time, part-time, 133.29 permanent, temporary or seasonal, and training positions in 133.30 partnership with private and public employers, local industry 133.31 councils, and employment agencies. To the extent possible, the 133.32 inventory must include specific information regarding job 133.33 openings, must be updated on a weekly basis, and must be 133.34 available to all participants on a daily basis. 133.35 Subd. 2. [JOB SUBSIDY.] The county may use all or part of 133.36 the MFIP-S or family general assistance benefit as a subsidy to 134.1 employers for the purpose of providing work experience or 134.2 training to the participant who has completed the job search 134.3 plan, provided that: 134.4 (1) the job to be subsidized is permanent and full time, 134.5 and pays an hourly rate of at least $6 per hour; 134.6 (2) the employer agrees to retain the participant after 134.7 satisfactory completion of the work experience or training 134.8 period; and 134.9 (3) the participant has first tried to secure a 134.10 nonsubsidized job by following the job search plan. 134.11 The subsidy may be available for up to six months. 134.12 Sec. 5. [256K.05] [TEMPORARY JOBS PROGRAM.] 134.13 Subdivision 1. [PROGRAM ESTABLISHED.] The provider must 134.14 establish and operate a program to provide temporary jobs to 134.15 participants who, after eight weeks of job search, are not hired 134.16 into a nonsubsidized or a subsidized job, or are deferred under 134.17 section 256K.03, subdivision 8. The temporary jobs to be 134.18 created under this section must be public service jobs that 134.19 serve a useful public service such as: health, social service, 134.20 environmental protection, education, urban and rural development 134.21 and redevelopment, welfare, recreation, public facilities, 134.22 public safety, community service, services to the aged or 134.23 disabled citizens, and child care. 134.24 Subd. 2. [ASSIGNMENT TO TEMPORARY PUBLIC SERVICE 134.25 JOBS.] The provider must assign the participant who (1) is 134.26 within completion of the required eight weeks of job search and 134.27 has failed to secure a nonsubsidized or a subsidized job for at 134.28 least 32 hours per week, or (2) does not earn a net income from 134.29 self-employment that is equal to at least the MFIP-S monthly 134.30 grant for the household size, whichever is applicable, to a 134.31 temporary public service job. The assignment must be made seven 134.32 days before the end of the job search and be based on section 134.33 256K.03, subdivision 12. The participant that is deferred under 134.34 section 256K.03, subdivision 8, will be assigned by the provider 134.35 to a temporary public service job within seven days after the 134.36 application. 135.1 Subd. 3. [PARTICIPANT'S STATUS.] The participant who is 135.2 working in a temporary public service job under this section is 135.3 not considered an employee for the purposes of unemployment 135.4 insurance compensation, retirement, or civil service laws, and 135.5 shall not perform work ordinarily performed by a public employee. 135.6 Subd. 4. [CONTINUOUS JOB SEARCH REQUIREMENT.] At the 135.7 discretion of the provider, the participant who is working in a 135.8 temporary public service job under section 256K.03, subdivision 135.9 12, may be required to continue to look for a job for up to 135.10 eight hours per week in addition to working. The participant 135.11 who is working at least 20 hours per week but less than 32 hours 135.12 per week in a nonsubsidized or subsidized job may be required to 135.13 look for a job for up to 20 hours per week in lieu of work in 135.14 the temporary public service job so that the total hours of work 135.15 and job search is not more than 40 hours per week. 135.16 Subd. 5. [EXCUSED ABSENCES.] The participant who is 135.17 working in a temporary public service job may be allowed excused 135.18 absences from the assigned temporary job site up to eight hours 135.19 per month. For purposes of this subdivision, "excused absence" 135.20 means absence due to temporary illness or injury of the 135.21 caregiver or a member of the caregiver's family, the 135.22 unavailability of licensed child care or unavailability of 135.23 transportation needed to go to and from the work site, a job 135.24 interview, or a nonmedical emergency. For purposes of this 135.25 subdivision, "emergency" means a sudden, unexpected occurrence 135.26 or situation of a serious or urgent nature that requires action. 135.27 Subd. 6. [MOVE TO A DIFFERENT COUNTY.] If the applicant or 135.28 recipient who is required to participate in the work first 135.29 program moves to a different county in this state, the benefits 135.30 and enabling services agreed upon in the self-sufficiency 135.31 agreement shall be provided by the pilot county where the 135.32 applicant or recipient originated, provided the move was part of 135.33 the job search or employability development plan. If the 135.34 applicant or recipient is moving to a different county for 135.35 failure to comply with the requirements of the work first 135.36 program, the applicant or recipient will not be eligible for 136.1 MFIP-S in this state for at least six months from the date of 136.2 the move. 136.3 Sec. 6. [256K.06] [TRANSITIONAL BENEFITS TO SUPPORT WORK; 136.4 RENT AND UTILITIES VENDOR PAYMENT.] 136.5 Payments for rent and utilities up to the amount of MFIP-S 136.6 benefits to which the assistance unit is entitled shall be 136.7 provided in the form of vendor payments for as many months as 136.8 the applicant is eligible or six months, whichever comes first. 136.9 The residual amount after vendor payment, if any, will be paid 136.10 to the MFIP-S recipient, unless it is used as a wage subsidy 136.11 under section 256K.04, subdivision 2. This provision shall 136.12 apply to all applicants including those meeting the exemption 136.13 categories under section 256K.03, subdivision 5, or deferral 136.14 categories under section 256K.03, subdivision 8. To the extent 136.15 needed, a job search allowance shall be provided for up to eight 136.16 weeks to cover expenses related to the job search. Before the 136.17 job search allowance is issued, it must be approved by the 136.18 employment advisor and financial specialist, and clearly 136.19 described in the job search plan. 136.20 Sec. 7. [256K.07] [ELIGIBILITY FOR FOOD STAMPS, MEDICAL 136.21 ASSISTANCE, AND CHILD CARE.] 136.22 The participant shall be treated as an MFIP-S recipient for 136.23 food stamps, medical assistance, and child care eligibility 136.24 purposes. The participant who leaves the program as a result of 136.25 increased earnings from employment shall be eligible for 136.26 transitional medical assistance and child care without regard to 136.27 MFIP-S receipt in three of the six months preceding 136.28 ineligibility. 136.29 Sec. 8. [256K.08] [SANCTIONS AND APPEAL PROCESS.] 136.30 Subdivision 1. [GOOD CAUSE.] (a) For purposes of this 136.31 subdivision, "good cause" means absence due to temporary illness 136.32 or injury of the participant or a member of the participant's 136.33 family, the unavailability of licensed child care or 136.34 unavailability of transportation needed to attend orientation or 136.35 conduct job search, or a nonmedical emergency as defined under 136.36 section 256K.05, subdivision 5. 137.1 (b) The applicant who is required, but fails, without good 137.2 cause, to participate in orientation, complete the job search 137.3 plan or employability development plan, and comply with the job 137.4 search requirements under section 256K.03, prior to being 137.5 eligible for MFIP-S shall be denied MFIP-S benefits. The 137.6 applicant will not be eligible for MFIP-S benefits in this state 137.7 for at least six months. 137.8 (c) If, after receiving a written warning from the county, 137.9 the participant fails, without good cause, to conduct at least 137.10 32 hours of job search per week in any given two-week period, 137.11 the participant will be immediately required to work for at 137.12 least 16 hours per week in a temporary public service job. The 137.13 required 32 hours per week of job search will be reduced to 16 137.14 hours. 137.15 (d) If the participant who is deferred under section 137.16 256K.03, subdivision 8, fails to comply with the activities 137.17 described in the employability development plan, the participant 137.18 will lose the deferment status, provided that the participant 137.19 has received at least two written warnings from the provider. 137.20 (e) If the participant refuses to work in a temporary 137.21 public service job, or is terminated from a temporary public 137.22 service job for failure to work, benefits to the assistance unit 137.23 shall be terminated and the participant shall not be eligible 137.24 for aid under the MFIP-S program for at least six months from 137.25 the date of refusal or termination. If the participant, before 137.26 completing at least four consecutive months of employment, 137.27 voluntarily quits or is terminated from a nonsubsidized or a 137.28 subsidized job, the participant shall immediately be assigned to 137.29 work in a temporary public service job for at least 32 hours per 137.30 week for up to 67 working days unless the participant is hired 137.31 or rehired into a nonsubsidized or subsidized job. 137.32 Subd. 2. [NOTICE OF SANCTIONS.] If the county determines 137.33 that the participant has failed or refused without good cause, 137.34 as defined in subdivision 1, to cooperate with the program 137.35 requirements, the county shall inform the participant in writing 137.36 of its intent to impose an applicable sanction listed under 138.1 subdivision 1 and the opportunity to have a conciliation 138.2 conference upon request and within five days of the notice 138.3 before a sanction is imposed. 138.4 Sec. 9. [FUNDING.] 138.5 Subdivision 1. [LEVERAGING GRANT AMOUNT TO SECURE OTHER 138.6 FUNDS.] The county agency or the provider, in cooperation with 138.7 the department, may leverage the grant amount to secure other 138.8 funds from employers, foundations, and the community for the 138.9 purpose of developing additional components to benefit children 138.10 and improve the program. 138.11 Subd. 2. [EMPLOYER REIMBURSEMENT.] The employer shall be 138.12 reimbursed for wages paid to participants under Minnesota 138.13 Statutes, section 256K.04, subdivision 2. 138.14 Sec. 10. [EFFECTIVE DATE.] 138.15 This article is effective the day following final enactment. 138.16 ARTICLE 3 138.17 ASSISTANCE PROGRAM CHANGES 138.18 Section 1. Minnesota Statutes 1996, section 256.01, 138.19 subdivision 2, is amended to read: 138.20 Subd. 2. [SPECIFIC POWERS.] Subject to the provisions of 138.21 section 241.021, subdivision 2, the commissioner of human 138.22 services shall: 138.23 (1) Administer and supervise all forms of public assistance 138.24 provided for by state law and other welfare activities or 138.25 services as are vested in the commissioner. Administration and 138.26 supervision of human services activities or services includes, 138.27 but is not limited to, assuring timely and accurate distribution 138.28 of benefits, completeness of service, and quality program 138.29 management. In addition to administering and supervising human 138.30 services activities vested by law in the department, the 138.31 commissioner shall have the authority to: 138.32 (a) require county agency participation in training and 138.33 technical assistance programs to promote compliance with 138.34 statutes, rules, federal laws, regulations, and policies 138.35 governing human services; 138.36 (b) monitor, on an ongoing basis, the performance of county 139.1 agencies in the operation and administration of human services, 139.2 enforce compliance with statutes, rules, federal laws, 139.3 regulations, and policies governing welfare services and promote 139.4 excellence of administration and program operation; 139.5 (c) develop a quality control program or other monitoring 139.6 program to review county performance and accuracy of benefit 139.7 determinations; 139.8 (d) require county agencies to make an adjustment to the 139.9 public assistance benefits issued to any individual consistent 139.10 with federal law and regulation and state law and rule and to 139.11 issue or recover benefits as appropriate; 139.12 (e) delay or deny payment of all or part of the state and 139.13 federal share of benefits and administrative reimbursement 139.14 according to the procedures set forth in section 256.017; and 139.15 (f) make contracts with and grants to public and private 139.16 agencies and organizations, both profit and nonprofit, and 139.17 individuals, using appropriated funds. 139.18 (2) Inform county agencies, on a timely basis, of changes 139.19 in statute, rule, federal law, regulation, and policy necessary 139.20 to county agency administration of the programs. 139.21 (3) Administer and supervise all child welfare activities; 139.22 promote the enforcement of laws protecting handicapped, 139.23 dependent, neglected and delinquent children, and children born 139.24 to mothers who were not married to the children's fathers at the 139.25 times of the conception nor at the births of the children; 139.26 license and supervise child-caring and child-placing agencies 139.27 and institutions; supervise the care of children in boarding and 139.28 foster homes or in private institutions; and generally perform 139.29 all functions relating to the field of child welfare now vested 139.30 in the state board of control. 139.31 (4) Administer and supervise all noninstitutional service 139.32 to handicapped persons, including those who are visually 139.33 impaired, hearing impaired, or physically impaired or otherwise 139.34 handicapped. The commissioner may provide and contract for the 139.35 care and treatment of qualified indigent children in facilities 139.36 other than those located and available at state hospitals when 140.1 it is not feasible to provide the service in state hospitals. 140.2 (5) Assist and actively cooperate with other departments, 140.3 agencies and institutions, local, state, and federal, by 140.4 performing services in conformity with the purposes of Laws 140.5 1939, chapter 431. 140.6 (6) Act as the agent of and cooperate with the federal 140.7 government in matters of mutual concern relative to and in 140.8 conformity with the provisions of Laws 1939, chapter 431, 140.9 including the administration of any federal funds granted to the 140.10 state to aid in the performance of any functions of the 140.11 commissioner as specified in Laws 1939, chapter 431, and 140.12 including the promulgation of rules making uniformly available 140.13 medical care benefits to all recipients of public assistance, at 140.14 such times as the federal government increases its participation 140.15 in assistance expenditures for medical care to recipients of 140.16 public assistance, the cost thereof to be borne in the same 140.17 proportion as are grants of aid to said recipients. 140.18 (7) Establish and maintain any administrative units 140.19 reasonably necessary for the performance of administrative 140.20 functions common to all divisions of the department. 140.21 (8) Act as designated guardian of both the estate and the 140.22 person of all the wards of the state of Minnesota, whether by 140.23 operation of law or by an order of court, without any further 140.24 act or proceeding whatever, except as to persons committed as 140.25 mentally retarded. 140.26 (9) Act as coordinating referral and informational center 140.27 on requests for service for newly arrived immigrants coming to 140.28 Minnesota. 140.29 (10) The specific enumeration of powers and duties as 140.30 hereinabove set forth shall in no way be construed to be a 140.31 limitation upon the general transfer of powers herein contained. 140.32 (11) Establish county, regional, or statewide schedules of 140.33 maximum fees and charges which may be paid by county agencies 140.34 for medical, dental, surgical, hospital, nursing and nursing 140.35 home care and medicine and medical supplies under all programs 140.36 of medical care provided by the state and for congregate living 141.1 care under the income maintenance programs. 141.2 (12) Have the authority to conduct and administer 141.3 experimental projects to test methods and procedures of 141.4 administering assistance and services to recipients or potential 141.5 recipients of public welfare. To carry out such experimental 141.6 projects, it is further provided that the commissioner of human 141.7 services is authorized to waive the enforcement of existing 141.8 specific statutory program requirements, rules, and standards in 141.9 one or more counties. The order establishing the waiver shall 141.10 provide alternative methods and procedures of administration, 141.11 shall not be in conflict with the basic purposes, coverage, or 141.12 benefits provided by law, and in no event shall the duration of 141.13 a project exceed four years. It is further provided that no 141.14 order establishing an experimental project as authorized by the 141.15 provisions of this section shall become effective until the 141.16 following conditions have been met: 141.17 (a) The proposed comprehensive plan, including estimated 141.18 project costs and the proposed order establishing the waiver, 141.19 shall be filed with the secretary of the senate and chief clerk 141.20 of the house of representatives at least 60 days prior to its 141.21 effective date. 141.22 (b) The secretary of health, education, and welfare of the 141.23 United States has agreed, for the same project, to waive state 141.24 plan requirements relative to statewide uniformity. 141.25 (c) A comprehensive plan, including estimated project 141.26 costs, shall be approved by the legislative advisory commission 141.27 and filed with the commissioner of administration. 141.28 (13) In accordance with federal requirements, establish 141.29 procedures to be followed by local welfare boards in creating 141.30 citizen advisory committees, including procedures for selection 141.31 of committee members. 141.32 (14) Allocate federal fiscal disallowances or sanctions 141.33 which are based on quality control error rates for the aid to 141.34 families with dependent children, medical assistance, or food 141.35 stamp program in the following manner: 141.36 (a) One-half of the total amount of the disallowance shall 142.1 be borne by the county boards responsible for administering the 142.2 programs. For the medical assistance and AFDC programs, 142.3 disallowances shall be shared by each county board in the same 142.4 proportion as that county's expenditures for the sanctioned 142.5 program are to the total of all counties' expenditures for the 142.6 AFDC and medical assistance programs. For the food stamp 142.7 program, sanctions shall be shared by each county board, with 50 142.8 percent of the sanction being distributed to each county in the 142.9 same proportion as that county's administrative costs for food 142.10 stamps are to the total of all food stamp administrative costs 142.11 for all counties, and 50 percent of the sanctions being 142.12 distributed to each county in the same proportion as that 142.13 county's value of food stamp benefits issued are to the total of 142.14 all benefits issued for all counties. Each county shall pay its 142.15 share of the disallowance to the state of Minnesota. When a 142.16 county fails to pay the amount due hereunder, the commissioner 142.17 may deduct the amount from reimbursement otherwise due the 142.18 county, or the attorney general, upon the request of the 142.19 commissioner, may institute civil action to recover the amount 142.20 due. 142.21 (b) Notwithstanding the provisions of paragraph (a), if the 142.22 disallowance results from knowing noncompliance by one or more 142.23 counties with a specific program instruction, and that knowing 142.24 noncompliance is a matter of official county board record, the 142.25 commissioner may require payment or recover from the county or 142.26 counties, in the manner prescribed in paragraph (a), an amount 142.27 equal to the portion of the total disallowance which resulted 142.28 from the noncompliance, and may distribute the balance of the 142.29 disallowance according to paragraph (a). 142.30 (15) Develop and implement special projects that maximize 142.31 reimbursements and result in the recovery of money to the 142.32 state. For the purpose of recovering state money, the 142.33 commissioner may enter into contracts with third parties. Any 142.34 recoveries that result from projects or contracts entered into 142.35 under this paragraph shall be deposited in the state treasury 142.36 and credited to a special account until the balance in the 143.1 account reaches $1,000,000. When the balance in the account 143.2 exceeds $1,000,000, the excess shall be transferred and credited 143.3 to the general fund. All money in the account is appropriated 143.4 to the commissioner for the purposes of this paragraph. 143.5 (16)Have the authority to make direct payments to143.6facilities providing shelter to women and their children143.7pursuant to section 256D.05, subdivision 3. Upon the written143.8request of a shelter facility that has been denied payments143.9under section 256D.05, subdivision 3, the commissioner shall143.10review all relevant evidence and make a determination within 30143.11days of the request for review regarding issuance of direct143.12payments to the shelter facility. Failure to act within 30 days143.13shall be considered a determination not to issue direct payments.143.14(17)Have the authority to establish and enforce the 143.15 following county reporting requirements: 143.16 (a) The commissioner shall establish fiscal and statistical 143.17 reporting requirements necessary to account for the expenditure 143.18 of funds allocated to counties for human services programs. 143.19 When establishing financial and statistical reporting 143.20 requirements, the commissioner shall evaluate all reports, in 143.21 consultation with the counties, to determine if the reports can 143.22 be simplified or the number of reports can be reduced. 143.23 (b) The county board shall submit monthly or quarterly 143.24 reports to the department as required by the commissioner. 143.25 Monthly reports are due no later than 15 working days after the 143.26 end of the month. Quarterly reports are due no later than 30 143.27 calendar days after the end of the quarter, unless the 143.28 commissioner determines that the deadline must be shortened to 143.29 20 calendar days to avoid jeopardizing compliance with federal 143.30 deadlines or risking a loss of federal funding. Only reports 143.31 that are complete, legible, and in the required format shall be 143.32 accepted by the commissioner. 143.33 (c) If the required reports are not received by the 143.34 deadlines established in clause (b), the commissioner may delay 143.35 payments and withhold funds from the county board until the next 143.36 reporting period. When the report is needed to account for the 144.1 use of federal funds and the late report results in a reduction 144.2 in federal funding, the commissioner shall withhold from the 144.3 county boards with late reports an amount equal to the reduction 144.4 in federal funding until full federal funding is received. 144.5 (d) A county board that submits reports that are late, 144.6 illegible, incomplete, or not in the required format for two out 144.7 of three consecutive reporting periods is considered 144.8 noncompliant. When a county board is found to be noncompliant, 144.9 the commissioner shall notify the county board of the reason the 144.10 county board is considered noncompliant and request that the 144.11 county board develop a corrective action plan stating how the 144.12 county board plans to correct the problem. The corrective 144.13 action plan must be submitted to the commissioner within 45 days 144.14 after the date the county board received notice of noncompliance. 144.15 (e) The final deadline for fiscal reports or amendments to 144.16 fiscal reports is one year after the date the report was 144.17 originally due. If the commissioner does not receive a report 144.18 by the final deadline, the county board forfeits the funding 144.19 associated with the report for that reporting period and the 144.20 county board must repay any funds associated with the report 144.21 received for that reporting period. 144.22 (f) The commissioner may not delay payments, withhold 144.23 funds, or require repayment under paragraph (c) or (e) if the 144.24 county demonstrates that the commissioner failed to provide 144.25 appropriate forms, guidelines, and technical assistance to 144.26 enable the county to comply with the requirements. If the 144.27 county board disagrees with an action taken by the commissioner 144.28 under paragraph (c) or (e), the county board may appeal the 144.29 action according to sections 14.57 to 14.69. 144.30 (g) Counties subject to withholding of funds under 144.31 paragraph (c) or forfeiture or repayment of funds under 144.32 paragraph (e) shall not reduce or withhold benefits or services 144.33 to clients to cover costs incurred due to actions taken by the 144.34 commissioner under paragraph (c) or (e). 144.35(18)(17) Allocate federal fiscal disallowances or 144.36 sanctions for audit exceptions when federal fiscal disallowances 145.1 or sanctions are based on a statewide random sample for the 145.2 foster care program under title IV-E of the Social Security Act, 145.3 United States Code, title 42, in direct proportion to each 145.4 county's title IV-E foster care maintenance claim for that 145.5 period. 145.6 Sec. 2. Minnesota Statutes 1996, section 256.031, is 145.7 amended by adding a subdivision to read: 145.8 Subd. 1b. [USE OF STATE AUTHORITY AFTER REPEAL.] For 145.9 purposes of sections 256.031 to 256.0361 and 256.047, the 145.10 provisions of law under Minnesota Statutes 1996, sections 256.72 145.11 to 256.87 and sections 256D.01 to 256D.21, remain in effect 145.12 after repeal until March 31, 1998. 145.13 Sec. 3. Minnesota Statutes 1996, section 256.031, is 145.14 amended by adding a subdivision to read: 145.15 Subd. 6. [END OF FIELD TRIALS.] Upon agreement with the 145.16 federal government, the field trials of the Minnesota family 145.17 investment plan will end March 31, 1998. Families in the 145.18 comparison group under section 256.031, subdivision 3, paragraph 145.19 (d)(i), receiving aid to families with dependent children under 145.20 sections 256.72 to 256.87 in effect until October 1, 1997, and 145.21 STRIDE services under section 256.736 will continue in those 145.22 programs until March 31, 1998. After March 31, 1998, families 145.23 that cease receiving assistance under the Minnesota family 145.24 investment plan and comparison families that cease receiving 145.25 assistance under AFDC and STRIDE who are eligible for the 145.26 statewide Minnesota family investment plan, medical assistance, 145.27 general assistance medical care, or the food stamp program shall 145.28 be placed with their consent on the programs for which they are 145.29 eligible. 145.30 Sec. 4. Minnesota Statutes 1996, section 256.033, 145.31 subdivision 1, is amended to read: 145.32 Subdivision 1. [ELIGIBILITY CONDITIONS.] (a) A family is 145.33 entitled to assistance under the Minnesota family investment 145.34 plan if the family is assigned to a test group in the evaluation 145.35 as provided in section 256.031, subdivision 3, paragraph (d), 145.36 and: 146.1 (1) the family meets the definition of assistance unit 146.2 under section 256.032, subdivision 1a; 146.3 (2) the family's resources not excluded under subdivision 3 146.4 do not exceed $2,000; 146.5 (3) the family can verify citizenship or lawful resident 146.6 alien status; and 146.7 (4) the family provides or applies for a social security 146.8 number for each member of the family receiving assistance under 146.9 the family investment plan. 146.10 (b) A family is eligible for the family investment plan if 146.11 the net income is less than the transitional standard as defined 146.12 in section 256.032, subdivision 13, for that size and 146.13 composition of family. In determining available net income, the 146.14 provisions in subdivision 2 shall apply. 146.15 (c) Upon application, a family is initially eligible for 146.16 the family investment plan if the family's gross income does not 146.17 exceed the applicable transitional standard of assistance for 146.18 that family as defined under section 256.032, subdivision 13, 146.19 after deducting: 146.20 (1) 18 percent to cover taxes; and 146.21 (2) actual dependent care costs up to the maximum 146.22 disregarded under United States Code, title 42, section 146.23 602(a)(8)(A)(iii); and146.24(3) $50 of child support collected in that month. 146.25 (d) A family can remain eligible for the program if: 146.26 (1) it meets the conditions in subdivision 1a; and 146.27 (2) its income is below the transitional standard in 146.28 section 256.032, subdivision 13, allowing for income exclusions 146.29 in subdivision 2 and after applying the family investment plan 146.30 treatment of earnings under subdivision 1a. 146.31 Sec. 5. Minnesota Statutes 1996, section 256.033, 146.32 subdivision 1a, is amended to read: 146.33 Subd. 1a. [TREATMENT OF INCOME FOR THE PURPOSES OF 146.34 CONTINUED ELIGIBILITY.] To help families during their transition 146.35 from the Minnesota family investment plan to self-sufficiency, 146.36 the following income supports are available: 147.1 (a) The $30 and one-third and $90 disregards allowed under 147.2 section 256.74, subdivision 1, and the 20 percent earned income 147.3 deduction allowed under the federal Food Stamp Act of 1977, as 147.4 amended, are replaced with a single disregard of not less than 147.5 35 percent of gross earned income to cover taxes and other 147.6 work-related expenses and to reward the earning of income. This 147.7 single disregard is available for the entire time a family 147.8 receives assistance through the Minnesota family investment plan. 147.9 (b) The dependent care deduction, as prescribed under 147.10 section 256.74, subdivision 1, and United States Code, title 7, 147.11 section 2014(e), is replaced for families with earned income who 147.12 need assistance with dependent care with an entitlement to a 147.13 dependent care subsidy from money appropriated for the Minnesota 147.14 family investment plan. 147.15 (c) The family wage level, as defined in section 256.032, 147.16 subdivision 8, allows families to supplement earned income with 147.17 assistance received through the Minnesota family investment 147.18 plan. If, after earnings are adjusted according to the 147.19 disregard described in paragraph (a), earnings have raised 147.20 family income to a level equal to or greater than the family 147.21 wage level, the amount of assistance received through the 147.22 Minnesota family investment plan must be reduced. 147.23(d) The first $50 of any timely support payment for a month147.24received by the public agency responsible for child support147.25enforcement shall be paid to the family and disregarded in147.26determining eligibility and the amount of assistance in147.27accordance with United States Code, title 42, sections147.28602(a)(8)(A)(vi) and 657(b)(1). This paragraph applies147.29regardless of whether the caregiver is in transitional status,147.30is exempt from developing or complying with the terms of a147.31family support agreement, or has had a sanction imposed under147.32subdivision 3.147.33 Sec. 6. Minnesota Statutes 1996, section 256.736, 147.34 subdivision 3a, is amended to read: 147.35 Subd. 3a. [PARTICIPATION.] (a)Except as provided under147.36paragraphs (b) and (c),Participation in employment and training 148.1 services under this section is limited to the following 148.2 recipients: 148.3 (1) caretakers who are required to participate in a job 148.4 search under subdivision 14; 148.5 (2) custodial parents who are subject to the school 148.6 attendance or case management participation requirements under 148.7 subdivision 3b; and 148.8 (3)caretakers whose participation in employment and148.9training services began prior to May 1, 1990, if the caretaker's148.10AFDC eligibility has not been interrupted for 30 days or more148.11and the caretaker's employability development plan has not been148.12completed;148.13(4) recipients who are members of a family in which the148.14youngest child is within two years of being ineligible for AFDC148.15due to age;148.16(5) custodial parents under the age of 24 who: (i) have148.17not completed a high school education and who, at the time of148.18application for AFDC, were not enrolled in high school or in a148.19high school equivalency program; or (ii) have had little or no148.20work experience in the preceding year;148.21(6) recipients who have received AFDC for 36 or more months148.22out of the last 60 months;148.23(7) recipients who are participants in the self-employment148.24investment demonstration project under section 268.95; and148.25(8) recipients who participate in the new chance research148.26and demonstration project under contract with the department of148.27human servicesafter assuring the availability of employment and 148.28 training services for recipients identified under clauses (1) 148.29 and (2), and to the extent of available resources, the county 148.30 agency may accept any other AFDC recipient into employment and 148.31 training services under this section. 148.32 (b)If the commissioner determines that participation of148.33persons listed in paragraph (a) in employment and training148.34services is insufficient either to meet federal performance148.35targets or to fully utilize funds appropriated under this148.36section, the commissioner may, after notifying the chairs of the149.1senate family services committee, the house health and human149.2services committee, the family services division of the senate149.3family services and health care committees, and the human149.4services division of the house health and human services149.5committee, permit additional groups of recipients to participate149.6until the next meeting of the legislative advisory commission,149.7after which the additional groups may continue to enroll for149.8participation unless the legislative advisory commission149.9disapproves the continued enrollment. The commissioner shall149.10allow participation of additional groups in the following order149.11only as needed to meet performance targets or fully utilize149.12funding for employment and training services under this section:149.13(1) recipients who have received 24 or more months of AFDC149.14out of the previous 48 months; and149.15(2) recipients who have not completed a high school149.16education or a high school equivalency program.149.17(c) To the extent of money appropriated specifically for149.18this paragraph, the commissioner may permit AFDC caretakers who149.19are not eligible for participation in employment and training149.20services under the provisions of paragraph (a) or (b) to149.21participate. Money must be allocated to county agencies based149.22on the county's percentage of participants statewide in services149.23under this section in the prior calendar year. Caretakers must149.24be selected on a first-come, first-served basis from a waiting149.25list of caretakers who volunteer to participate. The149.26commissioner may, on a quarterly basis, reallocate unused149.27allocations to county agencies that have sufficient volunteers.149.28If funding under this paragraph is discontinued in future fiscal149.29years, caretakers who began participating under this paragraph149.30must be deemed eligible under paragraph (a), clause (3).149.31(d)Participants who are eligible and enroll in the STRIDE 149.32 program under one of the categories of this subdivision are 149.33 required to cooperate with the assessment and employability plan 149.34 development and to meet the terms of their employability plan. 149.35 Failure to comply, without good cause, shall result in the 149.36 imposition of sanctions as specified in subdivision 4, clause 150.1 (6). 150.2 Sec. 7. Minnesota Statutes 1996, section 256.74, 150.3 subdivision 1, is amended to read: 150.4 Subdivision 1. [AMOUNT.] The amount of assistance which 150.5 shall be granted to or on behalf of any dependent child and 150.6 parent or other needy eligible relative caring for the dependent 150.7 child shall be determined by the county agencyin accordance150.8withaccording to rules promulgated by the commissioner and 150.9 shall be sufficient, when added to all other income and support 150.10 available to the child, to provide the child with a reasonable 150.11 subsistence compatible with decency and health. To the extent 150.12 permissible under federal law, an eligible relative caretaker or 150.13 parent shall have the option to include in the assistance unit 150.14 the needs, income, and resources of the following essential 150.15 persons who are not otherwise eligible for AFDC in effect until 150.16 October 1, 1997, because they do not qualify as a caretaker or 150.17 as a dependent child: 150.18 (1) a parent or relative caretaker's spouse and 150.19 stepchildren; or 150.20 (2) blood or legally adopted relatives who are under the 150.21 age of 18 or under the age of 19 years who are regularly 150.22 attending as a full-time student, and are expected to complete 150.23 before or during the month of their 19th birthday, a high school 150.24 or secondary level course of vocational or technical training 150.25 designed to prepare students for gainful employment. The amount 150.26 shall be based on the method of budgeting required in Public Law 150.27 Number 97-35, section 2315, United States Code, title 42, 150.28 section 602, as amended and federal regulations at Code of 150.29 Federal Regulations, title 45, section 233. Nonrecurring lump 150.30 sum income received byan AFDCa family receiving AFDC in effect 150.31 until October 1, 1997, must be budgeted in the normal 150.32 retrospective cycle. When the family's income, after 150.33 application of the applicable disregards, exceeds the need 150.34 standard for the family because of receipt of earned or unearned 150.35 lump sum income, the family will be ineligible for the full 150.36 number of months derived by dividing the sum of the lump sum 151.1 income and other income by the monthly need standard for a 151.2 family of that size. Any income remaining from this calculation 151.3 is income in the first month following the period of 151.4 ineligibility. The first month of ineligibility is the payment 151.5 month that corresponds with the budget month in which the lump 151.6 sum income was received. For purposes of applying the lump sum 151.7 provision, family includes those persons defined in the Code of 151.8 Federal Regulations, title 45, section 233.20(a)(3)(ii)(F). A 151.9 period of ineligibility must be shortened when the standard of 151.10 need increases and the amount the family would have received 151.11 also changes, an amount is documented as stolen, an amount is 151.12 unavailable because a member of the family left the household 151.13 with that amount and has not returned, an amount is paid by the 151.14 family during the period of ineligibility to cover a cost that 151.15 would otherwise qualify for emergency assistance, or the family 151.16 incurs and pays for medical expenses which would have been 151.17 covered by medical assistance if eligibility existed. In making 151.18 its determination the county agency shall disregard the 151.19 following from family income: 151.20 (1) all the earned income of each dependent child applying 151.21 for AFDC in effect until October 1, 1997, if the child is a 151.22 full-time student and all of the earned income of each dependent 151.23 child receiving AFDC in effect until October 1, 1997, who is a 151.24 full-time student or is a part-time student who is not a 151.25 full-time employee. A student is one who is attending a school, 151.26 college, or university, or a course of vocational or technical 151.27 training designed to fit students for gainful employment and 151.28 includes a participant in the Job Corps program under the Job 151.29 Training Partnership Act (JTPA). The county agency shall also 151.30 disregard all income of each dependent child applying for or 151.31 receiving AFDC in effect until October 1, 1997, when the income 151.32 is derived from a program carried out under JTPA, except that 151.33 disregard of earned income may not exceed six months per 151.34 calendar year; 151.35 (2) all educational assistance, except the county agency 151.36 shall count graduate student teaching assistantships, 152.1 fellowships, and other similar paid work as earned income and, 152.2 after allowing deductions for any unmet and necessary 152.3 educational expenses, shall count scholarships or grants awarded 152.4 to graduate students that do not require teaching or research as 152.5 unearned income; 152.6 (3) the first $90 of each individual's earned income. For 152.7 self-employed persons, the expenses directly related to 152.8 producing goods and services and without which the goods and 152.9 services could not be produced shall be disregarded 152.10pursuantaccording to rules promulgated by the commissioner; 152.11 (4) thirty dollars plus one-third of each individual's 152.12 earned income for individuals found otherwise eligible to 152.13 receive aid or who have received aid in one of the four months 152.14 before the month of application. With respect to any month, the 152.15 county welfare agency shall not disregard under this clause any 152.16 earned income of any person who has: (a) reduced earned income 152.17 without good cause within 30 days preceding any month in which 152.18 an assistance payment is made; (b) refused without good cause to 152.19 accept an offer of suitable employment; (c) left employment or 152.20 reduced earnings without good cause and applied for assistance 152.21 so as to be able later to return to employment with the 152.22 advantage of the income disregard; or (d) failed without good 152.23 cause to make a timely report of earned incomein accordance152.24withaccording to rules promulgated by the commissioner of human 152.25 services. Persons who are already employed and who apply for 152.26 assistance shall have their needs computed with full account 152.27 taken of their earned and other income. If earned and other 152.28 income of the family is less than need, as determined on the 152.29 basis of public assistance standards, the county agency shall 152.30 determine the amount of the grant by applying the disregard of 152.31 income provisions. The county agency shall not disregard earned 152.32 income for persons in a family if the total monthly earned and 152.33 other income exceeds their needs, unless for any one of the four 152.34 preceding months their needs were met in whole or in part by a 152.35 grant payment. The disregard of $30 and one-third of earned152.36income in this clause shall be applied to the individual's153.1income for a period not to exceed four consecutive months. Any153.2month in which the individual loses this disregard because of153.3the provisions of subclauses (a) to (d) shall be considered as153.4one of the four months. An additional $30 work incentive must153.5be available for an eight-month period beginning in the month153.6following the last month of the combined $30 and one-third work153.7incentive. This period must be in effect whether or not the153.8person has earned income or is eligible for AFDC . To again153.9qualify for the earned income disregards under this clause, the153.10individual must not be a recipient of aid for a period of 12153.11consecutive months. When an assistance unit becomes ineligible153.12for aid due to the fact that these disregards are no longer153.13applied to income, the assistance unit shall be eligible for153.14medical assistance benefits for a 12-month period beginning with153.15the first month of AFDC ineligibility; 153.16 (5) an amount equal to the actual expenditures for the care 153.17 of each dependent child or incapacitated individual living in 153.18 the same home and receiving aid, not to exceed: (a) $175 for 153.19 each individual age two and older, and $200 for each individual 153.20 under the age of two. The dependent care disregard must be 153.21 applied after all other disregards under this subdivision have 153.22 been applied; 153.23 (6)the first $50 per assistance unit of the monthly153.24support obligation collected by the support and recovery (IV-D)153.25unit. The first $50 of periodic support payments collected by153.26the public authority responsible for child support enforcement153.27from a person with a legal obligation to pay support for a153.28member of the assistance unit must be paid to the assistance153.29unit within 15 days after the end of the month in which the153.30collection of the periodic support payments occurred and must be153.31disregarded when determining the amount of assistance. A review153.32of a payment decision under this clause must be requested within153.3330 days after receiving the notice of collection of assigned153.34support or within 90 days after receiving the notice if good153.35cause can be shown for not making the request within the 30-day153.36limit;154.1(7)that portion of an insurance settlement earmarked and 154.2 used to pay medical expenses, funeral and burial costs, or to 154.3 repair or replace insured property; and 154.4(8)(7) all earned income tax credit payments received by 154.5 the family as a refund of federal income taxes or made as 154.6 advance payments by an employer. 154.7 All payments madepursuantaccording to a court order for 154.8 the support of children not living in the assistance unit's 154.9 household shall be disregarded from the income of the person 154.10 with the legal obligation to pay support, provided that, if 154.11 there has been a change in the financial circumstances of the 154.12 person with the legal obligation to pay support since the 154.13 support order was entered, the person with the legal obligation 154.14 to pay support has petitioned for a modification of the support 154.15 order. 154.16 Sec. 8. Minnesota Statutes 1996, section 256.82, 154.17 subdivision 2, is amended to read: 154.18 Subd. 2. [FOSTER CARE MAINTENANCE PAYMENTS.] 154.19 Notwithstanding subdivision 1, for the purposes of foster care 154.20 maintenance payments under Title IV-E of the federal Social 154.21 Security Act, United States Code, title 42, sections 670 to 676, 154.22 during the period beginning July 1, 1985, and ending December 154.23 31, 1985, the county paying the maintenance costs shall be 154.24 reimbursed for the costs from those federal funds available for 154.25 that purpose together with an amount of state funds equal to a 154.26 percentage of the difference between the total cost and the 154.27 federal funds made available for payment. This percentage shall 154.28 not exceed the percentage specified in subdivision 1 for the aid 154.29 to families with dependent children program in effect until 154.30 October 1, 1997. In the event that the state appropriation for 154.31 this purpose is less than the state percentage set in 154.32 subdivision 1, the reimbursement shall be ratably reduced to the 154.33 county. Beginning January 1, 1986, for the purpose of foster 154.34 care maintenance payments under Title IV-E of the Social 154.35 Security Act, United States Code, title 42, sections 670 to 676, 154.36 the county paying the maintenance costs must be reimbursed for 155.1 the costs from the federal money available for the 155.2 purpose. Beginning July 1, 1997, for the purposes of 155.3 determining a child's eligibility under title IV-E of the Social 155.4 Security Act, the placing agency shall use AFDC requirements in 155.5 effect on June 1, 1995. 155.6 Sec. 9. Minnesota Statutes 1996, section 256.9354, is 155.7 amended by adding a subdivision to read: 155.8 Subd. 8. [SPONSOR'S INCOME AND RESOURCES DEEMED 155.9 AVAILABLE.] When determining eligibility for any federal or 155.10 state benefits under sections 256.9351 to 256.9363 and 256.9366 155.11 to 256.9369, the income and resources of all noncitizens shall 155.12 be deemed to include their sponsors' income and resources as 155.13 defined in the Personal Responsibility and Work Opportunity 155.14 Reconciliation Act of 1996, title IV, Public Law Number 104-193, 155.15 sections 421 and 422. 155.16 Sec. 10. Minnesota Statutes 1996, section 256B.055, 155.17 subdivision 3, is amended to read: 155.18 Subd. 3. [AFDC FAMILIES.] Medical assistance may be paid 155.19 for a person who is eligible for or receiving, or who would be 155.20 eligible for, except for excess income or assets, public 155.21 assistance under theaid to families with dependent children155.22programstate's AFDC plan in effect as of July 16, 1996, as 155.23 required by the Personal Responsibility and Work Opportunity 155.24 Reconciliation Act of 1996 (PRWORA), Public Law Number 104-193. 155.25 Sec. 11. Minnesota Statutes 1996, section 256B.055, is 155.26 amended by adding a subdivision to read: 155.27 Subd. 3a. [MFIP-S FAMILIES.] Beginning October 1, 1997, or 155.28 upon receipt of federal approval if later, medical assistance 155.29 may be paid for a person receiving public assistance under the 155.30 MFIP-S program. 155.31 Sec. 12. Minnesota Statutes 1996, section 256B.055, is 155.32 amended by adding a subdivision to read: 155.33 Subd. 3b. [FAMILIES FORMERLY ELIGIBLE FOR AFDC.] Beginning 155.34 October 1, 1997, or upon receipt of federal approval if later, 155.35 medical assistance may be paid for a person who would have been 155.36 eligible for public assistance under the income and resource 156.1 standards and deprivation requirements, or who would have been 156.2 eligible but for excess income or assets, under the state's AFDC 156.3 plan in effect as of July 16, 1996, as required by the Personal 156.4 Responsibility and Work Opportunity Reconciliation Act of 1996 156.5 (PRWORA), Public Law Number 104-193. 156.6 Sec. 13. Minnesota Statutes 1996, section 256B.055, 156.7 subdivision 5, is amended to read: 156.8 Subd. 5. [PREGNANT WOMEN; DEPENDENT UNBORN CHILD.] Medical 156.9 assistance may be paid for a pregnant woman who has written 156.10 verification of a positive pregnancy test from a physician or 156.11 licensed registered nurse, who meets the other eligibility 156.12 criteria of this section and who would be categorically eligible 156.13 for assistance under theaid to families with dependent children156.14programstate's AFDC plan in effect as of July 16, 1996, as 156.15 required by the Personal Responsibility and Work Opportunity 156.16 Reconciliation Act of 1996 (PRWORA), Public Law Number 104-193, 156.17 if the child had been born and was living with the woman. For 156.18 purposes of this subdivision, a woman is considered pregnant for 156.19 60 days postpartum. 156.20 Sec. 14. Minnesota Statutes 1996, section 256B.056, 156.21 subdivision 1a, is amended to read: 156.22 Subd. 1a. [INCOME AND ASSETS GENERALLY.] Unless 156.23 specifically required by state law or rule or federal law or 156.24 regulation, the methodologies used in counting income and assets 156.25 to determine eligibility for medical assistance for persons 156.26 whose eligibility category is based on blindness, disability, or 156.27 age of 65 or more years, the methodologies for the supplemental 156.28 security income program shall be used, except that payments made 156.29pursuantaccording to a court order for the support of children 156.30 shall be excluded from income in an amount not to exceed the 156.31 difference between the applicable income standard used in the 156.32 state's medical assistance program for aged, blind, and disabled 156.33 persons and the applicable income standard used in the state's 156.34 medical assistance program for families with children. 156.35 Exclusion of court-ordered child support payments is subject to 156.36 the condition that if there has been a change in the financial 157.1 circumstances of the person with the legal obligation to pay 157.2 support since the support order was entered, the person with the 157.3 legal obligation to pay support has petitioned for modification 157.4 of the support order. For families and children, which includes 157.5 all other eligibility categories, the methodologiesfor the aid157.6to families with dependent children program under section 256.73157.7 under the state's AFDC plan in effect as of July 16, 1996, as 157.8 required by the Personal Responsibility and Work Opportunity 157.9 Reconciliation Act of 1996 (PRWORA), Public Law Number 104-193, 157.10 shall be used. Effective upon federal approval, in-kind 157.11 contributions to, and payments made on behalf of, a recipient, 157.12 by an obligor, in satisfaction of or in addition to a temporary 157.13 or permanent order for child support or maintenance, shall be 157.14 considered income to the recipient. For these purposes, a 157.15 "methodology" does not include an asset or income standard, or 157.16 accounting method, or method of determining effective dates. 157.17 Sec. 15. Minnesota Statutes 1996, section 256B.056, 157.18 subdivision 3, is amended to read: 157.19 Subd. 3. [ASSET LIMITATIONS.] To be eligible for medical 157.20 assistance, a person must not individually own more than $3,000 157.21 in assets, or if a member of a household with two family 157.22 members,(husband and wife, or parent and child), the household 157.23 must not own more than $6,000 in assets, plus $200 for each 157.24 additional legal dependent. In addition to these maximum 157.25 amounts, an eligible individual or family may accrue interest on 157.26 these amounts, but they must be reduced to the maximum at the 157.27 time of an eligibility redetermination. The accumulation of the 157.28 clothing and personal needs allowancepursuantaccording to 157.29 section 256B.35 must also be reduced to the maximum at the time 157.30 of the eligibility redetermination. The value of assets that 157.31 are not considered in determining eligibility for medical 157.32 assistance is the value of those assetsthat are excluded by the157.33aid to families with dependent children programexcluded under 157.34 the AFDC state plan as of July 16, 1996, as required by the 157.35 Personal Responsibility and Work Opportunity Reconciliation Act 157.36 of 1996 (PRWORA), Public Law Number 104-193, for families and 158.1 children, and the supplemental security income program for aged, 158.2 blind, and disabled persons, with the following exceptions: 158.3 (a) Household goods and personal effects are not considered. 158.4 (b) Capital and operating assets of a trade or business 158.5 that the local agency determines are necessary to the person's 158.6 ability to earn an income are not considered. 158.7 (c) Motor vehicles are excluded to the same extent excluded 158.8 by the supplemental security income program. 158.9 (d) Assets designated as burial expenses are excluded to 158.10 the same extent excluded by the supplemental security income 158.11 program. 158.12 Sec. 16. Minnesota Statutes 1996, section 256B.056, 158.13 subdivision 4, is amended to read: 158.14 Subd. 4. [INCOME.] To be eligible for medical assistance, 158.15 a person must not have, or anticipate receiving, semiannual 158.16 income in excess of 120 percent of the income standards by 158.17 family size usedinunder the aid to families with dependent 158.18 childrenprogramstate plan as of July 16, 1996, as required by 158.19 the Personal Responsibility and Work Opportunity Reconciliation 158.20 Act of 1996 (PRWORA), Public Law Number 104-193, except that 158.21 families and children may have an income up to 133-1/3 percent 158.22 of the AFDC income standard. In computing income to determine 158.23 eligibility of persons who are not residents of long-term care 158.24 facilities, the commissioner shall disregard increases in income 158.25 as required by Public Law Numbers 94-566, section 503; 99-272; 158.26 and 99-509. Veterans aid and attendance benefits are considered 158.27 income to the recipient. 158.28 Sec. 17. Minnesota Statutes 1996, section 256B.057, 158.29 subdivision 1, is amended to read: 158.30 Subdivision 1. [PREGNANT WOMEN AND INFANTS.] (a) An infant 158.31 less than one year of age or a pregnant woman who has written 158.32 verification of a positive pregnancy test from a physician or 158.33 licensed registered nurse, is eligible for medical assistance if 158.34 countable family income is equal to or less than 275 percent of 158.35 the federal poverty guideline for the same family size. For 158.36 purposes of this subdivision, "countable family income" means 159.1 the amount of income considered available using the methodology 159.2 of the AFDC program under the state's AFDC plan as of July 16, 159.3 1996, as required by the Personal Responsibility and Work 159.4 Opportunity Reconciliation Act of 1996 (PRWORA), Public Law 159.5 Number 104-193, except for the earned income disregard and 159.6 employment deductions. An amount equal to the amount of earned 159.7 income exceeding 275 percent of the federal poverty guideline, 159.8 up to a maximum of the amount by which the combined total of 185 159.9 percent of the federal poverty guideline plus the earned income 159.10 disregards and deductions of the AFDC program under the state's 159.11 AFDC plan as of July 16, 1996, as required by the Personal 159.12 Responsibility and Work Opportunity Reconciliation Act of 1996 159.13 (PRWORA), Public Law Number 104-193, exceeds 275 percent of the 159.14 federal poverty guideline will be deducted for pregnant women 159.15 and infants less than one year of age. Eligibility for a 159.16 pregnant woman or infant less than one year of age under this 159.17 subdivision must be determined without regard to asset standards 159.18 established in section 256B.056, subdivision 3. 159.19 (b) An infant born on or after January 1, 1991, to a woman 159.20 who was eligible for and receiving medical assistance on the 159.21 date of the child's birth shall continue to be eligible for 159.22 medical assistance without redetermination until the child's 159.23 first birthday, as long as the child remains in the woman's 159.24 household. 159.25 Sec. 18. Minnesota Statutes 1996, section 256B.057, 159.26 subdivision 1b, is amended to read: 159.27 Subd. 1b. [PREGNANT WOMEN AND INFANTS; EXPANSION.] (a) 159.28 This subdivision supersedes subdivision 1 as long as the 159.29 Minnesota health care reform waiver remains in effect. When the 159.30 waiver expires, the commissioner of human services shall publish 159.31 a notice in the State Register and notify the revisor of 159.32 statutes. An infant less than two years of age or a pregnant 159.33 woman who has written verification of a positive pregnancy test 159.34 from a physician or licensed registered nurse, is eligible for 159.35 medical assistance if countable family income is equal to or 159.36 less than 275 percent of the federal poverty guideline for the 160.1 same family size. For purposes of this subdivision, "countable 160.2 family income" means the amount of income considered available 160.3 using the methodology of the AFDC program under the state's AFDC 160.4 plan as of July 16, 1996, as required by the Personal 160.5 Responsibility and Work Opportunity Reconciliation Act of 1996 160.6 (PRWORA), Public Law Number 104-193, except for the earned 160.7 income disregard and employment deductions. An amount equal to 160.8 the amount of earned income exceeding 275 percent of the federal 160.9 poverty guideline, up to a maximum of the amount by which the 160.10 combined total of 185 percent of the federal poverty guideline 160.11 plus the earned income disregards and deductions of the AFDC 160.12 program under the state's AFDC plan as of July 16, 1996, as 160.13 required by the Personal Responsibility and Work Opportunity 160.14 Reconciliation Act of 1996 (PRWORA), Public Law Number 104-193, 160.15 exceeds 275 percent of the federal poverty guideline will be 160.16 deducted for pregnant women and infants less than two years of 160.17 age. Eligibility for a pregnant woman or infant less than two 160.18 years of age under this subdivision must be determined without 160.19 regard to asset standards established in section 256B.056, 160.20 subdivision 3. 160.21 (b) An infant born on or after January 1, 1991, to a woman 160.22 who was eligible for and receiving medical assistance on the 160.23 date of the child's birth shall continue to be eligible for 160.24 medical assistance without redetermination until the child's 160.25 second birthday, as long as the child remains in the woman's 160.26 household. 160.27 Sec. 19. Minnesota Statutes 1996, section 256B.057, 160.28 subdivision 2b, is amended to read: 160.29 Subd. 2b. [NO ASSET TEST FOR CHILDREN AND THEIR PARENTS; 160.30 EXPANSION.] This subdivision supersedes subdivision 2a as long 160.31 as the Minnesota health care reform waiver remains in effect. 160.32 When the waiver expires, this subdivision expires and the 160.33 commissioner of human services shall publish a notice in the 160.34 State Register and notify the revisor of statutes. Eligibility 160.35 for medical assistance for a person under age 21, and the 160.36 person's parents or relative caretakers as definedin the aid to161.1families with dependent children program according to chapter161.2256, who are eligible under section 256B.055, subdivision161.33under the state's AFDC plan in effect as of July 16, 1996, as 161.4 required by the Personal Responsibility and Work Opportunity 161.5 Reconciliation Act of 1996 (PRWORA), Public Law Number 104-193, 161.6 and who live in the same household as the person eligible under 161.7 age 21, must be determined without regard to asset standards 161.8 established in section 256B.056. 161.9 Sec. 20. Minnesota Statutes 1996, section 256B.06, 161.10 subdivision 4, is amended to read: 161.11 Subd. 4. [CITIZENSHIP REQUIREMENTS.] Eligibility for 161.12 medical assistance is limited to citizens of the United 161.13 Statesand aliens lawfully admitted for permanent residence or161.14otherwise permanently residing in the United States under the161.15color of law. Aliens who are seeking legalization under the161.16Immigration Reform and Control Act of 1986, Public Law Number161.1799-603, who are under age 18, over age 65, blind, disabled, or161.18Cuban or Haitian, and who meet the eligibility requirements of161.19medical assistance under subdivision 1 and sections 256B.055 to161.20256B.062 are eligible to receive medical assistance. Pregnant161.21women who are aliens seeking legalization under the Immigration161.22Reform and Control Act of 1986, Public Law Number 99-603, and161.23who meet the eligibility requirements of medical assistance161.24under subdivision 1 are eligible for payment of care and161.25services through the period of pregnancy and six weeks161.26postpartum. Payment shall also be made for care and services161.27that are furnished to an alien, regardless of immigration161.28status, who otherwise meets the eligibility requirements of this161.29section if such care and services are necessary for the161.30treatment of an emergency medical condition, except for organ161.31transplants and related care and services. For purposes of this161.32subdivision, the term "emergency medical condition" means a161.33medical condition, including labor and delivery, that if not161.34immediately treated could cause a person physical or mental161.35disability, continuation of severe pain, or death., qualified 161.36 noncitizens as defined in this subdivision, and other persons 162.1 residing lawfully in the United States. 162.2 (a) "Qualified noncitizen" means a person who meets one of 162.3 the following immigration criteria: 162.4 (1) admitted for lawful permanent residence according to 162.5 United States Code, title 8; 162.6 (2) admitted to the United States as a refugee according to 162.7 United States Code, title 8, section 1157; 162.8 (3) granted asylum according to United States Code, title 162.9 8, section 1158; 162.10 (4) granted withholding of deportation according to United 162.11 States Code, title 8, section 1253(h); 162.12 (5) paroled for a period of at least one year according to 162.13 United States Code, title 8, section 1182(d)(5); 162.14 (6) granted conditional entrant status according to United 162.15 States Code, title 8, section 1153(a)(7); or 162.16 (7) determined to be a battered noncitizen by the United 162.17 States Attorney General according to the Illegal Immigration 162.18 Reform and Immigrant Responsibility Act of 1996, title V of the 162.19 Omnibus Consolidated Appropriations Bill, Public Law Number 162.20 104-200. 162.21 (b) All qualified noncitizens who were residing in the 162.22 United States before August 22, 1996, who otherwise meet the 162.23 eligibility requirements of chapter 256B, are eligible for 162.24 medical assistance with federal financial participation. 162.25 (c) Qualified noncitizens who entered the United States on 162.26 or after August 22, 1996, and who otherwise meet the eligibility 162.27 requirements of chapter 256B, are eligible for medical 162.28 assistance as follows: 162.29 (1) Persons in this category are eligible for medical 162.30 assistance with federal financial participation through November 162.31 30, 1996. 162.32 (2) Beginning December 1, 1996, these persons are 162.33 ineligible for medical assistance with federal participation for 162.34 five years unless they meet one of the following criteria: 162.35 (i) refugees admitted to the United States according to 162.36 United States Code, title 8, section 1157; 163.1 (ii) persons granted asylum according to United States 163.2 Code, title 8, section 1158; 163.3 (iii) persons granted withholding of deportation according 163.4 to United States code, title 8, section 1253(h); 163.5 (iv) veterans of the United States Armed Forces with an 163.6 honorable discharge for a reason other than noncitizen status, 163.7 their spouses and minor children; or 163.8 (v) persons on active duty in the United States Armed 163.9 Forces, other than for training, their spouses and minor 163.10 children. 163.11 (3) Beginning December 1, 1996, persons who are ineligible 163.12 for medical assistance with federal financial participation are 163.13 eligible for medical assistance without federal financial 163.14 participation as described in paragraph (h). 163.15 (d) Noncitizens who are not qualified noncitizens as 163.16 defined in paragraph (a), who are lawfully residing in the 163.17 United States and who otherwise meet the eligibility 163.18 requirements of chapter 256B, are eligible for medical 163.19 assistance as follows: 163.20 (1) Persons who were medical assistance recipients on 163.21 August 22, 1996, are eligible for medical assistance with 163.22 federal financial participation through December 31, 1996. 163.23 (2) Beginning January 1, 1997, persons described in clause 163.24 (1) are eligible for medical assistance without federal 163.25 financial participation as described in paragraph (h). 163.26 (3) Beginning December 1, 1996, persons residing in the 163.27 United States prior to August 22, 1996, who were not receiving 163.28 medical assistance and persons who arrived on or after August 163.29 22, 1996, are eligible for medical assistance without federal 163.30 financial participation as described in paragraph (h). 163.31 (4) Nonimmigrants are eligible for federal or state 163.32 benefits provided in paragraphs (f) and (g). For purposes of 163.33 this subdivision, a nonimmigrant is a person in one of the 163.34 classes listed in United States Code, title 8, section 163.35 1101(a)(15). 163.36 (e) When determining eligibility for any federal or state 164.1 benefits under this subdivision, the income and resources of all 164.2 noncitizens shall be deemed to include their sponsors' income 164.3 and resources as required under the Personal Responsibility and 164.4 Work Opportunity Reconciliation Act of 1996, title IV, Public 164.5 Law Number 104-193, sections 421 and 422. 164.6 (f) Payment shall also be made for care and services that 164.7 are furnished to noncitizens, regardless of immigration status, 164.8 who otherwise meet the eligibility requirements of chapter 256B, 164.9 if such care and services are necessary for the treatment of an 164.10 emergency medical condition, except for organ transplants and 164.11 related care and services and routine prenatal care. For 164.12 purposes of this subdivision, the term "emergency medical 164.13 condition" means a medical condition that meets the requirements 164.14 of United States Code, title 42, section 1396b(v). 164.15 (g) Pregnant noncitizens who are undocumented or 164.16 nonimmigrants, who otherwise meet the eligibility requirements 164.17 of chapter 256B, are eligible for medical assistance payment 164.18 without federal financial participation for care and services 164.19 through the period of pregnancy and 60 days postpartum, except 164.20 for labor and delivery. 164.21 (h) Qualified noncitizens as described in paragraph (c), 164.22 and all other noncitizens lawfully residing in the United States 164.23 as described in paragraph (d), who are ineligible for medical 164.24 assistance with federal financial participation and, who 164.25 otherwise meet the eligibility requirements of chapter 256B and 164.26 of this paragraph, are eligible for medical assistance without 164.27 federal financial participation. Qualified noncitizens as 164.28 described in paragraph (c) are only eligible for medical 164.29 assistance without federal financial participation for five 164.30 years from their date of entry into the United States. As a 164.31 condition of continuing eligibility, all other noncitizens 164.32 lawfully residing in the United States as described in paragraph 164.33 (d), must cooperate with the Immigration and Naturalization 164.34 Service to pursue any applicable immigration status, including 164.35 citizenship, that would qualify them for medical assistance with 164.36 federal financial participation. 165.1 (i) The commissioner shall submit to the legislature by 165.2 December 31, 1998, a report on the number of recipients and cost 165.3 of coverage of care and services made according to paragraphs 165.4 (g) and (h). 165.5 Sec. 21. Minnesota Statutes 1996, section 256B.062, is 165.6 amended to read: 165.7 256B.062 [CONTINUED ELIGIBILITY.] 165.8 Medical assistance may be paid for persons who receivedaid165.9to families with dependent childrenbenefits under the state's 165.10 AFDC plan in effect as of July 16, 1996, as required by the 165.11 Personal Responsibility and Work Opportunity Reconciliation Act 165.12 of 1996 (PRWORA), Public Law Number 104-193, in at least three 165.13 of the six months preceding the month in which the person became 165.14 ineligible foraid to families with dependent childrenbenefits 165.15 under the state's AFDC plan in effect as of July 16, 1996, as 165.16 required by the Personal Responsibility and Work Opportunity 165.17 Reconciliation Act of 1996 (PRWORA), Public Law Number 104-193, 165.18 if the ineligibility was due to an increase in hours of 165.19 employment or employment income or due to the loss of an earned 165.20 income disregard. A person who is eligible for extended medical 165.21 assistance is entitled to six months of assistance without 165.22 reapplication, unless the assistance unit ceases to include a 165.23 dependent child. For a person under 21 years of age, medical 165.24 assistance may not be discontinued within the six-month period 165.25 of extended eligibility until it has been determined that the 165.26 person is not otherwise eligible for medical assistance. 165.27 Medical assistance may be continued for an additional six months 165.28 if the person meets all requirements for the additional six 165.29 months, according to Title XIX of the Social Security Act, as 165.30 amended by section 303 of the Family Support Act of 1988, Public 165.31 Law Number 100-485. 165.32 Sec. 22. [256B.0635] [CONTINUED ELIGIBILITY IN SPECIAL 165.33 CIRCUMSTANCES.] 165.34 Subdivision 1. [INCREASED EMPLOYMENT.] Beginning October 165.35 1, 1997, or upon federal approval if later, medical assistance 165.36 may be paid for persons who received MFIP-S or medical 166.1 assistance for families and children in at least three of six 166.2 months preceding the month in which the person became ineligible 166.3 for MFIP-S or medical assistance, if the ineligibility was due 166.4 to an increase in hours of employment or employment income or 166.5 due to the loss of an earned income disregard. In addition, to 166.6 receive continued assistance under this section, persons who 166.7 received medical assistance for families and children but did 166.8 not receive MFIP-S must have had income less than or equal to 166.9 the assistance standard for their family size under the state's 166.10 AFDC plan in effect as of July 16, 1996, as required by the 166.11 Personal Responsibility and Work Opportunity Reconciliation Act 166.12 of 1996 (PRWORA), Public Law Number 104-193, at the time medical 166.13 assistance eligibility began. A person who is eligible for 166.14 extended medical assistance is entitled to six months of 166.15 assistance without reapplication, unless the assistance unit 166.16 ceases to include a dependent child. For a person under 21 166.17 years of age, medical assistance may not be discontinued within 166.18 the six-month period of extended eligibility until it has been 166.19 determined that the person is not otherwise eligible for medical 166.20 assistance. Medical assistance may be continued for an 166.21 additional six months if the person meets all requirements for 166.22 the additional six months, according to title XIX of the Social 166.23 Security Act, as amended by section 303 of the Family Support 166.24 Act of 1988, Public Law Number 100-485. 166.25 Subd. 2. [INCREASED CHILD OR SPOUSAL SUPPORT.] Beginning 166.26 October 1, 1997, or upon federal approval if later, medical 166.27 assistance may be paid for persons who received MFIP-S or 166.28 medical assistance for families and children in at least three 166.29 of the six months preceding the month in which the person became 166.30 ineligible for MFIP-S or medical assistance, if the 166.31 ineligibility was the result of the collection of child or 166.32 spousal support under part D of title IV. In addition, to 166.33 receive continued assistance under this section, persons who 166.34 received medical assistance for families and children but did 166.35 not receive MFIP-S must have had income less than or equal to 166.36 the assistance standard for their family size under the state's 167.1 AFDC plan in effect as of July 16, 1996, as required by the 167.2 Personal Responsibility and Work Opportunity Reconciliation Act 167.3 of 1996 (PRWORA), Public Law Number 104-193, at the time medical 167.4 assistance eligibility began. A person who is eligible for 167.5 extended medical assistance under this subdivision is entitled 167.6 to four months of assistance without reapplication, unless the 167.7 assistance unit ceases to include a dependent child. For a 167.8 person under 21 years of age, medical assistance may not be 167.9 discontinued within the four-month period of extended 167.10 eligibility until it has been determined that the person is not 167.11 otherwise eligible for medical assistance. 167.12 Sec. 23. Minnesota Statutes 1996, section 256D.01, 167.13 subdivision 1, is amended to read: 167.14 Subdivision 1. [POLICY.] The objectives of sections 167.15 256D.01 to 256D.21 are to provide a sound administrative 167.16 structure for public assistance programs; to maximize the use of 167.17 federal money for public assistance purposes; to provide an 167.18 integrated public assistance program forall personssingle 167.19 adults or childless couples in the state without adequate income 167.20 or resources to maintain a subsistence reasonably compatible 167.21 with decency and health; and to provide services to help 167.22 employable and potentially employable persons prepare for and 167.23 attain self-sufficiency and obtain permanent work. 167.24 It isdeclared to bethe policy of this state thatpersons167.25 single adults or childless couples unable to provide for 167.26 themselves and not otherwise provided for by lawandwho meet 167.27 the eligibility requirements of sections 256D.01 to 256D.21 are 167.28 entitled to receive grants of general assistance necessary to 167.29 maintain a subsistence reasonably compatible with decency and 167.30 health. Providing this assistance is a matter of public concern 167.31 and a necessity in promoting the public health and welfare. 167.32 Sec. 24. Minnesota Statutes 1996, section 256D.01, 167.33 subdivision 1a, is amended to read: 167.34 Subd. 1a. [STANDARDS.] (a) A principal objective in 167.35 providing general assistance is to provide forpersonssingle 167.36 adults or childless couples ineligible for federal programs who 168.1 are unable to provide for themselves. The minimum standard of 168.2 assistance determines the total amount of the general assistance 168.3 grant without separate standards for shelter, utilities, or 168.4 other needs. 168.5 (b) The commissioner shall set the standard of assistance 168.6 for an assistance unit consisting of an adult recipient who is 168.7 childless and unmarried or living apart from children and spouse 168.8 and who does not live with a parent or parents or a legal 168.9 custodian. When the other standards specified in this 168.10 subdivision increase, this standard must also be increased by 168.11 the same percentage. 168.12 (c) For an assistance unit consisting of a single adult who 168.13 lives with a parent or parents, the general assistance standard 168.14 of assistance is the amount that the aid to families with 168.15 dependent children standard of assistance, in effect on January 168.16 1, 1996, would increase if the recipient were added as an 168.17 additional minor child to an assistance unit consisting of the 168.18 recipient's parent and all of that parent's family members, 168.19 except that the standard may not exceed the standard for a 168.20 general assistance recipient living alone. Benefits received by 168.21 a responsible relative of the assistance unit under the 168.22 supplemental security income program, a workers' compensation 168.23 program, the Minnesota supplemental aid program, or any other 168.24 program based on the responsible relative's disability, and any 168.25 benefits received by a responsible relative of the assistance 168.26 unit under the social security retirement program, may not be 168.27 counted in the determination of eligibility or benefit level for 168.28 the assistance unit. Except as provided below, the assistance 168.29 unit is ineligible for general assistance if the available 168.30 resources or the countable income of the assistance unit and the 168.31 parent or parents with whom the assistance unit lives are such 168.32 that a family consisting of the assistance unit's parent or 168.33 parents, the parent or parents' other family members and the 168.34 assistance unit as the only or additional minor child would be 168.35 financially ineligible for general assistance. For the purposes 168.36 of calculating the countable income of the assistance unit's 169.1 parent or parents, the calculation methods, income deductions, 169.2 exclusions, and disregards used when calculating the countable 169.3 income for a single adult or childless couple must be used. 169.4 (d) For an assistance unit consisting of a childless 169.5 couple, the standards of assistance are the same as the first 169.6 and second adult standards of the aid to families with dependent 169.7 children program in effect on January 1, 1996. If one member of 169.8 the couple is not included in the general assistance grant, the 169.9 standard of assistance for the other is the second adult 169.10 standard of the aid to families with dependent children program. 169.11(e) For an assistance unit consisting of all members of a169.12family, the standards of assistance are the same as the169.13standards of assistance that apply to a family under the aid to169.14families with dependent children program if that family had the169.15same number of parents and children as the assistance unit under169.16general assistance and if all members of that family were169.17eligible for the aid to families with dependent children169.18program. If one or more members of the family are not included169.19in the assistance unit for general assistance, the standards of169.20assistance for the remaining members are the same as the169.21standards of assistance that apply to an assistance unit169.22composed of the entire family, less the standards of assistance169.23for a family of the same number of parents and children as those169.24members of the family who are not in the assistance unit for169.25general assistance. In no case shall the standard for family169.26members who are in the assistance unit for general assistance,169.27when combined with the standard for family members who are not169.28in the general assistance unit, total more than the standard for169.29the entire family if all members were in an AFDC assistance169.30unit. A child may not be excluded from the assistance unit169.31unless income intended for its benefit is received from a169.32federally aided categorical assistance program or supplemental169.33security income. The income of a child who is excluded from the169.34assistance unit may not be counted in the determination of169.35eligibility or benefit level for the assistance unit.169.36(f) An assistance unit consisting of one or more members of170.1a family must have its grant determined using the policies and170.2procedures of the aid to families with dependent children170.3program, except that, until June 30, 1995, in cases where a170.4county agency has developed or approved a case plan that170.5includes reunification with the children, foster care170.6maintenance payments made under state or local law for a child170.7who is temporarily absent from the assistance unit must not be170.8considered income to the child and the payments must not be170.9counted in the determination of the eligibility or benefit level170.10of the assistance unit. Otherwise, the standard of assistance170.11must be determined according to paragraph (e); the first $50 of170.12total child support received by an assistance unit in a month170.13must be excluded and the balance counted as unearned income.170.14 Sec. 25. Minnesota Statutes 1996, section 256D.01, 170.15 subdivision 1e, is amended to read: 170.16 Subd. 1e. [RULES REGARDING EMERGENCY ASSISTANCE.]In order170.17to maximize the use of federal funds,The commissioner shall 170.18 adopt rules, to the extent permitted by federal law, for170.19eligibility for the emergency assistance program under aid to170.20families with dependent children, andunder the terms of 170.21 sections 256D.01 to 256D.21 for general assistance, to require 170.22 use of the emergency program underaid to families with170.23dependent childrenMFIP-S as the primary financial resource when 170.24 available. The commissioner shall adopt rules for eligibility 170.25 for general assistance of persons with seasonal income and may 170.26 attribute seasonal income to other periods not in excess of one 170.27 year from receipt by an applicant or recipient. General 170.28 assistance payments may not be made for foster care, child 170.29 welfare services, or other social services. Vendor payments and 170.30 vouchers may be issued only as authorized in sections 256D.05, 170.31 subdivision 6, and 256D.09. 170.32 Sec. 26. Minnesota Statutes 1996, section 256D.02, 170.33 subdivision 6, is amended to read: 170.34 Subd. 6. "Child" means an adultor minorchild of an 170.35 individual. 170.36 Sec. 27. Minnesota Statutes 1996, section 256D.02, 171.1 subdivision 12a, is amended to read: 171.2 Subd. 12a. [RESIDENT.] (a) For purposes of eligibility for 171.3 general assistance and general assistance medical care, a 171.4 "resident" is a person living in the state for at least 30 days 171.5 with the intention of making the person's home here and not for 171.6 any temporary purpose. All applicants for these programs are 171.7 required to demonstrate the requisite intent and can do so in 171.8 any of the following ways: 171.9 (1) by showing that the applicant maintains a residence at 171.10 a verified address, other than a place of public accommodation. 171.11 An applicant may verify a residence address by presenting a 171.12 valid state driver's license, a state identification card, a 171.13 voter registration card, a rent receipt, a statement by the 171.14 landlord, apartment manager, or homeowner verifying that the 171.15 individual is residing at the address, or other form of 171.16 verification approved by the commissioner; or 171.17 (2) by verifying residencein accordance withaccording to 171.18 Minnesota Rules, part 9500.1219, subpart 3, item C. 171.19 (b)An applicant who has been in the state for less than 30171.20days shall be considered a resident if the applicant can provide171.21documentation:171.22(1) that the applicant was born in the state;171.23(2) that the applicant has been a long-time resident of the171.24state or was formerly a resident of the state for at least 365171.25days and is returning to the state from a temporary absence, as171.26those terms are defined in rules adopted by the commissioner;171.27(3) that the applicant has come to the state to join a171.28close relative which, for purposes of this subdivision, means a171.29parent, grandparent, brother, sister, spouse, or child; or171.30(4) that the applicant has come to this state to accept a171.31bona fide offer of employment for which the applicant is171.32eligible.171.33 For general assistance medical care, a county agency shall 171.34 waive the 30-day residency requirement in cases ofemergencies,171.35includingmedical emergencies, or where unusual hardship would171.36result from denial of general assistance medical care. For 172.1 general assistance, a countymayshall waive the 30-day 172.2 residency requirementin cases of emergencies, including medical172.3emergencies, orwhere unusual hardship would result from denial 172.4 of general assistance. For purposes of this subdivision, 172.5 "unusual hardship" means the applicant is without shelter or is 172.6 at risk of losing shelter or is without available resources for 172.7 food. 172.8 The county agency must report to the commissioner within 30 172.9 days on any waiver granted under this section. The county shall 172.10 not deny an application solely because the applicant does not 172.11 meet at least one of the criteria in this subdivision, but shall 172.12 continue to process the application and leave the application 172.13 pending until the residency requirement is met or until 172.14 eligibility or ineligibility is established. 172.15 (c) Migrant workers as defined in section 256J.08 are 172.16 exempt from the 30-day residency requirement, provided the 172.17 migrant worker worked in this state within the last 24 months. 172.18 (d) For purposes of eligibility for emergency general 172.19 assistance, the 30-day residency requirement in paragraph (a) 172.20 shall not be waived. 172.21 Sec. 28. [256D.024] [PERSONS PROHIBITED FROM RECEIVING 172.22 GENERAL ASSISTANCE, GENERAL ASSISTANCE MEDICAL CARE, MINNESOTA 172.23 SUPPLEMENTAL AID.] 172.24 Subdivision 1. [PERSON CONVICTED OF DRUG OFFENSES.] (a) If 172.25 an applicant has been convicted of a drug offense after July 1, 172.26 1997, the assistance unit is ineligible for benefits under this 172.27 chapter until two years after the applicant has completed terms 172.28 of the court-ordered sentence. 172.29 (b) For the purposes of this subdivision, "drug offense" 172.30 means a conviction that occurred after July 1, 1997, of sections 172.31 152.021 to 152.025, 152.0261, or 152.096. Drug offense also 172.32 means a conviction in another jurisdiction of the possession, 172.33 use, or distribution of a controlled substance, or conspiracy to 172.34 commit any of these offenses, if the offense occurred after July 172.35 1, 1997, and the conviction is a felony offense in that 172.36 jurisdiction, or in the case of New Jersey, a high misdemeanor. 173.1 Subd. 2. [PAROLE VIOLATORS.] An individual violating a 173.2 condition of probation or parole imposed under federal or state 173.3 law is ineligible to receive benefits under this chapter. 173.4 Subd. 3. [FLEEING FELONS.] An individual who is fleeing to 173.5 avoid prosecution, or custody, or confinement after conviction 173.6 for a crime that is a felony under the laws of the state from 173.7 which the individual flees, or in the case of New Jersey, is a 173.8 high misdemeanor, is ineligible to receive benefits under this 173.9 chapter. 173.10 Subd. 4. [DENIAL OF ASSISTANCE FOR TEN YEARS TO A PERSON 173.11 FOUND TO HAVE FRAUDULENTLY MISREPRESENTED RESIDENCY.] An 173.12 individual who is convicted in federal or state court of having 173.13 made a fraudulent statement or representation with respect to 173.14 the place of residence of the individual in order to receive 173.15 assistance simultaneously from two or more states is ineligible 173.16 to receive benefits under this chapter for ten years beginning 173.17 on the date of the conviction. 173.18 Sec. 29. Minnesota Statutes 1996, section 256D.03, 173.19 subdivision 3, is amended to read: 173.20 Subd. 3. [GENERAL ASSISTANCE MEDICAL CARE; ELIGIBILITY.] 173.21 (a) General assistance medical care may be paid for any person 173.22 who is not eligible for medical assistance under chapter 256B, 173.23 including eligibility for medical assistance based on a 173.24 spenddown of excess income according to section 256B.056, 173.25 subdivision 5, and: 173.26 (1) who is receiving assistance under section 256D.05, or 173.27 who is having a payment made on the person's behalf under 173.28 sections 256I.01 to 256I.06; or 173.29 (2)(i) who is a resident of Minnesota; and whose equity in 173.30 assets is not in excess of $1,000 per assistance unit. No asset 173.31 test shall be applied to children and their parents living in 173.32 the same household. Exempt assets, the reduction of excess 173.33 assets, and the waiver of excess assets must conform to the 173.34 medical assistance program in chapter 256B, with the following 173.35 exception: the maximum amount of undistributed funds in a trust 173.36 that could be distributed to or on behalf of the beneficiary by 174.1 the trustee, assuming the full exercise of the trustee's 174.2 discretion under the terms of the trust, must be applied toward 174.3 the asset maximum; and 174.4 (ii) who has countable income not in excess of the 174.5 assistance standards established in section 256B.056, 174.6 subdivision 4, or whose excess income is spent downpursuant174.7 according to section 256B.056, subdivision 5, using a six-month 174.8 budget period, except that a one-month budget period must be 174.9 used for recipients residing in a long-term care facility. The 174.10 method for calculating earned income disregards and deductions 174.11 for a person who resides with a dependent child under age 21 174.12 shallbe as specified in section 256.74, subdivision 1follow 174.13 section 256B.056. However, if a disregard of $30 and one-third 174.14 of the remainder described in section 256.74, subdivision 1, 174.15 clause (4), has been applied to the wage earner's income, the 174.16 disregard shall not be applied again until the wage earner's 174.17 income has not been considered in an eligibility determination 174.18 for general assistance, general assistance medical care, medical 174.19 assistance, oraid to families with dependent childrenMFIP-S 174.20 for 12 consecutive months. The earned income and work expense 174.21 deductions for a person who does not reside with a dependent 174.22 child under age 21 shall be the same as the method used to 174.23 determine eligibility for a person under section 256D.06, 174.24 subdivision 1, except the disregard of the first $50 of earned 174.25 income is not allowed; or 174.26 (3) who would be eligible for medical assistance except 174.27 that the person resides in a facility that is determined by the 174.28 commissioner or the federal health care financing administration 174.29 to be an institution for mental diseases. 174.30 (b) Eligibility is available for the month of application, 174.31 and for three months prior to application if the person was 174.32 eligible in those prior months. A redetermination of 174.33 eligibility must occur every 12 months. 174.34 (c) General assistance medical care is not available for a 174.35 person in a correctional facility unless the person is detained 174.36 by law for less than one year in a county correctional or 175.1 detention facility as a person accused or convicted of a crime, 175.2 or admitted as an inpatient to a hospital on a criminal hold 175.3 order, and the person is a recipient of general assistance 175.4 medical care at the time the person is detained by law or 175.5 admitted on a criminal hold order and as long as the person 175.6 continues to meet other eligibility requirements of this 175.7 subdivision. 175.8 (d) General assistance medical care is not available for 175.9 applicants or recipients who do not cooperate with the county 175.10 agency to meet the requirements of medical assistance. 175.11 (e) In determining the amount of assets of an individual, 175.12 there shall be included any asset or interest in an asset, 175.13 including an asset excluded under paragraph (a), that was given 175.14 away, sold, or disposed of for less than fair market value 175.15 within the 60 months preceding application for general 175.16 assistance medical care or during the period of eligibility. 175.17 Any transfer described in this paragraph shall be presumed to 175.18 have been for the purpose of establishing eligibility for 175.19 general assistance medical care, unless the individual furnishes 175.20 convincing evidence to establish that the transaction was 175.21 exclusively for another purpose. For purposes of this 175.22 paragraph, the value of the asset or interest shall be the fair 175.23 market value at the time it was given away, sold, or disposed 175.24 of, less the amount of compensation received. For any 175.25 uncompensated transfer, the number of months of ineligibility, 175.26 including partial months, shall be calculated by dividing the 175.27 uncompensated transfer amount by the average monthly per person 175.28 payment made by the medical assistance program to skilled 175.29 nursing facilities for the previous calendar year. The 175.30 individual shall remain ineligible until this fixed period has 175.31 expired. The period of ineligibility may exceed 30 months, and 175.32 a reapplication for benefits after 30 months from the date of 175.33 the transfer shall not result in eligibility unless and until 175.34 the period of ineligibility has expired. The period of 175.35 ineligibility begins in the month the transfer was reported to 175.36 the county agency, or if the transfer was not reported, the 176.1 month in which the county agency discovered the transfer, 176.2 whichever comes first. For applicants, the period of 176.3 ineligibility begins on the date of the first approved 176.4 application. 176.5 (f) When determining eligibility for any state benefits 176.6 under this subdivision, the income and resources of all 176.7 noncitizens shall be deemed to include their sponsor's income 176.8 and resources as defined in the Personal Responsibility and Work 176.9 Opportunity Reconciliation Act of 1996, title IV, Public Law 176.10 Number 104-193, section 421. 176.11(f)(g)(1)Beginning October 1, 1993,An undocumentedalien176.12 noncitizen or a nonimmigrant is ineligible for general 176.13 assistance medical care other than emergency services. For 176.14 purposes of this subdivision, a nonimmigrant is an individual in 176.15 one or more of the classes listed in United States Code, title 176.16 8, section 1101(a)(15), and an undocumentedaliennoncitizen is 176.17 an individual who resides in the United States without the 176.18 approval or acquiescence of the Immigration and Naturalization 176.19 Service. 176.20 (2) This subdivision does not apply to a child under age 176.21 18, to a Cuban or Haitian entrant as defined in Public Law 176.22 Number 96-422, section 501(e)(1) or (2)(a), or toan aliena 176.23 noncitizen who is aged, blind, or disabled as defined inUnited176.24States Code, title 42, section 1382c(a)(1)Code of Federal 176.25 Regulations, title 42, sections 435.520, 435.530, 435.531, 176.26 435.540, and 435.541, who cooperates with the Immigration and 176.27 Naturalization Service to pursue any applicable immigration 176.28 status, including citizenship, that would qualify the individual 176.29 for medical assistance with federal financial participation. 176.30 (3) For purposes of paragraph (f), "emergency services" has 176.31 the meaning given in Code of Federal Regulations, title 42, 176.32 section 440.255(b)(1), except that it also means services 176.33 rendered because of suspected or actual pesticide poisoning. 176.34 (4) Notwithstanding any other provision of law, a 176.35 noncitizen who is ineligible for medical assistance due to the 176.36 deeming of a sponsor's income and resources, is ineligible for 177.1 general assistance medical care. 177.2 Sec. 30. Minnesota Statutes 1996, section 256D.05, 177.3 subdivision 1, is amended to read: 177.4 Subdivision 1. [ELIGIBILITY.] (a) Each personor family177.5 whose income and resources are less than the standard of 177.6 assistance established by the commissionerand, who is a 177.7 resident of the state shall be eligible for and entitled to 177.8 general assistance if the personor familyis: 177.9 (1) a person who is suffering from a professionally 177.10 certified permanent or temporary illness, injury, or incapacity 177.11 which is expected to continue for more than 30 days and which 177.12 prevents the person from obtaining or retaining employment; 177.13 (2) a person whose presence in the home on a substantially 177.14 continuous basis is required because of the professionally 177.15 certified illness, injury, incapacity, or the age of another 177.16 member of the household; 177.17 (3) a person who has been placed in, and is residing in, a 177.18 licensed or certified facility for purposes of physical or 177.19 mental health or rehabilitation, or in an approved chemical 177.20 dependency domiciliary facility, if the placement is based on 177.21 illness or incapacity and ispursuantaccording to a plan 177.22 developed or approved by the county agency through its director 177.23 or designated representative or in a facility which has been 177.24 designated by the commissioner of corrections as a battered 177.25 women's shelter; 177.26 (4)a person who resides in a shelter facility described in177.27subdivision 3;177.28(5)a person not described in clause (1) or (3) who is 177.29 diagnosed by a licensed physician, psychological practitioner, 177.30 or other qualified professional, as mentally retarded or 177.31 mentally ill, and that condition prevents the person from 177.32 obtaining or retaining employment; 177.33(6)(5) a person who has an application pending for, or is 177.34 appealing termination of benefits from, the social security 177.35 disability program or the program of supplemental security 177.36 income for the aged, blind, and disabled, provided the person 178.1 has a professionally certified permanent or temporary illness, 178.2 injury, or incapacity which is expected to continue for more 178.3 than 30 days and which prevents the person from obtaining or 178.4 retaining employment; 178.5(7)(6) a person who is unable to obtain or retain 178.6 employment because advanced age significantly affects the 178.7 person's ability to seek or engage in substantial work; 178.8(8)(7) a person who has been assessed by a vocational 178.9 specialist and, in consultation with the county agency, has been 178.10 determined to be unemployable for purposes of thisitem,clause; 178.11 a person is considered employable if there exist positions of 178.12 employment in the local labor market, regardless of the current 178.13 availability of openings for those positions, that the person is 178.14 capable of performing. The person's eligibility under this 178.15 category must be reassessed at least annually. The county 178.16 agency must provide notice to the person not later than 30 days 178.17 before annual eligibility under this item ends, informing the 178.18 person of the date annual eligibility will end and the need for 178.19 vocational assessment if the person wishes to continue 178.20 eligibility under this clause. For purposes of establishing 178.21 eligibility under this clause, it is the applicant's or 178.22 recipient's duty to obtain any needed vocational assessment; 178.23(9)(8) a person who is determined by the county agency,in178.24accordance withaccording to permanent rules adopted by the 178.25 commissioner, to be learning disabled, provided that if a 178.26 rehabilitation plan for the person is developed or approved by 178.27 the county agency, the person is following the plan; 178.28(10)(9) a child under the age of 18 who is not living with 178.29 a parent, stepparent, or legal custodian,butand only if: the 178.30 child is legally emancipated or living with an adult with the 178.31 consent of an agency acting as a legal custodian; the child is 178.32 at least 16 years of age and the general assistance grant is 178.33 approved by the director of the county agency or a designated 178.34 representative as a component of a social services case plan for 178.35 the child; or the child is living with an adult with the consent 178.36 of the child's legal custodian and the county agency. For 179.1 purposes of this clause, "legally emancipated" means a person 179.2 under the age of 18 years who: (i) has been married; (ii) is on 179.3 active duty in the uniformed services of the United States; 179.4 (iii) has been emancipated by a court of competent jurisdiction; 179.5 or (iv) is otherwise considered emancipated under Minnesota law, 179.6 and for whom county social services has not determined that a 179.7 social services case plan is necessary, for reasons other 179.8 thanthatthe child has failed or refuses to cooperate with the 179.9 county agency in developing the plan; 179.10(11) a woman in the last trimester of pregnancy who does179.11not qualify for aid to families with dependent children. A179.12woman who is in the last trimester of pregnancy who is currently179.13receiving aid to families with dependent children may be granted179.14emergency general assistance to meet emergency needs;179.15(12)(10) a person who is eligible for displaced homemaker 179.16 services, programs, or assistance under section 268.96, but only 179.17 if that person is enrolled as a full-time student; 179.18(13)(11) a person who lives more than two hours round-trip 179.19 traveling time from any potential suitable employment; 179.20(14)(12) a person who is involved with protective or 179.21 court-ordered services that prevent the applicant or recipient 179.22 from working at least four hours per day; 179.23(15)(i) a family as defined in section 256D.02, subdivision179.245, which is ineligible for the aid to families with dependent179.25children program.179.26(ii) unless exempt under section 256D.051, subdivision 3a,179.27each adult in the unit must participate in and cooperate with179.28the food stamp employment and training program under section179.29256D.051 each month that the unit receives general assistance179.30benefits. The recipient's participation must begin no later179.31than the first day of the first full month following the179.32determination of eligibility for general assistance benefits.179.33To the extent of available resources, and with the county179.34agency's consent, the recipient may voluntarily continue to179.35participate in food stamp employment and training services for179.36up to three additional consecutive months immediately following180.1termination of general assistance benefits in order to complete180.2the provisions of the recipient's employability development180.3plan. If an adult member fails without good cause to180.4participate in or cooperate with the food stamp employment and180.5training program, the county agency shall concurrently terminate180.6that person's eligibility for general assistance and food stamps180.7for two months or until compliance is achieved, whichever is180.8shorter, using the notice, good cause, conciliation and180.9termination procedures specified in section 256D.051; or180.10(16)(13) a person over age 18 whose primary language is 180.11 not English and who is attending high school at least half time; 180.12 (14) a person under the age of 18 who suffers from 180.13 maladaptive behavior in the personal and behavior function area, 180.14 which for purposes of this section, is defined in the Code of 180.15 Federal Regulations and has the meaning given to these terms as 180.16 of August 21, 1996; or 180.17 (15) a person whose alcohol and drug addiction is a 180.18 material factor that contributes to the person's disability. 180.19 (b) Personsor familieswho are not state residents but who 180.20 are otherwise eligible for general assistance may receive 180.21 emergency general assistance to meet emergency needs. 180.22 (c) As a condition of eligibility under paragraph (a), 180.23 clauses (1), (3),(5)(4),(8)(7), and(9)(8), the 180.24 recipient must complete an interim assistance agreement and must 180.25 apply for other maintenance benefits as specified in section 180.26 256D.06, subdivision 5, and must comply with efforts to 180.27 determine the recipient's eligibility for those other 180.28 maintenance benefits. 180.29 (d) The burden of providing documentation for a county 180.30 agency to use to verify eligibility for general assistance or 180.31 for exemption from the food stamp employment and training 180.32 program is upon the applicant or recipient. The county agency 180.33 shall use documents already in its possession to verify 180.34 eligibility, and shall help the applicant or recipient obtain 180.35 other existing verification necessary to determine eligibility 180.36 which the applicant or recipient does not have and is unable to 181.1 obtain. 181.2 Sec. 31. Minnesota Statutes 1996, section 256D.05, 181.3 subdivision 2, is amended to read: 181.4 Subd. 2. [USE OF FEDERAL FUNDS.] Notwithstanding any law 181.5 to the contrary, ifany persona single adult or childless 181.6 couple otherwise eligible for general assistance would, but for 181.7 state statutory restriction or limitation, be eligible for a 181.8 funded federally aided assistance program providing benefits 181.9 equal to or greater than those of general assistance, theperson181.10 single adult or childless couple shall be eligible for that 181.11 federally aided program and ineligible for general assistance; 181.12 provided, however, that (a) nothing in this section shall be 181.13 construed to extend eligibility for federally aided programs to 181.14 persons not otherwise eligible for general assistance; (b) this 181.15 section shall not be effective to the extent that federal law or 181.16 regulation require new eligibility for federal programs to 181.17 persons not otherwise eligible for general assistance; and (c) 181.18 nothing in this section shall deny general assistance to a 181.19 person otherwise eligible who is determined ineligible for a 181.20 substitute federally aided program. 181.21 Sec. 32. Minnesota Statutes 1996, section 256D.05, 181.22 subdivision 5, is amended to read: 181.23 Subd. 5. [TRANSFERS OF PROPERTY.] The equity value of real 181.24 and personal property transferred without reasonable 181.25 compensation within 12 months preceding the date of application 181.26 for general assistance must be included in determining the 181.27 resources of an assistance unit in the same manner asin the aid181.28to families with dependent children program under chapter181.29256MFIP-S under chapter 256J. 181.30 Sec. 33. Minnesota Statutes 1996, section 256D.05, 181.31 subdivision 7, is amended to read: 181.32 Subd. 7. [INELIGIBILITY FOR GENERAL ASSISTANCE.] Noperson181.33 single adult or childless couple shall be eligible for general 181.34 assistance during a period of disqualification because of 181.35 sanctions, from any federally aided assistance program; or if181.36the person could be considered an essential person under section182.1256.74, subdivision 1. 182.2 Sec. 34. Minnesota Statutes 1996, section 256D.05, 182.3 subdivision 8, is amended to read: 182.4 Subd. 8. [PERSONS INELIGIBLECITIZENSHIP.](a) Beginning182.5October 1, 1993, an undocumented alien or a nonimmigrant is182.6ineligible for general assistance benefits. For purposes of182.7this subdivision, a nonimmigrant is an individual in one or more182.8of the classes listed in United States Code, title 8, section182.91101(a)(15), and an undocumented alien is an individual who182.10resides in the United States without the approval or182.11acquiescence of the Immigration and Naturalization Service.182.12(b) This subdivision does not apply to a child under age182.1318, to a Cuban or Haitian entrant as defined in Public Law182.14Number 96-422, section 501(e)(1) or (2)(a), or to an alien who182.15is aged, blind, or disabled as defined in United States Code,182.16title 42, section 1382c(a)(1).Effective July 1, 1997, 182.17 citizenship requirements for applicants and recipients under 182.18 sections 256D.01 to 256D.21 shall be determined the same as 182.19 under section 256J.11, which governs the Minnesota family 182.20 investment program-statewide (MFIP-S). The income of sponsors 182.21 of noncitizens shall be deemed available to general assistance 182.22 and general assistance medical care applicants and recipients 182.23 according to the policies of the MFIP-S program under section 182.24 256J.37, subdivision 2. 182.25 Sec. 35. Minnesota Statutes 1996, section 256D.051, 182.26 subdivision 1a, is amended to read: 182.27 Subd. 1a. [NOTICES; CONCILIATION CONFERENCE;AND 182.28 SANCTIONS.] (a) At the time the county agency notifies the 182.29 household that it is eligible for food stamps, the county agency 182.30 must inform all mandatory employment and training services 182.31 participants as identified in subdivision 1 in the household 182.32 that they must comply with all food stamp employment and 182.33 training program requirements each month, including the 182.34 requirement to attend an initial orientation to the food stamp 182.35 employment and training program and that food stamp eligibility 182.36 will end unless the participants comply with the requirements 183.1 specified in the notice. 183.2 (b) A participant who fails without good cause to comply 183.3 with food stamp employment and training program requirements of 183.4 this section, including attendance at orientation, will lose 183.5 food stamp eligibility fortwo months or until the county agency183.6determines that the participant has complied with the program183.7requirements, whichever is shorter.the following periods: 183.8 (1) for the first occurrence, for one month or until the 183.9 person complies with the requirements not previously complied 183.10 with, whichever is longer; 183.11 (2) for the second occurrence, for three months or until 183.12 the person complies with the requirements not previously 183.13 complied with, whichever is longer; or 183.14 (3) for the third and any subsequent occurrence, for six 183.15 months or until the person complies with the requirements not 183.16 previously complied with, whichever is longer. 183.17 If the participant is not the food stamp head of household, 183.18 the person shall be considered an ineligible household member 183.19 for food stamp purposes. If the participant is the food stamp 183.20 head of household, the entire household is ineligible for food 183.21 stamps as provided in Code of Federal Regulations, title 7, 183.22 section 273.7(g). "Good cause" means circumstances beyond the 183.23 control of the participant, such as illness or injury, illness 183.24 or injury of another household member requiring the 183.25 participant's presence, a household emergency, or the inability 183.26 to obtain child care for children between the ages of six and 12 183.27 or to obtain transportation needed in order for the participant 183.28 to meet the food stamp employment and training program 183.29 participation requirements. 183.30 (c) The county agency shall mail or hand deliver a notice 183.31 to the participant not later than five days after determining 183.32 that the participant has failed without good cause to comply 183.33 with food stamp employment and training program requirements 183.34 which specifies the requirements that were not complied with, 183.35 the factual basis for the determination of noncompliance, and 183.36 the right to reinstate eligibility upon a showing of good 184.1 causeor thefor failure to meet the requirements,. The notice 184.2 must ask the reason for the noncompliance,andmustidentify the 184.3 participant's appeal rights. The notice must request that the 184.4 participant inform the county agency if the participant believes 184.5 that good cause existed for the failure to comply, must offer184.6the participant a conciliation conference as provided in184.7paragraph (d),and must state that the county agency intends to 184.8 terminate eligibility for food stamp benefits due to failure to 184.9 comply with food stamp employment and training program 184.10 requirements. 184.11 (d)The county agency must offer a conciliation conference184.12to participants who have failed to comply with food stamp184.13employment and training program requirements. The purpose of184.14the conference is to determine the cause for noncompliance, to184.15attempt to resolve the problem causing the noncompliance so that184.16all requirements are complied with, and to determine if good184.17cause for noncompliance was present. The conciliation period184.18shall run for ten working days from the date of the notice184.19required in paragraph (c). Information about how to request a184.20conciliation conference must be specified in the notice required184.21in paragraph (c). If the county agency determines that the184.22participant, during the conciliation period, complied with all184.23food stamp employment and training program requirements that the184.24recipient was required to comply with prior to and during the184.25conciliation period, or if the county agency determines that184.26good cause for failing to comply with the requirements was184.27present, a sanction on the participant's or household's food184.28stamp eligibility shall not be imposed.184.29(e)If the county agency determines that the participant 184.30 did not comply during theconciliation periodmonth with all 184.31 food stamp employment and training program requirements that 184.32 were in effectprior to and during the conciliation period, and 184.33 if the county agency determines that good cause was not present, 184.34 the county must provide a ten-day notice of termination of food 184.35 stamp benefits.The termination notice must be issued following184.36the last day of the conciliation period.The amount of food 185.1 stamps that are withheld from the household and determination of 185.2 the impact of the sanction on other household members is 185.3 governed by Code of Federal Regulations, title 7, section 273.7. 185.4(f)(e) The participant may appeal the termination of food 185.5 stamp benefits under the provisions of section 256.045. 185.6 Sec. 36. Minnesota Statutes 1996, section 256D.051, 185.7 subdivision 2a, is amended to read: 185.8 Subd. 2a. [DUTIES OF COMMISSIONER.] In addition to any 185.9 other duties imposed by law, the commissioner shall: 185.10 (1) based on this section and section 256D.052 and Code of 185.11 Federal Regulations, title 7, section 273.7, supervise the 185.12 administration of food stamp employment and training services to 185.13 county agencies; 185.14 (2) disburse money appropriated for food stamp employment 185.15 and training services to county agencies based upon the county's 185.16 costs as specified in section 256D.06; 185.17 (3) accept and supervise the disbursement of any funds that 185.18 may be provided by the federal government or from other sources 185.19 for use in this state for food stamp employment and training 185.20 services;and185.21 (4) cooperate with other agencies including any agency of 185.22 the United States or of another state in all matters concerning 185.23 the powers and duties of the commissioner under this section and 185.24 section 256D.052; and 185.25 (5) in cooperation with the commissioner of economic 185.26 security, ensure that each component of an employment and 185.27 training program carried out under this section is delivered 185.28 through a statewide workforce development system, unless the 185.29 component is not available locally through such a system. 185.30 Sec. 37. Minnesota Statutes 1996, section 256D.051, 185.31 subdivision 3a, is amended to read: 185.32 Subd. 3a. [PERSONS REQUIRED TO REGISTER FOR AND 185.33 PARTICIPATE IN THE FOOD STAMP EMPLOYMENT AND TRAINING PROGRAM.] 185.34 (a) To the extent required under Code of Federal Regulations, 185.35 title 7, section 273.7(a), each applicant for and recipient of 185.36 food stamps is required to register for work as a condition of 186.1 eligibility for food stamp benefits. Applicants and recipients 186.2 are registered by signing an application or annual reapplication 186.3 for food stamps, and must be informed that they are registering 186.4 for work by signing the form. 186.5 (b) The commissioner shall determine, within federal 186.6 requirements, persons required to participate in the food stamp 186.7 employment and training (FSET) program. 186.8 (c) The following food stamp recipients are exempt from 186.9 mandatory participation in food stamp employment and training 186.10 services: 186.11 (1) recipients of benefits under the AFDC program in effect 186.12 until October 1, 1997, Minnesota supplemental aid program, or 186.13 the general assistance program, except that an adult who186.14receives general assistance under section 256D.05, subdivision186.151, paragraph (b), is not exempt unless that person qualifies186.16under one of the remaining exemption provisions in this186.17paragraph; 186.18 (2) a child; 186.19 (3) a recipient over age 55; 186.20 (4) a recipient who has a mental or physical illness, 186.21 injury, or incapacity which is expected to continue for at least 186.22 30 days and which impairs the recipient's ability to obtain or 186.23 retain employment as evidenced by professional certification or 186.24 the receipt of temporary or permanent disability benefits issued 186.25 by a private or government source; 186.26 (5) a parent or other household member responsible for the 186.27 care of either a dependent child in the household who is under 186.28 age six or a person in the household who is professionally 186.29 certified as having a physical or mental illness, injury, or 186.30 incapacity. Only one parent or other household member may claim 186.31 exemption under this provision; 186.32 (6) a recipient receiving unemployment compensation or who 186.33 has applied for unemployment compensation and has been required 186.34 to register for work with the department of economic security as 186.35 part of the unemployment compensation application process; 186.36 (7) a recipient participating each week in a drug addiction 187.1 or alcohol abuse treatment and rehabilitation program, provided 187.2 the operators of the treatment and rehabilitation program, in 187.3 consultation with the county agency, recommend that the 187.4 recipient not participate in the food stamp employment and 187.5 training program; 187.6 (8) a recipient employed or self-employed for 30 or more 187.7 hours per week at employment paying at least minimum wage, or 187.8 who earns wages from employment equal to or exceeding 30 hours 187.9 multiplied by the federal minimum wage; or 187.10 (9) a student enrolled at least half time in any school, 187.11 training program, or institution of higher education. When 187.12 determining if a student meets this criteria, the school's, 187.13 program's or institution's criteria for being enrolled half time 187.14 shall be used. 187.15 Sec. 38. Minnesota Statutes 1996, section 256D.051, is 187.16 amended by adding a subdivision to read: 187.17 Subd. 18. [WORK EXPERIENCE PLACEMENTS.] (a) To the extent 187.18 of available resources, each county agency must establish and 187.19 operate a work experience component in the food stamp employment 187.20 and training program for recipients who are subject to a federal 187.21 limit of three months of food stamp eligibility in any 36-month 187.22 period. The purpose of the work experience component is to 187.23 enhance the participant's employability, self-sufficiency, and 187.24 to provide meaningful, productive work activities. 187.25 (b) The commissioner shall assist counties in the design 187.26 and implementation of these components. The commissioner must 187.27 ensure that job placements under a work experience component 187.28 comply with section 256J.72. Written or oral concurrence with 187.29 job duties of persons placed under the community work experience 187.30 program shall be obtained from the appropriate exclusive 187.31 bargaining representative. 187.32 (c) Worksites developed under this section are limited to 187.33 projects that serve a useful public service such as health, 187.34 social service, environmental protection, education, urban and 187.35 rural development and redevelopment, welfare, recreation, public 187.36 facilities, public safety, community service, services to aged 188.1 or disabled citizens, and child care. To the extent possible, 188.2 the prior training, skills, and experience of a recipient must 188.3 be used in making appropriate work experience assignments. 188.4 (d) Structured, supervised volunteer work with an agency or 188.5 organization that is monitored by the county service provider 188.6 may, with the approval of the county agency, be used as a work 188.7 experience placement. 188.8 (e) As a condition of placing a person receiving food 188.9 stamps in a program under this subdivision, the county agency 188.10 shall first provide the recipient the opportunity: 188.11 (1) for placement in suitable subsidized or unsubsidized 188.12 employment through participation in job search under section 188.13 256D.051; or 188.14 (2) for placement in suitable employment through 188.15 participation in on-the-job training, if such employment is 188.16 available. 188.17 (f) The county agency shall limit the maximum monthly 188.18 number of hours that any participant may work in a work 188.19 experience placement to a number equal to the amount of the 188.20 family's monthly food stamp allotment divided by the greater of 188.21 the federal minimum wage or the applicable state minimum wage. 188.22 After a participant has been assigned to a position for 188.23 nine months, the participant may not continue in that assignment 188.24 unless the maximum number of hours a participant works is no 188.25 greater than the amount of the food stamp benefit divided by the 188.26 rate of pay for individuals employed in the same or similar 188.27 occupations by the same employer at the same site. 188.28 (g) The participant's employability development plan must 188.29 include the length of time needed in the work experience 188.30 program, the need to continue job seeking activities while 188.31 participating in work experience, and the participant's 188.32 employment goals. 188.33 (h) After each six months of a recipient's participation in 188.34 a work experience job placement, and at the conclusion of each 188.35 work experience assignment under this section, the county agency 188.36 shall reassess and revise, as appropriate, the participant's 189.1 employability development plan. 189.2 (i) A participant has good cause for failure to cooperate 189.3 with a work experience job placement if, in the judgment of the 189.4 employment and training service provider, the reason for failure 189.5 is reasonable and justified. Good cause for purposes of this 189.6 section is defined in section 256D.051, subdivision 1a, 189.7 paragraph (b). 189.8 (j) A recipient who has failed without good cause to 189.9 participate in or comply with the work experience job placement 189.10 shall be terminated from participation in work experience job 189.11 activities. If the recipient is not exempt from mandatory food 189.12 stamp employment and training program participation under 189.13 section 256D.051, subdivision 3a, the recipient will be assigned 189.14 to other mandatory program activities. If the recipient is 189.15 exempt from mandatory participation but is participating as a 189.16 volunteer, the person shall be terminated from the food stamp 189.17 employment and training program. 189.18 Sec. 39. [256D.0512] [BUDGETING LUMP SUMS.] 189.19 Nonrecurring lump-sum income received by a recipient of 189.20 general assistance must be budgeted in the normal retrospective 189.21 cycle. 189.22 Sec. 40. Minnesota Statutes 1996, section 256D.055, is 189.23 amended to read: 189.24 256D.055 [COUNTY DESIGN; WORK FOCUSED PROGRAM.] 189.25 The commissioner of human services shall issue a request 189.26 for proposals from counties to submit a plan for developing and 189.27 implementing a county-designed program. The plan shall be for 189.28 first-time applicants foraid to families with dependent189.29children (AFDC) and family general assistance (FGA)Minnesota 189.30 family investment program-statewide (MFIP-S) and must emphasize 189.31 the importance of becoming employed and oriented into the work 189.32 force in order to become self-sufficient. The plan must target 189.33 public assistance applicants who are most likely to become 189.34 self-sufficient quickly with short-term assistance or services 189.35 such as child care, child support enforcement, or employment and 189.36 training services. 190.1 The plan may include vendor payments, mandatory job search, 190.2 refocusing existing county or provider efforts, or other program 190.3 features. The commissioner may approve a county plan which 190.4 allows a county to use other program funding for the county work 190.5 focus program in a more flexible manner. Nothing in this 190.6 section shall allow payments made to the public assistance 190.7 applicant to be less than the amount the applicant would have 190.8 received if the program had not been implemented, or reduce or 190.9 eliminate a category of eligible participants from the program 190.10 without legislative approval. 190.11 The commissioner shall not approve a county plan that would 190.12 have an adverse impact on the Minnesota family investment plan 190.13 demonstration. If the plan is approved by the commissioner, the 190.14 county may implement the plan. If the plan is approved by the 190.15 commissioner, but a federal waiver is necessary to implement the 190.16 plan, the commissioner shall apply for the necessary federal 190.17 waivers. 190.18 Sec. 41. [256D.057] [SUPPLEMENT FOR CERTAIN NONCITIZENS.] 190.19 For an assistance unit that contains an adult or a minor 190.20 legal noncitizen who was residing in this state as of July 1, 190.21 1997, and lost eligibility for the federal food stamp and 190.22 Supplemental Security Income programs under the provisions of 190.23 title IV of Public Law Number 104-193, the standard is $63 for 190.24 each legal noncitizen under this section, provided the legal 190.25 adult noncitizen in the assistance unit: 190.26 (1) is enrolled in a literacy class, English as a second 190.27 language class, or a citizenship class; 190.28 (2) is applying for admission to a literacy class, English 190.29 as a second language class, or a citizenship class, and is 190.30 enrolled within 60 days of receiving the increased grant amount 190.31 under this paragraph; 190.32 (3) is in the process of applying for a waiver from the 190.33 Immigration and Naturalization Service of the English language 190.34 or civics requirement of the citizenship test; 190.35 (4) has submitted an application for citizenship to the 190.36 Immigration and Naturalization Service and is waiting for a 191.1 testing date or a subsequent swearing in ceremony; or 191.2 (5) has been denied citizenship due to a failure to pass 191.3 the test after two attempts or due to a denial of the 191.4 application for naturalization because of an inability to 191.5 understand the rights and responsibilities of becoming a citizen. 191.6 Sec. 42. Minnesota Statutes 1996, section 256D.06, 191.7 subdivision 2, is amended to read: 191.8 Subd. 2. Notwithstanding the provisions of subdivision 1, 191.9 a grant of general assistance shall be made to an eligible 191.10individual,single adult, married couple, or family for an 191.11 emergency need, as defined in rules promulgated by the 191.12 commissioner, where the recipient requests temporary assistance 191.13 not exceeding 30 days if an emergency situation appears to exist 191.14and the individual is ineligible for the program of emergency191.15assistance under aid to families with dependent children and is191.16not a recipient of aid to families with dependent children at191.17the time of application hereunder, and the individual or family 191.18 is ineligible for MFIP-S or is not a participant of MFIP-S. If 191.19 an applicant or recipient relates facts to the county agency 191.20 which may be sufficient to constitute an emergency situation, 191.21 the county agency shall advise the person of the procedure for 191.22 applying for assistancepursuantaccording to this subdivision. 191.23 Sec. 43. Minnesota Statutes 1996, section 256D.06, 191.24 subdivision 5, is amended to read: 191.25 Subd. 5. Any applicant, otherwise eligible for general 191.26 assistance and possibly eligible for maintenance benefits from 191.27 any other source shall (a) make application for those benefits 191.28 within 30 days of the general assistance application; and (b) 191.29 execute an interim assistance authorization agreement on a form 191.30 as directed by the commissioner. If found eligible for benefits 191.31 from other sources, and a payment received from another source 191.32 relates to the period during which general assistance was also 191.33 being received, the recipient shall be required to reimburse the 191.34 county agency for the interim assistance paid. Reimbursement 191.35 shall not exceed the amount of general assistance paid during 191.36 the time period to which the other maintenance benefits apply 192.1 and shall not exceed the state standard applicable to that time 192.2 period. The commissioner shall adopt rules authorizing county 192.3 agencies or other client representatives to retain from the 192.4 amount recovered under an interim assistance agreement 25 192.5 percent plus actual reasonable fees, costs, and disbursements of 192.6 appeals and litigation, of providing special assistance to the 192.7 recipient in processing the recipient's claim for maintenance 192.8 benefits from another source. The money retained under this 192.9 section shall be from the state share of the recovery. The 192.10 commissioner or the county agency may contract with qualified 192.11 persons to provide the special assistance. The rules adopted by 192.12 the commissioner shall include the methods by which county 192.13 agencies shall identify, refer, and assist recipients who may be 192.14 eligible for benefits under federal programs for the disabled. 192.15This subdivision does not require repayment of per diem payments192.16made to shelters for battered women pursuant to section 256D.05,192.17subdivision 3.192.18 Sec. 44. [256D.066] [INTERSTATE PAYMENT STANDARDS.] 192.19 (a) Effective July 1, 1997, the amount of assistance paid 192.20 to an eligible assistance unit in which all members have resided 192.21 in this state for less than 12 calendar months shall be the 192.22 lesser of either the payment standard that would have been 192.23 received by the assistance unit from the state of immediate 192.24 prior residence, or the amount calculated in accordance with 192.25 this chapter. The lesser payment shall continue until the 192.26 assistance unit meets the 12-month requirement. Payment shall 192.27 be calculated by applying this state's budgeting policies and 192.28 the unit's net income shall be deducted from the payment 192.29 standard in the other state or in this state, whichever is 192.30 lower. The county agency may, at its option, make vendor 192.31 payments under this paragraph for rent and utilities, with the 192.32 remainder, if any, paid to the unit. 192.33 (b) During the first 12 months an assistance unit resides 192.34 in this state, the number of months that the unit is eligible to 192.35 receive general assistance benefits is limited to the number of 192.36 months the unit would have been eligible to receive similar 193.1 benefits in the state of immediate prior residence. 193.2 (c) This policy applies whether or not the unit received 193.3 similar benefits while residing in the state of previous 193.4 residence. 193.5 (d) When a unit moves to this state from another state 193.6 where the unit has exhausted that state's time limit for 193.7 receiving similar benefits, the unit will not be eligible to 193.8 receive any general assistance benefits in this state for 12 193.9 months from the date the unit moves here. 193.10 (e) For the purposes of this subdivision, "state of 193.11 immediate prior residence" means: 193.12 (i) the state in which the applicant declares the applicant 193.13 spent the most time in the 30 days prior to moving to this 193.14 state; or 193.15 (ii) the applicant is in the migrant work stream and the 193.16 applicant maintains a home in another state. 193.17 Sec. 45. Minnesota Statutes 1996, section 256D.08, 193.18 subdivision 1, is amended to read: 193.19 Subdivision 1. In determining eligibility of afamily,193.20 single adult or married couple, or individual there shall be193.21excludedthe following resources shall be excluded: 193.22 (1) real or personal property or liquid assets which do not 193.23 exceedthose permitted under the federally aided assistance193.24program known as aid to families with dependent children$1,000; 193.25 and 193.26 (2) other property which has been determined,in accordance193.27with and subjectaccording to limitations contained in rules 193.28 promulgated by the commissioner, to be essential tothe family193.29or individuala single adult or married couple as a means of 193.30 self-support or self-care or which is producing income that is 193.31 being used for the support of theindividual or familysingle 193.32 adult or married couple. The commissioner shall further provide 193.33 by rule the conditions for those situations in which property 193.34 not excluded under this subdivision may be retained by 193.35 thefamily or individualsingle adult or married couple where 193.36 there is a reasonable probability that in the foreseeable future 194.1 the property will be used for the self-support of theindividual194.2or familysingle adult or married couple; and 194.3 (3) payments, madepursuantaccording to litigation and 194.4 subsequent appropriation by the United States Congress, of funds 194.5 to compensate members of Indian tribes for the taking of tribal 194.6 land by the federal government. 194.7 Sec. 46. Minnesota Statutes 1996, section 256D.08, 194.8 subdivision 2, is amended to read: 194.9 Subd. 2. Notwithstanding any other provision of sections 194.10 256D.01 to 256D.21, the commissioner shall provide by rule for 194.11 the exclusion of property from the determination of eligibility 194.12 for general assistance when it appears likely that the need for 194.13 general assistance will not exceed 30 days or an undue hardship 194.14 would be imposed onan individual or familya single adult or 194.15 married couple by the forced disposal of the property. 194.16 Sec. 47. Minnesota Statutes 1996, section 256D.09, is 194.17 amended by adding a subdivision to read: 194.18 Subd. 2b. If at any time there is verification that the 194.19 client's disability is dependent upon the client's continued 194.20 drug addiction or alcoholism, general assistance for rent and 194.21 utilities must be made in the form of vendor payments. 194.22 Verification of drug addiction or alcoholism can be 194.23 received from: 194.24 (1) denial of Social Security benefits based on drug 194.25 addiction or alcoholism; 194.26 (2) a statement from the state medical review team that the 194.27 person's disability is dependent upon continued drug addiction 194.28 or alcoholism; or 194.29 (3) a doctor's statement that the person's disability is 194.30 dependent upon continued drug addiction or alcoholism. 194.31 Sec. 48. Minnesota Statutes 1996, section 256D.435, 194.32 subdivision 3, is amended to read: 194.33 Subd. 3. [APPLICATION FOR FEDERALLY FUNDED BENEFITS.] 194.34 Persons who live with the applicant or recipient, who have unmet 194.35 needs and for whom the applicant or recipient has financial 194.36 responsibility, must apply for and, if eligible, acceptAFDC195.1 MFIP-S and other federally funded benefits. 195.2 Sec. 49. Minnesota Statutes 1996, section 256D.44, 195.3 subdivision 5, is amended to read: 195.4 Subd. 5. [SPECIAL NEEDS.] In addition to the state 195.5 standards of assistance established in subdivisions 1 to 4, 195.6 payments are allowed for the following special needs of 195.7 recipients of Minnesota supplemental aid who are not residents 195.8 of a nursing home, a regional treatment center, or a group 195.9 residential housing facility:. 195.10 (a) The county agency shall pay a monthly allowance for 195.11 medically prescribed diets payable under theAFDC program195.12 Minnesota family investment program-statewide if the cost of 195.13 those additional dietary needs cannot be met through some other 195.14 maintenance benefit. 195.15 (b) Payment for nonrecurring special needs must be allowed 195.16 for necessary home repairs or necessary repairs or replacement 195.17 of household furniture and appliances using the payment standard 195.18 of the AFDC program in effect on January 1, 1996, for these 195.19 expenses, as long as other funding sources are not available. 195.20 (c) A fee for guardian or conservator service is allowed at 195.21 a reasonable rate negotiated by the county or approved by the 195.22 court. This rate shall not exceed five percent of the 195.23 assistance unit's gross monthly income up to a maximum of $100 195.24 per month. If the guardian or conservator is a member of the 195.25 county agency staff, no fee is allowed. 195.26 (d) The county agency shall continue to pay a monthly 195.27 allowance of $68 for restaurant meals for a person who was 195.28 receiving a restaurant meal allowance on June 1, 1990, and who 195.29 eats two or more meals in a restaurant daily. The allowance 195.30 must continue until the person has not received Minnesota 195.31 supplemental aid for one full calendar month or until the 195.32 person's living arrangement changes and the person no longer 195.33 meets the criteria for the restaurant meal allowance, whichever 195.34 occurs first. 195.35 (e) A fee of ten percent of the recipient's gross income or 195.36 $25, whichever is less, is allowed for representative payee 196.1 services provided by an agency that meets the requirements under 196.2 SSI regulations to charge a fee for representative payee 196.3 services. This special need is available to all recipients of 196.4 Minnesota supplemental aid regardless of their living 196.5 arrangement. 196.6 Sec. 50. Minnesota Statutes 1996, section 256F.04, 196.7 subdivision 1, is amended to read: 196.8 Subdivision 1. [FAMILY PRESERVATION FUND.] The 196.9 commissioner shall establish a family preservation fund to 196.10 assist counties in providing placement prevention and family 196.11 reunification services.This fund shall include a basic grant196.12for family preservation services, a placement earnings grant196.13under section 256.8711, subdivision 6b, paragraph (a), and a196.14development grant under section 256.8711, subdivision 6a, to196.15assist counties in developing and expanding their family196.16preservation core services as defined in section 256F.03,196.17subdivision 10. Beginning with calendar year 1998, after each196.18annual or quarterly calculation, these three component grants196.19shall be added together and treated as a single family196.20preservation grant.196.21 Sec. 51. Minnesota Statutes 1996, section 256F.04, 196.22 subdivision 2, is amended to read: 196.23 Subd. 2. [FORMS AND INSTRUCTIONS.] The commissioner shall 196.24 provide necessary forms and instructions to the counties for 196.25 their community social services plan, as required in section 196.26 256E.09, that incorporate the information necessary to apply for 196.27 a family preservation fund grant, and to exercise county options 196.28 under section 256F.05,subdivisions 7, paragraph (a), or196.29 subdivision 8, paragraph (c). 196.30 Sec. 52. Minnesota Statutes 1996, section 256F.05, 196.31 subdivision 2, is amended to read: 196.32 Subd. 2. [MONEY AVAILABLE FORTHE BASIC GRANTFAMILY 196.33 PRESERVATION.] Money appropriated for family preservation under 196.34 sections 256F.04 to 256F.07, together with an amount as 196.35 determined by the commissioner oftitle IV-Bfunds distributed 196.36 to Minnesota according tothe Social Security Act,United States 197.1 Code, title 42, chapter 7, subchapter IV, part B, section 621, 197.2 must be distributed to counties on a calendar year basis 197.3 according to the formula in subdivision 3. 197.4 Sec. 53. Minnesota Statutes 1996, section 256F.05, 197.5 subdivision 3, is amended to read: 197.6 Subd. 3. [BASICGRANT FORMULA.] (a) The amount of money 197.7 allocated to counties under subdivision 2 shall first be 197.8 allocated in amounts equal to each county's guaranteed floor 197.9 according to paragraph (b), and second, any remaining available 197.10 funds allocated as follows: 197.11 (1)9050 percent of the funds shall be allocated based on 197.12 the population of the county under age 19 years as compared to 197.13 the state as a whole as determined by the most recent data from 197.14 the state demographer's office;and197.15 (2)ten20 percent of funds shall be allocated based on the 197.16 county's percentage share of the unduplicated number of families 197.17 who received family preservation services under section 256F.03, 197.18 subdivision 5, paragraphs (a), (b), (c), and (e), in the most 197.19 recent calendar year available as determined by the 197.20 commissioner; 197.21 (3) ten percent of the funds shall be allocated based on 197.22 the county's percentage share of the unduplicated number of 197.23 children in substitute care in the most recent calendar year 197.24 available as determined by the commissioner; 197.25 (4) ten percent of the funds shall be allocated based on 197.26 the county's percentage share of the number of determined 197.27 maltreatment reports in the most recent calendar year available 197.28 as determined by the commissioner; 197.29 (5) five percent of the funds shall be allocated based on 197.30 the county's percentage share of the number of American Indian 197.31 children under age 18 residing in the county in the most recent 197.32 calendar year as determined by the commissioner; and 197.33 (6) five percent of the funds shall be allocated based on 197.34 the county's percentage share of the number ofminoritychildren 197.35 of color receiving children's case management services as 197.36 defined by the commissioner based on the most recent data as 198.1 determined by the commissioner. 198.2 (b) Each county'sbasicgrant guaranteed floor shall be 198.3 calculated as follows: 198.4 (1) 90 percent of the county's allocation received in the 198.5 preceding calendar year. For calendar year 1996 only, the198.6allocation received in the preceding calendar year shall be198.7determined by the commissioner based on the funding previously198.8distributed as separate grants under sections 256F.04 to 256F.07198.9 or $25,000, whichever is greater; and 198.10 (2) when the amounts of funds available for allocation is 198.11 less than the amount available in the previous year, each 198.12 county's previous year allocation shall be reduced in proportion 198.13 to the reduction in the statewide funding, for the purpose of 198.14 establishing the guaranteed floor. 198.15 (c) The commissioner shall regularly review the use of 198.16 family preservation fund allocations by county. The 198.17 commissioner may reallocate unexpended or unencumbered money at 198.18 any time among those counties that have expended or are 198.19 projected to expend their full allocation. 198.20 (d) For the period from July 1, 1997, to December 31, 1998, 198.21 only, each county shall receive an 18-month allocation. For the 198.22 purposes of determining the guaranteed floor for this 18-month 198.23 allocation, the allocation received in the preceding calendar 198.24 year shall be determined by the commissioner based on the 198.25 funding previously distributed separately under sections 198.26 256.8711 and 256F.04. 198.27 Sec. 54. Minnesota Statutes 1996, section 256F.05, 198.28 subdivision 4, is amended to read: 198.29 Subd. 4. [PAYMENTS.] The commissioner shall make grant 198.30 payments to each county whose biennial community social services 198.31 plan has been approved under section 256F.04, subdivision 2. 198.32 Thebasicgrantunder subdivisions 2 and 3 and the development198.33grant under section 256.8711, subdivision 6a,shall be paid to 198.34 counties in four installments per year. The commissioner may 198.35 certify the payments for the first three months of a calendar 198.36 year. Subsequent payments shall be based on reported 199.1 expenditures and may be adjusted for anticipated spending 199.2 patterns.The placement earnings grant under section 256.8711,199.3subdivision 6b, paragraph (a), shall be based on earnings and199.4coordinated with the other payments. In calendar years 1996 and199.51997, the placement earnings grant and the development grant199.6shall be distributed separately from the basic grant, except as199.7provided in subdivision 7, paragraph (a). Beginning with199.8calendar year 1998, after each annual or quarterly calculation,199.9these three component grants shall be added together into a199.10single family preservation fund grant and treated as a single199.11grant.199.12 Sec. 55. Minnesota Statutes 1996, section 256F.05, 199.13 subdivision 8, is amended to read: 199.14 Subd. 8. [USES OF FAMILY PRESERVATION FUND GRANTS.]For199.15both basic grants and single family preservation fund grants:199.16 (a) A county which has not demonstrated that year that its 199.17 family preservation core services are developed as provided in 199.18 subdivision 1a, must use its family preservation fund grant 199.19 exclusively for family preservation services defined in section 199.20 256F.03, subdivision 5, paragraphs (a), (b), (c), and (e). 199.21 (b) A county which has demonstrated that year that its 199.22 family preservation core services are developed becomes eligible 199.23 either to continue using its family preservation fund grant as 199.24 provided in paragraph (a), or to exercise the expanded service 199.25 option under paragraph (c). 199.26 (c) The expanded service option permits an eligible county 199.27 to use its family preservation fund grant for child welfare 199.28preventativepreventive servicesas defined in section 256F.10,199.29subdivision 7, paragraph (d). For purposes of this section, 199.30 child welfare preventive services are those services directed 199.31 toward a specific child or family that further the goals of 199.32 section 256F.01 and include assessments, family preservation 199.33 services, service coordination, community-based treatment, 199.34 crisis nursery services when the parents retain custody and 199.35 there is no voluntary placement agreement with a child-placing 199.36 agency, respite care except when it is provided under a medical 200.1 assistance waiver, home-based services, and other related 200.2 services. For purposes of this section, child welfare 200.3 preventive services shall not include shelter care or other 200.4 placement services under the authority of the court or public 200.5 agency to address an emergency. To exercise this option, an 200.6 eligible county must notify the commissioner in writing of its 200.7 intention to do so no later than 30 days into the quarter during 200.8 which it intends to begin or in its county plan, as provided in 200.9 section 256F.04, subdivision 2. Effective with the first day of 200.10 that quarter, the county must maintain its base level of 200.11 expenditures for child welfarepreventativepreventive services 200.12 and use the family preservation fund to expand them. The base 200.13 level of expenditures for a county shall be that established 200.14 under section 256F.10, subdivision 7. For counties which have 200.15 no such base established, a comparable base shall be established 200.16 with the base year being the calendar year ending at least two 200.17 calendar quarters before the first calendar quarter in which the 200.18 county exercises its expanded service option. The commissioner 200.19 shall, at the request of the counties, reduce, suspend, or 200.20 eliminate either or both of a county's obligations to continue 200.21 the base level of expenditures and to expand child welfare 200.22preventativepreventive servicesbased on conditions described200.23in section 256F.10, subdivision 7, paragraph (b) or (c)under 200.24 extraordinary circumstances. 200.25(d) Each county's placement earnings and development grant200.26shall be determined under section 256.8711, but after each200.27annual or quarterly calculation, if added to that county's basic200.28grant, the three component grants shall be treated as a single200.29family preservation fund grant.200.30 Sec. 56. Minnesota Statutes 1996, section 256F.06, 200.31 subdivision 1, is amended to read: 200.32 Subdivision 1. [RESPONSIBILITIES.] A county board may, 200.33 alone or in combination with other county boards, apply for a 200.34 family preservation fund grant as provided in section 256F.04, 200.35 subdivision 2. Upon approval of the grant, the county board may 200.36 contract for or directly provide family-based and other eligible 201.1 services. A county board may contract with or directly provide 201.2 eligible services to children and families through a local 201.3 collaborative. 201.4 Sec. 57. Minnesota Statutes 1996, section 256F.06, 201.5 subdivision 2, is amended to read: 201.6 Subd. 2. [DEVELOPING FAMILY PRESERVATION CORE SERVICES.]A201.7county board shall endeavor to develop and expand its family201.8preservation core services.When a county can demonstrate that 201.9 its family preservation core services are developed as provided 201.10 in section 256F.05, subdivision 1a, a county board becomes 201.11 eligible to exercise the expanded service option under section 201.12 256F.05, subdivision 8, paragraph (c).For calendar years 1996201.13and 1997, the county board also becomes eligible to request that201.14its basic, placement earnings, and development grants be added201.15into a single grant under section 256F.05, subdivision 7,201.16paragraph (a).201.17 Sec. 58. Minnesota Statutes 1996, section 256G.02, 201.18 subdivision 6, is amended to read: 201.19 Subd. 6. [EXCLUDED TIME.] "Excluded time" means: 201.20 (a) any period an applicant spends in a hospital, 201.21 sanitarium, nursing home, shelterother than an emergency201.22shelter, halfway house, foster home, semi-independent living 201.23 domicile or services program, residential facility offering 201.24 care, board and lodging facility or other institution for the 201.25 hospitalization or care of human beings, as defined in section 201.26 144.50, 144A.01, or 245A.02, subdivision 14; maternity home, 201.27battered women's shelter,or correctional facility; or any 201.28 facility based on an emergency hold under sections 253B.05, 201.29 subdivisions 1 and 2, and 253B.07, subdivision 6; 201.30 (b) any period an applicant spends on a placement basis in 201.31 a training and habilitation program, including a rehabilitation 201.32 facility or work or employment program as defined in section 201.33 268A.01; or receiving personal care assistant services pursuant 201.34 to section 256B.0627, subdivision 4; semi-independent living 201.35 services provided under section 252.275, and Minnesota Rules, 201.36 parts 9525.0500 to 9525.0660; day training and habilitation 202.1 programs, and community-based services and assisted living 202.2 services; and 202.3 (c) any placement for a person with an indeterminate 202.4 commitment, including independent living. 202.5 Sec. 59. Minnesota Statutes 1996, section 259.67, 202.6 subdivision 4, is amended to read: 202.7 Subd. 4. [ELIGIBILITY CONDITIONS.] (a) The placing agency 202.8 shalldetermineuse the AFDC requirements in effect on June 1, 202.9 1995, when determining the child's eligibility for adoption 202.10 assistance under title IV-E of the Social Security Act. If the 202.11 child does not qualify, the placing agency shall certify a child 202.12 as eligible for state funded adoption assistance only if the 202.13 following criteria are met: 202.14 (1) Due to the child's characteristics or circumstances it 202.15 would be difficult to provide the child an adoptive home without 202.16 adoption assistance. 202.17 (2)(i) A placement agency has made reasonable efforts to 202.18 place the child for adoption without adoption assistance, but 202.19 has been unsuccessful; or 202.20 (ii) the child's licensed foster parents desire to adopt 202.21 the child and it is determined by the placing agency that the 202.22 adoption is in the best interest of the child. 202.23 (3) The child has been a ward of the commissioner or a 202.24 Minnesota-licensed child-placing agency. 202.25 (b) For purposes of this subdivision, the characteristics 202.26 or circumstances that may be considered in determining whether a 202.27 child is a child with special needs under United States Code, 202.28 title 42, chapter 7, subchapter IV, part E, or meets the 202.29 requirements of paragraph (a), clause (1), are the following: 202.30 (1) The child is a member of a sibling group to be placed 202.31 as one unit in which at least one sibling is older than 15 202.32 months of age or is described in clause (2) or (3). 202.33 (2) The child has documented physical, mental, emotional, 202.34 or behavioral disabilities. 202.35 (3) The child has a high risk of developing physical, 202.36 mental, emotional, or behavioral disabilities. 203.1 (c) When a child's eligibility for adoption assistance is 203.2 based upon the high risk of developing physical, mental, 203.3 emotional, or behavioral disabilities, payments shall not be 203.4 made under the adoption assistance agreement unless and until 203.5 the potential disability manifests itself as documented by an 203.6 appropriate health care professional. 203.7 Sec. 60. [TRANSFER OF RESPONSIBILITIES FOR PROVIDING 203.8 SECURE CRISIS SHELTER.] 203.9 All of the powers, duties, and functions of the 203.10 commissioner of human services relating to the operation and 203.11 funding of shelters for battered women are transferred to the 203.12 commissioner of corrections in accordance with Minnesota 203.13 Statutes, section 15.039, except for personnel transfers under 203.14 Minnesota Statutes, section 15.039, subdivision 7. 203.15 Sec. 61. [FINDINGS; CONTINGENT BENEFIT STANDARDS.] 203.16 The legislature makes the following findings: 203.17 (a) The legislature is statutorily required to balance the 203.18 state budget. 203.19 (b) The task of balancing the state budget is made 203.20 difficult in the area of the new federal welfare reform program 203.21 for the needy due to the dramatic change in program design that 203.22 this state and all other states must experience, rendering 203.23 historical data on client behavior, interstate migration, and 203.24 welfare spending patterns of dubious value. 203.25 (c) Many states have more restrictive or nonexistent state 203.26 welfare programs to aid needy individuals without children. 203.27 (d) Within the state's limited resources, the legislature 203.28 wishes to manage funds appropriated under this part to best 203.29 provide for needy Minnesotans. 203.30 (e) To that end, the legislature has adopted a policy in 203.31 Minnesota Statutes, section 256D.066, of providing households of 203.32 needy individuals or couples without children in which no 203.33 mandatory member has resided in Minnesota for the previous 12 203.34 months a benefit based on the grant the household would have 203.35 received had it applied for benefits in its previous state of 203.36 residence. 204.1 (f) Therefore, if the policy designed to make welfare 204.2 benefits a neutral factor in the decision to move to Minnesota 204.3 and to best manage the benefit appropriation for needy 204.4 Minnesotans, while providing a safety net for recent interstate 204.5 migrants, is enjoined or otherwise prevented from being 204.6 implemented, the following benefit standards replace those in 204.7 Minnesota Statutes, section 256D.01: 204.8 ELIGIBLE PERSONS MONTHLY STANDARD 204.9 Minor not living with parent, $116 204.10 stepparent, or legal custodian 204.11 Married couple with no children $121 204.12 First Adult Standard $ 87 204.13 Second Adult Standard $ 34 204.14 If one adult of a married couple is not 204.15 included in the GA unit for any reason, 204.16 use the second adult standard for the 204.17 remaining member. 204.18 One adult not living with parent; $ 94 204.19 one adult living with parent(s) who have no 204.20 minor children; or an emancipated minor 204.21 One adult living with parent(s) 204.22 and the parent's one minor child $ 44 204.23 and the parent's two minor children $ 41 204.24 and the parent's three minor children $ 35 204.25 and the parent's four minor children $ 35 204.26 and the parent's five minor children $ 36 204.27 and the parent's six minor children $ 31 204.28 and the parent's seven minor children $ 30 204.29 and the parent's eight minor children $ 26 204.30 and the parent's nine minor children $ 25 204.31 and the parent's ten minor children $ 25 204.32 Sec. 62. [REPEALER.] 204.33 Minnesota Statutes 1996, sections 256.8711; 256D.02, 204.34 subdivision 5; 256D.05, subdivisions 3 and 3a; 256D.0511; 204.35 256D.065; and 256F.05, subdivisions 5 and 7, are repealed. 204.36 Sec. 63. [EFFECTIVE DATES.] 204.37 Subdivision 1. [DATES RELATED TO MFIP FIELD TRIAL.] From 204.38 January 1, 1998, to March 31, 1998, Minnesota Statutes 1996, 204.39 sections 256.736, 256.737, 256.738, and 256.739 are effective 204.40 only in counties that operate an MFIP field trial that continues 204.41 to provide STRIDE services to members of the MFIP control group 204.42 and in those counties that have not completed conversion to 204.43 MFIP-S employment and training services. From April 1, 1998, to 204.44 June 30, 1998, these statutes are effective only in counties 205.1 that operate an MFIP field trial that continues to provide 205.2 STRIDE services to members of the control group. These statutes 205.3 are repealed effective June 30, 1998. 205.4 Subd. 2. [GENERAL EFFECTIVE DATE.] Sections 1 to 62 are 205.5 effective July 1, 1997. 205.6 ARTICLE 4 205.7 TECHNICAL CHANGES; CROSS REFERENCES 205.8 Section 1. Minnesota Statutes 1996, section 13.46, 205.9 subdivision 1, is amended to read: 205.10 Subdivision 1. [DEFINITIONS.] As used in this section: 205.11 (a) "Individual" means an individualpursuantaccording to 205.12 section 13.02, subdivision 8, but does not include a vendor of 205.13 services. 205.14 (b) "Program" includes all programs for which authority is 205.15 vested in a component of the welfare systempursuantaccording 205.16 to statute or federal law, including, but not limited to,aid to205.17families with dependent childrenMinnesota family investment 205.18 program-statewide, medical assistance, general assistance,work205.19readiness,general assistance medical care, and child support 205.20 collections. 205.21 (c) "Welfare system" includes the department of human 205.22 services, local social services agencies, county welfare 205.23 agencies, the public authority responsible for child support 205.24 enforcement, human services boards, community mental health 205.25 center boards, state hospitals, state nursing homes, the 205.26 ombudsman for mental health and mental retardation, and persons, 205.27 agencies, institutions, organizations, and other entities under 205.28 contract to any of the above agencies to the extent specified in 205.29 the contract. 205.30 (d) "Mental health data" means data on individual clients 205.31 and patients of community mental health centers, established 205.32 under section 245.62, mental health divisions of counties and 205.33 other providers under contract to deliver mental health 205.34 services, or the ombudsman for mental health and mental 205.35 retardation. 205.36 (e) "Fugitive felon" means a person who has been convicted 206.1 of a felony and who has escaped from confinement or violated the 206.2 terms of probation or parole for that offense. 206.3 Sec. 2. Minnesota Statutes 1996, section 13.46, 206.4 subdivision 2, is amended to read: 206.5 Subd. 2. [GENERAL.] (a) Unless the data is summary data or 206.6 a statute specifically provides a different classification, data 206.7 on individuals collected, maintained, used, or disseminated by 206.8 the welfare system is private data on individuals, and shall not 206.9 be disclosed except: 206.10 (1)pursuantaccording to section 13.05; 206.11 (2)pursuantaccording to court order; 206.12 (3)pursuantaccording to a statute specifically 206.13 authorizing access to the private data; 206.14 (4) to an agent of the welfare system, including a law 206.15 enforcement person, attorney, or investigator acting for it in 206.16 the investigation or prosecution of a criminal or civil 206.17 proceeding relating to the administration of a program; 206.18 (5) to personnel of the welfare system who require the data 206.19 to determine eligibility, amount of assistance, and the need to 206.20 provide services of additional programs to the individual; 206.21 (6) to administer federal funds or programs; 206.22 (7) between personnel of the welfare system working in the 206.23 same program; 206.24 (8) the amounts of cash public assistance and relief paid 206.25 to welfare recipients in this state, including their names, 206.26 social security numbers, income, addresses, and other data as 206.27 required, upon request by the department of revenue to 206.28 administer the property tax refund law, supplemental housing 206.29 allowance, early refund of refundable tax credits, and the 206.30 income tax. "Refundable tax credits" means the dependent care 206.31 credit under section 290.067, the Minnesota working family 206.32 credit under section 290.0671, the property tax refund under 206.33 section 290A.04, and, if the required federal waiver or waivers 206.34 are granted, the federal earned income tax credit under section 206.35 32 of the Internal Revenue Code; 206.36 (9) to the Minnesota department of economic security for 207.1 the purpose of monitoring the eligibility of the data subject 207.2 for reemployment insurance, for any employment or training 207.3 program administered, supervised, or certified by that agency, 207.4 or for the purpose of administering any rehabilitation program, 207.5 whether alone or in conjunction with the welfare system, and to 207.6 verify receipt of energy assistance for the telephone assistance 207.7 plan; 207.8 (10) to appropriate parties in connection with an emergency 207.9 if knowledge of the information is necessary to protect the 207.10 health or safety of the individual or other individuals or 207.11 persons; 207.12 (11) data maintained by residential programs as defined in 207.13 section 245A.02 may be disclosed to the protection and advocacy 207.14 system established in this statepursuantaccording to Part C of 207.15 Public Law Number 98-527 to protect the legal and human rights 207.16 of persons with mental retardation or other related conditions 207.17 who live in residential facilities for these persons if the 207.18 protection and advocacy system receives a complaint by or on 207.19 behalf of that person and the person does not have a legal 207.20 guardian or the state or a designee of the state is the legal 207.21 guardian of the person; 207.22 (12) to the county medical examiner or the county coroner 207.23 for identifying or locating relatives or friends of a deceased 207.24 person; 207.25 (13) data on a child support obligor who makes payments to 207.26 the public agency may be disclosed to the higher education 207.27 services office to the extent necessary to determine eligibility 207.28 under section 136A.121, subdivision 2, clause (5); 207.29 (14) participant social security numbers and names 207.30 collected by the telephone assistance program may be disclosed 207.31 to the department of revenue to conduct an electronic data match 207.32 with the property tax refund database to determine eligibility 207.33 under section 237.70, subdivision 4a; 207.34 (15) the current address of a recipient ofaid to families207.35with dependent childrenMinnesota family investment 207.36 program-statewide may be disclosed to law enforcement officers 208.1 who provide the name and social security number of the recipient 208.2 and satisfactorily demonstrate that: (i) the recipient is a 208.3 fugitive felon, including the grounds for this determination; 208.4 (ii) the location or apprehension of the felon is within the law 208.5 enforcement officer's official duties; and (iii) the request is 208.6 made in writing and in the proper exercise of those duties; 208.7 (16) the current address of a recipient of general 208.8 assistance, work readiness,or general assistance medical care 208.9 may be disclosed to probation officers and corrections agents 208.10 who are supervising the recipient, and to law enforcement 208.11 officers who are investigating the recipient in connection with 208.12 a felony level offense; 208.13 (17) information obtained from food stamp applicant or 208.14 recipient households may be disclosed to local, state, or 208.15 federal law enforcement officials, upon their written request, 208.16 for the purpose of investigating an alleged violation of the 208.17 food stamp act,in accordance withaccording to Code of Federal 208.18 Regulations, title 7, section 272.1(c); 208.19 (18) data on a child support obligor who is in arrears may 208.20 be disclosed for purposes of publishing the datapursuant208.21 according to section 518.575; 208.22 (19) data on child support payments made by a child support 208.23 obligor may be disclosed to the obligee; 208.24 (20) data in the work reporting system may be disclosed 208.25 under section 256.998, subdivision 7; 208.26 (21) to the department of children, families, and learning 208.27 for the purpose of matching department of children, families, 208.28 and learning student data with public assistance data to 208.29 determine students eligible for free and reduced price meals, 208.30 meal supplements, and free milkpursuantaccording to United 208.31 States Code, title 42, sections 1758, 1761, 1766, 1766a, 1772, 208.32 and 1773; to produce accurate numbers of students receivingaid208.33to families with dependent childrenMinnesota family investment 208.34 program-statewide as required by section 124.175; and to 208.35 allocate federal and state funds that are distributed based on 208.36 income of the student's family; or 209.1 (22) the current address and telephone number of program 209.2 recipients and emergency contacts may be released to the 209.3 commissioner of health or a local board of health as defined in 209.4 section 145A.02, subdivision 2, when the commissioner or local 209.5 board of health has reason to believe that a program recipient 209.6 is a disease case, carrier, suspect case, or at risk of illness, 209.7 and the data are necessary to locate the person. 209.8 (b) Information on persons who have been treated for drug 209.9 or alcohol abuse may only be disclosedin accordance with209.10 according to the requirements of Code of Federal Regulations, 209.11 title 42, sections 2.1 to 2.67. 209.12 (c) Data provided to law enforcement agencies under 209.13 paragraph (a), clause (15), (16), or (17), or paragraph (b), are 209.14 investigative data and are confidential or protected nonpublic 209.15 while the investigation is active. The data are private after 209.16 the investigation becomes inactive under section 13.82, 209.17 subdivision 5, paragraph (a) or (b). 209.18 (d) Mental health data shall be treated as provided in 209.19 subdivisions 7, 8, and 9, but is not subject to the access 209.20 provisions of subdivision 10, paragraph (b). 209.21 Sec. 3. Minnesota Statutes 1996, section 84.98, 209.22 subdivision 3, is amended to read: 209.23 Subd. 3. [CRITERIA FOR DETERMINING ECONOMIC, SOCIAL, 209.24 PHYSICAL, OR EDUCATIONAL DISADVANTAGE.] (a) The criteria for 209.25 determining economic, social, physical, or educational 209.26 disadvantage shall be determined as provided in this subdivision. 209.27 (b) Economically disadvantaged are persons who meet the 209.28 criteria for disadvantaged established by the department of 209.29 economic security or persons receiving services provided by the 209.30 department of human services such as welfare payments, food 209.31 stamps, andaid to families with dependent childrenMinnesota 209.32 family investment program-statewide. 209.33 (c) Socially disadvantaged are persons who have been 209.34 classified as persons in need of supervision by the court system. 209.35 (d) Physically disadvantaged are persons who have been 209.36 identified as having special needs by public agencies that deal 210.1 with employment for the disabled. 210.2 (e) Educationally disadvantaged are persons who have 210.3 dropped out of school or are at risk of dropping out of school 210.4 and persons with learning disabilities or in need of special 210.5 education classes. 210.6 Sec. 4. Minnesota Statutes 1996, section 124.17, 210.7 subdivision 1d, is amended to read: 210.8 Subd. 1d. [AFDCMFIP-S PUPIL UNITS.]AFDCMFIP-S pupil 210.9 units for fiscal year 1993 and thereafter must be computed 210.10 according to this subdivision. 210.11 (a) TheAFDCMFIP-S concentration percentage for a district 210.12 equals the product of 100 times the ratio of: 210.13 (1) the number of pupils enrolled in the district from 210.14 families receivingaid to families with dependent children210.15 Minnesota family investment program-statewide according to 210.16 subdivision 1e; to 210.17 (2) the number of pupils in average daily membership 210.18 according to subdivision 1e enrolled in the district. 210.19 (b) TheAFDCMFIP-S pupil weighting factor for a district 210.20 equals the lesser of one or the quotient obtained by dividing 210.21 the district'sAFDCMFIP-S concentration percentage by 11.5. 210.22 (c) TheAFDCMFIP-S pupil units for a district for fiscal 210.23 year 1993 and thereafter equals the product of: 210.24 (1) the number of pupils enrolled in the district from 210.25 families receivingaid to families with dependent children210.26 Minnesota family investment program-statewide according to 210.27 subdivision 1e; times 210.28 (2) theAFDCMFIP-S pupil weighting factor for the 210.29 district; times 210.30 (3) .67. 210.31 Sec. 5. Minnesota Statutes 1996, section 124.17, 210.32 subdivision 1e, is amended to read: 210.33 Subd. 1e. [AFDCMFIP-S PUPIL COUNTS.]AFDCMFIP-S pupil 210.34 counts and average daily membership for subdivisions 1b and 1d 210.35 shall be determined according to this subdivision: 210.36 (a) For districts where the number of pupils from families 211.1 receivingaid to families with dependent childrenMinnesota 211.2 family investment program-statewide has increased over the 211.3 preceding year for each of the two previous years, the number of 211.4 pupils enrolled in the district from families receivingaid to211.5families with dependent childrenMinnesota family investment 211.6 program-statewide shall be those counted on October 1 of the 211.7 previous school year. The average daily membership used shall 211.8 be from the previous school year. 211.9 (b) For districts that do not meet the requirement of 211.10 paragraph (a), the number of pupils enrolled in the district 211.11 from families receivingaid to families with dependent children211.12 Minnesota family investment program-statewide shall be the 211.13 average number of pupils on October 1 of the second previous 211.14 school year and October 1 of the previous school year. The 211.15 average daily membership used shall be the average number 211.16 enrolled in the previous school year and the second previous 211.17 school year. 211.18 (c) Notwithstanding paragraphs (a) and (b), for charter 211.19 schools in the first three years of operation, the number of 211.20 pupils enrolled from families receivingAFDCMFIP-S shall be 211.21 those counted on October 1 of the current school year. The 211.22 average daily membership used shall be from the current school 211.23 year. 211.24 Sec. 6. Minnesota Statutes 1996, section 124.175, is 211.25 amended to read: 211.26 124.175 [AFDC PUPIL COUNT.] 211.27 Each year by March 1, the department of human services 211.28 shall certify to the department of children, families, and 211.29 learning, for each school district, the number of pupils from 211.30 families receivingaid to families with dependent children211.31 Minnesota family investment program-statewide who were enrolled 211.32 in a public school on October 1 of the preceding year. 211.33 Sec. 7. Minnesota Statutes 1996, section 124A.02, 211.34 subdivision 16, is amended to read: 211.35 Subd. 16. [PUPIL UNITS,AFDCMFIP-S.] "AFDCMFIP-S pupil 211.36 units" for fiscal year 1993 and thereafter means pupil units 212.1 identified in section 124.17, subdivision 1d. 212.2 Sec. 8. Minnesota Statutes 1996, section 124A.22, 212.3 subdivision 3, is amended to read: 212.4 Subd. 3. [COMPENSATORY EDUCATION REVENUE.] The 212.5 compensatory education revenue for each district equals the 212.6 formula allowance less $300 times theAFDCMFIP-S pupil units 212.7 computed according to section 124.17, subdivision 1d. 212.8 Sec. 9. Minnesota Statutes 1996, section 136A.125, 212.9 subdivision 2, is amended to read: 212.10 Subd. 2. [ELIGIBLE STUDENTS.] An applicant is eligible for 212.11 a child care grant if the applicant: 212.12 (1) is a resident of the state of Minnesota; 212.13 (2) has a child 12 years of age or younger, or 14 years of 212.14 age or younger who is handicapped as defined in section 120.03, 212.15 and who is receiving or will receive care on a regular basis 212.16 from a licensed or legal, nonlicensed caregiver; 212.17 (3) is income eligible as determined by the office's 212.18 policies and rules, but is not a recipient ofaid to families212.19with dependent childrenMinnesota family investment 212.20 program-statewide; 212.21 (4) has not earned a baccalaureate degree and has been 212.22 enrolled full time less than eight semesters, 12 quarters, or 212.23 the equivalent; 212.24 (5) is pursuing a nonsectarian program or course of study 212.25 that applies to an undergraduate degree, diploma, or 212.26 certificate; 212.27 (6) is enrolled at least half time in an eligible 212.28 institution; and 212.29 (7) is in good academic standing and making satisfactory 212.30 academic progress. 212.31 Sec. 10. Minnesota Statutes 1996, section 196.27, is 212.32 amended to read: 212.33 196.27 [AGENT ORANGE SETTLEMENT PAYMENTS.] 212.34 (a) Payments received by veterans or their dependents 212.35 because of settlements between them and the manufacturers of 212.36 Agent Orange or other chemical agents, as defined in section 213.1 196.21, must not be treated as income (or an available resource) 213.2 of the veterans or their dependents for the purposes of any 213.3 program of public assistance or benefit program administered by 213.4 the department of veterans affairs, the department of human 213.5 services, or other agencies of the state or political 213.6 subdivisions of the state, except as provided in paragraph (b). 213.7 (b) The income and resource exclusion in paragraph (a) does 213.8 not apply to the medical assistance, food stamps, oraid to213.9families with dependent childrenMinnesota family investment 213.10 program-statewide programs until the commissioner of human 213.11 services receives formal approval from the United States 213.12 Department of Health and Human Services, for the medical 213.13 assistance andaid to families with dependent childrenMinnesota 213.14 family investment program-statewide programs, and from the 213.15 United States Department of Agriculture, for the food stamps 213.16 program. The income exclusion does not apply to the Minnesota 213.17 supplemental aid program until the commissioner receives formal 213.18 federal approval of the exclusion for the medical assistance 213.19 program. 213.20 Sec. 11. Minnesota Statutes 1996, section 237.70, 213.21 subdivision 4a, is amended to read: 213.22 Subd. 4a. [HOUSEHOLDS ELIGIBLE FOR CREDITS.] The telephone 213.23 assistance plan must provide telephone assistance credit for a 213.24 residential household in Minnesota that meets each of the 213.25 following criteria: 213.26 (1) has a household member who: 213.27 (i) subscribes to local exchange service; and 213.28 (ii) is either disabled or 65 years of age or older; 213.29 (2) whose household income is 150 percent or less of 213.30 federal poverty guidelines or is currently eligible for: 213.31 (i)aid to families with dependent childrenMinnesota 213.32 family investment program-statewide; 213.33 (ii) medical assistance; 213.34 (iii) general assistance; 213.35 (iv) Minnesota supplemental aid; 213.36 (v) food stamps; 214.1 (vi) refugee cash assistance or refugee medical assistance; 214.2 (vii) energy assistance; or 214.3 (viii) supplemental security income; and 214.4 (3) who has been certified as eligible for telephone 214.5 assistance plan credits. 214.6 Sec. 12. Minnesota Statutes 1996, section 254B.02, 214.7 subdivision 1, is amended to read: 214.8 Subdivision 1. [CHEMICAL DEPENDENCY TREATMENT ALLOCATION.] 214.9 The chemical dependency funds appropriated for allocation shall 214.10 be placed in a special revenue account. For the fiscal year 214.11 beginning July 1, 1987, funds shall be transferred to operate 214.12 the vendor payment, invoice processing, and collections system 214.13 for one year. The commissioner shall annually transfer funds 214.14 from the chemical dependency fund to pay for operation of the 214.15 drug and alcohol abuse normative evaluation system and to pay 214.16 for all costs incurred by adding two positions for licensing of 214.17 chemical dependency treatment and rehabilitation programs 214.18 located in hospitals for which funds are not otherwise 214.19 appropriated. The commissioner shall annually divide the money 214.20 available in the chemical dependency fund that is not held in 214.21 reserve by counties from a previous allocation. Twelve percent 214.22 of the remaining money must be reserved for treatment of 214.23 American Indians by eligible vendors under section 254B.05. The 214.24 remainder of the money must be allocated among the counties 214.25 according to the following formula, using state demographer data 214.26 and other data sources determined by the commissioner: 214.27 (a) For purposes of this formula, American Indians and 214.28 children under age 14 are subtracted from the population of each 214.29 county to determine the restricted population. 214.30 (b) The amount of chemical dependency fund expenditures for 214.31 entitled persons for services not covered by prepaid plans 214.32 governed by section 256B.69 in the previous year is divided by 214.33 the amount of chemical dependency fund expenditures for entitled 214.34 persons for all services to determine the proportion of exempt 214.35 service expenditures for each county. 214.36 (c) The prepaid plan months of eligibility is multiplied by 215.1 the proportion of exempt service expenditures to determine the 215.2 adjusted prepaid plan months of eligibility for each county. 215.3 (d) The adjusted prepaid plan months of eligibility is 215.4 added to the number of restricted population fee for service 215.5 months of eligibility foraid to families with dependent215.6childrenMinnesota family investment program-statewide, general 215.7 assistance, and medical assistance and divided by the county 215.8 restricted population to determine county per capita months of 215.9 covered service eligibility. 215.10 (e) The number of adjusted prepaid plan months of 215.11 eligibility for the state is added to the number of fee for 215.12 service months of eligibility foraid to families with dependent215.13childrenMinnesota family investment program-statewide, general 215.14 assistance, and medical assistance for the state restricted 215.15 population and divided by the state restricted population to 215.16 determine state per capita months of covered service eligibility. 215.17 (f) The county per capita months of covered service 215.18 eligibility is divided by the state per capita months of covered 215.19 service eligibility to determine the county welfare caseload 215.20 factor. 215.21 (g) The median married couple income for the most recent 215.22 three-year period available for the state is divided by the 215.23 median married couple income for the same period for each county 215.24 to determine the income factor for each county. 215.25 (h) The county restricted population is multiplied by the 215.26 sum of the county welfare caseload factor and the county income 215.27 factor to determine the adjusted population. 215.28 (i) $15,000 shall be allocated to each county. 215.29 (j) The remaining funds shall be allocated proportional to 215.30 the county adjusted population. 215.31 Sec. 13. Minnesota Statutes 1996, section 256.01, 215.32 subdivision 2, is amended to read: 215.33 Subd. 2. [SPECIFIC POWERS.] Subject to the provisions of 215.34 section 241.021, subdivision 2, the commissioner of human 215.35 services shall: 215.36 (1) Administer and supervise all forms of public assistance 216.1 provided for by state law and other welfare activities or 216.2 services as are vested in the commissioner. Administration and 216.3 supervision of human services activities or services includes, 216.4 but is not limited to, assuring timely and accurate distribution 216.5 of benefits, completeness of service, and quality program 216.6 management. In addition to administering and supervising human 216.7 services activities vested by law in the department, the 216.8 commissioner shall have the authority to: 216.9 (a) require county agency participation in training and 216.10 technical assistance programs to promote compliance with 216.11 statutes, rules, federal laws, regulations, and policies 216.12 governing human services; 216.13 (b) monitor, on an ongoing basis, the performance of county 216.14 agencies in the operation and administration of human services, 216.15 enforce compliance with statutes, rules, federal laws, 216.16 regulations, and policies governing welfare services and promote 216.17 excellence of administration and program operation; 216.18 (c) develop a quality control program or other monitoring 216.19 program to review county performance and accuracy of benefit 216.20 determinations; 216.21 (d) require county agencies to make an adjustment to the 216.22 public assistance benefits issued to any individual consistent 216.23 with federal law and regulation and state law and rule and to 216.24 issue or recover benefits as appropriate; 216.25 (e) delay or deny payment of all or part of the state and 216.26 federal share of benefits and administrative reimbursement 216.27 according to the procedures set forth in section 256.017; and 216.28 (f) make contracts with and grants to public and private 216.29 agencies and organizations, both profit and nonprofit, and 216.30 individuals, using appropriated funds. 216.31 (2) Inform county agencies, on a timely basis, of changes 216.32 in statute, rule, federal law, regulation, and policy necessary 216.33 to county agency administration of the programs. 216.34 (3) Administer and supervise all child welfare activities; 216.35 promote the enforcement of laws protecting handicapped, 216.36 dependent, neglected and delinquent children, and children born 217.1 to mothers who were not married to the children's fathers at the 217.2 times of the conception nor at the births of the children; 217.3 license and supervise child-caring and child-placing agencies 217.4 and institutions; supervise the care of children in boarding and 217.5 foster homes or in private institutions; and generally perform 217.6 all functions relating to the field of child welfare now vested 217.7 in the state board of control. 217.8 (4) Administer and supervise all noninstitutional service 217.9 to handicapped persons, including those who are visually 217.10 impaired, hearing impaired, or physically impaired or otherwise 217.11 handicapped. The commissioner may provide and contract for the 217.12 care and treatment of qualified indigent children in facilities 217.13 other than those located and available at state hospitals when 217.14 it is not feasible to provide the service in state hospitals. 217.15 (5) Assist and actively cooperate with other departments, 217.16 agencies and institutions, local, state, and federal, by 217.17 performing services in conformity with the purposes of Laws 217.18 1939, chapter 431. 217.19 (6) Act as the agent of and cooperate with the federal 217.20 government in matters of mutual concern relative to and in 217.21 conformity with the provisions of Laws 1939, chapter 431, 217.22 including the administration of any federal funds granted to the 217.23 state to aid in the performance of any functions of the 217.24 commissioner as specified in Laws 1939, chapter 431, and 217.25 including the promulgation of rules making uniformly available 217.26 medical care benefits to all recipients of public assistance, at 217.27 such times as the federal government increases its participation 217.28 in assistance expenditures for medical care to recipients of 217.29 public assistance, the cost thereof to be borne in the same 217.30 proportion as are grants of aid to said recipients. 217.31 (7) Establish and maintain any administrative units 217.32 reasonably necessary for the performance of administrative 217.33 functions common to all divisions of the department. 217.34 (8) Act as designated guardian of both the estate and the 217.35 person of all the wards of the state of Minnesota, whether by 217.36 operation of law or by an order of court, without any further 218.1 act or proceeding whatever, except as to persons committed as 218.2 mentally retarded. 218.3 (9) Act as coordinating referral and informational center 218.4 on requests for service for newly arrived immigrants coming to 218.5 Minnesota. 218.6 (10) The specific enumeration of powers and duties as 218.7 hereinabove set forth shall in no way be construed to be a 218.8 limitation upon the general transfer of powers herein contained. 218.9 (11) Establish county, regional, or statewide schedules of 218.10 maximum fees and charges which may be paid by county agencies 218.11 for medical, dental, surgical, hospital, nursing and nursing 218.12 home care and medicine and medical supplies under all programs 218.13 of medical care provided by the state and for congregate living 218.14 care under the income maintenance programs. 218.15 (12) Have the authority to conduct and administer 218.16 experimental projects to test methods and procedures of 218.17 administering assistance and services to recipients or potential 218.18 recipients of public welfare. To carry out such experimental 218.19 projects, it is further provided that the commissioner of human 218.20 services is authorized to waive the enforcement of existing 218.21 specific statutory program requirements, rules, and standards in 218.22 one or more counties. The order establishing the waiver shall 218.23 provide alternative methods and procedures of administration, 218.24 shall not be in conflict with the basic purposes, coverage, or 218.25 benefits provided by law, and in no event shall the duration of 218.26 a project exceed four years. It is further provided that no 218.27 order establishing an experimental project as authorized by the 218.28 provisions of this section shall become effective until the 218.29 following conditions have been met: 218.30 (a) The proposed comprehensive plan, including estimated 218.31 project costs and the proposed order establishing the waiver, 218.32 shall be filed with the secretary of the senate and chief clerk 218.33 of the house of representatives at least 60 days prior to its 218.34 effective date. 218.35 (b) The secretary of health, education, and welfare of the 218.36 United States has agreed, for the same project, to waive state 219.1 plan requirements relative to statewide uniformity. 219.2 (c) A comprehensive plan, including estimated project 219.3 costs, shall be approved by the legislative advisory commission 219.4 and filed with the commissioner of administration. 219.5 (13)In accordance withAccording to federal requirements, 219.6 establish procedures to be followed by local welfare boards in 219.7 creating citizen advisory committees, including procedures for 219.8 selection of committee members. 219.9 (14) Allocate federal fiscal disallowances or sanctions 219.10 which are based on quality control error rates for theaid to219.11families with dependent childrenMinnesota family investment 219.12 program-statewide, medical assistance, or food stamp program in 219.13 the following manner: 219.14 (a) One-half of the total amount of the disallowance shall 219.15 be borne by the county boards responsible for administering the 219.16 programs. For the medical assistance andAFDCMFIP-S programs, 219.17 disallowances shall be shared by each county board in the same 219.18 proportion as that county's expenditures for the sanctioned 219.19 program are to the total of all counties' expenditures for the 219.20AFDCMFIP-S and medical assistance programs. For the food stamp 219.21 program, sanctions shall be shared by each county board, with 50 219.22 percent of the sanction being distributed to each county in the 219.23 same proportion as that county's administrative costs for food 219.24 stamps are to the total of all food stamp administrative costs 219.25 for all counties, and 50 percent of the sanctions being 219.26 distributed to each county in the same proportion as that 219.27 county's value of food stamp benefits issued are to the total of 219.28 all benefits issued for all counties. Each county shall pay its 219.29 share of the disallowance to the state of Minnesota. When a 219.30 county fails to pay the amount due hereunder, the commissioner 219.31 may deduct the amount from reimbursement otherwise due the 219.32 county, or the attorney general, upon the request of the 219.33 commissioner, may institute civil action to recover the amount 219.34 due. 219.35 (b) Notwithstanding the provisions of paragraph (a), if the 219.36 disallowance results from knowing noncompliance by one or more 220.1 counties with a specific program instruction, and that knowing 220.2 noncompliance is a matter of official county board record, the 220.3 commissioner may require payment or recover from the county or 220.4 counties, in the manner prescribed in paragraph (a), an amount 220.5 equal to the portion of the total disallowance which resulted 220.6 from the noncompliance, and may distribute the balance of the 220.7 disallowance according to paragraph (a). 220.8 (15) Develop and implement special projects that maximize 220.9 reimbursements and result in the recovery of money to the 220.10 state. For the purpose of recovering state money, the 220.11 commissioner may enter into contracts with third parties. Any 220.12 recoveries that result from projects or contracts entered into 220.13 under this paragraph shall be deposited in the state treasury 220.14 and credited to a special account until the balance in the 220.15 account reaches $1,000,000. When the balance in the account 220.16 exceeds $1,000,000, the excess shall be transferred and credited 220.17 to the general fund. All money in the account is appropriated 220.18 to the commissioner for the purposes of this paragraph. 220.19 (16) Have the authority to make direct payments to 220.20 facilities providing shelter to women and their children 220.21pursuantaccording to section 256D.05, subdivision 3. Upon the 220.22 written request of a shelter facility that has been denied 220.23 payments under section 256D.05, subdivision 3, the commissioner 220.24 shall review all relevant evidence and make a determination 220.25 within 30 days of the request for review regarding issuance of 220.26 direct payments to the shelter facility. Failure to act within 220.27 30 days shall be considered a determination not to issue direct 220.28 payments. 220.29 (17) Have the authority to establish and enforce the 220.30 following county reporting requirements: 220.31 (a) The commissioner shall establish fiscal and statistical 220.32 reporting requirements necessary to account for the expenditure 220.33 of funds allocated to counties for human services programs. 220.34 When establishing financial and statistical reporting 220.35 requirements, the commissioner shall evaluate all reports, in 220.36 consultation with the counties, to determine if the reports can 221.1 be simplified or the number of reports can be reduced. 221.2 (b) The county board shall submit monthly or quarterly 221.3 reports to the department as required by the commissioner. 221.4 Monthly reports are due no later than 15 working days after the 221.5 end of the month. Quarterly reports are due no later than 30 221.6 calendar days after the end of the quarter, unless the 221.7 commissioner determines that the deadline must be shortened to 221.8 20 calendar days to avoid jeopardizing compliance with federal 221.9 deadlines or risking a loss of federal funding. Only reports 221.10 that are complete, legible, and in the required format shall be 221.11 accepted by the commissioner. 221.12 (c) If the required reports are not received by the 221.13 deadlines established in clause (b), the commissioner may delay 221.14 payments and withhold funds from the county board until the next 221.15 reporting period. When the report is needed to account for the 221.16 use of federal funds and the late report results in a reduction 221.17 in federal funding, the commissioner shall withhold from the 221.18 county boards with late reports an amount equal to the reduction 221.19 in federal funding until full federal funding is received. 221.20 (d) A county board that submits reports that are late, 221.21 illegible, incomplete, or not in the required format for two out 221.22 of three consecutive reporting periods is considered 221.23 noncompliant. When a county board is found to be noncompliant, 221.24 the commissioner shall notify the county board of the reason the 221.25 county board is considered noncompliant and request that the 221.26 county board develop a corrective action plan stating how the 221.27 county board plans to correct the problem. The corrective 221.28 action plan must be submitted to the commissioner within 45 days 221.29 after the date the county board received notice of noncompliance. 221.30 (e) The final deadline for fiscal reports or amendments to 221.31 fiscal reports is one year after the date the report was 221.32 originally due. If the commissioner does not receive a report 221.33 by the final deadline, the county board forfeits the funding 221.34 associated with the report for that reporting period and the 221.35 county board must repay any funds associated with the report 221.36 received for that reporting period. 222.1 (f) The commissioner may not delay payments, withhold 222.2 funds, or require repayment under paragraph (c) or (e) if the 222.3 county demonstrates that the commissioner failed to provide 222.4 appropriate forms, guidelines, and technical assistance to 222.5 enable the county to comply with the requirements. If the 222.6 county board disagrees with an action taken by the commissioner 222.7 under paragraph (c) or (e), the county board may appeal the 222.8 action according to sections 14.57 to 14.69. 222.9 (g) Counties subject to withholding of funds under 222.10 paragraph (c) or forfeiture or repayment of funds under 222.11 paragraph (e) shall not reduce or withhold benefits or services 222.12 to clients to cover costs incurred due to actions taken by the 222.13 commissioner under paragraph (c) or (e). 222.14 (18) Allocate federal fiscal disallowances or sanctions for 222.15 audit exceptions when federal fiscal disallowances or sanctions 222.16 are based on a statewide random sample for the foster care 222.17 program under title IV-E of the Social Security Act, United 222.18 States Code, title 42, in direct proportion to each county's 222.19 title IV-E foster care maintenance claim for that period. 222.20 Sec. 14. Minnesota Statutes 1996, section 256.01, 222.21 subdivision 4a, is amended to read: 222.22 Subd. 4a. [TECHNICAL ASSISTANCE FOR IMMUNIZATION 222.23 REMINDERS.] The state agency shall provide appropriate technical 222.24 assistance to county agencies to develop methods to have county 222.25 financial workers remind and encourage recipients ofaid to222.26families with dependent childrenMinnesota family investment 222.27 program-statewide, the Minnesota family investment plan, medical 222.28 assistance, family general assistance, or food stamps whose 222.29 assistance unit includes at least one child under the age of 222.30 five to have each young child immunized against childhood 222.31 diseases. The state agency must examine the feasibility of 222.32 utilizing the capacity of a statewide computer system to assist 222.33 county agency financial workers in performing this function at 222.34 appropriate intervals. 222.35 Sec. 15. Minnesota Statutes 1996, section 256.017, 222.36 subdivision 1, is amended to read: 223.1 Subdivision 1. [AUTHORITY AND PURPOSE.] The commissioner 223.2 shall administer a compliance system foraid to families with223.3dependent childrenMinnesota family investment 223.4 program-statewide, the food stamp program, emergency assistance, 223.5 general assistance,work readiness,medical assistance, general 223.6 assistance medical care, emergency general assistance, Minnesota 223.7 supplemental assistance, preadmission screening, and alternative 223.8 care grants under the powers and authorities named in section 223.9 256.01, subdivision 2. The purpose of the compliance system is 223.10 to permit the commissioner to supervise the administration of 223.11 public assistance programs and to enforce timely and accurate 223.12 distribution of benefits, completeness of service and efficient 223.13 and effective program management and operations, to increase 223.14 uniformity and consistency in the administration and delivery of 223.15 public assistance programs throughout the state, and to reduce 223.16 the possibility of sanctions and fiscal disallowances for 223.17 noncompliance with federal regulations and state statutes. 223.18 The commissioner shall utilize training, technical 223.19 assistance, and monitoring activities, as specified in section 223.20 256.01, subdivision 2, to encourage county agency compliance 223.21 with written policies and procedures. 223.22 Sec. 16. Minnesota Statutes 1996, section 256.017, 223.23 subdivision 4, is amended to read: 223.24 Subd. 4. [DETERMINING THE AMOUNT OF THE QUALITY CONTROL 223.25 CASE PENALTY.] (a) The amount of the quality control case 223.26 penalty is limited to the amount of the dollar error for the 223.27 quality control sample month in a reviewed case as determined by 223.28 the state quality control review procedures for theaid to223.29families with dependent childrenMinnesota family investment 223.30 program-statewide and food stamp programs or for any other 223.31 income transfer program for which the commissioner develops a 223.32 quality control program. 223.33 (b) Payment errors in medical assistance or any other 223.34 medical services program for which the department develops a 223.35 quality control program are subject to set rate penalties based 223.36 on the average cost of the specific quality control error 224.1 element for a sample review month for that household size and 224.2 status of institutionalization and as determined from state 224.3 quality control data in the preceding fiscal year for the 224.4 corresponding program. 224.5 (c) Errors identified in negative action cases, such as 224.6 incorrect terminations or denials of assistance are subject to 224.7 set rate penalties based on the average benefit cost of that 224.8 household size as determined from state quality control data in 224.9 the preceding fiscal year for the corresponding program. 224.10 Sec. 17. Minnesota Statutes 1996, section 256.019, is 224.11 amended to read: 224.12 256.019 [RECOVERY OF MONEY; APPORTIONMENT.] 224.13 When an amount is recovered from any source for assistance 224.14 given under the provisions governing public assistance programs 224.15 includingaid to families with dependent childrenMinnesota 224.16 family investment program-statewide, emergency assistance, 224.17 general assistance,work readiness,and Minnesota supplemental 224.18 aid, there shall be paid to the United States the amount due 224.19 under the terms of the Social Security Act and the balance must 224.20 be paid into the treasury of the state or countyin accordance224.21withaccording to current rates of financial participation; 224.22 except if the recovery is made by a county agency using any 224.23 method other than recoupment, the county may keep one-half of 224.24 the nonfederal share of the recovery. This does not apply to 224.25 recoveries from medical providers or to recoveries begun by the 224.26 department of human services' surveillance and utilization 224.27 review division, state hospital collections unit, and the 224.28 benefit recoveries division or, by the attorney general's 224.29 office, or child support collections. 224.30 Sec. 18. Minnesota Statutes 1996, section 256.031, 224.31 subdivision 5, is amended to read: 224.32 Subd. 5. [FEDERAL WAIVERS.]In accordance withAccording 224.33 to sections 256.031 to 256.0361 and federal laws authorizing the 224.34 program, the commissioner shall seek waivers of federal 224.35 requirements of: United States Code, title 42, section 601 et 224.36 seq., and United States Code, title 7, section 2011 et seq., 225.1 needed to implement the Minnesota family investment plan in a 225.2 manner consistent with the goals and objectives of the program. 225.3 The commissioner shall seek terms from the federal government 225.4 that are consistent with the goals of the Minnesota family 225.5 investment plan. The commissioner shall also seek terms from 225.6 the federal government that will maximize federal financial 225.7 participation so that the extra costs to the state of 225.8 implementing the program are minimized, to the extent that those 225.9 terms are consistent with the goals of the Minnesota family 225.10 investment plan. An agreement with the federal government under 225.11 this section shall provide that the agreements may be canceled 225.12 by the state or federal government upon 180 days' notice or 225.13 immediately upon mutual agreement. If the agreement is 225.14 canceled, families which cease receiving assistance under the 225.15 Minnesota family investment plan who are eligible for theaid to225.16families with dependent childrenMinnesota family investment 225.17 program-statewide, general assistance, medical assistance, 225.18 general assistance medical care, or the food stamp program must 225.19 be placed with their consent on the programs for which they are 225.20 eligible. 225.21 Sec. 19. Minnesota Statutes 1996, section 256.046, 225.22 subdivision 1, is amended to read: 225.23 Subdivision 1. [HEARING AUTHORITY.] A local agency may 225.24 initiate an administrative fraud disqualification hearing for 225.25 individuals accused of wrongfully obtaining assistance or 225.26 intentional program violations in theaid to families with225.27dependent childrenMinnesota family investment program-statewide 225.28 or food stamp programs. The hearing is subject to the 225.29 requirements of section 256.045 and the requirements in Code of 225.30 Federal Regulations, title 7, section 273.16, for the food stamp 225.31 program and title 45, section 235.112, for theaid to families225.32with dependent childrenMinnesota family investment 225.33 program-statewide program. 225.34 Sec. 20. Minnesota Statutes 1996, section 256.935, 225.35 subdivision 1, is amended to read: 225.36 Subdivision 1. On the death of any person receiving public 226.1 assistance throughaid to dependent childrenMFIP-S, the county 226.2 agency shall pay an amount for funeral expenses not exceeding 226.3 the amount paid for comparable services under section 261.035 226.4 plus actual cemetery charges. No funeral expenses shall be paid 226.5 if the estate of the deceased is sufficient to pay such expenses 226.6 or if the spouse, who was legally responsible for the support of 226.7 the deceased while living, is able to pay such expenses; 226.8 provided, that the additional payment or donation of the cost of 226.9 cemetery lot, interment, religious service, or for the 226.10 transportation of the body into or out of the community in which 226.11 the deceased resided, shall not limit payment by the county 226.12 agency as herein authorized. Freedom of choice in the selection 226.13 of a funeral director shall be granted to persons lawfully 226.14 authorized to make arrangements for the burial of any such 226.15 deceased recipient. In determining the sufficiency of such 226.16 estate, due regard shall be had for the nature and marketability 226.17 of the assets of the estate. The county agency may grant 226.18 funeral expenses where the sale would cause undue loss to the 226.19 estate. Any amount paid for funeral expenses shall be a prior 226.20 claim against the estate, as provided in section 524.3-805, and 226.21 any amount recovered shall be reimbursed to the agency which 226.22 paid the expenses. The commissioner shall specify requirements 226.23 for reports, including fiscal reports, according to section 226.24 256.01, subdivision 2, paragraph (17). The state share of 226.25 county agency expenditures shall be 50 percent and the county 226.26 share shall be 50 percent. Benefits shall be issued to 226.27 recipients by the state or county and funded according to 226.28 section 256.025, subdivision 3, subject to provisions of section 226.29 256.017. 226.30 Beginning July 1, 1991, the state will reimburse counties 226.31 according to the payment schedule set forth in section 256.025 226.32 for the county share of county agency expenditures made under 226.33 this subdivision from January 1, 1991, on. Payment under this 226.34 subdivision is subject to the provisions of section 256.017. 226.35 Sec. 21. Minnesota Statutes 1996, section 256.98, 226.36 subdivision 8, is amended to read: 227.1 Subd. 8. [DISQUALIFICATION FROM PROGRAM.] Any person found 227.2 to be guilty of wrongfully obtaining assistance by a federal or 227.3 state court or by an administrative hearing determination, or 227.4 waiver thereof, through a disqualification consent agreement, or 227.5 as part of any approved diversion plan under section 401.065 in 227.6 theaid to families with dependent childrenMinnesota family 227.7 investment program-statewide program, the food stamp program, 227.8 the Minnesota family investment plan, the general assistance or 227.9 family general assistance program, or the Minnesota supplemental 227.10 aid program, or the work readiness programshall be disqualified 227.11 from that program. The needs of that individual shall not be 227.12 taken into consideration in determining the grant level for that 227.13 assistance unit: 227.14 (1) for six months after the first offense; 227.15 (2) for 12 months after the second offense; and 227.16 (3) permanently after the third or subsequent offense. 227.17 The period of program disqualification shall begin on the 227.18 date stipulated on the advance notice of disqualification 227.19 without possibility of postponement for administrative stay or 227.20 administrative hearing and shall continue through completion 227.21 unless and until the findings upon which the sanctions were 227.22 imposed are reversed by a court of competent jurisdiction. The 227.23 period for which sanctions are imposed is not subject to 227.24 review. The sanctions provided under this subdivision are in 227.25 addition to, and not in substitution for, any other sanctions 227.26 that may be provided for by law for the offense involved. A 227.27 disqualification established through hearing or waiver shall 227.28 result in the disqualification period beginning immediately 227.29 unless the person has become otherwise ineligible for 227.30 assistance. If the person is ineligible for assistance, the 227.31 disqualification period begins when the person again meets the 227.32 eligibility criteria of the program from which they were 227.33 disqualified. 227.34 Sec. 22. Minnesota Statutes 1996, section 256.981, is 227.35 amended to read: 227.36 256.981 [TRAINING OF WELFARE FRAUD PROSECUTORS.] 228.1 The commissioner of human services shall, to the extent an 228.2 appropriation is provided for this purpose, contract with the 228.3 county attorney's council or other public or private entity 228.4 experienced in providing training for prosecutors to conduct 228.5 quarterly workshops and seminars focusing on currentaid to228.6families with dependent childrenMinnesota family investment 228.7 program-statewide program issues, other income maintenance 228.8 program changes, recovery issues, alternative sentencing 228.9 methods, use of technical aids for interviews and 228.10 interrogations, and other matters affecting prosecution of 228.11 welfare fraud cases. 228.12 Sec. 23. Minnesota Statutes 1996, section 256.983, 228.13 subdivision 1, is amended to read: 228.14 Subdivision 1. [PROGRAMS ESTABLISHED.] Within the limits 228.15 of available appropriations, and to the extent required or 228.16 authorized by applicable federal regulations, the commissioner 228.17 of human services shall require the establishment of fraud 228.18 prevention investigation programs in the seven counties 228.19 participating in the fraud prevention investigation pilot 228.20 project established under this section, and in 11 additional 228.21 Minnesota counties with the largestaid to families with228.22dependent childrenMinnesota family investment program-statewide 228.23 program caseloads as of July 1, 1991. If funds are sufficient, 228.24 the commissioner may also extend fraud prevention investigation 228.25 programs to: (1) other counties that have welfare fraud control 228.26 programs already in place based on enhanced funding contracts 228.27 covering the fraud investigation function; and (2) counties that 228.28 have the largest AFDC caseloads as of July 1, 1994, and are not 228.29 currently participating in the fraud prevention investigation 228.30 pilot project. The pilot project may be expanded provided the 228.31 expansion is budget neutral to the state. 228.32 Sec. 24. Minnesota Statutes 1996, section 256.983, 228.33 subdivision 4, is amended to read: 228.34 Subd. 4. [FUNDING.] (a) Every involved county agency shall 228.35 either have in place or obtain an approved contract which meets 228.36 all federal requirements necessary to obtain enhanced federal 229.1 funding for its welfare fraud control and fraud prevention 229.2 investigation programs. County agency reimbursement shall be 229.3 made through the settlement provisions applicable to theaid to229.4families with dependent childrenMinnesota family investment 229.5 program-statewide and food stamp programs. 229.6 (b) After allowing an opportunity to establish compliance, 229.7 the commissioner will deny administrative reimbursement if for 229.8 any three-month period during any grant year, a county agency 229.9 fails to comply with fraud investigation guidelines, or fails to 229.10 meet the cost-effectiveness standards developed by the 229.11 commissioner. This result is contingent on the commissioner 229.12 providing written notice, including an offer of technical 229.13 assistance, within 30 days of the end of the third or subsequent 229.14 month of noncompliance. The county agency shall be required to 229.15 submit a corrective action plan to the commissioner within 30 229.16 days of receipt of a notice of noncompliance. Failure to submit 229.17 a corrective action plan or, continued deviation from standards 229.18 of more than ten percent after submission of a corrective action 229.19 plan, will result in denial of funding for each subsequent month 229.20 during the grant year or billing the county agency for fraud 229.21 prevention investigation (FPI) service provided by the 229.22 commissioner. The denial of funding shall apply to the general 229.23 settlement received by the county agency on a quarterly basis 229.24 and shall not reduce the grant amount applicable to the FPI 229.25 project. 229.26 Sec. 25. Minnesota Statutes 1996, section 256.9850, is 229.27 amended to read: 229.28 256.9850 [IDENTITY VERIFICATION.] 229.29 The commissioner of human services shall seek from the 229.30 Secretary of Health and Human Services all necessary waivers of 229.31 the requirements of theprogram of AFDCMinnesota family 229.32 investment program-statewide, to enable the commissioner to 229.33 establish a statewide program to test the effectiveness of 229.34 identity verification systems in the electronic benefit transfer 229.35 systems in thestate AFDC programMinnesota family investment 229.36 program-statewide. Identity verification provisions shall be 230.1 added to the statewide requests for proposal on the expansion of 230.2 electronic benefit transfer systems in theAFDC program230.3 Minnesota family investment program-statewide. 230.4 Sec. 26. Minnesota Statutes 1996, section 256.9861, 230.5 subdivision 5, is amended to read: 230.6 Subd. 5. [FUNDING.] (a) Grant funds are intended to help 230.7 offset the reduction in federal financial participation to 50 230.8 percent and may be apportioned to the participating counties 230.9 whenever feasible, and within the commissioner's discretion, to 230.10 achieve this goal. State funding shall be made available 230.11 contingent on counties submitting a plan that is approved by the 230.12 department of human services. Failure or delay in obtaining 230.13 that approval shall not, however, eliminate the obligation to 230.14 maintain fraud control efforts at the January 1, 1995, level. 230.15 Additional counties may be added to the project to the extent 230.16 that funds are subsequently made available. Every involved 230.17 county must meet all federal requirements necessary to obtain 230.18 federal funding for its welfare fraud control and prevention 230.19 programs. County agency reimbursement shall be made through the 230.20 settlement provisions applicable to theAFDCMinnesota family 230.21 investment program-statewide and food stamp programs. 230.22 (b) Should a county agency fail to comply with the 230.23 standards set, or fail to meet cost-effectiveness standards 230.24 developed by the commissioner for three months during any grant 230.25 year, the commissioner shall deny reimbursement or 230.26 administrative costs, after allowing an opportunity to establish 230.27 compliance. 230.28 (c) Any denial of reimbursement under paragraph (b) is 230.29 contingent on the commissioner providing written notice, 230.30 including an offer of technical assistance, within 30 days of 230.31 the end of the third or subsequent months of noncompliance. The 230.32 county agency shall be required to submit a corrective action 230.33 plan to the commissioner within 30 days of receipt of a notice 230.34 of noncompliance. Failure to submit a corrective action plan or 230.35 continued deviation from standards of more than ten percent 230.36 after submission of corrective action plan, will result in 231.1 denial of funding for each such month during the grant year, or 231.2 billing the county agency for program integrity reinvestment 231.3 project services provided by the commissioner. The denial of 231.4 funding shall apply to the general settlement received by the 231.5 county agency on a quarterly basis and shall not reduce the 231.6 grant amount applicable to the program integrity reinvestment 231.7 project. 231.8 Sec. 27. Minnesota Statutes 1996, section 256E.03, 231.9 subdivision 2, is amended to read: 231.10 Subd. 2. (a) "Community social services" means services 231.11 provided or arranged for by county boards to fulfill the 231.12 responsibilities prescribed in section 256E.08, subdivision 1, 231.13 to the following groups of persons: 231.14 (1) families with children under age 18, who are 231.15 experiencing child dependency, neglect or abuse, and also 231.16 pregnant adolescents, adolescent parents under the age of 18, 231.17 and their children; 231.18 (2) persons who are under the guardianship of the 231.19 commissioner of human services as dependent and neglected wards; 231.20 (3) adults who are in need of protection and vulnerable as 231.21 defined in section 626.5572; 231.22 (4) persons age 60 and over who are experiencing difficulty 231.23 living independently and are unable to provide for their own 231.24 needs; 231.25 (5) emotionally disturbed children and adolescents, 231.26 chronically and acutely mentally ill persons who are unable to 231.27 provide for their own needs or to independently engage in 231.28 ordinary community activities; 231.29 (6) persons with mental retardation as defined in section 231.30 252A.02, subdivision 2, or with related conditions as defined in 231.31 section 252.27, subdivision 1a, who are unable to provide for 231.32 their own needs or to independently engage in ordinary community 231.33 activities; 231.34 (7) drug dependent and intoxicated persons as defined in 231.35 section 254A.02, subdivisions 5 and 7, and persons at risk of 231.36 harm to self or others due to the ingestion of alcohol or other 232.1 drugs; 232.2 (8) parents whose income is at or below 70 percent of the 232.3 state median income and who are in need of child care services 232.4 in order to secure or retain employment or to obtain the 232.5 training or education necessary to secure employment; and 232.6 (9) other groups of persons who, in the judgment of the 232.7 county board, are in need of social services. 232.8 (b) Except as provided in section 256E.08, subdivision 5, 232.9 community social services do not include public assistance 232.10 programs known asaid to families with dependent children232.11 Minnesota family investment program-statewide, Minnesota 232.12 supplemental aid, medical assistance, general assistance, 232.13 general assistance medical care, or community health services 232.14 authorized by sections 145A.09 to 145A.13. 232.15 Sec. 28. Minnesota Statutes 1996, section 256E.06, 232.16 subdivision 1, is amended to read: 232.17 Subdivision 1. [FORMULA.] The commissioner of human 232.18 services shall distribute community social service aids to each 232.19 county board in an amount determined according to the following 232.20 formula: 232.21 In calendar year 1982 and thereafter: 232.22 (a) One-third shall be distributed on the basis of the 232.23 average unduplicated number of persons who receiveAFDC232.24 Minnesota family investment program-statewide, general 232.25 assistance, and medical assistance per month in the calendar 232.26 year two years prior to the year for which funds are being 232.27 distributed as reported in the average monthly caseload reports 232.28 required under sections 256.01, 256B.04 and 256D.04, and 232.29 certified by the commissioner of human services; and 232.30 (b) One-third shall be distributed on the basis of the 232.31 number of persons residing in the county as determined by the 232.32 most recent data of the state demographer; 232.33 (c) One-third shall be distributed on the basis of the 232.34 number of persons residing in the county who are 65 years old or 232.35 older as determined by the most recent data of the state 232.36 demographer. 233.1 Sec. 29. Minnesota Statutes 1996, section 256E.06, 233.2 subdivision 3, is amended to read: 233.3 Subd. 3. [PAYMENTS TO COUNTIES.] The commissioner of human 233.4 services shall make payments for community social services to 233.5 each county in four installments per year. The commissioner of 233.6 human services may certify the payments for the first three 233.7 months of a calendar year based on estimates of the unduplicated 233.8 number of persons receivingAFDCMinnesota family investment 233.9 program-statewide, general assistance and medical assistance for 233.10 the prior year. The following three payments shall be adjusted 233.11 to reflect the actual unduplicated number of persons who 233.12 receivedAFDCMinnesota family investment program-statewide, 233.13 general assistance and medical assistance as required by 233.14 subdivision 1. The commissioner shall ensure that the pertinent 233.15 payment of the allotment for that quarter is made to each county 233.16 on the first working day after the end of each quarter of the 233.17 calendar year, except for the last quarter of the calendar 233.18 year. The commissioner shall ensure that each county receives 233.19 its payment of the allotment for that quarter no later than the 233.20 last working day of that quarter. This scheduling of payments 233.21 does not require compliance with subdivision 10. 233.22 Sec. 30. Minnesota Statutes 1996, section 256E.07, 233.23 subdivision 1, is amended to read: 233.24 Subdivision 1. [FORMULA.] In federal fiscal year 1985 and 233.25 subsequent years, money for social services that is received 233.26 from the federal government to reimburse counties for social 233.27 service expenditurespursuantaccording to title XX of the 233.28 Social Security Act shall be allocated to each county according 233.29 to the following formula: 233.30 (a) Two-thirds shall be allocated on the basis of the 233.31 annual average number of unduplicated active monthly caseloads 233.32 in each county in the following programs:aid to families with233.33dependent childrenMinnesota family investment 233.34 program-statewide, medical assistance, general assistance, 233.35 supplementary security income, and Minnesota supplemental aid. 233.36 (b) One-third shall be allocated on the basis of the number 234.1 of persons residing in the county as determined by the most 234.2 recent estimate of the state demographer. 234.3 (c) The commissioner shall allocate to the counties 234.4pursuantaccording to this section the total money received from 234.5 the federal government for social servicespursuantaccording to 234.6 title XX of the Social Security Act, except that portion of the 234.7 state's allocation which the legislature authorizes for 234.8 administrative purposes and for migrant day care. 234.9 Sec. 31. Minnesota Statutes 1996, section 256E.08, 234.10 subdivision 3, is amended to read: 234.11 Subd. 3. [ADMINISTRATION OF INCOME MAINTENANCE PROGRAMS.] 234.12 The county board may designate itself, a human services board, 234.13 or a local social services agency to perform the functions of 234.14 local social services agencies as prescribed in chapter 393 and 234.15 assigned to county agencies in other law which pertains to the 234.16 administration of income maintenance programs known asaid to234.17families with dependent childrenMinnesota family investment 234.18 program-statewide, general assistance, Minnesota supplemental 234.19 aid, medical assistance, general assistance medical care, and 234.20 emergency assistance. 234.21 Sec. 32. Minnesota Statutes 1996, section 256F.05, 234.22 subdivision 5, is amended to read: 234.23 Subd. 5. [INAPPROPRIATE EXPENDITURES.] Family preservation 234.24 fund basic, placement earnings, and development grant money must 234.25 not be used for: 234.26 (1) child day care necessary solely because of the 234.27 employment or training to prepare for employment, of a parent or 234.28 other relative with whom the child is living; 234.29 (2) residential facility payments; 234.30 (3) adoption assistance payments; 234.31 (4) public assistance payments foraid to families with234.32dependent childrenMinnesota family investment 234.33 program-statewide, supplemental aid, medical assistance, general 234.34 assistance, general assistance medical care, or community health 234.35 services authorized by sections 145A.09 to 145A.13; or 234.36 (5) administrative costs for local social services agency 235.1 public assistance staff. 235.2 Sec. 33. Minnesota Statutes 1996, section 256G.01, 235.3 subdivision 4, is amended to read: 235.4 Subd. 4. [ADDITIONAL COVERAGE.] The provisions in sections 235.5 256G.02, subdivision 4, paragraphs (a) to (d); 256G.02, 235.6 subdivisions 5 to 8; 256G.03; 256G.04; 256G.05; and 256G.07, 235.7 subdivisions 1 to 3, apply to the following programs:aid to235.8families with dependent childrenMinnesota family investment 235.9 program-statewide; medical assistance; general assistance; 235.10 family general assistance; general assistance medical care; and 235.11 Minnesota supplemental aid. 235.12 Sec. 34. Minnesota Statutes 1996, section 257.3573, 235.13 subdivision 2, is amended to read: 235.14 Subd. 2. [INAPPROPRIATE EXPENDITURES.] Indian child 235.15 welfare grant money must not be used for: 235.16 (1) child day care necessary solely because of employment 235.17 or training for employment of a parent or other relative with 235.18 whom the child is living; 235.19 (2) foster care maintenance or difficulty of care payments; 235.20 (3) residential facility payments; 235.21 (4) adoption assistance payments; 235.22 (5) public assistance payments foraid to families with235.23dependent childrenMinnesota family investment 235.24 program-statewide, supplemental aid, medical assistance, general 235.25 assistance, general assistance medical care, or community health 235.26 services authorized by sections 145A.01 to 145A.14; or 235.27 (6) administrative costs for income maintenance staff. 235.28 Sec. 35. Minnesota Statutes 1996, section 260.38, is 235.29 amended to read: 235.30 260.38 [COST, PAYMENT.] 235.31 In addition to the usual care and services given by public 235.32 and private agencies, the necessary cost incurred by the 235.33 commissioner of human services in providing care for such child 235.34 shall be paid by the county committing such child which, subject 235.35 to uniform rules established by the commissioner of human 235.36 services, may receive a reimbursement not exceeding one-half of 236.1 such costs from funds made available for this purpose by the 236.2 legislature during the period beginning July 1, 1985, and ending 236.3 December 31, 1985. Beginning January 1, 1986, the necessary 236.4 cost incurred by the commissioner of human services in providing 236.5 care for the child must be paid by the county committing the 236.6 child. Where such child is eligible to receive a grant ofaid236.7to families with dependent childrenMinnesota family investment 236.8 program-statewide or supplemental security income for the aged, 236.9 blind, and disabled, or a foster care maintenance payment under 236.10 Title IV-E of the Social Security Act, United States Code, title 236.11 42, sections 670 to 676, the child's needs shall be met through 236.12 these programs. 236.13 Sec. 36. Minnesota Statutes 1996, section 268.0111, 236.14 subdivision 5, is amended to read: 236.15 Subd. 5. [INCOME MAINTENANCE AND SUPPORT SERVICES.] 236.16 "Income maintenance and support services" means programs through 236.17 which the state or its subdivisions provide direct financial or 236.18 in-kind support to unemployed or underemployed persons, 236.19 including reemployment insurance,aid to families with dependent236.20childrenMinnesota family investment program-statewide, general 236.21 assistance,work readiness assistance,food stamps, energy 236.22 assistance, disability determinations, and child care. Income 236.23 maintenance and support services do not include medical 236.24 assistance, aging services, social services, community social 236.25 services, mental health services, or services for the 236.26 emotionally disturbed, the mentally retarded, or residents of 236.27 nursing homes. 236.28 Sec. 37. Minnesota Statutes 1996, section 268.0111, 236.29 subdivision 7, is amended to read: 236.30 Subd. 7. [PUBLIC ASSISTANCE.] "Public assistance" 236.31 meansaid to families with dependent children,Minnesota family 236.32 investment program-statewide and general assistance, and work236.33readiness. 236.34 Sec. 38. Minnesota Statutes 1996, section 268.0122, 236.35 subdivision 3, is amended to read: 236.36 Subd. 3. [DUTIES AS A STATE AGENCY.] The commissioner 237.1 shall: 237.2 (1) administer the unemployment insurance laws and related 237.3 programs; 237.4 (2) administer the aspects ofaid to families with237.5dependent childrenMinnesota family investment 237.6 program-statewide, general assistance,work readiness,and food 237.7 stamps that relate to employment and training services, subject 237.8 to the contract under section 268.86, subdivision 2; 237.9 (3) administer wage subsidies and the discretionary 237.10 employment and training fund; 237.11 (4) administer a national system of public employment 237.12 offices as prescribed by United States Code, title 29, chapter 237.13 4B, the Wagner-Peyser Act, and other federal employment and 237.14 training programs; 237.15 (5) cooperate with the federal government and its 237.16 employment and training agencies in any reasonable manner as 237.17 necessary to qualify for federal aid for employment and training 237.18 services and money; 237.19 (6) enter into agreements with other departments of the 237.20 state and local units of government as necessary; 237.21 (7) certify employment and training service providers and 237.22 decertify service providers that fail to comply with performance 237.23 criteria according to standards established by the commissioner; 237.24 (8) provide consistent, integrated employment and training 237.25 services across the state; 237.26 (9) establish the standards for all employment and training 237.27 services administered under this chapter; 237.28 (10) develop standards for the contents and structure of 237.29 the local service unit plans and plans for Indian tribe 237.30 employment and training services; 237.31 (11) provide current state and substate labor market 237.32 information and forecasts, in cooperation with other agencies; 237.33 (12) identify underserved populations, unmet service needs, 237.34 and funding requirements; 237.35 (13) consult with the council for the blind on matters 237.36 pertaining to programs and services for the blind and visually 238.1 impaired; and 238.2 (14) enter into agreements with Indian tribes as necessary 238.3 to provide employment and training services as funds become 238.4 available. 238.5 Sec. 39. Minnesota Statutes 1996, section 268.552, 238.6 subdivision 5, is amended to read: 238.7 Subd. 5. [ALLOCATION TO APPLICANTS.] Priority for 238.8 subsidies shall be in the following order: 238.9 (1) applicants living in households with no other income 238.10 source; 238.11 (2) applicants whose incomes and resources are less than 238.12 the standard for eligibility for general assistanceor work238.13readiness; and 238.14 (3) applicants who are eligible foraid to families with238.15dependent childrenMinnesota family investment program-statewide. 238.16 Sec. 40. Minnesota Statutes 1996, section 268.6751, 238.17 subdivision 1, is amended to read: 238.18 Subdivision 1. [WAGE SUBSIDIES.] Wage subsidy money must 238.19 be allocated to local service units in the following manner: 238.20 (a) The commissioner shall allocate 87.5 percent of the 238.21 funds available for allocation to local service units for wage 238.22 subsidy programs as follows: the proportion of the wage subsidy 238.23 money available to each local service unit must be based on the 238.24 number of unemployed persons in the local service unit for the 238.25 most recent six-month period and the number ofwork readiness238.26assistance cases and aid to families with dependent children238.27 Minnesota family investment program-statewide cases in the local 238.28 service unit for the most recent six-month period. 238.29 (b) Five percent of the money available for wage subsidy 238.30 programs must be allocated at the discretion of the commissioner. 238.31 (c) Seven and one-half percent of the money available for 238.32 wage subsidy programs must be allocated at the discretion of the 238.33 commissioner to provide jobs for residents of federally 238.34 recognized Indian reservations. 238.35 (d) By December 31 of each fiscal year, providers and local 238.36 service units receiving wage subsidy money shall report to the 239.1 commissioner on the use of allocated funds. The commissioner 239.2 shall reallocate uncommitted funds for each fiscal year 239.3 according to the formula in paragraph (a). 239.4 Sec. 41. Minnesota Statutes 1996, section 268.676, 239.5 subdivision 1, is amended to read: 239.6 Subdivision 1. [AMONG JOB APPLICANTS.] At least 80 percent 239.7 of funds allocated among eligible job applicants statewide must 239.8 be allocated to: 239.9 (1) applicants living in households with no other income 239.10 source; 239.11 (2) applicants whose incomes and resources are less than 239.12 the standards for eligibility for general assistanceor work239.13readiness; 239.14 (3) applicants who are eligible foraid to families with239.15dependent childrenMinnesota family investment 239.16 program-statewide; and 239.17 (4) applicants who live in a farm household who demonstrate 239.18 severe household financial need. 239.19 Sec. 42. Minnesota Statutes 1996, section 268.86, 239.20 subdivision 2, is amended to read: 239.21 Subd. 2. [INTERAGENCY AGREEMENTS.] By October 1, 1987, the 239.22 commissioner and the commissioner of human services shall enter 239.23 into a written contract for the design, delivery, and 239.24 administration of employment and training services for 239.25 applicants for or recipients of food stamps oraid to families239.26with dependent children and work readinessMinnesota family 239.27 investment program-statewide, includingAFDCMFIP-S employment 239.28 and training programs,and general assistanceor work readiness239.29grant diversion. The contract must address: 239.30 (1) specific roles and responsibilities of each department; 239.31 (2) assignment and supervision of staff for interagency 239.32 activities including any necessary interagency employee mobility 239.33 agreements under the administrative procedures of the department 239.34 of employee relations; 239.35 (3) mechanisms for determining the conditions under which 239.36 individuals participate in services, their rights and 240.1 responsibilities while participating, and the standards by which 240.2 the services must be administered; 240.3 (4) procedures for providing technical assistance to local 240.4 service units, Indian tribes, and employment and training 240.5 service providers; 240.6 (5) access to appropriate staff for ongoing development and 240.7 interpretation of policy, rules, and program standards; 240.8 (6) procedures for reimbursing appropriate agencies for 240.9 administrative expenses; and 240.10 (7) procedures for accessing available federal funds. 240.11 Sec. 43. Minnesota Statutes 1996, section 268.871, 240.12 subdivision 1, is amended to read: 240.13 Subdivision 1. [RESPONSIBILITY AND CERTIFICATION.] (a) 240.14 Unless prohibited by federal law or otherwise determined by 240.15 state law, a local service unit is responsible for the delivery 240.16 of employment and training services. After February 1, 1988, 240.17 employment and training services must be delivered by certified 240.18 employment and training service providers. 240.19 (b) The local service unit's employment and training 240.20 service provider must meet the certification standards in this 240.21 subdivision in order to be certified to deliver any of the 240.22 following employment and training services and programs: wage 240.23 subsidies;work readiness; work readiness andgeneral assistance 240.24 grant diversion; food stamp employment and training programs; 240.25 community work experience programs;AFDCMFIP-S job search;AFDC240.26 MFIP-S grant diversion;AFDCMFIP-S on-the-job training; and 240.27AFDCMFIP-S case management. 240.28 (c) The commissioner shall certify a local service unit's 240.29 service provider to provide these employment and training 240.30 services and programs if the commissioner determines that the 240.31 provider has: 240.32 (1) past experience in direct delivery of the programs 240.33 specified in paragraph (b); 240.34 (2) staff capabilities and qualifications, including 240.35 adequate staff to provide timely and effective services to 240.36 clients, and proven staff experience in providing specific 241.1 services such as assessments, career planning, job development, 241.2 job placement, support services, and knowledge of community 241.3 services and educational resources; 241.4 (3) demonstrated effectiveness in providing services to 241.5 public assistance recipients and other economically 241.6 disadvantaged clients; and 241.7 (4) demonstrated administrative capabilities, including 241.8 adequate fiscal and accounting procedures, financial management 241.9 systems, participant data systems, and record retention 241.10 procedures. 241.11 (d) When the only service provider that meets the criterion 241.12 in paragraph (c), clause (1), has been decertified,pursuant241.13 according to subdivision 1a, in that local service unit, the 241.14 following criteria shall be substituted: past experience in 241.15 direct delivery of multiple, coordinated, nonduplicative 241.16 services, including outreach, assessments, identification of 241.17 client barriers, employability development plans, and provision 241.18 or referral to support services. 241.19 (e) The commissioner shall certify providers of the 241.20 Minnesota family investment plan case management services as 241.21 defined in section 256.032, subdivision 3. Providers must meet 241.22 the standards defined in paragraph (c), except that past 241.23 experience under paragraph (c), clause (1), must be in services 241.24 and programs similar to those specified in section 256.032, 241.25 subdivision 3. 241.26 Employment and training service providers shall be 241.27 certified by the commissioner for two fiscal years beginning 241.28 July 1, 1991, and every second year thereafter. 241.29 Sec. 44. Minnesota Statutes 1996, section 268.90, 241.30 subdivision 2, is amended to read: 241.31 Subd. 2. [EMPLOYMENT CONDITIONS.] (a) An eligible 241.32 nonprofit or public employer may not terminate, lay off, or 241.33 reduce the regular working hours of an employee for the purpose 241.34 of hiring an individual with money available under this 241.35 program. An eligible employer may not hire an individual with 241.36 money available through this program if any other person is on 242.1 layoff from the same or a substantially equivalent job. 242.2 (b) Community investment program participants are employees 242.3 of the project employer within the meaning of workers' 242.4 compensation laws, personal income tax, and the federal 242.5 insurance contribution act, but not retirement or civil service 242.6 laws. 242.7 (c) Each project and job must comply with all applicable 242.8 affirmative action, fair labor, health, safety, and 242.9 environmental standards. 242.10 (d) Individuals employed under the community investment 242.11 program must be paid a wage at the same wage rates as work site 242.12 or employees doing comparable work in that locality, unless 242.13 otherwise specified in law. 242.14 (e) Recipients ofaid to families with dependent children242.15 Minnesota family investment program-statewide who are eligible 242.16 on the basis of an unemployed parent may not have available more 242.17 than 100 hours a month. All employees are limited to 32 hours 242.18 or four days a week, so that they can continue to seek full-time 242.19 private sector employment, unless otherwise specified in law. 242.20 (f) The commissioner shall establish, by rule, the terms 242.21 and conditions governing the participation of appropriate public 242.22 assistance recipients. The rules must, at a minimum, establish 242.23 the procedures by which the minimum and maximum number of work 242.24 hours and maximum allowable travel distances are determined, the 242.25 amounts and methods by which work expenses will be paid, and the 242.26 manner in which support services will be provided. The rules 242.27 must also provide for periodic reviews of clients continuing 242.28 employment in community investment programs. 242.29 (g) Participation in a community investment program by a 242.30 recipient ofaid to families with dependent childrenMinnesota 242.31 family investment program-statewide or general assistance is 242.32 voluntary; however, work readiness registrants may be required242.33to participate. 242.34 Sec. 45. Minnesota Statutes 1996, section 268.916, is 242.35 amended to read: 242.36 268.916 [REPORTS.] 243.1 Each grantee shall submit an annual report to the 243.2 commissioner on the format designated by the commissioner, 243.3 including program information report data. By January 1 of each 243.4 year, the commissioner shall prepare an annual report to the 243.5 health and human services committee of the house of 243.6 representatives and the family services committee of the senate 243.7 concerning the uses and impact of head start supplemental 243.8 funding, including a summary of innovative programs and the 243.9 results of innovative programs and an evaluation of the 243.10 coordination of head start programs with employment and training 243.11 services provided toAFDCMFIP-S recipients. 243.12 Sec. 46. Minnesota Statutes 1996, section 268.95, 243.13 subdivision 4, is amended to read: 243.14 Subd. 4. [PILOT PROGRAM.] The commissioner shall develop a 243.15 pilot program, in cooperation with the commissioners of trade 243.16 and economic development and human services, to enable 243.17 low-income persons to start or expand self-employment 243.18 opportunities or home-based businesses that are designed to make 243.19 the individual entrepreneurs economically independent. The 243.20 commissioner of human services shall seek necessary waivers from 243.21 federal regulations to allow recipients ofaid to families with243.22dependent childrenMinnesota family investment program-statewide 243.23 to participate and retain eligibility while establishing a 243.24 business. 243.25 Sec. 47. Minnesota Statutes 1996, section 393.07, 243.26 subdivision 6, is amended to read: 243.27 Subd. 6. [PURCHASE OF EQUIPMENT TO AID WELFARE 243.28 RECIPIENTS.] Every local social services agency authorizing 243.29 braces, crutches, trusses, wheel chairs and hearing aids for use 243.30 by recipients of supplemental security income for the aged, 243.31 blind and disabled,aid to families with dependent children243.32 Minnesota family investment program-statewide and relief shall 243.33 secure such devices at the lowest cost obtainable conducive to 243.34 the well being of the recipient and fix the recipient's grant in 243.35 an amount to cover the cost of the device providing it will be 243.36 purchased at the lowest cost obtainable, or may make payment for 244.1 the device directly to the vendor. 244.2 Sec. 48. Minnesota Statutes 1996, section 477A.0122, 244.3 subdivision 2, is amended to read: 244.4 Subd. 2. [DEFINITIONS.] For purposes of this section, the 244.5 following definitions apply: 244.6 (a) "Children in out-of-home placement" means the total 244.7 unduplicated number of children in out-of-home care as reported 244.8pursuantaccording to section 257.0725. 244.9 (b) "Family preservation programs" means family-based 244.10 services as defined in section 256F.03, subdivision 5, families 244.11 first services, parent and child education programs, and day 244.12 treatment services provided in cooperation with a school 244.13 district or other programs as defined by the commissioner of 244.14 human services. 244.15 (c) "Income maintenance caseload" means average monthly 244.16 number ofAFDCMinnesota family investment program-statewide 244.17 cases for the calendar year. 244.18 By July 1, 1994, the commissioner of human services shall 244.19 certify to the commissioner of revenue the number of children in 244.20 out-of-home placement in 1991 and 1992 for each county and the 244.21 income maintenance caseload for each county for the most recent 244.22 year available. By July 1 of each subsequent year, the 244.23 commissioner of human services shall certify to the commissioner 244.24 of revenue the income maintenance caseload for each county for 244.25 the most recent calendar year available. 244.26 Sec. 49. [EFFECTIVE DATE.] 244.27 Sections 1 to 48 are effective October 1, 1997.