as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to human services; establishing welfare 1.3 reform initiatives; amending Minnesota Statutes 1996, 1.4 sections 13.46, subdivisions 1 and 2; 13.82, 1.5 subdivision 1; 13.99, by adding a subdivision; 84.98, 1.6 subdivision 3; 124.17, subdivisions 1d and 1e; 1.7 124.175; 124A.02, subdivision 16; 124A.22, subdivision 1.8 3; 136A.125, subdivision 2; 196.27; 237.70, 1.9 subdivision 4a; 254B.02, subdivision 1; 256.01, 1.10 subdivisions 2 and 4a; 256.017, subdivisions 1, 2, and 1.11 4; 256.019; 256.025, subdivisions 2 and 4; 256.031, 1.12 subdivision 5, and by adding subdivisions; 256.033, 1.13 subdivisions 1 and 1a; 256.045, subdivision 3; 1.14 256.046; 256.74, subdivision 1; 256.82, subdivisions 1 1.15 and 2; 256.871, subdivision 6; 256.935; 256.98, 1.16 subdivisions 1, 3, 4, and 8; 256.981; 256.983, 1.17 subdivisions 1 and 4; 256.984, subdivision 1; 1.18 256.9850; 256.986; 256.9861, subdivisions 1, 2, 4, and 1.19 5; 256.998, by adding subdivisions; 256B.055, 1.20 subdivision 5, and by adding subdivisions; 256B.056, 1.21 subdivisions 1a, 3, and 4; 256B.057, subdivisions 1, 1.22 1b, 2a, and 2b; 256B.06, subdivision 4; 256B.0913, 1.23 subdivision 14; 256B.19, subdivisions 1, 2a, and 2b; 1.24 256D.01, subdivisions 1 and 1a; 256D.02, subdivisions 1.25 6 and 12a; 256D.03, subdivisions 2, 2a, 3, and 6; 1.26 256D.05, subdivisions 1, 2, 3, 5, 7, and 8; 256D.051, 1.27 subdivisions 1a, 2a, 3a, and by adding a subdivision; 1.28 256D.0511, subdivision 2; 256D.055; 256D.06, 1.29 subdivision 2; 256D.08, subdivisions 1 and 2; 256D.09, 1.30 subdivision 6, and by adding a subdivision; 256D.36; 1.31 256D.435, subdivision 3; 256D.44, subdivision 5; 1.32 256E.03, subdivision 2; 256E.06, subdivisions 1 and 3; 1.33 256E.07, subdivision 1; 256E.08, subdivision 3; 1.34 256F.04, subdivisions 1 and 2; 256F.05, subdivisions 1.35 2, 3, 4, 5, and 8; 256F.06, subdivisions 1 and 2; 1.36 256G.01, subdivision 4; 257.3573, subdivision 2; 1.37 259.67, subdivision 4; 260.38; 268.0111, subdivisions 1.38 5 and 7; 268.0122, subdivision 3; 268.552, subdivision 1.39 5; 268.6751, subdivision 1; 268.676, subdivision 1; 1.40 268.86, subdivision 2; 268.871, subdivision 1; 268.90, 1.41 subdivision 2; 268.916; 268.95, subdivision 4; 1.42 270A.03, subdivision 5; 388.23, subdivision 1; 393.07, 1.43 subdivisions 6 and 10; and 477A.0122, subdivision 2; 1.44 proposing coding for new law in Minnesota Statutes, 1.45 chapters 256; and 256B; proposing coding for new law 1.46 as Minnesota Statutes, chapters 256J; and 256K; 2.1 repealing Minnesota Statutes 1996, sections 256.12, 2.2 subdivisions 9, 10, 14, 15, 20, 21, 22, and 23; 2.3 256.72; 256.73; 256.7341; 256.7351; 256.7352; 2.4 256.7353; 256.7354; 256.7355; 256.7356; 256.7357; 2.5 256.7358; 256.7359; 256.736; 256.7365; 256.7366; 2.6 256.737; 256.738; 256.7381; 256.7382; 256.7383; 2.7 256.7384; 256.7385; 256.7386; 256.7387; 256.7388; 2.8 256.739; 256.74, subdivisions 1, 1a, 1b, 2, and 6; 2.9 256.745; 256.75; 256.76; 256.78; 256.80; 256.81; 2.10 256.82; 256.84; 256.85; 256.86; 256.863; 256.871; 2.11 256.8711; 256.879; 256B.041, subdivision 5; 256B.055, 2.12 subdivision 3; 256B.062; 256B.19, subdivision 1a; 2.13 256D.01, subdivision 1e; 256D.02, subdivisions 5 and 2.14 6; 256D.05; 256D.0511, subdivisions 1, 3, 4, and 5; 2.15 and 256F.05, subdivisions 5 and 7. 2.16 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 2.17 ARTICLE 1 2.18 MINNESOTA FAMILY INVESTMENT PROGRAM-STATEWIDE 2.19 Section 1. [256J.01] [MINNESOTA FAMILY INVESTMENT 2.20 PROGRAM-STATEWIDE.] 2.21 Subdivision 1. [EXPANSION OF MINNESOTA FAMILY INVESTMENT 2.22 PROGRAM-STATEWIDE (MFIP-S).] This chapter and chapter 256K may 2.23 be cited as the Minnesota family investment program-statewide 2.24 (MFIP-S). MFIP-S is the statewide expansion of the Minnesota 2.25 family investment plan authorized under section 256.031 and 2.26 Minnesota family investment plan-Ramsey county (MFIP-R) in 2.27 section 256.047. 2.28 Subd. 2. [IMPLEMENTATION OF TEMPORARY ASSISTANCE FOR NEEDY 2.29 FAMILIES (TANF).] The Personal Responsibility and Work 2.30 Opportunity Reconciliation Act of 1996, Public Law Number 2.31 104-193, eliminates the entitlement program of aid to families 2.32 with dependent children (AFDC) and replaces it with block grants 2.33 to states for temporary assistance for needy families (TANF). 2.34 TANF provides cash assistance for a limited time to families 2.35 with children and to pregnant women. Minnesota's TANF 2.36 assistance will be provided through a statewide expansion of the 2.37 MFIP. The modifications specified in this chapter are necessary 2.38 to comply with the new federal law and to improve MFIP. 2.39 Subd. 3. [MISSION STATEMENT.] The goals of the statewide 2.40 expansion of MFIP include the goals of MFIP and MFIP-R. The 2.41 statewide expansion of MFIP also includes the additional goals 2.42 of Public Law Number 104-193 to reduce dependency on assistance 2.43 by preventing out-of-wedlock pregnancies, promoting marriage, 3.1 and encouraging the formation and maintenance of two-parent 3.2 families. 3.3 Subd. 4. [RELATIONSHIP TO OTHER STATUTES AND 3.4 RULES.] MFIP-S replaces eligibility for families with children 3.5 and pregnant women under the general assistance program, 3.6 governed by sections 256D.01 to 256D.21 and Minnesota Rules, 3.7 parts 9500.1200 to 9500.1270. 3.8 Subd. 5. [CHANGES TO WAIVERS.] The commissioner may 3.9 negotiate and obtain changes in the federal waivers and terms 3.10 and conditions contained in the MFIP, MFIP-R, and MFIP-S 3.11 programs. The commissioner may also terminate federal waivers 3.12 by directing so in the applicable state plan. 3.13 Subd. 6. [ADMINISTRATIVE RULES.] Because of the need to 3.14 have a flexible and swift means of implementing this program 3.15 statewide, the commissioner may adopt rules to implement this 3.16 chapter and chapter 256K. The rules adopted by the commissioner 3.17 to implement this program are excluded from the rulemaking 3.18 provisions of chapter 14 and from the definition of a rule. 3.19 Notwithstanding section 14.386, paragraph (b), the exempt rules 3.20 adopted under this section may continue in effect as long as the 3.21 program is in operation. 3.22 Subd. 7. [COMPLIANCE SYSTEM.] The commissioner shall 3.23 administer a compliance system for the state's temporary 3.24 assistance to needy families (TANF) program, the food stamp 3.25 program, emergency assistance, general assistance, medical 3.26 assistance, general assistance medical care, emergency general 3.27 assistance, Minnesota supplemental assistance, preadmission 3.28 screening child support program, and alternative care grants 3.29 under the powers and authorities named in section 256.01, 3.30 subdivision 2. The purpose of the compliance system is to 3.31 permit the commissioner to supervise the administration of 3.32 public assistance programs and to enforce timely and accurate 3.33 distribution of benefits, completeness of service and efficient 3.34 and effective program management and operations, to increase 3.35 uniformity and consistency in the administration and delivery of 3.36 public assistance programs throughout the state, and to reduce 4.1 the possibility of sanction and fiscal disallowances for 4.2 noncompliance with federal regulations and state statutes. 4.3 Sec. 2. [256J.02] [FEDERAL TEMPORARY ASSISTANCE TO NEEDY 4.4 FAMILIES BLOCK GRANT.] 4.5 The commissioner of human services is authorized to 4.6 receive, administer, and expend funds available under the 4.7 temporary assistance to needy families block grant authorized 4.8 under title I of Public Law Number 104-193, the Personal 4.9 Responsibility and Work Opportunity Act of 1996. 4.10 Sec. 3. [256J.03] [USE OF MONEY.] 4.11 State money appropriated for purposes of this section and 4.12 TANF block grant money shall be used for: 4.13 (1) financial assistance to or on behalf of any dependent 4.14 child who resides in Minnesota under section 256J.11; 4.15 (2) employment and training programs under section 256J.27; 4.16 (3) emergency financial assistance and services under 4.17 section 256J.37; and 4.18 (4) program administration under section 256J.01. 4.19 Sec. 4. [256J.04] [CARRY-FORWARD OF FEDERAL MONEY.] 4.20 Temporary assistance to needy families block grant money 4.21 shall be appropriated for the purposes in section 256J.02 and 4.22 shall be available until expended. 4.23 Sec. 5. [256J.05] [AUTHORITY TO TRANSFER.] 4.24 Subject to limitations of title I of Public Law Number 4.25 104-193, the Personal Responsibility and Work Opportunity Act of 4.26 1996, the legislature may transfer money from the TANF block 4.27 grant to the child care fund under section 119B.01, or the Title 4.28 XX block grant under section 256E.07. 4.29 Sec. 6. [256J.06] [INDIRECT COST LIABILITY.] 4.30 Notwithstanding the provisions of section 16A.127, the 4.31 statewide and agency indirect cost liability identified as part 4.32 of the TANF grant for any current fiscal year shall be limited 4.33 to no more than the amount received in fiscal year 1996. 4.34 Sec. 7. [256J.07] [COUNTY ADMINISTRATIVE AID.] 4.35 Subdivision 1. [ADMINISTRATIVE FUNCTIONS.] Beginning July 4.36 1, 1997, counties shall receive federal funds from the TANF 5.1 block grant for use in supporting eligibility, fraud control, 5.2 and other related administrative functions. The federal funds 5.3 available for distribution, as determined by the commissioner, 5.4 shall be an amount equal to federal administrative aid 5.5 distributed for fiscal year 1996 under titles IV-A and IV-F of 5.6 the Social Security Act in effect prior to October 1, 1996. 5.7 This amount shall include the amount paid for local 5.8 collaboratives under sections 245.4932 and 256F.13, but shall 5.9 not include administrative aid associated with child care under 5.10 section 119B.05, with emergency assistance intensive family 5.11 preservation services under section 256.8711, with 5.12 administrative activities as part of the employment and training 5.13 services under section 256.736; or with fraud prevention 5.14 investigation activities under section 256.983. 5.15 Subd. 2. [ALLOCATION OF COUNTY FUNDS.] The commissioner 5.16 shall determine and allocate the funds available to each county, 5.17 on a calendar year basis, proportional to the amount paid to 5.18 each county for fiscal year 1996, excluding the amount paid for 5.19 local collaboratives under sections 245.4932 and 256F.13. For 5.20 the period beginning July 1, 1997, and ending December 31, 1998, 5.21 each county shall receive 150 percent of its base year 5.22 allocation. 5.23 Subd. 3. [MONTHLY PAYMENTS TO COUNTIES.] The commissioner 5.24 shall pay counties monthly as federal funds are available. The 5.25 commissioner may certify the payments for the first three months 5.26 of a calendar year. 5.27 Subd. 4. [REPORTING REQUIREMENT.] The commissioner shall 5.28 specify requirements for reporting according to section 256.01, 5.29 subdivision 2, paragraph (17). Each county shall be reimbursed 5.30 at a rate of 50 percent of eligible expenditures up to the limit 5.31 of its allocation. 5.32 Sec. 8. [256J.08] [DEFINITIONS.] 5.33 Subdivision 1. [SCOPE OF DEFINITIONS.] The terms used in 5.34 sections 256J.01 to 256J.37 have the following meanings unless 5.35 otherwise provided for by text. 5.36 Subd. 2. [AGENCY ERROR.] "Agency error" means an error 6.1 that results in an overpayment or underpayment to an assistance 6.2 unit and is not caused by an applicant's or participant's 6.3 failure to provide adequate, correct, or timely information 6.4 about income, property, household composition, or other 6.5 circumstances. 6.6 Subd. 3. [APPEAL.] "Appeal" means a written statement from 6.7 an applicant or participant who requests a hearing under section 6.8 256J.31. 6.9 Subd. 4. [APPLICANT.] "Applicant" means a person who has 6.10 submitted to a local agency an application and whose application 6.11 has not been acted upon, denied, or voluntarily withdrawn. 6.12 Subd. 5. [APPLICATION.] "Application" means the submission 6.13 by or on behalf of a family to the local agency of a completed, 6.14 signed, and dated form, prescribed by the commissioner, that 6.15 indicates a desire to receive assistance. 6.16 Subd. 6. [ASSIGNMENT OF SUPPORT.] "Assignment of support" 6.17 means the transfer of a person's right to child support, private 6.18 health care benefits, and spousal maintenance benefits to the 6.19 local agency. 6.20 Subd. 7. [ASSISTANCE UNIT OR MFIP-S ASSISTANCE 6.21 UNIT.] "Assistance unit" or "MFIP-S assistance unit" means a 6.22 group of mandatory or optional people receiving or applying for 6.23 MFIP-S benefits together. 6.24 Subd. 8. [AUTHORIZED REPRESENTATIVE.] "Authorized 6.25 representative" means a person who is authorized, in writing, by 6.26 an applicant or participant to act on the applicant's or 6.27 participant's behalf in matters involving the application for 6.28 assistance or participation in MFIP-S. 6.29 Subd. 9. [BASIC NEEDS.] "Basic needs" means the minimum 6.30 personal requirements of subsistence and is restricted to food, 6.31 clothing, shelter, utilities, and other items for which the 6.32 loss, or lack of basic needs, is determined by the local agency 6.33 to pose a direct, immediate threat to the physical health or 6.34 safety of the applicant or participant. 6.35 Subd. 10. [BUDGET MONTH.] "Budget month" means the 6.36 calendar month which the local agency uses to determine the 7.1 income or circumstances of an assistance unit to calculate the 7.2 amount of the assistance payment in the payment month. 7.3 Subd. 11. [CAREGIVER.] "Caregiver" means a minor child's 7.4 natural or adoptive parent or parents who live in the home with 7.5 the minor child. For purposes of determining eligibility for 7.6 this program, caregiver also means any of the following 7.7 individuals, if adults, who live with and provide care and 7.8 support to a minor child when the minor child's natural or 7.9 adoptive parent or parents do not reside in the same home: 7.10 grandfather, grandmother, brother, sister, stepfather, 7.11 stepmother, stepbrother, stepsister, uncle, aunt, first cousin, 7.12 nephew, niece, person of preceding generation as denoted by 7.13 prefixes of "great," "great-great," or "great-great-great," or a 7.14 spouse of any person named in the above groups even after the 7.15 marriage ends by death or divorce. 7.16 Subd. 12. [CLIENT ERROR.] "Client error" means an error 7.17 that results in an overpayment or underpayment and is due to an 7.18 applicant's or participant's failure to provide adequate, 7.19 correct, or timely information concerning income, property, 7.20 household composition, or other circumstances. 7.21 Subd. 13. [COLLATERAL CONTACTS.] "Collateral contacts" 7.22 means confirmation of an assistance unit's circumstances by a 7.23 person outside the assistance unit. 7.24 Subd. 14. [COMMISSIONER.] "Commissioner" means the 7.25 commissioner of the department of human services or the 7.26 commissioner's designated representative. 7.27 Subd. 15. [CORRECTIVE PAYMENT.] "Corrective payment" means 7.28 an assistance payment that is made to correct an underpayment. 7.29 Subd. 16. [COUNTABLE INCOME.] "Countable income" means 7.30 earned and unearned income that is not excluded under section 7.31 256J.14, subdivision 2, or disregarded under section 256J.21. 7.32 Subd. 17. [COUNTED EARNINGS.] "Counted earnings" means the 7.33 earned income that remains after applicable disregards under 7.34 section 256J.15, subdivision 2, have been subtracted from gross 7.35 earned income. 7.36 Subd. 18. [COUNTY AGENCY.] "County agency" means the 8.1 agency designated by the county board to implement financial 8.2 assistance for current programs and for MFIP-S and the agency 8.3 responsible for enforcement of child support collection. 8.4 Subd. 19. [COUNTY BOARD.] "County board" means a board of 8.5 commissioners, a local services agency as defined in chapter 8.6 393, a board established under Joint Powers Act, section 471.59, 8.7 or a human services board under chapter 402. 8.8 Subd. 20. [COUNTY OF FINANCIAL RESPONSIBILITY.] "County of 8.9 financial responsibility" means the county that has financial 8.10 responsibility for providing public assistance as specified in 8.11 chapter 256G. 8.12 Subd. 21. [COUNTY OF RESIDENCE.] "County of residence" 8.13 means the county where the caregiver has established a home. 8.14 Subd. 22. [DATE OF APPLICATION.] "Date of application" 8.15 means the date on which the local agency receives an applicant's 8.16 signed application. 8.17 Subd. 23. [DEEM.] "Deem" means to treat all or part of the 8.18 income of an individual who is not in the assistance unit, but 8.19 who is financially responsible for members of the assistance 8.20 unit, as if it were income available to the assistance unit. 8.21 Subd. 24. [DEPARTMENT.] "Department" means the Minnesota 8.22 department of human services. 8.23 Subd. 25. [DISREGARD.] "Disregard" means earned income 8.24 that is not counted when determining initial eligibility or 8.25 ongoing eligibility and calculating the amount of the assistance 8.26 payment for participants. 8.27 Subd. 26. [DOCUMENTATION.] "Documentation" means a written 8.28 statement or record that substantiates or validates an assertion 8.29 made by a person or an action taken by a person, agency, or 8.30 entity. 8.31 Subd. 27. [EARNED INCOME.] "Earned income" means cash or 8.32 in-kind income earned through the receipt of wages, salary, 8.33 commissions, profit from employment activities, net profit from 8.34 self-employment activities, payments made by an employer for 8.35 regularly accrued vacation or sick leave, and any other profit 8.36 from activity earned through effort or labor. 9.1 Subd. 28. [EARNED INCOME CREDIT.] "Earned income credit" 9.2 means the payment which can be obtained by a qualified person 9.3 from an employer or from the Internal Revenue Service as 9.4 provided by section 290.0671 and United States Code, title 26, 9.5 subtitle A, chapter 1, subchapter A, part 4, subpart C, section 9.6 32. 9.7 Subd. 29. [EMERGENCY.] "Emergency" means a situation or a 9.8 set of circumstances that causes or threatens to cause 9.9 destitution to a minor child. 9.10 Subd. 30. [ENCUMBRANCE.] "Encumbrance" means a legal claim 9.11 against real or personal property that is payable upon the sale 9.12 of that property. 9.13 Subd. 31. [EQUITY VALUE.] "Equity value" means the amount 9.14 of equity in real or personal property owned by a person and is 9.15 determined by subtracting any outstanding encumbrances from the 9.16 fair market value. 9.17 Subd. 32. [EXCLUDED TIME.] "Excluded time" has the meaning 9.18 given in section 256G.02. 9.19 Subd. 33. [EXPEDITED ISSUANCE OF THE FOOD STAMP 9.20 PORTION.] "Expedited issuance of the food stamp portion" means 9.21 the issuance of the food stamp portion to eligible assistance 9.22 units on the day of application as provided in section 393.07, 9.23 subdivision 10a. 9.24 Subd. 34. [FAIR HEARING OR HEARING.] "Fair hearing" or 9.25 "hearing" means the evidentiary hearing conducted by the 9.26 department appeals referee to resolve disputes as specified in 9.27 section 256.045. 9.28 Subd. 35. [FAIR MARKET VALUE.] "Fair market value" means 9.29 the price that an item of a particular make, model, size, 9.30 material, or condition would sell for on the open market in the 9.31 particular geographic area. 9.32 Subd. 36. [FAMILY.] "Family" includes: 9.33 (1) the following individuals who live together: a minor 9.34 child or a group of minor children related to each other as 9.35 siblings, half siblings, stepsiblings, or adoptive siblings, 9.36 together with their natural, adoptive parents, stepparents, or 10.1 caregiver as defined in subdivision 11; and 10.2 (2) a pregnant woman with no other children. 10.3 Subd. 37. [FAMILY WAGE LEVEL.] "Family wage level" means 10.4 110 percent of the transitional standard. 10.5 Subd. 38. [FEDERAL INSURANCE CONTRIBUTION ACT OR 10.6 FICA.] "Federal Insurance Contribution Act" or "FICA" means the 10.7 federal law under United States Code, title 26, subtitle C, 10.8 chapter 21, subchapter A, sections 3101 to 3126, that requires 10.9 withholding or direct payment from earned income. 10.10 Subd. 39. [FINANCIAL CASE RECORD.] "Financial case record" 10.11 means an assistance unit's financial eligibility file. 10.12 Subd. 40. [FINANCIALLY RESPONSIBLE HOUSEHOLD 10.13 MEMBERS.] "Financially responsible household members" means 10.14 spouses, parents of minor children and minor caregivers, and 10.15 stepparents of minor children. 10.16 Subd. 41. [FULL-TIME STUDENT.] "Full-time student" means a 10.17 person who is enrolled in a graded or ungraded primary, 10.18 intermediate, secondary, GED preparatory, trade, technical, 10.19 vocational, or post-secondary school, and who meets the school's 10.20 standard for full-time attendance. 10.21 Subd. 42. [GENERAL EDUCATIONAL DEVELOPMENT OR 10.22 GED.] "General educational development" or "GED" means the 10.23 general educational development certification issued by the 10.24 Minnesota board of education as an equivalent to a secondary 10.25 school diploma under Minnesota Rules, part 3500.3100, subpart 4. 10.26 Subd. 43. [GROSS EARNED INCOME.] "Gross earned income" 10.27 means earned income from employment before mandatory and 10.28 voluntary payroll deductions. Gross earned income includes 10.29 salaries, wages, tips, gratuities, commissions, incentive 10.30 payments from work or training programs, payments made by an 10.31 employer for regularly accrued vacation or sick leave, and 10.32 profits from other activity earned by an individual's effort or 10.33 labor. Gross earned income includes uniform and meal allowances 10.34 if federal income tax is deducted from the allowance. Gross 10.35 earned income includes flexible work benefits received from an 10.36 employer if the employee has the option of receiving the benefit 11.1 or benefits in cash. 11.2 Subd. 44. [GROSS INCOME.] "Gross income" is the sum of 11.3 gross earned income and unearned income. 11.4 Subd. 45. [GROSS RECEIPTS.] "Gross receipts" means the 11.5 money received by a business before the expenses of the business 11.6 are deducted. 11.7 Subd. 46. [HALF-TIME STUDENT.] "Half-time student" means a 11.8 person who is enrolled in a graded or ungraded primary, 11.9 intermediate, secondary, GED preparatory, trade, technical, 11.10 vocational, or post-secondary school, and who meets the school's 11.11 standard of half-time attendance. 11.12 Subd. 47. [HOME.] "Home" means the primary place of 11.13 residence used by a person as the base for day-to-day living and 11.14 does not include locations used as mail drops. 11.15 Subd. 48. [HOMELESS INDIVIDUAL.] "Homeless individual" 11.16 means an individual who lacks a fixed and regular nighttime 11.17 residence or an individual whose primary nighttime residence is: 11.18 (1) a supervised shelter designed to provide temporary 11.19 accommodations such as a welfare hotel or congregate shelter; 11.20 (2) a halfway house or similar institution that provides 11.21 temporary residence for individuals intended to be 11.22 institutionalized; 11.23 (3) a temporary accommodation in the residence of another 11.24 individual; or 11.25 (4) a place not designed for, or ordinarily used as, a 11.26 regular sleeping accommodation for persons such as a hallway, 11.27 lobby, bus station, or under highway bridges and overpasses. 11.28 Subd. 49. [HOMESTEAD.] "Homestead" means the home that is 11.29 owned by, and is the usual residence of, the assistance unit 11.30 together with the surrounding property which is not separated 11.31 from the home by intervening property owned by others. Public 11.32 rights-of-way, such as roads which run through the surrounding 11.33 property and separate it from the home, do not affect the 11.34 exemption of the property. Homestead includes an asset that is 11.35 not real property that the assistance unit uses as a home, such 11.36 as a vehicle. 12.1 Subd. 50. [HOUSEHOLD.] "Household" means a group of 12.2 persons who live together. 12.3 Subd. 51. [INCOME.] "Income" means cash or in-kind 12.4 benefit, whether earned or unearned, received by or available to 12.5 an applicant or participant that is not an asset under section 12.6 256J.13. 12.7 Subd. 52. [INITIAL ELIGIBILITY.] "Initial eligibility" 12.8 means the determination of eligibility for an MFIP-S applicant. 12.9 Subd. 53. [INITIAL INCOME TEST.] "Initial income test" 12.10 means the test used to determine initial eligibility which 12.11 compares countable income to the transitional standard according 12.12 to section 256J.14. 12.13 Subd. 54. [IN-KIND INCOME.] "In-kind income" means income, 12.14 benefits, or payments which are provided in a form other than 12.15 money or liquid assets, including the forms of goods, produce, 12.16 services, privileges, or payments made on behalf of an applicant 12.17 or participant by a third party. 12.18 Subd. 55. [INQUIRY.] "Inquiry" means a communication to a 12.19 local agency through mail, telephone, or in person, by which a 12.20 person or authorized representative requests information about 12.21 public assistance. The local agency shall also treat as an 12.22 inquiry any communication in which a person requesting 12.23 assistance offers information about the person's family 12.24 circumstances that indicates that eligibility for public 12.25 assistance may exist. 12.26 Subd. 56. [LEGALLY AVAILABLE.] "Legally available" means a 12.27 person's right under the law to secure, possess, dispose of, or 12.28 control income or property. 12.29 Subd. 57. [LOCAL AGENCY.] "Local agency" means a county or 12.30 multicounty agency that is authorized under sections 393.01, 12.31 subdivision 7, and 393.07, subdivision 2, to administer MFIP-S. 12.32 Subd. 58. [LOW-INCOME HOME ENERGY ASSISTANCE PROGRAM OR 12.33 LIHEAP.] "Low-income home energy assistance program" or "LIHEAP" 12.34 means the program authorized under United States Code, title 42, 12.35 chapter 94, subchapter II, sections 8621 to 8629, and 12.36 administered by the Minnesota department of jobs and training. 13.1 Subd. 59. [LUMP SUM.] "Lump sum" means nonrecurring income 13.2 that is not excluded in section 256J.14. 13.3 Subd. 60. [MAXIMUM SHELTER DEDUCTION.] "Maximum shelter 13.4 deduction" means the amount designated by the United States 13.5 Department of Agriculture under Code of Federal Regulations, 13.6 title 7, as the maximum deduction from income allowed for 13.7 shelter costs when calculating food stamp benefits. 13.8 Subd. 61. [MEDICAL ASSISTANCE.] "Medical assistance" means 13.9 the program established under chapter 256B and Title XIX of the 13.10 Social Security Act. 13.11 Subd. 62. [MFIP-S HOUSEHOLD REPORT FORM.] "MFIP-S 13.12 household report form" means a form prescribed by the 13.13 commissioner that a participant uses to report information to a 13.14 local agency about changes in income and other circumstances. 13.15 Subd. 63. [MINNESOTA FAMILY INVESTMENT PROGRAM-STATEWIDE 13.16 OR MFIP-S.] "Minnesota family investment program-statewide" or 13.17 "MFIP-S" means the assistance program authorized in this chapter 13.18 and chapter 256K. 13.19 Subd. 64. [MINNESOTA SUPPLEMENTAL AID OR MSA.] "Minnesota 13.20 supplemental aid" or "MSA" means the program established under 13.21 sections 256D.33 to 256D.54. 13.22 Subd. 65. [MINOR CAREGIVER.] "Minor caregiver" means a 13.23 person who: 13.24 (1) is under the age of 18; 13.25 (2) has never been married or otherwise legally 13.26 emancipated; 13.27 (3) is either the natural parent of a minor child living in 13.28 the same household; or 13.29 (4) is eligible for assistance paid to a pregnant woman. 13.30 Subd. 66. [MINOR CHILD.] "Minor child" means a child who 13.31 is living in the same home of a parent or other caregiver, is 13.32 either less than 18 years of age or is under the age of 19 years 13.33 and is regularly attending as a full-time student and is 13.34 expected to complete a high school or a secondary level course 13.35 of vocational or technical training designed to fit students for 13.36 gainful employment. 14.1 Subd. 67. [MONTHLY INCOME TEST.] "Monthly income test" 14.2 means the test used to determine ongoing eligibility and the 14.3 assistance payment amount according to section 256J.14. 14.4 Subd. 68. [NONRECURRING INCOME.] "Nonrecurring income" 14.5 means a form of income which is received: 14.6 (1) only one time or is not of a continuous nature; or 14.7 (2) in a prospective payment month but is no longer 14.8 received in the corresponding retrospective payment month. 14.9 Subd. 69. [OVERPAYMENT.] "Overpayment" means the portion 14.10 of an assistance payment issued by the local agency that is 14.11 greater than the amount for which the assistance unit is 14.12 eligible. 14.13 Subd. 70. [PARENT.] "Parent" means a child's biological or 14.14 adoptive parent who is legally obligated to support that child. 14.15 Subd. 71. [PARTICIPANT.] "Participant" means a person 14.16 receiving benefits through MFIP-S and includes the caregiver and 14.17 all members of the assistance unit. 14.18 Subd. 72. [PAYEE.] "Payee" means a person to whom an 14.19 assistance payment is made payable. 14.20 Subd. 73. [PAYMENT MONTH.] "Payment month" means the 14.21 calendar month for which the assistance payment is paid. 14.22 Subd. 74. [PERSONAL PROPERTY.] "Personal property" means 14.23 an item of value that is not real property, including the value 14.24 of a contract for deed held by a seller, assets held in trust on 14.25 behalf of members of an assistance unit, cash surrender value of 14.26 life insurance, value of a prepaid burial, savings account, 14.27 value of stocks and bonds, and value of retirement accounts. 14.28 Subd. 75. [PROBABLE FRAUD.] "Probable fraud" means the 14.29 level of evidence that, if proven as fact, would establish that 14.30 assistance has been wrongfully obtained. 14.31 Subd. 76. [PROSPECTIVE BUDGETING.] "Prospective budgeting" 14.32 means a method of determining the amount of the assistance 14.33 payment in which the budget month and payment month are the same. 14.34 Subd. 77. [PROTECTIVE PAYEE.] "Protective payee" means a 14.35 person other than the caregiver of an assistance unit who 14.36 receives the monthly assistance payment on behalf of an 15.1 assistance unit and is responsible to provide for the basic 15.2 needs of the assistance unit to the extent of that payment. 15.3 Subd. 78. [QUALIFIED NONCITIZEN.] "Qualified noncitizen" 15.4 means a person: 15.5 (1) who was lawfully admitted for permanent residence under 15.6 the Immigration and Nationality Act (INA); 15.7 (2) who was admitted to the United States as a refugee 15.8 under section 207 of the INA; 15.9 (3) whose deportation is being withheld under section 15.10 243(h) of the INA; 15.11 (4) who was paroled under section 212(d)(5) of the INA; 15.12 (5) who was granted conditional entry pursuant to section 15.13 203(A)(7) of the INA as in effect prior to April 1, 1980; 15.14 (6) who was granted asylum under section 208 of the INA; or 15.15 (7) who has been battered or subjected to extreme cruelty, 15.16 and has been determined by the United States Attorney General to 15.17 be qualified under section 431(c) of the Personal Responsibility 15.18 and Work Opportunity Reconcilement of 1996, as long as the 15.19 individual responsible for such battery or cruelty does not 15.20 reside in the same household. 15.21 Subd. 79. [REAL PROPERTY.] "Real property" means land and 15.22 all buildings, structures, and improvements, or other fixtures 15.23 on the land, belonging or appertaining to the land, and all 15.24 mines, minerals, fossils, and trees on or under the land. 15.25 Subd. 80. [REASONABLE COMPENSATION.] "Reasonable 15.26 compensation" means the value received in exchange for property 15.27 transferred to another owner that is consistent with fair market 15.28 value and equals or exceeds the seller's equity in the property, 15.29 reduced by costs incurred in the sale. 15.30 Subd. 81. [RECERTIFICATION.] "Recertification" means the 15.31 periodic review of eligibility factors to determine an 15.32 assistance unit's continued eligibility. 15.33 Subd. 82. [RECOUPMENT.] "Recoupment" means the action of 15.34 the local agency to reduce a family's monthly assistance payment 15.35 to recover overpayments caused by client error and overpayments 15.36 received while an appeal is pending. 16.1 Subd. 83. [RECOVERY.] "Recovery" means actions taken by a 16.2 local agency to reclaim the value of overpayments through 16.3 voluntary repayment, recoupment from the assistance payment, 16.4 court action revenue recapture, or federal tax refund offset 16.5 program (FRTOP). 16.6 Subd. 84. [RECURRING INCOME.] "Recurring income" means a 16.7 form of income which is: 16.8 (1) received periodically, and may be received irregularly 16.9 when receipt can be anticipated even though the date of receipt 16.10 cannot be predicted; and 16.11 (2) from the same source or of the same type that is 16.12 received and budgeted in a prospective month and is received in 16.13 one or both of the first two retrospective months. 16.14 Subd. 85. [RETROSPECTIVE BUDGETING.] "Retrospective 16.15 budgeting" means a method of determining the amount of the 16.16 assistance payment in which the payment month is the second 16.17 month after the budget month. 16.18 Subd. 86. [SANCTION.] "Sanction" means the reduction of a 16.19 family's assistance payment of the applicable transitional 16.20 standard because the nonexempt parental caregiver fails to 16.21 develop or comply with the terms of an employment plan or to 16.22 cooperate with child support enforcement, cost-effective 16.23 insurance, or tort liability. 16.24 Subd. 87. [SECONDARY SCHOOL.] "Secondary school" means a 16.25 secondary school as defined under section 120.05, subdivision 2, 16.26 clause (3), or equivalent level technical institute or an 16.27 educational program that provides a GED. 16.28 Subd. 88. [SIGNIFICANT CHANGE.] "Significant change" means 16.29 a decline in gross income of 38 percent or more from the income 16.30 used to determine the grant for the current month. 16.31 Subd. 89. [SUPPLEMENTAL SECURITY INCOME OR 16.32 SSI.] "Supplemental Security Income" or "SSI" means the program 16.33 authorized under title XVI of the Social Security Act. 16.34 Subd. 90. [TITLE IV-D OF THE SOCIAL SECURITY ACT.] "Title 16.35 IV-D of the Social Security Act" means United States Code, title 16.36 42, chapter 7, subchapter IV, part D, sections 651 to 669. 17.1 Subd. 91. [TRANSITIONAL STANDARD.] "Transitional standard" 17.2 means the basic standard for a family with no other income or a 17.3 nonworking family and is a combination of the cash assistance 17.4 needs and food assistance needs for a family of that size. 17.5 Subd. 92. [TRANSITIONAL STATUS.] "Transitional status" 17.6 means the status of caregivers who are independently pursuing 17.7 self-sufficiency or caregivers who are complying with an 17.8 employment plan. 17.9 Subd. 93. [UNEARNED INCOME.] "Unearned income" means 17.10 income received by a person that does not meet the definition of 17.11 earned income. Unearned income includes income from a contract 17.12 for deed, interest, dividends, reemployment insurance, 17.13 disability insurance payments, veterans benefits, pension 17.14 payments, return on capital investment, insurance payments or 17.15 settlements, severance payments, and payments for illness or 17.16 disability whether the premium payments are made in whole or in 17.17 part by an employer or participant. 17.18 Subd. 94. [REEMPLOYMENT INSURANCE.] "Reemployment 17.19 insurance" means the insurance benefit paid to an unemployed 17.20 worker under sections 268.03 to 268.23. 17.21 Subd. 95. [VENDOR.] "Vendor" means a provider of goods or 17.22 services. 17.23 Subd. 96. [VENDOR PAYMENT.] "Vendor payment" means a 17.24 payment authorized by a local agency to a vendor. 17.25 Subd. 97. [VERIFICATION.] "Verification" means the process 17.26 a local agency uses to establish the accuracy or completeness of 17.27 information from an applicant, participant, third party, or 17.28 other source as that information relates to program eligibility 17.29 or an assistance payment. 17.30 Subd. 98. [WRONGFULLY OBTAINING ASSISTANCE.] "Wrongfully 17.31 obtaining assistance" means: 17.32 (1) to obtain or attempt to obtain assistance by means of a 17.33 willfully false statement or representation; 17.34 (2) to conceal a material fact, to impersonate an applicant 17.35 or participant, or to use another fraudulent device that results 17.36 in receiving assistance to which a person is not entitled; or 18.1 (3) to knowingly aid or abet in buying or in any way 18.2 disposing of the property of an applicant or participant in an 18.3 attempt to defeat the purposes of this chapter and chapter 256K. 18.4 Sec. 9. [256J.09] [APPLICATION FOR ASSISTANCE.] 18.5 Subdivision 1. [WHERE TO APPLY.] A person must apply for 18.6 assistance at the local agency in the county where that person 18.7 lives. 18.8 Subd. 2. [LOCAL AGENCY RESPONSIBILITY TO PROVIDE 18.9 INFORMATION.] A local agency must inform a person who inquires 18.10 about assistance about eligibility requirements for assistance 18.11 and how to apply for assistance. A local agency must offer the 18.12 person brochures developed or approved by the commissioner that 18.13 describe how to apply for assistance. 18.14 Subd. 3. [APPLICATION FORM AND ACCOMPANYING ADVISORY.] A 18.15 local agency must offer, in person or by mail, the application 18.16 forms prescribed by the commissioner as soon as a person makes a 18.17 written or oral inquiry. At that time, the local agency must 18.18 inform the person that, if the person is found eligible, 18.19 assistance begins with the date the signed application is 18.20 received by the local agency and that any delay in submitting 18.21 the application will reduce the amount of assistance paid for 18.22 the month of application. A local agency must inform a person 18.23 that the person may submit the application before an interview 18.24 appointment. To apply for assistance, a person must submit a 18.25 signed application to the local agency. Upon receipt of a 18.26 signed application, the local agency must stamp the date of 18.27 receipt on the face of the application. The local agency must 18.28 process the application within the time period required under 18.29 subdivision 7. An applicant may withdraw the application at any 18.30 time by giving written or oral notice to the local agency. The 18.31 local agency must issue a written notice confirming the 18.32 withdrawal. The notice must inform the applicant of the local 18.33 agency's understanding that the applicant has withdrawn the 18.34 application and no longer wants to pursue it. When, within ten 18.35 days of the date of the agency's notice, an applicant informs a 18.36 local agency, in writing, that the applicant does not wish to 19.1 withdraw the application, the local agency must reinstate the 19.2 application and finish processing the application. 19.3 Subd. 4. [ASSESSMENT OF AND ISSUANCE FOR INITIAL NEEDS.] 19.4 When a person inquires about assistance, a local agency must ask 19.5 the person if immediate or emergency needs exist. When a person 19.6 has emergency needs, the local agency must determine that 19.7 person's eligibility for emergency assistance or emergency 19.8 general assistance unless the person's needs can be met through 19.9 other sources or by promptly processing an application for 19.10 monthly assistance. The local agency must also assess 19.11 eligibility for expedited issuance of food stamp assistance 19.12 which requires priority processing of applications as specified 19.13 in subdivision 5. 19.14 Subd. 5. [EXPEDITED ISSUANCE OF FOOD STAMP ASSISTANCE.] 19.15 The following households are entitled to expedited issuance of 19.16 food stamp assistance: 19.17 (1) households with less than $150 in monthly gross income 19.18 provided their cash on hand, checking or savings accounts, 19.19 savings certificates, and lump-sum payments do not exceed $100; 19.20 (2) migrant or seasonal farm worker households who are 19.21 destitute as defined in Code of Federal Regulations, title 7, 19.22 subtitle B, chapter 2, subchapter C, part 273, section 273.10, 19.23 paragraph (e)(3), provided their cash on hand, checking or 19.24 savings accounts, savings certificates, and lump-sum payments do 19.25 not exceed $100; and 19.26 (3) eligible households whose combined monthly gross income 19.27 and liquid resources are less than the household's monthly rent 19.28 or mortgage and utilities. 19.29 When all verifications have been provided, the benefits 19.30 issued through expedited issuance of food stamp assistance must 19.31 be deducted from the amount of the full monthly MFIP-S 19.32 assistance payment and a supplemental payment for the difference 19.33 must be issued. 19.34 Subd. 6. [VERIFICATION OF INFORMATION ON APPLICATION.] A 19.35 local agency must verify information provided by an applicant as 19.36 required in section 256J.15. 20.1 Subd. 7. [PROCESSING APPLICATIONS.] Upon receiving an 20.2 application, a local agency must determine the applicant's 20.3 eligibility, approve or deny the application, inform the 20.4 applicant of its decision according to section 256J.31, and 20.5 issue the assistance payment when the applicant is eligible. 20.6 When a local agency is unable to process an application within 20.7 30 days, the local agency must inform the applicant of the 20.8 reason in writing. When an applicant establishes the inability 20.9 to provide required verification within the 30-day processing 20.10 period, the local agency may not use the expiration of that 20.11 period as the basis for denial. 20.12 Subd. 8. [INVALID REASON FOR DELAY.] A local agency must 20.13 not delay a decision on eligibility or delay issuing the 20.14 assistance payment except to establish state residence by: 20.15 (1) treating the 30-day processing period as a waiting 20.16 period; 20.17 (2) delaying approval or issuance of the assistance payment 20.18 pending the decision of the county board; or 20.19 (3) awaiting the result of a referral to a local agency in 20.20 another county when the county receiving the application does 20.21 not believe it is the county of financial responsibility. 20.22 Subd. 9. [CHANGES IN RESIDENCE DURING APPLICATION.] The 20.23 requirements in subdivisions 7 and 8 apply without regard to the 20.24 length of time that an applicant remains, or intends to remain, 20.25 a resident of the county in which the application is made. When 20.26 an applicant leaves the county where application was made but 20.27 remains in the state, section 256J.35 applies and the local 20.28 agency may request additional information from the applicant 20.29 about changes in circumstances related to the move. 20.30 Subd. 10. [ADDITIONAL APPLICATIONS.] Until a local agency 20.31 issues notice of approval or denial, additional applications 20.32 submitted by an applicant are void. However, an application for 20.33 monthly assistance and an application for emergency assistance 20.34 or emergency general assistance may exist concurrently. More 20.35 than one application for monthly assistance, emergency 20.36 assistance, or emergency general assistance may exist 21.1 concurrently when the local agency decisions on one or more 21.2 earlier applications have been appealed to the commissioner, and 21.3 the applicant asserts that a change in circumstances has 21.4 occurred that would allow eligibility. A local agency must 21.5 require additional application forms or supplemental forms as 21.6 prescribed by the commissioner when a payee's name changes, or 21.7 when a caregiver requests the addition of another person to the 21.8 assistance unit. 21.9 Subd. 11. [ADDENDUM TO AN EXISTING APPLICATION.] An 21.10 addendum to an existing application shall be used to add persons 21.11 to an assistance unit regardless of whether the persons being 21.12 added are required to be in the assistance unit. When a person 21.13 is added by addendum to an assistance unit, eligibility for that 21.14 person begins on the first of the month the addendum was filed 21.15 except as provided in section 256J.34, subdivision 2, paragraph 21.16 (b). 21.17 Subd. 12. [APPLICANTS WHO DO NOT MEET ELIGIBILITY 21.18 REQUIREMENTS FOR MFIP-S.] When an applicant is not eligible for 21.19 MFIP-S because the applicant does not meet eligibility 21.20 requirements, the local agency must determine whether the 21.21 applicant is eligible for food stamps, Medical assistance, or 21.22 has a need for emergency assistance and assistance when the 21.23 applicant meets the eligibility requirements for those programs. 21.24 Subd. 13. [NOTICE TO APPLICANT WHEN NOT ELIGIBLE FOR 21.25 ASSISTANCE.] When an applicant is not eligible for assistance, 21.26 the local agency must deny the application and provide the 21.27 applicant with notice as required in section 256J.31. 21.28 Sec. 10. [256J.10] [MFIP-S ELIGIBILITY REQUIREMENTS.] 21.29 To be eligible for MFIP-S, applicants must meet the general 21.30 eligibility requirements in section 256J.11, the property 21.31 limitations in section 256J.13, and the income limitations in 21.32 section 256J.14. 21.33 Sec. 11. [256J.11] [GENERAL ELIGIBILITY REQUIREMENTS.] 21.34 Subdivision 1. [CITIZENSHIP.] A member of the assistance 21.35 unit is a citizen of the United States or a qualified 21.36 noncitizen, as defined in section 256J.08. 22.1 Subd. 2. [MINNESOTA RESIDENCE.] (a) A family meets 22.2 Minnesota's residency requirement when a child or caregiver has 22.3 resided in Minnesota for at least 30 days. A child or caregiver 22.4 relative who has maintained a residence in Minnesota for less 22.5 than 30 days is considered to be a Minnesota resident if the 22.6 child or the caregiver meets one of the following criteria: 22.7 (1) either the minor child or the caregiver relative was 22.8 born in Minnesota; 22.9 (2) either the minor child or the caregiver relative has, 22.10 in the past, resided in Minnesota for at least 12 consecutive 22.11 months; 22.12 (3) either the minor child or the caregiver relative came 22.13 to this state to join a close relative who has resided in this 22.14 state for at least 12 consecutive months. For the purpose of 22.15 this section, "close relative" means a parent, grandparent, 22.16 brother, sister, spouse, or child; 22.17 (4) the caregiver relative came to this state to accept a 22.18 bona fide offer of employment and was eligible to accept the 22.19 employment; or 22.20 (5) the caregiver relative is a migrant worker who entered 22.21 the state to seek employment. 22.22 (b) A county may waive the 30-day residency requirement in 22.23 case of emergency or where unusual hardship would result from 22.24 denial of assistance. 22.25 (c) A family who moves to Minnesota from another state 22.26 shall be paid at the standard required in section 256J.24, 22.27 subdivision 6. 22.28 Subd. 3. [MINOR CHILD IN ASSISTANCE UNIT.] The assistance 22.29 unit must include at least one minor child or a pregnant woman. 22.30 If a minor child is a recipient of SSI or MSA, the assistance 22.31 unit is eligible for MFIP-S, but the needs of the minor child 22.32 receiving SSI or MSA must not be taken into account when the 22.33 local agency determines the amount of the assistance payment to 22.34 be paid to the assistance unit. 22.35 Subd. 4. [PHYSICAL PRESENCE.] A minor child and a 22.36 caregiver must live together except as provided in paragraphs 23.1 (a) to (c). 23.2 (a) The physical presence requirement is met when a minor 23.3 child is required to live away from the caregiver's home to meet 23.4 the need for educational curricula that cannot be met by, but is 23.5 approved by, the local public school district, the home is 23.6 maintained for the minor child's return during periodic school 23.7 vacations, and the caregiver continues to maintain 23.8 responsibility for the support and care of the minor child. 23.9 (b) The physical presence requirement is met when an 23.10 applicant caregiver or applicant minor child is away from the 23.11 home due to illness or hospitalization when the home is 23.12 maintained for the return of the absent family member, the 23.13 absence is not expected to last more than six months beyond the 23.14 month of departure, and the conditions of clause (1), (2), or 23.15 (3) apply: 23.16 (1) when the minor child and caregiver lived together 23.17 immediately prior to the absence, the caregiver continues to 23.18 maintain responsibility for the support and care of the minor 23.19 child, and the absence is reported at the time of application; 23.20 (2) when the pregnant mother is hospitalized or out of the 23.21 home due to the pregnancy; or 23.22 (3) when the newborn child and mother are hospitalized at 23.23 the time of birth. 23.24 (c) The absence of a caregiver or minor child does not 23.25 affect eligibility for the month of departure when the caregiver 23.26 or minor child received assistance for that month and lived 23.27 together immediately prior to the absence. Eligibility also 23.28 exists in the following month when the absence ends on or before 23.29 the tenth day of that month. A temporary absence of a caregiver 23.30 or a minor child which continues beyond the month of departure 23.31 must not affect eligibility when the home is maintained for the 23.32 return of the absent family member, the caregiver continues to 23.33 maintain responsibility for the support and care of the minor 23.34 child, and one of clauses (1) to (7) applies: 23.35 (1) a participant caregiver or participant child is absent 23.36 due to illness or hospitalization, and the absence is expected 24.1 to last no more than six months beyond the month of departure; 24.2 (2) a participant child is out of the home due to placement 24.3 in foster care as defined in section 260.015, subdivision 7, 24.4 when the placement will not be paid under title IV-E of the 24.5 Social Security Act, and when the absence is expected to last no 24.6 more than six months beyond the month of departure; 24.7 (3) a participant minor child is out of the home for a 24.8 vacation, the vacation is not with an absent parent, and the 24.9 absence is expected to last no more than two months beyond the 24.10 month of departure; 24.11 (4) a participant minor child is out of the home due to a 24.12 visit or vacation with an absent parent, the home of the minor 24.13 child remains with the caregiver, the absence meets the 24.14 conditions of subdivision 4, paragraph (c), and the absence is 24.15 expected to last no more than two months beyond the month of 24.16 departure; 24.17 (5) a participant caregiver is out of the home due to a 24.18 death or illness of a relative, incarceration, training, or 24.19 employment search and suitable arrangements have been made for 24.20 the care of the minor child, or a participant minor child is out 24.21 of the home due to incarceration, and the absence is expected to 24.22 last no more than two months beyond the month of departure; 24.23 (6) a participant caregiver and a participant minor child 24.24 are both absent from Minnesota due to a situation described in 24.25 clause (5), or vacation, and the absence is expected to last no 24.26 more than one month beyond the month of the departure; or 24.27 (7) a participant minor child has run away from home, and 24.28 another person has not made application for that minor child, 24.29 assistance must continue for no more than two months following 24.30 the month of departure. 24.31 Subd. 5. [PARENTING OR PREGNANT MINORS; RESTRICTION ON 24.32 ASSISTANCE WITH FEDERAL EXCEPTIONS.] (a) The definitions in this 24.33 paragraph only apply to this subdivision. 24.34 (1) "Household of a parent, legal guardian, or other adult 24.35 relative" means the place of residence of: 24.36 (i) a natural or adoptive parent; 25.1 (ii) a legal guardian according to appointment or 25.2 acceptance under section 260.242, 525.615, or 525.6165, and 25.3 related laws; or 25.4 (iii) a caregiver. 25.5 (2) "Adult-supervised supportive living arrangement" means 25.6 a private family setting which assumes responsibility for the 25.7 care and control of the minor parent and dependent child, or 25.8 other living arrangement, not including a public institution, 25.9 licensed by the commissioner of human services which ensures 25.10 that the minor parent receives adult supervision and supportive 25.11 services, such as counseling, guidance, independent living 25.12 skills training, or supervision. 25.13 (b) A minor parent and the dependent child who is in the 25.14 care of the minor parent must reside in the household of a 25.15 parent, legal guardian, or other adult relative, or in an 25.16 adult-supervised supportive living arrangement in order to 25.17 receive MFIP-S unless: 25.18 (1) the minor parent has no living parent or legal guardian 25.19 whose whereabouts is known; 25.20 (2) no living parent or legal guardian of the minor parent 25.21 allows the minor parent to live in the parent's or legal 25.22 guardian's home; 25.23 (3) the minor parent lived apart from the minor parent's 25.24 own parent or legal guardian for a period of at least one year 25.25 before either the birth of the dependent child or the minor 25.26 parent's application for MFIP-S; 25.27 (4) the physical or emotional health or safety of the minor 25.28 parent or dependent child would be jeopardized if the minor 25.29 parent and the dependent child resided in the same residence 25.30 with the minor parent's parent or legal guardian; or 25.31 (5) the minor parent and dependent child have, on October 25.32 1, 1995, been living independently as part of an approved social 25.33 services plan for less than one year. 25.34 (c) Minor applicants must be informed orally and in writing 25.35 about the eligibility requirements and their rights and 25.36 obligations under the MFIP-S program. The county must advise 26.1 the minor of the possible exemptions and specifically ask 26.2 whether one or more of these exemptions is applicable. If the 26.3 minor alleges one or more of these exemptions, then the county 26.4 must assist the minor in obtaining the necessary verifications 26.5 to determine whether or not these exemptions apply. 26.6 (d) If the county worker has reason to suspect that the 26.7 physical or emotional health or safety of the minor parent or 26.8 dependent child would be jeopardized if they resided with the 26.9 minor parent's parent or legal guardian, then the county worker 26.10 must make a referral to child protective services to determine 26.11 if paragraph (b), clause (4), applies. A new determination by 26.12 the county worker is not necessary if one has been made within 26.13 the last six months, unless there has been a significant change 26.14 in circumstances which justifies a new referral and 26.15 determination. 26.16 (e) If a minor parent is not living with a parent or legal 26.17 guardian due to paragraph (b), clause (1), (2), or (4), the 26.18 minor parent must reside, when possible, in a living arrangement 26.19 that meets the standards of paragraph (a), clause (2). 26.20 (f) When a minor parent and dependent child live with 26.21 another adult relative, or in an adult-supervised supportive 26.22 living arrangement, MFIP-S must be paid, when possible, in the 26.23 form of a protective payment on behalf of the minor parent and 26.24 dependent child in accordance with section 256J.24, subdivisions 26.25 2 to 4. 26.26 Subd. 6. [ELIGIBILITY DURING LABOR DISPUTES.] An 26.27 assistance unit with a member on strike must be a participant on 26.28 the day before the strike, or have been eligible for MFIP-S on 26.29 the day before the strike. 26.30 The local agency must count the striker's prestrike 26.31 earnings as current earnings. When a member of an assistance 26.32 unit who is not in the bargaining unit that voted for the strike 26.33 does not cross the picket line for fear of personal injury, the 26.34 assistance unit member is not a striker. Except for a member of 26.35 an assistance unit who is not in the bargaining unit that voted 26.36 for the strike and who does not cross the picket line for fear 27.1 of personal injury, a significant change cannot be invoked as a 27.2 result of a labor dispute. 27.3 Subd. 7. [ASSIGNMENT OF SUPPORT AND MAINTENANCE RIGHTS.] 27.4 To be eligible for MFIP-S, the caregiver must assign all rights 27.5 to child support and spousal maintenance benefits according to 27.6 section 256.74, subdivision 5. 27.7 Subd. 8. [REQUIREMENT TO PROVIDE SOCIAL SECURITY NUMBERS.] 27.8 Each member of the assistance unit must provide the member's 27.9 social security number to the local agency. When a social 27.10 security number is not provided to the local agency for 27.11 verification, this requirement is satisfied when each member of 27.12 the assistance unit cooperates with the procedures for 27.13 verification of numbers. 27.14 Subd. 9. [SHARED; COURT ORDERED; AND OTHER CUSTODY 27.15 ARRANGEMENTS.] The language of a court order that specifies 27.16 joint legal or physical custody does not preclude a 27.17 determination that a parent is absent. Absence must be 27.18 determined based on the actual facts of the absence according to 27.19 paragraphs (a) to (c). 27.20 (a) When a minor child spends time in each of the parents' 27.21 homes within a payment month, the minor child's home shall be 27.22 considered the home in which the majority of the minor child's 27.23 time is spent. When this time is exactly equal within a payment 27.24 month, or when the parents alternately live in the minor child's 27.25 home within a payment month, the minor child's home shall be 27.26 with that parent who is applying for MFIP, unless the minor 27.27 child's needs for the full payment month have already been met 27.28 through the provision of assistance to the other parent for that 27.29 month. 27.30 (b) When the physical custody of a minor child alternates 27.31 between parents for periods of at least one payment month, each 27.32 parent shall be eligible for assistance for any full payment 27.33 months the minor child's home is with that parent, except under 27.34 the conditions in paragraph (c). 27.35 (c) When a minor child's home is with one parent for the 27.36 majority of time in each month for at least nine consecutive 28.1 calendar months, and that minor child visits or vacations with 28.2 the other parent under the provisions of subdivision 4, 28.3 paragraph (c), clause (4), the minor child's home shall remain 28.4 with the first parent even when the stay with the second parent 28.5 is for all or the majority of the months in the period of the 28.6 temporary absence. 28.7 Sec. 12. [256J.12] [PROHIBITIONS FROM RECEIVING MFIP-S.] 28.8 Subdivision 1. [TIME LIMITS.] An assistance unit in which 28.9 any adult caregiver has received 60 months of cash assistance 28.10 funded in whole or in part by the TANF block grant is ineligible 28.11 to receive MFIP-S. Any cash assistance funded with TANF dollars 28.12 which was received by the unit on or after the date TANF was 28.13 implemented, including any states of prior residence, counts 28.14 toward the 60-month limitation. The 60-month time period does 28.15 not need to be consecutive months for this provision to apply. 28.16 The state may exempt a family from the application of the 28.17 60-month time limit by reason of hardship or if the family 28.18 includes an individual who has been battered or subjected to 28.19 extreme cruelty. The number of families who are eligible for 28.20 this exemption shall not exceed 20 percent of the average 28.21 monthly number of families to which assistance is provided under 28.22 MFIP-S. 28.23 Subd. 1a. [ADULTS LIVING ON AN INDIAN RESERVATION.] In 28.24 determining the number of months for which an adult has received 28.25 assistance under TANF, disregard any month during which the 28.26 adult lived on an Indian reservation if, during the month: 28.27 (1) at least 1,000 individuals were living on the 28.28 reservation; and 28.29 (2) at least 50 percent of the adults living on the 28.30 reservation were unemployed. 28.31 Subd. 2. [PAROLE VIOLATORS.] An individual violating a 28.32 condition of probation or parole imposed under federal or state 28.33 law is ineligible to receive MFIP-S. 28.34 Subd. 3. [FLEEING FELONS.] An individual who is fleeing to 28.35 avoid prosecution, or custody, or confinement after conviction 28.36 for a crime which is a felony under the laws of the state from 29.1 which the individual flees, or in the case of New Jersey, is a 29.2 high misdemeanor is ineligible to receive MFIP-S. 29.3 Subd. 4. [ASSISTANCE FROM ANOTHER STATE.] An individual 29.4 whose needs have been otherwise provided for, in another state, 29.5 in whole or part by the TANF block grant during a month is 29.6 ineligible to receive MFIP-S. 29.7 Subd. 5. [NONCITIZENS INELIGIBLE FOR MFIP-S FOOD PORTION.] 29.8 Noncitizens who do not meet one of the exemptions in section 412 29.9 of the Personal Responsibility and Work Opportunity Act of 1996 29.10 are not eligible for the food portion of MFIP-S. 29.11 Sec. 13. [256J.13] [PROPERTY LIMITATIONS.] 29.12 Subdivision 1. [PROPERTY OWNERSHIP PROVISIONS.] The local 29.13 agency must apply paragraphs (a) to (d) to real and personal 29.14 property. The local agency must use the equity value of legally 29.15 available real and personal property, except property excluded 29.16 in subdivisions 2 and 3, to determine whether an applicant or 29.17 participant is eligible for assistance. 29.18 (a) When real or personal property is jointly owned by two 29.19 or more persons, the local agency shall assume that each person 29.20 owns an equal share, except that either person owns the entire 29.21 sum of a joint personal checking or savings account. When an 29.22 applicant or participant documents greater or lesser ownership, 29.23 the local agency must use that greater or lesser share to 29.24 determine the equity value held by the applicant or 29.25 participant. Other types of ownership must be evaluated 29.26 according to law. 29.27 (b) Real or personal property owned by the applicant or 29.28 participant must be presumed legally available to the applicant 29.29 or participant unless the applicant or participant documents 29.30 that the property is not legally available to the applicant or 29.31 participant. When real or personal property is not legally 29.32 available, its equity value must not be applied against the 29.33 limits of subdivisions 2 and 3. 29.34 (c) An applicant must disclose whether the applicant has 29.35 transferred real or personal property valued in excess of the 29.36 property limits in subdivisions 2 and 3 for which reasonable 30.1 compensation was not received within one year prior to 30.2 application. A participant must disclose all transfers of 30.3 property valued in excess of these limits, according to the 30.4 reporting requirements in section 256J.30, subdivision 9. When 30.5 a transfer of real or personal property without reasonable 30.6 compensation has occurred, clauses (1) and (2) apply: 30.7 (1) the person who transferred the property must provide 30.8 the property's description, information needed to determine the 30.9 property's equity value, the names of persons who received the 30.10 property, and the circumstances of and reasons for the transfer; 30.11 and 30.12 (2) when the transferred property can be reasonably 30.13 reacquired, or when reasonable compensation can be secured, the 30.14 property is presumed legally available to the applicant or 30.15 participant. 30.16 (d) A participant may build the equity value of real and 30.17 personal property to the limits in subdivisions 2 and 3. 30.18 Subd. 2. [REAL PROPERTY LIMITATIONS.] Ownership of real 30.19 property by an applicant or participant is subject to the 30.20 limitations in paragraphs (a) and (b). 30.21 (a) A local agency shall exclude the homestead of an 30.22 applicant or participant according to clauses (1) to (3). 30.23 (1) an applicant or participant who is purchasing real 30.24 property through a contract for deed and using that property as 30.25 a home is considered the owner of real property; 30.26 (2) the total amount of land that can be excluded under 30.27 this subdivision is limited to surrounding property which is not 30.28 separated from the home by intervening property owned by 30.29 others. Additional property must be assessed as to its legal 30.30 and actual availability according to subdivision 1; and 30.31 (3) when real property that has been used as a home by a 30.32 participant is sold, the local agency must treat the cash 30.33 proceeds from the sale as excluded property for six months when 30.34 the participant intends to reinvest the proceeds in another home 30.35 and maintains those proceeds, unused for other purposes, in a 30.36 separate account. 31.1 (b) The equity value of real property that is not excluded 31.2 under paragraph (a) and which is legally available must be 31.3 applied against the limits in subdivision 3. When the equity 31.4 value of the real property exceeds the limits under subdivision 31.5 3, the applicant or participant may qualify to receive 31.6 assistance for a consecutive nine-month period when the 31.7 applicant or participant makes a good faith effort to sell the 31.8 property and signs a legally binding agreement to repay the 31.9 amount of assistance issued during that nine months, less child 31.10 support collected by the agency. When the property is sold 31.11 during the nine-month period, repayment must be made within five 31.12 working days after the property is sold. Repayment to the local 31.13 agency must be in the amount of assistance received or the 31.14 proceeds of the sale, whichever is less. If the property is not 31.15 sold during the nine-month period, the local agency must 31.16 terminate MFIP-S assistance. When the property is sold, the 31.17 former participant must repay the local agency within five 31.18 working days after the property is sold. Repayment to the local 31.19 agency must be in the amount of the assistance received or the 31.20 proceeds of the sale, whichever is less. 31.21 Subd. 3. [OTHER PROPERTY LIMITATIONS.] To be eligible for 31.22 MFIP-S, the equity value of all nonexcluded real and personal 31.23 property of the assistance unit must not exceed $2,000 for 31.24 applicant families and $5,000 for ongoing recipients. The value 31.25 of paragraphs (1) to (16) must be excluded when determining the 31.26 equity value of real and personal property: 31.27 (1) the value of one licensed automobile, truck, or van for 31.28 each adult in the assistance unit. Count the equity value of 31.29 all other vehicles up to a total equity value and apply this 31.30 amount to the resource limit described in this section, 31.31 exclusive of the value of special equipment for a handicapped 31.32 member of the assistance. To establish the equity value of 31.33 vehicles, a local agency must subtract any outstanding 31.34 encumbrances from the loan value listed in the N.A.D.A. Official 31.35 Used Car Guide, Midwest Edition, for newer model cars. The 31.36 N.A.D.A. Official Used Car Guide, Midwest Edition, is 32.1 incorporated by reference. When a vehicle is not listed in the 32.2 guidebook, or when the applicant or participant disputes the 32.3 value listed in the guidebook as unreasonable given the 32.4 condition of the particular vehicle, the local agency may 32.5 require the applicant or participant to document the value by 32.6 securing a written statement from a motor vehicle dealer 32.7 licensed under section 168.27, stating the amount that the 32.8 dealer would pay to purchase the vehicle. The local agency 32.9 shall reimburse the applicant or participant for the cost of a 32.10 written statement that documents a lower value; 32.11 (2) the value of life insurance policies for members of the 32.12 assistance unit; 32.13 (3) one burial plot per member of an assistance unit; 32.14 (4) the value of personal property needed to produce earned 32.15 income, including tools, implements, farm animals, inventory, 32.16 business loans, business checking and savings accounts used 32.17 exclusively for the operation of a self-employment business, and 32.18 any motor vehicles if the vehicles are essential for the 32.19 self-employment business; 32.20 (5) the value of personal property not otherwise specified 32.21 which is commonly used by household members in day-to-day living 32.22 such as clothing, necessary household furniture, equipment, and 32.23 other basic maintenance items essential for daily living; 32.24 (6) the value of real and personal property owned by a 32.25 recipient of SSI or MSA; 32.26 (7) the value of corrective payments, but only for the 32.27 month in which the payment is received and for the following 32.28 month; 32.29 (8) a mobile home used by an applicant or participant as 32.30 the applicant's or participant's home; 32.31 (9) money in a separate escrow account that is needed to 32.32 pay real estate taxes or insurance and that is used for this 32.33 purpose; 32.34 (10) money held in escrow to cover employee FICA, employee 32.35 tax withholding, sales tax withholding, employee worker 32.36 compensation, business insurance, property rental, property 33.1 taxes, and other costs that are paid at least annually, but less 33.2 often than monthly; 33.3 (11) monthly assistance and emergency assistance payments 33.4 for the current month's needs; 33.5 (12) the value of school loans, grants, or scholarships for 33.6 the period they are intended to cover; 33.7 (13) payments listed in section 256J.14, subdivision 2, 33.8 clause (9), which are held in escrow for a period not to exceed 33.9 three months to replace or repair personal or real property; 33.10 (14) income received in a budget month through the end of 33.11 the budget month; 33.12 (15) the earned income credit and Minnesota working family 33.13 credit in the month received and the following month; and 33.14 (16) payments excluded under federal law as long as those 33.15 payments are held in a separate account from any nonexcluded 33.16 funds. 33.17 Sec. 14. [256J.14] [INCOME LIMITATIONS.] 33.18 Subdivision 1. [INCOME INCLUSIONS.] To determine MFIP-S 33.19 eligibility, the local agency must evaluate income received by 33.20 members of an assistance unit, or by other persons whose income 33.21 is considered available to the assistance unit. All payments, 33.22 unless specifically excluded in subdivision 2, must be counted 33.23 as income. 33.24 Subd. 2. [INCOME EXCLUSIONS.] The following shall be 33.25 excluded in determining a family's available income: 33.26 (1) payments for basic care, difficulty of care, and 33.27 clothing allowances received for providing family foster care to 33.28 children or adults under Minnesota Rules, parts 9545.0010 to 33.29 9545.0260 and 9555.5050 to 9555.6265, and payments received and 33.30 used for care and maintenance of a third-party beneficiary who 33.31 is not a household member; 33.32 (2) reimbursements for employment training received through 33.33 the Job Training Partnership Act, United States Code, title 29, 33.34 chapter 19, sections 1501 to 1792b; 33.35 (3) reimbursement for out-of-pocket expenses incurred while 33.36 performing volunteer services, jury duty, or employment; 34.1 (4) all educational grants and loans, including income from 34.2 work-study programs; 34.3 (5) loans, regardless of purpose, from public or private 34.4 lending institutions, governmental lending institutions, or 34.5 governmental agencies; 34.6 (6) loans from private individuals, regardless of purpose, 34.7 provided an applicant or participant documents that the lender 34.8 expects repayment; 34.9 (7) state and federal income tax refunds; 34.10 (8) state and federal earned income credits; 34.11 (9) funds received for reimbursement, replacement, or 34.12 rebate of personal or real property when these payments are made 34.13 by public agencies, awarded by a court, solicited through public 34.14 appeal, or made as a grant by a federal agency, state or local 34.15 government, or disaster assistance organizations, subsequent to 34.16 a presidential declaration of disaster; 34.17 (10) the portion of an insurance settlement that is used to 34.18 pay medical, funeral, and burial expenses, or to repair or 34.19 replace insured property; 34.20 (11) reimbursements for medical expenses which cannot be 34.21 paid by medical assistance; 34.22 (12) payments by a vocational rehabilitation program 34.23 administered by the state under chapter 268A, except those 34.24 payments that are for current living expenses; 34.25 (13) in-kind income, including any payments directly made 34.26 by a third party to a provider of goods and services; 34.27 (14) assistance payments to correct underpayments, but only 34.28 for the month in which the payment is received; 34.29 (15) emergency assistance payments; 34.30 (16) funeral and cemetery payments as provided by section 34.31 256.935; 34.32 (17) nonrecurring cash gifts of $30 or less, not exceeding 34.33 $30 per participant in a calendar month; 34.34 (18) any form of energy assistance payment made by LIHEAP, 34.35 payments made directly to energy providers by other public and 34.36 private agencies, benefits issued by energy providers when the 35.1 Minnesota department of economic security determines that those 35.2 payments qualify under Code of Federal Regulations, title 45, 35.3 subtitle B, chapter II, part 233, section 233.53, and any form 35.4 of credit or rebate payment issued by energy providers; 35.5 (19) SSI, including retroactive payments; 35.6 (20) MSA, including retroactive payments; 35.7 (21) proceeds from the sale of real or personal property; 35.8 (22) payments for subsidized adoptions as provided by 35.9 section 259.67; 35.10 (23) state-funded family subsidy program payments made 35.11 under section 252.32 to help families care for children with 35.12 mental retardation or related conditions; 35.13 (24) interest payments and dividends from property that is 35.14 not excluded from and that does not exceed the asset limit; 35.15 (25) income that is otherwise specifically excluded from 35.16 the MFIP-S program consideration in federal law, state law, or 35.17 federal regulation; 35.18 (26) rent rebates; 35.19 (27) income earned by a minor caregiver or minor child who 35.20 is at least a half-time student; 35.21 (28) MFIP-S child care payments; 35.22 (29) all other payments made through MFIP-S to support a 35.23 caregiver's pursuit of greater self-support; 35.24 (30) income a participant receives related to shared living 35.25 expenses; 35.26 (31) reverse mortgages; 35.27 (32) benefits provided by the Child Nutrition Act of 1966, 35.28 United States Code, title 42, chapter 13A, sections 1771 to 35.29 1790; 35.30 (33) benefits provided by the women, infants, and children 35.31 (WIC) nutrition program, United States Code, title 42, chapter 35.32 13A, section 1786; 35.33 (34) benefits from the National School Lunch Act, United 35.34 States Code, title 42, chapter 13, sections 1751 to 1769e; 35.35 (35) relocation assistance for displaced persons under the 35.36 Uniform Relocation Assistance and Real Property Acquisition 36.1 Policies Act of 1970, United States Code, title 42, chapter 61, 36.2 subchapter II, section 4636, or the National Housing Act, United 36.3 States Code, title 12, chapter 13, sections 1701 to 1750jj; 36.4 (36) benefits from the Trade Act of 1974, United States 36.5 Code, title 19, chapter 12, part 2, sections 2271 to 2322; 36.6 (37) war reparations payments to Japanese Americans and 36.7 Aleuts under United States Code, title 50, sections 1989 to 36.8 1989d; 36.9 (38) payments to veterans or their dependents as a result 36.10 of legal settlements regarding Agent Orange or other chemical 36.11 exposure under Public Law Number 101-239, section 10405, 36.12 paragraph (a)(2)(E); 36.13 (39) security and utility deposit refunds; and 36.14 (40) American Indian tribal land settlements excluded under 36.15 Public Law Numbers 98-123, 98-124, and 99-377 to the Mississippi 36.16 Band Chippewa Indians of White Earth, Leech Lake, and Mille Lacs 36.17 reservations and payments to members of the White Earth Band, 36.18 under United States Code, title 25, chapter 9, section 331, and 36.19 chapter 16, section 1407. 36.20 Subd. 3. [INITIAL INCOME TEST.] The local agency shall 36.21 determine initial eligibility by considering all earned and 36.22 unearned income that is not excluded under subdivision 2. To be 36.23 eligible for MFIP-S, the assistance unit's countable income 36.24 minus the disregards in paragraphs (a) to (c) must be below the 36.25 transitional standard of assistance according to section 256J.16 36.26 for that size assistance unit. 36.27 (a) When determining initial eligibility and when 36.28 determining income deemed from members who do not elect to be 36.29 included in the assistance unit, the employment disregard is 18 36.30 percent of the gross earned income whether or not the member is 36.31 working full time or part time. 36.32 (b) When determining initial eligibility, dependent care 36.33 costs must be deducted from gross earned income for the actual 36.34 amount paid for dependent care up to the maximum disregard 36.35 allowed under this chapter and chapter 119B. 36.36 (c) Notwithstanding paragraph (a), when determining initial 37.1 eligibility for participants who have received AFDC, family 37.2 general assistance, or MFIP-S in Minnesota within four months of 37.3 the most recent application for MFIP-S, the employment disregard 37.4 is 38 percent of the gross earned income. 37.5 After initial eligibility is established, the assistance 37.6 payment calculation is based on the monthly income test. 37.7 Subd. 4. [MONTHLY INCOME TEST AND DETERMINATION OF 37.8 ASSISTANCE PAYMENT.] The local agency shall determine ongoing 37.9 eligibility and the assistance payment amount according to the 37.10 monthly income test. To be eligible for MFIP-S, the result of 37.11 the computations in paragraphs (a) to (d) must be at least one 37.12 dollar. 37.13 (a) Apply a 38 percent income disregard to gross earnings 37.14 and subtract this amount from the family wage level. If the 37.15 difference is equal to or greater than the transitional 37.16 standard, the assistance payment is equal to the transitional 37.17 standard. If the difference is less than the transitional 37.18 standard, the assistance payment is equal to the difference. 37.19 The employment disregard in this paragraph must be deducted 37.20 every month there is earned income. 37.21 (b) Subtract unearned income dollar for dollar from the 37.22 transitional standard to determine assistance payment amount. 37.23 (c) When income is both earned and unearned, the amount of 37.24 the assistance payment must be determined by first treating 37.25 gross earned income as specified in paragraph (a). After 37.26 determining the amount of the assistance payment under paragraph 37.27 (a), unearned income must be subtracted from that amount dollar 37.28 for dollar to determine the assistance payment amount. 37.29 (d) When the monthly income is greater than the 37.30 transitional or family wage level standard after applicable 37.31 deductions and the income will only exceed the standard for one 37.32 month, the local agency must suspend the assistance payment for 37.33 the payment month. 37.34 Subd. 5. [DISTRIBUTION OF INCOME.] The income of all 37.35 members of the assistance unit must be counted. Income may also 37.36 be deemed from ineligible household members to the assistance 38.1 unit. Income must be attributed to the person who earns it or 38.2 to the assistance unit according to paragraphs (a) to (c). 38.3 (a) Funds distributed from a trust, whether from the 38.4 principal holdings or sale of trust property or from the 38.5 interest and other earnings of the trust holdings, must be 38.6 considered income when the income is legally available to an 38.7 applicant or participant. Trusts are presumed legally available 38.8 unless an applicant or participant can document that the trust 38.9 is not legally available. 38.10 (b) Income from jointly owned property must be divided 38.11 equally among property owners unless the terms of ownership 38.12 provide for a different distribution. 38.13 (c) Deductions are not allowed from the gross income of a 38.14 financially responsible household member or by the members of an 38.15 assistance unit to meet a current or prior debt. 38.16 Subd. 6. [DEEMED INCOME FROM INELIGIBLE HOUSEHOLD 38.17 MEMBERS.] (a) Ineligible household members shall deem their 38.18 income after allowing the following disregards: 38.19 (1) the first 18 percent of the excluded family member's 38.20 gross earned income; 38.21 (2) an amount for the needs of the ineligible household 38.22 member, which is equal to the difference between the current 38.23 grant and the grant if the ineligible household member was 38.24 included in the assistance unit; and 38.25 (3) an amount for the needs of other persons who live in 38.26 the household but are ineligible for MFIP-S. The amount 38.27 attributed to the needs of this person is the same as in clause 38.28 (2). 38.29 (b) Local agencies shall not allow income disregards for 38.30 persons who are ineligible for MFIP-S as a result of a 38.31 court-ordered disqualification, a pretrial diversion, or a 38.32 disqualification consent agreement for public assistance fraud. 38.33 Subd. 7. [DEEMED INCOME OF SPONSOR OF NONCITIZENS.] (a) 38.34 All income of a sponsor, or sponsor's spouse, who executed an 38.35 affidavit of support for a noncitizen shall be deemed to be 38.36 unearned income of the noncitizen as specified in the Personal 39.1 Responsibility and Work Opportunity Act of 1996 and subsequently 39.2 set out in federal rules. 39.3 Subd. 8. [EARNED INCOME OF WAGE AND SALARY EMPLOYEES.] The 39.4 local agency must include gross earned income less any 39.5 disregards in the initial and monthly income test. Gross earned 39.6 income received by persons employed on a contractual basis must 39.7 be prorated over the period covered by the contract even when 39.8 payments are received over a lesser period of time. 39.9 Subd. 9. [SELF-EMPLOYMENT.] Self-employed individuals are 39.10 individuals who: 39.11 (1) work for themselves rather than an employer; 39.12 (2) do not have federal or state income taxes or FICA 39.13 withheld from payments made to them; 39.14 (3) are responsible for their own work schedule; and 39.15 (4) do not have coverage under employers' liability 39.16 insurance or workers' compensation. 39.17 Self-employed individuals may own a business singularly or 39.18 in partnership. Individuals operating more than one 39.19 self-employment business may use the loss from one business to 39.20 offset self-employment income from another business. A loss 39.21 from a self-employment business may not offset income earned 39.22 under subdivision 8. 39.23 Subd. 10. [SELF-EMPLOYMENT EARNINGS.] The local agency 39.24 must determine self-employment income according to the following: 39.25 (a) Subtract allowable business expenses from total gross 39.26 receipts. Allowable business expenses include: 39.27 (1) interest on mortgages and loans; 39.28 (2) employee wages, except for persons who are part of the 39.29 assistance unit or whose income is deemed to the participant; 39.30 (3) FICA funds paid on employees' wages, payment of 39.31 employee workers' compensation, and reemployment insurance; 39.32 (4) livestock and veterinary or breeding fees; 39.33 (5) raw material; 39.34 (6) seed and fertilizer; 39.35 (7) maintenance and repairs which are not capital 39.36 expenditures; 40.1 (8) tax return preparation fees; 40.2 (9) license fees, professional fees, franchise fees, and 40.3 professional dues; 40.4 (10) tools and supplies that are not capital expenditures; 40.5 (11) fuel and transportation expenses other than fuel costs 40.6 covered by the flat rate transportation rate deduction; 40.7 (12) advertising costs; 40.8 (13) meals eaten when required to be away from the local 40.9 work site; 40.10 (14) property expenses such as rent, insurance, taxes, and 40.11 utilities; 40.12 (15) postage; 40.13 (16) purchase cost of inventory at time of sale; 40.14 (17) loss from another self-employment business; 40.15 (18) attorney's fees allowed by the Internal Revenue 40.16 Service; and 40.17 (19) tuition for classes necessary to maintain or improve 40.18 job skills or required by law to maintain job status or salary 40.19 as allowed by the Internal Revenue Service. 40.20 (b) The local agency shall not allow a deduction for the 40.21 following expenses: 40.22 (1) purchases of capital assets; 40.23 (2) payments on the principals of loans for capital assets; 40.24 (3) depreciation; 40.25 (4) amortization; 40.26 (5) the wholesale costs of items purchased, processed, or 40.27 manufactured which are unsold inventory; 40.28 (6) transportation costs that exceed the maximum standard 40.29 mileage rate allowed for use of a personal car in the Internal 40.30 Revenue Code; 40.31 (7) costs, in any amount, for mileage between an 40.32 applicant's or participant's home and place of employment; 40.33 (8) salaries and other employment deductions made for 40.34 members of an assistance unit or persons who live in the 40.35 household for whom an employer is legally responsible; 40.36 (9) monthly expenses in excess of $71 for each roomer; 41.1 (10) monthly expenses in excess of the Thrifty Food Plan 41.2 amount for one person for each boarder. For purposes of this 41.3 clause and clause (11), "Thrifty Food Plan" has the meaning 41.4 given it in Code of Federal Regulations. 41.5 (11) monthly expenses in excess of the roomer rate plus the 41.6 Thrifty Food Plan amount for one person for each 41.7 roomer-boarder. If there is more than one boarder or 41.8 roomer-boarder, use the total number of boarders as the unit 41.9 size to determine the Thrifty Food Plan amount; 41.10 (12) an amount greater than actual expenses or two percent 41.11 of the estimated market value on a county tax assessment form, 41.12 whichever is greater, as a deduction for upkeep and repair 41.13 against rental income; 41.14 (13) expenses not allowed by the Internal Revenue Code; and 41.15 (14) expenses in excess of 60 percent of gross receipts for 41.16 in-home child care unless a higher amount can be documented. 41.17 Funds that are received from the Minnesota child care food 41.18 program as authorized under the National School Lunch Act, 41.19 United States Code, title 42, are excluded. 41.20 Subd. 11. [SELF-EMPLOYMENT BUDGET PERIOD.] The 41.21 self-employment budget period begins in the month of application 41.22 or in the first month of self-employment. Gross receipts must 41.23 be budgeted in the month received. Expenses must be budgeted 41.24 against gross receipts in the month the expenses are paid, 41.25 except for paragraphs (a) to (c). 41.26 (a) The purchase cost of inventory items, including 41.27 materials which are processed or manufactured, must be deducted 41.28 as an expense at the time payment is received for the sale of 41.29 the inventory items. 41.30 (b) A 12-month rolling average based on clauses (1) to (3) 41.31 must be used to budget monthly income. 41.32 (1) For a business in operation for at least 12 months, the 41.33 local agency shall use the average monthly self-employment 41.34 income from the most current income tax report for the 12 months 41.35 before the month of application. The local agency shall 41.36 determine a new monthly average by adding in the actual 42.1 self-employment income and expenses from the previous month and 42.2 dropping the first month from the averaging period. 42.3 (2) For a business in operation for less than 12 months, 42.4 the local agency shall compute the average for the number of 42.5 months the business has been in operation to determine a monthly 42.6 average. When data are available for 12 or more months, average 42.7 monthly self-employment income is determined under clause (1). 42.8 (3) If the business undergoes a major change, the local 42.9 agency shall compute a new rolling average beginning with the 42.10 first month of the major change. For the purpose of this 42.11 clause, "major change" means a change that affects the nature 42.12 and scale of the business and is not merely the result of normal 42.13 business fluctuations. 42.14 (c) For seasonal self-employment, the caregiver may choose 42.15 whether to use actual income in the month of receipt and 42.16 expenses in the month incurred or the rolling average method of 42.17 computation. The choice must be made once per year at the time 42.18 of application or recertification. For the purpose of this 42.19 paragraph, "seasonal" means working six or less months per year. 42.20 Subd. 12. [FARM INCOME.] Farm income is the difference 42.21 between gross receipts and operating expenses, subject to 42.22 subdivision 10, paragraph (b). Gross receipts include sales, 42.23 rents, subsidies, soil conservation payments, production derived 42.24 from livestock, and income from home-produced food. 42.25 Subd. 13. [RENTAL INCOME.] The local agency must treat 42.26 income from rental property as earned or unearned income. 42.27 Income from rental property is unearned income unless the 42.28 assistance unit spends an average of ten hours per week on 42.29 maintenance or management of the property. When the owner 42.30 spends more than ten hours per week on maintenance or repairs, 42.31 the earnings are considered self-employment earnings. An amount 42.32 must be deducted for upkeep and repairs for real estate taxes, 42.33 insurance, utilities, and interest on principal payments. When 42.34 the applicant or participant lives on the rental property, 42.35 expenses for upkeep, taxes, insurance, utilities, and interest 42.36 must be divided by the number of rooms to determine expense per 43.1 room and expenses deducted must be deducted only for the number 43.2 of rooms rented. 43.3 Subd. 14. [UNEARNED INCOME.] (a) The local agency must 43.4 apply unearned income, including housing subsidies as in 43.5 paragraph (b), to the transitional standard. When determining 43.6 the amount of unearned income, the local agency must deduct the 43.7 costs necessary to secure payments of unearned income. These 43.8 costs include legal fees, medical fees, and mandatory deductions 43.9 such as federal and state income taxes. 43.10 (b) The local agency shall count $100 of the value of 43.11 public and assisted housing subsidies provided by the Department 43.12 of Housing and Urban Development (HUD), or by state or local 43.13 housing authorities, as unearned income. The full amount of the 43.14 subsidy shall be counted as unearned income when the subsidy is 43.15 less than $100. 43.16 Subd. 15. [TREATMENT OF LUMP SUMS.] The local agency must 43.17 treat lump-sum payments as earned or unearned income. If the 43.18 lump-sum payment is included in the category of income 43.19 identified in subdivision 14, it must be treated as unearned 43.20 income. A lump sum is counted as income in the month received 43.21 and budgeted either prospectively or retrospectively depending 43.22 on the budget cycle at the time of receipt. When an individual 43.23 receives a lump-sum payment, that lump sum must be combined with 43.24 all other earned and unearned income received in the same budget 43.25 month, and it must be applied according to paragraphs (a) to (c). 43.26 There is no carryover into subsequent months. Any funds that 43.27 remain in the third month after the month of receipt are counted 43.28 in the asset limit. 43.29 (a) For a lump sum received by an applicant during the 43.30 first two months, prospective budgeting is used to determine the 43.31 payment and the lump sum must be combined with other earned or 43.32 unearned income received and budgeted in that prospective month. 43.33 (b) For a lump sum received by a participant after the 43.34 first two months of MFIP-S eligibility, the lump sum must be 43.35 combined with other income received in that budget month, and 43.36 the combined amount must be applied retrospectively against the 44.1 applicable payment month. 44.2 (c) When a lump sum, combined with other income according 44.3 to paragraphs (a) and (b), is less than the transitional 44.4 standard for the applicable payment month, the assistance 44.5 payment is reduced according to the amount of the countable 44.6 income. When the countable income is greater than the 44.7 transitional standard or the family wage standard, the 44.8 assistance payment is suspended for the payment month. 44.9 Sec. 15. [256J.15] [DOCUMENTING, VERIFYING, AND 44.10 RECERTIFYING ELIGIBILITY.] 44.11 Subdivision 1. [VERIFICATION OF INFORMATION.] A local 44.12 agency must only require verification of information necessary 44.13 to determine MFIP-S eligibility and the amount of the assistance 44.14 payment. 44.15 Subd. 2. [DOCUMENTATION.] The applicant or participant 44.16 must document the information in subdivision 4 or authorize the 44.17 local agency to verify it. The applicant or participant has the 44.18 burden of providing documentary evidence to verify eligibility. 44.19 The local agency shall assist the applicant or participant in 44.20 obtaining required documents when the applicant or participant 44.21 is unable to do so. When an applicant or participant and the 44.22 local agency are unable to obtain documents needed to verify 44.23 information, the local agency may accept an affidavit from an 44.24 applicant or participant as sufficient documentation. 44.25 Subd. 3. [CONTACTING THIRD PARTIES.] A local agency must 44.26 not request information about an applicant or participant which 44.27 is not of public record from a source other than local agencies, 44.28 the department, or the United States Department of Health and 44.29 Human Services without the person's prior written consent. An 44.30 applicant's signature on an application form shall constitute 44.31 this consent for contact with the sources specified on that 44.32 form. A local agency may use a single consent form to contact a 44.33 group of similar sources, such as banks or insurance agencies, 44.34 but the sources to be contacted must be identified by the local 44.35 agency prior to requesting an applicant's consent. 44.36 Subd. 4. [FACTORS TO BE VERIFIED.] The local agency shall 45.1 verify the following at application: 45.2 (1) identity of adults; 45.3 (2) presence of the minor child in the home, if 45.4 questionable; 45.5 (3) relationship of a minor child to caregivers in the 45.6 assistance unit; 45.7 (4) age, if necessary to determine MFIP-S eligibility; 45.8 (5) immigration status; 45.9 (6) social security number; 45.10 (7) income; 45.11 (8) self-employment expenses used as a deduction; 45.12 (9) source and purpose of deposits and withdrawals from 45.13 business accounts; 45.14 (10) spousal support and child support payments to persons 45.15 outside the household; 45.16 (11) real property; 45.17 (12) vehicles; 45.18 (13) checking and savings accounts; 45.19 (14) savings certificates, savings bonds, stocks, and 45.20 individual retirement accounts; 45.21 (15) cash surrender value of life insurance; 45.22 (16) inconsistent information, if related to eligibility; 45.23 (17) medical insurance; 45.24 (18) anticipated graduation date of an 18-year-old; 45.25 (19) burial accounts; 45.26 (20) school attendance, if related to eligibility; and 45.27 (21) residence. 45.28 Subd. 5. [RECERTIFICATION.] The local agency shall 45.29 recertify eligibility in an annual face-to-face interview with 45.30 the participant and verify the following: 45.31 (1) presence of the minor child in the home, if 45.32 questionable; 45.33 (2) income, including self-employment expenses used as a 45.34 deduction or deposits or withdrawals from business accounts; 45.35 (3) checking and savings accounts; 45.36 (4) other property when the value is within $200 of the 46.1 asset limit; and 46.2 (5) inconsistent information, if related to eligibility. 46.3 Sec. 16. [256J.16] [FAMILY COMPOSITION AND ASSISTANCE 46.4 STANDARDS.] 46.5 Subdivision 1. [MFIP-S ASSISTANCE UNIT.] An MFIP-S 46.6 assistance unit is either a group of individuals with at least 46.7 one minor child who live together whose needs, assets, and 46.8 income are considered together and who receive assistance from 46.9 MFIP-S, or a pregnant woman who receives assistance from 46.10 MFIP-S. Individuals identified in subdivision 2 must be 46.11 included in the MFIP-S assistance unit. Individuals identified 46.12 in subdivision 3 must be excluded from the assistance unit. 46.13 Individuals identified in subdivision 4 may be included in the 46.14 assistance unit at their option. Individuals not included in 46.15 the assistance unit who are identified in subdivision 3, clauses 46.16 (2) to (4), must have their income considered when determining 46.17 eligibility and benefits for an MFIP-S assistance unit. All 46.18 assistance unit members, whether mandatory or elective, who live 46.19 together and for whom one caregiver or two caregivers apply must 46.20 be included in a single assistance unit. 46.21 Subd. 2. [MANDATORY ASSISTANCE UNIT COMPOSITION.] When the 46.22 following individuals live together, they must be included in 46.23 the assistance unit: 46.24 (1) a minor child; 46.25 (2) the minor child's siblings, half-siblings, and 46.26 step-siblings; and 46.27 (3) the minor child's natural, adoptive parents, and 46.28 stepparents. 46.29 Subd. 3. [INDIVIDUALS WHO MUST BE EXCLUDED FROM AN 46.30 ASSISTANCE UNIT.] The following individuals must be excluded 46.31 from an assistance unit: 46.32 (1) individuals receiving SSI or MSA; 46.33 (2) individuals living at home while performing 46.34 court-imposed, unpaid community service work due to a criminal 46.35 conviction; 46.36 (3) individuals disqualified from the food stamp program or 47.1 AFDC due to noncompliance with quality control requirements or 47.2 who are under a fraud disqualification until the period of 47.3 disqualification ends; and 47.4 (4) individuals disqualified from MFIP-S, until the 47.5 disqualification ends. 47.6 Subd. 4. [INDIVIDUALS WHO MAY ELECT TO BE INCLUDED IN THE 47.7 ASSISTANCE UNIT.] The minor child's eligible relative caregiver 47.8 may choose to be in the assistance unit. If the relative 47.9 caregiver chooses to be in the assistance unit, that person's 47.10 spouse must also be in the unit. 47.11 Subd. 5. [MFIP-S TRANSITIONAL STANDARD.] The following 47.12 table represents the MFIP-S transitional standard table. 47.13 Number of 47.14 Eligible People Standard 47.15 1 $ 344 47.16 2 $ 596 47.17 3 $ 747 47.18 4 $ 884 47.19 5 $1003 47.20 6 $1140 47.21 7 $1246 47.22 8 $1373 47.23 9 $1498 47.24 10 $1618 47.25 over 10 add $118 per additional member 47.26 Subd. 6. [APPLICATION OF ASSISTANCE STANDARDS.] The 47.27 standards apply to the number of eligible persons in the 47.28 assistance unit. 47.29 Subd. 7. [FAMILY WAGE LEVEL STANDARD.] The family wage 47.30 level standard is 110 percent of the transitional standard under 47.31 subdivision 5 and is the standard used when there is earned 47.32 income in the assistance unit. Earned income is subtracted from 47.33 the family wage level as specified in section 256J.15 to 47.34 determine the amount of the assistance payment. Assistance 47.35 payments may not exceed the transitional standard for the 47.36 assistance unit. 48.1 Subd. 8. [PUBLICATION OF TRANSITIONAL STANDARD.] The 48.2 department of human services shall annually publish in the State 48.3 Register the transitional standard for an assistance unit size 1 48.4 to 10. 48.5 Sec. 17. [256J.17] [DETERMINATION OF MFIP-S ELIGIBILITY 48.6 AND ASSISTANCE PAYMENT.] 48.7 A local agency must determine MFIP-S eligibility 48.8 prospectively for a payment month based on retrospectively 48.9 assessing income and the local agency's best estimate of the 48.10 circumstances that will exist in the payment month. 48.11 Except as described in section 256J.19, subdivision 1, when 48.12 prospective eligibility exists, a local agency must calculate 48.13 the amount of the assistance payment using retrospective 48.14 budgeting. To determine MFIP-S eligibility and the assistance 48.15 payment amount, a local agency must apply countable income, 48.16 described in section 256J.14, subdivisions 8 to 15, received by 48.17 members of an assistance unit by other persons whose income is 48.18 counted for the assistance unit, described under section 48.19 256J.14, subdivision 5. 48.20 This income must be applied to the transitional standard or 48.21 family wage standard subject to sections 256J.18 to 256J.22. 48.22 Income received in a calendar month and not otherwise excluded 48.23 under section 256J.14, subdivision 2, must be applied to the 48.24 needs of an assistance unit. 48.25 Sec. 18. [256J.18] [MFIP-S ELIGIBILITY TESTS.] 48.26 Subdivision 1. [PROSPECTIVE ELIGIBILITY.] A local agency 48.27 must determine whether the eligibility requirements that pertain 48.28 to an assistance unit, including those in sections 256J.11 and 48.29 256J.13, will be met prospectively for the payment month. 48.30 Except for the provisions in section 256J.19, subdivision 1, the 48.31 income test will be applied retrospectively. 48.32 Subd. 2. [RETROSPECTIVE ELIGIBILITY.] After the first two 48.33 months of MFIP-S eligibility, a local agency must continue to 48.34 determine whether an assistance unit is prospectively eligible 48.35 for the payment month by looking at all factors other than 48.36 income and then determine whether the assistance unit is 49.1 retrospectively income eligible by applying the monthly income 49.2 test to the income from the budget month. When the monthly 49.3 income test is not satisfied, the assistance payment must be 49.4 suspended when ineligibility exists for one month or ended when 49.5 ineligibility exists for more than one month. 49.6 Subd. 3. [MONTHLY INCOME TEST.] A local agency must apply 49.7 the monthly income test retrospectively for each month of MFIP-S 49.8 eligibility. An assistance unit is not eligible when the 49.9 countable income equals or exceeds the transitional standard or 49.10 the family wage level for the assistance unit. The income 49.11 applied against the monthly income test must include: 49.12 (1) gross earned income from employment, prior to mandatory 49.13 payroll deductions, voluntary payroll deductions, wage 49.14 authorizations, and after the disregards in section 256J.21 and 49.15 the allocations in section 256J.20, unless the employment income 49.16 is specifically excluded under section 256J.14, subdivision 2; 49.17 (2) gross earned income from self-employment less 49.18 deductions for self-employment expenses in section 256J.14, 49.19 subdivision 10, but prior to any reductions for personal or 49.20 business state and federal income taxes, personal FICA, personal 49.21 health and life insurance, and after the disregards in section 49.22 256J.21, and the allocations in section 256J.20; 49.23 (3) unearned income after deductions for allowable expenses 49.24 in section 256J.14, and allocations in section 256J.20, unless 49.25 the income has been specifically excluded in section 256J.14, 49.26 subdivision 2; 49.27 (4) gross earned income from employment as determined under 49.28 clause (1) which is received by a member of an assistance unit 49.29 who is a minor child and less than a half-time student; 49.30 (5) child support and spousal support received or 49.31 anticipated to be received by an assistance unit; 49.32 (6) the income of a parent even when that parent has opted 49.33 not to be included in the assistance unit; 49.34 (7) the income of an eligible relative who seeks to be 49.35 included in the assistance unit; and 49.36 (8) the unearned income of a minor child included in the 50.1 assistance unit. 50.2 Subd. 4. [WHEN TO TERMINATE.] When an assistance unit is 50.3 ineligible for MFIP-S assistance for two consecutive months, the 50.4 local agency must terminate MFIP-S assistance. 50.5 Sec. 19. [256J.19] [CALCULATING PAYMENTS.] 50.6 Subdivision 1. [PROSPECTIVE BUDGETING.] A local agency 50.7 must use prospective budgeting to calculate the assistance 50.8 payment amount for the first two months for an applicant who has 50.9 not received assistance in Minnesota for at least one payment 50.10 month preceding the first month of payment under a current 50.11 application. Prospective budgeting is not subject to 50.12 overpayments or underpayments. 50.13 (a) The local agency must apply the income received or 50.14 anticipated in the first month of MFIP-S eligibility against the 50.15 need of the first month. The local agency must apply the income 50.16 received or anticipated in the second month against the need of 50.17 the second month. 50.18 (b) When the assistance payment for any part of the first 50.19 two months is based on anticipated income, the local agency must 50.20 base the initial assistance payment amount on the information 50.21 available at the time the initial assistance payment is made. 50.22 (c) The local agency must determine the assistance payment 50.23 amount for the first two months of MFIP-S eligibility by 50.24 budgeting both recurring and nonrecurring income for those two 50.25 months. 50.26 (d) The local agency must budget the child support income 50.27 received or anticipated to be received by an assistance unit to 50.28 determine the assistance payment amount from the month of 50.29 application through the date in which MFIP-S eligibility is 50.30 determined and assistance is authorized. Child support income 50.31 which has been budgeted to determine the assistance payment in 50.32 the initial two months is considered nonrecurring income. An 50.33 assistance unit must forward any payment of child support to the 50.34 child support enforcement unit of the local agency following the 50.35 date in which assistance is authorized. 50.36 Subd. 2. [RETROSPECTIVE BUDGETING.] The local agency must 51.1 use retrospective budgeting to calculate the monthly assistance 51.2 payment amount after the payment for the first two months has 51.3 been made under subdivision 1. 51.4 Subd. 3. [ADDITIONAL USES OF RETROSPECTIVE 51.5 BUDGETING.] Notwithstanding subdivision 1, the local agency must 51.6 use retrospective budgeting to calculate the monthly assistance 51.7 payment amount for the first two months under paragraphs (a) and 51.8 (b). 51.9 (a) The local agency must use retrospective budgeting to 51.10 determine the amount of the assistance payment in the first two 51.11 months of MFIP-S eligibility: 51.12 (1) when an assistance unit applies for assistance for the 51.13 same month for which assistance has been interrupted, the 51.14 interruption in eligibility is less than one payment month, the 51.15 assistance payment for the preceding month was issued in 51.16 Minnesota, and the assistance payment for the immediately 51.17 preceding month was determined retrospectively; or 51.18 (2) when a person applies to be added to an assistance 51.19 unit, that assistance unit has received assistance in Minnesota 51.20 for at least the two preceding months, and that person has been 51.21 living with and has been financially responsible for one or more 51.22 members of that assistance unit for at least the two preceding 51.23 months. 51.24 (b) Except as provided in clauses (1) to (4), the local 51.25 agency must use retrospective budgeting and apply income 51.26 received in the budget month by an assistance unit and by a 51.27 financially responsible household member who is not included in 51.28 the assistance unit against the appropriate transitional or 51.29 family wage level standard to determine the assistance payment 51.30 to be issued for the payment month. 51.31 (1) When a source of income ends prior to the third payment 51.32 month, that income is not considered in calculating the 51.33 assistance payment for that month. When a source of income ends 51.34 prior to the fourth payment month, that income is not considered 51.35 when determining the assistance payment for that month. 51.36 (2) When a member of an assistance unit or a financially 52.1 responsible household member leaves the household of the 52.2 assistance unit, the income of that departed household member is 52.3 not budgeted retrospectively for any full payment month in which 52.4 that household member does not live with that household and is 52.5 not included in the assistance unit. 52.6 (3) When an individual is removed from an assistance unit 52.7 because the individual is no longer a minor child, the income of 52.8 that individual is not budgeted retrospectively for payment 52.9 months in which that individual is not a member of the 52.10 assistance unit, except that income of an ineligible child in 52.11 the household must continue to be budgeted retrospectively 52.12 against the child's needs when the parent or parents of that 52.13 child request allocation of their income against any unmet needs 52.14 of that ineligible child. 52.15 (4) When a person ceases to have financial responsibility 52.16 for one or more members of an assistance unit, the income of 52.17 that person is not budgeted retrospectively for the payment 52.18 months which follow the month in which financial responsibility 52.19 ends. 52.20 Subd. 4. [SIGNIFICANT CHANGE IN GROSS INCOME.] The local 52.21 agency must recalculate the assistance payment when an 52.22 assistance unit experiences a significant change resulting in a 52.23 reduction in the gross income received in the payment month from 52.24 the gross income received in the budget month. The local agency 52.25 must issue a supplemental assistance payment based on the local 52.26 agency's best estimate of the assistance unit's income and 52.27 circumstances for the payment month. Budget adjustments that 52.28 result from significant changes are limited to two times per 52.29 year regardless of the reason for the change. Budget 52.30 adjustments due to a significant change in the amount of direct 52.31 support received must not be made after the date the assistance 52.32 unit is required to forward support to the child support 52.33 enforcement unit under subdivision 1, paragraph (d). 52.34 Subd. 5. [INCOME AVERAGING FOR PARTICIPANTS PAID WEEKLY OR 52.35 BIWEEKLY.] For the purposes of stabilizing assistance payments, 52.36 the local agency may average income for participants paid weekly 53.1 or biweekly. Monthly income may be computed by adding income 53.2 from all paychecks, dividing the sum by the number of paychecks, 53.3 and multiplying the results by 4.3 if paychecks are weekly or 53.4 2.16 if paychecks are biweekly. The local agency may not use 53.5 income averaging unless discussed with the participant and 53.6 requested by the participant. 53.7 Sec. 20. [256J.20] [ALLOCATION FOR UNMET NEED OF OTHER 53.8 HOUSEHOLD MEMBERS.] 53.9 Except as prohibited in paragraphs (a) and (b), an 53.10 allocation of income is allowed to meet the unmet need of an 53.11 ineligible spouse or an ineligible child under the age of 21 for 53.12 whom the caregiver is financially responsible who also lives 53.13 with the caregiver. An allocation is allowed from the 53.14 caregiver's income to meet the need of an ineligible or excluded 53.15 person. That allocation is allowed in an amount up to the 53.16 difference between the MFIP-S family allowance for the 53.17 assistance unit when that excluded or ineligible person is 53.18 included in the assistance unit and the MFIP-S family allowance 53.19 for the assistance unit when the excluded or ineligible person 53.20 is not included in the assistance unit. These allocations must 53.21 be deducted from the caregiver's counted earnings and from 53.22 unearned income subject to paragraphs (a) and (b). 53.23 (a) Income of a minor child in the assistance unit must not 53.24 be allocated to meet the need of a person who is not a member of 53.25 the assistance unit, including the child's parent, even when 53.26 that parent is the payee of the child's income. 53.27 (b) Income of an assistance unit must not be allocated to 53.28 meet the needs of a person ineligible for failure to cooperate 53.29 with program requirements including child support requirements, 53.30 a person ineligible due to fraud, or a person who opts out of 53.31 the assistance unit. 53.32 Sec. 21. [256J.21] [EMPLOYMENT DISREGARDS.] 53.33 To determine MFIP-S eligibility, the local agency shall 53.34 apply the following employment disregards. 53.35 (a) When determining initial eligibility, the employment 53.36 disregard is 18 percent of the gross earned income whether or 54.1 not the member is working full time or part time. 54.2 (b) When determining initial eligibility, dependent care 54.3 costs must be deducted from gross earned income for the actual 54.4 amount paid for dependent care or up to the maximum disregard 54.5 allowed under chapter 119B. 54.6 (c) When determining ongoing eligibility and payment 54.7 amount, the employment disregard is 38 percent of the gross 54.8 earned income. The employment disregard in this paragraph is 54.9 applied every month there is earned income. 54.10 Sec. 22. [256J.22] [AMOUNT OF ASSISTANCE PAYMENT.] 54.11 Except as provided in paragraphs (a) to (c), the amount of 54.12 an assistance payment is equal to the difference between the 54.13 transitional standard or the family wage level in section 54.14 256J.16, subdivision 5, and countable income. 54.15 (a) When MFIP-S eligibility exists for the month of 54.16 application, the amount of the assistance payment for the month 54.17 of application must be prorated from the date of application or 54.18 the date all other eligibility factors are met for that 54.19 applicant, whichever is later. This provision applies when an 54.20 applicant loses at least one day of MFIP-S eligibility. 54.21 (b) MFIP-S overpayments to an assistance unit must be 54.22 recouped according to section 256J.23, subdivision 4. 54.23 (c) An initial assistance payment must not be made to an 54.24 applicant who is not eligible on the date payment is made. 54.25 Sec. 23. [256J.23] [CORRECTION OF OVERPAYMENTS AND 54.26 UNDERPAYMENTS.] 54.27 Subdivision 1. [SCOPE OF OVERPAYMENT.] When a participant 54.28 or former participant receives an overpayment due to agency, 54.29 client, ATM error, or due to assistance received while an appeal 54.30 is pending and the participant or former participant is 54.31 determined ineligible for assistance or for less assistance than 54.32 was received, the local agency must recoup or recover the 54.33 overpayment under the conditions of this section. 54.34 Subd. 2. [NOTICE OF OVERPAYMENT.] When a local agency 54.35 discovers that a participant or former participant has received 54.36 an overpayment for one or more months, the local agency must 55.1 notify the participant or former participant of the overpayment 55.2 in writing. A notice of overpayment must specify the reason for 55.3 the overpayment, the authority for citing the overpayment, the 55.4 time period in which the overpayment occurred, the amount of the 55.5 overpayment, and the participant's or former participant's right 55.6 to appeal. No limit applies to the period in which the local 55.7 agency is required to recoup or recover an overpayment according 55.8 to subdivisions 3 and 4. 55.9 Subd. 3. [RECOVERING OVERPAYMENTS FROM FORMER RECIPIENTS.] 55.10 A local agency must initiate efforts to recover overpayments 55.11 paid to a former participant. Adults and minor caregivers of an 55.12 assistance unit at the time an overpayment occurs, whether 55.13 receiving assistance or not, are jointly and individually liable 55.14 for repayment of the overpayment. The local agency must request 55.15 repayment from the former recipients. When an agreement for 55.16 repayment is not completed within six months of the date of 55.17 discovery or when there is a default on an agreement for 55.18 repayment after six months, the local agency must initiate 55.19 recovery consistent with chapter 270A, or section 541.05. When 55.20 a person has been convicted of fraud under section 256.98, 55.21 recovery must be sought regardless of the amount of 55.22 overpayment. When an overpayment is less than $35, and is not 55.23 the result of a fraud conviction under section 256.98, the local 55.24 agency must not seek recovery under this subdivision. The local 55.25 agency must retain information about all overpayments regardless 55.26 of the amount. When an adult or minor caregiver reapplies for 55.27 assistance, the overpayment must be recouped under subdivision 4. 55.28 Subd. 4. [RECOUPING OVERPAYMENTS FROM PARTICIPANTS.] A 55.29 participant may voluntarily repay, in part or in full, an 55.30 overpayment even if assistance is reduced under this 55.31 subdivision, until the total amount of the overpayment is 55.32 repaid. When an overpayment occurs due to fraud, the local 55.33 agency must recover ten percent of the transitional standard or 55.34 the amount of the monthly assistance payment, whichever is 55.35 less. When a nonfraud overpayment occurs, the local agency must 55.36 recover ten percent of the transitional standard or the amount 56.1 of the monthly assistance payment, whichever is less. 56.2 Subd. 5. [RECOVERING AUTOMATIC TELLER MACHINE ERRORS.] For 56.3 recipients receiving benefits via electronic benefit transfer, 56.4 if the overpayment is a result of an ATM dispensing funds in 56.5 error to the recipient, the agency may recover the ATM error by 56.6 immediately withdrawing funds from the recipient's electronic 56.7 benefit transfer account, up to the amount of the error. 56.8 Subd. 6. [SCOPE OF UNDERPAYMENTS.] A local agency must 56.9 issue a corrective payment for underpayments made to a 56.10 participant or to a person who would be a participant if an 56.11 agency or client error causing the underpayment had not occurred. 56.12 The local agency must issue the corrective payment according to 56.13 subdivision 8. 56.14 Subd. 7. [IDENTIFYING THE UNDERPAYMENT.] An underpayment 56.15 may be identified by a local agency, by a participant, by a 56.16 former participant, or by a person who would be a participant 56.17 except for agency or client error. 56.18 Subd. 8. [ISSUING CORRECTIVE PAYMENTS.] A local agency 56.19 must correct an underpayment within seven calendar days after 56.20 the underpayment has been identified, by adding the corrective 56.21 payment amount to the monthly assistance payment of the 56.22 participant or by issuing a separate payment to a participant or 56.23 former participant, or by reducing an existing overpayment 56.24 balance. When an underpayment occurs in a payment month and is 56.25 not identified until the next payment month or later, the local 56.26 agency must first subtract the underpayment from any overpayment 56.27 balance before issuing the corrective payment. The local agency 56.28 must not apply an underpayment in a current payment month 56.29 against an overpayment balance. When an underpayment in the 56.30 current payment month is identified, the corrective payment must 56.31 be issued within seven calendar days after the underpayment is 56.32 identified. 56.33 Subd. 9. [APPEALS.] A participant may appeal an 56.34 underpayment, an overpayment, and a reduction in an assistance 56.35 payment made to recoup the overpayment under subdivision 4. The 56.36 participant's appeal of each issue must be timely under section 57.1 256.045. When an appeal based on the notice issued under 57.2 subdivision 2 is not timely, the fact or the amount of that 57.3 overpayment must not be considered as a part of a later appeal, 57.4 including an appeal of a reduction in an assistance payment to 57.5 recoup that overpayment. 57.6 Sec. 24. [256J.24] [PAYMENT PROVISIONS.] 57.7 Subdivision 1. [PAYMENT POLICY.] The following policies 57.8 apply to monthly assistance payments and corrective payments: 57.9 (a) Grant payments may be issued in the form of warrants 57.10 immediately redeemable in cash, electronic benefits, or by 57.11 direct deposit into the recipient's account in a financial 57.12 institution. 57.13 (b) The department shall mail assistance payment checks to 57.14 the address where a caretaker lives unless the local agency 57.15 approves an alternate arrangement. 57.16 (c) The department shall mail monthly assistance payment 57.17 checks within time to allow postal service delivery to occur no 57.18 later than the first day of each month. Monthly assistance 57.19 payment checks must be dated the first day of the month. 57.20 (d) The department shall issue replacement checks promptly, 57.21 but no later than seven calendar days after the provisions of 57.22 sections 16A.46; 256.01, subdivision 11; and 471.415 have been 57.23 met. 57.24 (e) When a payment is made by means other than by check, 57.25 the time limits in paragraphs (c) and (d) apply. 57.26 (f) When the department issues payments in the form of food 57.27 coupons, the payments will be issued on a staggered basis 57.28 through the first ten mailing days of the month. Sundays and 57.29 federal holidays are not mailing days. 57.30 Subd. 2. [PROTECTIVE AND VENDOR PAYMENTS.] Alternatives to 57.31 paying assistance directly to a participant may be used when a: 57.32 (1) local agency determines that a vendor payment is the 57.33 most effective way to resolve an emergency situation pertaining 57.34 to basic needs; 57.35 (2) caregiver makes a written request to the local agency 57.36 asking that part or all of the assistance payment be issued by 58.1 protective or vendor payments for shelter and utility service 58.2 only. The caregiver may withdraw this request in writing at any 58.3 time; or 58.4 (3) caregiver has exhibited a continuing pattern of 58.5 mismanaging funds as determined by the county agency. 58.6 The director of a local agency must approve a proposal for 58.7 protective or vendor payment for money mismanagement. During 58.8 the time a protective or vendor payment is being made, the local 58.9 agency must provide services designed to alleviate the causes of 58.10 the mismanagement. 58.11 The continuing need for and method of payment must be 58.12 documented and reviewed every 12 months. The director of a 58.13 local agency must approve the continuation of protective or 58.14 vendor payments. 58.15 When it appears that the need for protective or vendor 58.16 payments will continue or is likely to continue beyond two years 58.17 because the local agency's efforts have not resulted in 58.18 sufficiently improved use of assistance on behalf of the minor 58.19 child, judicial appointment of a legal guardian or other legal 58.20 representative must be sought by the local agency. 58.21 Subd. 3. [CHOOSING PAYEES FOR PROTECTIVE OR VENDOR 58.22 PAYMENTS.] A local agency shall consult with a caregiver 58.23 regarding the selection of the form of payment, the selection of 58.24 a protective payee, and the distribution of the assistance 58.25 payment to meet the various costs incurred by the assistance 58.26 unit. When choosing a protective payee, the local agency shall 58.27 notify the caregiver of a consultation date. If the caregiver 58.28 fails to respond to the local agency's request for consultation 58.29 by the effective date on the notice, the local agency must 58.30 choose a protective payee for that payment month and subsequent 58.31 payment months until the caregiver responds to the agency's 58.32 request for consultation. The local agency must notify the 58.33 caregiver of the right to appeal the determination that a 58.34 protective or vendor payment should be made or continued and to 58.35 appeal the selection of the payee. If a local agency is not 58.36 able to find another protective payee, a local agency staff 59.1 member may serve as a protective payee. The following persons 59.2 may not serve as protective payees: a member of the county 59.3 board of commissioners; the local agency staff member 59.4 determining financial eligibility for the family; special 59.5 investigative or resource staff; the staff member handling 59.6 accounting or fiscal processes related to the participant; or a 59.7 landlord, grocer, or other vendor dealing directly with the 59.8 participant. 59.9 Subd. 4. [DISCONTINUING PROTECTIVE OR VENDOR PAYMENTS.] A 59.10 local agency shall discontinue protective or vendor payments in 59.11 two years or in the month following the local agency's failure 59.12 to grant six-month approval to a money management plan, 59.13 whichever occurs first. At least once every 12 months, a local 59.14 agency shall review the performance of a protective payee acting 59.15 under subdivision 2, clause (3), to determine whether a new 59.16 payee should be selected. When a participant complains about 59.17 the performance of a protective payee, a review shall occur 59.18 within 30 calendar days. 59.19 Subd. 5. [VENDOR PAYMENTS FOR DRUG OFFENSES.] (a) If an 59.20 applicant has been convicted of a drug offense while receiving 59.21 assistance or within five years of the date of application for 59.22 assistance, the assistance must be issued through vendor 59.23 payments as provided in paragraph (c) until the applicant has 59.24 completed terms of the court-ordered sentence. This subdivision 59.25 also applies to persons who receive food stamps under section 59.26 115 of the Personal Responsibility and Work Opportunity 59.27 Reconciliation Act of 1996. 59.28 (b) For the purposes of this subdivision, "drug offense" 59.29 means a conviction that occurred after August 22, 1996, of 59.30 sections 152.021 to 152.025, 152.0261, or 256.096. Drug offense 59.31 also means a conviction in another jurisdiction of the 59.32 possession, use, or distribution of a controlled substance, or 59.33 conspiracy to commit any of these offenses, if the offense 59.34 occurred after August 22, 1996, and the conviction is a felony 59.35 offense in that jurisdiction. 59.36 (c) The county agency shall consult with the caregiver 60.1 regarding the identity of vendors for shelter and utility 60.2 payments under this subdivision. Any balance of the MFIP-S 60.3 grant remaining after issuing vendor payments for shelter and 60.4 utility needs shall be issued to the caregiver. If the 60.5 caregiver exhibits a pattern of mismanaging funds, the balance 60.6 of the MFIP-S grant may be issued under the policy prescribed in 60.7 subdivisions 2, clause (3); and 4. 60.8 Subd. 6. [INTERSTATE PAYMENT STANDARDS.] (a) Effective 60.9 July 1, 1997, the amount of assistance paid to an eligible 60.10 family in which all members have resided in Minnesota for less 60.11 than 12 calendar months shall be the lesser of either the 60.12 payment standard that would have been received by the family 60.13 from the state of immediate prior residence, or the amount 60.14 calculated in accordance with MFIP-S. The lesser payment shall 60.15 continue until the family meets the 12-month requirement. 60.16 Payment shall be calculated by applying Minnesota's budgeting 60.17 policies and the unit's net income shall be deducted from the 60.18 payment standard in the other state or in Minnesota, whichever 60.19 is lower. 60.20 (b) During the first 12 months a family resides in 60.21 Minnesota, the number of months that a family is eligible to 60.22 receive TANF assistance is limited to the number of months the 60.23 family would have been eligible to receive TANF benefits in the 60.24 state of immediate prior residence. 60.25 (c) This policy applies whether or not the family received 60.26 TANF assistance while residing in the state of previous 60.27 residence. 60.28 (d) When a family moves to Minnesota from another state 60.29 where the family has exhausted that state's time limit for 60.30 receiving TANF benefits, the family will not be eligible to 60.31 receive any MFIP-S benefits in Minnesota for 12 months from the 60.32 date the family moves here. 60.33 (e) For the purposes of this subdivision, "state of 60.34 immediate prior residence" means: 60.35 (i) the state in which the applicant declares the applicant 60.36 spent the most time in the 30 days prior to moving to Minnesota; 61.1 or 61.2 (ii) the applicant is in the migrant work stream and the 61.3 applicant maintains a home in another state. 61.4 (f) This policy also applies to families who did not 61.5 receive assistance while residing in a state of previous 61.6 residence. 61.7 Sec. 25. [256J.25] [SPECIAL POLICIES.] 61.8 Subdivision 1. [MEDICAL ASSISTANCE.] Medical coverage is 61.9 available as described in chapter 256B. 61.10 Subd. 2. [FOOD STAMPS FOR HOUSEHOLD MEMBERS NOT IN THE 61.11 ASSISTANCE UNIT.] For household members who purchase and prepare 61.12 food with the MFIP-S assistance unit but are not part of the 61.13 assistance unit, the local agency must determine a separate food 61.14 stamp benefit based on regulations agreed upon with the 61.15 department of agriculture. 61.16 This subdivision does not apply to optional members who 61.17 have chosen not to be in the assistance unit. 61.18 Fair hearing requirements for persons who receive food 61.19 stamps under this subdivision are governed by section 256.045, 61.20 and Code of Federal Regulations, title 7, subtitle B, chapter 61.21 II, part 273, section 273.15. 61.22 Subd. 3. [INCOME DISREGARD FOR CERTAIN PROGRAMS, FOOD 61.23 ASSISTANCE PORTION OF ASSISTANCE PAYMENT.] The portion of the 61.24 MFIP-S assistance payment that is designated by the commissioner 61.25 as the food assistance portion of the assistance payment must be 61.26 disregarded as income in the following programs: 61.27 (1) housing subsidy programs; 61.28 (2) low-income home energy assistance program; 61.29 (3) SSI, when determining interim assistance amount; and 61.30 (4) other programs that do not count food stamps as income. 61.31 For the purposes of this subdivision, the food assistance 61.32 portion of the assistance payment means a predetermined portion 61.33 of the MFIP-S assistance payment that may be received in 61.34 point-of-purchase sites or as food stamps. The predetermined 61.35 portion of the assistance payment will vary by family profile, 61.36 which is based on family size. 62.1 Subd. 4. [RETENTION OF CASE RECORDS.] The local agency 62.2 must retain financial case records and employment and training 62.3 services records for MFIP-S cases for six years. Information in 62.4 the case records must be maintained according to chapter 13. 62.5 Sec. 26. [256J.26] [MFIP-S ORIENTATION TO FINANCIAL 62.6 SERVICES.] 62.7 Subdivision 1. [LOCAL AGENCY TO PROVIDE 62.8 ORIENTATION.] Local agencies in MFIP-S counties must provide 62.9 MFIP-S orientation to financial assistance and the caregiver 62.10 must be given an opportunity for face-to-face interaction with 62.11 staff of the local agency or the entity providing the 62.12 orientation. The local agency may not require caregivers to 62.13 attend an MFIP-S orientation. If a caregiver does not attend an 62.14 orientation, the local agency must provide written information 62.15 to the caregiver about MFIP-S. 62.16 Subd. 2. [GENERAL INFORMATION.] The MFIP-S orientation 62.17 must consist of a presentation that informs caregivers of: 62.18 (1) work incentives under MFIP-S; 62.19 (2) the types and locations of child care services 62.20 available through the local agency that are accessible to enable 62.21 a caregiver to participate in employment, preemployment, and 62.22 training or educational programs; 62.23 (3) the child care resource and referral program designated 62.24 by the commissioner to provide education and assistance to 62.25 select child care services and a referral to the child care 62.26 resource and referral when assistance is requested; 62.27 (4) the rights, responsibilities, and obligations of 62.28 participants; 62.29 (5) the consequences for failure to meet requirements; 62.30 (6) the expectation that the caregiver will independently 62.31 seek self-support and explain the obligation, based on time on 62.32 assistance, to develop an employment plan under section 256J.27; 62.33 (7) the method of entering educational programs or 62.34 employment and training services available through the county; 62.35 (8) the availability and the benefits of the early 62.36 childhood health and developmental screening under sections 63.1 123.701 to 123.74; 63.2 (9) the caregiver's eligibility for transition year child 63.3 care assistance when the caregiver loses eligibility for MFIP-S 63.4 due to increased earnings; and 63.5 (10) the caregiver's eligibility for extended medical 63.6 assistance when the caregiver loses eligibility for MFIP-S due 63.7 to increased earnings or increased child or spousal support. 63.8 Subd. 3. [SUPPORT SERVICES TO ATTEND ORIENTATION.] Upon a 63.9 caregiver's request, the local agency must arrange for 63.10 transportation and child care or reimburse caregivers for 63.11 transportation and child care expenses necessary to enable 63.12 caregivers to attend orientation scheduled on a day other than 63.13 when the caregiver makes application for assistance. 63.14 Sec. 27. [256J.27] [EMPLOYMENT AND TRAINING SERVICES.] 63.15 Subdivision 1. [EMPLOYMENT AND TRAINING DEFINITIONS.] (a) 63.16 "Assessment" means an evaluation of a caregiver's work history, 63.17 skills and abilities, interests, education, child care needs, 63.18 supportive service needs, and family circumstances. 63.19 (b) "Employment and training services" means programs, 63.20 activities, and services designed to assist a caregiver in 63.21 obtaining and retaining employment. 63.22 (c) "Employment and training service provider" means a 63.23 public, private, or nonprofit agency certified by the 63.24 commissioner of economic security to deliver employment and 63.25 training services under sections 268.0122, subdivision 3, and 63.26 268.871, subdivision 1. 63.27 (d) "Employment plan" means a plan developed by the job 63.28 counselor in conjunction with the caregiver, which identifies 63.29 the most direct path to employment for the caregiver and the 63.30 specific steps that the caregiver will take on that path. 63.31 (e) "Job counselor" means a staff person employed by the 63.32 county agency's employment and training services provider who 63.33 delivers services as specified in subdivision 2. 63.34 (f) "Federal participation standards" means the work 63.35 participation standards as specified in title 1 of Public Law 63.36 Number 104-193 of the Personal Responsibility and Work 64.1 Opportunity Act of 1996. For purposes of MFIP-S, any approved 64.2 activity included in the caregiver's employment plan, meets the 64.3 definition of work activity as counted under the federal 64.4 participation standards. 64.5 (g) "Participant" means an MFIP-S caregiver that is 64.6 enrolled in MFIP-S employment and training services. 64.7 (h) "Suitable employment" means employment which: 64.8 (1) is within the recipient's physical and mental capacity; 64.9 (2) meets health and safety standards established by the 64.10 Occupational Safety and Health Administration and the Department 64.11 of Labor and Industry; 64.12 (3) pays hourly gross earnings which are not less than the 64.13 federal or state minimum wage for that type of employment, 64.14 whichever is applicable; 64.15 (4) offers a job vacancy which is not the result of a 64.16 strike, lockout, or other bona fide labor dispute; 64.17 (5) requires a round-trip commuting time from the 64.18 recipient's residence of less than two hours by available 64.19 transportation, exclusive of the time to transport children to 64.20 and from child care; 64.21 (6) does not require the recipient to leave children under 64.22 age 12 unattended in order to work, or if child care is 64.23 required, such care is available; and 64.24 (7) does not discriminate at the job site on the basis of 64.25 age, sex, race, color, creed, marital status, status with regard 64.26 to public assistance, disability, religion, or place of national 64.27 origin. 64.28 Subd. 2. [COUNTY RESPONSIBILITIES.] (a) Each county must 64.29 develop and provide an employment and training program which is 64.30 designed to put participants on the most direct path to 64.31 full-time unsubsidized employment. Participation in these 64.32 services is mandatory for all nondeferred MFIP-S caregivers. 64.33 For single parent cases, mandatory participation is required 64.34 within six months of eligibility determination for cash 64.35 assistance. Each county will decide when, within the first six 64.36 months, to require participation. For two parent cases, 65.1 participation is required concurrent with the receipt of MFIP-S 65.2 cash assistance. For parents under the age of 20, without a 65.3 high school diploma or its equivalent, participation is required 65.4 concurrent with the receipt of MFIP-S cash assistance. 65.5 (b) In counties selected for the Work First and Work 65.6 Focused programs, first-time applicants shall meet the 65.7 requirements of the Work First and Work Focused programs in lieu 65.8 of the requirements under MFIP-S. 65.9 (c) A caregiver who was enrolled in project STRIDE or 65.10 ACCESS on July 1, 1997, and was making satisfactory progress 65.11 toward the objectives specified in the caregiver's employment 65.12 plan, may continue with the existing employment plan for up to 65.13 one year with the approval of a job counselor. The job 65.14 counselor may require changes to the plan in order to be 65.15 consistent with the one-year time limit. 65.16 (d) Counties may provide employment and training services 65.17 to MFIP-S recipients who volunteer before the date upon which 65.18 they become mandatory for participation. 65.19 (e) As part of the application process, counties must 65.20 provide all applicants with a face-to-face orientation to public 65.21 assistance and employment and training services that stresses 65.22 the necessity and opportunity of immediate employment, outlines 65.23 the job search resources offered, explains the requirement to 65.24 comply with an employment plan and the consequences for failing 65.25 to comply, and explains the services that are available to 65.26 support job search and work. 65.27 (f) The provider must conduct an assessment of the ability 65.28 to obtain employment of all caregivers who are mandatory for 65.29 employment and training services. 65.30 (g) Based on the assessment, the provider must develop a 65.31 written employment plan which outlines the most direct path to 65.32 full-time unsubsidized employment, the specific steps that will 65.33 be taken to obtain employment, and a timetable for the 65.34 completion of each of the steps. 65.35 (h) Counties, or their providers, will determine what 65.36 services, in addition to the orientation, assessment, and 66.1 employment plan, will be provided. For purposes of MFIP-S, any 66.2 approved activity included in the caregiver's employment plan, 66.3 meets the definition of work activity as counted under the 66.4 federal participation standards. Within the limitations of 66.5 funding, any reasonable service or sequence of services that 66.6 leads directly to is allowed. At the request of a county, the 66.7 state will provide assistance in developing services, or service 66.8 approaches. Services that may be provided include, but are not 66.9 limited to: adult basic education; apprenticeships; bilingual 66.10 employment and training services; community service; CWEP as 66.11 specified in subdivision 17; English as a second language; 66.12 general educational development diploma classes; grant diversion 66.13 as specified in subdivision 19; job clubs; job coaching; job 66.14 placement including part-time employment; job-related 66.15 counseling; job retention services; job-specific training or 66.16 education, limited to one year; on-the-job training as specified 66.17 in subdivision 18; referrals to other social services; SEID; 66.18 skills testing; supervised and/or unsupervised job search; and 66.19 workshops. 66.20 (i) Educational options are limited to one year unless the 66.21 job counselor and the participant jointly determine that a 66.22 two-year limit would best achieve long-term self-sufficiency. 66.23 Subd. 3. [THE SELF-EMPLOYMENT INVESTMENT DEMONSTRATION 66.24 PROGRAM (SEID).] (a) A caregiver who enrolls and participates in 66.25 the SEID program as specified in section 268.95, may, at county 66.26 option, be exempted from other employment and training 66.27 participation requirements for a period of up to 24 months, 66.28 except for the school attendance requirements as specified in 66.29 subdivision 9. 66.30 (b) The following income and resource considerations apply 66.31 to SEID participants: 66.32 (1) an unencumbered cash reserve fund, composed of proceeds 66.33 from a SEID business, is not counted against the grant if those 66.34 funds are reinvested in the business and the value of the 66.35 business does not exceed $3,000. The value of the business is 66.36 determined by deducting outstanding encumbrances from retained 67.1 business profit; and 67.2 (2) the purchase of capital equipment and durable goods of 67.3 an amount up to $3,000 during a 24-month project period is 67.4 allowed as a business expense. 67.5 (c) SEID participants are also eligible for employment and 67.6 training services, including child care and transportation. 67.7 Subd. 4. [MOVE TO A DIFFERENT COUNTY.] MFIP-S applicants 67.8 or recipients who move to a different county in Minnesota and 67.9 are required to participate in employment and training services, 67.10 are subject to the requirements of the destination county. An 67.11 employment plan that was developed in the county of origin may 67.12 be continued in the destination county if both the destination 67.13 county and the participant agree to do so. 67.14 Subd. 5. [PARTICIPANT EXPECTATIONS.] All MFIP-S 67.15 participants must meet the terms of the employment plan as 67.16 specified in subdivision 2, paragraph (g). For a caregiver 67.17 under the age of 20 without a high school diploma or general 67.18 educational development diploma, the requirement to participate 67.19 in employment and training services means that the caregiver 67.20 must meet the educational requirements under subdivision 9. 67.21 Failure to develop or comply with the employment plan will 67.22 result in the imposition of a sanction as specified in 67.23 subdivision 11. 67.24 Subd. 6. [EMPLOYMENT AND TRAINING PERFORMANCE 67.25 STANDARDS.] The department shall adopt a two-stage set of 67.26 employment and training services performance standards. The 67.27 first-stage standards are mandatory for all counties and are 67.28 intended to enable the state to achieve the federal 67.29 participation standards. The second-stage standards are 67.30 intended to reward counties for performance that exceeds the 67.31 mandatory standards. Only those counties that meet the 67.32 first-stage standards are eligible for the second-stage 67.33 incentives. 67.34 (a) [FIRST-STAGE PERFORMANCE STANDARDS.] Each county must 67.35 independently meet the federal participation standards. Failure 67.36 to meet the federal participation standards will result in a 68.1 sanction as specified in paragraph (b). Only counties that meet 68.2 the federal participation standards are eligible for incentives 68.3 under paragraph (d). 68.4 (b) [DISPOSITION OF SANCTIONS RESULTING FROM THE FAILURE TO 68.5 MEET FEDERAL PARTICIPATION STANDARDS.] (1) If the state, as a 68.6 whole, fails to achieve the performance standards specified in 68.7 paragraph (a), and is sanctioned by the federal government, the 68.8 fiscal penalty will be apportioned to the state and the counties 68.9 using the following method: 68.10 (i) multiply the full sanction amount by 50 percent. This 68.11 is the state's share of the sanction; 68.12 (ii) distribute the nonstate share of the sanction across 68.13 all counties in direct proportion to their employment and 68.14 training services allocation for the year for which the sanction 68.15 was imposed. For counties that did not meet the federal 68.16 participation standards, this amount is the fiscal penalty that 68.17 is imposed; 68.18 (iii) divide the amount computed in item (ii) by two. This 68.19 is the fiscal penalty that is imposed on counties that meet the 68.20 federal participation standards; 68.21 (iv) under any circumstance, the sanction applied to any 68.22 county shall not exceed one-third of its employment and training 68.23 services allocation for the year for which the sanction was 68.24 imposed; and 68.25 (v) after applying items (i) to (iv), any remaining 68.26 unattributed portion of the federal sanction will be assumed by 68.27 the state. 68.28 (2) Counties that fail to achieve the standard specified in 68.29 paragraph (a), will be subject to a review of their employment 68.30 and training services program under section 268.86, subdivision 68.31 2. The departments of human services and economic security will 68.32 work with counties to assess and revise their programs to 68.33 improve their ability to achieve the standards in the following 68.34 year. 68.35 (3) If, in a given year, the state, as a whole, has met the 68.36 performance standards specified in paragraph (a), a county for 69.1 which the given year is the second consecutive year in which the 69.2 performance standards were not met will, in addition to a 69.3 department review of the county program, be subject to a fiscal 69.4 sanction of an amount equal to 20 percent of the total 69.5 employment and training services allocation for the second year 69.6 in which the standards were not met. 69.7 (4) The sanction, as specified in clause (1) or (3), shall 69.8 be adjusted to account for variations in county demographic and 69.9 economic conditions. The department shall develop a method for 69.10 this adjustment by January 1, 1998. 69.11 (5) A county may not pay its share of any federal or 69.12 state-imposed fiscal sanction from the employment and training 69.13 services allocation to the county. Each county must maintain 69.14 employment and training services funding at the full allocation 69.15 level, regardless of any penalties that are imposed. 69.16 (c) [SECOND-STAGE PERFORMANCE STANDARDS.] (1) Beginning 69.17 July 1, 1998, and each quarter thereafter, the commissioner of 69.18 human services shall inform all counties of each county's 69.19 performance on the following measures: 69.20 (i) MFIP-S caseload reduction; 69.21 (ii) average placement wage rate; 69.22 (iii) rate of job retention after three months; 69.23 (iv) placement rate into unsubsidized jobs; and 69.24 (v) federal participation requirements as specified in 69.25 subdivision 1. 69.26 (2) By July 1, 1999, the department shall establish 69.27 performance standards for each of the measures in this paragraph. 69.28 (d) [INCENTIVE FUND.] (1) Beginning July 1, 2000, and in 69.29 each subsequent state fiscal year, the commissioner shall 69.30 withhold from the county allocation process under subdivision 2, 69.31 five percent of the total annual MFIP-S employment and training 69.32 services appropriation in an incentive fund to be awarded to 69.33 counties that have met the standards specified under paragraph 69.34 (c), during the previous fiscal year. 69.35 (2) Twenty percent of the total incentive fund shall be 69.36 reserved for each of the five measures specified in paragraph 70.1 (c). On July 1, 2000, all counties that have met a given 70.2 standard during the previous state fiscal year shall share the 70.3 incentive for that standard. Each county's share of an 70.4 incentive shall be the same percent as its MFIP-S employment and 70.5 training services allocation for the previous state fiscal year 70.6 is of the sum of the allocations to the counties that qualify to 70.7 share in the incentive for a given measure. 70.8 (3) At the discretion of the commissioner, during the first 70.9 two years of the incentive fund, the incentive may be used as a 70.10 contingency fund to cover unanticipated county costs of 70.11 implementing the new employment and training program. 70.12 (4) If no county achieves the second-stage standards, the 70.13 entire incentive fund, minus any amount used under clause (3), 70.14 will be allocated to all counties in direct proportion to their 70.15 original employment and training services allocation. 70.16 Subd. 7. [SERVICE-PROVIDING AGENCIES.] Counties may select 70.17 one or more employment and training service providers or may opt 70.18 to provide services on their own. Service providers must be 70.19 certified by the commissioner of economic security according to 70.20 the standards in section 268.871, subdivision 1. 70.21 Subd. 8. [DEFERRALS.] (a) A caregiver is deferred from the 70.22 requirement to comply with MFIP-S expectations, for as long as 70.23 the condition persists, if the caregiver is: 70.24 (1) ill or incapacitated, when the illness or incapacity is 70.25 expected to continue for at least 15 days and is professionally 70.26 certified, and limits the participants' ability to comply with 70.27 the terms of the employment plan; 70.28 (2) 60 years of age or older; 70.29 (3) needed in the home to care for an ill or incapacitated 70.30 family member; 70.31 (4) a parent in a two-parent family where the youngest 70.32 child is under age six, or age six and not in kindergarten, and 70.33 the parent is personally caring for the child; 70.34 (5) the single parent of a child under one year of age and 70.35 is personally providing care for the child this deferral may be 70.36 used only once in a lifetime; 71.1 (6) the single parent of a child under six years of age and 71.2 is employed for 30 or more hours per week. This deferral does 71.3 not apply to the school attendance requirement for minor parents 71.4 or 18- and 19-year-old parents as provided in subdivision 9, 71.5 paragraph (b); 71.6 (7) the second parent in a two-parent family and is 71.7 employed for 20 or more hours per week; 71.8 (8) working 35 hours or more per week or, if the number of 71.9 hours cannot be verified, earns weekly, at least the federal 71.10 minimum hourly wage rate multiplied by 35; 71.11 (9) not the natural parent, adoptive parent, or stepparent 71.12 of a minor child in the assistance unit; or 71.13 (10) is willing to comply but needed child care is 71.14 unavailable and the youngest child is under age 12. 71.15 (b) In a multiple-parent family, only one parent may be 71.16 deferred under paragraph (a), clause (3), (4), or (7). 71.17 Subd. 9. [TEEN PARENT.] (a) The county agency must examine 71.18 the educational level of each caregiver under the age of 20 to 71.19 determine if the caregiver has completed a high school education 71.20 or its equivalent. If the caregiver has completed a high school 71.21 education or its equivalent and is not exempt from the 71.22 requirement to attend school under paragraph (c), the county 71.23 agency must complete an individual assessment for the 71.24 caregiver. The assessment must be performed as soon as possible 71.25 but within 30 days of determining MFIP-S eligibility for the 71.26 caregiver. The assessment must provide an initial examination 71.27 of the caregiver's educational progress and needs, literacy 71.28 level, child care and supportive service needs, family 71.29 circumstances, skills, and work experience. In the case of a 71.30 caregiver under the age of 18, the assessment must also consider 71.31 the results of the child and teen checkup, if available, and the 71.32 effect of a child's development and educational needs on the 71.33 caregiver's ability to participate in the program. The county 71.34 agency must advise the caregiver that the caregiver's first goal 71.35 must be to complete an appropriate educational option if one is 71.36 identified for the caregiver through the assessment and, in 72.1 consultation with educational agencies, must review the various 72.2 school completion options with the caregiver and assist in 72.3 selecting the most appropriate option. 72.4 (b) For caregivers who are under age 18, the assessment and 72.5 the employment plan must be completed by the county social 72.6 services agency, as specified in section 257.33. For caregivers 72.7 who are age 18 or 19, the assessment and employment plan must be 72.8 completed by the job counselor. The social services agency or 72.9 the job counselor shall consult with representatives of 72.10 educational agencies required to assist in developing 72.11 educational plans under section 126.235. 72.12 (c) If the job counselor or county social services agency 72.13 identifies an appropriate educational option, it must develop an 72.14 employment plan which reflects the assessment. The plan must 72.15 specify that participation in an educational activity is 72.16 required, what school or educational program is most 72.17 appropriate, the services that will be provided, the activities 72.18 the caregiver will take part in, including child care and 72.19 supportive services, the consequences to the caregiver for 72.20 failing to participate or comply with the specified 72.21 requirements, and the right to appeal any adverse action. The 72.22 employment plan must, to the extent possible, reflect the 72.23 preferences of the caregiver. 72.24 (d) If the job counselor determines that there is no 72.25 appropriate educational option for a caregiver who is age 18 or 72.26 19, the job counselor shall develop an employment plan 72.27 consistent with subdivision 1, paragraph (d). If the county 72.28 social services agency determines that school attendance is not 72.29 appropriate for a caregiver under age 18, the county agency 72.30 shall refer the caregiver to social services for services as 72.31 provided in section 257.33. 72.32 (e) Notwithstanding subdivision 8, minor parents, or 18- or 72.33 19-year-old parents without a high school diploma or its 72.34 equivalent must attend school unless: 72.35 (1) transportation services needed to enable the caregiver 72.36 to attend school are not available; 73.1 (2) licensed or legal nonlicensed child care services 73.2 needed to enable the caregiver to attend school are not 73.3 available; 73.4 (3) the caregiver is ill or incapacitated seriously enough 73.5 to prevent attendance at school; 73.6 (4) the caregiver is needed in the home because of the 73.7 illness or incapacity of another member of the household; this 73.8 includes a caregiver of a child who is younger than six weeks of 73.9 age; 73.10 (5) the caregiver works 30 or more hours per week; or 73.11 (6) the caregiver is pregnant and incapacity is verified. 73.12 (f) The caregiver must be enrolled in school and meeting 73.13 the school's attendance requirements. If enrolled, the 73.14 caregiver is considered to be attending when the school is not 73.15 in regular session, including during holiday and summer breaks. 73.16 Subd. 10. [GOOD CAUSE FOR FAILURE TO COMPLY.] Caregivers 73.17 may claim good cause for failing to comply with the requirements 73.18 of the program when, in the judgment of the job counselor, the 73.19 reason for failure is reasonable and justified. 73.20 Subd. 11. [FAILURE TO COMPLY; NOTICES AND SANCTIONS.] (a) 73.21 When a nondeferred caregiver fails without good cause to comply 73.22 with development of an employment plan or the provisions of that 73.23 plan, the county agency or its job counselor must provide a 73.24 notice of intent to sanction to the caregiver specifying the 73.25 program requirements that were not complied with, informing the 73.26 caregiver that the county agency will impose the sanctions 73.27 specified in paragraph (d), and informing the caregiver of the 73.28 opportunity to request a conciliation conference as specified in 73.29 paragraph (b). If the job counselor provides the required 73.30 notice, the job counselor must simultaneously notify the local 73.31 agency that the caregiver has failed to comply and request that 73.32 the county agency impose the sanctions in paragraph (d). The 73.33 county must then send a notice of adverse action to the 73.34 caregiver informing the caregiver of the sanction that will be 73.35 imposed, the reasons for the sanction, the effective date of the 73.36 sanction, and the caregiver's right to have a fair hearing under 74.1 section 256J.28. 74.2 (b) The caregiver may request a conciliation conference by 74.3 sending a written request, by making a telephone request, or by 74.4 making an in-person request. The request must be received 74.5 within ten calendar days of the date the county agency mailed 74.6 the ten-day notice of intent to sanction. If a timely request 74.7 for a conciliation is received, the county agency's service 74.8 provider must conduct the conference within five days of the 74.9 request. If the conciliation conference resolves the 74.10 noncompliance, the job counselor must promptly inform the county 74.11 agency and request withdrawal of the sanction notice. 74.12 (c) Upon receiving a sanction notice, the caregiver may 74.13 request a fair hearing under section 256J.28, without exercising 74.14 the option of a conciliation conference. The county agency may 74.15 not require a conciliation conference prior to a fair hearing. 74.16 (d) Sanctions are effective following expiration of the 74.17 ten-day notice period. The sanction for failure to comply or 74.18 participate is a minimum of one month for any incidence of 74.19 noncompliance, including quitting suitable employment without 74.20 good cause. If noncompliance continues beyond one month, the 74.21 sanction shall remain in effect until the beginning of the month 74.22 after failure to comply ceases. The sanction for a family whose 74.23 nondeferred parental caregiver fails without good cause to 74.24 comply with the requirements of this section is a reduction 74.25 equal to 25 percent of the transitional standard as defined in 74.26 section 256J.08, subdivision 97, when only one sanction is 74.27 imposed. When the caretaker fails to participate in or comply 74.28 on more than one occasion and concurrent sanctions are imposed, 74.29 the reduction shall be an additional ten percent of the 74.30 transitional standard. The maximum reduction to assistance may 74.31 not exceed 35 percent of the transitional standard for any 74.32 family. When concurrent sanctions expire and the number of 74.33 active sanctions drops to one, the remaining sanction is equal 74.34 to 25 percent of the transitional standard, regardless of the 74.35 order in which the sanctions were imposed. 74.36 (e) If noncompliance continues beyond three months, the 75.1 rent and utilities portion of the family's assistance shall be 75.2 vendor paid in accordance with the provisions of section 75.3 256J.24, subdivisions 2 to 4. Vendor payments for rent and 75.4 utilities shall continue until the sanction is removed. 75.5 Subd. 12. [REPORTING REQUIREMENTS.] The commissioner of 75.6 human services, in cooperation with the commissioner of economic 75.7 security, shall develop reporting requirements for county 75.8 agencies and employment and training service providers according 75.9 to section 256.01, subdivision 2, paragraph 17. Reporting 75.10 requirements must, to the extent possible, use existing client 75.11 tracking systems and must be within the limits of funds 75.12 available. The requirements must include summary information 75.13 necessary for state agencies and the legislature to evaluate the 75.14 effectiveness of the services. 75.15 Subd. 13. [LOCAL SERVICE UNIT PLANS.] Each local service 75.16 unit shall prepare and submit a plan as specified in section 75.17 268.88. 75.18 Subd. 14. [ALLOCATION OF COUNTY EMPLOYMENT AND TRAINING 75.19 SERVICES BLOCK GRANT.] (a) State money appropriated for MFIP-S 75.20 employment and training services under this section must be 75.21 allocated to counties as specified in this subdivision. 75.22 (b) First, money shall be allocated to counties in an 75.23 amount equal to the county's guaranteed floor. The county's 75.24 guaranteed allocation floor shall be calculated as follows: 75.25 (1) for fiscal 1998, the guaranteed allocation floor shall 75.26 be calculated by multiplying the county's STRIDE allocation 75.27 received for state fiscal year 1997 by 90 percent; 75.28 (2) for each subsequent fiscal year, the guaranteed 75.29 allocation floor shall be calculated by multiplying the county's 75.30 MFIP-S employment and training services allocation received the 75.31 previous state fiscal year by 90 percent; and 75.32 (3) if the amount of funds available for allocation is less 75.33 than the amount allocated to all counties for the previous 75.34 fiscal year, each county's previous year allocation shall be 75.35 reduced in proportion to the reduction in statewide funding for 75.36 the purpose of establishing the guaranteed floor. 76.1 (c) If there remain funds to allocate after establishing 76.2 each county's guaranteed floor under the provisions in paragraph 76.3 (b), the balance of funds shall be allocated as follows: 76.4 (1) for state fiscal year 1998, the remaining funds shall 76.5 be allocated based on the county's average number of AFDC cases 76.6 as compared to the statewide total number of cases. The average 76.7 number of cases shall be based on counts of AFDC cases as of 76.8 March 31, June 30, September 30, and December 31 of calendar 76.9 year 1996; 76.10 (2) for state fiscal year 1999, the remaining funds shall 76.11 be allocated based on the county's average number of AFDC and 76.12 MFIP cases as compared to the statewide total number of cases. 76.13 The average number of cases shall be based on counts of AFDC and 76.14 MFIP cases as of March 31, June 30, September 30, and December 76.15 31 of calendar year 1997; and 76.16 (3) for all subsequent state fiscal years, the remaining 76.17 funds shall be allocated based on the county's average number of 76.18 MFIP-S cases as compared to the statewide total number of 76.19 cases. The average number of cases must be based on counts of 76.20 MFIP-S cases as of March 31, June 30, September 30, and December 76.21 31 of the previous calendar year. 76.22 (d) Funds allocated for STRIDE services for state fiscal 76.23 year 1998 are allocated to county agencies based on the 76.24 provisions of statute in effect on June 30, 1997. At the time 76.25 that the AFDC program is replaced by the Temporary Assistance 76.26 for Needy Families program under title 1 of Public Law Number 76.27 104-193 of the Personal Responsibility and Work Opportunity Act 76.28 of 1996, any unexpended balance of a county's STRIDE allocation 76.29 for that fiscal year remains available to the county for 76.30 operation of MFIP-S employment and training services and for the 76.31 operation of the STRIDE program for the MFIP field trial 76.32 counties for the balance of the fiscal year. These STRIDE funds 76.33 shall be included in the calculation of the next year's MFIP-S 76.34 employment and training allocation under the provisions of 76.35 paragraph (b). 76.36 (e) No more than 15 percent of the money allocated under 77.1 this subdivision may be used for administrative activities. 77.2 (f) State funds appropriated to cover the costs of 77.3 bilingual employment and training services to refugees shall be 77.4 allocated to county agencies as follows: 77.5 (1) for state fiscal year 1998, the allocation shall be 77.6 based on the county's proportion of the total statewide number 77.7 of AFDC refugee cases in the previous fiscal year. Counties 77.8 with less than one percent of the statewide number of AFDC or 77.9 MFIP refugee cases shall not receive an allocation of bilingual 77.10 employment and training services funds; and 77.11 (2) for each subsequent fiscal year, the allocation shall 77.12 be based on the county's proportion of the total statewide 77.13 number of MFIP-S refugee cases in the previous fiscal year. 77.14 Counties with less than one percent of the statewide number of 77.15 MFIP-S refugee cases shall not receive an allocation of 77.16 bilingual employment and training services funds. 77.17 (g) The commissioner of human services shall review county 77.18 agency expenditures of MFIP-S employment and training services 77.19 funds at the end of the third quarter of the first year of the 77.20 biennium and each quarter after that and may reallocate 77.21 unencumbered or unexpended money appropriated under this section 77.22 to those county agencies that can demonstrate a need for 77.23 additional money. 77.24 (h) At the request of the caregiver, the county agency may 77.25 continue to provide MFIP-S employment and training and support 77.26 services to a participant for up to 90 days after the 77.27 participant loses MFIP-S eligibility and may continue providing 77.28 a specific employment and training service for the duration of 77.29 that service to a participant if funds for the service are 77.30 obligated or expended prior to the participant losing MFIP-S 77.31 eligibility. 77.32 Subd. 15. [PROVISION OF MFIP-S EMPLOYMENT AND TRAINING 77.33 SERVICES BY INDIAN TRIBES.] (a) The commissioner may enter into 77.34 agreements with federally recognized Indian tribes with a 77.35 reservation in the state to provide MFIP-S employment and 77.36 training services to members of the Indian tribe and to other 78.1 caregivers who are a part of the tribal member's MFIP-S 78.2 assistance unit. For purposes of this section, "Indian tribe" 78.3 means a tribe, band, nation, or other federally recognized group 78.4 or community of Indians. The commissioner may also enter into 78.5 an agreement with a consortium of Indian tribes providing the 78.6 governing body of each Indian tribe in the consortium complies 78.7 with the provisions of this section. 78.8 (b) The Indian tribe must agree to fulfill the 78.9 responsibilities provided under section 256J.27 regarding 78.10 operation of MFIP-S employment and training services, as 78.11 designated by the commissioner. 78.12 (c) The Indian tribe must operate its employment and 78.13 training services program within a geographic service area not 78.14 to exceed the counties within which a border of the reservation 78.15 falls. 78.16 (d) The Indian tribe must operate its program in conformity 78.17 with section 13.46 and any applicable federal regulations in the 78.18 use of data about MFIP-S recipients. 78.19 (e) The Indian tribe must coordinate operation of its 78.20 program with the county agency, Job Training Partnership Act 78.21 programs, and other support services or employment-related 78.22 programs in the counties in which the tribal unit's program 78.23 operates. 78.24 (f) The Indian tribe must provide financial and program 78.25 participant activity recordkeeping and reporting in the manner 78.26 and using the forms and procedures specified by the commissioner 78.27 and permit inspection of its program and records by 78.28 representatives of the state. 78.29 (g) The Indian tribe's employment and training service 78.30 provider must be certified by the commissioner of economic 78.31 security. 78.32 (h) If the commissioner and an Indian tribe are parties to 78.33 an agreement under this subdivision, the agreement may annually 78.34 provide to the Indian tribe the funding amount in clause (1) or 78.35 (2): 78.36 (1) if the Indian tribe operated a tribal STRIDE program 79.1 during state fiscal year 1997, the amount to be provided is the 79.2 amount the Indian tribe received from the state for operation of 79.3 its tribal STRIDE program in state fiscal year 1997, except that 79.4 the amount provided for a fiscal year may increase or decrease 79.5 in the same proportion that the total amount of state funds 79.6 available for MFIP-S employment and training services increased 79.7 or decreased that fiscal year. No additional funds shall be 79.8 provided to the tribe under this clause for the first year of 79.9 expansion of MFIP beyond the pilot counties; or 79.10 (2) if the Indian tribe did not operate a tribal STRIDE 79.11 program during state fiscal year 1997, the commissioner may 79.12 provide to the Indian tribe for the first year of operations the 79.13 amount determined by multiplying the state allocation for MFIP-S 79.14 employment and training services to each county agency in the 79.15 Indian tribe's service delivery area by the percentage of MFIP-S 79.16 recipients in that county who were members of the Indian tribe 79.17 during the previous state fiscal year. The resulting amount 79.18 shall also be the amount that the commissioner may provide to 79.19 the Indian tribe annually thereafter through an agreement under 79.20 this subdivision, except that the amount provided for a fiscal 79.21 year may increase or decrease in the same proportion that the 79.22 total amount of state funds available for MFIP-S employment and 79.23 training services increased or decreased that fiscal year. No 79.24 additional funds shall be provided to the tribe under this 79.25 clause for the first year of expansion of MFIP beyond the pilot 79.26 counties. 79.27 (i) Indian tribal members receiving MFIP-S benefits and 79.28 residing in the service area of an Indian tribe operating 79.29 employment and training services under an agreement with the 79.30 commissioner must be referred by county agencies in the service 79.31 area to the Indian tribe for employment and training services. 79.32 Subd. 16. [INJURY PROTECTION FOR WORK EXPERIENCE 79.33 PARTICIPANTS.] (a) Payment of any claims resulting from an 79.34 alleged injury or death of a person participating in a county or 79.35 a tribal community work experience program approved by the 79.36 commissioner according to this section shall be determined in 80.1 accordance with this section. This determination method applies 80.2 to work experience programs authorized by the commissioner for 80.3 persons applying for or receiving cash assistance and food 80.4 stamps, Minnesota parent's fair share, and to obligors 80.5 participating in community services under section 518.551, 80.6 subdivision 5a, in a county with an approved community 80.7 investment program. 80.8 (b) Claims that are subject to this section shall be 80.9 investigated by the county agency or the tribal program 80.10 responsible for supervising the work to determine whether the 80.11 claimed injury occurred, whether the claimed medical expenses 80.12 are reasonable, and whether the loss is covered by the 80.13 claimant's insurance. If insurance coverage is established, the 80.14 county agency or tribal program shall submit the claim to the 80.15 appropriate insurance entity for payment. The investigating 80.16 county agency or tribal program shall submit all valid claims, 80.17 in the net amount of any insurance payments, to the department 80.18 of human services. 80.19 (c) The department of human services shall submit all 80.20 claims for impairment compensation to the commissioner of labor 80.21 and industry. The commissioner of labor and industry shall 80.22 review all submitted claims and recommend to the department of 80.23 human services an amount of compensation comparable to that 80.24 which would be provided under the impairment compensation 80.25 schedule of section 176.101, subdivision 3b. 80.26 (d) The department of human services shall approve a claim 80.27 of $1,000 or less for payment if appropriated funds are 80.28 available, if the county agency or tribal program responsible 80.29 for supervising the work has made the determinations required by 80.30 this section, and if the work program was operated in compliance 80.31 with the safety provisions of this section. The department 80.32 shall pay the portion of an approved claim of $1,000 or less 80.33 that is not covered by the claimant's insurance within three 80.34 months of the date of submission. On or before February 1 of 80.35 each legislative session, the department shall submit to the 80.36 appropriate committees of the senate and the house of 81.1 representatives a list of claims of $1,000 or less paid during 81.2 the preceding calendar year and shall be reimbursed by 81.3 legislative appropriation for any claims that exceed the 81.4 original appropriation provided to the department to operate 81.5 this program. Any unspent money from this appropriation shall 81.6 carry over to the second year of the biennium, and any unspent 81.7 money remaining at the end of the second year shall be returned 81.8 to the state general fund. 81.9 (e) On or before February 1 of each year, the department 81.10 shall submit to the appropriate committees of the senate and the 81.11 house of representatives a list of claims in excess of $1,000 81.12 and a list of claims of $1,000 or less that were submitted to 81.13 but not paid by the department of human services, together with 81.14 any recommendations of appropriate compensation. These claims 81.15 shall be heard and determined by the appropriate committees of 81.16 the senate and house of representatives and, if approved, shall 81.17 be paid under the legislative claims procedure. 81.18 (f) Compensation paid under this section is limited to 81.19 reimbursement for reasonable medical expenses and impairment 81.20 compensation for disability in like amounts as allowed in 81.21 section 176.101, subdivision 3b. Compensation for injuries 81.22 resulting in death shall include reasonable medical expenses and 81.23 burial expenses in addition to payment to the participant's 81.24 estate in an amount up to $200,000. No compensation shall be 81.25 paid under this section for pain and suffering, lost wages, or 81.26 other benefits provided in chapter 176. Payments made under 81.27 this section shall be reduced by any proceeds received by the 81.28 claimant from any insurance policy covering the loss. For the 81.29 purposes of this section, "insurance policy" does not include 81.30 the medical assistance program authorized under chapter 256B or 81.31 the general assistance medical care program authorized under 81.32 chapter 256D. 81.33 (g) The procedure established by this section is exclusive 81.34 of all other legal, equitable, and statutory remedies against 81.35 the state, its political subdivisions, or employees of the state 81.36 or its political subdivisions. The claimant shall not be 82.1 entitled to seek damages from any state, county, tribal, or 82.2 reservation insurance policy or self-insurance program. 82.3 (h) A claim is not valid for purposes of this subdivision 82.4 if the local agency responsible for supervising the work cannot 82.5 verify to the department of human services: 82.6 (1) that appropriate safety training and information is 82.7 provided to all persons being supervised by the agency under 82.8 this subdivision; and 82.9 (2) that all programs involving work by those persons 82.10 comply with federal Occupational Safety and Health 82.11 Administration and state department of labor and industry safety 82.12 standards. A claim that is not valid because of failure to 82.13 verify safety training or compliance with safety standards will 82.14 not be paid by the department of human services or through the 82.15 legislative claims process and must be heard, decided, and paid, 82.16 if appropriate, by the local government unit or tribal JOBS 82.17 program responsible for supervising the work of the claimant. 82.18 (i) This program is effective July 1, 1995. Claims may be 82.19 submitted on or after November 1, 1995. 82.20 (j) With respect to participants of the food stamp 82.21 employment and training program, this section is effective 82.22 December 1, 1996. 82.23 Subd. 17. [COMMUNITY WORK EXPERIENCE.] (a) To the extent 82.24 of available resources, each county agency may establish and 82.25 operate a work experience component for MFIP-S caregivers who 82.26 are participating in employment and training services. The 82.27 purpose of the work experience component is to enhance the 82.28 caregiver's employability and self-sufficiency and to provide 82.29 meaningful, productive work activities. 82.30 (b) The commissioner shall assist counties in the design 82.31 and implementation of these components. Program participants 82.32 may not be assigned to work that was part or all of the duties 82.33 or responsibilities of an authorized public employee bargaining 82.34 unit position established as of July 1, 1996. The exclusive 82.35 bargaining representative shall be notified no less than 14 days 82.36 in advance of any placement by the community work experience 83.1 program. Written or oral concurrence with respect to job duties 83.2 of persons placed under the community work experience program 83.3 shall be obtained from the appropriate exclusive bargaining 83.4 representative. 83.5 (c) Work sites developed under this section are limited to 83.6 projects that serve a useful public service such as: health, 83.7 social service, environmental protection, education, urban and 83.8 rural development and redevelopment, welfare, recreation, public 83.9 facilities, public safety, community service, services to aged 83.10 or disabled citizens, and child care. To the extent possible, 83.11 the prior training, skills, and experience of a caregiver must 83.12 be considered in making appropriate work experience assignments. 83.13 (d) Structured, supervised volunteer work with an agency or 83.14 organization, which is monitored by the county service provider, 83.15 may, with the approval of the county agency, be used as a work 83.16 experience placement. 83.17 (e) As a condition of placing a caregiver in a program 83.18 under this subdivision, the county agency shall first provide 83.19 the caregiver the opportunity: 83.20 (1) for placement in suitable subsidized or unsubsidized 83.21 employment through participation in a job search; or 83.22 (2) for placement in suitable employment through 83.23 participation in on-the-job training, if such employment is 83.24 available. 83.25 (f) The caretaker's employment plan must include the length 83.26 of time needed in the work experience program, the need to 83.27 continue job-seeking activities while participating in work 83.28 experience, and the caregiver's employment goals. 83.29 (g) After each six months of a caregiver's participation in 83.30 a work experience job placement, and at the conclusion of each 83.31 work experience assignment under this section, the county agency 83.32 shall reassess and revise, as appropriate, the caregiver's 83.33 employment plan. 83.34 (h) A caregiver has good cause for failure to cooperate 83.35 with a work experience job placement if: 83.36 (1) work site participation adversely affects the 84.1 caretaker's physical or mental health, or the caregiver is 84.2 physically or mentally unfit to perform the assigned duties as 84.3 verified by a physician, licensed or certified psychologist, 84.4 physical therapist, or a vocational expert; 84.5 (2) the county agency determines that the caretaker does 84.6 not possess the skill or knowledge required for the work; 84.7 (3) the assignment requires joining, resigning from, or 84.8 refraining from joining a legitimate labor union, or the 84.9 assignment is to a site subject to a strike or lockout; 84.10 (4) the distance to the site prohibits walking and neither 84.11 public nor private transportation is available; 84.12 (5) the working hours or nature of the employment 84.13 interferes with the person's religious observances, convictions, 84.14 or beliefs; 84.15 (6) the assignment involves political or partisan 84.16 activities; 84.17 (7) there are circumstances beyond the household's control, 84.18 such as illness or a household emergency; 84.19 (8) the unavailability of child care for a child between 84.20 the ages of 6 and 12; or 84.21 (9) there are costs of transportation and other 84.22 work-related expenses that the caregiver is expected to incur 84.23 out-of-pocket and those costs are not reimbursed. 84.24 Subd. 18. [ON-THE-JOB TRAINING.] (a) County agencies may 84.25 develop on-the-job training programs for MFIP-S caregivers who 84.26 are participating in employment and training services. A county 84.27 agency that chooses to provide on-the-job training may make 84.28 payments to employers for on-the-job training costs that, during 84.29 the period of the training, must not exceed 50 percent of the 84.30 wages paid by the employer to the participant. The payments are 84.31 deemed to be in compensation for the extraordinary costs 84.32 associated with training participants under this section and in 84.33 compensation for the costs associated with the lower 84.34 productivity of the participants during training. 84.35 (b) County agencies shall limit the length of training 84.36 based on the complexity of the job and the caregiver's previous 85.1 experience and training. Placement in an on-the-job training 85.2 position with an employer is for the purpose of training and 85.3 employment with the same employer who has agreed to retain the 85.4 person upon satisfactory completion of training. 85.5 (c) Placement of any caregiver in an on-the-job training 85.6 position must be compatible with the assessment under 85.7 subdivision 2, paragraph (g), and the employability plan 85.8 established for the caregiver under subdivision 2, paragraph (h). 85.9 (d) Provision of an on-the-job training program under the 85.10 Job Training Partnership Act, in and of itself, does not qualify 85.11 as an on-the-job training program under this section. 85.12 Subd. 19. [GRANT DIVERSION.] (a) County agencies may 85.13 develop grant diversion programs for MFIP-S participants 85.14 participating in employment and training services. A county 85.15 agency that chooses to provide grant diversion may divert to an 85.16 employer part or all of the MFIP-S cash payment for the 85.17 participant's assistance unit, in compliance with federal 85.18 regulations and laws. Such payments to an employer are to 85.19 subsidize employment for MFIP-S caregivers as an alternative to 85.20 public assistance payments. 85.21 (b) County agencies shall limit the length of training to 85.22 nine months. Placement in a grant diversion training position 85.23 with an employer is for the purpose of training and employment 85.24 with the same employer who has agreed to retain the person upon 85.25 satisfactory completion of training. 85.26 (c) Placement of any caregiver in a grant diversion 85.27 subsidized training position must be compatible with the 85.28 assessment and employability development plan established for 85.29 the recipient under section 256K.03, subdivision 8. 85.30 (d) In addition to diverting the MFIP-S grant to the 85.31 employer, employment and training funds may be used to subsidize 85.32 the grant diversion placement. 85.33 Subd. 20. [PAYMENT METHODS.] MFIP-S grant payments may be 85.34 issued in the form of warrants immediately redeemable in cash, 85.35 electronic benefits transfer, or by direct deposit into the 85.36 recipient's account in a financial institution. 86.1 Sec. 28. [256J.28] [FAIR HEARINGS.] 86.2 Caregivers receiving a notice of intent to sanction or a 86.3 notice of adverse action that includes a sanction, reduction in 86.4 benefits, suspension of benefits, denial of benefits, or 86.5 termination of benefits may request a fair hearing. A request 86.6 for a fair hearing must be submitted in writing to the local 86.7 agency or to the department and must be mailed within 30 days 86.8 after a participant or former participant receives written 86.9 notice of the agency's action or within 90 days when a 86.10 participant or former participant shows good cause for not 86.11 submitting the request within 30 days. A former participant who 86.12 receives a notice of adverse action due to an overpayment may 86.13 appeal the adverse action according to the requirements in this 86.14 section. Issues that may be appealed are: 86.15 (1) the amount of the assistance payment; 86.16 (2) a suspension, reduction, denial, or termination of 86.17 assistance; 86.18 (3) the basis for an overpayment, the calculated amount of 86.19 an overpayment, and the level of recoupment; 86.20 (4) the eligibility for an assistance payment; and 86.21 (5) the use of protective or vendor payments. 86.22 A local agency must not reduce, suspend, or terminate 86.23 payment when an aggrieved participant requests a fair hearing 86.24 prior to the effective date of the adverse action or within ten 86.25 days of the mailing of the notice of adverse action, whichever 86.26 is later, unless the participant requests in writing not to 86.27 receive continued assistance pending a hearing decision. 86.28 Assistance issued pending a fair hearing is subject to recovery 86.29 under section 256J.23 when as a result of the fair hearing 86.30 decision the participant is determined ineligible for assistance 86.31 or the amount of the assistance received. A local agency may 86.32 increase or reduce an assistance payment while an appeal is 86.33 pending when the circumstances of the participant change and are 86.34 not related to the issue on appeal. The commissioner's order is 86.35 binding on a local agency. No additional notice is required to 86.36 enforce the commissioner's order. 87.1 A local agency shall reimburse appellants for reasonable 87.2 and necessary expenses of attendance at the hearing, such as 87.3 child care and transportation costs and for the transportation 87.4 expenses of the appellant's witnesses and representatives to and 87.5 from the hearing. Reasonable and necessary expenses do not 87.6 include legal fees. Fair hearings must be conducted at a 87.7 reasonable time and date by an impartial referee employed by the 87.8 department. The hearing may be conducted by telephone or at a 87.9 site that is readily accessible to persons with disabilities. 87.10 The appellant may introduce new or additional evidence 87.11 relevant to the issues on appeal. Recommendations of the 87.12 appeals referee and decisions of the commissioner must be based 87.13 on evidence in the hearing record and are not limited to a 87.14 review of the local agency action. 87.15 Sec. 29. [256J.29] [CHILD CARE SUPPORT.] 87.16 A caregiver with dependent children who is receiving 87.17 assistance through the MFIP-S program is entitled to child care 87.18 assistance as specified in chapter 119B up to extent of 87.19 available funding. 87.20 Sec. 30. [256J.30] [APPLICANT AND PARTICIPANT 87.21 RESPONSIBILITIES.] 87.22 Subdivision 1. [APPLICANT REPORTING REQUIREMENTS.] An 87.23 applicant must provide information on an application form and 87.24 supplemental forms about the applicant's circumstances which 87.25 affect MFIP-S eligibility or the assistance payment. An 87.26 applicant must report changes identified in subdivision 9 while 87.27 the application is pending. When an applicant does not 87.28 accurately report information on an application, both an 87.29 overpayment and a referral for a fraud investigation may 87.30 result. When an applicant does not provide information or 87.31 documentation, the receipt of the assistance payment may be 87.32 delayed or the application may be denied depending on the type 87.33 of information required and its effect on eligibility. 87.34 Subd. 2. [REQUIREMENT TO APPLY FOR OTHER BENEFITS.] An 87.35 applicant or participant must apply for and follow through with 87.36 appealing any denials of eligibility for benefits from other 88.1 programs for which the applicant or participant is potentially 88.2 eligible and which would, if received, offset assistance 88.3 payments. An applicant's or participant's failure to complete 88.4 application for these benefits without good cause results in 88.5 denial or termination of assistance. Good cause for failure to 88.6 apply for these benefits is allowed when circumstances beyond 88.7 the control of the applicant or participant prevent the 88.8 applicant or participant from making an application. 88.9 Subd. 3. [RESPONSIBILITY TO INQUIRE.] An applicant or 88.10 participant who does not know or is unsure whether a given 88.11 change in circumstances will affect the applicant's or 88.12 participant's MFIP-S eligibility or assistance payment must 88.13 contact the local agency for information. 88.14 Subd. 4. [PARTICIPANT'S COMPLETION OF RECERTIFICATION OF 88.15 ELIGIBILITY FORM.] A participant must complete forms prescribed 88.16 by the commissioner which are required for recertification of 88.17 eligibility according to section 256J.15, subdivision 5. 88.18 Subd. 5. [MONTHLY MFIP-S HOUSEHOLD REPORTS.] Each 88.19 assistance unit with a member who has earned income or a recent 88.20 work history, and each assistance unit that has income allocated 88.21 to it from a financially responsible person living with that 88.22 unit who has earned income or a recent work history, must 88.23 complete a monthly MFIP-S household report form. "Recent work 88.24 history" means the individual received earned income in the 88.25 report month or any of the previous three calendar months even 88.26 if the earnings are excluded. To be complete, the MFIP-S 88.27 household report form must be signed and dated by the caregiver 88.28 no earlier than the last day of the reporting period. All 88.29 questions required to determine assistance payment eligibility 88.30 must be answered, and documentation of earned income must be 88.31 included. 88.32 Subd. 6. [SIX-MONTH MFIP-S HOUSEHOLD REPORT.] Assistance 88.33 units that are not required to report monthly under subdivision 88.34 5 must complete an MFIP-S household report form every six 88.35 months. To be complete, the MFIP-S household report form must 88.36 be signed and dated by the caregiver or caregivers no earlier 89.1 than the last day of the reporting period. All questions 89.2 required to determine assistance payment eligibility must be 89.3 answered and documentation of earned income must be included. 89.4 Subd. 7. [DUE DATE OF MFIP-S HOUSEHOLD REPORT.] An MFIP-S 89.5 household report form must be received by the local agency by 89.6 the eighth calendar day of the month following the reporting 89.7 period covered by the form. When the eighth calendar day of the 89.8 month falls on a weekend or holiday, the MFIP-S household report 89.9 form must be received by the local agency the first working day 89.10 that follows the eighth calendar day. The local agency must 89.11 send a notice of termination because of a late or incomplete 89.12 MFIP-S household report form. 89.13 Subd. 8. [LATE MFIP-S HOUSEHOLD REPORT FORMS.] Paragraphs 89.14 (a) to (d) apply to the reporting requirements in subdivision 7. 89.15 (a) When a caregiver submits an incomplete MFIP-S household 89.16 report form before the last working day of the month on which a 89.17 ten-day notice of termination can be issued, the local agency 89.18 must return the incomplete form on or before the ten-day notice 89.19 deadline or any previously sent ten-day notice of termination is 89.20 invalid. 89.21 (b) When a complete MFIP-S household report form is not 89.22 received by a local agency before the last ten days of the month 89.23 in which the form is due, the local agency must send a notice of 89.24 proposed termination of assistance. When a caregiver submits an 89.25 incomplete form on or after the date a notice of proposed 89.26 termination has been sent, the termination is valid unless the 89.27 caregiver submits a complete form before the end of the month. 89.28 (c) An assistance unit required to submit an MFIP-S 89.29 household report form is considered to have continued its 89.30 application for assistance if a complete MFIP-S household report 89.31 form is received within a calendar month after the month in 89.32 which assistance was received and assistance shall be paid for 89.33 the period beginning with the first day of the month in which 89.34 the report was due. 89.35 (d) A local agency must allow good cause exemptions from 89.36 the reporting requirements under subdivisions 5 and 6 when any 90.1 of the following factors cause a caregiver to fail to provide 90.2 the local agency with a completed MFIP-S household report form 90.3 before the end of the month in which the form is due: 90.4 (1) an employer delays completion of employment 90.5 verification; 90.6 (2) a local agency does not help a caregiver complete the 90.7 MFIP-S household report form when the caregiver asks for help; 90.8 (3) a caregiver does not receive an MFIP-S household report 90.9 form due to mistake on the part of the department or the local 90.10 agency or due to a reported change in address; 90.11 (4) a caregiver is ill, or physically or mentally 90.12 incapacitated; or 90.13 (5) some other circumstance occurs that a caregiver could 90.14 not avoid with reasonable care which prevents the caregiver from 90.15 providing a completed MFIP-S household report form before the 90.16 end of the month in which the form is due. 90.17 Subd. 9. [CHANGES THAT MUST BE REPORTED.] A caregiver must 90.18 report the changes or anticipated changes specified in clauses 90.19 (1) to (16) within ten days of the date they occur, within ten 90.20 days of the date the caregiver learns that the change will 90.21 occur, at the time of the periodic recertification of 90.22 eligibility under section 256J.15, subdivision 5, or within 90.23 eight calendar days of a reporting period as in subdivision 5 or 90.24 6, whichever occurs first. A caregiver must report other 90.25 changes at the time of the periodic recertification of 90.26 eligibility under section 256J.15, subdivision 5, or at the end 90.27 of a reporting period under subdivision 5 or 6, as applicable. 90.28 A caregiver must make these reports in writing or in person to 90.29 the local agency. When a local agency could have reduced or 90.30 terminated assistance for one or more payment months if a delay 90.31 in reporting a change specified under clauses (1) to (16) had 90.32 not occurred, the local agency must determine whether a timely 90.33 notice under section 256J.31, subdivision 4, could have been 90.34 issued on the day that the change occurred. When a timely 90.35 notice could have been issued, each month's overpayment 90.36 subsequent to that notice must be considered a client error 91.1 overpayment under section 256J.23. Changes in circumstances 91.2 which must be reported within ten days must also be reported on 91.3 the MFIP-S household report form for the reporting period in 91.4 which those changes occurred. Within ten days, a caregiver must 91.5 report: 91.6 (1) a change in initial employment; 91.7 (2) a change in initial receipt of unearned income; 91.8 (3) a recurring change in unearned income; 91.9 (4) a nonrecurring change of unearned income that exceeds 91.10 $30; 91.11 (5) the receipt of a lump sum; 91.12 (6) an increase in resources which may cause the assistance 91.13 unit to exceed resource limits; 91.14 (7) a change in the physical or mental status of an 91.15 incapacitated adult if the physical or mental status is the 91.16 basis of exemption from an MFIP-S work and training program; 91.17 (8) a change in employment status; 91.18 (9) a change in household composition, including births, 91.19 returns to and departures from the home of assistance unit 91.20 members and financially responsible persons, or a change in the 91.21 custody of a minor child; 91.22 (10) a change in health insurance coverage; 91.23 (11) the marriage or divorce of an assistance unit member; 91.24 (12) the death of a parent, minor child, or financially 91.25 responsible person; 91.26 (13) a change in address or living quarters of the 91.27 assistance unit; 91.28 (14) the sale, purchase, or other transfer of property; 91.29 (15) a change in school attendance of a custodial parent or 91.30 an employed child; and 91.31 (16) filing a lawsuit, a workers' compensation claim, or a 91.32 monetary claim against a third party. 91.33 Subd. 10. [COOPERATION WITH CHILD SUPPORT 91.34 ENFORCEMENT.] The caregiver of a minor child must cooperate with 91.35 the efforts of the local agency to collect child and spousal 91.36 support according to section 256.741, subdivision 10. A 92.1 caregiver must forward to the local agency all support the 92.2 caregiver receives during the period the assignment of support 92.3 required under section 256.741, subdivision 1, is in effect. 92.4 Support received by a caregiver, and not forwarded to the local 92.5 agency, must be repaid to the child support enforcement unit for 92.6 any month following the date on which initial eligibility is 92.7 determined, except as provided under subdivision 11, paragraph 92.8 (b), clause (4). 92.9 Subd. 11. [REFUSAL TO COOPERATE WITH SUPPORT 92.10 REQUIREMENTS.] Failure by a caregiver to satisfy any of the 92.11 requirements of subdivision 10 constitutes refusal to cooperate, 92.12 and the sanctions under paragraph (b) apply. 92.13 (a) The IV-D agency must determine whether a caregiver has 92.14 refused to cooperate according to section 256.741, subdivision 3. 92.15 (b) Determination by the IV-D agency that a caregiver has 92.16 refused to cooperate shall have the effects listed in clauses (1) 92.17 to (4). 92.18 (1) After adequate notice, the grant of a caregiver who 92.19 refuses to cooperate must be reduced by 25 percent if no other 92.20 sanction is in effect or by an additional ten percent if one 92.21 other sanction is already in effect. 92.22 (2) A caregiver who is not a parent of a minor child in an 92.23 assistance unit may choose to remove that child from the 92.24 assistance unit unless the child is required to be in the 92.25 assistance unit as required by section 256J.17, subdivision 2. 92.26 (3) A parental caregiver who refuses to cooperate is 92.27 ineligible for medical assistance. 92.28 (4) Direct support retained by a caregiver must be counted 92.29 as unearned income when determining the amount of the assistance 92.30 payment. 92.31 Subd. 12. [GOOD CAUSE EXEMPTION FROM COOPERATING WITH 92.32 SUPPORT REQUIREMENTS.] The IV-A or IV-D agency must notify the 92.33 caregiver that the caregiver may claim a good cause exemption 92.34 from cooperating with the requirements in subdivision 10. Good 92.35 cause may be claimed and exemptions determined according to 92.36 section 256.741, subdivisions 4 to 7. 93.1 Subd. 13. [COOPERATION WITH HEALTH CARE BENEFITS.] The 93.2 caregiver of a minor child must cooperate with the local agency 93.3 to identify and provide information to assist the local agency 93.4 in pursuing third-party liability for medical services. 93.5 (a) A caregiver must assign to the department any rights to 93.6 health insurance policy benefits the caregiver has during the 93.7 period of MFIP-S eligibility. 93.8 (b) A caregiver must identify any third party who may be 93.9 liable for care and services available under the medical 93.10 assistance program on behalf of the applicant or participant and 93.11 all other assistance unit members. 93.12 (c) When a participant refuses to assign the rights to the 93.13 department, or when a participant refuses to identify any third 93.14 party who may be liable for care and services, the grant of the 93.15 caregiver must be reduced by 25 percent if no other sanction is 93.16 in effect or by an additional ten percent if one other sanction 93.17 is already in effect. The caregiver is also ineligible for 93.18 medical assistance. 93.19 Sec. 31. [256J.31] [APPLICANT AND PARTICIPANT RIGHTS AND 93.20 LOCAL AGENCY RESPONSIBILITIES.] 93.21 Subdivision 1. [RIGHT TO INFORMATION.] An applicant or 93.22 participant has the right to obtain from the local agency 93.23 information about the benefits, requirements, restrictions, and 93.24 appeal provisions of public assistance programs. 93.25 Subd. 2. [RIGHT TO AUTHORIZED REPRESENTATIVE.] An 93.26 applicant or participant has the right to designate an 93.27 authorized representative to act on the applicant's or 93.28 participant's behalf. An applicant or participant has the right 93.29 to be assisted or represented by an authorized representative in 93.30 eligibility determinations, recertification, conciliation 93.31 conferences, the fair hearing process, and any other contacts 93.32 with the local agency or the department. When a local agency 93.33 determines that it is necessary for a person to assist an 93.34 applicant or participant, the local agency must designate a 93.35 staff member to assist the applicant or participant. Upon a 93.36 request from an applicant or participant, a local agency must 94.1 provide addresses and telephone numbers of organizations that 94.2 provide legal services at low cost or no cost to low-income 94.3 persons. 94.4 Subd. 3. [RIGHT OF APPLICANT TO NOTICE.] A local agency 94.5 must notify an applicant of the disposition of the applicant's 94.6 application. The notice must be in writing and on forms 94.7 prescribed by the commissioner. The local agency must mail the 94.8 notice to the last known mailing address provided by the 94.9 applicant. When an application is denied, the local agency must 94.10 notify the applicant in writing of the reasons for the denial, 94.11 of the right to appeal, and of the right to reapply for 94.12 assistance. 94.13 Subd. 4. [PARTICIPANT'S RIGHT TO NOTICE.] A local agency 94.14 must give a participant written notice of all adverse actions 94.15 affecting the participant including payment reductions, 94.16 suspensions, terminations, and use of protective, vendor, or 94.17 two-party payments. The notice of adverse action must be on a 94.18 form prescribed or approved by the commissioner and must be 94.19 mailed to the last known mailing address provided by the 94.20 participant. The local agency must state on the notice of 94.21 adverse action the action it intends to take, the reasons for 94.22 the action, the participant's right to appeal the action, the 94.23 conditions under which assistance can be continued pending an 94.24 appeal decision, and the related consequences of the action. 94.25 Subd. 5. [MAILING OF NOTICE.] The notice of adverse action 94.26 shall be issued according to paragraphs (a) to (c). 94.27 (a) A local agency shall mail a notice of adverse action at 94.28 least ten days before the effective date of the adverse action, 94.29 except as provided in paragraphs (b) and (c). 94.30 (b) A local agency must mail a notice of adverse action at 94.31 least five days before the effective date of the adverse action 94.32 when the local agency has factual information that requires an 94.33 action to reduce, suspend, or terminate assistance based on 94.34 probable fraud. 94.35 (c) A local agency shall mail a notice of adverse action 94.36 before or on the effective date of the adverse action when: 95.1 (1) the local agency receives the caregiver's signed 95.2 monthly MFIP-S household report form that includes information 95.3 that requires payment reduction, suspension, or termination; 95.4 (2) the local agency is informed of the death of a 95.5 participant or the payee; 95.6 (3) the local agency receives a signed statement from the 95.7 caregiver that assistance is no longer wanted; 95.8 (4) the local agency receives a signed statement from the 95.9 caregiver that provides information that requires the 95.10 termination or reduction of assistance; 95.11 (5) the local agency verifies that a member of the 95.12 assistance unit is absent from the home and does not meet 95.13 temporary absence provisions in section 256J.11, subdivision 4; 95.14 or 95.15 (6) the local agency cannot locate a caregiver's 95.16 whereabouts. 95.17 Subd. 6. [APPEAL RIGHTS.] An applicant, participant, or 95.18 former participant has the right to request a fair hearing when 95.19 aggrieved by an action or inaction of a local agency. A request 95.20 for a fair hearing and rights pending a fair hearing are set as 95.21 specified in section 256J.28. 95.22 Subd. 7. [CASE RECORDS AVAILABLE.] A local agency must 95.23 make financial case records available to the participant or 95.24 former participant as soon as possible but no later than the 95.25 fifth business day following the date of the request. When the 95.26 participant or former participant asks for photocopies of 95.27 material from the financial case record, the local agency must 95.28 provide one copy of each page at no cost. 95.29 Subd. 8. [RIGHT TO MANAGE AFFAIRS.] Except for protective 95.30 payment provisions authorized under section 256J.24, 95.31 participants have the right to manage their own affairs. 95.32 Subd. 9. [RIGHT TO PROTECTION.] Minor caregivers have the 95.33 right to protection. The local agency must refer a minor 95.34 caregiver to the social service unit within 30 days of the date 95.35 the application is approved. The social service unit must 95.36 assist the minor caregiver to develop a social service plan as 96.1 specified in section 256J.27, subdivision 7. 96.2 Subd. 10. [PROTECTION FROM GARNISHMENT.] MFIP-S grants or 96.3 earnings of a caregiver while participation in full or part-time 96.4 employment or training shall be protected from garnishment. 96.5 This protection for earnings shall extend for a period of six 96.6 months from the date of termination from MFIP-S. 96.7 Sec. 32. [256J.32] [SUPPORT FROM PARENTS OF MINOR 96.8 CAREGIVERS LIVING APART.] 96.9 Subdivision 1. [GENERAL PROVISIONS.] A minor parent and 96.10 the minor's dependent child living outside of the home of the 96.11 adult parent must meet the criteria in section 256J.11, 96.12 subdivision 5, to be eligible for assistance in the MFIP-S 96.13 program. A parent who lives outside the home of a minor child 96.14 who is an unemancipated minor caregiver of an assistance unit is 96.15 financially responsible for that minor caregiver unless the 96.16 parent is a recipient of public assistance, SSI, MSA, medical 96.17 assistance, general assistance, or general assistance medical 96.18 care, and a court order does not otherwise provide a support 96.19 obligation. 96.20 Subd. 2. [AMOUNT OF SUPPORT PAYMENT.] The amount of 96.21 support to be paid by a parent, except a parent specified in 96.22 subdivision 4, must be determined according to paragraphs (a) to 96.23 (f). 96.24 (a) A minor caregiver must provide information required by 96.25 the local agency to identify the whereabouts of the minor 96.26 caregiver's absent parent or parents. 96.27 (b) A local agency must notify an absent parent of the 96.28 parent's legal responsibility to support a minor caregiver and 96.29 shall request that the absent parent provide the following: 96.30 (1) the amount of the parent's earned and unearned income 96.31 for the previous tax year; 96.32 (2) the amount of the parent's earned and unearned income 96.33 for the current month; 96.34 (3) the number and names of dependents who are claimed or 96.35 could be claimed by the parent on federal income tax forms; 96.36 (4) the amount of annual medical bills paid by the parent; 97.1 (5) the amount of annual housing costs paid by the parent; 97.2 (6) the costs for utilities and repairs to the home which 97.3 are paid by the parent; and 97.4 (7) the amount of annual educational costs for family 97.5 members paid by the parent. 97.6 (c) When a parent of a minor caregiver does not provide the 97.7 information requested under paragraph (b), the local agency must 97.8 refer the matter to the county attorney. Assistance to the 97.9 minor caregiver must not be denied, delayed, reduced, or ended 97.10 because of the lack of cooperation of the minor caregiver's 97.11 parent. 97.12 (d) When the information requested under paragraph (b) is 97.13 received by a local agency, the local agency must compare the 97.14 parent's income against the scale set forth below using the 97.15 conditions and procedures specified in paragraph (e). 97.16 Size of Family Annual Cost of Living (ACL) 97.17 1 $ 7,466 97.18 2 12,084 97.19 3 17,380 97.20 4 20,774 97.21 5 23,891 97.22 Twenty percent of the ACL for a family of five must be added for 97.23 each additional family member. 97.24 (e) The parent's income is the parent's gross earned income 97.25 plus unearned income, determined by the methods in section 97.26 256J.14. To determine family size, each person claimed or who 97.27 could be claimed by a parent as a dependent on federal income 97.28 tax forms, exclusive of the minor caregiver, must be included. 97.29 A deduction from income must be allowed for the amount that 97.30 medical, educational, and housing costs together exceed 30 97.31 percent of the parent's income. When the amount of income, 97.32 after the allowable deduction, exceeds the annual income level 97.33 in paragraph (d), a parent is liable to pay one-third of the 97.34 excess for the annual support of the minor caregiver. These 97.35 payments must be paid monthly to the minor caregiver or to the 97.36 local agency on behalf of the minor caregiver. 98.1 (f) A local agency must notify the parents of the minor 98.2 caregiver that they are liable for the amount of support 98.3 determined by the local agency as specified in paragraph (e). 98.4 When the support payment is received by the minor caregiver, it 98.5 must be treated as unearned income of the assistance unit. When 98.6 the support payment is not received, or a lesser amount is 98.7 received in any payment month, the local agency must refer the 98.8 matter to the county attorney. 98.9 Subd. 3. [REVIEWS.] A local agency must review financial 98.10 responsibility every 12 months until minor caregivers reach the 98.11 age of 18 or are otherwise emancipated. When a parent reports a 98.12 change in circumstances, the local agency must review the 98.13 required amount of payment within ten calendar days. 98.14 Subd. 4. [PARENTS UNDER COURT ORDER FOR SUPPORT.] A parent 98.15 who is required under an existing court order issued under some 98.16 other authority in state or federal law to pay child support for 98.17 a minor caregiver is subject to the conditions of that order in 98.18 lieu of the requirements and contribution levels in subdivision 98.19 2. 98.20 Sec. 33. [256J.33] [WRONGFULLY OBTAINED ASSISTANCE.] 98.21 Subdivision 1. [APPLICABILITY TO OTHER LAWS.] This section 98.22 outlines procedures that apply to assistance that is wrongfully 98.23 obtained under MFIP-S. The procedures in this section may be 98.24 used in combination with other established civil and criminal 98.25 procedures and law. 98.26 Subd. 2. [RESPONSIBILITY OF LOCAL AGENCY TO ACT.] In 98.27 response to welfare fraud allegations received by a local 98.28 agency, the local agency shall take any or all of the actions in 98.29 paragraphs (a) to (c). 98.30 (a) A local agency must refer cases of suspected welfare 98.31 fraud to the person or unit designated by the county board for 98.32 investigation of welfare fraud. 98.33 (b) A local agency must issue notice under section 256J.31, 98.34 subdivision 4, to reduce or end assistance when the local agency 98.35 receives facts which show that an assistance unit is not 98.36 eligible for assistance or for the amount of assistance 99.1 currently being received. 99.2 (c) A local agency must refer cases of probable welfare 99.3 fraud to the county attorney. 99.4 Subd. 3. [CONTINUED MFIP-S ELIGIBILITY DURING FRAUD 99.5 INVESTIGATION.] A local agency must issue assistance for the 99.6 remaining members of the assistance unit with the exception of 99.7 the person who was found guilty through court action or an 99.8 administrative disqualification hearing to have committed 99.9 welfare fraud in an earlier period. If MFIP-S eligible, the 99.10 local agency must issue assistance to the assistance unit 99.11 currently under fraud investigation, subject to subdivision 2. 99.12 Subd. 4. [RECOUPMENT AND RECOVERY OF WRONGFULLY OBTAINED 99.13 ASSISTANCE.] A local agency must recoup or attempt recovery of 99.14 wrongfully obtained assistance. The amount recouped or 99.15 recovered must not be more than the amount wrongfully obtained 99.16 unless it is based on a court judgment. A local agency may seek 99.17 voluntary repayment or recoup wrongfully obtained assistance 99.18 according to the procedures in section 256J.23, subdivision 3 or 99.19 4, until the full amount of wrongfully obtained assistance is 99.20 repaid. If the local agency is unable to obtain voluntary 99.21 repayment or recoup the assistance according to section 256J.23, 99.22 the local agency must initiate civil court proceedings to 99.23 recover any unpaid balance of the wrongfully obtained assistance. 99.24 Subd. 5. [REPORTING REQUIREMENT.] A local agency shall 99.25 gather and report statistical data required by the commissioner 99.26 on local agency activities to prevent welfare fraud. 99.27 Sec. 34. [256J.34] [RELATIONSHIP TO OTHER PROGRAMS.] 99.28 Subdivision 1. [SOCIAL SERVICES.] The local agency shall 99.29 refer a participant for social services that are offered in the 99.30 county of financial responsibility according to the criteria 99.31 established by that local agency under Minnesota Rules, parts 99.32 9550.0010 to 9550.0092. A payment issued from title XX, child 99.33 welfare funds, or county funds in a payment month must not 99.34 restrict MFIP-S eligibility or reduce the monthly assistance 99.35 payment for that participant. 99.36 Subd. 2. [CONCURRENT ELIGIBILITY, LIMITATIONS.] A local 100.1 agency must not count an applicant or participant as a member of 100.2 more than one assistance unit in a given payment month, except 100.3 as provided in paragraphs (a) to (c). 100.4 (a) An applicant who receives assistance in a state other 100.5 than Minnesota may be eligible in the first month of application 100.6 at MFIP-S payment standards. An assistance payment from another 100.7 state must be the last payment received from that state and is 100.8 considered unearned income when determining the assistance 100.9 payment issued under MFIP-S. 100.10 (b) A participant who is a member of an assistance unit in 100.11 Minnesota is eligible to be included in a second assistance unit 100.12 in the first full month that the participant lives with a second 100.13 assistance unit. 100.14 (c) An applicant whose needs are met through foster care 100.15 under title IV-E for the first part of an application month is 100.16 eligible to receive assistance for the remaining part of the 100.17 month in which the applicant returns home. Title IV-E payments 100.18 and assistance payments must be considered prorated payments 100.19 rather than a duplication of MFIP-S need. 100.20 Subd. 3. [EMERGENCY ASSISTANCE, ASSISTANCE UNIT WITH A 100.21 MINOR CHILD.] An MFIP-S assistance unit with a minor child or a 100.22 pregnant woman without a minor child is eligible for emergency 100.23 assistance when the assistance unit meets the requirements in 100.24 section 256J.37, subdivision 2. 100.25 Subd. 4. [MEDICAL ASSISTANCE.] Medical assistance 100.26 eligibility for MFIP-S will be determined as described in 100.27 chapter 256B. 100.28 Sec. 35. [256J.35] [COUNTY OF RESPONSIBILITY POLICIES.] 100.29 Subdivision 1. [COUNTY OF FINANCIAL RESPONSIBILITY.] The 100.30 county of financial responsibility is the county in which a 100.31 minor child lives on the date the application is signed, unless 100.32 subdivision 4 applies. When more than one county is financially 100.33 responsible for the members of an assistance unit, financial 100.34 responsibility must be assigned to a single county beginning the 100.35 first day of the calendar month after the assistance unit 100.36 members are required to be in a single assistance unit. 101.1 Financial responsibility must be assigned to the county that was 101.2 initially responsible for the assistance unit member with the 101.3 earliest date of application. The county in which the 101.4 assistance unit is currently residing becomes financially 101.5 responsible for the entire assistance unit beginning two full 101.6 calendar months after the month in which financial 101.7 responsibility was consolidated in one county. 101.8 Subd. 2. [CHANGE IN RESIDENCE.] (a) When an assistance 101.9 unit moves from one county to another and continues to receive 101.10 assistance, the new county of residence becomes the county of 101.11 financial responsibility when that assistance unit has lived in 101.12 that county in nonexcluded status for two full calendar months. 101.13 "Nonexcluded status" means the period of residence that is not 101.14 considered excluded time under section 256G.02, subdivision 6. 101.15 When a minor child moves from one county to another to reside 101.16 with a different caregiver, the caregiver in the former county 101.17 is eligible to receive assistance for that child only through 101.18 the last day of the month of the move. The caregiver in the new 101.19 county becomes eligible to receive assistance for the child the 101.20 first day of the month following the move or the date of 101.21 application, whichever is later. 101.22 (b) When an applicant moves from one county to another 101.23 while the application is pending, the county where application 101.24 first occurred is the county of financial responsibility until 101.25 the applicant has lived in the new county for two full calendar 101.26 months, unless the applicant's move is covered under section 101.27 256G.02, subdivision 6. 101.28 Subd. 3. [RESPONSIBILITY FOR INCORRECT ASSISTANCE 101.29 PAYMENTS.] A county of residence, when different from the county 101.30 of financial responsibility, will be charged by the commissioner 101.31 for the value of incorrect assistance payments and medical 101.32 assistance paid to or on behalf of a person who was not eligible 101.33 to receive that amount. Incorrect payments include payments to 101.34 an ineligible person or family resulting from decisions, 101.35 failures to act, miscalculations, or overdue recertification. 101.36 However, financial responsibility does not accrue for a county 102.1 when the recertification is overdue at the time the referral is 102.2 received by the county of residence or when the county of 102.3 financial responsibility does not act on the recommendation of 102.4 the county of residence. When federal or state law requires 102.5 that medical assistance continue after assistance ends, this 102.6 subdivision also governs financial responsibility for the 102.7 extended medical assistance. 102.8 Subd. 4. [EXCLUDED TIME.] When an applicant or participant 102.9 resides in an excluded time facility as described in section 102.10 256G.02, subdivision 6, the county that is financially 102.11 responsible for the applicant or participant is the county in 102.12 which the applicant or participant last resided outside such a 102.13 facility immediately before entering the facility. When an 102.14 applicant or participant has not resided in Minnesota for any 102.15 time other than excluded time as defined in section 256G.02, 102.16 subdivision 6, the county that is financially responsible for 102.17 the applicant or participant is the county in which the 102.18 applicant or participant resides on the date the application is 102.19 signed. 102.20 Sec. 36. [256J.36] [TRANSFER FUNDING.] 102.21 Effective July 1, 1997, all funding related to the child 102.22 care assistance programs under this chapter and chapter 119B, 102.23 are transferred to the commissioner of children, families, and 102.24 learning. 102.25 Sec. 37. [256J.37] [EMERGENCY ASSISTANCE (EA).] 102.26 Subdivision 1. [EMERGENCY FINANCIAL ASSISTANCE.] County 102.27 human service agencies shall grant emergency financial 102.28 assistance to any needy family with a child under the age of 21 102.29 who is or was within six months prior to application living with 102.30 an eligible caregiver relative specified in section 256J.08, 102.31 subdivision 11. County agencies may, but are not required to, 102.32 grant emergency assistance beyond the amount appropriated 102.33 through the funding formula in subdivision 4. 102.34 Subd. 2. [ELIGIBILITY.] Notwithstanding other eligibility 102.35 provisions of this chapter, any family without resources 102.36 immediately available to meet emergency needs identified in 103.1 subdivision 3 shall be eligible for an emergency grant under the 103.2 following conditions: 103.3 (1) The family is without resources immediately available 103.4 to meet emergency needs. 103.5 (2) Assistance is necessary to avoid destitution or provide 103.6 emergency shelter arrangements. 103.7 (3) The family's destitution or need for shelter or 103.8 utilities did not arise because the child or relative caretaker 103.9 refused without good cause to accept employment or training for 103.10 employment. 103.11 (4) Except for ongoing special diets, emergency assistance 103.12 is available to a family during one 30-day period in a 103.13 consecutive 12-month period. 103.14 Subd. 3. [EMERGENCY NEEDS.] Emergency needs are limited to 103.15 the following: 103.16 (a) [RENT.] A county agency may deny assistance to prevent 103.17 eviction from rented or leased shelter of an otherwise eligible 103.18 applicant when the county agency determines that an applicant's 103.19 anticipated income will not cover continued payment for shelter, 103.20 subject to conditions in clauses (1) to (3): 103.21 (1) a county agency must not deny assistance when an 103.22 applicant can document that the applicant is unable to locate 103.23 habitable shelter, unless the local agency can document that one 103.24 or more habitable shelters are available in the community that 103.25 will result in at least a 20 percent reduction in monthly 103.26 expense for shelter and that this shelter will be cost-effective 103.27 for the applicant; 103.28 (2) when no alternative shelter can be identified by either 103.29 the applicant or the county agency, the county agency shall not 103.30 deny assistance because anticipated income will not cover rental 103.31 obligation; and 103.32 (3) when cost-effective alternative shelter is identified, 103.33 the county agency shall issue assistance for moving expenses as 103.34 provided in paragraph (d). 103.35 (b) [MORTGAGE AND CONTRACT FOR DEED ARREARAGES.] A county 103.36 agency shall issue assistance for mortgage or contract for deed 104.1 arrearages on behalf of an otherwise eligible applicant 104.2 according to clauses (1) to (5): 104.3 (1) assistance for arrearages must be issued only when a 104.4 home is owned, occupied, and maintained by the applicant; 104.5 (2) assistance for arrearages must be issued only when no 104.6 subsequent foreclosure action is expected within the 12 months 104.7 following the issuance; 104.8 (3) assistance for arrearages must be issued only when an 104.9 applicant has been refused refinancing through a bank or other 104.10 lending institution and the amount payable, when combined with 104.11 any payments made by the applicant, will be accepted by the 104.12 creditor as full payment of the arrearage; 104.13 (4) costs paid by a family which are counted toward the 104.14 payment requirements in clause (5) are principle and interest 104.15 payments on mortgages or contracts for deed, balloon payments, 104.16 homeowner's insurance payments, manufactured home lot rental 104.17 payments, and tax or special assessment payments related to the 104.18 homestead. Costs which are not counted include closing costs 104.19 related to the sale or purchase of real property; 104.20 (5) which are outstanding at the time of foreclosure, an 104.21 applicant must have paid at least 40 percent of the family's 104.22 gross income toward these costs in the month of application and 104.23 the 11-month period immediately preceding the month of 104.24 application; and 104.25 (6) when an applicant is eligible under clause (5), a local 104.26 agency shall issue assistance up to a maximum of four times the 104.27 MFIP-S transitional standard for a comparable assistance unit. 104.28 (c) [DAMAGE DEPOSITS.] A county agency shall issue 104.29 assistance for damage deposits when necessary to alleviate the 104.30 emergency. 104.31 (d) [MOVING EXPENSES.] A county agency shall issue 104.32 assistance for expenses incurred when a family must move to a 104.33 different shelter according to clauses (1) to (4): 104.34 (1) moving expenses include the cost to transport personal 104.35 property belonging to a family, the cost for utility connection, 104.36 and the cost for securing different shelter; 105.1 (2) moving expenses must be paid only when the county 105.2 agency determines that a move is cost-effective; 105.3 (3) moving expenses must be paid at the request of an 105.4 applicant, but only when destitution or threatened destitution 105.5 exists; and 105.6 (4) moving expenses must be paid when a county agency 105.7 denies assistance to prevent an eviction because the county 105.8 agency has determined that an applicant's anticipated income 105.9 will not cover continued shelter obligation in paragraph (a). 105.10 (e) [HOME REPAIRS.] A county agency shall pay for repairs 105.11 to the roof, foundation, wiring, heating system, chimney, and 105.12 water and sewer system of a home which owned and lived in by an 105.13 applicant and repairs are conditioned by clauses (1) and (2): 105.14 (1) the applicant shall document, and the local agency 105.15 shall verify the need for and method of repair; and 105.16 (2) the payment must be cost-effective in relation to the 105.17 overall condition of the home and in relation to the cost and 105.18 availability of alternative housing. 105.19 (f) [UTILITY COSTS.] Assistance for utility costs must be 105.20 made when an otherwise eligible family has had a termination or 105.21 is threatened with a termination of municipal water and sewer 105.22 service, electric, gas or heating fuel service, or lacks wood 105.23 when that is the heating source, subject to the conditions in 105.24 clauses (1) and (2): 105.25 (1) a county agency must not issue assistance unless the 105.26 county agency receives confirmation from the utility provider 105.27 that assistance combined with payment by the applicant will 105.28 continue or restore the utility; 105.29 (2) a county agency shall not issue assistance for utility 105.30 costs unless a family paid at least eight percent of the 105.31 family's gross income toward utility costs due during the 105.32 utility budget period; and 105.33 (3) clauses (1) and (2) must not be construed to prevent 105.34 the issuance of assistance when a local agency must take 105.35 immediate and temporary action necessary to protect the life or 105.36 health of a child. 106.1 (g) [EMPLOYMENT-RELATED EMERGENCY NEEDS AS DETERMINED BY 106.2 THE COUNTY AGENCY.] The county agency may authorize assistance 106.3 for employment related emergency needs. 106.4 (h) [DISCRETIONARY ITEMS, INCLUDING SPECIAL DIETS.] The 106.5 need for special diets or dietary items must be prescribed by a 106.6 licensed physician. Costs for special diets shall be determined 106.7 as percentages of the allotment for a one-person household under 106.8 the thrifty food plan. The types of diets and the percentages 106.9 of the thrifty food plan that are covered are as follows: 106.10 (1) high protein diet, at least 80 grams daily, 25 percent 106.11 of thrifty food plan; 106.12 (2) controlled protein diet, 40 to 60 grams and requires 106.13 special products, 100 percent of thrifty food plan; 106.14 (3) controlled protein diet, less than 40 grams and 106.15 requires special products, 125 percent of thrifty food plan; 106.16 (4) low cholesterol diet, 25 percent of thrifty food plan; 106.17 (5) high residue diet, 20 percent of thrifty food plan; 106.18 (6) pregnancy and lactation diet, 35 percent of thrifty 106.19 food plan; 106.20 (7) gluten-free diet, 25 percent of thrifty food plan; 106.21 (8) lactose-free diet, 25 percent of thrifty food plan; 106.22 (9) antidumping diet, 15 percent of thrifty food plan; 106.23 (10) hypoglycemic diet, 15 percent of thrifty food plan; or 106.24 (11) ketogenic diet, 25 percent of thrifty food plan. 106.25 (i) [VENDOR PAYMENTS FOR SHELTER OR UTILITY COSTS.] An 106.26 ongoing MFIP-S grant may, at county board option, be in the form 106.27 of vendor payments if application for emergency assistance is 106.28 for shelter or utility costs. 106.29 Subd. 4. [FUNDING FORMULA; EMERGENCY NEEDS GRANT.] (a) The 106.30 commissioner of human services shall distribute emergency 106.31 assistance needs grants to counties for the emergency needs 106.32 specified in subdivision 3. 106.33 (b) Each county shall have allocated from the county 106.34 emergency needs grant appropriation an amount that bears the 106.35 same ratio to the total emergency needs grant as the county's 106.36 fiscal year 1996 average monthly AFDC and MFIP case count bears 107.1 to the 1996 average monthly case count for all counties. 107.2 (c) The commissioner of human services shall review county 107.3 expenditures of emergency needs grant money at the end of the 107.4 fiscal year, and shall reallocate unspent money as follows: 107.5 (1) when the statewide allocation is underspent, counties 107.6 that overspent their allocation will be reallocated money first, 107.7 then all other counties will be reallocated the remaining money 107.8 according to the county's proportion of the statewide caseload; 107.9 and 107.10 (2) when the statewide allocation is overspent, any 107.11 remaining money from underspent counties will be reallocated to 107.12 overspent counties. 107.13 The reallocation shall be in proportion to the county's 107.14 overexpenditures for the year, compared to overexpenditures for 107.15 all counties with overexpenditures. 107.16 Counties which have overspent their allocation at the end 107.17 of the state fiscal year will be required to reimburse the state 107.18 for the amount of their overexpenditure. 107.19 Sec. 38. [256K.01] [WORK FIRST PROGRAM.] 107.20 Subdivision 1. [CITATION.] Sections 256K.01 to 256K.09 may 107.21 be cited as the work first program. 107.22 Subd. 2. [DEFINITIONS.] As used in sections 256K.01 to 107.23 256K.09, the following words have the meanings given them. 107.24 (a) "Applicant" means an individual who has submitted a 107.25 request for assistance and has never received an MFIP-S or 107.26 family general assistance grant through the MAXIS computer 107.27 system as a caretaker, or an applicant whose MFIP-S or family 107.28 general assistance application was denied or benefits were 107.29 terminated due to noncompliance with work first requirements. 107.30 (b) "Application date" means the date any Minnesota county 107.31 agency receives a signed and dated combined application form 107.32 Part I. 107.33 (c) "CAF" means a combined application form on which people 107.34 apply for multiple assistance programs, including: cash 107.35 assistance, refugee cash assistance, Minnesota supplemental aid, 107.36 food stamps, medical assistance, general assistance medical 108.1 care, emergency assistance, emergency medical assistance, and 108.2 emergency general assistance medical care. 108.3 (d) "Caregiver" means a parent or eligible adult, including 108.4 a pregnant woman, who is part of the assistance unit that has 108.5 applied for or is receiving an MFIP-S or family general 108.6 assistance grant. In a two-parent family, both parents are 108.7 caregivers. 108.8 (e) "Child support" means a voluntary or court-ordered 108.9 payment by absent parents in an assistance unit. 108.10 (f) "Commissioner" means the commissioner of human services. 108.11 (g) "Department" means the department of human services. 108.12 (h) "Employability development plan" or "EDP" means a plan 108.13 developed by the applicant, with advice from the employment 108.14 advisor, for the purposes of identifying an employment goal, 108.15 improving work skills through certification or education, 108.16 training or skills recertification, and which addresses barriers 108.17 to employment. 108.18 (i) "EDP status report form" means a program form on which 108.19 deferred participants indicate what has been achieved in the 108.20 participant's employability development plan and the types of 108.21 problems encountered. 108.22 (j) "Employment advisor" means a program staff member who 108.23 is qualified to assist the participant to develop a job search 108.24 or employability development plan, match the participant with 108.25 existing job openings, refer the participant to employers, and 108.26 has an extensive knowledge of employers in the area. 108.27 (k) "Financial specialist" means a program staff member who 108.28 is trained to explain the benefits offered under the program, 108.29 determine eligibility for different assistance programs, and 108.30 broker other resources from employers and the community. 108.31 (l) "Job network" means individuals that a person may 108.32 contact to learn more about particular companies, inquire about 108.33 job leads, or discuss occupational interests and expertise. 108.34 (m) "Job search allowance" means the amount of financial 108.35 assistance needed to support job search. 108.36 (n) "Job search plan" or "JSP" means the specific plan 109.1 developed by the applicant, with advice from the employment 109.2 advisor, to secure a job as soon as possible, and focus the 109.3 scope of the job search process and other activities. 109.4 (o) "JSP status report form" means a program form on which 109.5 participants indicate the number of submitted job applications, 109.6 job interviews held, jobs offered, other outcomes achieved, 109.7 problems encountered, and the total number of hours spent on job 109.8 search per week. 109.9 (p) "Participant" means a recipient who is required to 109.10 participate in the work first program. 109.11 (q) "Program" means the work first program. 109.12 (r) "Provider" means an employment and training agency 109.13 certified by the commissioner of economic security under section 109.14 268.871, subdivision 1. 109.15 (s) "Self-employment" means employment where people work 109.16 for themselves rather than an employer, are responsible for 109.17 their own work schedule, and do not have taxes or FICA withheld 109.18 by an employer. 109.19 (t) "Self-sufficiency agreement" means the agreement 109.20 between the county or its representative and the applicant that 109.21 describes the activities that the applicant must conduct and the 109.22 necessary services and aid to be furnished by the county to 109.23 enable the individual to meet the purpose of either the job 109.24 search plan or employability development plan. 109.25 (u) "Subsidized job" means a job that is partly reimbursed 109.26 by the provider for cost of wages for participants in the 109.27 program. 109.28 Subd. 3. [ESTABLISHING WORK FIRST PROGRAM.] The 109.29 commissioners of human services and economic security may 109.30 develop and establish pilot projects which require applicants 109.31 for aid under MFIP-S under chapter 256J, or family general 109.32 assistance program (FGA) under section 256D.05, subdivision 1, 109.33 clause (15), to meet the requirements of the work first 109.34 program. The purpose of the program is to: 109.35 (1) ensure that the participant is working as early as 109.36 possible; 110.1 (2) promote greater opportunity for economic self-support, 110.2 participation, and mobility in the work force; and 110.3 (3) minimize the risk for long-term welfare dependency. 110.4 Subd. 4. [PROGRAM ADMINISTRATION.] The program must be 110.5 administered in a way that, in addition to the county agency, 110.6 other sectors in the community such as employers from the public 110.7 and private sectors, not-for-profit organizations, educational 110.8 and social service agencies, labor unions, and neighborhood 110.9 associations are involved. 110.10 Subd. 5. [PROGRAM DESIGN.] The program shall meet the 110.11 following principles: 110.12 (1) work is the primary means of economic support; 110.13 (2) the individual's potential is reviewed during the 110.14 application process to determine how to approach the job market 110.15 aggressively; 110.16 (3) public aid such as cash and medical assistance, child 110.17 care, child support assurance, and other cash benefits are used 110.18 to support intensive job search and immediate work; and 110.19 (4) maximum use is made of tax credits to supplement income. 110.20 Subd. 6. [DUTIES OF COMMISSIONER.] In addition to any 110.21 other duties imposed by law, the commissioner shall: 110.22 (1) establish the program according to sections 256K.01 to 110.23 256K.09 and allocate money as appropriate to pilot counties 110.24 participating in the program; 110.25 (2) provide systems development and staff training; 110.26 (3) accept and supervise the disbursement of any funds that 110.27 may be provided from other sources for use in the demonstration 110.28 program; and 110.29 (4) direct a study to safeguard the interests of children. 110.30 Subd. 7. [DUTIES OF COUNTY AGENCY.] The county agency 110.31 shall: 110.32 (1) collaborate with the commissioners of human services 110.33 and economic security and other agencies to develop, implement, 110.34 and evaluate the demonstration of the work first program; 110.35 (2) operate the work first program in partnership with 110.36 private and public employers, local industry councils, labor 111.1 unions, and employment, educational, and social service 111.2 agencies, according to subdivision 4; 111.3 (3) ensure that program components such as client 111.4 orientation, immediate job search, job development, creation of 111.5 temporary public service jobs, job placements, and postplacement 111.6 follow-up are implemented according to the work first program; 111.7 and 111.8 (4) for job assignments under section 256K.05, provide 111.9 written notification to and obtain the written concurrence of 111.10 the appropriate exclusive bargaining representatives with 111.11 respect to job duties covered under collective bargaining 111.12 agreements and ensure that no work assignment under this section 111.13 results in: 111.14 (i) termination, layoff, or reduction of the work hours of 111.15 an employee for the purpose of hiring an individual under this 111.16 section; 111.17 (ii) the hiring of an individual if any other person is on 111.18 layoff from the same or a substantially equivalent job; 111.19 (iii) any infringement of the promotional opportunities of 111.20 any currently employed individual; 111.21 (iv) the impairment of existing contract for services of 111.22 collective bargaining agreements; or 111.23 (v) a participant filling an established unfilled position 111.24 vacancy, except for on-the-job training under this section. 111.25 If there is a dispute between an exclusive bargaining 111.26 representative and a county or public work employer over whether 111.27 or not job duties are covered under a collective bargaining 111.28 agreement, the exclusive bargaining representative, the county, 111.29 or the public works employer may petition the bureau of 111.30 mediation services, who shall determine if the job duties are 111.31 covered by a collective bargaining agreement. 111.32 Subd. 8. [DUTIES OF PARTICIPANT.] To be eligible for an 111.33 MFIP-S or family general assistance benefit, a participant shall 111.34 cooperate with the county agency, the provider, and the 111.35 participant's employer in all aspects of the program. 111.36 Sec. 39. [256K.02] [PROGRAM PARTICIPANTS; PROGRAM 112.1 EXPECTATIONS.] 112.2 All applicants selected for participation are expected to 112.3 meet the requirements under the work first program. Payments 112.4 for rent and utilities up to the MFIP-S or family general 112.5 assistance program benefits to which the assistance unit is 112.6 entitled will be vendor paid for as many months as the applicant 112.7 is eligible or six months, whichever comes first. The residual 112.8 amount after vendor payment, if any, will be paid to the MFIP-S 112.9 or family general assistance recipient, unless it is used as a 112.10 wage subsidy under section 256K.09, subdivision 2. 112.11 Sec. 40. [256K.03] [PROGRAM REQUIREMENTS.] 112.12 Subdivision 1. [NOTIFICATION OF PROGRAM.] Except for the 112.13 provisions in this section, the provisions for the MFIP-S and 112.14 family general assistance application process shall be 112.15 followed. Within two days after receipt of a completed combined 112.16 application form, the county agency must refer to the provider 112.17 the applicant who meets the conditions under section 256K.02, 112.18 and notify the applicant in writing of the program including the 112.19 following provisions: 112.20 (1) notification that, as part of the application process, 112.21 applicants are required to attend orientation, to be followed 112.22 immediately by a job search; 112.23 (2) the program provider, the date, time, and location of 112.24 the scheduled program orientation; 112.25 (3) the procedures for qualifying for and receiving 112.26 benefits under the program; 112.27 (4) the immediate availability of supportive services, 112.28 including, but not limited to, child care, transportation, 112.29 medical assistance, and other work-related aid; and 112.30 (5) the rights, responsibilities, and obligations of 112.31 participants in the program, including, but not limited to, the 112.32 grounds for exemptions and deferrals, the consequences for 112.33 refusing or failing to participate fully, and the appeal process. 112.34 Subd. 2. [PROGRAM ORIENTATION.] The county must give a 112.35 face-to-face orientation regarding the program to the applicant 112.36 within five days after the date of application. The orientation 113.1 must be designed to inform the applicant of: 113.2 (1) the importance of locating and obtaining a job as soon 113.3 as possible; 113.4 (2) benefits to be provided to support work; 113.5 (3) the manner by which benefits shall be paid; 113.6 (4) how other supportive services such as medical 113.7 assistance, child care, transportation, and other work-related 113.8 aid shall be available to support job search and work; 113.9 (5) the consequences for failure without good cause to 113.10 comply with program requirements; and 113.11 (6) the appeal process. 113.12 Subd. 3. [JOB SEARCH PLAN; EMPLOYMENT ADVISOR; FINANCIAL 113.13 SPECIALIST.] At the end of orientation, the provider must assign 113.14 an employment advisor and a financial specialist to the 113.15 applicant. With advice from the employment advisor, the 113.16 applicant must develop a job search plan based on existing job 113.17 markets, prior employment, work experience, and transferable 113.18 work skills, unless exempt under subdivision 5. A job search 113.19 must be planned and conducted for a period of up to eight 113.20 consecutive weeks from the date of application and for at least 113.21 32 hours per week. The types of and target number of job 113.22 openings to be pursued per week must be written in the job 113.23 search plan. The following activities may be included in the 113.24 job search plan: 113.25 (1) motivational counseling; 113.26 (2) job networking or training on how to locate job 113.27 openings; 113.28 (3) development of a personal resume; and 113.29 (4) information on how to conduct job interviews and 113.30 establish a personal job network. 113.31 Following the development of the job search plan or the 113.32 employability development plan under subdivision 8, the 113.33 financial specialist must interview the applicant to determine 113.34 eligibility for and the extent of benefits under sections 113.35 256K.06 and 256K.07 to support the job search or employability 113.36 development plan. The provider must attach to the appropriate 114.1 plan the summary of the necessary enabling services and benefits 114.2 to be furnished by the provider. The provider or its 114.3 representative and the applicant must sign the plan, with its 114.4 attachment, to indicate a self-sufficiency agreement between the 114.5 provider and the participant. 114.6 Subd. 4. [IMMEDIATE JOB SEARCH.] An applicant must be 114.7 required to begin job search within seven days after the date of 114.8 application for at least 32 hours per week for up to eight 114.9 weeks, unless exempt under subdivision 5 or deferred under 114.10 subdivision 8. For an applicant who is working at least 20 114.11 hours per week, job search shall consist of 12 hours per week 114.12 for up to eight weeks. Within the first five days of job 114.13 search, the applicant is required to initiate informational 114.14 contacts with prospective employers, generate additional job 114.15 leads from the job network, review references and experiences 114.16 from previous employment, and carry out the other activities 114.17 under the job search plan developed under subdivision 3. 114.18 Subd. 5. [EXEMPTION CATEGORIES.] The applicant will be 114.19 exempt from the job search requirements and development of a job 114.20 search plan and an employability development plan under 114.21 subdivisions 3, 4, and 8 if the applicant belongs to any of the 114.22 following groups: 114.23 (1) caregivers under age 20 who have not completed a high 114.24 school education and are attending high school on a full-time 114.25 basis; 114.26 (2) individuals who are age 60 or older; 114.27 (3) individuals who are suffering from a professionally 114.28 certified permanent or temporary illness, injury, or incapacity 114.29 which is expected to continue for more than 30 days and which 114.30 prevents the person from obtaining or retaining employment; 114.31 (4) caregivers whose presence in the home is needed because 114.32 of illness or incapacity of another member in the household; 114.33 (5) women who are pregnant, if it has been medically 114.34 verified that the child is expected to be born within the next 114.35 six months; 114.36 (6) caregivers or other caregiver relatives of a child 115.1 under the age of three who personally provide full-time care for 115.2 the child; 115.3 (7) individuals employed at least 30 hours per week; 115.4 (8) individuals for whom participation would require a 115.5 round trip commuting time by available transportation of more 115.6 than two hours, excluding transporting of children for child 115.7 care; 115.8 (9) individuals for whom lack of proficiency in English is 115.9 a barrier to employment, provided such individuals are 115.10 participating in an intensive program which lasts no longer than 115.11 six months and is designed to remedy their language deficiency; 115.12 (10) individuals who, because of advanced age or lack of 115.13 ability, are incapable of gaining proficiency in English, as 115.14 determined by the county social worker, shall continue to be 115.15 exempt under this subdivision and are not subject to the 115.16 requirement that they be participating in a language program; 115.17 (11) individuals under such duress that they are incapable 115.18 of participating in the program, as determined by the county 115.19 social worker; or 115.20 (12) individuals in need of refresher courses for purposes 115.21 of obtaining professional certification or licensure. 115.22 Subd. 6. [COUNTY DUTIES.] The county must act on the 115.23 application within 30 days of the application date. If the 115.24 applicant is not eligible, the application will be denied and 115.25 the county must notify the applicant of the denial in writing. 115.26 An applicant whose application has been denied may be allowed to 115.27 complete the job search plan; however, supportive services will 115.28 not be provided. 115.29 Subd. 7. [JOB SEARCH PLAN STATUS REPORT.] The applicant or 115.30 participant must submit a completed job search plan status 115.31 report form to the employment advisor every two weeks during the 115.32 job search process, with the first completed form due 21 days 115.33 after the date of application. 115.34 Subd. 8. [EMPLOYABILITY DEVELOPMENT PLAN.] At the 115.35 discretion and approval of the employment advisor, the applicant 115.36 may be deferred from the requirement to conduct at least 32 116.1 hours of job search per week for up to eight consecutive weeks, 116.2 if during the development of the job search plan, the applicant 116.3 is determined to: 116.4 (1) not have worked within the past 12 months and not have 116.5 a high school or a general equivalency diploma provided the 116.6 applicant agrees to develop and carry out an employability 116.7 development plan instead of job search, and concurrently work 116.8 for at least 16 hours per week in a temporary public service 116.9 job. The employability development plan must include the 116.10 employment goals and specific outcomes the participant must 116.11 achieve; 116.12 (2) be within six months of completing any post-secondary 116.13 training program, provided that the applicant agrees to develop 116.14 and carry out an employability development plan instead of a job 116.15 search, and concurrently work for a minimum number of hours per 116.16 week in a temporary public service job. The employability 116.17 development plan must include the employment goal and specific 116.18 outcomes that the participant must achieve. The applicant that 116.19 is deferred under this subdivision may choose to work in a job 116.20 other than a public service job for a minimum number of hours 116.21 per week rather than in a temporary public service job. For 116.22 individuals who are participating in an educational program 116.23 under this clause, and who are attending school full time as 116.24 determined by the institution, there is no work requirement. 116.25 For individuals participating in an educational program on a 116.26 part-time basis as determined by the institution, the minimum 116.27 number of hours that a participant must work shall be decreased 116.28 as the participant increases the number of credit hours taken, 116.29 except that the participant shall not be required to work more 116.30 than eight hours per week. 116.31 During vacation periods of one month or more, the 16-hour 116.32 per week minimum work requirement shall apply. The applicant 116.33 may be deferred for up to six months. At the end of the 116.34 deferment period, the participant must develop a job search plan 116.35 and conduct at least 32 hours of job search per week for up to 116.36 eight consecutive weeks, and submit reports as required under 117.1 subdivisions 3 and 4; or 117.2 (3) be in treatment for chemical dependency, be a victim of 117.3 domestic abuse, or be homeless, provided that the applicant 117.4 agrees to develop an employability development plan instead of a 117.5 job search plan, and immediately follow through with the 117.6 activities in the employability development plan. The 117.7 employability development plan must include specific outcomes 117.8 that the applicant must achieve for the duration of the 117.9 employability development plan and activities which are needed 117.10 to address the issues identified. Under this clause, the 117.11 applicant may be deferred for up to eight weeks. 117.12 Subd. 9. [EDP STATUS REPORT.] The participant who is 117.13 deferred from job search under subdivision 8 must submit a 117.14 completed employability development plan status report form to 117.15 the employment advisor every 14 days as long as the participant 117.16 continues to be deferred, with the first completed form due 21 117.17 days after the date of application. 117.18 Subd. 10. [JOB OFFER.] The participant must not refuse any 117.19 job offer, provided that the job is within the participant's 117.20 physical and mental abilities, pays hourly gross wages of not 117.21 less than the applicable state or federal minimum wage, and 117.22 meets health and safety standards set by federal, state, and 117.23 local agencies. If a job is offered, the participant must 117.24 inform the provider immediately to redetermine eligibility for 117.25 and extent of benefits and services to support work. To enhance 117.26 job retention, the provider may provide services such as 117.27 motivational counseling or on-site problem solving for up to six 117.28 months. The participant who has completed at least six months 117.29 of work in a nonsubsidized job shall be encouraged to 117.30 participate in a training program that would improve the 117.31 participant's ability to obtain a job that pays a higher wage. 117.32 Subd. 11. [DUTY TO REPORT.] The participant must 117.33 immediately inform the provider regarding any changes related to 117.34 the participant's employment status. 117.35 Subd. 12. [REQUIREMENT TO WORK IN A TEMPORARY PUBLIC 117.36 SERVICE JOB.] (a) If after the completion of the maximum eight 118.1 weeks of job search the participant has failed to secure a 118.2 nonsubsidized or a subsidized job for at least 32 hours per 118.3 week, or does not earn a net income from self-employment that is 118.4 equal to at least the MFIP-S or family general assistance 118.5 monthly grant for the household size, whichever is applicable, 118.6 the participant is required to work in a temporary public 118.7 service job for up to 67 working days for (1) at least 32 hours 118.8 per week, or (2) a period equivalent to the result of dividing 118.9 the MFIP-S or family general assistance grant amount which the 118.10 participant would otherwise receive, whichever is applicable, by 118.11 the federal hourly minimum wage, or applicable hourly state 118.12 minimum wage, or the hourly rate of pay for individuals employed 118.13 in the same occupation at the site, whichever is highest. If 118.14 the result is more than 128 hours per month, the participant's 118.15 requirement to work in a temporary public service job shall not 118.16 be more than 32 hours per week. 118.17 (b) Within seven days from the date of application, the 118.18 participant that is deferred under subdivision 8, clause (1) or 118.19 (2), and is participating in an educational program on a 118.20 part-time basis must work in a temporary public service job as 118.21 required under subdivision 8, clause (2). 118.22 (c) The provider shall strive to match the profile of the 118.23 participant with the needs of the employers that are 118.24 participating in a temporary jobs program under section 256K.05. 118.25 Sec. 41. [256K.04] [JOB DEVELOPMENT AND SUBSIDY.] 118.26 Subdivision 1. [JOB INVENTORY.] The provider must develop 118.27 an inventory of job openings including full-time, part-time, 118.28 permanent, temporary or seasonal, and training positions in 118.29 partnership with private and public employers, local industry 118.30 councils, and employment agencies. To the extent possible, the 118.31 inventory must include specific information regarding job 118.32 openings, must be updated on a weekly basis, and must be 118.33 available to all participants on a daily basis. 118.34 Subd. 2. [JOB SUBSIDY.] The county may use all or part of 118.35 the MFIP-S or family general assistance benefit as a subsidy to 118.36 employers for the purpose of providing work experience or 119.1 training to the participant who has completed the job search 119.2 plan, provided that: 119.3 (1) the job to be subsidized is permanent and full time, 119.4 and pays an hourly rate of at least $6 per hour; 119.5 (2) the employer agrees to retain the participant after 119.6 satisfactory completion of the work experience or training 119.7 period; and 119.8 (3) the participant has first tried to secure a 119.9 nonsubsidized job by following the job search plan. 119.10 The subsidy may be available for up to six months. 119.11 Sec. 42. [256K.05] [TEMPORARY JOBS PROGRAM.] 119.12 Subdivision 1. [PROGRAM ESTABLISHED.] The provider must 119.13 establish and operate a program to provide temporary jobs to 119.14 participants who, after eight weeks of job search, are not hired 119.15 into a nonsubsidized or a subsidized job, or are deferred under 119.16 section 256K.03, subdivision 8. The temporary jobs to be 119.17 created under this section must be public service jobs that 119.18 serve a useful public service such as: health, social service, 119.19 environmental protection, education, urban and rural development 119.20 and redevelopment, welfare, recreation, public facilities, 119.21 public safety, community service, services to the aged or 119.22 disabled citizens, and child care. 119.23 Subd. 2. [ASSIGNMENT TO TEMPORARY PUBLIC SERVICE 119.24 JOBS.] The provider must assign the participant who (1) is 119.25 within completion of the required eight weeks of job search and 119.26 has failed to secure a nonsubsidized or a subsidized job for at 119.27 least 32 hours per week, or (2) does not earn a net income from 119.28 self-employment that is equal to at least the MFIP-S or family 119.29 general assistance monthly grant for the household size, 119.30 whichever is applicable, to a temporary public service job. The 119.31 assignment must be made seven days before the end of the job 119.32 search and be based on section 256K.03, subdivision 12. The 119.33 participant that is deferred under section 256K.03, subdivision 119.34 8, will be assigned by the provider to a temporary public 119.35 service job within seven days after the application. 119.36 Subd. 3. [PARTICIPANT'S STATUS.] The participant who is 120.1 working in a temporary public service job under this section is 120.2 not considered an employee for the purposes of unemployment 120.3 insurance compensation, retirement, or civil service laws, and 120.4 shall not perform work ordinarily performed by a public employee. 120.5 Subd. 4. [CONTINUOUS JOB SEARCH REQUIREMENT.] At the 120.6 discretion of the provider, the participant who is working in a 120.7 temporary public service job under section 256K.03, subdivision 120.8 13, may be required to continue to look for a job for up to 120.9 eight hours per week in addition to working, or may be required 120.10 to look for a job in lieu of work in the temporary public 120.11 service job. 120.12 Subd. 5. [EXCUSED ABSENCES.] The participant who is 120.13 working in a temporary public service job may be allowed excused 120.14 absences from the assigned temporary job site up to eight hours 120.15 per month. For purposes of this subdivision, "excused absence" 120.16 means absence due to temporary illness or injury of the 120.17 caregiver or a member of the caregiver's family, the 120.18 unavailability of licensed child care or unavailability of 120.19 transportation needed to go to and from the work site, a job 120.20 interview, or a nonmedical emergency. For purposes of this 120.21 subdivision, "emergency" means a sudden, unexpected occurrence 120.22 or situation of a serious or urgent nature that requires action. 120.23 Subd. 6. [MOVE TO A DIFFERENT COUNTY.] If the applicant or 120.24 recipient who is required to participate in the work first 120.25 program moves to a different county in Minnesota, the benefits 120.26 and enabling services agreed upon in the self-sufficiency 120.27 agreement shall be provided by the pilot county where the 120.28 applicant or recipient originated, provided the move was part of 120.29 the job search or employability development plan. If the 120.30 applicant or recipient is moving to a different county for 120.31 failure to comply with the requirements of the work first 120.32 program, the applicant or recipient will not be eligible for 120.33 MFIP-S or family general assistance in Minnesota for at least 120.34 six months from the date of the move. 120.35 Sec. 43. [256K.06] [TRANSITIONAL BENEFITS TO SUPPORT WORK; 120.36 RENT AND UTILITIES VENDOR PAYMENT.] 121.1 Payments for rent and utilities up to the amount of MFIP-S 121.2 or family general assistance benefits to which the assistance 121.3 unit is entitled shall be provided in the form of vendor 121.4 payments for as many months as the applicant is eligible or six 121.5 months, whichever comes first. The residual amount after vendor 121.6 payment, if any, will be paid to the MFIP-S or family general 121.7 assistance recipient, unless it is used as a wage subsidy under 121.8 section 256K.09, subdivision 2. This provision shall apply to 121.9 all applicants including those meeting the exemption categories 121.10 under section 256K.03, subdivision 5, or deferral categories 121.11 under section 256K.03, subdivision 8. To the extent needed, a 121.12 job search allowance shall be provided for up to eight weeks to 121.13 cover expenses related to the job search. Before the job search 121.14 allowance is issued, it must be approved by the employment 121.15 advisor and financial specialist, and clearly described in the 121.16 job search plan. 121.17 Sec. 44. [256K.07] [ELIGIBILITY FOR FOOD STAMPS, MEDICAL 121.18 ASSISTANCE, AND CHILD CARE.] 121.19 The participant shall be treated as an MFIP-S or family 121.20 general assistance recipient for food stamps, medical 121.21 assistance, and child care eligibility purposes. The 121.22 participant who leaves the program as a result of increased 121.23 earnings from employment shall be eligible for transitional 121.24 medical assistance and child care without regard to MFIP-S 121.25 receipt in three of the six months preceding ineligibility. 121.26 Sec. 45. [256K.08] [SANCTIONS AND APPEAL PROCESS.] 121.27 Subdivision 1. [GOOD CAUSE.] (a) For purposes of this 121.28 subdivision, "good cause" means absence due to temporary illness 121.29 or injury of the participant or a member of the participant's 121.30 family, the unavailability of licensed child care or 121.31 unavailability of transportation needed to attend orientation or 121.32 conduct job search, or a nonmedical emergency as defined under 121.33 section 256K.05, subdivision 5. 121.34 (b) The applicant who is required, but fails, without good 121.35 cause, to participate in orientation, complete the job search 121.36 plan or employability development plan, and comply with the job 122.1 search requirements under section 256K.03, prior to being 122.2 eligible for MFIP-S or family general assistance shall be denied 122.3 MFIP-S or family general assistance benefits. The applicant 122.4 will not be eligible for MFIP-S or family general assistance 122.5 benefits in Minnesota for at least six months. 122.6 (c) If, after receiving a written warning from the county, 122.7 the participant fails, without good cause, to conduct at least 122.8 32 hours of job search per week in any given two-week period, 122.9 the participant will be immediately required to work for at 122.10 least 16 hours per week in a temporary public service job. The 122.11 required 32 hours per week of job search will be reduced to 16 122.12 hours. 122.13 (d) If the participant who is deferred under section 122.14 256K.03, subdivision 8, fails to comply with the activities 122.15 described in the employability development plan, the participant 122.16 will lose the deferment status, provided that the participant 122.17 has received at least two written warnings from the provider. 122.18 (e) If the participant refuses to work in a temporary 122.19 public service job, or is terminated from a temporary public 122.20 service job for failure to work, benefits to the assistance unit 122.21 shall be terminated and the participant shall not be eligible 122.22 for aid under the MFIP-S or family general assistance program 122.23 for at least six months from the date of refusal or 122.24 termination. If the participant, before completing at least 122.25 four consecutive months of employment, voluntarily quits or is 122.26 terminated from a nonsubsidized or a subsidized job, the 122.27 participant shall immediately be assigned to work in a temporary 122.28 public service job for at least 32 hours per week for up to 67 122.29 working days unless the participant is hired or rehired into a 122.30 nonsubsidized or subsidized job. 122.31 Subd. 2. [NOTICE OF SANCTIONS.] If the county determines 122.32 that the participant has failed or refused without good cause, 122.33 as defined in subdivision 1, to cooperate with the program 122.34 requirements, the county shall inform the participant in writing 122.35 of its intent to impose an applicable sanction listed under 122.36 subdivision 1 and the opportunity to have a conciliation 123.1 conference upon request and within five days of the notice 123.2 before a sanction is imposed. 123.3 Sec. 46. [256K.09] [FUNDING.] 123.4 Subdivision 1. [LEVERAGING GRANT AMOUNT TO SECURE OTHER 123.5 FUNDS.] The county agency or the provider, in cooperation with 123.6 the department, may leverage the grant amount to secure other 123.7 funds from employers, foundations, and the community for the 123.8 purpose of developing additional components to benefit children 123.9 and improve the program. 123.10 Subd. 2. [EMPLOYER REIMBURSEMENT.] The employer shall be 123.11 reimbursed for wages paid to participants under section 256K.05, 123.12 subdivision 2. 123.13 Sec. 47. [TRANSFER FUNDING.] 123.14 Effective July 1, 1997, all funding related to the child 123.15 care assistance programs under Minnesota Statutes, section 123.16 256.035, subdivision 8, is transferred to the commissioner of 123.17 children, families, and learning. 123.18 Sec. 48. [REPEALER.] 123.19 Minnesota Statutes 1996, sections 256.12, subdivisions 9, 123.20 10, 14, 15, 20, 21, 22, and 23; 256.72; 256.73; 256.7341; 123.21 256.7351; 256.7352; 256.7353; 256.7354; 256.7355; 256.7356; 123.22 256.7357; 256.7358; 256.7359; 256.736; 256.7365; 256.7366; 123.23 256.737; 256.738; 256.7381; 256.7382; 256.7383; 256.7384; 123.24 256.7385; 256.7386; 256.7387; 256.7388; 256.739; 256.74, 123.25 subdivisions 1, 1a, 1b, 2, and 6; 256.745; 256.75; 256.76; 123.26 256.78; 256.80; 256.81; 256.82; 256.84; 256.85; 256.86; 256.863; 123.27 256.871; and 256.879, are repealed. 123.28 Sec. 49. [EFFECTIVE DATES.] 123.29 Sections 1, subdivisions 1, 3, 4, and 6; 8, subdivisions 1 123.30 to 77 and 79 to 99; 9; 10; 11, subdivisions 3 to 8; 13; 14, 123.31 subdivisions 1 to 14, paragraph (a); 15 to 24, subdivision 4; 25 123.32 to 30, subdivision 9; 31; 32; 34; and 35 are effective January 123.33 1, 1998. 123.34 ARTICLE 2 123.35 PROGRAM INTEGRITY INITIATIVES 123.36 Section 1. Minnesota Statutes 1996, section 13.46, 124.1 subdivision 2, is amended to read: 124.2 Subd. 2. [GENERAL.] (a) Unless the data is summary data or 124.3 a statute specifically provides a different classification, data 124.4 on individuals collected, maintained, used, or disseminated by 124.5 the welfare system is private data on individuals, and shall not 124.6 be disclosed except: 124.7 (1)pursuantaccording to section 13.05; 124.8 (2)pursuantaccording to court order; 124.9 (3)pursuantaccording to a statute specifically 124.10 authorizing access to the private data; 124.11 (4) to an agent of the welfare system, including a law 124.12 enforcement person, attorney, or investigator acting for it in 124.13 the investigation or prosecution of a criminal or civil 124.14 proceeding relating to the administration of a program; 124.15 (5) to personnel of the welfare system who require the data 124.16 to determine eligibility, amount of assistance, and the need to 124.17 provide services of additional programs to the individual; 124.18 (6) to administer federal funds or programs; 124.19 (7) between personnel of the welfare system working in the 124.20 same program; 124.21 (8) the amounts of cash public assistance and relief paid 124.22 to welfare recipients in this state, including their names, 124.23 social security numbers, income, addresses, and other data as 124.24 required, upon request by the department of revenue to 124.25 administer the property tax refund law, supplemental housing 124.26 allowance, early refund of refundable tax credits, and the 124.27 income tax. "Refundable tax credits" means the dependent care 124.28 credit under section 290.067, the Minnesota working family 124.29 credit under section 290.0671, the property tax refund under 124.30 section 290A.04, and, if the required federal waiver or waivers 124.31 are granted, the federal earned income tax credit under section 124.32 32 of the Internal Revenue Code; 124.33 (9) to the Minnesota department of economic security for 124.34 the purpose of monitoring the eligibility of the data subject 124.35 for reemployment insurance, for any employment or training 124.36 program administered, supervised, or certified by that agency, 125.1 or for the purpose of administering any rehabilitation program, 125.2 whether alone or in conjunction with the welfare system, and to 125.3 verify receipt of energy assistance for the telephone assistance 125.4 plan; 125.5 (10) to appropriate parties in connection with an emergency 125.6 if knowledge of the information is necessary to protect the 125.7 health or safety of the individual or other individuals or 125.8 persons; 125.9 (11) data maintained by residential programs as defined in 125.10 section 245A.02 may be disclosed to the protection and advocacy 125.11 system established in this statepursuantaccording to Part C of 125.12 Public Law Number 98-527 to protect the legal and human rights 125.13 of persons with mental retardation or other related conditions 125.14 who live in residential facilities for these persons if the 125.15 protection and advocacy system receives a complaint by or on 125.16 behalf of that person and the person does not have a legal 125.17 guardian or the state or a designee of the state is the legal 125.18 guardian of the person; 125.19 (12) to the county medical examiner or the county coroner 125.20 for identifying or locating relatives or friends of a deceased 125.21 person; 125.22 (13) data on a child support obligor who makes payments to 125.23 the public agency may be disclosed to the higher education 125.24 services office to the extent necessary to determine eligibility 125.25 under section 136A.121, subdivision 2, clause (5); 125.26 (14) participant social security numbers and names 125.27 collected by the telephone assistance program may be disclosed 125.28 to the department of revenue to conduct an electronic data match 125.29 with the property tax refund database to determine eligibility 125.30 under section 237.70, subdivision 4a; 125.31(15) the current address of a recipient of aid to families125.32with dependent children may be disclosed to law enforcement125.33officers who provide the name and social security number of the125.34recipient and satisfactorily demonstrate that: (i) the125.35recipient is a fugitive felon, including the grounds for this125.36determination; (ii) the location or apprehension of the felon is126.1within the law enforcement officer's official duties; and (iii)126.2the request is made in writing and in the proper exercise of126.3those duties;126.4(16) the current address of a recipient of general126.5assistance, work readiness, or general assistance medical care126.6may be disclosed to probation officers and corrections agents126.7who are supervising the recipient, and to law enforcement126.8officers who are investigating the recipient in connection with126.9a felony level offense;126.10(17) information obtained from food stamp applicant or126.11recipient households may be disclosed to local, state, or126.12federal law enforcement officials, upon their written request,126.13for the purpose of investigating an alleged violation of the126.14food stamp act, in accordance with Code of Federal Regulations,126.15title 7, section 272.1(c);126.16 (15) the current address, social security number, and, if 126.17 available, the photograph of any recipient of the aid to 126.18 families with dependent children program in effect until January 126.19 1, 1998, MFIP-S, general assistance, general assistance medical 126.20 care, Minnesota supplemental aid, work readiness or food stamp 126.21 programs, or any member of a recipient's household, may be 126.22 disclosed to any: 126.23 (i) federal, state, or local law enforcement officer who 126.24 furnishes the name of the client or other household member and 126.25 notifies the agency that (A) the person is either fleeing to 126.26 avoid prosecution, custody, or confinement after prosecution, 126.27 for a crime that is a felony, or is violating a condition of 126.28 probation or parole imposed under federal or state law, or has 126.29 information that is necessary for the officer to conduct an 126.30 official duty related to locating or apprehending such a person; 126.31 (B) locating and apprehending the person is an official duty; 126.32 and (C) the request is being made in the proper exercise of an 126.33 official duty; 126.34 (ii) probation officers and correction agents who are 126.35 supervising the recipient and to law enforcement officers who 126.36 are investigating the recipient or someone listed as being in 127.1 the recipient's household in connection with a felony offense; 127.2 or 127.3 (iii) local, state, or federal law enforcement officials, 127.4 upon their written request, for the purpose of investigating an 127.5 alleged violation of the Food Stamp Act, according to Code of 127.6 Federal Regulations, title 7, section 272.1(c); 127.7(18)(16) data on a child support obligor who is in arrears 127.8 may be disclosed for purposes of publishing the datapursuant127.9 according to section 518.575; 127.10(19)(17) data on child support payments made by a child 127.11 support obligor may be disclosed to the obligee; 127.12(20)(18) data in the work reporting system may be 127.13 disclosed under section 256.998, subdivision 7; 127.14(21)(19) to the department of children, families, and 127.15 learning for the purpose of matching department of children, 127.16 families, and learning student data with public assistance data 127.17 to determine students eligible for free and reduced price meals, 127.18 meal supplements, and free milkpursuantaccording to United 127.19 States Code, title 42, sections 1758, 1761, 1766, 1766a, 1772, 127.20 and 1773; to produce accurate numbers of students receiving aid 127.21 to families with dependent children in effect until January 1, 127.22 1998, as required by section 124.175; and to allocate federal 127.23 and state funds that are distributed based on income of the 127.24 student's family; or 127.25(22)(20) the current address and telephone number of 127.26 program recipients and emergency contacts may be released to the 127.27 commissioner of health or a local board of health as defined in 127.28 section 145A.02, subdivision 2, when the commissioner or local 127.29 board of health has reason to believe that a program recipient 127.30 is a disease case, carrier, suspect case, or at risk of illness, 127.31 and the data are necessary to locate the person. 127.32 (b) Information on persons who have been treated for drug 127.33 or alcohol abuse may only be disclosedin accordance with127.34 according to the requirements of Code of Federal Regulations, 127.35 title 42, sections 2.1 to 2.67. 127.36 (c) Data provided to law enforcement agencies under 128.1 paragraph (a), clause (15),(16), or (17),or paragraph (b), are 128.2 investigative data and are confidential or protected nonpublic 128.3 while the investigation is active. The data are private after 128.4 the investigation becomes inactive under section 13.82, 128.5 subdivision 5, paragraph (a) or (b). 128.6 (d) Mental health data shall be treated as provided in 128.7 subdivisions 7, 8, and 9, but is not subject to the access 128.8 provisions of subdivision 10, paragraph (b). 128.9 Sec. 2. Minnesota Statutes 1996, section 13.82, 128.10 subdivision 1, is amended to read: 128.11 Subdivision 1. [APPLICATION.] This section shall apply to 128.12 agencies which carry on a law enforcement function, including 128.13 but not limited to municipal police departments, county sheriff 128.14 departments, fire departments, the bureau of criminal 128.15 apprehension, the Minnesota state patrol, the board of peace 128.16 officer standards and training, the department of commerce, and 128.17 the department of labor and industry fraud investigation unit, 128.18 and the client and provider fraud prevention and investigation 128.19 programs operated or supervised by the department of human 128.20 services. 128.21 Sec. 3. Minnesota Statutes 1996, section 256.01, 128.22 subdivision 2, is amended to read: 128.23 Subd. 2. [SPECIFIC POWERS.] Subject to the provisions of 128.24 section 241.021, subdivision 2, the commissioner of human 128.25 services shall: 128.26 (1) Administer and supervise all forms of public assistance 128.27 provided for by state law and other welfare activities or 128.28 services as are vested in the commissioner. Administration and 128.29 supervision of human services activities or services includes, 128.30 but is not limited to, assuring timely and accurate distribution 128.31 of benefits, completeness of service, and quality program 128.32 management. In addition to administering and supervising human 128.33 services activities vested by law in the department, the 128.34 commissioner shall have the authority to: 128.35 (a) require county agency participation in training and 128.36 technical assistance programs to promote compliance with 129.1 statutes, rules, federal laws, regulations, and policies 129.2 governing human services; 129.3 (b) monitor, on an ongoing basis, the performance of county 129.4 agencies in the operation and administration of human services, 129.5 enforce compliance with statutes, rules, federal laws, 129.6 regulations, and policies governing welfare services and promote 129.7 excellence of administration and program operation; 129.8 (c) develop a quality control program or other monitoring 129.9 program to review county performance and accuracy of benefit 129.10 determinations; 129.11 (d) require county agencies to make an adjustment to the 129.12 public assistance benefits issued to any individual consistent 129.13 with federal law and regulation and state law and rule and to 129.14 issue or recover benefits as appropriate; 129.15 (e) delay or deny payment of all or part of the state and 129.16 federal share of benefits and administrative reimbursement 129.17 according to the procedures set forth in section 256.017; and 129.18 (f) make contracts with and grants to public and private 129.19 agencies and organizations, both profit and nonprofit, and 129.20 individuals, using appropriated funds. 129.21 (2) Inform county agencies, on a timely basis, of changes 129.22 in statute, rule, federal law, regulation, and policy necessary 129.23 to county agency administration of the programs. 129.24 (3) Administer and supervise all child welfare activities; 129.25 promote the enforcement of laws protecting handicapped, 129.26 dependent, neglected and delinquent children, and children born 129.27 to mothers who were not married to the children's fathers at the 129.28 times of the conception nor at the births of the children; 129.29 license and supervise child-caring and child-placing agencies 129.30 and institutions; supervise the care of children in boarding and 129.31 foster homes or in private institutions; and generally perform 129.32 all functions relating to the field of child welfare now vested 129.33 in the state board of control. 129.34 (4) Administer and supervise all noninstitutional service 129.35 to handicapped persons, including those who are visually 129.36 impaired, hearing impaired, or physically impaired or otherwise 130.1 handicapped. The commissioner may provide and contract for the 130.2 care and treatment of qualified indigent children in facilities 130.3 other than those located and available at state hospitals when 130.4 it is not feasible to provide the service in state hospitals. 130.5 (5) Assist and actively cooperate with other departments, 130.6 agencies and institutions, local, state, and federal, by 130.7 performing services in conformity with the purposes of Laws 130.8 1939, chapter 431. 130.9 (6) Act as the agent of and cooperate with the federal 130.10 government in matters of mutual concern relative to and in 130.11 conformity with the provisions of Laws 1939, chapter 431, 130.12 including the administration of any federal funds granted to the 130.13 state to aid in the performance of any functions of the 130.14 commissioner as specified in Laws 1939, chapter 431, and 130.15 including the promulgation of rules making uniformly available 130.16 medical care benefits to all recipients of public assistance, at 130.17 such times as the federal government increases its participation 130.18 in assistance expenditures for medical care to recipients of 130.19 public assistance, the cost thereof to be borne in the same 130.20 proportion as are grants of aid to said recipients. 130.21 (7) Establish and maintain any administrative units 130.22 reasonably necessary for the performance of administrative 130.23 functions common to all divisions of the department. 130.24 (8) Act as designated guardian of both the estate and the 130.25 person of all the wards of the state of Minnesota, whether by 130.26 operation of law or by an order of court, without any further 130.27 act or proceeding whatever, except as to persons committed as 130.28 mentally retarded. 130.29 (9) Act as coordinating referral and informational center 130.30 on requests for service for newly arrived immigrants coming to 130.31 Minnesota. 130.32 (10) The specific enumeration of powers and duties as 130.33 hereinabove set forth shall in no way be construed to be a 130.34 limitation upon the general transfer of powers herein contained. 130.35 (11) Establish county, regional, or statewide schedules of 130.36 maximum fees and charges which may be paid by county agencies 131.1 for medical, dental, surgical, hospital, nursing and nursing 131.2 home care and medicine and medical supplies under all programs 131.3 of medical care provided by the state and for congregate living 131.4 care under the income maintenance programs. 131.5 (12) Have the authority to conduct and administer 131.6 experimental projects to test methods and procedures of 131.7 administering assistance and services to recipients or potential 131.8 recipients of public welfare. To carry out such experimental 131.9 projects, it is further provided that the commissioner of human 131.10 services is authorized to waive the enforcement of existing 131.11 specific statutory program requirements, rules, and standards in 131.12 one or more counties. The order establishing the waiver shall 131.13 provide alternative methods and procedures of administration, 131.14 shall not be in conflict with the basic purposes, coverage, or 131.15 benefits provided by law, and in no event shall the duration of 131.16 a project exceed four years. It is further provided that no 131.17 order establishing an experimental project as authorized by the 131.18 provisions of this section shall become effective until the 131.19 following conditions have been met: 131.20 (a) The proposed comprehensive plan, including estimated 131.21 project costs and the proposed order establishing the waiver, 131.22 shall be filed with the secretary of the senate and chief clerk 131.23 of the house of representatives at least 60 days prior to its 131.24 effective date. 131.25 (b) The secretary of health, education, and welfare of the 131.26 United States has agreed, for the same project, to waive state 131.27 plan requirements relative to statewide uniformity. 131.28 (c) A comprehensive plan, including estimated project 131.29 costs, shall be approved by the legislative advisory commission 131.30 and filed with the commissioner of administration. 131.31 (13)In accordance withAccording to federal requirements, 131.32 establish procedures to be followed by local welfare boards in 131.33 creating citizen advisory committees, including procedures for 131.34 selection of committee members. 131.35 (14) Allocate federal fiscal disallowances or sanctions 131.36 which are based on quality control error rates for the aid to 132.1 families with dependent children in effect until January 1, 132.2 1998, medical assistance, or food stamp program in the following 132.3 manner: 132.4 (a) One-half of the total amount of the disallowance shall 132.5 be borne by the county boards responsible for administering the 132.6 programs. For the medical assistance and AFDC programs in 132.7 effect until January 1, 1998, disallowances shall be shared by 132.8 each county board in the same proportion as that county's 132.9 expenditures for the sanctioned program are to the total of all 132.10 counties' expenditures for the AFDC program in effect until 132.11 January 1, 1998, and medical assistanceprogramsprogram. For 132.12 the food stamp program, sanctions shall be shared by each county 132.13 board, with 50 percent of the sanction being distributed to each 132.14 county in the same proportion as that county's administrative 132.15 costs for food stamps are to the total of all food stamp 132.16 administrative costs for all counties, and 50 percent of the 132.17 sanctions being distributed to each county in the same 132.18 proportion as that county's value of food stamp benefits issued 132.19 are to the total of all benefits issued for all counties. Each 132.20 county shall pay its share of the disallowance to the state of 132.21 Minnesota. When a county fails to pay the amount due hereunder, 132.22 the commissioner may deduct the amount from reimbursement 132.23 otherwise due the county, or the attorney general, upon the 132.24 request of the commissioner, may institute civil action to 132.25 recover the amount due. 132.26 (b) Notwithstanding the provisions of paragraph (a), if the 132.27 disallowance results from knowing noncompliance by one or more 132.28 counties with a specific program instruction, and that knowing 132.29 noncompliance is a matter of official county board record, the 132.30 commissioner may require payment or recover from the county or 132.31 counties, in the manner prescribed in paragraph (a), an amount 132.32 equal to the portion of the total disallowance which resulted 132.33 from the noncompliance, and may distribute the balance of the 132.34 disallowance according to paragraph (a). 132.35 (15) Develop and implement special projects that maximize 132.36 reimbursements and result in the recovery of money to the 133.1 state. For the purpose of recovering state money, the 133.2 commissioner may enter into contracts with third parties. Any 133.3 recoveries that result from projects or contracts entered into 133.4 under this paragraph shall be deposited in the state treasury 133.5 and credited to a special account until the balance in the 133.6 account reaches $1,000,000. When the balance in the account 133.7 exceeds $1,000,000, the excess shall be transferred and credited 133.8 to the general fund. All money in the account is appropriated 133.9 to the commissioner for the purposes of this paragraph. 133.10 (16) Have the authority to make direct payments to 133.11 facilities providing shelter to women and their children 133.12pursuantaccording to section 256D.05, subdivision 3. Upon the 133.13 written request of a shelter facility that has been denied 133.14 payments under section 256D.05, subdivision 3, the commissioner 133.15 shall review all relevant evidence and make a determination 133.16 within 30 days of the request for review regarding issuance of 133.17 direct payments to the shelter facility. Failure to act within 133.18 30 days shall be considered a determination not to issue direct 133.19 payments. 133.20 (17) Have the authority to establish and enforce the 133.21 following county reporting requirements: 133.22 (a) The commissioner shall establish fiscal and statistical 133.23 reporting requirements necessary to account for the expenditure 133.24 of funds allocated to counties for human services programs. 133.25 When establishing financial and statistical reporting 133.26 requirements, the commissioner shall evaluate all reports, in 133.27 consultation with the counties, to determine if the reports can 133.28 be simplified or the number of reports can be reduced. 133.29 (b) The county board shall submit monthly or quarterly 133.30 reports to the department as required by the commissioner. 133.31 Monthly reports are due no later than 15 working days after the 133.32 end of the month. Quarterly reports are due no later than 30 133.33 calendar days after the end of the quarter, unless the 133.34 commissioner determines that the deadline must be shortened to 133.35 20 calendar days to avoid jeopardizing compliance with federal 133.36 deadlines or risking a loss of federal funding. Only reports 134.1 that are complete, legible, and in the required format shall be 134.2 accepted by the commissioner. 134.3 (c) If the required reports are not received by the 134.4 deadlines established in clause (b), the commissioner may delay 134.5 payments and withhold funds from the county board until the next 134.6 reporting period. When the report is needed to account for the 134.7 use of federal funds and the late report results in a reduction 134.8 in federal funding, the commissioner shall withhold from the 134.9 county boards with late reports an amount equal to the reduction 134.10 in federal funding until full federal funding is received. 134.11 (d) A county board that submits reports that are late, 134.12 illegible, incomplete, or not in the required format for two out 134.13 of three consecutive reporting periods is considered 134.14 noncompliant. When a county board is found to be noncompliant, 134.15 the commissioner shall notify the county board of the reason the 134.16 county board is considered noncompliant and request that the 134.17 county board develop a corrective action plan stating how the 134.18 county board plans to correct the problem. The corrective 134.19 action plan must be submitted to the commissioner within 45 days 134.20 after the date the county board received notice of noncompliance. 134.21 (e) The final deadline for fiscal reports or amendments to 134.22 fiscal reports is one year after the date the report was 134.23 originally due. If the commissioner does not receive a report 134.24 by the final deadline, the county board forfeits the funding 134.25 associated with the report for that reporting period and the 134.26 county board must repay any funds associated with the report 134.27 received for that reporting period. 134.28 (f) The commissioner may not delay payments, withhold 134.29 funds, or require repayment under paragraph (c) or (e) if the 134.30 county demonstrates that the commissioner failed to provide 134.31 appropriate forms, guidelines, and technical assistance to 134.32 enable the county to comply with the requirements. If the 134.33 county board disagrees with an action taken by the commissioner 134.34 under paragraph (c) or (e), the county board may appeal the 134.35 action according to sections 14.57 to 14.69. 134.36 (g) Counties subject to withholding of funds under 135.1 paragraph (c) or forfeiture or repayment of funds under 135.2 paragraph (e) shall not reduce or withhold benefits or services 135.3 to clients to cover costs incurred due to actions taken by the 135.4 commissioner under paragraph (c) or (e). 135.5 (18) Allocate federal fiscal disallowances or sanctions for 135.6 audit exceptions when federal fiscal disallowances or sanctions 135.7 are based on a statewide random sample for the foster care 135.8 program under title IV-E of the Social Security Act, United 135.9 States Code, title 42, in direct proportion to each county's 135.10 title IV-E foster care maintenance claim for that period. 135.11 (19) Be responsible for ensuring the detection, prevention, 135.12 investigation, and resolution of fraudulent activities or 135.13 behavior by applicants, recipients, and other participants in 135.14 the human services programs administered by the department. 135.15 (20) Require county agencies to identify overpayments, 135.16 establish claims and utilize all available and cost-beneficial 135.17 methodologies to collect and recover these overpayments in the 135.18 human services programs administered by the department. 135.19 Sec. 4. Minnesota Statutes 1996, section 256.017, 135.20 subdivision 2, is amended to read: 135.21 Subd. 2. [DEFINITIONS.] The following terms have the 135.22 meanings given forthe purposepurposes of this section. 135.23 (a) "Administrative penalty" means an adjustment against 135.24 the county agency's state and federal benefit and federal 135.25 administrative reimbursement when the commissioner determines 135.26 that the county agency is not in compliance with the policies 135.27 and procedures established by the commissioner. 135.28 (b) "Quality control case penalty" means an adjustment 135.29 against the county agency's federal administrative reimbursement 135.30 and state and federal benefit reimbursement when the 135.31 commissioner determines through a quality control review that 135.32 the county agency has made incorrect payments, terminations, or 135.33 denials of benefits as determined by state quality control 135.34 procedures for theaid to families with dependent children135.35 Minnesota family investment program-statewide, food stamp, or 135.36 medical assistance programs, or any other programs for which the 136.1 commissioner has developed a quality control system. Quality 136.2 control case penalties apply only to agency errors as defined by 136.3 state quality control procedures. 136.4 (c) "Quality control" means a review system of a statewide 136.5 random sample of cases, designed to provide data on program 136.6 outcomes and the accuracy with which state and federal policies 136.7 are being applied in issuing benefits and as a fiscal audit to 136.8 ensure the accuracy of expenditures. The quality control system 136.9 is administered by the department. For theaid to families with136.10dependent childrenMinnesota family investment 136.11 program-statewide, food stamp, and medical assistance programs, 136.12 the quality control system is that required by federal 136.13 regulation, or those developed by the commissioner. 136.14 Sec. 5. Minnesota Statutes 1996, section 256.019, is 136.15 amended to read: 136.16 256.019 [RECOVERY OF MONEY; APPORTIONMENT.] 136.17 When an amount is recovered from any source for assistance 136.18 given under the provisions governing public assistance programs 136.19 including aid to families with dependent children, MFIP-S, 136.20 medical care, emergency assistance, general assistance,work136.21readiness,and Minnesota supplemental aid,there shall be paid136.22to the United States the amount due under the terms of the136.23Social Security Act andthe balance must be paid to the United 136.24 States or into the treasury of the state or countyin accordance136.25withaccording to current rates of financial participation; 136.26 except if the recovery is made by a county agency using any 136.27 method other than recoupment, the county may keep one-half of 136.28 the nonfederal share of the recovery. This does not apply to 136.29 recoveries from medical providers or to recoveries begun by the 136.30 department of human services' surveillance and utilization 136.31 review division, state hospital collections unit, and the 136.32 benefit recoveries division or, by the attorney general's 136.33 office, or child support collections. In the food stamp 136.34 program, the nonfederal share of recoveries in the federal tax 136.35 refund offset program (FTROP) only will be divided equally 136.36 between the state agency and the involved county agency. 137.1 Sec. 6. Minnesota Statutes 1996, section 256.045, 137.2 subdivision 3, is amended to read: 137.3 Subd. 3. [STATE AGENCY HEARINGS.] (a) State agency 137.4 hearings are available for the following: (1) any person 137.5 applying for, receiving or having received public assistance, 137.6 medical care, or a program of social services granted by the 137.7 state agency or a county agencyunder sections 252.32, 256.031137.8to 256.036, and 256.72 to 256.879, chapters 256B, 256D, 256E,137.9261,or the federal Food Stamp Act whose application for 137.10 assistance is denied, not acted upon with reasonable promptness, 137.11 or whose assistance is suspended, reduced, terminated, or 137.12 claimed to have been incorrectly paid; (2) any patient or 137.13 relative aggrieved by an order of the commissioner under section 137.14 252.27; (3) a party aggrieved by a ruling of a prepaid health 137.15 plan; (4) any individual or facility determined by a lead agency 137.16 to have maltreated a vulnerable adult under section 626.557 137.17 after they have exercised their right to administrative 137.18 reconsideration under section 626.557; (5) any person whose 137.19 claim for foster care paymentpursuantaccording to a placement 137.20 of the child resulting from a child protection assessment under 137.21 section 626.556 is denied or not acted upon with reasonable 137.22 promptness, regardless of funding source; (6) any person to whom 137.23 a right of appealpursuantaccording to this section is given by 137.24 other provision of law; or (7) an applicant aggrieved by an 137.25 adverse decision to an application for a hardship waiver under 137.26 section 256B.15. The failure to exercise the right to an 137.27 administrative reconsideration shall not be a bar to a hearing 137.28 under this section if federal law provides an individual the 137.29 right to a hearing to dispute a finding of maltreatment. 137.30 Individuals and organizations specified in this section may 137.31 contest the specified action, decision, or final disposition 137.32 before the state agency by submitting a written request for a 137.33 hearing to the state agency within 30 days after receiving 137.34 written notice of the action, decision, or final disposition, or 137.35 within 90 days of such written notice if the applicant, 137.36 recipient, patient, or relative shows good cause why the request 138.1 was not submitted within the 30-day time limit. 138.2 The hearing for an individual or facility under clause (4) 138.3 is the only administrative appeal to the final lead agency 138.4 disposition specifically, including a challenge to the accuracy 138.5 and completeness of data under section 13.04. Hearings 138.6 requested under clause (4) apply only to incidents of 138.7 maltreatment that occur on or after October 1, 1995. Hearings 138.8 requested by nursing assistants in nursing homes alleged to have 138.9 maltreated a resident prior to October 1, 1995, shall be held as 138.10 a contested case proceeding under the provisions of chapter 14. 138.11 For purposes of this section, bargaining unit grievance 138.12 procedures are not an administrative appeal. 138.13 The scope of hearings involving claims to foster care 138.14 payments under clause (5) shall be limited to the issue of 138.15 whether the county is legally responsible for a child's 138.16 placement under court order or voluntary placement agreement 138.17 and, if so, the correct amount of foster care payment to be made 138.18 on the child's behalf and shall not include review of the 138.19 propriety of the county's child protection determination or 138.20 child placement decision. 138.21 (b) Except for a prepaid health plan, a vendor of medical 138.22 care as defined in section 256B.02, subdivision 7, or a vendor 138.23 under contract with a county agency to provide social services 138.24 under section 256E.08, subdivision 4, is not a party and may not 138.25 request a hearing under this section, except if assisting a 138.26 recipient as provided in subdivision 4. 138.27 (c) An applicant or recipient is not entitled to receive 138.28 social services beyond the services included in the amended 138.29 community social services plan developed under section 256E.081, 138.30 subdivision 3, if the county agency has met the requirements in 138.31 section 256E.081. 138.32 Sec. 7. Minnesota Statutes 1996, section 256.046, is 138.33 amended to read: 138.34 256.046 [ADMINISTRATIVE FRAUD DISQUALIFICATION HEARINGS.] 138.35 Subdivision 1. [HEARING AUTHORITY.] A local agency may 138.36 initiate an administrative fraud disqualification hearing for 139.1 individuals accused of wrongfully obtaining assistance or 139.2 intentional program violations in the aid to families with 139.3 dependent children in effect until January 1, 1998, MFIP-S, 139.4 child care, general assistance, family general assistance, 139.5 Minnesota supplemental aid, medical care, or food stamp 139.6 programs. The hearing is subject to the requirements of section 139.7 256.045 and the requirements in Code of Federal Regulations, 139.8 title 7, section 273.16, for the food stamp program and title 139.9 45, section 235.112, as of September 30, 1995, for theaid to139.10families with dependent children programcash grant and medical 139.11 care programs. 139.12 Subd. 2. [COMBINED HEARING.] The referee may combine a 139.13 fair hearing and administrative fraud disqualification hearing 139.14 into a single hearing if the factual issues arise out of the 139.15 same, or related, circumstances and the individual receives 139.16 prior notice that the hearings will be combined. If the 139.17 administrative fraud disqualification hearing and fair hearing 139.18 are combined, the time frames for administrative fraud 139.19 disqualification hearingsset forthspecified in Code of Federal 139.20 Regulations, title 7, section 273.16, and title 45, section 139.21 235.112, as of September 30, 1995, apply. If the individual 139.22 accused of wrongfully obtaining assistance is charged under 139.23 section 256.98 for the same act or acts which are the subject of 139.24 the hearing, the individual may request that the hearing be 139.25 delayed until the criminal charge is decided by the court or 139.26 withdrawn. 139.27 Sec. 8. [256.0471] [OVERPAYMENTS BECOME JUDGMENTS BY 139.28 OPERATION OF LAW.] 139.29 Subdivision 1. [QUALIFYING OVERPAYMENT.] Any overpayment 139.30 for assistance granted under sections 256.031 to 256.0361, 139.31 256.72 to 256.871, and 256H.05; chapters 256B, 256D, 256I, 256J, 139.32 and 256K; and the food stamp program, except agency error 139.33 claims, become a judgment by operation of law 90 days after the 139.34 notice of overpayment is sent. This judgment shall be entitled 139.35 to full faith and credit in this and any other state. 139.36 Subd. 2. [OVERPAYMENTS INCLUDED.] This section is limited 140.1 to overpayments for which notification is issued within the time 140.2 period specified under section 541.05. 140.3 Subd. 3. [NOTIFICATION REQUIREMENTS.] A judgment is only 140.4 obtained after: 140.5 (1) a notice of overpayment has been mailed to the debtor 140.6 at the last known address; and 140.7 (2) the time period under section 256.045, subdivision 3, 140.8 has elapsed without a request for a hearing, or a hearing 140.9 decision has been rendered under section 256.045 or 256.046 140.10 which concludes the existence of an overpayment that meets the 140.11 requirements of this section. 140.12 Subd. 4. [NOTICE OF OVERPAYMENT.] The notice of 140.13 overpayment shall include the amount and cause of the 140.14 overpayment, appeal rights, and an explanation of the 140.15 consequences of the judgment that will be established if an 140.16 appeal is not filed timely or if the administrative hearing 140.17 decision establishes that there is in overpayment which 140.18 qualifies for judgment. 140.19 Subd. 5. [JUDGMENTS ENTERED AND DOCKETED.] A judgment 140.20 shall be entered and docketed under section 548.09 only after 140.21 there has been at least three months that have elapsed since: 140.22 (1) the notice of overpayment; and 140.23 (2) the last time a monthly recoupment was applied to the 140.24 overpayment. 140.25 Subd. 6. [DOCKETING OF OVERPAYMENTS.] On or after the date 140.26 an unpaid overpayment becomes a judgment by operation of law 140.27 under subdivision 1, the agency or public authority may file 140.28 with the court administrator: 140.29 (1) a statement identifying, or a copy of, the overpayment 140.30 notice which provides for an appeal process and requires payment 140.31 of the overpayment; 140.32 (2) an affidavit of default, stating the full name, 140.33 occupation, place of residence, and last known post office 140.34 address of the debtor; the name and post office address of the 140.35 agency or public authority; the date or dates the overpayment 140.36 was incurred; the program that was overpaid; and the total 141.1 amount of the judgment; and 141.2 (3) an affidavit of service of a notice of entry of 141.3 judgment shall be made by first class mail at the debtor's last 141.4 known post office address. Service is completed upon mailing in 141.5 the manner designated. 141.6 Subd. 7. [DOES NOT IMPEDE OTHER METHODS.] Nothing in this 141.7 section shall be construed to impede or restrict alternative 141.8 recovery methods for these overpayments or overpayments which do 141.9 not meet the requirements of this section. 141.10 Sec. 9. Minnesota Statutes 1996, section 256.98, 141.11 subdivision 1, is amended to read: 141.12 Subdivision 1. [WRONGFULLY OBTAINING ASSISTANCE.] A person 141.13 who commits any of the following acts or omissions is guilty of 141.14 theft and shall be sentenced under section 609.52, subdivision 141.15 3, clauses (1) to (5): 141.16 (1) obtains,or attempts to obtain, or aids or abets any 141.17 person to obtain by means of a willfully false statement or 141.18 representation, byintentionalwillful concealment ofaany 141.19 material fact, or by impersonation or other fraudulent device, 141.20 assistance or the continued receipt of assistance, to include 141.21 child care or vouchers produced according to sections 145.891 to 141.22 145.897 and MinnesotaCare services according to sections 141.23 256.9351 to 256.966, to which the person is not entitled or 141.24 assistance greater than that to which the person is entitled, or141.25who; 141.26 (2) knowingly aids or abets in buying or in any way 141.27 disposing of the property of a recipient or applicant of 141.28 assistance without the consent of the county agency with intent 141.29 to defeat the purposes of sections 145.891 to 145.897, 256.12, 141.30 256.031 to 256.0361, 256.72 to 256.871,and256.9351 to 256.966, 141.31 child care, the MFIP-S, chapter 256B, 256D, 256J, or 256K, or 141.32 all of these sectionsis guilty of theft and shall be sentenced141.33pursuant to section 609.52, subdivision 3, clauses (2), (3)(a)141.34and (c), (4), and (5).; or 141.35 (3) knowingly fails to report, within ten days, a change or 141.36 anticipated change in circumstances and continues to receive 142.1 assistance to which the person is not entitled or assistance 142.2 greater than that to which the person is entitled. 142.3 The continued receipt of assistance to which the person is 142.4 not entitled or greater than that to which the person is 142.5 entitled as a result of any of the acts, failure to act, or 142.6 concealment described in this subdivision shall be deemed to be 142.7 continuing offenses from the date that the first act or failure 142.8 to act occurred. 142.9 Sec. 10. Minnesota Statutes 1996, section 256.98, 142.10 subdivision 3, is amended to read: 142.11 Subd. 3. [AMOUNT OF ASSISTANCE INCORRECTLY PAID.] The 142.12 amount of the assistance incorrectly paid under this section is 142.13 thedifference between theamount of assistance actually 142.14 received on the basis of misrepresented or concealed factsand142.15the amount to which the recipient would have been entitled had142.16the specific concealment or misrepresentation not occurred.142.17Unless required by law, rule, or regulation,. No earned income 142.18 disregardsshall not be applied to earnings not reported by the142.19recipient, other reductions in grant amount, or recalculations 142.20 shall be applied in cases involving wrongfully obtained 142.21 assistance. 142.22 Sec. 11. Minnesota Statutes 1996, section 256.98, 142.23 subdivision 4, is amended to read: 142.24 Subd. 4. [RECOVERY OF ASSISTANCE.] The amount of 142.25 assistance determined to have been incorrectly paid is 142.26 recoverable from: 142.27 (1) the recipient or the recipient's estate by the county 142.28 or the state as a debt due the county or the state or bothin142.29proportion to the contribution of each.; and 142.30 (2) any person found to have taken independent action to 142.31 establish eligibility for, conspired with, or aided and abetted, 142.32 any recipient of public assistance found to have been 142.33 incorrectly paid. 142.34 The obligations established under this subdivision shall be 142.35 joint and several and shall extend to all cases involving agency 142.36 error and client error as well as cases involving wrongfully 143.1 obtained assistance. 143.2 Sec. 12. Minnesota Statutes 1996, section 256.98, 143.3 subdivision 8, is amended to read: 143.4 Subd. 8. [DISQUALIFICATION FROM PROGRAM.] Any person found 143.5 to be guilty of wrongfully obtaining assistance by a federal or 143.6 state court or by an administrative hearing determination, or 143.7 waiver thereof, through a disqualification consent agreement, or 143.8 as part of any approved diversion plan under section 401.065, or 143.9 any court ordered stay which carries with it any probationary or 143.10 other conditions, in the aid to families with dependent children 143.11 program in effect until January 1, 1998, the Minnesota family 143.12 assistance program-statewide, the food stamp program, the 143.13 Minnesota family investment plan, child care program, the 143.14 general assistance or family general assistance program, or the 143.15 Minnesota supplemental aid program, or the work readiness143.16programshall be disqualified from that program. The needs of 143.17 that individual shall not be taken into consideration in 143.18 determining the grant level for that assistance unit: 143.19 (1) forsix monthsone year after the first offense; 143.20 (2) for12 monthstwo years after the second offense; and 143.21 (3) permanently after the third or subsequent offense. 143.22 The period of program disqualification shall begin on the 143.23 date stipulated on the advance notice of disqualification 143.24 without possibility of postponement for administrative stay or 143.25 administrative hearing and shall continue through completion 143.26 unless and until the findings upon which the sanctions were 143.27 imposed are reversed by a court of competent jurisdiction. The 143.28 period for which sanctions are imposed is not subject to 143.29 review. The sanctions provided under this subdivision are in 143.30 addition to, and not in substitution for, any other sanctions 143.31 that may be provided for by law for the offense involved. A 143.32 disqualification established through hearing or waiver shall 143.33 result in the disqualification period beginning immediately 143.34 unless the person has become otherwise ineligible for 143.35 assistance. If the person is ineligible for assistance, the 143.36 disqualification period begins when the person again meets the 144.1 eligibility criteria of the program from which they were 144.2 disqualified and makes application for that program. 144.3 Sec. 13. Minnesota Statutes 1996, section 256.983, 144.4 subdivision 1, is amended to read: 144.5 Subdivision 1. [PROGRAMS ESTABLISHED.] Within the limits 144.6 of available appropriations,and to the extent required or144.7authorized by applicable federal regulations,the commissioner 144.8 of human services shall require theestablishmentmaintenance of 144.9 budget neutral fraud prevention investigation programs in the 144.10sevencounties participating in the fraud prevention 144.11 investigationpilotproject established under this section, and144.12in 11 additional Minnesota counties with the largest aid to144.13families with dependent children program caseloads as of July 1,144.141991. If funds are sufficient, the commissioner may also extend 144.15 fraud prevention investigation programs to: (1)other 144.16 countiesthat have welfare fraud control programs already in144.17place based on enhanced funding contracts covering the fraud144.18investigation function; and (2) counties that have the largest144.19AFDC caseloads as of July 1, 1994, and are not currently144.20participating in the fraud prevention investigation pilot144.21project. The pilot project may be expandedprovided the 144.22 expansion is budget neutral to the state. 144.23 Sec. 14. Minnesota Statutes 1996, section 256.983, 144.24 subdivision 4, is amended to read: 144.25 Subd. 4. [FUNDING.] (a)Every involved county agency shall144.26either have in place or obtain an approved contract which meets144.27all federal requirements necessary to obtain enhanced federal144.28funding for its welfare fraud control and fraud prevention144.29investigation programs.County agency reimbursement shall be 144.30 made through the settlement provisions applicable to the aid to 144.31 families with dependent childrenandprogram in effect until 144.32 January 1, 1998, food stampprogramsprogram, Minnesota family 144.33 investment program-statewide, and medical assistance program and 144.34 other federal and state funded programs. 144.35 (b)After allowing an opportunity to establish compliance,144.36 The commissioner willdeny administrative reimbursementmaintain 145.1 program compliance if for any three-month periodduring any145.2grant year, a county agency fails to comply with 145.3 fraud prevention investigation program guidelines, or fails to 145.4 meet the cost-effectiveness standards developed by the 145.5 commissioner. This result is contingent on the commissioner 145.6 providing written notice, including an offer of technical 145.7 assistance, within 30 days of the end of the third or subsequent 145.8 month of noncompliance. The county agency shall be required to 145.9 submit a corrective action plan to the commissioner within 30 145.10 days of receipt of a notice of noncompliance. Failure to submit 145.11 a corrective action plan or, continued deviation from standards 145.12 of more than ten percent after submission of a corrective action 145.13 plan, will result in denial of funding for each subsequent month 145.14 during the grant year or billing the county agency for fraud 145.15 prevention investigation (FPI) service provided by the 145.16 commissioner and reallocation of program grant funds, or 145.17 investigative resources, or both, to other counties. The denial 145.18 of funding shall apply to the general settlement received by the 145.19 county agency on a quarterly basis and shall not reduce the 145.20 grant amount applicable to the FPI project. 145.21 Sec. 15. Minnesota Statutes 1996, section 256.984, 145.22 subdivision 1, is amended to read: 145.23 Subdivision 1. [DECLARATION.] Every application for public 145.24 assistance under this chapter and chapters 256B, 256D, 256J, 145.25 256K, and food stamps under chapter 393 shall be in writing or 145.26 reduced to writing as prescribed by the state agency and shall 145.27 contain the following declaration which shall be signed by the 145.28 applicant: 145.29 "I declare under the penalties of perjury that this 145.30 application has been examined by me and to the best of my 145.31 knowledge is a true and correct statement of every material 145.32 point. I understand that a person convicted of perjury may 145.33 be sentenced to imprisonment of not more than five years or 145.34 to payment of a fine of not more than $10,000, or both." 145.35 Sec. 16. Minnesota Statutes 1996, section 256.986, is 145.36 amended to read: 146.1 256.986 [COUNTY COORDINATION OF FRAUD CONTROL ACTIVITIES.] 146.2 (a) The county agency shall prepare and submit to the 146.3 commissioner of human services byJanuary 1April 30 of each 146.4 state fiscal year a plan to coordinate county duties related to 146.5 the prevention, investigation, and prosecution of fraud in 146.6 public assistance programs.Plans may be submitted on a146.7voluntary basis prior to January 1, 1996.Each county must 146.8 submit its first annual plan prior toJanuary 1, 1997April 30, 146.9 1998. 146.10 (b) Within the limits of appropriations specifically made 146.11 available for this purpose, the commissioner may make grants to 146.12 counties submitting plans under paragraph (a) to implement 146.13 coordination activities. 146.14 Sec. 17. Minnesota Statutes 1996, section 256.9861, 146.15 subdivision 1, is amended to read: 146.16 Subdivision 1. [PROGRAM ESTABLISHED.] Within the limits of 146.17 available state and federal appropriations,and to the extent146.18required or authorized by applicable federal regulations,the 146.19 commissioner of human services shall make funding available to 146.20 county agencies forthe establishment of program integrity146.21reinvestment initiatives. The project shall initially be146.22limited to those county agencies participating in federally146.23funded optional fraud control programs as of January 1,146.241995fraud control efforts and require the maintenance of county 146.25 efforts and financial contribution that were in place during 146.26 fiscal year 1996. 146.27 Sec. 18. Minnesota Statutes 1996, section 256.9861, 146.28 subdivision 2, is amended to read: 146.29 Subd. 2. [COUNTY PROPOSALS.] Each included county shall 146.30 develop and submit annual funding, staffing, and operating grant 146.31 proposals to the commissioner no later than April 30 of each 146.32 year.For the first operating year only, the proposal shall be146.33submitted no later than October 30.Each proposal shall provide 146.34 information on: 146.35 (1) the staffing and funding of the fraud investigation and 146.36 prosecution operations; 147.1 (2) job descriptions for agency fraud control staff; 147.2 (3) contracts covering outside investigative agencies; 147.3 (4) operational methods to integrate the use of fraud 147.4 prevention investigation techniques; and 147.5 (5) implementation and utilization of administrative 147.6 disqualification hearings and diversionsintoby the existing 147.7 county fraud control and prosecution procedures. 147.8 Sec. 19. Minnesota Statutes 1996, section 256.9861, 147.9 subdivision 4, is amended to read: 147.10 Subd. 4. [STANDARDS.] The commissioner shall, after 147.11 consultation with the involved counties, establish standards 147.12 governing the performance levels ofinvolvedcounty 147.13 investigative units based on grant agreementsnegotiatedwith 147.14 theinvolvedcounty agencies. The standards shall take into 147.15 consideration and may include investigative caseloads, grant 147.16 savings levels, the comparison of fraud prevention and 147.17 prosecution directed investigations, utilization levels of 147.18 administrative disqualification hearings, the timely reporting 147.19 and implementation of disqualifications, and the timeliness of 147.20 reports received from prosecutors. 147.21 Sec. 20. Minnesota Statutes 1996, section 256.9861, 147.22 subdivision 5, is amended to read: 147.23 Subd. 5. [FUNDING.] (a)Grant funds are intended to help147.24offset the reduction in federal financial participation to 50147.25percent and may be apportioned to the participating counties147.26whenever feasible, and within the commissioner's discretion, to147.27achieve this goal.State funding shall be made available 147.28 contingent on counties submitting a plan that is approved by the 147.29 department of human services. Failure or delay in obtaining 147.30 that approval shall not, however, eliminate the obligation to 147.31 maintain fraud control efforts at theJanuary 1, 1995June 30, 147.32 1996, level.Additional counties may be added to the project to147.33the extent that funds are subsequently made available. Every147.34involved county must meet all federal requirements necessary to147.35obtain federal funding for its welfare fraud control and147.36prevention programs.County agency reimbursement shall be made 148.1 through the settlement provisions applicable to theAFDC and148.2 MFIP-S, food stamp and medical assistance programs. 148.3 (b) Should a county agency fail to comply with the 148.4 standards set, or fail to meet cost-effectiveness standards 148.5 developed by the commissioner forthree months during any grant148.6yearany three-month period, the commissioner shall deny 148.7 reimbursement or administrative costs, after allowing an 148.8 opportunity to establish compliance. 148.9 (c) Any denial of reimbursement under paragraph (b) is 148.10 contingent on the commissioner providing written notice, 148.11 including an offer of technical assistance, within 30 days of 148.12 the end of the third or subsequent months of noncompliance. The 148.13 county agency shall be required to submit a corrective action 148.14 plan to the commissioner within 30 days of receipt of a notice 148.15 of noncompliance. Failure to submit a corrective action plan or 148.16 continued deviation from standards of more than ten percent 148.17 after submission of corrective action plan, will result in 148.18 denial of funding for each such month during the grant year, or 148.19 billing of the county agency for program integrity reinvestment 148.20 project services provided by the commissioner or reallocation of 148.21 grant funds to other counties. The denial of funding shall 148.22 apply to the general settlement received by the county agency on 148.23 a quarterly basis and shall not reduce the grant amount 148.24 applicable to the program integrity reinvestment project. 148.25 Sec. 21. [256.9863] [ASSISTANCE TRANSACTION CARD; 148.26 PRESUMPTION OF RECEIPT OF BENEFITS.] 148.27 Any person in whose name an assistance transaction card has 148.28 been issued shall be presumed to have received the benefit of 148.29 all transactions involving that card. This presumption applies 148.30 in all situations unless the card in question has been reported 148.31 lost or stolen by the cardholder. This presumption may be 148.32 overcome by a preponderance of evidence indicating that the card 148.33 was neither used by nor with the consent of the cardholder. 148.34 Overcoming this presumption does not create any new or 148.35 additional payment obligation not otherwise established in law, 148.36 rule, or regulation. 149.1 Sec. 22. [256.9864] [REPORTS BY RECIPIENT.] 149.2 (a) An assistance unit with a recent work history or with 149.3 earned income shall report monthly to the county agency on 149.4 income received and other circumstances affecting eligibility or 149.5 assistance amounts. All other assistance units shall report on 149.6 income and other circumstances affecting eligibility and 149.7 assistance amounts at less frequent intervals, as specified by 149.8 the state agency. 149.9 (b) An assistance unit required to submit a report on the 149.10 form designated by the commissioner and within ten days of the 149.11 due date or the date of the significant change, whichever is 149.12 later, or otherwise report significant changes which would 149.13 affect eligibility or assistance amounts, is considered to have 149.14 continued its application for assistance effective the date the 149.15 required report is received by the county agency, if a complete 149.16 report is received within a calendar month in which assistance 149.17 was received, except that no assistance shall be paid for the 149.18 period beginning with the end of the month in which the report 149.19 was due and ending with the date the report was received by the 149.20 county agency. 149.21 Sec. 23. [256.9865] [RECOVERY OF OVERPAYMENTS AND ATM 149.22 ERRORS.] 149.23 Subdivision 1. [OBLIGATION TO RECOVER.] If an amount of 149.24 MFIP-S assistance is paid to a recipient in excess of the 149.25 payment due, it shall be recoverable by the county agency. This 149.26 recovery authority also extends to preexisting claims or newly 149.27 discovered claims established under the AFDC program in effect 149.28 on January 1, 1997. The agency shall give written notice to the 149.29 recipient of its intention to recover the overpayment. County 149.30 agency efforts and financial contributions shall be maintained 149.31 at the level in place during fiscal year 1996. 149.32 Subd. 2. [RECOUPMENT.] When an overpayment occurs, the 149.33 county agency shall recover the overpayment from a current 149.34 recipient by reducing the amount of aid payable to the 149.35 assistance unit of which the recipient is a member for one or 149.36 more monthly assistance payments until the overpayment is 150.1 repaid. All county agencies in the state shall reduce the 150.2 assistance payment by ten percent of the assistance unit's 150.3 standard of need in nonfraud cases and 20 percent where fraud 150.4 has occurred. For recipients receiving benefits via electronic 150.5 benefits transfer, if the overpayment is a result of an 150.6 automated teller machine (ATM) dispensing funds in error to the 150.7 recipient, the agency may recover the ATM error by immediately 150.8 withdrawing funds from the recipient's electronic benefit 150.9 transfer account, up to the amount of the error. In cases where 150.10 there is both an overpayment and underpayment, the county agency 150.11 shall offset one against the other in correcting the payment. 150.12 Subd. 3. [VOLUNTARY REPAYMENTS.] Overpayments may also be 150.13 voluntarily repaid, in part or in full, by the individual, in 150.14 addition to the aid reductions in subdivision 2, to include 150.15 further voluntary reductions in the grant level agreed to in 150.16 writing by the individual, until the total amount of the 150.17 overpayment is repaid. 150.18 Subd. 4. [CLOSED CASE RECOVERIES.] The county agency shall 150.19 make reasonable efforts to recover overpayments to persons no 150.20 longer on assistance according to standards adopted by rule by 150.21 the commissioner of human services. The county agency need not 150.22 attempt to recover overpayments of less than $35 paid to an 150.23 individual no longer on assistance unless the individual has 150.24 been convicted of fraud under section 256.98. 150.25 Sec. 24. [256.9866] [COMMUNITY SERVICE AS A COUNTY 150.26 OBLIGATION.] 150.27 Community service shall be an acceptable sentencing option 150.28 but shall not reduce the state or federal share of any amount to 150.29 be repaid or any subsequent recovery. Any reduction or offset 150.30 of any such amount ordered by a court shall be treated as 150.31 follows: 150.32 (1) any reduction in an overpayment amount, to include the 150.33 amount ordered as restitution, shall not reduce the underlying 150.34 amount established as an overpayment by the state or county 150.35 agency; 150.36 (2) total overpayments shall continue as a debt owed and 151.1 may be recovered by any civil or administrative means otherwise 151.2 available to the state or county agency; and 151.3 (3) any amount ordered to be offset against any overpayment 151.4 shall be deducted from the county share only of any recovery and 151.5 shall be based on the prevailing state minimum wage. To the 151.6 extent that any deduction is in fact made against any state or 151.7 county share, it shall be reimbursed from the county share of 151.8 payments to be made under section 256.025. 151.9 Sec. 25. Minnesota Statutes 1996, section 256B.056, 151.10 subdivision 1a, is amended to read: 151.11 Subd. 1a. [INCOME AND ASSETS GENERALLY.] Unless 151.12 specifically required by state law or rule or federal law or 151.13 regulation, the methodologies used in counting income and assets 151.14 to determine eligibility for medical assistance for persons 151.15 whose eligibility category is based on blindness, disability, or 151.16 age of 65 or more years, the methodologies for the supplemental 151.17 security income program shall be used, except that payments made 151.18pursuantaccording to a court order for the support of children 151.19 shall be excluded from income in an amount not to exceed the 151.20 difference between the applicable income standard used in the 151.21 state's medical assistance program for aged, blind, and disabled 151.22 persons and the applicable income standard used in the state's 151.23 medical assistance program for families with children. 151.24 Exclusion of court-ordered child support payments is subject to 151.25 the condition that if there has been a change in the financial 151.26 circumstances of the person with the legal obligation to pay 151.27 support since the support order was entered, the person with the 151.28 legal obligation to pay support has petitioned for modification 151.29 of the support order. For families and children, which includes 151.30 all other eligibility categories, the methodologies for theaid151.31to families with dependent children programMinnesota family 151.32 investment program-statewide undersection 256.73chapter 256J 151.33 shall be used. Effective upon federal approval, in-kind 151.34 contributions to, and payments made on behalf of, a recipient, 151.35 by an obligor, in satisfaction of or in addition to a temporary 151.36 or permanent order for child support or maintenance, shall be 152.1 considered income to the recipient. For these purposes, a 152.2 "methodology" does not include an asset or income standard, or 152.3 accounting method, or method of determining effective dates. 152.4 Sec. 26. Minnesota Statutes 1996, section 256B.057, 152.5 subdivision 2a, is amended to read: 152.6 Subd. 2a. [NOASSET TEST FOR CHILDREN AND THEIR PARENTS.] 152.7 Eligibility for medical assistance for a person under age 21, 152.8 and the person's parents who are eligible under section 152.9 256B.055, subdivision 3, and who live in the same household as 152.10 the person eligible under age 21, must be determinedwithout152.11regard tobased on the asset standards established in section 152.12 256B.056. 152.13 Sec. 27. Minnesota Statutes 1996, section 256D.09, 152.14 subdivision 6, is amended to read: 152.15 Subd. 6. [RECOVERY OF OVERPAYMENTS.] (a) If an amount of 152.16 general assistance or family general assistance is paid to a 152.17 recipient in excess of the payment due, it shall be recoverable 152.18 by the county agency. The agency shall give written notice to 152.19 the recipient of its intention to recover the overpayment. 152.20 (b) When an overpayment occurs, the county agency shall 152.21 recover the overpayment from a current recipient by reducing the 152.22 amount of aid payable to the assistance unit of which the 152.23 recipient is a member, for one or more monthly assistance 152.24 payments, until the overpayment is repaid. All county agencies 152.25 in the state shall reduce the assistance payment bythreeten 152.26 percent of the assistance unit's standard of need in nonfraud 152.27 cases and 20 percent where fraud has occurred, or the amount of 152.28 the monthly payment, whichever is less,for all overpayments. 152.29whether or not the overpayment is due solely to agency error.152.30The amount of this reduction is ten percent, if the overpayment152.31is due solely to having wrongfully obtained assistance, whether152.32based on:152.33(1) a court order;152.34(2) the finding of an administrative fraud disqualification152.35hearing or the waiver of such a hearing; or152.36(3) a confession or judgment containing an admission of an153.1intentional program violation.153.2 (c) In cases when there is both an overpayment and 153.3 underpayment, the county agency shall offset one against the 153.4 other in correcting the payment. 153.5 (d) Overpayments may also be voluntarily repaid, in part or 153.6 in full, by the individual, in addition to the aid reductions 153.7 provided in this subdivision, to include further voluntary 153.8 reductions in the grant level agreed to in writing by the 153.9 individual, until the total amount of the overpayment is repaid. 153.10 (e) The county agency shall make reasonable efforts to 153.11 recover overpayments to persons no longer on assistance under 153.12 standards adopted in rule by the commissioner of human 153.13 services. The county agency need not attempt to recover 153.14 overpayments of less than $35 paid to an individual no longer on 153.15 assistance if the individual does not receive assistance again 153.16 within three years, unless the individual has been convicted of 153.17 violating section 256.98. 153.18 Sec. 28. Minnesota Statutes 1996, section 270A.03, 153.19 subdivision 5, is amended to read: 153.20 Subd. 5. [DEBT.] "Debt" means a legal obligation of a 153.21 natural person to pay a fixed and certain amount of money, which 153.22 equals or exceeds $25 and which is due and payable to a claimant 153.23 agency. The term includes criminal fines imposed under section 153.24 609.10 or 609.125 and restitution. A debt may arise under a 153.25 contractual or statutory obligation, a court order, or other 153.26 legal obligation, but need not have been reduced to judgment. 153.27 A debtdoes not includeincludes any legal obligation of a 153.28 current recipient of assistance which is based on overpayment of 153.29 an assistance grant. 153.30 A debt does not include any legal obligation to pay a 153.31 claimant agency for medical care, including hospitalization if 153.32 the income of the debtor at the time when the medical care was 153.33 rendered does not exceed the following amount: 153.34 (1) for an unmarried debtor, an income of $6,400 or less; 153.35 (2) for a debtor with one dependent, an income of $8,200 or 153.36 less; 154.1 (3) for a debtor with two dependents, an income of $9,700 154.2 or less; 154.3 (4) for a debtor with three dependents, an income of 154.4 $11,000 or less; 154.5 (5) for a debtor with four dependents, an income of $11,600 154.6 or less; and 154.7 (6) for a debtor with five or more dependents, an income of 154.8 $12,100 or less. 154.9 The income amounts in this subdivision shall be adjusted 154.10 for inflation for debts incurred in calendar years 1991 and 154.11 thereafter. The dollar amount of each income level that applied 154.12 to debts incurred in the prior year shall be increased in the 154.13 same manner as provided in section 290.06, subdivision 2d, for 154.14 the expansion of the tax rate brackets. 154.15 Sec. 29. Minnesota Statutes 1996, section 388.23, 154.16 subdivision 1, is amended to read: 154.17 Subdivision 1. [AUTHORITY.] The county attorney, or any 154.18 deputy or assistant county attorney whom the county attorney 154.19 authorizes in writing, has the authority to subpoena and require 154.20 the production of any records of telephone companies, cellular 154.21 phone companies, paging companies, electric companies, gas 154.22 companies, water utilities, chemical suppliers, hotels and 154.23 motels, pawn shops, airlines, buses, taxis, and other entities 154.24 engaged in the business of transporting people, and freight 154.25 companies, warehousing companies, self-service storage 154.26 facilities, package delivery companies, and other entities 154.27 engaged in the businesses of transport, storage, or delivery, 154.28 and records of the existence of safe deposit box account numbers 154.29 and customer savings and checking account numbers maintained by 154.30 financial institutions and safe deposit companies, insurance 154.31 records relating to the monetary payment or settlement of 154.32 claims, and wage and employment records of an applicant or 154.33 recipient of public assistance who is the subject of a welfare 154.34 fraud investigation relating to eligibility information for 154.35 public assistance programs. Subpoenas may only be issued for 154.36 records that are relevant to an ongoing legitimate law 155.1 enforcement investigation. Administrative subpoenas may only be 155.2 issued in welfare fraud cases if there is probable cause to 155.3 believe a crime has been committed. This provision applies only 155.4 to the records of business entities and does not extend to 155.5 private individuals or their dwellings.Subpoenas may only be155.6served by peace officers as defined by section 626.84,155.7subdivision 1, paragraph (c).155.8 Sec. 30. Minnesota Statutes 1996, section 393.07, 155.9 subdivision 10, is amended to read: 155.10 Subd. 10. [FEDERAL FOOD STAMP PROGRAM AND THE MATERNAL AND 155.11 CHILD NUTRITION ACT.] (a) The local social services agency shall 155.12 establish and administer the food stamp programpursuant155.13 according to rules of the commissioner of human services, the 155.14 supervision of the commissioner as specified in section 256.01, 155.15 and all federal laws and regulations. The commissioner of human 155.16 services shall monitor food stamp program delivery on an ongoing 155.17 basis to ensure that each county complies with federal laws and 155.18 regulations. Program requirements to be monitored include, but 155.19 are not limited to, number of applications, number of approvals, 155.20 number of cases pending, length of time required to process each 155.21 application and deliver benefits, number of applicants eligible 155.22 for expedited issuance, length of time required to process and 155.23 deliver expedited issuance, number of terminations and reasons 155.24 for terminations, client profiles by age, household composition 155.25 and income level and sources, and the use of phone certification 155.26 and home visits. The commissioner shall determine the 155.27 county-by-county and statewide participation rate. 155.28 (b) On July 1 of each year, the commissioner of human 155.29 services shall determine a statewide and county-by-county food 155.30 stamp program participation rate. The commissioner may 155.31 designate a different agency to administer the food stamp 155.32 program in a county if the agency administering the program 155.33 fails to increase the food stamp program participation rate 155.34 among families or eligible individuals, or comply with all 155.35 federal laws and regulations governing the food stamp program. 155.36 The commissioner shall review agency performance annually to 156.1 determine compliance with this paragraph. 156.2 (c) A person who commits any of the following acts has 156.3 violated section 256.98 or 609.821, or both, and is subject to 156.4 both the criminal and civil penalties provided under those 156.5 sections: 156.6 (1) obtains or attempts to obtain, or aids or abets any 156.7 person to obtain by means of awillfully falsewillful statement 156.8 orrepresentationmisrepresentation, or intentional concealment 156.9 of a material fact, food stamps or vouchers issued according to 156.10 sections 145.891 to 145.897 to which the person is not entitled 156.11 or in an amount greater than that to which that person is 156.12 entitled or which specify nutritional supplements to which that 156.13 person is not entitled; or 156.14 (2) presents or causes to be presented, coupons or vouchers 156.15 issued according to sections 145.891 to 145.897 for payment or 156.16 redemption knowing them to have been received, transferred or 156.17 used in a manner contrary to existing state or federal law; or 156.18 (3) willfully uses, possesses, or transfers food stamp 156.19 couponsor, authorization to purchase cards or vouchers issued 156.20 according to sections 145.891 to 145.897 in any manner contrary 156.21 to existing state or federal law, rules, or regulations; or 156.22 (4) buys or sells food stamp coupons, authorization to 156.23 purchase cardsor, other assistance transaction devices, 156.24 vouchers issued according to sections 145.891 to 145.897, or any 156.25 food obtained through the redemption of vouchers issued 156.26 according to sections 145.891 to 145.897 for cash or 156.27 consideration other than eligible food. 156.28 (d) A peace officer or welfare fraud investigator may 156.29 confiscate food stamps, authorization to purchase cards, or 156.30 other assistance transaction devices found in the possession of 156.31 any person who is neither a recipient of the food stamp program 156.32 nor otherwise authorized to possess and use such materials. 156.33 Confiscated property shall be disposed of as the commissioner 156.34 may direct and consistent with state and federal food stamp 156.35 law. The confiscated property must be retained for a period of 156.36 not less than 30 days to allow any affected person to appeal the 157.1 confiscation under section 256.045. 157.2 (e) Food stamp overpayment claims which are due in whole or 157.3 in part to client error shall be established by the county 157.4 agency for a period of six years from the date of any resultant 157.5 overpayment. 157.6 (f) With regard to the federal tax revenue offset program 157.7 only, recovery incentives authorized by the federal food and 157.8 consumer service shall be retained at the rate of 50 percent by 157.9 the state agency and 50 percent by the certifying county agency. 157.10 (g) A peace officer, welfare fraud investigator, federal 157.11 law enforcement official, or the commissioner of health may 157.12 confiscate vouchers found in the possession of any person who is 157.13 neither issued vouchers under sections 145.891 to 145.897, nor 157.14 otherwise authorized to possess and use such vouchers. 157.15 Confiscated property shall be disposed of as the commissioner of 157.16 health may direct and consistent with state and federal law. 157.17 The confiscated property must be retained for a period of not 157.18 less than 30 days. 157.19 Sec. 31. [FUNDING AVAILABILITY.] 157.20 Unexpended funds appropriated for the provision of program 157.21 integrity activities for fiscal year 1998 will also be available 157.22 to the commissioner to fund fraud prevention and control 157.23 initiatives and do not cancel but are available to the 157.24 commissioner for these purposes for fiscal year 1999. 157.25 Unexpended funds may be transferred between the fraud prevention 157.26 investigation program and fraud control programs to promote the 157.27 provisions of sections 256.983 and 256.9861. 157.28 Sec. 32. [EFFECTIVE DATE.] 157.29 Sections 1 to 31 are effective July 1, 1997. 157.30 ARTICLE 3 157.31 ACCESS TO CHILD SUPPORT ENFORCEMENT CENTRAL REGISTRY 157.32 Section 1. Minnesota Statutes 1996, section 13.99, is 157.33 amended by adding a subdivision to read: 157.34 Subd. 100b. [ACCESS TO CHILD SUPPORT ENFORCEMENT CENTRAL 157.35 REGISTRY.] Data on newly hired employees maintained by the 157.36 responsible authority for child support enforcement are governed 158.1 by section 256.998. 158.2 Sec. 2. Minnesota Statutes 1996, section 256.998, is 158.3 amended by adding a subdivision to read: 158.4 Subd. 10. [USE OF WORK REPORTING SYSTEM INFORMATION IN 158.5 DETERMINING ELIGIBILITY FOR PUBLIC ASSISTANCE PROGRAMS.] The 158.6 commissioner of human services is authorized to use information 158.7 from the work reporting system to determine eligibility for 158.8 applicants and recipients of public assistance programs 158.9 administered by the department of human services. Data 158.10 including names, dates of birth, and social security numbers of 158.11 people applying for or receiving public assistance benefits will 158.12 be compared to the work reporting system information to 158.13 determine if applicants or recipients of public assistance are 158.14 employed. County agencies will be notified of discrepancies in 158.15 information obtained from the work reporting system. 158.16 Sec. 3. Minnesota Statutes 1996, section 256.998, is 158.17 amended by adding a subdivision to read: 158.18 Subd. 11. [ACTION ON INFORMATION.] Upon receipt of the 158.19 discrepant information, county agencies will notify clients of 158.20 the information and request verification of employment status 158.21 and earnings. County agencies must attempt to resolve the 158.22 discrepancy within 45 days of receipt of the information. 158.23 Sec. 4. Minnesota Statutes 1996, section 256.998, is 158.24 amended by adding a subdivision to read: 158.25 Subd. 12. [CLIENT NOTIFICATION.] Persons applying for 158.26 public assistance programs administered by the department of 158.27 human services will be notified at the time of application that 158.28 data including their name, date of birth, and social security 158.29 number will be shared with the work reporting system to 158.30 determine possible employment. All current public assistance 158.31 recipients will be notified of this provision prior to its 158.32 implementation. 158.33 Sec. 5. [EFFECTIVE DATE.] 158.34 Sections 1 to 4 are effective July 1, 1997. 158.35 ARTICLE 4 158.36 ASSISTANCE PROGRAM CHANGES 159.1 Section 1. Minnesota Statutes 1996, section 256.031, is 159.2 amended by adding a subdivision to read: 159.3 Subd. 1b. [USE OF STATE AUTHORITY AFTER REPEAL.] For 159.4 purposes of sections 256.031 to 256.0361, and 256.047, the 159.5 provisions of law under Minnesota Statutes 1996, sections 256.72 159.6 to 256.87 and sections 256D.01 to 256D.21, remain in effect 159.7 after repeal. 159.8 Sec. 2. Minnesota Statutes 1996, section 256.031, is 159.9 amended by adding a subdivision to read: 159.10 Subd. 6. [END OF FIELD TRIALS.] Upon agreement with the 159.11 federal government, the field trials of the Minnesota family 159.12 investment plan will end June 30, 1998. Families in the 159.13 comparison group under section 256.031, subdivision 3, paragraph 159.14 (d)(i), receiving aid to families with dependent children under 159.15 sections 256.72 to 256.87 in effect until January 1, 1998, and 159.16 STRIDE services under section 256.736 will continue in those 159.17 programs until June 30, 1998. After June 30, 1998, families 159.18 which cease receiving assistance under the Minnesota family 159.19 investment plan and comparison families who cease receiving 159.20 assistance under AFDC and STRIDE who are eligible for the 159.21 statewide Minnesota family investment plan, medical assistance, 159.22 general assistance medical care, or the food stamp program shall 159.23 be placed with their consent on the programs for which they are 159.24 eligible. 159.25 Sec. 3. Minnesota Statutes 1996, section 256.033, 159.26 subdivision 1, is amended to read: 159.27 Subdivision 1. [ELIGIBILITY CONDITIONS.] (a) A family is 159.28 entitled to assistance under the Minnesota family investment 159.29 plan if the family is assigned to a test group in the evaluation 159.30 as provided in section 256.031, subdivision 3, paragraph (d), 159.31 and: 159.32 (1) the family meets the definition of assistance unit 159.33 under section 256.032, subdivision 1a; 159.34 (2) the family's resources not excluded under subdivision 3 159.35 do not exceed $2,000; 159.36 (3) the family can verify citizenship or lawful resident 160.1 alien status; and 160.2 (4) the family provides or applies for a social security 160.3 number for each member of the family receiving assistance under 160.4 the family investment plan. 160.5 (b) A family is eligible for the family investment plan if 160.6 the net income is less than the transitional standard as defined 160.7 in section 256.032, subdivision 13, for that size and 160.8 composition of family. In determining available net income, the 160.9 provisions in subdivision 2 shall apply. 160.10 (c) Upon application, a family is initially eligible for 160.11 the family investment plan if the family's gross income does not 160.12 exceed the applicable transitional standard of assistance for 160.13 that family as defined under section 256.032, subdivision 13, 160.14 after deducting: 160.15 (1) 18 percent to cover taxes; and 160.16 (2) actual dependent care costs up to the maximum 160.17 disregarded under United States Code, title 42, section 160.18 602(a)(8)(A)(iii); and160.19(3) $50 of child support collected in that month. 160.20 (d) A family can remain eligible for the program if: 160.21 (1) it meets the conditions in subdivision 1a; and 160.22 (2) its income is below the transitional standard in 160.23 section 256.032, subdivision 13, allowing for income exclusions 160.24 in subdivision 2 and after applying the family investment plan 160.25 treatment of earnings under subdivision 1a. 160.26 Sec. 4. Minnesota Statutes 1996, section 256.033, 160.27 subdivision 1a, is amended to read: 160.28 Subd. 1a. [TREATMENT OF INCOME FOR THE PURPOSES OF 160.29 CONTINUED ELIGIBILITY.] To help families during their transition 160.30 from the Minnesota family investment plan to self-sufficiency, 160.31 the following income supports are available: 160.32 (a) The $30 and one-third and $90 disregards allowed under 160.33 section 256.74, subdivision 1, and the 20 percent earned income 160.34 deduction allowed under the federal Food Stamp Act of 1977, as 160.35 amended, are replaced with a single disregard of not less than 160.36 35 percent of gross earned income to cover taxes and other 161.1 work-related expenses and to reward the earning of income. This 161.2 single disregard is available for the entire time a family 161.3 receives assistance through the Minnesota family investment plan. 161.4 (b) The dependent care deduction, as prescribed under 161.5 section 256.74, subdivision 1, and United States Code, title 7, 161.6 section 2014(e), is replaced for families with earned income who 161.7 need assistance with dependent care with an entitlement to a 161.8 dependent care subsidy from money appropriated for the Minnesota 161.9 family investment plan. 161.10 (c) The family wage level, as defined in section 256.032, 161.11 subdivision 8, allows families to supplement earned income with 161.12 assistance received through the Minnesota family investment 161.13 plan. If, after earnings are adjusted according to the 161.14 disregard described in paragraph (a), earnings have raised 161.15 family income to a level equal to or greater than the family 161.16 wage level, the amount of assistance received through the 161.17 Minnesota family investment plan must be reduced. 161.18(d) The first $50 of any timely support payment for a month161.19received by the public agency responsible for child support161.20enforcement shall be paid to the family and disregarded in161.21determining eligibility and the amount of assistance in161.22accordance with United States Code, title 42, sections161.23602(a)(8)(A)(vi) and 657(b)(1). This paragraph applies161.24regardless of whether the caregiver is in transitional status,161.25is exempt from developing or complying with the terms of a161.26family support agreement, or has had a sanction imposed under161.27subdivision 3.161.28 Sec. 5. Minnesota Statutes 1996, section 256.74, 161.29 subdivision 1, is amended to read: 161.30 Subdivision 1. [AMOUNT.] The amount of assistance which 161.31 shall be granted to or on behalf of any dependent child and 161.32 parent or other needy eligible relative caring for the dependent 161.33 child shall be determined by the county agencyin accordance161.34withaccording to rules promulgated by the commissioner and 161.35 shall be sufficient, when added to all other income and support 161.36 available to the child, to provide the child with a reasonable 162.1 subsistence compatible with decency and health. To the extent 162.2 permissible under federal law, an eligible relative caretaker or 162.3 parent shall have the option to include in the assistance unit 162.4 the needs, income, and resources of the following essential 162.5 persons who are not otherwise eligible for AFDC in effect until 162.6 January 1, 1998, because they do not qualify as a caretaker or 162.7 as a dependent child: 162.8 (1) a parent or relative caretaker's spouse and 162.9 stepchildren; or 162.10 (2) blood or legally adopted relatives who are under the 162.11 age of 18 or under the age of 19 years who are regularly 162.12 attending as a full-time student, and are expected to complete 162.13 before or during the month of their 19th birthday, a high school 162.14 or secondary level course of vocational or technical training 162.15 designed to prepare students for gainful employment. The amount 162.16 shall be based on the method of budgeting required in Public Law 162.17 Number 97-35, section 2315, United States Code, title 42, 162.18 section 602, as amended and federal regulations at Code of 162.19 Federal Regulations, title 45, section 233. Nonrecurring lump 162.20 sum income received byan AFDCa family receiving AFDC in effect 162.21 until January 1, 1998, must be budgeted in the normal 162.22 retrospective cycle. When the family's income, after 162.23 application of the applicable disregards, exceeds the need 162.24 standard for the family because of receipt of earned or unearned 162.25 lump sum income, the family will be ineligible for the full 162.26 number of months derived by dividing the sum of the lump sum 162.27 income and other income by the monthly need standard for a 162.28 family of that size. Any income remaining from this calculation 162.29 is income in the first month following the period of 162.30 ineligibility. The first month of ineligibility is the payment 162.31 month that corresponds with the budget month in which the lump 162.32 sum income was received. For purposes of applying the lump sum 162.33 provision, family includes those persons defined in the Code of 162.34 Federal Regulations, title 45, section 233.20(a)(3)(ii)(F). A 162.35 period of ineligibility must be shortened when the standard of 162.36 need increases and the amount the family would have received 163.1 also changes, an amount is documented as stolen, an amount is 163.2 unavailable because a member of the family left the household 163.3 with that amount and has not returned, an amount is paid by the 163.4 family during the period of ineligibility to cover a cost that 163.5 would otherwise qualify for emergency assistance, or the family 163.6 incurs and pays for medical expenses which would have been 163.7 covered by medical assistance if eligibility existed. In making 163.8 its determination the county agency shall disregard the 163.9 following from family income: 163.10 (1) all the earned income of each dependent child applying 163.11 for AFDC in effect until January 1, 1998, if the child is a 163.12 full-time student and all of the earned income of each dependent 163.13 child receiving AFDC in effect until January 1, 1998, who is a 163.14 full-time student or is a part-time student who is not a 163.15 full-time employee. A student is one who is attending a school, 163.16 college, or university, or a course of vocational or technical 163.17 training designed to fit students for gainful employment and 163.18 includes a participant in the Job Corps program under the Job 163.19 Training Partnership Act (JTPA). The county agency shall also 163.20 disregard all income of each dependent child applying for or 163.21 receiving AFDC in effect until January 1, 1998, when the income 163.22 is derived from a program carried out under JTPA, except that 163.23 disregard of earned income may not exceed six months per 163.24 calendar year; 163.25 (2) all educational assistance, except the county agency 163.26 shall count graduate student teaching assistantships, 163.27 fellowships, and other similar paid work as earned income and, 163.28 after allowing deductions for any unmet and necessary 163.29 educational expenses, shall count scholarships or grants awarded 163.30 to graduate students that do not require teaching or research as 163.31 unearned income; 163.32 (3) the first $90 of each individual's earned income. For 163.33 self-employed persons, the expenses directly related to 163.34 producing goods and services and without which the goods and 163.35 services could not be produced shall be disregarded 163.36pursuantaccording to rules promulgated by the commissioner; 164.1 (4) thirty dollars plus one-third of each individual's 164.2 earned income for individuals found otherwise eligible to 164.3 receive aid or who have received aid in one of the four months 164.4 before the month of application. With respect to any month, the 164.5 county welfare agency shall not disregard under this clause any 164.6 earned income of any person who has: (a) reduced earned income 164.7 without good cause within 30 days preceding any month in which 164.8 an assistance payment is made; (b) refused without good cause to 164.9 accept an offer of suitable employment; (c) left employment or 164.10 reduced earnings without good cause and applied for assistance 164.11 so as to be able later to return to employment with the 164.12 advantage of the income disregard; or (d) failed without good 164.13 cause to make a timely report of earned incomein accordance164.14withaccording to rules promulgated by the commissioner of human 164.15 services. Persons who are already employed and who apply for 164.16 assistance shall have their needs computed with full account 164.17 taken of their earned and other income. If earned and other 164.18 income of the family is less than need, as determined on the 164.19 basis of public assistance standards, the county agency shall 164.20 determine the amount of the grant by applying the disregard of 164.21 income provisions. The county agency shall not disregard earned 164.22 income for persons in a family if the total monthly earned and 164.23 other income exceeds their needs, unless for any one of the four 164.24 preceding months their needs were met in whole or in part by a 164.25 grant payment. The disregard of $30 and one-third of earned 164.26 income in this clause shall be applied to the individual's 164.27 income for a period not to exceed four consecutive months. Any 164.28 month in which the individual loses this disregard because of 164.29 the provisions of subclauses (a) to (d) shall be considered as 164.30 one of the four months. An additional $30 work incentive must 164.31 be available for an eight-month period beginning in the month 164.32 following the last month of the combined $30 and one-third work 164.33 incentive. This period must be in effect whether or not the 164.34 person has earned income or is eligible for AFDC in effect until 164.35 January 1, 1998. To again qualify for the earned income 164.36 disregards under this clause, the individual must not be a 165.1 recipient of aid for a period of 12 consecutive months. When an 165.2 assistance unit becomes ineligible for aid due to the fact that 165.3 these disregards are no longer applied to income, the assistance 165.4 unit shall be eligible for medical assistance benefits for a 165.5 12-month period beginning with the first month ofAFDC165.6 ineligibility for AFDC in effect until January 1, 1998; 165.7 (5) an amount equal to the actual expenditures for the care 165.8 of each dependent child or incapacitated individual living in 165.9 the same home and receiving aid, not to exceed: (a) $175 for 165.10 each individual age two and older, and $200 for each individual 165.11 under the age of two. The dependent care disregard must be 165.12 applied after all other disregards under this subdivision have 165.13 been applied; 165.14 (6)the first $50 per assistance unit of the monthly165.15support obligation collected by the support and recovery (IV-D)165.16unit. The first $50 of periodic support payments collected by165.17the public authority responsible for child support enforcement165.18from a person with a legal obligation to pay support for a165.19member of the assistance unit must be paid to the assistance165.20unit within 15 days after the end of the month in which the165.21collection of the periodic support payments occurred and must be165.22disregarded when determining the amount of assistance. A review165.23of a payment decision under this clause must be requested within165.2430 days after receiving the notice of collection of assigned165.25support or within 90 days after receiving the notice if good165.26cause can be shown for not making the request within the 30-day165.27limit;165.28(7)that portion of an insurance settlement earmarked and 165.29 used to pay medical expenses, funeral and burial costs, or to 165.30 repair or replace insured property; and 165.31(8)(7) all earned income tax credit payments received by 165.32 the family as a refund of federal income taxes or made as 165.33 advance payments by an employer. 165.34 All payments madepursuantaccording to a court order for 165.35 the support of children not living in the assistance unit's 165.36 household shall be disregarded from the income of the person 166.1 with the legal obligation to pay support, provided that, if 166.2 there has been a change in the financial circumstances of the 166.3 person with the legal obligation to pay support since the 166.4 support order was entered, the person with the legal obligation 166.5 to pay support has petitioned for a modification of the support 166.6 order. 166.7 Sec. 6. Minnesota Statutes 1996, section 256.82, 166.8 subdivision 2, is amended to read: 166.9 Subd. 2. [FOSTER CARE MAINTENANCE PAYMENTS.] 166.10 Notwithstanding subdivision 1, for the purposes of foster care 166.11 maintenance payments under Title IV-E of the federal Social 166.12 Security Act, United States Code, title 42, sections 670 to 676, 166.13 during the period beginning July 1, 1985, and ending December 166.14 31, 1985, the county paying the maintenance costs shall be 166.15 reimbursed for the costs from those federal funds available for 166.16 that purpose together with an amount of state funds equal to a 166.17 percentage of the difference between the total cost and the 166.18 federal funds made available for payment. This percentage shall 166.19 not exceed the percentage specified in subdivision 1 for the aid 166.20 to families with dependent children program in effect until 166.21 January 1, 1998. In the event that the state appropriation for 166.22 this purpose is less than the state percentage set in 166.23 subdivision 1, the reimbursement shall be ratably reduced to the 166.24 county. Beginning January 1, 1986, for the purpose of foster 166.25 care maintenance payments under Title IV-E of the Social 166.26 Security Act, United States Code, title 42, sections 670 to 676, 166.27 the county paying the maintenance costs must be reimbursed for 166.28 the costs from the federal money available for the 166.29 purpose. Beginning July 1, 1997, for the purposes of 166.30 determining a child's eligibility under title IV-E of the Social 166.31 Security Act, the placing agency shall use AFDC requirements in 166.32 effect on June 1, 1995. 166.33 Sec. 7. Minnesota Statutes 1996, section 256B.055, is 166.34 amended by adding a subdivision to read: 166.35 Subd. 3a. [MFIP-S FAMILIES.] Beginning January 1, 1998, or 166.36 upon receipt of federal approval if later, medical assistance 167.1 may be paid for a person receiving public assistance under the 167.2 MFIP-S program. 167.3 Sec. 8. Minnesota Statutes 1996, section 256B.055, is 167.4 amended by adding a subdivision to read: 167.5 Subd. 3b. [FAMILIES FORMERLY ELIGIBLE FOR AFDC.] Beginning 167.6 January 1, 1998, or upon receipt of federal approval if later, 167.7 medical assistance may be paid for a person who would have been 167.8 eligible for public assistance under the income and resource 167.9 standards and deprivation requirements, or who would have been 167.10 eligible but for excess income or assets, under the state's AFDC 167.11 plan in effect as of July 16, 1996, as required by the Personal 167.12 Responsibility and Work Opportunity Reconciliation Act of 1996 167.13 (PRWORA), Public Law Number 104-193. 167.14 Sec. 9. Minnesota Statutes 1996, section 256B.055, 167.15 subdivision 5, is amended to read: 167.16 Subd. 5. [PREGNANT WOMEN; DEPENDENT UNBORN CHILD.] Medical 167.17 assistance may be paid for a pregnant woman who has written 167.18 verification of a positive pregnancy test from a physician or 167.19 licensed registered nurse, who meets the other eligibility 167.20 criteria of this section and who would be categorically eligible 167.21 for assistance under theaid to families with dependent children167.22programstate's AFDC plan in effect as of July 16, 1996, as 167.23 required by the Personal Responsibility and Work Opportunity 167.24 Reconciliation Act of 1996 (PRWORA), Public Law Number 104-193, 167.25 if the child had been born and was living with the woman. For 167.26 purposes of this subdivision, a woman is considered pregnant for 167.27 60 days postpartum. 167.28 Sec. 10. Minnesota Statutes 1996, section 256B.056, 167.29 subdivision 1a, is amended to read: 167.30 Subd. 1a. [INCOME AND ASSETS GENERALLY.] Unless 167.31 specifically required by state law or rule or federal law or 167.32 regulation, the methodologies used in counting income and assets 167.33 to determine eligibility for medical assistance for persons 167.34 whose eligibility category is based on blindness, disability, or 167.35 age of 65 or more years, the methodologies for the supplemental 167.36 security income program shall be used, except that payments made 168.1pursuantaccording to a court order for the support of children 168.2 shall be excluded from income in an amount not to exceed the 168.3 difference between the applicable income standard used in the 168.4 state's medical assistance program for aged, blind, and disabled 168.5 persons and the applicable income standard used in the state's 168.6 medical assistance program for families with children. 168.7 Exclusion of court-ordered child support payments is subject to 168.8 the condition that if there has been a change in the financial 168.9 circumstances of the person with the legal obligation to pay 168.10 support since the support order was entered, the person with the 168.11 legal obligation to pay support has petitioned for modification 168.12 of the support order. For families and children, which includes 168.13 all other eligibility categories, the methodologiesfor the aid168.14to families with dependent children program under section 256.73168.15 under the state's AFDC plan in effect as of July 16, 1996, as 168.16 required by the Personal Responsibility and Work Opportunity 168.17 Reconciliation Act of 1996 (PRWORA), Public Law Number 104-193, 168.18 shall be used. Effective upon federal approval, in-kind 168.19 contributions to, and payments made on behalf of, a recipient, 168.20 by an obligor, in satisfaction of or in addition to a temporary 168.21 or permanent order for child support or maintenance, shall be 168.22 considered income to the recipient. For these purposes, a 168.23 "methodology" does not include an asset or income standard, or 168.24 accounting method, or method of determining effective dates. 168.25 Sec. 11. Minnesota Statutes 1996, section 256B.056, 168.26 subdivision 3, is amended to read: 168.27 Subd. 3. [ASSET LIMITATIONS.] To be eligible for medical 168.28 assistance, a person must not individually own more than $3,000 168.29 in assets, or if a member of a household with two family 168.30 members,(husband and wife, or parent and child), the household 168.31 must not own more than $6,000 in assets, plus $200 for each 168.32 additional legal dependent. In addition to these maximum 168.33 amounts, an eligible individual or family may accrue interest on 168.34 these amounts, but they must be reduced to the maximum at the 168.35 time of an eligibility redetermination. The accumulation of the 168.36 clothing and personal needs allowancepursuantaccording to 169.1 section 256B.35 must also be reduced to the maximum at the time 169.2 of the eligibility redetermination. The value of assets that 169.3 are not considered in determining eligibility for medical 169.4 assistance is the value of those assetsthat are excluded by the169.5aid to families with dependent children programexcluded under 169.6 the AFDC state plan as of July 16, 1996, as required by the 169.7 Personal Responsibility and Work Opportunity Reconciliation Act 169.8 of 1996 (PRWORA), Public Law Number 104-193, for families and 169.9 children, and the supplemental security income program for aged, 169.10 blind, and disabled persons, with the following exceptions: 169.11 (a) Household goods and personal effects are not considered. 169.12 (b) Capital and operating assets of a trade or business 169.13 that the local agency determines are necessary to the person's 169.14 ability to earn an income are not considered. 169.15 (c) Motor vehicles are excluded to the same extent excluded 169.16 by the supplemental security income program. 169.17 (d) Assets designated as burial expenses are excluded to 169.18 the same extent excluded by the supplemental security income 169.19 program. 169.20 Sec. 12. Minnesota Statutes 1996, section 256B.056, 169.21 subdivision 4, is amended to read: 169.22 Subd. 4. [INCOME.] To be eligible for medical assistance, 169.23 a person must not have, or anticipate receiving, semiannual 169.24 income in excess of 120 percent of the income standards by 169.25 family size usedinunder the aid to families with dependent 169.26 childrenprogramstate plan as of July 16, 1996, as required by 169.27 the Personal Responsibility and Work Opportunity Reconciliation 169.28 Act of 1996 (PRWORA), Public Law Number 104-193, except that 169.29 families and children may have an income up to 133-1/3 percent 169.30 of the AFDC income standard. In computing income to determine 169.31 eligibility of persons who are not residents of long-term care 169.32 facilities, the commissioner shall disregard increases in income 169.33 as required by Public Law Numbers 94-566, section 503; 99-272; 169.34 and 99-509. Veterans aid and attendance benefits are considered 169.35 income to the recipient. 169.36 Sec. 13. Minnesota Statutes 1996, section 256B.057, 170.1 subdivision 1, is amended to read: 170.2 Subdivision 1. [PREGNANT WOMEN AND INFANTS.] (a) An infant 170.3 less than one year of age or a pregnant woman who has written 170.4 verification of a positive pregnancy test from a physician or 170.5 licensed registered nurse, is eligible for medical assistance if 170.6 countable family income is equal to or less than 275 percent of 170.7 the federal poverty guideline for the same family size. For 170.8 purposes of this subdivision, "countable family income" means 170.9 the amount of income considered available using the methodology 170.10 of the AFDC program under the state's AFDC plan as of July 16, 170.11 1996, as required by the Personal Responsibility and Work 170.12 Opportunity Reconciliation Act of 1996 (PRWORA), Public Law 170.13 Number 104-193, except for the earned income disregard and 170.14 employment deductions. An amount equal to the amount of earned 170.15 income exceeding 275 percent of the federal poverty guideline, 170.16 up to a maximum of the amount by which the combined total of 185 170.17 percent of the federal poverty guideline plus the earned income 170.18 disregards and deductions of the AFDC program under the state's 170.19 AFDC plan as of July 16, 1996, as required by the Personal 170.20 Responsibility and Work Opportunity Reconciliation Act of 1996 170.21 (PRWORA), Public Law Number 104-193, exceeds 275 percent of the 170.22 federal poverty guideline will be deducted for pregnant women 170.23 and infants less than one year of age. Eligibility for a 170.24 pregnant woman or infant less than one year of age under this 170.25 subdivision must be determined without regard to asset standards 170.26 established in section 256B.056, subdivision 3. 170.27 (b) An infant born on or after January 1, 1991, to a woman 170.28 who was eligible for and receiving medical assistance on the 170.29 date of the child's birth shall continue to be eligible for 170.30 medical assistance without redetermination until the child's 170.31 first birthday, as long as the child remains in the woman's 170.32 household. 170.33 Sec. 14. Minnesota Statutes 1996, section 256B.057, 170.34 subdivision 1b, is amended to read: 170.35 Subd. 1b. [PREGNANT WOMEN AND INFANTS; EXPANSION.] (a) 170.36 This subdivision supersedes subdivision 1 as long as the 171.1 Minnesota health care reform waiver remains in effect. When the 171.2 waiver expires, the commissioner of human services shall publish 171.3 a notice in the State Register and notify the revisor of 171.4 statutes. An infant less than two years of age or a pregnant 171.5 woman who has written verification of a positive pregnancy test 171.6 from a physician or licensed registered nurse, is eligible for 171.7 medical assistance if countable family income is equal to or 171.8 less than 275 percent of the federal poverty guideline for the 171.9 same family size. For purposes of this subdivision, "countable 171.10 family income" means the amount of income considered available 171.11 using the methodology of the AFDC program under the state's AFDC 171.12 plan as of July 16, 1996, as required by the Personal 171.13 Responsibility and Work Opportunity Reconciliation Act of 1996 171.14 (PRWORA), Public Law Number 104-193, except for the earned 171.15 income disregard and employment deductions. An amount equal to 171.16 the amount of earned income exceeding 275 percent of the federal 171.17 poverty guideline, up to a maximum of the amount by which the 171.18 combined total of 185 percent of the federal poverty guideline 171.19 plus the earned income disregards and deductions of the AFDC 171.20 program under the state's AFDC plan as of July 16, 1996, as 171.21 required by the Personal Responsibility and Work Opportunity 171.22 Reconciliation Act of 1996 (PRWORA), Public Law Number 104-193, 171.23 exceeds 275 percent of the federal poverty guideline will be 171.24 deducted for pregnant women and infants less than two years of 171.25 age. Eligibility for a pregnant woman or infant less than two 171.26 years of age under this subdivision must be determined without 171.27 regard to asset standards established in section 256B.056, 171.28 subdivision 3. 171.29 (b) An infant born on or after January 1, 1991, to a woman 171.30 who was eligible for and receiving medical assistance on the 171.31 date of the child's birth shall continue to be eligible for 171.32 medical assistance without redetermination until the child's 171.33 second birthday, as long as the child remains in the woman's 171.34 household. 171.35 Sec. 15. Minnesota Statutes 1996, section 256B.057, 171.36 subdivision 2b, is amended to read: 172.1 Subd. 2b. [NO ASSET TEST FOR CHILDREN AND THEIR PARENTS; 172.2 EXPANSION.] This subdivision supersedes subdivision 2a as long 172.3 as the Minnesota health care reform waiver remains in effect. 172.4 When the waiver expires, this subdivision expires and the 172.5 commissioner of human services shall publish a notice in the 172.6 State Register and notify the revisor of statutes. Eligibility 172.7 for medical assistance for a person under age 21, and the 172.8 person's parents or relative caretakers as definedin the aid to172.9families with dependent children program according to chapter172.10256, who are eligible under section 256B.055, subdivision172.113under the state's AFDC plan in effect as of July 16, 1996, as 172.12 required by the Personal Responsibility and Work Opportunity 172.13 Reconciliation Act of 1996 (PRWORA), Public Law Number 104-193, 172.14 and who live in the same household as the person eligible under 172.15 age 21, must be determined without regard to asset standards 172.16 established in section 256B.056. 172.17 Sec. 16. Minnesota Statutes 1996, section 256B.06, 172.18 subdivision 4, is amended to read: 172.19 Subd. 4. [CITIZENSHIP REQUIREMENTS.] Eligibility for 172.20 medical assistance is limited to citizens of the United 172.21 Statesand aliens lawfully admitted for permanent residence or172.22otherwise permanently residing in the United States under the172.23color of law. Aliens who are seeking legalization under the172.24Immigration Reform and Control Act of 1986, Public Law Number172.2599-603, who are under age 18, over age 65, blind, disabled, or172.26Cuban or Haitian, and who meet the eligibility requirements of172.27medical assistance under subdivision 1 and sections 256B.055 to172.28256B.062 are eligible to receive medical assistance. Pregnant172.29women who are aliens seeking legalization under the Immigration172.30Reform and Control Act of 1986, Public Law Number 99-603, and172.31who meet the eligibility requirements of medical assistance172.32under subdivision 1 are eligible for payment of care and172.33services through the period of pregnancy and six weeks172.34postpartum. Payment shall also be made for care and services172.35that are furnished to an alien, regardless of immigration172.36status, who otherwise meets the eligibility requirements of this173.1section if such care and services are necessary for the173.2treatment of an emergency medical condition, except for organ173.3transplants and related care and services. For purposes of this173.4subdivision, the term "emergency medical condition" means a173.5medical condition, including labor and delivery, that if not173.6immediately treated could cause a person physical or mental173.7disability, continuation of severe pain, or death., qualified 173.8 noncitizens as defined in this subdivision, and other persons 173.9 residing lawfully in the United States. 173.10 (a) "Qualified noncitizen" means a person who meets one of 173.11 the following immigration criteria: 173.12 (1) admitted for lawful permanent residence according to 173.13 United States Code, title 8; 173.14 (2) admitted to the United States as a refugee according to 173.15 United States Code, title 8, section 1157; 173.16 (3) granted asylum according to United States Code, title 173.17 8, section 1158; 173.18 (4) granted withholding of deportation according to United 173.19 States Code, title 8, section 1253(h); 173.20 (5) paroled for a period of at least one year according to 173.21 United States Code, title 8, section 1182(d)(5); 173.22 (6) granted conditional entrant status according to United 173.23 States Code, title 8, section 1153(a)(7); or 173.24 (7) determined to be a battered noncitizen by the United 173.25 States Attorney General according to the Illegal Immigration 173.26 Reform and Immigrant Responsibility Act of 1996, title V of the 173.27 Omnibus Consolidated Appropriations Bill, Public Law Number 173.28 104-200. 173.29 (b) All qualified noncitizens who were residing in the 173.30 United States before August 22, 1996, who otherwise meet the 173.31 eligibility requirements of chapter 256B, are eligible for 173.32 medical assistance with federal financial participation. 173.33 (c) Beginning December 1, 1996, qualified noncitizens and 173.34 other noncitizens lawfully residing in the United States, who 173.35 entered the United States on or after August 22, 1996, and who 173.36 otherwise meet the eligibility requirements of chapter 256B, are 174.1 ineligible for medical assistance with federal participation for 174.2 five years unless they meet one of the following criteria: 174.3 (1) refugees admitted to the United States according to 174.4 United States Code, title 8, section 1157; 174.5 (2) persons granted asylum according to United States Code, 174.6 title 8, section 1158; 174.7 (3) persons granted withholding of deportation according to 174.8 United States code, title 8, section 1253(h); 174.9 (4) veterans of the United States armed Forces with an 174.10 honorable discharge for a reason other than noncitizen status, 174.11 their spouses and minor children; or 174.12 (5) persons on active duty in the United States Armed 174.13 Forces, other than for training, their spouses and minor 174.14 children. 174.15 (d) When determining eligibility, the income and resources 174.16 of qualified noncitizens shall be deemed to include their 174.17 sponsors' income and resources as required under the Personal 174.18 Responsibility and Work Opportunity Reconciliation Act of 1996, 174.19 title IV, Public Law Number 104-193, section 421. 174.20 (e) Payment shall also be made for care and services that 174.21 are furnished to noncitizens, regardless of immigration status, 174.22 who otherwise meet the eligibility requirements of section 256B 174.23 if such care and services are necessary for the treatment of an 174.24 emergency medical condition, except for organ transplants and 174.25 related care and services, and routine prenatal care, labor, and 174.26 delivery. For purposes of this subdivision, the term "emergency 174.27 medical condition" means a medical condition that meets the 174.28 requirements of United States Code, title 42, section 1396b(v). 174.29 (f) Pregnant noncitizens who are undocumented or 174.30 nonimmigrants who otherwise meet the eligibility requirements of 174.31 chapter 256B, are eligible for medical assistance payment 174.32 without federal financial participation of care and services 174.33 through the period of pregnancy and 60 days postpartum. 174.34 (g) Beginning December 1, 1996, qualified noncitizens as 174.35 described in paragraph (c), who are ineligible for medical 174.36 assistance with federal financial participation, and all other 175.1 noncitizens lawfully residing in the United States who otherwise 175.2 meet the eligibility requirements of section 256B and of this 175.3 paragraph, are eligible for medical assistance without federal 175.4 financial participation. Qualified noncitizens as described in 175.5 paragraph (c) are only eligible for medical assistance without 175.6 federal financial participation for five years from their date 175.7 of entry to the United States. As a condition of continuing 175.8 eligibility, all other noncitizens lawfully residing in the 175.9 United States must cooperate with the Immigration and 175.10 Naturalization Service to pursue any applicable immigration 175.11 status, including citizenship, that would qualify them for 175.12 medical assistance with federal financial participation. 175.13 (h) The commissioner shall submit to the legislature by 175.14 December 31, 1998, a report on the number of recipients and cost 175.15 of coverage of care and services made according to paragraphs 175.16 (f) and (g). 175.17 Sec. 17. [256B.063] [CONTINUED ELIGIBILITY.] 175.18 Beginning January 1, 1998, or upon federal approval if 175.19 later, medical assistance may be paid for persons who received 175.20 MFIP-S or medical assistance for families and children in at 175.21 least three of six months preceeding the month in which the 175.22 person became ineligible for MFIP-S or medical assistance, if 175.23 the ineligibility was due to an increase in hours of employment 175.24 or employment income or due to the loss of an earned income 175.25 disregard. In addition, to receive continued assistance under 175.26 this section, persons who received medical assistance for 175.27 families and children but did not receive MFIP-S must have had 175.28 income less than or equal to the assistance standard for their 175.29 family size under the state's AFDC plan in effect as of July 16, 175.30 1996, as required by the Personal Responsibility and Work 175.31 Opportunity Reconciliation Act of 1996 (PRWORA), Public Law 175.32 Number 104-193, at the time medical assistance eligibility 175.33 began. A person who is eligible for extended medical assistance 175.34 is entitled to six months of assistance without reapplication, 175.35 unless the assistance unit ceases to include a dependent child. 175.36 For a person under 21 years of age, medical assistance may not 176.1 be discontinued within the six-month period of extended 176.2 eligibility until it has been determined that the person is not 176.3 otherwise eligible for medical assistance. Medical assistance 176.4 may be continued for an additional six months if the person 176.5 meets all requirements for the additional six months, according 176.6 to Title XIX of the Social Security Act, as amended by section 176.7 303 of the Family Support Act of 1988, Public Law Number 100-485. 176.8 Sec. 18. Minnesota Statutes 1996, section 256D.01, 176.9 subdivision 1, is amended to read: 176.10 Subdivision 1. [POLICY.] The objectives of sections 176.11 256D.01 to 256D.21 are to provide a sound administrative 176.12 structure for public assistance programs; to maximize the use of 176.13 federal money for public assistance purposes; to provide an 176.14 integrated public assistance program forall personssingle 176.15 adults or childless couples in the state without adequate income 176.16 or resources to maintain a subsistence reasonably compatible 176.17 with decency and health; and to provide services to help 176.18 employable and potentially employable persons prepare for and 176.19 attain self-sufficiency and obtain permanent work. 176.20 It isdeclared to bethe policy of this state thatpersons176.21 single adults or childless couples unable to provide for 176.22 themselves and not otherwise provided for by lawandwho meet 176.23 the eligibility requirements of sections 256D.01 to 256D.21 are 176.24 entitled to receive grants of general assistance necessary to 176.25 maintain a subsistence reasonably compatible with decency and 176.26 health. Providing this assistance is a matter of public concern 176.27 and a necessity in promoting the public health and welfare. 176.28 Sec. 19. Minnesota Statutes 1996, section 256D.01, 176.29 subdivision 1a, is amended to read: 176.30 Subd. 1a. [STANDARDS.] (a) A principal objective in 176.31 providing general assistance is to provide forpersonssingle 176.32 adults or childless couples ineligible for federal programs who 176.33 are unable to provide for themselves. The minimum standard of 176.34 assistance determines the total amount of the general assistance 176.35 grant without separate standards for shelter, utilities, or 176.36 other needs. 177.1 (b) The commissioner shall set the standard of assistance 177.2 for an assistance unit consisting of an adult recipient who is 177.3 childless and unmarried or living apart from children and spouse 177.4 and who does not live with a parent or parents or a legal 177.5 custodian. When the other standards specified in this 177.6 subdivision increase, this standard must also be increased by 177.7 the same percentage. 177.8 (c) For an assistance unit consisting of a single adult who 177.9 lives with a parent or parents, the general assistance standard 177.10 of assistance is the amount that the aid to families with 177.11 dependent children standard of assistance, in effect on January 177.12 1, 1996, would increase if the recipient were added as an 177.13 additional minor child to an assistance unit consisting of the 177.14 recipient's parent and all of that parent's family members, 177.15 except that the standard may not exceed the standard for a 177.16 general assistance recipient living alone. Benefits received by 177.17 a responsible relative of the assistance unit under the 177.18 supplemental security income program, a workers' compensation 177.19 program, the Minnesota supplemental aid program, or any other 177.20 program based on the responsible relative's disability, and any 177.21 benefits received by a responsible relative of the assistance 177.22 unit under the social security retirement program, may not be 177.23 counted in the determination of eligibility or benefit level for 177.24 the assistance unit. Except as provided below, the assistance 177.25 unit is ineligible for general assistance if the available 177.26 resources or the countable income of the assistance unit and the 177.27 parent or parents with whom the assistance unit lives are such 177.28 that a family consisting of the assistance unit's parent or 177.29 parents, the parent or parents' other family members and the 177.30 assistance unit as the only or additional minor child would be 177.31 financially ineligible for general assistance. For the purposes 177.32 of calculating the countable income of the assistance unit's 177.33 parent or parents, the calculation methods, income deductions, 177.34 exclusions, and disregards used when calculating the countable 177.35 income for a single adult or childless couple must be used. 177.36 (d) For an assistance unit consisting of a childless 178.1 couple, the standards of assistance are the same as the first 178.2 and second adult standards of the aid to families with dependent 178.3 children program in effect on January 1, 1996. If one member of 178.4 the couple is not included in the general assistance grant, the 178.5 standard of assistance for the other is the second adult 178.6 standard of the aid to families with dependent children program. 178.7(e) For an assistance unit consisting of all members of a178.8family, the standards of assistance are the same as the178.9standards of assistance that apply to a family under the aid to178.10families with dependent children program if that family had the178.11same number of parents and children as the assistance unit under178.12general assistance and if all members of that family were178.13eligible for the aid to families with dependent children178.14program. If one or more members of the family are not included178.15in the assistance unit for general assistance, the standards of178.16assistance for the remaining members are the same as the178.17standards of assistance that apply to an assistance unit178.18composed of the entire family, less the standards of assistance178.19for a family of the same number of parents and children as those178.20members of the family who are not in the assistance unit for178.21general assistance. In no case shall the standard for family178.22members who are in the assistance unit for general assistance,178.23when combined with the standard for family members who are not178.24in the general assistance unit, total more than the standard for178.25the entire family if all members were in an AFDC assistance178.26unit. A child may not be excluded from the assistance unit178.27unless income intended for its benefit is received from a178.28federally aided categorical assistance program or supplemental178.29security income. The income of a child who is excluded from the178.30assistance unit may not be counted in the determination of178.31eligibility or benefit level for the assistance unit.178.32(f) An assistance unit consisting of one or more members of178.33a family must have its grant determined using the policies and178.34procedures of the aid to families with dependent children178.35program, except that, until June 30, 1995, in cases where a178.36county agency has developed or approved a case plan that179.1includes reunification with the children, foster care179.2maintenance payments made under state or local law for a child179.3who is temporarily absent from the assistance unit must not be179.4considered income to the child and the payments must not be179.5counted in the determination of the eligibility or benefit level179.6of the assistance unit. Otherwise, the standard of assistance179.7must be determined according to paragraph (e); the first $50 of179.8total child support received by an assistance unit in a month179.9must be excluded and the balance counted as unearned income.179.10 Sec. 20. Minnesota Statutes 1996, section 256D.02, 179.11 subdivision 6, is amended to read: 179.12 Subd. 6. "Child" means an adultor minorchild of an 179.13 individual. 179.14 Sec. 21. Minnesota Statutes 1996, section 256D.02, 179.15 subdivision 12a, is amended to read: 179.16 Subd. 12a. [RESIDENT.] (a) For purposes of eligibility for 179.17 general assistance and general assistance medical care, a 179.18 "resident" is a person living in the state for at least 30 days 179.19 with the intention of making the person's home here and not for 179.20 any temporary purpose. All applicants for these programs are 179.21 required to demonstrate the requisite intent and can do so in 179.22 any of the following ways: 179.23 (1) by showing that the applicant maintains a residence at 179.24 a verified address, other than a place of public accommodation. 179.25 An applicant may verify a residence address by presenting a 179.26 valid state driver's license, a state identification card, a 179.27 voter registration card, a rent receipt, a statement by the 179.28 landlord, apartment manager, or homeowner verifying that the 179.29 individual is residing at the address, or other form of 179.30 verification approved by the commissioner; or 179.31 (2) by verifying residencein accordance withaccording to 179.32 Minnesota Rules, part 9500.1219, subpart 3, item C. 179.33 (b) An applicant who has been in the state for less than 30 179.34 days shall be considered a resident if the applicant can provide 179.35 documentation: 179.36 (1) that the applicant was born in the state; 180.1 (2) that the applicant has been a long-time resident of the 180.2 state or was formerly a resident of the state for at least 365 180.3 days and is returning to the state from a temporary absence, as 180.4 those terms are defined in rules adopted by the commissioner; 180.5 (3) that the applicant has come to the state to join a 180.6 close relative which, for purposes of this subdivision, means a 180.7 parent, grandparent, brother, sister, spouse, or child, who has 180.8 resided in Minnesota for at least one year; or 180.9 (4) that the applicant has come to this state to accept a 180.10 bona fide offer of employment for which the applicant is 180.11 eligible. 180.12 A county agency shall waive the 30-day residency 180.13 requirement in cases of emergencies, including medical 180.14 emergencies, or where unusual hardship would result from denial 180.15 of general assistance medical care. A county may waive the 180.16 30-day residency requirement in cases of emergencies, including 180.17 medical emergencies, or where unusual hardship would result from 180.18 denial of general assistance. The county agency must report to 180.19 the commissioner within 30 days on any waiver granted under this 180.20 section. The county shall not deny an application solely 180.21 because the applicant does not meet at least one of the criteria 180.22 in this subdivision, but shall continue to process the 180.23 application and leave the application pending until the 180.24 residency requirement is met or until eligibility or 180.25 ineligibility is established. 180.26 Sec. 22. Minnesota Statutes 1996, section 256D.03, 180.27 subdivision 3, is amended to read: 180.28 Subd. 3. [GENERAL ASSISTANCE MEDICAL CARE; ELIGIBILITY.] 180.29 (a) General assistance medical care may be paid for any person 180.30 who is not eligible for medical assistance under chapter 256B, 180.31 including eligibility for medical assistance based on a 180.32 spenddown of excess income according to section 256B.056, 180.33 subdivision 5, and: 180.34 (1) who is receiving assistance under section 256D.05, or 180.35 who is having a payment made on the person's behalf under 180.36 sections 256I.01 to 256I.06; or 181.1 (2)(i) who is a resident of Minnesota; and whose equity in 181.2 assets is not in excess of $1,000 per assistance unit. No asset 181.3 test shall be applied to children and their parents living in 181.4 the same household. Exempt assets, the reduction of excess 181.5 assets, and the waiver of excess assets must conform to the 181.6 medical assistance program in chapter 256B, with the following 181.7 exception: the maximum amount of undistributed funds in a trust 181.8 that could be distributed to or on behalf of the beneficiary by 181.9 the trustee, assuming the full exercise of the trustee's 181.10 discretion under the terms of the trust, must be applied toward 181.11 the asset maximum; and 181.12 (ii) who has countable income not in excess of the 181.13 assistance standards established in section 256B.056, 181.14 subdivision 4, or whose excess income is spent downpursuant181.15 according to section 256B.056, subdivision 5, using a six-month 181.16 budget period, except that a one-month budget period must be 181.17 used for recipients residing in a long-term care facility. The 181.18 method for calculating earned income disregards and deductions 181.19 for a person who resides with a dependent child under age 21 181.20 shallbe as specified in section 256.74, subdivision 1follow 181.21 section 256B.056. However, if a disregard of $30 and one-third 181.22 of the remainder described in section 256.74, subdivision 1, 181.23 clause (4), has been applied to the wage earner's income, the 181.24 disregard shall not be applied again until the wage earner's 181.25 income has not been considered in an eligibility determination 181.26 for general assistance, general assistance medical care, medical 181.27 assistance, oraid to families with dependent childrenMFIP-S 181.28 for 12 consecutive months. The earned income and work expense 181.29 deductions for a person who does not reside with a dependent 181.30 child under age 21 shall be the same as the method used to 181.31 determine eligibility for a person under section 256D.06, 181.32 subdivision 1, except the disregard of the first $50 of earned 181.33 income is not allowed; or 181.34 (3) who would be eligible for medical assistance except 181.35 that the person resides in a facility that is determined by the 181.36 commissioner or the federal health care financing administration 182.1 to be an institution for mental diseases. 182.2 (b) Eligibility is available for the month of application, 182.3 and for three months prior to application if the person was 182.4 eligible in those prior months. A redetermination of 182.5 eligibility must occur every 12 months. 182.6 (c) General assistance medical care is not available for a 182.7 person in a correctional facility unless the person is detained 182.8 by law for less than one year in a county correctional or 182.9 detention facility as a person accused or convicted of a crime, 182.10 or admitted as an inpatient to a hospital on a criminal hold 182.11 order, and the person is a recipient of general assistance 182.12 medical care at the time the person is detained by law or 182.13 admitted on a criminal hold order and as long as the person 182.14 continues to meet other eligibility requirements of this 182.15 subdivision. 182.16 (d) General assistance medical care is not available for 182.17 applicants or recipients who do not cooperate with the county 182.18 agency to meet the requirements of medical assistance. 182.19 (e) In determining the amount of assets of an individual, 182.20 there shall be included any asset or interest in an asset, 182.21 including an asset excluded under paragraph (a), that was given 182.22 away, sold, or disposed of for less than fair market value 182.23 within the 60 months preceding application for general 182.24 assistance medical care or during the period of eligibility. 182.25 Any transfer described in this paragraph shall be presumed to 182.26 have been for the purpose of establishing eligibility for 182.27 general assistance medical care, unless the individual furnishes 182.28 convincing evidence to establish that the transaction was 182.29 exclusively for another purpose. For purposes of this 182.30 paragraph, the value of the asset or interest shall be the fair 182.31 market value at the time it was given away, sold, or disposed 182.32 of, less the amount of compensation received. For any 182.33 uncompensated transfer, the number of months of ineligibility, 182.34 including partial months, shall be calculated by dividing the 182.35 uncompensated transfer amount by the average monthly per person 182.36 payment made by the medical assistance program to skilled 183.1 nursing facilities for the previous calendar year. The 183.2 individual shall remain ineligible until this fixed period has 183.3 expired. The period of ineligibility may exceed 30 months, and 183.4 a reapplication for benefits after 30 months from the date of 183.5 the transfer shall not result in eligibility unless and until 183.6 the period of ineligibility has expired. The period of 183.7 ineligibility begins in the month the transfer was reported to 183.8 the county agency, or if the transfer was not reported, the 183.9 month in which the county agency discovered the transfer, 183.10 whichever comes first. For applicants, the period of 183.11 ineligibility begins on the date of the first approved 183.12 application. 183.13 (f)(1)Beginning October 1, 1993,An undocumentedalien183.14 noncitizen or a nonimmigrant is ineligible for general 183.15 assistance medical care other than emergency services. For 183.16 purposes of this subdivision, a nonimmigrant is an individual in 183.17 one or more of the classes listed in United States Code, title 183.18 8, section 1101(a)(15), and an undocumentedaliennoncitizen is 183.19 an individual who resides in the United States without the 183.20 approval or acquiescence of the Immigration and Naturalization 183.21 Service. 183.22 (2) This subdivision does not apply to a child under age 183.23 18, to a Cuban or Haitian entrant as defined in Public Law 183.24 Number 96-422, section 501(e)(1) or (2)(a), or toan aliena 183.25 noncitizen who is aged, blind, or disabled as defined inUnited183.26States Code, title 42, section 1382c(a)(1)Code of Federal 183.27 Regulations, title 42, sections 435.520, 435.530, 435.531, 183.28 435.540, and 435.541, who cooperates with the Immigration and 183.29 Naturalization Service to pursue any applicable immigration 183.30 status, including citizenship, that would qualify that 183.31 individual for medical assistance with federal financial 183.32 participation. 183.33 (3) For purposes of paragraph (f), "emergency services" has 183.34 the meaning given in Code of Federal Regulations, title 42, 183.35 section 440.255(b)(1), except that it also means services 183.36 rendered because of suspected or actual pesticide poisoning. 184.1 (4) Notwithstanding any other provision of law, a 184.2 noncitizen who is ineligible for medical assistance due to the 184.3 deeming of a sponsor's income and resources, is ineligible for 184.4 general assistance medical care. 184.5 Sec. 23. Minnesota Statutes 1996, section 256D.05, 184.6 subdivision 1, is amended to read: 184.7 Subdivision 1. [ELIGIBILITY.] (a) Each personor family184.8 whose income and resources are less than the standard of 184.9 assistance established by the commissionerand, who is a 184.10 resident of the state shall be eligible for and entitled to 184.11 general assistance if the personor familyis: 184.12 (1) a person who is suffering from a professionally 184.13 certified permanent or temporary illness, injury, or incapacity 184.14 which is expected to continue for more than 30 days and which 184.15 prevents the person from obtaining or retaining employment; 184.16 (2) a person whose presence in the home on a substantially 184.17 continuous basis is required because of the professionally 184.18 certified illness, injury, incapacity, or the age of another 184.19 member of the household; 184.20 (3) a person who has been placed in, and is residing in, a 184.21 licensed or certified facility for purposes of physical or 184.22 mental health or rehabilitation, or in an approved chemical 184.23 dependency domiciliary facility, if the placement is based on 184.24 illness or incapacity and ispursuantaccording to a plan 184.25 developed or approved by the county agency through its director 184.26 or designated representative; 184.27 (4) a person who resides in a shelter facility described in 184.28 subdivision 3; 184.29 (5) a person not described in clause (1) or (3) who is 184.30 diagnosed by a licensed physician, psychological practitioner, 184.31 or other qualified professional, as mentally retarded or 184.32 mentally ill, and that condition prevents the person from 184.33 obtaining or retaining employment; 184.34 (6) a person who has an application pending for, or is 184.35 appealing termination of benefits from, the social security 184.36 disability program or the program of supplemental security 185.1 income for the aged, blind, and disabled, provided the person 185.2 has a professionally certified permanent or temporary illness, 185.3 injury, or incapacity which is expected to continue for more 185.4 than 30 days and which prevents the person from obtaining or 185.5 retaining employment; 185.6 (7) a person who is unable to obtain or retain employment 185.7 because advanced age significantly affects the person's ability 185.8 to seek or engage in substantial work; 185.9 (8) a person who has been assessed by a vocational 185.10 specialist and, in consultation with the county agency, has been 185.11 determined to be unemployable for purposes of thisitem,clause; 185.12 a person is considered employable if there exist positions of 185.13 employment in the local labor market, regardless of the current 185.14 availability of openings for those positions, that the person is 185.15 capable of performing. The person's eligibility under this 185.16 category must be reassessed at least annually. The county 185.17 agency must provide notice to the person not later than 30 days 185.18 before annual eligibility under this item ends, informing the 185.19 person of the date annual eligibility will end and the need for 185.20 vocational assessment if the person wishes to continue 185.21 eligibility under this clause. For purposes of establishing 185.22 eligibility under this clause, it is the applicant's or 185.23 recipient's duty to obtain any needed vocational assessment; 185.24 (9) a person who is determined by the county agency,in185.25accordance withaccording to permanent rules adopted by the 185.26 commissioner, to be learning disabled, provided that if a 185.27 rehabilitation plan for the person is developed or approved by 185.28 the county agency, the person is following the plan; 185.29 (10) a child under the age of 18 who is not living with a 185.30 parent, stepparent, or legal custodian,butand only if: the 185.31 child is legally emancipated or living with an adult with the 185.32 consent of an agency acting as a legal custodian; the child is 185.33 at least 16 years of age and the general assistance grant is 185.34 approved by the director of the county agency or a designated 185.35 representative as a component of a social services case plan for 185.36 the child; or the child is living with an adult with the consent 186.1 of the child's legal custodian and the county agency. For 186.2 purposes of this clause, "legally emancipated" means a person 186.3 under the age of 18 years who: (i) has been married; (ii) is on 186.4 active duty in the uniformed services of the United States; 186.5 (iii) has been emancipated by a court of competent jurisdiction; 186.6 or (iv) is otherwise considered emancipated under Minnesota law, 186.7 and for whom county social services has not determined that a 186.8 social services case plan is necessary, for reasons other 186.9 thanthatthe child has failed or refuses to cooperate with the 186.10 county agency in developing the plan; 186.11 (11)a woman in the last trimester of pregnancy who does186.12not qualify for aid to families with dependent children. A186.13woman who is in the last trimester of pregnancy who is currently186.14receiving aid to families with dependent children may be granted186.15emergency general assistance to meet emergency needs;186.16(12)a person who is eligible for displaced homemaker 186.17 services, programs, or assistance under section 268.96, but only 186.18 if that person is enrolled as a full-time student; 186.19(13)(12) a person who lives more than two hours round-trip 186.20 traveling time from any potential suitable employment; 186.21(14)(13) a person who is involved with protective or 186.22 court-ordered services that prevent the applicant or recipient 186.23 from working at least four hours per day; or 186.24(15)(i) a family as defined in section 256D.02, subdivision186.255, which is ineligible for the aid to families with dependent186.26children program.186.27(ii) unless exempt under section 256D.051, subdivision 3a,186.28each adult in the unit must participate in and cooperate with186.29the food stamp employment and training program under section186.30256D.051 each month that the unit receives general assistance186.31benefits. The recipient's participation must begin no later186.32than the first day of the first full month following the186.33determination of eligibility for general assistance benefits.186.34To the extent of available resources, and with the county186.35agency's consent, the recipient may voluntarily continue to186.36participate in food stamp employment and training services for187.1up to three additional consecutive months immediately following187.2termination of general assistance benefits in order to complete187.3the provisions of the recipient's employability development187.4plan. If an adult member fails without good cause to187.5participate in or cooperate with the food stamp employment and187.6training program, the county agency shall concurrently terminate187.7that person's eligibility for general assistance and food stamps187.8for two months or until compliance is achieved, whichever is187.9shorter, using the notice, good cause, conciliation and187.10termination procedures specified in section 256D.051; or187.11(16)(14) a person over age 18 whose primary language is 187.12 not English and who is attending high school at least half time. 187.13 (b) Personsor familieswho are not state residents but who 187.14 are otherwise eligible for general assistance may receive 187.15 emergency general assistance to meet emergency needs. 187.16 (c) As a condition of eligibility under paragraph (a), 187.17 clauses (1), (3), (5), (8), and (9), the recipient must complete 187.18 an interim assistance agreement and must apply for other 187.19 maintenance benefits as specified in section 256D.06, 187.20 subdivision 5, and must comply with efforts to determine the 187.21 recipient's eligibility for those other maintenance benefits. 187.22 (d) The burden of providing documentation for a county 187.23 agency to use to verify eligibility for general assistance or 187.24 for exemption from the food stamp employment and training 187.25 program is upon the applicant or recipient. The county agency 187.26 shall use documents already in its possession to verify 187.27 eligibility, and shall help the applicant or recipient obtain 187.28 other existing verification necessary to determine eligibility 187.29 which the applicant or recipient does not have and is unable to 187.30 obtain. 187.31 Sec. 24. Minnesota Statutes 1996, section 256D.05, 187.32 subdivision 2, is amended to read: 187.33 Subd. 2. [USE OF FEDERAL FUNDS.] Notwithstanding any law 187.34 to the contrary, ifany persona single adult or childless 187.35 couple otherwise eligible for general assistance would, but for 187.36 state statutory restriction or limitation, be eligible for a 188.1 funded federally aided assistance program providing benefits 188.2 equal to or greater than those of general assistance, theperson188.3 single adult or childless couple shall be eligible for that 188.4 federally aided program and ineligible for general assistance; 188.5 provided, however, that (a) nothing in this section shall be 188.6 construed to extend eligibility for federally aided programs to 188.7 persons not otherwise eligible for general assistance; (b) this 188.8 section shall not be effective to the extent that federal law or 188.9 regulation require new eligibility for federal programs to 188.10 persons not otherwise eligible for general assistance; and (c) 188.11 nothing in this section shall deny general assistance to a 188.12 person otherwise eligible who is determined ineligible for a 188.13 substitute federally aided program. 188.14 Sec. 25. Minnesota Statutes 1996, section 256D.05, 188.15 subdivision 3, is amended to read: 188.16 Subd. 3. [RESIDENTS OF SHELTER FACILITIES.] 188.17 Notwithstanding the provisions of subdivisions 1 and 2, general 188.18 assistance payments shall be made for maintenance costs and 188.19 security costs which are related to providing 24-hour staff 188.20 coverage at the facility incurred as a result of residence in a 188.21 secure crisis shelter, a housing network, or other shelter 188.22 facilities which provide shelter services to women and their 188.23 children who are being or have been assaulted by their spouses, 188.24 other male relatives, or other males with whom they are residing 188.25 or have resided in the past. 188.26 These payments shall be made directly to the shelter 188.27 facility from general assistance funds on behalf of women and 188.28 their children who are receiving, or who are eligible to 188.29 receive,aid to families with dependent childrenMFIP-S or 188.30 general assistance. 188.31 In determining eligibility of women and children for 188.32 payment of general assistance under this subdivision, the asset 188.33 limitations ofthe aid to families with dependent children188.34programMFIP-S shall be applied. Payments to shelter facilities 188.35 shall not affect the eligibility of individuals who reside in 188.36 shelter facilities foraid to families with dependent children189.1 MFIP-S or general assistance or payments made to individuals who 189.2 reside in shelter facilities throughaid to families with189.3dependent childrenMFIP-S or general assistance, except when 189.4 required by federal law or regulation. 189.5 Sec. 26. Minnesota Statutes 1996, section 256D.05, 189.6 subdivision 5, is amended to read: 189.7 Subd. 5. [TRANSFERS OF PROPERTY.] The equity value of real 189.8 and personal property transferred without reasonable 189.9 compensation within 12 months preceding the date of application 189.10 for general assistance must be included in determining the 189.11 resources of an assistance unit in the same manner asin the aid189.12to families with dependent children program under chapter189.13256MFIP-S under chapter 256J. 189.14 Sec. 27. Minnesota Statutes 1996, section 256D.05, 189.15 subdivision 7, is amended to read: 189.16 Subd. 7. [INELIGIBILITY FOR GENERAL ASSISTANCE.] Noperson189.17 single adult or childless couple shall be eligible for general 189.18 assistance during a period of disqualification because of 189.19 sanctions, from any federally aided assistance program; or if189.20the person could be considered an essential person under section189.21256.74, subdivision 1. 189.22 Sec. 28. Minnesota Statutes 1996, section 256D.05, 189.23 subdivision 8, is amended to read: 189.24 Subd. 8. [PERSONS INELIGIBLECITIZENSHIP.](a) Beginning189.25October 1, 1993, an undocumented alien or a nonimmigrant is189.26ineligible for general assistance benefits. For purposes of189.27this subdivision, a nonimmigrant is an individual in one or more189.28of the classes listed in United States Code, title 8, section189.291101(a)(15), and an undocumented alien is an individual who189.30resides in the United States without the approval or189.31acquiescence of the Immigration and Naturalization Service.189.32(b) This subdivision does not apply to a child under age189.3318, to a Cuban or Haitian entrant as defined in Public Law189.34Number 96-422, section 501(e)(1) or (2)(a), or to an alien who189.35is aged, blind, or disabled as defined in United States Code,189.36title 42, section 1382c(a)(1).Effective July 1, 1997, 190.1 citizenship requirements for applicants and recipients under 190.2 sections 256D.01 to 256D.21 shall be determined the same as 190.3 under section 256J.11, subdivision 1, which governs the 190.4 Minnesota family investment program-statewide (MFIP-S). The 190.5 income of sponsors of noncitizens shall be deemed available to 190.6 general assistance applicants and recipients according to the 190.7 policies of the MFIP-S program at section 256J.14, subdivision 7. 190.8 Sec. 29. Minnesota Statutes 1996, section 256D.051, 190.9 subdivision 1a, is amended to read: 190.10 Subd. 1a. [NOTICES; CONCILIATION CONFERENCE;AND 190.11 SANCTIONS.] (a) At the time the county agency notifies the 190.12 household that it is eligible for food stamps, the county agency 190.13 must inform all mandatory employment and training services 190.14 participants as identified in subdivision 1 in the household 190.15 that they must comply with all food stamp employment and 190.16 training program requirements each month, including the 190.17 requirement to attend an initial orientation to the food stamp 190.18 employment and training program and that food stamp eligibility 190.19 will end unless the participants comply with the requirements 190.20 specified in the notice. 190.21 (b) A participant who fails without good cause to comply 190.22 with food stamp employment and training program requirements of 190.23 this section, including attendance at orientation, will lose 190.24 food stamp eligibility fortwo months or until the county agency190.25determines that the participant has complied with the program190.26requirements, whichever is shorter.the following periods: 190.27 (1) for the first occurrence, for one month or until the 190.28 person complies with the requirements not previously complied 190.29 with, whichever is longer; 190.30 (2) for the second occurrence, for three months or until 190.31 the person complies with the requirements not previously 190.32 complied with, whichever is longer; or 190.33 (3) for the third and any subsequent occurrence, for six 190.34 months or until the person complies with the requirements not 190.35 previously complied with, whichever is longer. 190.36 If the participant is not the food stamp head of household, 191.1 the person shall be considered an ineligible household member 191.2 for food stamp purposes. If the participant is the food stamp 191.3 head of household, the entire household is ineligible for food 191.4 stamps as provided in Code of Federal Regulations, title 7, 191.5 section 273.7(g). "Good cause" means circumstances beyond the 191.6 control of the participant, such as illness or injury, illness 191.7 or injury of another household member requiring the 191.8 participant's presence, a household emergency, or the inability 191.9 to obtain child care for children between the ages of six and 12 191.10 or to obtain transportation needed in order for the participant 191.11 to meet the food stamp employment and training program 191.12 participation requirements. 191.13 (c) The county agency shall mail or hand deliver a notice 191.14 to the participant not later than five days after determining 191.15 that the participant has failed without good cause to comply 191.16 with food stamp employment and training program requirements 191.17 which specifies the requirements that were not complied with, 191.18 the factual basis for the determination of noncompliance, the 191.19 right to reinstate eligibility upon a showing of good causeor191.20thefor failure to meet the requirements, and the notice must 191.21 ask the reason for the noncompliance,andmustidentify the 191.22 participant's appeal rights. The notice must request that the 191.23 participant inform the county agency if the participant believes 191.24 that good cause existed for the failure to comply, must offer191.25the participant a conciliation conference as provided in191.26paragraph (d),and must state that the county agency intends to 191.27 terminate eligibility for food stamp benefits due to failure to 191.28 comply with food stamp employment and training program 191.29 requirements. 191.30 (d)The county agency must offer a conciliation conference191.31to participants who have failed to comply with food stamp191.32employment and training program requirements. The purpose of191.33the conference is to determine the cause for noncompliance, to191.34attempt to resolve the problem causing the noncompliance so that191.35all requirements are complied with, and to determine if good191.36cause for noncompliance was present. The conciliation period192.1shall run for ten working days from the date of the notice192.2required in paragraph (c). Information about how to request a192.3conciliation conference must be specified in the notice required192.4in paragraph (c). If the county agency determines that the192.5participant, during the conciliation period, complied with all192.6food stamp employment and training program requirements that the192.7recipient was required to comply with prior to and during the192.8conciliation period, or if the county agency determines that192.9good cause for failing to comply with the requirements was192.10present, a sanction on the participant's or household's food192.11stamp eligibility shall not be imposed.192.12(e)If the county agency determines that the participant 192.13 did not comply during theconciliation periodmonth with all 192.14 food stamp employment and training program requirements that 192.15 were in effectprior to and during the conciliation period, and 192.16 if the county agency determines that good cause was not present, 192.17 the county must provide a ten-day notice of termination of food 192.18 stamp benefits.The termination notice must be issued following192.19the last day of the conciliation period.The amount of food 192.20 stamps that are withheld from the household and determination of 192.21 the impact of the sanction on other household members is 192.22 governed by Code of Federal Regulations, title 7, section 273.7. 192.23(f)(e) The participant may appeal the termination of food 192.24 stamp benefits under the provisions of section 256.045. 192.25 Sec. 30. Minnesota Statutes 1996, section 256D.051, 192.26 subdivision 2a, is amended to read: 192.27 Subd. 2a. [DUTIES OF COMMISSIONER.] In addition to any 192.28 other duties imposed by law, the commissioner shall: 192.29 (1) based on this section and section 256D.052 and Code of 192.30 Federal Regulations, title 7, section 273.7, supervise the 192.31 administration of food stamp employment and training services to 192.32 county agencies; 192.33 (2) disburse money appropriated for food stamp employment 192.34 and training services to county agencies based upon the county's 192.35 costs as specified in section 256D.06; 192.36 (3) accept and supervise the disbursement of any funds that 193.1 may be provided by the federal government or from other sources 193.2 for use in this state for food stamp employment and training 193.3 services;and193.4 (4) cooperate with other agencies including any agency of 193.5 the United States or of another state in all matters concerning 193.6 the powers and duties of the commissioner under this section and 193.7 section 256D.052; and 193.8 (5) in cooperation with the commissioner of economic 193.9 security, ensure that each component of an employment and 193.10 training program carried out under this section is delivered 193.11 through a statewide workforce development system, unless the 193.12 component is not available locally through such a system. 193.13 Sec. 31. Minnesota Statutes 1996, section 256D.051, 193.14 subdivision 3a, is amended to read: 193.15 Subd. 3a. [PERSONS REQUIRED TO REGISTER FOR AND 193.16 PARTICIPATE IN THE FOOD STAMP EMPLOYMENT AND TRAINING PROGRAM.] 193.17 (a) To the extent required under Code of Federal Regulations, 193.18 title 7, section 273.7(a), each applicant for and recipient of 193.19 food stamps is required to register for work as a condition of 193.20 eligibility for food stamp benefits. Applicants and recipients 193.21 are registered by signing an application or annual reapplication 193.22 for food stamps, and must be informed that they are registering 193.23 for work by signing the form. 193.24 (b) The commissioner shall determine, within federal 193.25 requirements, persons required to participate in the food stamp 193.26 employment and training (FSET) program. 193.27 (c) The following food stamp recipients are exempt from 193.28 mandatory participation in food stamp employment and training 193.29 services: 193.30 (1) recipients of benefits under the AFDC program in effect 193.31 until January 1, 1998, Minnesota supplemental aid program, or 193.32 the general assistance program, except that an adult who193.33receives general assistance under section 256D.05, subdivision193.341, paragraph (b), is not exempt unless that person qualifies193.35under one of the remaining exemption provisions in this193.36paragraph; 194.1 (2) a child; 194.2 (3) a recipient over age 55; 194.3 (4) a recipient who has a mental or physical illness, 194.4 injury, or incapacity which is expected to continue for at least 194.5 30 days and which impairs the recipient's ability to obtain or 194.6 retain employment as evidenced by professional certification or 194.7 the receipt of temporary or permanent disability benefits issued 194.8 by a private or government source; 194.9 (5) a parent or other household member responsible for the 194.10 care of either a dependent child in the household who is under 194.11 age six or a person in the household who is professionally 194.12 certified as having a physical or mental illness, injury, or 194.13 incapacity. Only one parent or other household member may claim 194.14 exemption under this provision; 194.15 (6) a recipient receiving unemployment compensation or who 194.16 has applied for unemployment compensation and has been required 194.17 to register for work with the department of economic security as 194.18 part of the unemployment compensation application process; 194.19 (7) a recipient participating each week in a drug addiction 194.20 or alcohol abuse treatment and rehabilitation program, provided 194.21 the operators of the treatment and rehabilitation program, in 194.22 consultation with the county agency, recommend that the 194.23 recipient not participate in the food stamp employment and 194.24 training program; 194.25 (8) a recipient employed or self-employed for 30 or more 194.26 hours per week at employment paying at least minimum wage, or 194.27 who earns wages from employment equal to or exceeding 30 hours 194.28 multiplied by the federal minimum wage; or 194.29 (9) a student enrolled at least half time in any school, 194.30 training program, or institution of higher education. When 194.31 determining if a student meets this criteria, the school's, 194.32 program's or institution's criteria for being enrolled half time 194.33 shall be used. 194.34 Sec. 32. Minnesota Statutes 1996, section 256D.051, is 194.35 amended by adding a subdivision to read: 194.36 Subd. 18. [WORK EXPERIENCE PLACEMENTS.] (a) To the extent 195.1 of available resources, each county agency may establish and 195.2 operate a work experience component in the food stamp employment 195.3 and training program for recipients who are subject to a federal 195.4 limit of three months of food stamp eligibility in any 36-month 195.5 period. The purpose of the work experience component is to 195.6 enhance the participant's employability, self-sufficiency, and 195.7 to provide meaningful, productive work activities. 195.8 (b) The commissioner shall assist counties in the design 195.9 and implementation of these components. Program participants 195.10 may not be assigned to work that was part or all of the duties 195.11 or responsibilities of an authorized public employee bargaining 195.12 unit position established as of July 1, 1996. The exclusive 195.13 bargaining representative shall be notified no less than 14 days 195.14 in advance of any placement by the community work experience 195.15 program. Written or oral concurrence with job duties of persons 195.16 placed under the community work experience program shall be 195.17 obtained from the appropriate exclusive bargaining 195.18 representative. 195.19 (c) Worksites developed under this section are limited to 195.20 projects that serve a useful public service such as health, 195.21 social service, environmental protection, education, urban and 195.22 rural development and redevelopment, welfare, recreation, public 195.23 facilities, public safety, community service, services to aged 195.24 or disabled citizens, and child care. To the extent possible, 195.25 the prior training, skills, and experience of a recipient must 195.26 be used in making appropriate work experience assignments. 195.27 (d) Structured, supervised volunteer work with an agency or 195.28 organization which is monitored by the county service provider 195.29 may, with the approval of the county agency, be used as a work 195.30 experience placement. 195.31 (e) As a condition to placing a person receiving assistance 195.32 from the aid to families with dependent children program in 195.33 effect until January 1, 1998, in a program under this 195.34 subdivision, the county agency shall first provide the recipient 195.35 the opportunity: 195.36 (1) for placement in suitable subsidized or unsubsidized 196.1 employment through participation in job search under section 196.2 256D.051; or 196.3 (2) for placement in suitable employment through 196.4 participation in on-the-job training, if such employment is 196.5 available. 196.6 (f) The county agency shall limit the maximum monthly 196.7 number of hours that any participant may work in a work 196.8 experience placement to: 196.9 (1) a number equal to the amount of the family's monthly 196.10 food stamp allotment divided by the greater of the federal 196.11 minimum wage or the applicable state minimum wage; or 196.12 (2) if federal approval is granted, 80 hours per month 196.13 instead of the number arrived at through the calculation in 196.14 clause (1). 196.15 (g) The caretaker's employability development plan must 196.16 include the length of time needed in the work experience 196.17 program, the need to continue job seeking activities while 196.18 participating in work experience, and the participant's 196.19 employment goals. 196.20 (h) After each six months of a recipient's participation in 196.21 a work experience job placement, and at the conclusion of each 196.22 work experience assignment under this section, the county agency 196.23 shall reassess and revise, as appropriate, the participant's 196.24 employability development plan. 196.25 (i) A participant has good cause for failure to cooperate 196.26 with a work experience job placement if: 196.27 (1) worksite participation adversely affects the 196.28 caretaker's physical or mental health, or the participant is 196.29 physically or mentally unfit to perform the assigned duties as 196.30 verified by a physician, licensed or certified psychologist, 196.31 physical therapist, or vocational expert; 196.32 (2) the county agency determines that the caretaker does 196.33 not possess the skill or knowledge required for the work; 196.34 (3) the assignment requires joining, resigning from, or 196.35 refraining from joining a legitimate labor union, or the 196.36 assignment is to a site subject to a strike or lockout; 197.1 (4) the distance to the site prohibits walking and neither 197.2 public nor private transportation is available; 197.3 (5) the working hours or nature of the employment 197.4 interferes with the person's religious observances, convictions, 197.5 or beliefs; 197.6 (6) the assignment involves political or partisan 197.7 activities; 197.8 (7) there are circumstances beyond the household's control, 197.9 such as illness or a household emergency; 197.10 (8) the unavailability of child care for a child between 197.11 the ages of six and 12; or 197.12 (9) there are costs of transportation and other 197.13 work-related expenses that the participant is expected to incur 197.14 out-of-pocket and those costs are not reimbursed. 197.15 (j) A recipient who has failed without good cause to 197.16 participate in or comply with the work experience job placement 197.17 shall be terminated from participation in work experience job 197.18 activities. If the recipient is not exempt from mandatory food 197.19 stamp employment and training program participation under 197.20 section 256D.051, subdivision 3a, the recipient will be assigned 197.21 to other mandatory program activities. If the recipient is 197.22 exempt from mandatory participation but is participating as a 197.23 volunteer, the person shall be terminated from the food stamp 197.24 employment and training program. 197.25 Sec. 33. Minnesota Statutes 1996, section 256D.0511, 197.26 subdivision 2, is amended to read: 197.27 Subd. 2. [BUDGETING LUMP-SUMS.] Nonrecurring lump-sum 197.28 income received by a recipient of general assistance must be 197.29 budgeted in the normal retrospective cycle.Nonrecurring197.30lump-sum income received by an applicant for general assistance197.31who is ineligible for AFDC due to a nonrecurring lump-sum197.32payment is prospectively budgeted.When a recipient's income, 197.33 after application of the applicable disregards, exceeds the need 197.34 standard because of receipt of earned or unearned lump-sum 197.35 income, the recipient will be ineligible for the full number of 197.36 months. To calculate, divide the sum of the lump-sum income and 198.1 other income by the monthly need standard for a single adult or 198.2 eligible couple. Any income remaining from this calculation is 198.3 income in the first month following the period of 198.4 ineligibility. The first month of ineligibility is the payment 198.5 month that corresponds with the budget month in which the 198.6 lump-sum income was received. A period of ineligibility must be 198.7 shortened when the standard of need increases and the amount the 198.8 recipient would have received also changes because an amount is 198.9 documented as stolen, an amount is unavailable because a member 198.10 of the assistance unit left the unit with that amount and has 198.11 not returned, an amount is paid by the recipient during the 198.12 period of ineligibility to cover a cost that would not otherwise 198.13 qualify for emergency assistance, or the recipient incurs and 198.14 pays for medical expenses which would be covered by general 198.15 assistance medical coverage if eligibility existed. 198.16 Sec. 34. Minnesota Statutes 1996, section 256D.055, is 198.17 amended to read: 198.18 256D.055 [COUNTY DESIGN; WORK FOCUSED PROGRAM.] 198.19 The commissioner of human services shall issue a request 198.20 for proposals from counties to submit a plan for developing and 198.21 implementing a county-designed program. The plan shall be for 198.22 first-time applicants foraid to families with dependent198.23children (AFDC)Minnesota family investment program-statewide 198.24 (MFIP-S) and family general assistance (FGA) and must emphasize 198.25 the importance of becoming employed and oriented into the work 198.26 force in order to become self-sufficient. The plan must target 198.27 public assistance applicants who are most likely to become 198.28 self-sufficient quickly with short-term assistance or services 198.29 such as child care, child support enforcement, or employment and 198.30 training services. 198.31 The plan may include vendor payments, mandatory job search, 198.32 refocusing existing county or provider efforts, or other program 198.33 features. The commissioner may approve a county plan which 198.34 allows a county to use other program funding for the county work 198.35 focus program in a more flexible manner. Nothing in this 198.36 section shall allow payments made to the public assistance 199.1 applicant to be less than the amount the applicant would have 199.2 received if the program had not been implemented, or reduce or 199.3 eliminate a category of eligible participants from the program 199.4 without legislative approval. 199.5 The commissioner shall not approve a county plan that would 199.6 have an adverse impact on the Minnesota family investment plan 199.7 demonstration. If the plan is approved by the commissioner, the 199.8 county may implement the plan. If the plan is approved by the 199.9 commissioner, but a federal waiver is necessary to implement the 199.10 plan, the commissioner shall apply for the necessary federal 199.11 waivers. 199.12 Sec. 35. Minnesota Statutes 1996, section 256D.06, 199.13 subdivision 2, is amended to read: 199.14 Subd. 2. Notwithstanding the provisions of subdivision 1, 199.15 a grant of general assistance shall be made to an eligible 199.16individual,single adult or married couple, or familyfor an 199.17 emergency need, as defined in rules promulgated by the 199.18 commissioner, where the recipient requests temporary assistance 199.19 not exceeding 30 days if an emergency situation appears to exist 199.20and the individual is ineligible for the program of emergency199.21assistance under aid to families with dependent children and is199.22not a recipient of aid to families with dependent children at199.23the time of application hereunder. If an applicant or recipient 199.24 relates facts to the county agency which may be sufficient to 199.25 constitute an emergency situation, the county agency shall 199.26 advise the person of the procedure for applying for assistance 199.27pursuantaccording to this subdivision. 199.28 Sec. 36. Minnesota Statutes 1996, section 256D.08, 199.29 subdivision 1, is amended to read: 199.30 Subdivision 1. In determining eligibility of afamily,199.31 single adult or married couple, or individual there shall be199.32excludedthe following resources shall be excluded: 199.33 (1) real or personal property or liquid assets which do not 199.34 exceedthose permitted under the federally aided assistance199.35program known as aid to families with dependent children$1,000; 199.36 and 200.1 (2) other property which has been determined,in accordance200.2with and subjectaccording to limitations contained in rules 200.3 promulgated by the commissioner, to be essential tothe family200.4or individuala single adult or married couple as a means of 200.5 self-support or self-care or which is producing income that is 200.6 being used for the support of theindividual or familysingle 200.7 adult or married couple. The commissioner shall further provide 200.8 by rule the conditions for those situations in which property 200.9 not excluded under this subdivision may be retained by 200.10 thefamily or individualsingle adult or married couple where 200.11 there is a reasonable probability that in the foreseeable future 200.12 the property will be used for the self-support of theindividual200.13or familysingle adult or married couple; and 200.14 (3) payments, madepursuantaccording to litigation and 200.15 subsequent appropriation by the United States Congress, of funds 200.16 to compensate members of Indian tribes for the taking of tribal 200.17 land by the federal government. 200.18 Sec. 37. Minnesota Statutes 1996, section 256D.08, 200.19 subdivision 2, is amended to read: 200.20 Subd. 2. Notwithstanding any other provision of sections 200.21 256D.01 to 256D.21, the commissioner shall provide by rule for 200.22 the exclusion of property from the determination of eligibility 200.23 for general assistance when it appears likely that the need for 200.24 general assistance will not exceed 30 days or an undue hardship 200.25 would be imposed onan individual or familya single adult or 200.26 married couple by the forced disposal of the property. 200.27 Sec. 38. Minnesota Statutes 1996, section 256D.09, is 200.28 amended by adding a subdivision to read: 200.29 Subd. 2b. If at any time there is verification that the 200.30 client's disability is dependent upon their continued drug 200.31 addiction or alcoholism, general assistance for rent and 200.32 utilities must be made in the form of vendor payments. 200.33 Verification of drug addiction or alcoholism can be 200.34 received from: 200.35 (1) denial of Social Security benefits based on drug 200.36 addiction or alcoholism; 201.1 (2) statement from the state medical review team that the 201.2 person's disability is dependent upon continued drug addiction 201.3 or alcoholism; or 201.4 (3) doctor's statement that the person's disability is 201.5 dependent upon continued drug addiction or alcoholism. 201.6 Sec. 39. Minnesota Statutes 1996, section 256D.435, 201.7 subdivision 3, is amended to read: 201.8 Subd. 3. [APPLICATION FOR FEDERALLY FUNDED BENEFITS.] 201.9 Persons who live with the applicant or recipient, who have unmet 201.10 needs and for whom the applicant or recipient has financial 201.11 responsibility, must apply for and, if eligible, acceptAFDC201.12 MFIP-S and other federally funded benefits. 201.13 Sec. 40. Minnesota Statutes 1996, section 256D.44, 201.14 subdivision 5, is amended to read: 201.15 Subd. 5. [SPECIAL NEEDS.] In addition to the state 201.16 standards of assistance established in subdivisions 1 to 4, 201.17 payments are allowed for the following special needs of 201.18 recipients of Minnesota supplemental aid who are not residents 201.19 of a nursing home, a regional treatment center, or a group 201.20 residential housing facility:. 201.21 (a) The county agency shall pay a monthly allowance for 201.22 medically prescribed diets payable underthe AFDC program201.23 Minnesota family investment program-statewide if the cost of 201.24 those additional dietary needs cannot be met through some other 201.25 maintenance benefit. 201.26 (b) Payment for nonrecurring special needs must be allowed 201.27 for necessary home repairs or necessary repairs or replacement 201.28 of household furniture and appliances using the payment standard 201.29 ofthe AFDC programMinnesota family investment 201.30 program-statewide for these expenses, as long as other funding 201.31 sources are not available. 201.32 (c) A fee for guardian or conservator service is allowed at 201.33 a reasonable rate negotiated by the county or approved by the 201.34 court. This rate shall not exceed five percent of the 201.35 assistance unit's gross monthly income up to a maximum of $100 201.36 per month. If the guardian or conservator is a member of the 202.1 county agency staff, no fee is allowed. 202.2 (d) The county agency shall continue to pay a monthly 202.3 allowance of $68 for restaurant meals for a person who was 202.4 receiving a restaurant meal allowance on June 1, 1990, and who 202.5 eats two or more meals in a restaurant daily. The allowance 202.6 must continue until the person has not received Minnesota 202.7 supplemental aid for one full calendar month or until the 202.8 person's living arrangement changes and the person no longer 202.9 meets the criteria for the restaurant meal allowance, whichever 202.10 occurs first. 202.11 (e) A fee of ten percent of the recipient's gross income or 202.12 $25, whichever is less, is allowed for representative payee 202.13 services provided by an agency that meets the requirements under 202.14 SSI regulations to charge a fee for representative payee 202.15 services. This special need is available to all recipients of 202.16 Minnesota supplemental aid regardless of their living 202.17 arrangement. 202.18 Sec. 41. Minnesota Statutes 1996, section 256F.04, 202.19 subdivision 1, is amended to read: 202.20 Subdivision 1. [FAMILY PRESERVATION FUND.] The 202.21 commissioner shall establish a family preservation fund to 202.22 assist counties in providing placement prevention and family 202.23 reunification services.This fund shall include a basic grant202.24for family preservation services, a placement earnings grant202.25under section 256.8711, subdivision 6b, paragraph (a), and a202.26development grant under section 256.8711, subdivision 6a, to202.27assist counties in developing and expanding their family202.28preservation core services as defined in section 256F.03,202.29subdivision 10. Beginning with calendar year 1998, after each202.30annual or quarterly calculation, these three component grants202.31shall be added together and treated as a single family202.32preservation grant.202.33 Sec. 42. Minnesota Statutes 1996, section 256F.04, 202.34 subdivision 2, is amended to read: 202.35 Subd. 2. [FORMS AND INSTRUCTIONS.] The commissioner shall 202.36 provide necessary forms and instructions to the counties for 203.1 their community social services plan, as required in section 203.2 256E.09, that incorporate the information necessary to apply for 203.3 a family preservation fund grant, and to exercise county options 203.4 under section 256F.05,subdivisions 7, paragraph (a), or203.5 subdivision 8, paragraph (c). 203.6 Sec. 43. Minnesota Statutes 1996, section 256F.05, 203.7 subdivision 2, is amended to read: 203.8 Subd. 2. [MONEY AVAILABLE FORTHE BASIC GRANTFAMILY 203.9 PRESERVATION.] Money appropriated for family preservation under 203.10 sections 256F.04 to 256F.07, together with an amount as 203.11 determined by the commissioner oftitle IV-Bfunds distributed 203.12 to Minnesota according tothe Social Security Act,United States 203.13 Code, title 42, chapter 7, subchapter IV, part B, section 621, 203.14 must be distributed to counties on a calendar year basis 203.15 according to the formula in subdivision 3. 203.16 Sec. 44. Minnesota Statutes 1996, section 256F.05, 203.17 subdivision 3, is amended to read: 203.18 Subd. 3. [BASICGRANT FORMULA.] (a) The amount of money 203.19 allocated to counties under subdivision 2 shall first be 203.20 allocated in amounts equal to each county's guaranteed floor 203.21 according to paragraph (b), and second, any remaining available 203.22 funds allocated as follows: 203.23 (1)9050 percent of the funds shall be allocated based on 203.24 the population of the county under age 19 years as compared to 203.25 the state as a whole as determined by the most recent data from 203.26 the state demographer's office;and203.27 (2)ten20 percent of funds shall be allocated based on the 203.28 county's percentage share of the unduplicated number of families 203.29 who received family preservation services under section 256F.03, 203.30 subdivision 5, paragraphs (a), (b), (c), and (e) in the most 203.31 recent calendar year available as determined by the 203.32 commissioner; 203.33 (3) ten percent of the funds shall be allocated based on 203.34 the county's percentage share of the unduplicated number of 203.35 children in substitute care in the most recent calendar year 203.36 available as determined by the commissioner; 204.1 (4) ten percent of the funds shall be allocated based on 204.2 the county's percentage share of the number of determined 204.3 maltreatment reports in the most recent calendar year available 204.4 as determined by the commissioner; 204.5 (5) five percent of the funds shall be allocated based on 204.6 the county's percentage share of the number of American Indian 204.7 children under age 18 residing in the county in the most recent 204.8 calendar year as determined by the commissioner; and 204.9 (6) five percent of the funds shall be allocated based on 204.10 the county's percentage share of the number ofminoritychildren 204.11 of color receiving children's case management services as 204.12 defined by the commissioner based on the most recent data as 204.13 determined by the commissioner. 204.14 (b) Each county'sbasicgrant guaranteed floor shall be 204.15 calculated as follows: 204.16 (1) 90 percent of the county's allocation received in the 204.17 preceding calendar year. For calendar year 1996 only, the204.18allocation received in the preceding calendar year shall be204.19determined by the commissioner based on the funding previously204.20distributed as separate grants under sections 256F.04 to 256F.07204.21 or $25,000, whichever is greater; and 204.22 (2) when the amounts of funds available for allocation is 204.23 less than the amount available in the previous year, each 204.24 county's previous year allocation shall be reduced in proportion 204.25 to the reduction in the statewide funding, for the purpose of 204.26 establishing the guaranteed floor. 204.27 (c) The commissioner shall regularly review the use of 204.28 family preservation fund allocations by county. The 204.29 commissioner may reallocate unexpended or unencumbered money at 204.30 any time among those counties that have expended or are 204.31 projected to expend their full allocation. 204.32 (d) For the period of July 1, 1997 to December 31, 1998 204.33 only, each county shall receive an 18-month allocation. For the 204.34 purposes of determining the guaranteed floor for this 18-month 204.35 allocation, the allocation received in the preceding calendar 204.36 year shall be determined by the commissioner based on the 205.1 funding previously distributed separately under sections 205.2 256.8711 and 256F.04. 205.3 Sec. 45. Minnesota Statutes 1996, section 256F.05, 205.4 subdivision 4, is amended to read: 205.5 Subd. 4. [PAYMENTS.] The commissioner shall make grant 205.6 payments to each county whose biennial community social services 205.7 plan has been approved under section 256F.04, subdivision 2. 205.8 Thebasicgrantunder subdivisions 2 and 3 and the development205.9grant under section 256.8711, subdivision 6a,shall be paid to 205.10 counties in four installments per year. The commissioner may 205.11 certify the payments for the first three months of a calendar 205.12 year. Subsequent payments shall be based on reported 205.13 expenditures and may be adjusted for anticipated spending 205.14 patterns.The placement earnings grant under section 256.8711,205.15subdivision 6b, paragraph (a), shall be based on earnings and205.16coordinated with the other payments. In calendar years 1996 and205.171997, the placement earnings grant and the development grant205.18shall be distributed separately from the basic grant, except as205.19provided in subdivision 7, paragraph (a). Beginning with205.20calendar year 1998, after each annual or quarterly calculation,205.21these three component grants shall be added together into a205.22single family preservation fund grant and treated as a single205.23grant.205.24 Sec. 46. Minnesota Statutes 1996, section 256F.05, 205.25 subdivision 8, is amended to read: 205.26 Subd. 8. [USES OF FAMILY PRESERVATION FUND GRANTS.]For205.27both basic grants and single family preservation fund grants:205.28 (a) A county which has not demonstrated that year that its 205.29 family preservation core services are developed as provided in 205.30 subdivision 1a, must use its family preservation fund grant 205.31 exclusively for family preservation services defined in section 205.32 256F.03, subdivision 5, paragraphs (a), (b), (c), and (e). 205.33 (b) A county which has demonstrated that year that its 205.34 family preservation core services are developed becomes eligible 205.35 either to continue using its family preservation fund grant as 205.36 provided in paragraph (a), or to exercise the expanded service 206.1 option under paragraph (c). 206.2 (c) The expanded service option permits an eligible county 206.3 to use its family preservation fund grant for child welfare 206.4preventativepreventive servicesas defined in section 256F.10,206.5subdivision 7, paragraph (d). For purposes of this section, 206.6 child welfare preventive services are those services directed 206.7 toward a specific child or family that further the goals of 206.8 section 256F.01 and include assessments, family preservation 206.9 services, service coordination, community-based treatment, 206.10 crisis nursery services when the parents retain custody and 206.11 there is no voluntary placement agreement with a child-placing 206.12 agency, respite care except when it is provided under a medical 206.13 assistance waiver, home-based services, and other related 206.14 services. For purposes of this section, child welfare 206.15 preventive services shall not include shelter care or other 206.16 placement services under the authority of the court or public 206.17 agency to address an emergency. To exercise this option, an 206.18 eligible county must notify the commissioner in writing of its 206.19 intention to do so no later than 30 days into the quarter during 206.20 which it intends to begin or in its county plan, as provided in 206.21 section 256F.04, subdivision 2. Effective with the first day of 206.22 that quarter, the county must maintain its base level of 206.23 expenditures for child welfarepreventativepreventive services 206.24 and use the family preservation fund to expand them. The base 206.25 level of expenditures for a county shall be that established 206.26 under section 256F.10, subdivision 7. For counties which have 206.27 no such base established, a comparable base shall be established 206.28 with the base year being the calendar year ending at least two 206.29 calendar quarters before the first calendar quarter in which the 206.30 county exercises its expanded service option. The commissioner 206.31 shall, at the request of the counties, reduce, suspend, or 206.32 eliminate either or both of a county's obligations to continue 206.33 the base level of expenditures and to expand child welfare 206.34preventativepreventive servicesbased on conditions described206.35in section 256F.10, subdivision 7, paragraph (b) or (c)under 206.36 extraordinary circumstances. 207.1(d) Each county's placement earnings and development grant207.2shall be determined under section 256.8711, but after each207.3annual or quarterly calculation, if added to that county's basic207.4grant, the three component grants shall be treated as a single207.5family preservation fund grant.207.6 Sec. 47. Minnesota Statutes 1996, section 256F.06, 207.7 subdivision 1, is amended to read: 207.8 Subdivision 1. [RESPONSIBILITIES.] A county board may, 207.9 alone or in combination with other county boards, apply for a 207.10 family preservation fund grant as provided in section 256F.04, 207.11 subdivision 2. Upon approval of the grant, the county board may 207.12 contract for or directly provide family-based and other eligible 207.13 services. A county board may contract with or directly provide 207.14 eligible services to children and families through a local 207.15 collaborative. 207.16 Sec. 48. Minnesota Statutes 1996, section 256F.06, 207.17 subdivision 2, is amended to read: 207.18 Subd. 2. [DEVELOPING FAMILY PRESERVATION CORE SERVICES.]A207.19county board shall endeavor to develop and expand its family207.20preservation core services.When a county can demonstrate that 207.21 its family preservation core services are developed as provided 207.22 in section 256F.05, subdivision 1a, a county board becomes 207.23 eligible to exercise the expanded service option under section 207.24 256F.05, subdivision 8, paragraph (c).For calendar years 1996207.25and 1997, the county board also becomes eligible to request that207.26its basic, placement earnings, and development grants be added207.27into a single grant under section 256F.05, subdivision 7,207.28paragraph (a).207.29 Sec. 49. Minnesota Statutes 1996, section 259.67, 207.30 subdivision 4, is amended to read: 207.31 Subd. 4. [ELIGIBILITY CONDITIONS.] (a) The placing agency 207.32 shalldetermineuse the AFDC requirements in effect on June 1, 207.33 1995, when determining the child's eligibility for adoption 207.34 assistance under title IV-E of the Social Security Act. If the 207.35 child does not qualify, the placing agency shall certify a child 207.36 as eligible for state funded adoption assistance only if the 208.1 following criteria are met: 208.2 (1) Due to the child's characteristics or circumstances it 208.3 would be difficult to provide the child an adoptive home without 208.4 adoption assistance. 208.5 (2)(i) A placement agency has made reasonable efforts to 208.6 place the child for adoption without adoption assistance, but 208.7 has been unsuccessful; or 208.8 (ii) the child's licensed foster parents desire to adopt 208.9 the child and it is determined by the placing agency that the 208.10 adoption is in the best interest of the child. 208.11 (3) The child has been a ward of the commissioner or a 208.12 Minnesota-licensed child-placing agency. 208.13 (b) For purposes of this subdivision, the characteristics 208.14 or circumstances that may be considered in determining whether a 208.15 child is a child with special needs under United States Code, 208.16 title 42, chapter 7, subchapter IV, part E, or meets the 208.17 requirements of paragraph (a), clause (1), are the following: 208.18 (1) The child is a member of a sibling group to be placed 208.19 as one unit in which at least one sibling is older than 15 208.20 months of age or is described in clause (2) or (3). 208.21 (2) The child has documented physical, mental, emotional, 208.22 or behavioral disabilities. 208.23 (3) The child has a high risk of developing physical, 208.24 mental, emotional, or behavioral disabilities. 208.25 (c) When a child's eligibility for adoption assistance is 208.26 based upon the high risk of developing physical, mental, 208.27 emotional, or behavioral disabilities, payments shall not be 208.28 made under the adoption assistance agreement unless and until 208.29 the potential disability manifests itself as documented by an 208.30 appropriate health care professional. 208.31 Sec. 50. [REPEALER.] 208.32 (a) Minnesota Statutes 1996, sections 256.8711; 256D.01, 208.33 subdivision 1e; 256D.02, subdivisions 5 and 6; 256D.05; 208.34 256D.0511, subdivisions 1, 3, 4, and 5; and 256F.05, 208.35 subdivisions 5 and 7, are repealed. 208.36 (b) Minnesota Statutes 1996, section 256B.055, subdivision 209.1 3, is repealed June 30, 1997. 209.2 (c) Minnesota Statutes 1996, section 256B.062, is repealed 209.3 June 30, 1997. 209.4 (d) Minnesota Statutes 1996, section 256D.02, subdivision 209.5 5, is repealed effective January 1, 1998. 209.6 Sec. 51. [EFFECTIVE DATE.] 209.7 Sections 1 to 50 are effective July 1, 1997. 209.8 ARTICLE 5 209.9 ACCELERATING STATE PAYMENTS 209.10 Section 1. Minnesota Statutes 1996, section 256.025, 209.11 subdivision 2, is amended to read: 209.12 Subd. 2. [COVERED PROGRAMS AND SERVICES.] The procedures 209.13 in this section govern payment of county agency expenditures for 209.14 benefits and services distributed under the following programs: 209.15 (1) aid to families with dependent children in effect until 209.16 June 30, 1997, under sections 256.82, subdivision 1, and 209.17 256.935, subdivision 1, for assistance costs incurred prior to 209.18 July 1, 1997; 209.19 (2) medical assistance under sections 256B.041, subdivision 209.20 5, and 256B.19, subdivision 1, for assistance costs incurred 209.21 prior to July 1, 1997; 209.22 (3) general assistance medical care under section 256D.03, 209.23 subdivision 6, for assistance costs incurred prior to July 1, 209.24 1997; 209.25 (4) general assistance under section 256D.03, subdivision 209.26 2, for assistance costs incurred prior to July 1, 1997; 209.27 (5) work readiness under section 256D.03, subdivision 2, 209.28 for assistance costs incurred prior to July 1, 1995; 209.29 (6) emergency assistance under section 256.871, subdivision 209.30 6, for assistance costs incurred prior to July 1, 1997; 209.31 (7) Minnesota supplemental aid under section 256D.36, 209.32 subdivision 1, for assistance costs incurred prior to July 1, 209.33 1997; 209.34 (8) preadmission screening and alternative care grants for 209.35 assistance costs incurred prior to July 1, 1997; 209.36 (9) work readiness services under section 256D.051 for 210.1 employment and training services costs incurred prior to July 1, 210.2 1995; 210.3 (10) case management services under section 256.736, 210.4 subdivision 13, for case management service costs incurred prior 210.5 to July 1, 1995; 210.6 (11) general assistance claims processing, medical 210.7 transportation and related costs for assistance costs incurred 210.8 prior to July 1, 1997; 210.9 (12) medical assistance, medical transportation and related 210.10 costs for assistance costs incurred prior to July 1, 1997; and 210.11 (13) group residential housing under section 256I.05, 210.12 subdivision 8, for assistance costs incurred prior to July 1, 210.13 1997, transferred from programs in clauses (4) and (7). 210.14 Sec. 2. Minnesota Statutes 1996, section 256.025, 210.15 subdivision 4, is amended to read: 210.16 Subd. 4. [PAYMENT SCHEDULE.] Except as provided for in 210.17 subdivision 3, beginning July 1, 1991, the state will reimburse 210.18 counties, according to the following payment schedule, for the 210.19 county share of county agency expenditures for the programs 210.20 specified in subdivision 2. 210.21 (a) Beginning July 1, 1991, the state will reimburse or pay 210.22 the county share of county agency expenditures according to the 210.23 reporting cycle as established by the commissioner, for the 210.24 programs identified in subdivision 2. Payments for the period 210.25 of January 1 through July 31, for calendar years 1991, 1992, 210.26 1993, 1994, and 1995 shall be made on or before July 10 in each 210.27 of those years. Payments for the period August through December 210.28 for calendar years 1991, 1992, 1993, 1994, and 1995 shall be 210.29 made on or before the third of each month thereafter through 210.30 December 31 in each of those years. 210.31 (b) Payment for 1/24 of the base amount and the January 210.32 1996 county share of county agency expenditures growth amount 210.33 for the programs identified in subdivision 2 shall be made on or 210.34 before January 3, 1996. For the period of February 1, 1996 210.35 through July 31, 1996, payment of the base amount shall be made 210.36 on or before July 10, 1996, and payment of the growth amount 211.1 over the base amount shall be made on or before July 10, 1996. 211.2 Payments for the period August 1996 through December 1996 shall 211.3 be made on or before the third of each month thereafter through 211.4 December 31, 1996. 211.5 (c) Payment for the county share of county agency 211.6 expenditures during January 1997 shall be made on or before 211.7 January 3, 1997. Payment for 1/24 of the base amount and the 211.8 February 1997 county share of county agency expenditures growth 211.9 amount for the programs identified in subdivision 2 shall be 211.10 made on or before February 3, 1997. For the period of March 1, 211.11 1997 throughJuly 31June 30, 1997, payment of the base amount 211.12 shall be made on or before July 10, 1997, and payment of the 211.13 growth amount over the base amount shall be made on or before 211.14 July 10, 1997.Payments for the period August 1997 through211.15December 1997 shall be made on or before the third of each month211.16thereafter through December 31, 1997.211.17(d) Monthly payments for the county share of county agency211.18expenditures from January 1998 through February 1998 shall be211.19made on or before the third of each month through February211.201998. Payment for 1/24 of the base amount and the March 1998211.21county share of county agency expenditures growth amount for the211.22programs identified in subdivision 2 shall be made on or before211.23March 1998. For the period of April 1, 1998 through July 31,211.241998, payment of the base amount shall be made on or before July211.2510, 1998, and payment of the growth amount over the base amount211.26shall be made on or before July 10, 1998. Payments for the211.27period August 1998 through December 1998 shall be made on or211.28before the third of each month thereafter through December 31,211.291998.211.30(e) Monthly payments for the county share of county agency211.31expenditures from January 1999 through March 1999 shall be made211.32on or before the third of each month through March 1999.211.33Payment for 1/24 of the base amount and the April 1999 county211.34share of county agency expenditures growth amount for the211.35programs identified in subdivision 2 shall be made on or before211.36April 3, 1999. For the period of May 1, 1999 through July 31,212.11999, payment of the base amount shall be made on or before July212.210, 1999, and payment of the growth amount over the base amount212.3shall be made on or before July 10, 1999. Payments for the212.4period August 1999 through December 1999 shall be made on or212.5before the third of each month thereafter through December 31,212.61999.212.7(f) Monthly payments for the county share of county agency212.8expenditures from January 2000 through April 2000 shall be made212.9on or before the third of each month through April 2000.212.10Payment for 1/24 of the base amount and the May 2000 county212.11share of county agency expenditures growth amount for the212.12programs identified in subdivision 2 shall be made on or before212.13May 3, 2000. For the period of June 1, 2000 through July 31,212.142000, payment of the base amount shall be made on or before July212.1510, 2000, and payment of the growth amount over the base amount212.16shall be made on or before July 10, 2000. Payments for the212.17period August 2000 through December 2000 shall be made on or212.18before the third of each month thereafter through December 31,212.192000.212.20(g) Monthly payments for the county share of county agency212.21expenditures from January 2001 through May 2001 shall be made on212.22or before the third of each month through May 2001. Payment for212.231/24 of the base amount and the June 2001 county share of county212.24agency expenditures growth amount for the programs identified in212.25subdivision 2 shall be made on or before June 3, 2001. Payments212.26for the period July 2001 through December 2001 shall be made on212.27or before the third of each month thereafter through December212.2831, 2001.212.29(h) Effective January 1, 2002, monthly payments for the212.30county share of county agency expenditures shall be made212.31subsequent to the first of each month.212.32Payments under this subdivision are subject to the212.33provisions of section 256.017.212.34 Sec. 3. Minnesota Statutes 1996, section 256.82, 212.35 subdivision 1, is amended to read: 212.36 Subdivision 1. [DIVISION OF COSTS AND PAYMENTS.] Based 213.1 upon estimates submitted by the county agency to the state 213.2 agency, which shall state the estimated required expenditures 213.3 for the succeeding month, upon the direction of the state 213.4 agency, payment shall be made monthly in advance by the state to 213.5 the counties of all federal funds available for that purpose for 213.6 such succeeding month. The state share of the nonfederal 213.7 portion of county agency expenditures shall be85100 percent. 213.8and the county share shall be 15 percent. Benefits shall be213.9issued to recipients by the state or county and funded according213.10to section 256.025, subdivision 3, subject to provisions of213.11section 256.017. Beginning July 1, 1991, the state will213.12reimburse counties according to the payment schedule in section213.13256.025 for the county share of county agency expenditures under213.14this subdivision from January 1, 1991, on.Payment to counties 213.15 under this subdivision is subject to the provisions of section 213.16 256.017. Adjustment of any overestimate or underestimate made 213.17 by any county shall be paid upon the direction of the state 213.18 agency in any succeeding month. 213.19 Sec. 4. Minnesota Statutes 1996, section 256.871, 213.20 subdivision 6, is amended to read: 213.21 Subd. 6. [REPORTS OF ESTIMATED EXPENDITURES; PAYMENTS.] 213.22 The county agency shall submit to the state agency reports 213.23 required under section 256.01, subdivision 2, paragraph (17). 213.24 Fiscal reports shall estimate expenditures for each succeeding 213.25 month in such form as required by the state agency. The state 213.26 share of the nonfederal portion of eligible expenditures shall 213.27 beten100 percentand the county share shall be 90 percent. 213.28Benefits shall be issued to recipients by the state or county213.29and funded according to section 256.025, subdivision 3, subject213.30to provisions of section 256.017. Beginning July 1, 1991, the213.31state will reimburse counties according to the payment schedule213.32set forth in section 256.025 for the county share of county213.33agency expenditures made under this subdivision from January 1,213.341991, on. Payment under this subdivision is subject to the213.35provisions of section 256.017.Adjustment of any overestimate 213.36 or underestimate made by any county shall be paid upon the 214.1 direction of the state agency in any succeeding month. 214.2 Sec. 5. Minnesota Statutes 1996, section 256.935, is 214.3 amended to read: 214.4 256.935 [FUNERAL EXPENSES, PAYMENT BY COUNTY AGENCY.] 214.5 Subdivision 1. On the death of any person receiving public 214.6 assistance through aid to dependent children, the county agency 214.7 shall pay an amount for funeral expenses not exceeding the 214.8 amount paid for comparable services under section 261.035 plus 214.9 actual cemetery charges. No funeral expenses shall be paid if 214.10 the estate of the deceased is sufficient to pay such expenses or 214.11 if the spouse, who was legally responsible for the support of 214.12 the deceased while living, is able to pay such expenses; 214.13 provided, that the additional payment or donation of the cost of 214.14 cemetery lot, interment, religious service, or for the 214.15 transportation of the body into or out of the community in which 214.16 the deceased resided, shall not limit payment by the county 214.17 agency as herein authorized. Freedom of choice in the selection 214.18 of a funeral director shall be granted to persons lawfully 214.19 authorized to make arrangements for the burial of any such 214.20 deceased recipient. In determining the sufficiency of such 214.21 estate, due regard shall be had for the nature and marketability 214.22 of the assets of the estate. The county agency may grant 214.23 funeral expenses where the sale would cause undue loss to the 214.24 estate. Any amount paid for funeral expenses shall be a prior 214.25 claim against the estate, as provided in section 524.3-805, and 214.26 any amount recovered shall be reimbursed to the agency which 214.27 paid the expenses. The commissioner shall specify requirements 214.28 for reports, including fiscal reports, according to section 214.29 256.01, subdivision 2, paragraph (17). The state share shall 214.30 pay the entire amount of county agency expendituresshall be 50214.31percent and the county share shall be 50 percent. Benefits 214.32 shall be issued to recipients by the state or countyand funded214.33according to section 256.025, subdivision 3,subject to 214.34 provisions of section 256.017. 214.35Beginning July 1, 1991, the state will reimburse counties214.36according to the payment schedule set forth in section 256.025215.1for the county share of county agency expenditures made under215.2this subdivision from January 1, 1991, on. Payment under this215.3subdivision is subject to the provisions of section 256.017.215.4 Sec. 6. Minnesota Statutes 1996, section 256B.0913, 215.5 subdivision 14, is amended to read: 215.6 Subd. 14. [REIMBURSEMENT AND RATE ADJUSTMENTS.] (a) 215.7 Reimbursement for expenditures for the alternative care services 215.8 as approved by the client's case manager shall be through the 215.9 invoice processing procedures of the department's Medicaid 215.10 Management Information System (MMIS). To receive reimbursement, 215.11 the county or vendor must submit invoices within 12 months 215.12 following the date of service. The county agency and its 215.13 vendors under contract shall not be reimbursed for services 215.14 which exceed the county allocation. 215.15 (b) If a county collects less than 50 percent of the client 215.16 premiums due under subdivision 12, the commissioner may withhold 215.17 up to three percent of the county's final alternative care 215.18 program allocation determined under subdivisions 10 and 11. 215.19(c) Beginning July 1, 1991, the state will reimburse215.20counties, up to the limits of state appropriations, according to215.21the payment schedule in section 256.025 for the county share of215.22costs incurred under this subdivision on or after January 1,215.231991, for individuals who would be eligible for medical215.24assistance within 180 days of admission to a nursing home.215.25(d)(c) For fiscal years beginning on or after July 1, 215.26 1993, the commissioner of human services shall not provide 215.27 automatic annual inflation adjustments for alternative care 215.28 services. The commissioner of finance shall include as a budget 215.29 change request in each biennial detailed expenditure budget 215.30 submitted to the legislature under section 16A.11 annual 215.31 adjustments in reimbursement rates for alternative care services 215.32 based on the forecasted percentage change in the Home Health 215.33 Agency Market Basket of Operating Costs, for the fiscal year 215.34 beginning July 1, compared to the previous fiscal year, unless 215.35 otherwise adjusted by statute. The Home Health Agency Market 215.36 Basket of Operating Costs is published by Data Resources, Inc. 216.1 The forecast to be used is the one published for the calendar 216.2 quarter beginning January 1, six months prior to the beginning 216.3 of the fiscal year for which rates are set. 216.4(e)(d) The county shall negotiate individual rates with 216.5 vendors and may be reimbursed for actual costs up to the greater 216.6 of the county's current approved rate or 60 percent of the 216.7 maximum rate in fiscal year 1994 and 65 percent of the maximum 216.8 rate in fiscal year 1995 for each alternative care service. 216.9 Notwithstanding any other rule or statutory provision to the 216.10 contrary, the commissioner shall not be authorized to increase 216.11 rates by an annual inflation factor, unless so authorized by the 216.12 legislature. 216.13(f)(e) On July 1, 1993, the commissioner shall increase 216.14 the maximum rate for home delivered meals to $4.50 per meal. 216.15 Sec. 7. Minnesota Statutes 1996, section 256B.19, 216.16 subdivision 1, is amended to read: 216.17 Subdivision 1. [DIVISION OF COST.] (a) The state and 216.18 county share of medical assistance costs not paid by federal 216.19 fundsshall be as follows:216.20(1) ninety percent state funds and ten percent county216.21funds, unless otherwise provided below;216.22(2)beginning January 1, 1992, shall be 50 percent state 216.23 funds and 50 percent county funds for the cost of placement of 216.24 severely emotionally disturbed children in regional treatment 216.25 centers. 216.26For counties that participate in a Medicaid demonstration216.27project under sections 256B.69 and 256B.71, the division of the216.28nonfederal share of medical assistance expenses for payments216.29made to prepaid health plans or for payments made to health216.30maintenance organizations in the form of prepaid capitation216.31payments, this division of medical assistance expenses shall be216.3295 percent by the state and five percent by the county of216.33financial responsibility.216.34 (b) In counties where prepaid health plans are under 216.35 contract to the commissioner to provide services to medical 216.36 assistance recipients, the cost of court ordered treatment 217.1 ordered without consulting the prepaid health plan that does not 217.2 include diagnostic evaluation, recommendation, and referral for 217.3 treatment by the prepaid health plan is the responsibility of 217.4 the county of financial responsibility. 217.5 Sec. 8. Minnesota Statutes 1996, section 256B.19, 217.6 subdivision 2a, is amended to read: 217.7 Subd. 2a. [DIVISION OF COSTS.]Beginning July 1, 1991, the217.8state shall reimburse counties according to the payment schedule217.9in section 256.025 for the nonfederal share of costs incurred217.10for medical assistance common carrier transportation and related217.11travel expenses provided for medical purposes to medical217.12assistance recipients from January 1, 1991, on. For purposes of217.13this subdivision, transportation shall have the meaning given it217.14in Code of Federal Regulations, title 42, section 440.170(a), as217.15amended through October 1, 1987, and travel expenses shall have217.16the meaning given in Code of Federal Regulations, title 42,217.17section 440.170(a)(3), as amended through October 1, 1987.217.18 The county shall ensure that only the least costly, most 217.19 appropriate transportation and travel expenses are used. The 217.20 state may enter into volume purchase contracts, or use a 217.21 competitive bidding process, whenever feasible, to minimize the 217.22 costs of transportation services. If the state has entered into 217.23 a volume purchase contract or used the competitive bidding 217.24 procedures of chapter 16B to arrange for transportation 217.25 services, the county may be required to use such arrangementsto217.26be eligible for state reimbursement of the 50 percent county217.27share of medical assistance common carrier transportation and217.28related travel expenses provided for medical purposes. 217.29 Sec. 9. Minnesota Statutes 1996, section 256B.19, 217.30 subdivision 2b, is amended to read: 217.31 Subd. 2b. [PILOT PROJECT REIMBURSEMENT.] In counties where 217.32 a pilot or demonstration project is operated under the medical 217.33 assistance program, the state may pay 100 percent of the 217.34 administrative costs for the pilot or demonstration project 217.35 after June 30, 1990.Reimbursement for these costs is subject217.36to section 256.025.218.1 Sec. 10. Minnesota Statutes 1996, section 256D.03, 218.2 subdivision 2, is amended to read: 218.3 Subd. 2.After December 31, 1980,State aid shall be paid 218.4 for75 percent ofall general assistance and grants up to the 218.5 standards of section 256D.01, subdivision 1a, and according to 218.6 procedures established by the commissioner, except as provided 218.7 for under section 256.017.Benefits shall be issued to218.8recipients by the state or county and funded according to218.9section 256.025, subdivision 3.218.10Beginning July 1, 1991, the state will reimburse counties218.11according to the payment schedule in section 256.025 for the218.12county share of county agency expenditures made under this218.13subdivision from January 1, 1991, on. Payment to counties under218.14this subdivision is subject to the provisions of section 256.017.218.15 Sec. 11. Minnesota Statutes 1996, section 256D.03, 218.16 subdivision 2a, is amended to read: 218.17 Subd. 2a. [COUNTY AGENCY OPTIONS.] Any county agency may, 218.18 from its own resources, make payments of general assistance: (a) 218.19 at a standard higher than that established by the commissioner 218.20 without reference to the standards of section 256D.01, 218.21 subdivision 1; or (b) to persons not meeting the eligibility 218.22 standards set forth in section 256D.05, subdivision 1, but for 218.23 whom the aid would further the purposes established in the 218.24 general assistance program in accordance with rules adopted by 218.25 the commissioner pursuant to the administrative procedure act. 218.26 The Minnesota department of human services may maintain client 218.27 records and issue these payments, providing the cost of benefits 218.28 is paid by the counties to the department of human servicesin218.29accordance with sectionsaccording to section 256.01and218.30256.025, subdivision 3. 218.31 Sec. 12. Minnesota Statutes 1996, section 256D.03, 218.32 subdivision 6, is amended to read: 218.33 Subd. 6. [DIVISION OF COSTS.] The state share of county 218.34 agency expenditures for general assistance medical care shall be 218.3590100 percentand the county share shall be ten percent. 218.36 Payments made under this subdivision shall be madein accordance219.1withaccording to sections 256B.041, subdivision 5 and 256B.19, 219.2 subdivision 1. In counties where a pilot or demonstration 219.3 project is operated for general assistance medical care 219.4 services, the state may pay 100 percent of the costs of 219.5 administering the pilot or demonstration project.Reimbursement219.6for these costs is subject to section 256.025.219.7Beginning July 1, 1991, the state will reimburse counties219.8according to the payment schedule in section 256.025 for the219.9county share of costs incurred under this subdivision from219.10January 1, 1991, on. Payment to counties under this subdivision219.11is subject to the provisions of section 256.017.219.12 Notwithstanding any provision to the contrary, beginning 219.13 July 1, 1991, the state shall pay 100 percent of the costs for 219.14 centralized claims processing by the department of 219.15 administration relative to claims beginning January 1, 1991, and 219.16 submitted on behalf of general assistance medical care 219.17 recipients by vendors in the general assistance medical care 219.18 program. 219.19 Beginning July 1, 1991, the state shall reimburse counties 219.20 up to the limit of state appropriations for general assistance 219.21 medical care common carrier transportation and related travel 219.22 expenses provided for medical purposes after December 31, 1990. 219.23Reimbursement shall be provided according to the payment219.24schedule set forth in section 256.025.For purposes of this 219.25 subdivision, transportation shall have the meaning given it in 219.26 Code of Federal Regulations, title 42, section 440.170(a), as 219.27 amended through October 1, 1987, and travel expenses shall have 219.28 the meaning given in Code of Federal Regulations, title 42, 219.29 section 440.170(a)(3), as amended through October 1, 1987. 219.30 The county shall ensure that only the least costly most 219.31 appropriate transportation and travel expenses are used. The 219.32 state may enter into volume purchase contracts, or use a 219.33 competitive bidding process, whenever feasible, to minimize the 219.34 costs of transportation services. If the state has entered into 219.35 a volume purchase contract or used the competitive bidding 219.36 procedures of chapter 16B to arrange for transportation 220.1 services, the county may be required to use such arrangements to 220.2 be eligible for state reimbursement for general assistance 220.3 medical care common carrier transportation and related travel 220.4 expenses provided for medical purposes. 220.5 In counties where prepaid health plans are under contract 220.6 to the commissioner to provide services to general assistance 220.7 medical care recipients, the cost of court ordered treatment 220.8 that does not include diagnostic evaluation, recommendation, or 220.9 referral for treatment by the prepaid health plan is the 220.10 responsibility of the county of financial responsibility. 220.11 Sec. 13. Minnesota Statutes 1996, section 256D.36, is 220.12 amended to read: 220.13 256D.36 [STATE PARTICIPATION.] 220.14 Subdivision 1. [STATE PARTICIPATION.] The state share of 220.15 aid paid shall be85100 percent.and the county share shall be220.1615 percent. Benefits shall be issued to recipients by the state220.17or county and funded according to section 256.025, subdivision220.183, subject to provisions of section 256.017.220.19Beginning July 1, 1991, the state will reimburse counties220.20according to the payment schedule in section 256.025 for the220.21county share of county agency expenditures for financial220.22benefits to individuals under this subdivision from January 1,220.231991, on. Payment to counties under this subdivision is subject220.24to the provisions of section 256.017.220.25 Sec. 14. [REPEALER.] 220.26 Minnesota Statutes 1996, sections 256.82, subdivision 1; 220.27 256B.041, subdivision 5; and 256B.19, subdivision 1a, are 220.28 repealed. 220.29 Sec. 15. [EFFECTIVE DATE.] 220.30 Sections 1 to 14 are effective July 1, 1997. 220.31 ARTICLE 6 220.32 TECHNICAL CHANGES; CROSS REFERENCES 220.33 Section 1. Minnesota Statutes 1996, section 13.46, 220.34 subdivision 1, is amended to read: 220.35 Subdivision 1. [DEFINITIONS.] As used in this section: 220.36 (a) "Individual" means an individualpursuantaccording to 221.1 section 13.02, subdivision 8, but does not include a vendor of 221.2 services. 221.3 (b) "Program" includes all programs for which authority is 221.4 vested in a component of the welfare systempursuantaccording 221.5 to statute or federal law, including, but not limited to,aid to221.6families with dependent childrenMinnesota family investment 221.7 program-statewide, medical assistance, general assistance,work221.8readiness,general assistance medical care, and child support 221.9 collections. 221.10 (c) "Welfare system" includes the department of human 221.11 services, local social services agencies, county welfare 221.12 agencies, the public authority responsible for child support 221.13 enforcement, human services boards, community mental health 221.14 center boards, state hospitals, state nursing homes, the 221.15 ombudsman for mental health and mental retardation, and persons, 221.16 agencies, institutions, organizations, and other entities under 221.17 contract to any of the above agencies to the extent specified in 221.18 the contract. 221.19 (d) "Mental health data" means data on individual clients 221.20 and patients of community mental health centers, established 221.21 under section 245.62, mental health divisions of counties and 221.22 other providers under contract to deliver mental health 221.23 services, or the ombudsman for mental health and mental 221.24 retardation. 221.25 (e) "Fugitive felon" means a person who has been convicted 221.26 of a felony and who has escaped from confinement or violated the 221.27 terms of probation or parole for that offense. 221.28 Sec. 2. Minnesota Statutes 1996, section 13.46, 221.29 subdivision 2, is amended to read: 221.30 Subd. 2. [GENERAL.] (a) Unless the data is summary data or 221.31 a statute specifically provides a different classification, data 221.32 on individuals collected, maintained, used, or disseminated by 221.33 the welfare system is private data on individuals, and shall not 221.34 be disclosed except: 221.35 (1)pursuantaccording to section 13.05; 221.36 (2)pursuantaccording to court order; 222.1 (3)pursuantaccording to a statute specifically 222.2 authorizing access to the private data; 222.3 (4) to an agent of the welfare system, including a law 222.4 enforcement person, attorney, or investigator acting for it in 222.5 the investigation or prosecution of a criminal or civil 222.6 proceeding relating to the administration of a program; 222.7 (5) to personnel of the welfare system who require the data 222.8 to determine eligibility, amount of assistance, and the need to 222.9 provide services of additional programs to the individual; 222.10 (6) to administer federal funds or programs; 222.11 (7) between personnel of the welfare system working in the 222.12 same program; 222.13 (8) the amounts of cash public assistance and relief paid 222.14 to welfare recipients in this state, including their names, 222.15 social security numbers, income, addresses, and other data as 222.16 required, upon request by the department of revenue to 222.17 administer the property tax refund law, supplemental housing 222.18 allowance, early refund of refundable tax credits, and the 222.19 income tax. "Refundable tax credits" means the dependent care 222.20 credit under section 290.067, the Minnesota working family 222.21 credit under section 290.0671, the property tax refund under 222.22 section 290A.04, and, if the required federal waiver or waivers 222.23 are granted, the federal earned income tax credit under section 222.24 32 of the Internal Revenue Code; 222.25 (9) to the Minnesota department of economic security for 222.26 the purpose of monitoring the eligibility of the data subject 222.27 for reemployment insurance, for any employment or training 222.28 program administered, supervised, or certified by that agency, 222.29 or for the purpose of administering any rehabilitation program, 222.30 whether alone or in conjunction with the welfare system, and to 222.31 verify receipt of energy assistance for the telephone assistance 222.32 plan; 222.33 (10) to appropriate parties in connection with an emergency 222.34 if knowledge of the information is necessary to protect the 222.35 health or safety of the individual or other individuals or 222.36 persons; 223.1 (11) data maintained by residential programs as defined in 223.2 section 245A.02 may be disclosed to the protection and advocacy 223.3 system established in this statepursuantaccording to Part C of 223.4 Public Law Number 98-527 to protect the legal and human rights 223.5 of persons with mental retardation or other related conditions 223.6 who live in residential facilities for these persons if the 223.7 protection and advocacy system receives a complaint by or on 223.8 behalf of that person and the person does not have a legal 223.9 guardian or the state or a designee of the state is the legal 223.10 guardian of the person; 223.11 (12) to the county medical examiner or the county coroner 223.12 for identifying or locating relatives or friends of a deceased 223.13 person; 223.14 (13) data on a child support obligor who makes payments to 223.15 the public agency may be disclosed to the higher education 223.16 services office to the extent necessary to determine eligibility 223.17 under section 136A.121, subdivision 2, clause (5); 223.18 (14) participant social security numbers and names 223.19 collected by the telephone assistance program may be disclosed 223.20 to the department of revenue to conduct an electronic data match 223.21 with the property tax refund database to determine eligibility 223.22 under section 237.70, subdivision 4a; 223.23 (15) the current address of a recipient ofaid to families223.24with dependent childrenMinnesota family investment 223.25 program-statewide may be disclosed to law enforcement officers 223.26 who provide the name and social security number of the recipient 223.27 and satisfactorily demonstrate that: (i) the recipient is a 223.28 fugitive felon, including the grounds for this determination; 223.29 (ii) the location or apprehension of the felon is within the law 223.30 enforcement officer's official duties; and (iii) the request is 223.31 made in writing and in the proper exercise of those duties; 223.32 (16) the current address of a recipient of general 223.33 assistance, work readiness,or general assistance medical care 223.34 may be disclosed to probation officers and corrections agents 223.35 who are supervising the recipient, and to law enforcement 223.36 officers who are investigating the recipient in connection with 224.1 a felony level offense; 224.2 (17) information obtained from food stamp applicant or 224.3 recipient households may be disclosed to local, state, or 224.4 federal law enforcement officials, upon their written request, 224.5 for the purpose of investigating an alleged violation of the 224.6 food stamp act,in accordance withaccording to Code of Federal 224.7 Regulations, title 7, section 272.1(c); 224.8 (18) data on a child support obligor who is in arrears may 224.9 be disclosed for purposes of publishing the datapursuant224.10 according to section 518.575; 224.11 (19) data on child support payments made by a child support 224.12 obligor may be disclosed to the obligee; 224.13 (20) data in the work reporting system may be disclosed 224.14 under section 256.998, subdivision 7; 224.15 (21) to the department of children, families, and learning 224.16 for the purpose of matching department of children, families, 224.17 and learning student data with public assistance data to 224.18 determine students eligible for free and reduced price meals, 224.19 meal supplements, and free milkpursuantaccording to United 224.20 States Code, title 42, sections 1758, 1761, 1766, 1766a, 1772, 224.21 and 1773; to produce accurate numbers of students receivingaid224.22to families with dependent childrenMinnesota family investment 224.23 program-statewide as required by section 124.175; and to 224.24 allocate federal and state funds that are distributed based on 224.25 income of the student's family; or 224.26 (22) the current address and telephone number of program 224.27 recipients and emergency contacts may be released to the 224.28 commissioner of health or a local board of health as defined in 224.29 section 145A.02, subdivision 2, when the commissioner or local 224.30 board of health has reason to believe that a program recipient 224.31 is a disease case, carrier, suspect case, or at risk of illness, 224.32 and the data are necessary to locate the person. 224.33 (b) Information on persons who have been treated for drug 224.34 or alcohol abuse may only be disclosedin accordance with224.35 according to the requirements of Code of Federal Regulations, 224.36 title 42, sections 2.1 to 2.67. 225.1 (c) Data provided to law enforcement agencies under 225.2 paragraph (a), clause (15), (16), or (17), or paragraph (b), are 225.3 investigative data and are confidential or protected nonpublic 225.4 while the investigation is active. The data are private after 225.5 the investigation becomes inactive under section 13.82, 225.6 subdivision 5, paragraph (a) or (b). 225.7 (d) Mental health data shall be treated as provided in 225.8 subdivisions 7, 8, and 9, but is not subject to the access 225.9 provisions of subdivision 10, paragraph (b). 225.10 Sec. 3. Minnesota Statutes 1996, section 84.98, 225.11 subdivision 3, is amended to read: 225.12 Subd. 3. [CRITERIA FOR DETERMINING ECONOMIC, SOCIAL, 225.13 PHYSICAL, OR EDUCATIONAL DISADVANTAGE.] (a) The criteria for 225.14 determining economic, social, physical, or educational 225.15 disadvantage shall be determined as provided in this subdivision. 225.16 (b) Economically disadvantaged are persons who meet the 225.17 criteria for disadvantaged established by the department of 225.18 economic security or persons receiving services provided by the 225.19 department of human services such as welfare payments, food 225.20 stamps, andaid to families with dependent childrenMinnesota 225.21 family investment program-statewide. 225.22 (c) Socially disadvantaged are persons who have been 225.23 classified as persons in need of supervision by the court system. 225.24 (d) Physically disadvantaged are persons who have been 225.25 identified as having special needs by public agencies that deal 225.26 with employment for the disabled. 225.27 (e) Educationally disadvantaged are persons who have 225.28 dropped out of school or are at risk of dropping out of school 225.29 and persons with learning disabilities or in need of special 225.30 education classes. 225.31 Sec. 4. Minnesota Statutes 1996, section 124.17, 225.32 subdivision 1d, is amended to read: 225.33 Subd. 1d. [AFDCMFIP-S PUPIL UNITS.]AFDCMFIP-S pupil 225.34 units for fiscal year 1993 and thereafter must be computed 225.35 according to this subdivision. 225.36 (a) TheAFDCMFIP-S concentration percentage for a district 226.1 equals the product of 100 times the ratio of: 226.2 (1) the number of pupils enrolled in the district from 226.3 families receivingaid to families with dependent children226.4 Minnesota family investment program-statewide according to 226.5 subdivision 1e; to 226.6 (2) the number of pupils in average daily membership 226.7 according to subdivision 1e enrolled in the district. 226.8 (b) TheAFDCMFIP-S pupil weighting factor for a district 226.9 equals the lesser of one or the quotient obtained by dividing 226.10 the district'sAFDCMFIP-S concentration percentage by 11.5. 226.11 (c) TheAFDCMFIP-S pupil units for a district for fiscal 226.12 year 1993 and thereafter equals the product of: 226.13 (1) the number of pupils enrolled in the district from 226.14 families receivingaid to families with dependent children226.15 Minnesota family investment program-statewide according to 226.16 subdivision 1e; times 226.17 (2) theAFDCMFIP-S pupil weighting factor for the 226.18 district; times 226.19 (3) .67. 226.20 Sec. 5. Minnesota Statutes 1996, section 124.17, 226.21 subdivision 1e, is amended to read: 226.22 Subd. 1e. [AFDCMFIP-S PUPIL COUNTS.]AFDCMFIP-S pupil 226.23 counts and average daily membership for subdivisions 1b and 1d 226.24 shall be determined according to this subdivision: 226.25 (a) For districts where the number of pupils from families 226.26 receivingaid to families with dependent childrenMinnesota 226.27 family investment program-statewide has increased over the 226.28 preceding year for each of the two previous years, the number of 226.29 pupils enrolled in the district from families receivingaid to226.30families with dependent childrenMinnesota family investment 226.31 program-statewide shall be those counted on October 1 of the 226.32 previous school year. The average daily membership used shall 226.33 be from the previous school year. 226.34 (b) For districts that do not meet the requirement of 226.35 paragraph (a), the number of pupils enrolled in the district 226.36 from families receivingaid to families with dependent children227.1 Minnesota family investment program-statewide shall be the 227.2 average number of pupils on October 1 of the second previous 227.3 school year and October 1 of the previous school year. The 227.4 average daily membership used shall be the average number 227.5 enrolled in the previous school year and the second previous 227.6 school year. 227.7 (c) Notwithstanding paragraphs (a) and (b), for charter 227.8 schools in the first three years of operation, the number of 227.9 pupils enrolled from families receivingAFDCMFIP-S shall be 227.10 those counted on October 1 of the current school year. The 227.11 average daily membership used shall be from the current school 227.12 year. 227.13 Sec. 6. Minnesota Statutes 1996, section 124.175, is 227.14 amended to read: 227.15 124.175 [AFDC PUPIL COUNT.] 227.16 Each year by March 1, the department of human services 227.17 shall certify to the department of children, families, and 227.18 learning, for each school district, the number of pupils from 227.19 families receivingaid to families with dependent children227.20 Minnesota family investment program-statewide who were enrolled 227.21 in a public school on October 1 of the preceding year. 227.22 Sec. 7. Minnesota Statutes 1996, section 124A.02, 227.23 subdivision 16, is amended to read: 227.24 Subd. 16. [PUPIL UNITS,AFDCMFIP-S.] "AFDCMFIP-S pupil 227.25 units" for fiscal year 1993 and thereafter means pupil units 227.26 identified in section 124.17, subdivision 1d. 227.27 Sec. 8. Minnesota Statutes 1996, section 124A.22, 227.28 subdivision 3, is amended to read: 227.29 Subd. 3. [COMPENSATORY EDUCATION REVENUE.] The 227.30 compensatory education revenue for each district equals the 227.31 formula allowance less $300 times theAFDCMFIP-S pupil units 227.32 computed according to section 124.17, subdivision 1d. 227.33 Sec. 9. Minnesota Statutes 1996, section 136A.125, 227.34 subdivision 2, is amended to read: 227.35 Subd. 2. [ELIGIBLE STUDENTS.] An applicant is eligible for 227.36 a child care grant if the applicant: 228.1 (1) is a resident of the state of Minnesota; 228.2 (2) has a child 12 years of age or younger, or 14 years of 228.3 age or younger who is handicapped as defined in section 120.03, 228.4 and who is receiving or will receive care on a regular basis 228.5 from a licensed or legal, nonlicensed caregiver; 228.6 (3) is income eligible as determined by the office's 228.7 policies and rules, but is not a recipient ofaid to families228.8with dependent childrenMinnesota family investment 228.9 program-statewide; 228.10 (4) has not earned a baccalaureate degree and has been 228.11 enrolled full time less than eight semesters, 12 quarters, or 228.12 the equivalent; 228.13 (5) is pursuing a nonsectarian program or course of study 228.14 that applies to an undergraduate degree, diploma, or 228.15 certificate; 228.16 (6) is enrolled at least half time in an eligible 228.17 institution; and 228.18 (7) is in good academic standing and making satisfactory 228.19 academic progress. 228.20 Sec. 10. Minnesota Statutes 1996, section 196.27, is 228.21 amended to read: 228.22 196.27 [AGENT ORANGE SETTLEMENT PAYMENTS.] 228.23 (a) Payments received by veterans or their dependents 228.24 because of settlements between them and the manufacturers of 228.25 Agent Orange or other chemical agents, as defined in section 228.26 196.21, must not be treated as income (or an available resource) 228.27 of the veterans or their dependents for the purposes of any 228.28 program of public assistance or benefit program administered by 228.29 the department of veterans affairs, the department of human 228.30 services, or other agencies of the state or political 228.31 subdivisions of the state, except as provided in paragraph (b). 228.32 (b) The income and resource exclusion in paragraph (a) does 228.33 not apply to the medical assistance, food stamps, oraid to228.34families with dependent childrenMinnesota family investment 228.35 program-statewide programs until the commissioner of human 228.36 services receives formal approval from the United States 229.1 Department of Health and Human Services, for the medical 229.2 assistance andaid to families with dependent childrenMinnesota 229.3 family investment program-statewide programs, and from the 229.4 United States Department of Agriculture, for the food stamps 229.5 program. The income exclusion does not apply to the Minnesota 229.6 supplemental aid program until the commissioner receives formal 229.7 federal approval of the exclusion for the medical assistance 229.8 program. 229.9 Sec. 11. Minnesota Statutes 1996, section 237.70, 229.10 subdivision 4a, is amended to read: 229.11 Subd. 4a. [HOUSEHOLDS ELIGIBLE FOR CREDITS.] The telephone 229.12 assistance plan must provide telephone assistance credit for a 229.13 residential household in Minnesota that meets each of the 229.14 following criteria: 229.15 (1) has a household member who: 229.16 (i) subscribes to local exchange service; and 229.17 (ii) is either disabled or 65 years of age or older; 229.18 (2) whose household income is 150 percent or less of 229.19 federal poverty guidelines or is currently eligible for: 229.20 (i)aid to families with dependent childrenMinnesota 229.21 family investment program-statewide; 229.22 (ii) medical assistance; 229.23 (iii) general assistance; 229.24 (iv) Minnesota supplemental aid; 229.25 (v) food stamps; 229.26 (vi) refugee cash assistance or refugee medical assistance; 229.27 (vii) energy assistance; or 229.28 (viii) supplemental security income; and 229.29 (3) who has been certified as eligible for telephone 229.30 assistance plan credits. 229.31 Sec. 12. Minnesota Statutes 1996, section 254B.02, 229.32 subdivision 1, is amended to read: 229.33 Subdivision 1. [CHEMICAL DEPENDENCY TREATMENT ALLOCATION.] 229.34 The chemical dependency funds appropriated for allocation shall 229.35 be placed in a special revenue account. For the fiscal year 229.36 beginning July 1, 1987, funds shall be transferred to operate 230.1 the vendor payment, invoice processing, and collections system 230.2 for one year. The commissioner shall annually transfer funds 230.3 from the chemical dependency fund to pay for operation of the 230.4 drug and alcohol abuse normative evaluation system and to pay 230.5 for all costs incurred by adding two positions for licensing of 230.6 chemical dependency treatment and rehabilitation programs 230.7 located in hospitals for which funds are not otherwise 230.8 appropriated. The commissioner shall annually divide the money 230.9 available in the chemical dependency fund that is not held in 230.10 reserve by counties from a previous allocation. Twelve percent 230.11 of the remaining money must be reserved for treatment of 230.12 American Indians by eligible vendors under section 254B.05. The 230.13 remainder of the money must be allocated among the counties 230.14 according to the following formula, using state demographer data 230.15 and other data sources determined by the commissioner: 230.16 (a) For purposes of this formula, American Indians and 230.17 children under age 14 are subtracted from the population of each 230.18 county to determine the restricted population. 230.19 (b) The amount of chemical dependency fund expenditures for 230.20 entitled persons for services not covered by prepaid plans 230.21 governed by section 256B.69 in the previous year is divided by 230.22 the amount of chemical dependency fund expenditures for entitled 230.23 persons for all services to determine the proportion of exempt 230.24 service expenditures for each county. 230.25 (c) The prepaid plan months of eligibility is multiplied by 230.26 the proportion of exempt service expenditures to determine the 230.27 adjusted prepaid plan months of eligibility for each county. 230.28 (d) The adjusted prepaid plan months of eligibility is 230.29 added to the number of restricted population fee for service 230.30 months of eligibility foraid to families with dependent230.31childrenMinnesota family investment program-statewide, general 230.32 assistance, and medical assistance and divided by the county 230.33 restricted population to determine county per capita months of 230.34 covered service eligibility. 230.35 (e) The number of adjusted prepaid plan months of 230.36 eligibility for the state is added to the number of fee for 231.1 service months of eligibility foraid to families with dependent231.2childrenMinnesota family investment program-statewide, general 231.3 assistance, and medical assistance for the state restricted 231.4 population and divided by the state restricted population to 231.5 determine state per capita months of covered service eligibility. 231.6 (f) The county per capita months of covered service 231.7 eligibility is divided by the state per capita months of covered 231.8 service eligibility to determine the county welfare caseload 231.9 factor. 231.10 (g) The median married couple income for the most recent 231.11 three-year period available for the state is divided by the 231.12 median married couple income for the same period for each county 231.13 to determine the income factor for each county. 231.14 (h) The county restricted population is multiplied by the 231.15 sum of the county welfare caseload factor and the county income 231.16 factor to determine the adjusted population. 231.17 (i) $15,000 shall be allocated to each county. 231.18 (j) The remaining funds shall be allocated proportional to 231.19 the county adjusted population. 231.20 Sec. 13. Minnesota Statutes 1996, section 256.01, 231.21 subdivision 2, is amended to read: 231.22 Subd. 2. [SPECIFIC POWERS.] Subject to the provisions of 231.23 section 241.021, subdivision 2, the commissioner of human 231.24 services shall: 231.25 (1) Administer and supervise all forms of public assistance 231.26 provided for by state law and other welfare activities or 231.27 services as are vested in the commissioner. Administration and 231.28 supervision of human services activities or services includes, 231.29 but is not limited to, assuring timely and accurate distribution 231.30 of benefits, completeness of service, and quality program 231.31 management. In addition to administering and supervising human 231.32 services activities vested by law in the department, the 231.33 commissioner shall have the authority to: 231.34 (a) require county agency participation in training and 231.35 technical assistance programs to promote compliance with 231.36 statutes, rules, federal laws, regulations, and policies 232.1 governing human services; 232.2 (b) monitor, on an ongoing basis, the performance of county 232.3 agencies in the operation and administration of human services, 232.4 enforce compliance with statutes, rules, federal laws, 232.5 regulations, and policies governing welfare services and promote 232.6 excellence of administration and program operation; 232.7 (c) develop a quality control program or other monitoring 232.8 program to review county performance and accuracy of benefit 232.9 determinations; 232.10 (d) require county agencies to make an adjustment to the 232.11 public assistance benefits issued to any individual consistent 232.12 with federal law and regulation and state law and rule and to 232.13 issue or recover benefits as appropriate; 232.14 (e) delay or deny payment of all or part of the state and 232.15 federal share of benefits and administrative reimbursement 232.16 according to the procedures set forth in section 256.017; and 232.17 (f) make contracts with and grants to public and private 232.18 agencies and organizations, both profit and nonprofit, and 232.19 individuals, using appropriated funds. 232.20 (2) Inform county agencies, on a timely basis, of changes 232.21 in statute, rule, federal law, regulation, and policy necessary 232.22 to county agency administration of the programs. 232.23 (3) Administer and supervise all child welfare activities; 232.24 promote the enforcement of laws protecting handicapped, 232.25 dependent, neglected and delinquent children, and children born 232.26 to mothers who were not married to the children's fathers at the 232.27 times of the conception nor at the births of the children; 232.28 license and supervise child-caring and child-placing agencies 232.29 and institutions; supervise the care of children in boarding and 232.30 foster homes or in private institutions; and generally perform 232.31 all functions relating to the field of child welfare now vested 232.32 in the state board of control. 232.33 (4) Administer and supervise all noninstitutional service 232.34 to handicapped persons, including those who are visually 232.35 impaired, hearing impaired, or physically impaired or otherwise 232.36 handicapped. The commissioner may provide and contract for the 233.1 care and treatment of qualified indigent children in facilities 233.2 other than those located and available at state hospitals when 233.3 it is not feasible to provide the service in state hospitals. 233.4 (5) Assist and actively cooperate with other departments, 233.5 agencies and institutions, local, state, and federal, by 233.6 performing services in conformity with the purposes of Laws 233.7 1939, chapter 431. 233.8 (6) Act as the agent of and cooperate with the federal 233.9 government in matters of mutual concern relative to and in 233.10 conformity with the provisions of Laws 1939, chapter 431, 233.11 including the administration of any federal funds granted to the 233.12 state to aid in the performance of any functions of the 233.13 commissioner as specified in Laws 1939, chapter 431, and 233.14 including the promulgation of rules making uniformly available 233.15 medical care benefits to all recipients of public assistance, at 233.16 such times as the federal government increases its participation 233.17 in assistance expenditures for medical care to recipients of 233.18 public assistance, the cost thereof to be borne in the same 233.19 proportion as are grants of aid to said recipients. 233.20 (7) Establish and maintain any administrative units 233.21 reasonably necessary for the performance of administrative 233.22 functions common to all divisions of the department. 233.23 (8) Act as designated guardian of both the estate and the 233.24 person of all the wards of the state of Minnesota, whether by 233.25 operation of law or by an order of court, without any further 233.26 act or proceeding whatever, except as to persons committed as 233.27 mentally retarded. 233.28 (9) Act as coordinating referral and informational center 233.29 on requests for service for newly arrived immigrants coming to 233.30 Minnesota. 233.31 (10) The specific enumeration of powers and duties as 233.32 hereinabove set forth shall in no way be construed to be a 233.33 limitation upon the general transfer of powers herein contained. 233.34 (11) Establish county, regional, or statewide schedules of 233.35 maximum fees and charges which may be paid by county agencies 233.36 for medical, dental, surgical, hospital, nursing and nursing 234.1 home care and medicine and medical supplies under all programs 234.2 of medical care provided by the state and for congregate living 234.3 care under the income maintenance programs. 234.4 (12) Have the authority to conduct and administer 234.5 experimental projects to test methods and procedures of 234.6 administering assistance and services to recipients or potential 234.7 recipients of public welfare. To carry out such experimental 234.8 projects, it is further provided that the commissioner of human 234.9 services is authorized to waive the enforcement of existing 234.10 specific statutory program requirements, rules, and standards in 234.11 one or more counties. The order establishing the waiver shall 234.12 provide alternative methods and procedures of administration, 234.13 shall not be in conflict with the basic purposes, coverage, or 234.14 benefits provided by law, and in no event shall the duration of 234.15 a project exceed four years. It is further provided that no 234.16 order establishing an experimental project as authorized by the 234.17 provisions of this section shall become effective until the 234.18 following conditions have been met: 234.19 (a) The proposed comprehensive plan, including estimated 234.20 project costs and the proposed order establishing the waiver, 234.21 shall be filed with the secretary of the senate and chief clerk 234.22 of the house of representatives at least 60 days prior to its 234.23 effective date. 234.24 (b) The secretary of health, education, and welfare of the 234.25 United States has agreed, for the same project, to waive state 234.26 plan requirements relative to statewide uniformity. 234.27 (c) A comprehensive plan, including estimated project 234.28 costs, shall be approved by the legislative advisory commission 234.29 and filed with the commissioner of administration. 234.30 (13)In accordance withAccording to federal requirements, 234.31 establish procedures to be followed by local welfare boards in 234.32 creating citizen advisory committees, including procedures for 234.33 selection of committee members. 234.34 (14) Allocate federal fiscal disallowances or sanctions 234.35 which are based on quality control error rates for theaid to234.36families with dependent childrenMinnesota family investment 235.1 program-statewide, medical assistance, or food stamp program in 235.2 the following manner: 235.3 (a) One-half of the total amount of the disallowance shall 235.4 be borne by the county boards responsible for administering the 235.5 programs. For the medical assistance andAFDCMFIP-S programs, 235.6 disallowances shall be shared by each county board in the same 235.7 proportion as that county's expenditures for the sanctioned 235.8 program are to the total of all counties' expenditures for the 235.9AFDCMFIP-S and medical assistance programs. For the food stamp 235.10 program, sanctions shall be shared by each county board, with 50 235.11 percent of the sanction being distributed to each county in the 235.12 same proportion as that county's administrative costs for food 235.13 stamps are to the total of all food stamp administrative costs 235.14 for all counties, and 50 percent of the sanctions being 235.15 distributed to each county in the same proportion as that 235.16 county's value of food stamp benefits issued are to the total of 235.17 all benefits issued for all counties. Each county shall pay its 235.18 share of the disallowance to the state of Minnesota. When a 235.19 county fails to pay the amount due hereunder, the commissioner 235.20 may deduct the amount from reimbursement otherwise due the 235.21 county, or the attorney general, upon the request of the 235.22 commissioner, may institute civil action to recover the amount 235.23 due. 235.24 (b) Notwithstanding the provisions of paragraph (a), if the 235.25 disallowance results from knowing noncompliance by one or more 235.26 counties with a specific program instruction, and that knowing 235.27 noncompliance is a matter of official county board record, the 235.28 commissioner may require payment or recover from the county or 235.29 counties, in the manner prescribed in paragraph (a), an amount 235.30 equal to the portion of the total disallowance which resulted 235.31 from the noncompliance, and may distribute the balance of the 235.32 disallowance according to paragraph (a). 235.33 (15) Develop and implement special projects that maximize 235.34 reimbursements and result in the recovery of money to the 235.35 state. For the purpose of recovering state money, the 235.36 commissioner may enter into contracts with third parties. Any 236.1 recoveries that result from projects or contracts entered into 236.2 under this paragraph shall be deposited in the state treasury 236.3 and credited to a special account until the balance in the 236.4 account reaches $1,000,000. When the balance in the account 236.5 exceeds $1,000,000, the excess shall be transferred and credited 236.6 to the general fund. All money in the account is appropriated 236.7 to the commissioner for the purposes of this paragraph. 236.8 (16) Have the authority to make direct payments to 236.9 facilities providing shelter to women and their children 236.10pursuantaccording to section 256D.05, subdivision 3. Upon the 236.11 written request of a shelter facility that has been denied 236.12 payments under section 256D.05, subdivision 3, the commissioner 236.13 shall review all relevant evidence and make a determination 236.14 within 30 days of the request for review regarding issuance of 236.15 direct payments to the shelter facility. Failure to act within 236.16 30 days shall be considered a determination not to issue direct 236.17 payments. 236.18 (17) Have the authority to establish and enforce the 236.19 following county reporting requirements: 236.20 (a) The commissioner shall establish fiscal and statistical 236.21 reporting requirements necessary to account for the expenditure 236.22 of funds allocated to counties for human services programs. 236.23 When establishing financial and statistical reporting 236.24 requirements, the commissioner shall evaluate all reports, in 236.25 consultation with the counties, to determine if the reports can 236.26 be simplified or the number of reports can be reduced. 236.27 (b) The county board shall submit monthly or quarterly 236.28 reports to the department as required by the commissioner. 236.29 Monthly reports are due no later than 15 working days after the 236.30 end of the month. Quarterly reports are due no later than 30 236.31 calendar days after the end of the quarter, unless the 236.32 commissioner determines that the deadline must be shortened to 236.33 20 calendar days to avoid jeopardizing compliance with federal 236.34 deadlines or risking a loss of federal funding. Only reports 236.35 that are complete, legible, and in the required format shall be 236.36 accepted by the commissioner. 237.1 (c) If the required reports are not received by the 237.2 deadlines established in clause (b), the commissioner may delay 237.3 payments and withhold funds from the county board until the next 237.4 reporting period. When the report is needed to account for the 237.5 use of federal funds and the late report results in a reduction 237.6 in federal funding, the commissioner shall withhold from the 237.7 county boards with late reports an amount equal to the reduction 237.8 in federal funding until full federal funding is received. 237.9 (d) A county board that submits reports that are late, 237.10 illegible, incomplete, or not in the required format for two out 237.11 of three consecutive reporting periods is considered 237.12 noncompliant. When a county board is found to be noncompliant, 237.13 the commissioner shall notify the county board of the reason the 237.14 county board is considered noncompliant and request that the 237.15 county board develop a corrective action plan stating how the 237.16 county board plans to correct the problem. The corrective 237.17 action plan must be submitted to the commissioner within 45 days 237.18 after the date the county board received notice of noncompliance. 237.19 (e) The final deadline for fiscal reports or amendments to 237.20 fiscal reports is one year after the date the report was 237.21 originally due. If the commissioner does not receive a report 237.22 by the final deadline, the county board forfeits the funding 237.23 associated with the report for that reporting period and the 237.24 county board must repay any funds associated with the report 237.25 received for that reporting period. 237.26 (f) The commissioner may not delay payments, withhold 237.27 funds, or require repayment under paragraph (c) or (e) if the 237.28 county demonstrates that the commissioner failed to provide 237.29 appropriate forms, guidelines, and technical assistance to 237.30 enable the county to comply with the requirements. If the 237.31 county board disagrees with an action taken by the commissioner 237.32 under paragraph (c) or (e), the county board may appeal the 237.33 action according to sections 14.57 to 14.69. 237.34 (g) Counties subject to withholding of funds under 237.35 paragraph (c) or forfeiture or repayment of funds under 237.36 paragraph (e) shall not reduce or withhold benefits or services 238.1 to clients to cover costs incurred due to actions taken by the 238.2 commissioner under paragraph (c) or (e). 238.3 (18) Allocate federal fiscal disallowances or sanctions for 238.4 audit exceptions when federal fiscal disallowances or sanctions 238.5 are based on a statewide random sample for the foster care 238.6 program under title IV-E of the Social Security Act, United 238.7 States Code, title 42, in direct proportion to each county's 238.8 title IV-E foster care maintenance claim for that period. 238.9 Sec. 14. Minnesota Statutes 1996, section 256.01, 238.10 subdivision 4a, is amended to read: 238.11 Subd. 4a. [TECHNICAL ASSISTANCE FOR IMMUNIZATION 238.12 REMINDERS.] The state agency shall provide appropriate technical 238.13 assistance to county agencies to develop methods to have county 238.14 financial workers remind and encourage recipients ofaid to238.15families with dependent childrenMinnesota family investment 238.16 program-statewide, the Minnesota family investment plan, medical 238.17 assistance, family general assistance, or food stamps whose 238.18 assistance unit includes at least one child under the age of 238.19 five to have each young child immunized against childhood 238.20 diseases. The state agency must examine the feasibility of 238.21 utilizing the capacity of a statewide computer system to assist 238.22 county agency financial workers in performing this function at 238.23 appropriate intervals. 238.24 Sec. 15. Minnesota Statutes 1996, section 256.017, 238.25 subdivision 1, is amended to read: 238.26 Subdivision 1. [AUTHORITY AND PURPOSE.] The commissioner 238.27 shall administer a compliance system foraid to families with238.28dependent childrenMinnesota family investment 238.29 program-statewide, the food stamp program, emergency assistance, 238.30 general assistance,work readiness,medical assistance, general 238.31 assistance medical care, emergency general assistance, Minnesota 238.32 supplemental assistance, preadmission screening, and alternative 238.33 care grants under the powers and authorities named in section 238.34 256.01, subdivision 2. The purpose of the compliance system is 238.35 to permit the commissioner to supervise the administration of 238.36 public assistance programs and to enforce timely and accurate 239.1 distribution of benefits, completeness of service and efficient 239.2 and effective program management and operations, to increase 239.3 uniformity and consistency in the administration and delivery of 239.4 public assistance programs throughout the state, and to reduce 239.5 the possibility of sanctions and fiscal disallowances for 239.6 noncompliance with federal regulations and state statutes. 239.7 The commissioner shall utilize training, technical 239.8 assistance, and monitoring activities, as specified in section 239.9 256.01, subdivision 2, to encourage county agency compliance 239.10 with written policies and procedures. 239.11 Sec. 16. Minnesota Statutes 1996, section 256.017, 239.12 subdivision 4, is amended to read: 239.13 Subd. 4. [DETERMINING THE AMOUNT OF THE QUALITY CONTROL 239.14 CASE PENALTY.] (a) The amount of the quality control case 239.15 penalty is limited to the amount of the dollar error for the 239.16 quality control sample month in a reviewed case as determined by 239.17 the state quality control review procedures for theaid to239.18families with dependent childrenMinnesota family investment 239.19 program-statewide and food stamp programs or for any other 239.20 income transfer program for which the commissioner develops a 239.21 quality control program. 239.22 (b) Payment errors in medical assistance or any other 239.23 medical services program for which the department develops a 239.24 quality control program are subject to set rate penalties based 239.25 on the average cost of the specific quality control error 239.26 element for a sample review month for that household size and 239.27 status of institutionalization and as determined from state 239.28 quality control data in the preceding fiscal year for the 239.29 corresponding program. 239.30 (c) Errors identified in negative action cases, such as 239.31 incorrect terminations or denials of assistance are subject to 239.32 set rate penalties based on the average benefit cost of that 239.33 household size as determined from state quality control data in 239.34 the preceding fiscal year for the corresponding program. 239.35 Sec. 17. Minnesota Statutes 1996, section 256.019, is 239.36 amended to read: 240.1 256.019 [RECOVERY OF MONEY; APPORTIONMENT.] 240.2 When an amount is recovered from any source for assistance 240.3 given under the provisions governing public assistance programs 240.4 includingaid to families with dependent childrenMinnesota 240.5 family investment program-statewide, emergency assistance, 240.6 general assistance,work readiness,and Minnesota supplemental 240.7 aid, there shall be paid to the United States the amount due 240.8 under the terms of the Social Security Act and the balance must 240.9 be paid into the treasury of the state or countyin accordance240.10withaccording to current rates of financial participation; 240.11 except if the recovery is made by a county agency using any 240.12 method other than recoupment, the county may keep one-half of 240.13 the nonfederal share of the recovery. This does not apply to 240.14 recoveries from medical providers or to recoveries begun by the 240.15 department of human services' surveillance and utilization 240.16 review division, state hospital collections unit, and the 240.17 benefit recoveries division or, by the attorney general's 240.18 office, or child support collections. 240.19 Sec. 18. Minnesota Statutes 1996, section 256.031, 240.20 subdivision 5, is amended to read: 240.21 Subd. 5. [FEDERAL WAIVERS.]In accordance withAccording 240.22 to sections 256.031 to 256.0361 and federal laws authorizing the 240.23 program, the commissioner shall seek waivers of federal 240.24 requirements of: United States Code, title 42, section 601 et 240.25 seq., and United States Code, title 7, section 2011 et seq., 240.26 needed to implement the Minnesota family investment plan in a 240.27 manner consistent with the goals and objectives of the program. 240.28 The commissioner shall seek terms from the federal government 240.29 that are consistent with the goals of the Minnesota family 240.30 investment plan. The commissioner shall also seek terms from 240.31 the federal government that will maximize federal financial 240.32 participation so that the extra costs to the state of 240.33 implementing the program are minimized, to the extent that those 240.34 terms are consistent with the goals of the Minnesota family 240.35 investment plan. An agreement with the federal government under 240.36 this section shall provide that the agreements may be canceled 241.1 by the state or federal government upon 180 days' notice or 241.2 immediately upon mutual agreement. If the agreement is 241.3 canceled, families which cease receiving assistance under the 241.4 Minnesota family investment plan who are eligible for theaid to241.5families with dependent childrenMinnesota family investment 241.6 program-statewide, general assistance, medical assistance, 241.7 general assistance medical care, or the food stamp program must 241.8 be placed with their consent on the programs for which they are 241.9 eligible. 241.10 Sec. 19. Minnesota Statutes 1996, section 256.046, 241.11 subdivision 1, is amended to read: 241.12 Subdivision 1. [HEARING AUTHORITY.] A local agency may 241.13 initiate an administrative fraud disqualification hearing for 241.14 individuals accused of wrongfully obtaining assistance or 241.15 intentional program violations in theaid to families with241.16dependent childrenMinnesota family investment program-statewide 241.17 or food stamp programs. The hearing is subject to the 241.18 requirements of section 256.045 and the requirements in Code of 241.19 Federal Regulations, title 7, section 273.16, for the food stamp 241.20 program and title 45, section 235.112, for theaid to families241.21with dependent childrenMinnesota family investment 241.22 program-statewide program. 241.23 Sec. 20. Minnesota Statutes 1996, section 256.98, 241.24 subdivision 8, is amended to read: 241.25 Subd. 8. [DISQUALIFICATION FROM PROGRAM.] Any person found 241.26 to be guilty of wrongfully obtaining assistance by a federal or 241.27 state court or by an administrative hearing determination, or 241.28 waiver thereof, through a disqualification consent agreement, or 241.29 as part of any approved diversion plan under section 401.065 in 241.30 theaid to families with dependent childrenMinnesota family 241.31 investment program-statewide program, the food stamp program, 241.32 the Minnesota family investment plan, the general assistance or 241.33 family general assistance program, or the Minnesota supplemental 241.34 aid program, or the work readiness programshall be disqualified 241.35 from that program. The needs of that individual shall not be 241.36 taken into consideration in determining the grant level for that 242.1 assistance unit: 242.2 (1) for six months after the first offense; 242.3 (2) for 12 months after the second offense; and 242.4 (3) permanently after the third or subsequent offense. 242.5 The period of program disqualification shall begin on the 242.6 date stipulated on the advance notice of disqualification 242.7 without possibility of postponement for administrative stay or 242.8 administrative hearing and shall continue through completion 242.9 unless and until the findings upon which the sanctions were 242.10 imposed are reversed by a court of competent jurisdiction. The 242.11 period for which sanctions are imposed is not subject to 242.12 review. The sanctions provided under this subdivision are in 242.13 addition to, and not in substitution for, any other sanctions 242.14 that may be provided for by law for the offense involved. A 242.15 disqualification established through hearing or waiver shall 242.16 result in the disqualification period beginning immediately 242.17 unless the person has become otherwise ineligible for 242.18 assistance. If the person is ineligible for assistance, the 242.19 disqualification period begins when the person again meets the 242.20 eligibility criteria of the program from which they were 242.21 disqualified. 242.22 Sec. 21. Minnesota Statutes 1996, section 256.981, is 242.23 amended to read: 242.24 256.981 [TRAINING OF WELFARE FRAUD PROSECUTORS.] 242.25 The commissioner of human services shall, to the extent an 242.26 appropriation is provided for this purpose, contract with the 242.27 county attorney's council or other public or private entity 242.28 experienced in providing training for prosecutors to conduct 242.29 quarterly workshops and seminars focusing on currentaid to242.30families with dependent childrenMinnesota family investment 242.31 program-statewide program issues, other income maintenance 242.32 program changes, recovery issues, alternative sentencing 242.33 methods, use of technical aids for interviews and 242.34 interrogations, and other matters affecting prosecution of 242.35 welfare fraud cases. 242.36 Sec. 22. Minnesota Statutes 1996, section 256.983, 243.1 subdivision 1, is amended to read: 243.2 Subdivision 1. [PROGRAMS ESTABLISHED.] Within the limits 243.3 of available appropriations, and to the extent required or 243.4 authorized by applicable federal regulations, the commissioner 243.5 of human services shall require the establishment of fraud 243.6 prevention investigation programs in the seven counties 243.7 participating in the fraud prevention investigation pilot 243.8 project established under this section, and in 11 additional 243.9 Minnesota counties with the largestaid to families with243.10dependent childrenMinnesota family investment program-statewide 243.11 program caseloads as of July 1, 1991. If funds are sufficient, 243.12 the commissioner may also extend fraud prevention investigation 243.13 programs to: (1) other counties that have welfare fraud control 243.14 programs already in place based on enhanced funding contracts 243.15 covering the fraud investigation function; and (2) counties that 243.16 have the largest AFDC caseloads as of July 1, 1994, and are not 243.17 currently participating in the fraud prevention investigation 243.18 pilot project. The pilot project may be expanded provided the 243.19 expansion is budget neutral to the state. 243.20 Sec. 23. Minnesota Statutes 1996, section 256.983, 243.21 subdivision 4, is amended to read: 243.22 Subd. 4. [FUNDING.] (a) Every involved county agency shall 243.23 either have in place or obtain an approved contract which meets 243.24 all federal requirements necessary to obtain enhanced federal 243.25 funding for its welfare fraud control and fraud prevention 243.26 investigation programs. County agency reimbursement shall be 243.27 made through the settlement provisions applicable to theaid to243.28families with dependent childrenMinnesota family investment 243.29 program-statewide and food stamp programs. 243.30 (b) After allowing an opportunity to establish compliance, 243.31 the commissioner will deny administrative reimbursement if for 243.32 any three-month period during any grant year, a county agency 243.33 fails to comply with fraud investigation guidelines, or fails to 243.34 meet the cost-effectiveness standards developed by the 243.35 commissioner. This result is contingent on the commissioner 243.36 providing written notice, including an offer of technical 244.1 assistance, within 30 days of the end of the third or subsequent 244.2 month of noncompliance. The county agency shall be required to 244.3 submit a corrective action plan to the commissioner within 30 244.4 days of receipt of a notice of noncompliance. Failure to submit 244.5 a corrective action plan or, continued deviation from standards 244.6 of more than ten percent after submission of a corrective action 244.7 plan, will result in denial of funding for each subsequent month 244.8 during the grant year or billing the county agency for fraud 244.9 prevention investigation (FPI) service provided by the 244.10 commissioner. The denial of funding shall apply to the general 244.11 settlement received by the county agency on a quarterly basis 244.12 and shall not reduce the grant amount applicable to the FPI 244.13 project. 244.14 Sec. 24. Minnesota Statutes 1996, section 256.9850, is 244.15 amended to read: 244.16 256.9850 [IDENTITY VERIFICATION.] 244.17 The commissioner of human services shall seek from the 244.18 Secretary of Health and Human Services all necessary waivers of 244.19 the requirements of theprogram of AFDCMinnesota family 244.20 investment program-statewide, to enable the commissioner to 244.21 establish a statewide program to test the effectiveness of 244.22 identity verification systems in the electronic benefit transfer 244.23 systems in thestate AFDC programMinnesota family investment 244.24 program-statewide. Identity verification provisions shall be 244.25 added to the statewide requests for proposal on the expansion of 244.26 electronic benefit transfer systems in theAFDC program244.27 Minnesota family investment program-statewide. 244.28 Sec. 25. Minnesota Statutes 1996, section 256.9861, 244.29 subdivision 5, is amended to read: 244.30 Subd. 5. [FUNDING.] (a) Grant funds are intended to help 244.31 offset the reduction in federal financial participation to 50 244.32 percent and may be apportioned to the participating counties 244.33 whenever feasible, and within the commissioner's discretion, to 244.34 achieve this goal. State funding shall be made available 244.35 contingent on counties submitting a plan that is approved by the 244.36 department of human services. Failure or delay in obtaining 245.1 that approval shall not, however, eliminate the obligation to 245.2 maintain fraud control efforts at the January 1, 1995, level. 245.3 Additional counties may be added to the project to the extent 245.4 that funds are subsequently made available. Every involved 245.5 county must meet all federal requirements necessary to obtain 245.6 federal funding for its welfare fraud control and prevention 245.7 programs. County agency reimbursement shall be made through the 245.8 settlement provisions applicable to theAFDCMinnesota family 245.9 investment program-statewide and food stamp programs. 245.10 (b) Should a county agency fail to comply with the 245.11 standards set, or fail to meet cost-effectiveness standards 245.12 developed by the commissioner for three months during any grant 245.13 year, the commissioner shall deny reimbursement or 245.14 administrative costs, after allowing an opportunity to establish 245.15 compliance. 245.16 (c) Any denial of reimbursement under paragraph (b) is 245.17 contingent on the commissioner providing written notice, 245.18 including an offer of technical assistance, within 30 days of 245.19 the end of the third or subsequent months of noncompliance. The 245.20 county agency shall be required to submit a corrective action 245.21 plan to the commissioner within 30 days of receipt of a notice 245.22 of noncompliance. Failure to submit a corrective action plan or 245.23 continued deviation from standards of more than ten percent 245.24 after submission of corrective action plan, will result in 245.25 denial of funding for each such month during the grant year, or 245.26 billing the county agency for program integrity reinvestment 245.27 project services provided by the commissioner. The denial of 245.28 funding shall apply to the general settlement received by the 245.29 county agency on a quarterly basis and shall not reduce the 245.30 grant amount applicable to the program integrity reinvestment 245.31 project. 245.32 Sec. 26. Minnesota Statutes 1996, section 256E.03, 245.33 subdivision 2, is amended to read: 245.34 Subd. 2. (a) "Community social services" means services 245.35 provided or arranged for by county boards to fulfill the 245.36 responsibilities prescribed in section 256E.08, subdivision 1, 246.1 to the following groups of persons: 246.2 (1) families with children under age 18, who are 246.3 experiencing child dependency, neglect or abuse, and also 246.4 pregnant adolescents, adolescent parents under the age of 18, 246.5 and their children; 246.6 (2) persons who are under the guardianship of the 246.7 commissioner of human services as dependent and neglected wards; 246.8 (3) adults who are in need of protection and vulnerable as 246.9 defined in section 626.5572; 246.10 (4) persons age 60 and over who are experiencing difficulty 246.11 living independently and are unable to provide for their own 246.12 needs; 246.13 (5) emotionally disturbed children and adolescents, 246.14 chronically and acutely mentally ill persons who are unable to 246.15 provide for their own needs or to independently engage in 246.16 ordinary community activities; 246.17 (6) persons with mental retardation as defined in section 246.18 252A.02, subdivision 2, or with related conditions as defined in 246.19 section 252.27, subdivision 1a, who are unable to provide for 246.20 their own needs or to independently engage in ordinary community 246.21 activities; 246.22 (7) drug dependent and intoxicated persons as defined in 246.23 section 254A.02, subdivisions 5 and 7, and persons at risk of 246.24 harm to self or others due to the ingestion of alcohol or other 246.25 drugs; 246.26 (8) parents whose income is at or below 70 percent of the 246.27 state median income and who are in need of child care services 246.28 in order to secure or retain employment or to obtain the 246.29 training or education necessary to secure employment; and 246.30 (9) other groups of persons who, in the judgment of the 246.31 county board, are in need of social services. 246.32 (b) Except as provided in section 256E.08, subdivision 5, 246.33 community social services do not include public assistance 246.34 programs known asaid to families with dependent children246.35 Minnesota family investment program-statewide, Minnesota 246.36 supplemental aid, medical assistance, general assistance, 247.1 general assistance medical care, or community health services 247.2 authorized by sections 145A.09 to 145A.13. 247.3 Sec. 27. Minnesota Statutes 1996, section 256E.06, 247.4 subdivision 1, is amended to read: 247.5 Subdivision 1. [FORMULA.] The commissioner of human 247.6 services shall distribute community social service aids to each 247.7 county board in an amount determined according to the following 247.8 formula: 247.9 In calendar year 1982 and thereafter: 247.10 (a) One-third shall be distributed on the basis of the 247.11 average unduplicated number of persons who receiveAFDC247.12 Minnesota family investment program-statewide, general 247.13 assistance, and medical assistance per month in the calendar 247.14 year two years prior to the year for which funds are being 247.15 distributed as reported in the average monthly caseload reports 247.16 required under sections 256.01, 256B.04 and 256D.04, and 247.17 certified by the commissioner of human services; and 247.18 (b) One-third shall be distributed on the basis of the 247.19 number of persons residing in the county as determined by the 247.20 most recent data of the state demographer; 247.21 (c) One-third shall be distributed on the basis of the 247.22 number of persons residing in the county who are 65 years old or 247.23 older as determined by the most recent data of the state 247.24 demographer. 247.25 Sec. 28. Minnesota Statutes 1996, section 256E.06, 247.26 subdivision 3, is amended to read: 247.27 Subd. 3. [PAYMENTS TO COUNTIES.] The commissioner of human 247.28 services shall make payments for community social services to 247.29 each county in four installments per year. The commissioner of 247.30 human services may certify the payments for the first three 247.31 months of a calendar year based on estimates of the unduplicated 247.32 number of persons receivingAFDCMinnesota family investment 247.33 program-statewide, general assistance and medical assistance for 247.34 the prior year. The following three payments shall be adjusted 247.35 to reflect the actual unduplicated number of persons who 247.36 receivedAFDCMinnesota family investment program-statewide, 248.1 general assistance and medical assistance as required by 248.2 subdivision 1. The commissioner shall ensure that the pertinent 248.3 payment of the allotment for that quarter is made to each county 248.4 on the first working day after the end of each quarter of the 248.5 calendar year, except for the last quarter of the calendar 248.6 year. The commissioner shall ensure that each county receives 248.7 its payment of the allotment for that quarter no later than the 248.8 last working day of that quarter. This scheduling of payments 248.9 does not require compliance with subdivision 10. 248.10 Sec. 29. Minnesota Statutes 1996, section 256E.07, 248.11 subdivision 1, is amended to read: 248.12 Subdivision 1. [FORMULA.] In federal fiscal year 1985 and 248.13 subsequent years, money for social services that is received 248.14 from the federal government to reimburse counties for social 248.15 service expenditurespursuantaccording to title XX of the 248.16 Social Security Act shall be allocated to each county according 248.17 to the following formula: 248.18 (a) Two-thirds shall be allocated on the basis of the 248.19 annual average number of unduplicated active monthly caseloads 248.20 in each county in the following programs:aid to families with248.21dependent childrenMinnesota family investment 248.22 program-statewide, medical assistance, general assistance, 248.23 supplementary security income, and Minnesota supplemental aid. 248.24 (b) One-third shall be allocated on the basis of the number 248.25 of persons residing in the county as determined by the most 248.26 recent estimate of the state demographer. 248.27 (c) The commissioner shall allocate to the counties 248.28pursuantaccording to this section the total money received from 248.29 the federal government for social servicespursuantaccording to 248.30 title XX of the Social Security Act, except that portion of the 248.31 state's allocation which the legislature authorizes for 248.32 administrative purposes and for migrant day care. 248.33 Sec. 30. Minnesota Statutes 1996, section 256E.08, 248.34 subdivision 3, is amended to read: 248.35 Subd. 3. [ADMINISTRATION OF INCOME MAINTENANCE PROGRAMS.] 248.36 The county board may designate itself, a human services board, 249.1 or a local social services agency to perform the functions of 249.2 local social services agencies as prescribed in chapter 393 and 249.3 assigned to county agencies in other law which pertains to the 249.4 administration of income maintenance programs known asaid to249.5families with dependent childrenMinnesota family investment 249.6 program-statewide, general assistance, Minnesota supplemental 249.7 aid, medical assistance, general assistance medical care, and 249.8 emergency assistance. 249.9 Sec. 31. Minnesota Statutes 1996, section 256F.05, 249.10 subdivision 5, is amended to read: 249.11 Subd. 5. [INAPPROPRIATE EXPENDITURES.] Family preservation 249.12 fund basic, placement earnings, and development grant money must 249.13 not be used for: 249.14 (1) child day care necessary solely because of the 249.15 employment or training to prepare for employment, of a parent or 249.16 other relative with whom the child is living; 249.17 (2) residential facility payments; 249.18 (3) adoption assistance payments; 249.19 (4) public assistance payments foraid to families with249.20dependent childrenMinnesota family investment 249.21 program-statewide, supplemental aid, medical assistance, general 249.22 assistance, general assistance medical care, or community health 249.23 services authorized by sections 145A.09 to 145A.13; or 249.24 (5) administrative costs for local social services agency 249.25 public assistance staff. 249.26 Sec. 32. Minnesota Statutes 1996, section 256G.01, 249.27 subdivision 4, is amended to read: 249.28 Subd. 4. [ADDITIONAL COVERAGE.] The provisions in sections 249.29 256G.02, subdivision 4, paragraphs (a) to (d); 256G.02, 249.30 subdivisions 5 to 8; 256G.03; 256G.04; 256G.05; and 256G.07, 249.31 subdivisions 1 to 3, apply to the following programs:aid to249.32families with dependent childrenMinnesota family investment 249.33 program-statewide; medical assistance; general assistance; 249.34 family general assistance; general assistance medical care; and 249.35 Minnesota supplemental aid. 249.36 Sec. 33. Minnesota Statutes 1996, section 257.3573, 250.1 subdivision 2, is amended to read: 250.2 Subd. 2. [INAPPROPRIATE EXPENDITURES.] Indian child 250.3 welfare grant money must not be used for: 250.4 (1) child day care necessary solely because of employment 250.5 or training for employment of a parent or other relative with 250.6 whom the child is living; 250.7 (2) foster care maintenance or difficulty of care payments; 250.8 (3) residential facility payments; 250.9 (4) adoption assistance payments; 250.10 (5) public assistance payments foraid to families with250.11dependent childrenMinnesota family investment 250.12 program-statewide, supplemental aid, medical assistance, general 250.13 assistance, general assistance medical care, or community health 250.14 services authorized by sections 145A.01 to 145A.14; or 250.15 (6) administrative costs for income maintenance staff. 250.16 Sec. 34. Minnesota Statutes 1996, section 260.38, is 250.17 amended to read: 250.18 260.38 [COST, PAYMENT.] 250.19 In addition to the usual care and services given by public 250.20 and private agencies, the necessary cost incurred by the 250.21 commissioner of human services in providing care for such child 250.22 shall be paid by the county committing such child which, subject 250.23 to uniform rules established by the commissioner of human 250.24 services, may receive a reimbursement not exceeding one-half of 250.25 such costs from funds made available for this purpose by the 250.26 legislature during the period beginning July 1, 1985, and ending 250.27 December 31, 1985. Beginning January 1, 1986, the necessary 250.28 cost incurred by the commissioner of human services in providing 250.29 care for the child must be paid by the county committing the 250.30 child. Where such child is eligible to receive a grant ofaid250.31to families with dependent childrenMinnesota family investment 250.32 program-statewide or supplemental security income for the aged, 250.33 blind, and disabled, or a foster care maintenance payment under 250.34 Title IV-E of the Social Security Act, United States Code, title 250.35 42, sections 670 to 676, the child's needs shall be met through 250.36 these programs. 251.1 Sec. 35. Minnesota Statutes 1996, section 268.0111, 251.2 subdivision 5, is amended to read: 251.3 Subd. 5. [INCOME MAINTENANCE AND SUPPORT SERVICES.] 251.4 "Income maintenance and support services" means programs through 251.5 which the state or its subdivisions provide direct financial or 251.6 in-kind support to unemployed or underemployed persons, 251.7 including reemployment insurance,aid to families with dependent251.8childrenMinnesota family investment program-statewide, general 251.9 assistance,work readiness assistance,food stamps, energy 251.10 assistance, disability determinations, and child care. Income 251.11 maintenance and support services do not include medical 251.12 assistance, aging services, social services, community social 251.13 services, mental health services, or services for the 251.14 emotionally disturbed, the mentally retarded, or residents of 251.15 nursing homes. 251.16 Sec. 36. Minnesota Statutes 1996, section 268.0111, 251.17 subdivision 7, is amended to read: 251.18 Subd. 7. [PUBLIC ASSISTANCE.] "Public assistance" 251.19 meansaid to families with dependent children,Minnesota family 251.20 investment program-statewide and general assistance, and work251.21readiness. 251.22 Sec. 37. Minnesota Statutes 1996, section 268.0122, 251.23 subdivision 3, is amended to read: 251.24 Subd. 3. [DUTIES AS A STATE AGENCY.] The commissioner 251.25 shall: 251.26 (1) administer the unemployment insurance laws and related 251.27 programs; 251.28 (2) administer the aspects ofaid to families with251.29dependent childrenMinnesota family investment 251.30 program-statewide, general assistance,work readiness,and food 251.31 stamps that relate to employment and training services, subject 251.32 to the contract under section 268.86, subdivision 2; 251.33 (3) administer wage subsidies and the discretionary 251.34 employment and training fund; 251.35 (4) administer a national system of public employment 251.36 offices as prescribed by United States Code, title 29, chapter 252.1 4B, the Wagner-Peyser Act, and other federal employment and 252.2 training programs; 252.3 (5) cooperate with the federal government and its 252.4 employment and training agencies in any reasonable manner as 252.5 necessary to qualify for federal aid for employment and training 252.6 services and money; 252.7 (6) enter into agreements with other departments of the 252.8 state and local units of government as necessary; 252.9 (7) certify employment and training service providers and 252.10 decertify service providers that fail to comply with performance 252.11 criteria according to standards established by the commissioner; 252.12 (8) provide consistent, integrated employment and training 252.13 services across the state; 252.14 (9) establish the standards for all employment and training 252.15 services administered under this chapter; 252.16 (10) develop standards for the contents and structure of 252.17 the local service unit plans and plans for Indian tribe 252.18 employment and training services; 252.19 (11) provide current state and substate labor market 252.20 information and forecasts, in cooperation with other agencies; 252.21 (12) identify underserved populations, unmet service needs, 252.22 and funding requirements; 252.23 (13) consult with the council for the blind on matters 252.24 pertaining to programs and services for the blind and visually 252.25 impaired; and 252.26 (14) enter into agreements with Indian tribes as necessary 252.27 to provide employment and training services as funds become 252.28 available. 252.29 Sec. 38. Minnesota Statutes 1996, section 268.552, 252.30 subdivision 5, is amended to read: 252.31 Subd. 5. [ALLOCATION TO APPLICANTS.] Priority for 252.32 subsidies shall be in the following order: 252.33 (1) applicants living in households with no other income 252.34 source; 252.35 (2) applicants whose incomes and resources are less than 252.36 the standard for eligibility for general assistanceor work253.1readiness; and 253.2 (3) applicants who are eligible foraid to families with253.3dependent childrenMinnesota family investment program-statewide. 253.4 Sec. 39. Minnesota Statutes 1996, section 268.6751, 253.5 subdivision 1, is amended to read: 253.6 Subdivision 1. [WAGE SUBSIDIES.] Wage subsidy money must 253.7 be allocated to local service units in the following manner: 253.8 (a) The commissioner shall allocate 87.5 percent of the 253.9 funds available for allocation to local service units for wage 253.10 subsidy programs as follows: the proportion of the wage subsidy 253.11 money available to each local service unit must be based on the 253.12 number of unemployed persons in the local service unit for the 253.13 most recent six-month period and the number ofwork readiness253.14assistance cases and aid to families with dependent children253.15 Minnesota family investment program-statewide cases in the local 253.16 service unit for the most recent six-month period. 253.17 (b) Five percent of the money available for wage subsidy 253.18 programs must be allocated at the discretion of the commissioner. 253.19 (c) Seven and one-half percent of the money available for 253.20 wage subsidy programs must be allocated at the discretion of the 253.21 commissioner to provide jobs for residents of federally 253.22 recognized Indian reservations. 253.23 (d) By December 31 of each fiscal year, providers and local 253.24 service units receiving wage subsidy money shall report to the 253.25 commissioner on the use of allocated funds. The commissioner 253.26 shall reallocate uncommitted funds for each fiscal year 253.27 according to the formula in paragraph (a). 253.28 Sec. 40. Minnesota Statutes 1996, section 268.676, 253.29 subdivision 1, is amended to read: 253.30 Subdivision 1. [AMONG JOB APPLICANTS.] At least 80 percent 253.31 of funds allocated among eligible job applicants statewide must 253.32 be allocated to: 253.33 (1) applicants living in households with no other income 253.34 source; 253.35 (2) applicants whose incomes and resources are less than 253.36 the standards for eligibility for general assistanceor work254.1readiness; 254.2 (3) applicants who are eligible foraid to families with254.3dependent childrenMinnesota family investment 254.4 program-statewide; and 254.5 (4) applicants who live in a farm household who demonstrate 254.6 severe household financial need. 254.7 Sec. 41. Minnesota Statutes 1996, section 268.86, 254.8 subdivision 2, is amended to read: 254.9 Subd. 2. [INTERAGENCY AGREEMENTS.] By October 1, 1987, the 254.10 commissioner and the commissioner of human services shall enter 254.11 into a written contract for the design, delivery, and 254.12 administration of employment and training services for 254.13 applicants for or recipients of food stamps oraid to families254.14with dependent children and work readinessMinnesota family 254.15 investment program-statewide, includingAFDCMFIP-S employment 254.16 and training programs,and general assistanceor work readiness254.17grant diversion. The contract must address: 254.18 (1) specific roles and responsibilities of each department; 254.19 (2) assignment and supervision of staff for interagency 254.20 activities including any necessary interagency employee mobility 254.21 agreements under the administrative procedures of the department 254.22 of employee relations; 254.23 (3) mechanisms for determining the conditions under which 254.24 individuals participate in services, their rights and 254.25 responsibilities while participating, and the standards by which 254.26 the services must be administered; 254.27 (4) procedures for providing technical assistance to local 254.28 service units, Indian tribes, and employment and training 254.29 service providers; 254.30 (5) access to appropriate staff for ongoing development and 254.31 interpretation of policy, rules, and program standards; 254.32 (6) procedures for reimbursing appropriate agencies for 254.33 administrative expenses; and 254.34 (7) procedures for accessing available federal funds. 254.35 Sec. 42. Minnesota Statutes 1996, section 268.871, 254.36 subdivision 1, is amended to read: 255.1 Subdivision 1. [RESPONSIBILITY AND CERTIFICATION.] (a) 255.2 Unless prohibited by federal law or otherwise determined by 255.3 state law, a local service unit is responsible for the delivery 255.4 of employment and training services. After February 1, 1988, 255.5 employment and training services must be delivered by certified 255.6 employment and training service providers. 255.7 (b) The local service unit's employment and training 255.8 service provider must meet the certification standards in this 255.9 subdivision in order to be certified to deliver any of the 255.10 following employment and training services and programs: wage 255.11 subsidies;work readiness; work readiness andgeneral assistance 255.12 grant diversion; food stamp employment and training programs; 255.13 community work experience programs;AFDCMFIP-S job search;AFDC255.14 MFIP-S grant diversion;AFDCMFIP-S on-the-job training; and 255.15AFDCMFIP-S case management. 255.16 (c) The commissioner shall certify a local service unit's 255.17 service provider to provide these employment and training 255.18 services and programs if the commissioner determines that the 255.19 provider has: 255.20 (1) past experience in direct delivery of the programs 255.21 specified in paragraph (b); 255.22 (2) staff capabilities and qualifications, including 255.23 adequate staff to provide timely and effective services to 255.24 clients, and proven staff experience in providing specific 255.25 services such as assessments, career planning, job development, 255.26 job placement, support services, and knowledge of community 255.27 services and educational resources; 255.28 (3) demonstrated effectiveness in providing services to 255.29 public assistance recipients and other economically 255.30 disadvantaged clients; and 255.31 (4) demonstrated administrative capabilities, including 255.32 adequate fiscal and accounting procedures, financial management 255.33 systems, participant data systems, and record retention 255.34 procedures. 255.35 (d) When the only service provider that meets the criterion 255.36 in paragraph (c), clause (1), has been decertified,pursuant256.1 according to subdivision 1a, in that local service unit, the 256.2 following criteria shall be substituted: past experience in 256.3 direct delivery of multiple, coordinated, nonduplicative 256.4 services, including outreach, assessments, identification of 256.5 client barriers, employability development plans, and provision 256.6 or referral to support services. 256.7 (e) The commissioner shall certify providers of the 256.8 Minnesota family investment plan case management services as 256.9 defined in section 256.032, subdivision 3. Providers must meet 256.10 the standards defined in paragraph (c), except that past 256.11 experience under paragraph (c), clause (1), must be in services 256.12 and programs similar to those specified in section 256.032, 256.13 subdivision 3. 256.14 Employment and training service providers shall be 256.15 certified by the commissioner for two fiscal years beginning 256.16 July 1, 1991, and every second year thereafter. 256.17 Sec. 43. Minnesota Statutes 1996, section 268.90, 256.18 subdivision 2, is amended to read: 256.19 Subd. 2. [EMPLOYMENT CONDITIONS.] (a) An eligible 256.20 nonprofit or public employer may not terminate, lay off, or 256.21 reduce the regular working hours of an employee for the purpose 256.22 of hiring an individual with money available under this 256.23 program. An eligible employer may not hire an individual with 256.24 money available through this program if any other person is on 256.25 layoff from the same or a substantially equivalent job. 256.26 (b) Community investment program participants are employees 256.27 of the project employer within the meaning of workers' 256.28 compensation laws, personal income tax, and the federal 256.29 insurance contribution act, but not retirement or civil service 256.30 laws. 256.31 (c) Each project and job must comply with all applicable 256.32 affirmative action, fair labor, health, safety, and 256.33 environmental standards. 256.34 (d) Individuals employed under the community investment 256.35 program must be paid a wage at the same wage rates as work site 256.36 or employees doing comparable work in that locality, unless 257.1 otherwise specified in law. 257.2 (e) Recipients ofaid to families with dependent children257.3 Minnesota family investment program-statewide who are eligible 257.4 on the basis of an unemployed parent may not have available more 257.5 than 100 hours a month. All employees are limited to 32 hours 257.6 or four days a week, so that they can continue to seek full-time 257.7 private sector employment, unless otherwise specified in law. 257.8 (f) The commissioner shall establish, by rule, the terms 257.9 and conditions governing the participation of appropriate public 257.10 assistance recipients. The rules must, at a minimum, establish 257.11 the procedures by which the minimum and maximum number of work 257.12 hours and maximum allowable travel distances are determined, the 257.13 amounts and methods by which work expenses will be paid, and the 257.14 manner in which support services will be provided. The rules 257.15 must also provide for periodic reviews of clients continuing 257.16 employment in community investment programs. 257.17 (g) Participation in a community investment program by a 257.18 recipient ofaid to families with dependent childrenMinnesota 257.19 family investment program-statewide or general assistance is 257.20 voluntary; however, work readiness registrants may be required257.21to participate. 257.22 Sec. 44. Minnesota Statutes 1996, section 268.916, is 257.23 amended to read: 257.24 268.916 [REPORTS.] 257.25 Each grantee shall submit an annual report to the 257.26 commissioner on the format designated by the commissioner, 257.27 including program information report data. By January 1 of each 257.28 year, the commissioner shall prepare an annual report to the 257.29 health and human services committee of the house of 257.30 representatives and the family services committee of the senate 257.31 concerning the uses and impact of head start supplemental 257.32 funding, including a summary of innovative programs and the 257.33 results of innovative programs and an evaluation of the 257.34 coordination of head start programs with employment and training 257.35 services provided toAFDCMFIP-S recipients. 257.36 Sec. 45. Minnesota Statutes 1996, section 268.95, 258.1 subdivision 4, is amended to read: 258.2 Subd. 4. [PILOT PROGRAM.] The commissioner shall develop a 258.3 pilot program, in cooperation with the commissioners of trade 258.4 and economic development and human services, to enable 258.5 low-income persons to start or expand self-employment 258.6 opportunities or home-based businesses that are designed to make 258.7 the individual entrepreneurs economically independent. The 258.8 commissioner of human services shall seek necessary waivers from 258.9 federal regulations to allow recipients ofaid to families with258.10dependent childrenMinnesota family investment program-statewide 258.11 to participate and retain eligibility while establishing a 258.12 business. 258.13 Sec. 46. Minnesota Statutes 1996, section 393.07, 258.14 subdivision 6, is amended to read: 258.15 Subd. 6. [PURCHASE OF EQUIPMENT TO AID WELFARE 258.16 RECIPIENTS.] Every local social services agency authorizing 258.17 braces, crutches, trusses, wheel chairs and hearing aids for use 258.18 by recipients of supplemental security income for the aged, 258.19 blind and disabled,aid to families with dependent children258.20 Minnesota family investment program-statewide and relief shall 258.21 secure such devices at the lowest cost obtainable conducive to 258.22 the well being of the recipient and fix the recipient's grant in 258.23 an amount to cover the cost of the device providing it will be 258.24 purchased at the lowest cost obtainable, or may make payment for 258.25 the device directly to the vendor. 258.26 Sec. 47. Minnesota Statutes 1996, section 477A.0122, 258.27 subdivision 2, is amended to read: 258.28 Subd. 2. [DEFINITIONS.] For purposes of this section, the 258.29 following definitions apply: 258.30 (a) "Children in out-of-home placement" means the total 258.31 unduplicated number of children in out-of-home care as reported 258.32pursuantaccording to section 257.0725. 258.33 (b) "Family preservation programs" means family-based 258.34 services as defined in section 256F.03, subdivision 5, families 258.35 first services, parent and child education programs, and day 258.36 treatment services provided in cooperation with a school 259.1 district or other programs as defined by the commissioner of 259.2 human services. 259.3 (c) "Income maintenance caseload" means average monthly 259.4 number ofAFDCMinnesota family investment program-statewide 259.5 cases for the calendar year. 259.6 By July 1, 1994, the commissioner of human services shall 259.7 certify to the commissioner of revenue the number of children in 259.8 out-of-home placement in 1991 and 1992 for each county and the 259.9 income maintenance caseload for each county for the most recent 259.10 year available. By July 1 of each subsequent year, the 259.11 commissioner of human services shall certify to the commissioner 259.12 of revenue the income maintenance caseload for each county for 259.13 the most recent calendar year available. 259.14 Sec. 48. [EFFECTIVE DATE.] 259.15 Sections 1 to 47 are effective January 1, 1998.