1.1                          A bill for an act 
  1.2             relating to human services; making changes to welfare 
  1.3             reform legislation; changing the work first program 
  1.4             and other assistance programs; making changes to 
  1.5             licensing of nonresidential child care programs; 
  1.6             amending Minnesota Statutes 1996, sections 245A.14, 
  1.7             subdivision 4; and 256D.46, subdivision 2; Minnesota 
  1.8             Statutes 1997 Supplement, sections 256.031, 
  1.9             subdivision 6; 256.9864; 256B.062; 256J.02, 
  1.10            subdivision 4; 256J.03; 256J.08, subdivisions 7, 11, 
  1.11            26, 28, 40, 60, 68, 73, 83, and by adding 
  1.12            subdivisions; 256J.09, subdivisions 6 and 9; 256J.12; 
  1.13            256J.14; 256J.20, subdivision 3; 256J.21; 256J.24, 
  1.14            subdivisions 1, 2, 3, 4, and by adding a subdivision; 
  1.15            256J.26, subdivisions 1, 2, 3, and 4; 256J.28, 
  1.16            subdivisions 2 and 4; 256J.30, subdivisions 10 and 11; 
  1.17            256J.31, subdivisions 5 and 10; 256J.32, subdivisions 
  1.18            4, 6, and by adding a subdivision; 256J.33, 
  1.19            subdivisions 1 and 4; 256J.35; 256J.36; 256J.37, 
  1.20            subdivisions 1, 2, 9, and by adding subdivisions; 
  1.21            256J.38, subdivision 1; 256J.39, subdivision 2; 
  1.22            256J.395; 256J.42; 256J.43; 256J.45, subdivision 1, 
  1.23            and by adding a subdivision; 256J.46, subdivisions 1 
  1.24            and 2; 256J.47, subdivision 4; 256J.48, subdivisions 2 
  1.25            and 3; 256J.50, subdivision 5; 256J.54, subdivisions 
  1.26            2, 3, and 4; 256J.56; 256J.57, subdivision 1; 256J.74, 
  1.27            subdivision 2; and 256K.03, subdivision 5; Laws 1997, 
  1.28            chapter 85, articles 1, section 61; and 3, section 53; 
  1.29            proposing coding for new law in Minnesota Statutes, 
  1.30            chapter 256J; repealing Minnesota Statutes 1996, 
  1.31            section 256D.05, subdivisions 3 and 3a; Minnesota 
  1.32            Statutes 1997 Supplement, sections 256.031; 256.032; 
  1.33            256.033; 256.034; 256.035; 256.036; 256.0361; 256.047; 
  1.34            256.0475; 256.048; 256.049; 256B.062; 256J.25; 
  1.35            256J.28, subdivision 4; 256J.32, subdivision 5; and 
  1.36            256J.34, subdivision 5; Laws 1997, chapters 85, 
  1.37            article 1, section 71; article 3, section 55; and 248, 
  1.38            section 46. 
  1.39  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.40                             ARTICLE 1
  1.41                           WELFARE REFORM
  1.42     Section 1.  Minnesota Statutes 1997 Supplement, section 
  2.1   256.031, subdivision 6, is amended to read: 
  2.2      Subd. 6.  [END OF FIELD TRIALS.] (a) Upon agreement with 
  2.3   the federal government, the field trials of the Minnesota family 
  2.4   investment plan will end June 30, 1998.  
  2.5      (b) Families in the comparison group under subdivision 3, 
  2.6   paragraph (d), clause (i), receiving aid to families with 
  2.7   dependent children under sections 256.72 to 256.87, and STRIDE 
  2.8   services under section 256.736 will continue in those programs 
  2.9   until June 30, 1998.  After June 30, 1998, families who cease 
  2.10  receiving assistance under the Minnesota family investment plan 
  2.11  and comparison group families who cease receiving assistance 
  2.12  under AFDC and STRIDE who are eligible for the Minnesota family 
  2.13  investment program-statewide (MFIP-S), medical assistance, 
  2.14  general assistance medical care, or the food stamp program shall 
  2.15  be placed with their consent on the programs for which they are 
  2.16  eligible. 
  2.17     (c) Families who cease receiving assistance under the MFIP 
  2.18  and comparison families who cease receiving assistance under 
  2.19  AFDC and STRIDE who are ineligible for MFIP-S due to increased 
  2.20  income from employment, or increased child or spousal support or 
  2.21  a combination of employment income and child or spousal support, 
  2.22  will be eligible for transition year child care under section 
  2.23  119B.05, and extended medical assistance under section 
  2.24  256B.0635.  For the purpose of determining receipt of assistance 
  2.25  for transition year child care and extended medical assistance, 
  2.26  receipt of AFDC and MFIP will be the same as receipt of MFIP-S. 
  2.27     Sec. 2.  Minnesota Statutes 1997 Supplement, section 
  2.28  256J.02, subdivision 4, is amended to read: 
  2.29     Subd. 4.  [AUTHORITY TO TRANSFER.] Subject to limitations 
  2.30  of title I of Public Law Number 104-193, the Personal 
  2.31  Responsibility and Work Opportunity Reconciliation Act of 
  2.32  1996, as amended, the legislature may transfer money from the 
  2.33  TANF block grant to the child care fund under chapter 119B, or 
  2.34  the Title XX block grant under section 256E.07. 
  2.35     Sec. 3.  Minnesota Statutes 1997 Supplement, section 
  2.36  256J.03, is amended to read: 
  3.1      256J.03 [TANF RESERVE ACCOUNT.] 
  3.2      Subdivision 1.  The ~~Minnesota family investment~~ 
  3.3   ~~program-statewide/TANF~~ TANF reserve account is created in the 
  3.4   state treasury.  Funds retained or deposited in the TANF reserve 
  3.5   shall include:  (1) funds designated by the legislature ~~and~~; (2) 
  3.6   unexpended state funds resulting from the acceleration of TANF 
  3.7   expenditures under subdivision 2; (3) earnings available from 
  3.8   the federal TANF block grant appropriated to the commissioner 
  3.9   but not expended in the biennium beginning July 1, 1997~~, shall~~ 
  3.10  ~~be retained~~; and (4) TANF funds available in fiscal years 1998, 
  3.11  1999, 2000, and 2001 that are not spent or not budgeted to be 
  3.12  spent in those years. 
  3.13     Funds deposited in the reserve account ~~to~~ must be expended 
  3.14  for the Minnesota family investment program-statewide ~~in fiscal~~ 
  3.15  ~~year 2000 and subsequent fiscal years~~ and directly related state 
  3.16  programs for the purposes in subdivision 3. 
  3.17     Subd. 2.  [AUTHORIZATION TO ACCELERATE EXPENDITURE OF TANF 
  3.18  FUNDS.] The commissioner may expend federal Temporary Assistance 
  3.19  to Needy Families block grant funds in excess of appropriated 
  3.20  levels for the purpose of accelerating federal funding of the 
  3.21  MFIP program.  By the end of the fiscal year in which the 
  3.22  additional federal expenditures are made, the commissioner must 
  3.23  deposit into the reserve account an amount of unexpended state 
  3.24  funds appropriated for assistance to families grants, aid to 
  3.25  families with dependent children and Minnesota family investment 
  3.26  plan equal to the additional federal expenditures.  Reserve 
  3.27  funds may be spent as TANF appropriations if insufficient TANF 
  3.28  funds are available because of acceleration. 
  3.29     Subd. 3.  [ALLOWED TRANSFER PURPOSE.] Funds from the 
  3.30  reserve account may be used for the following purposes: 
  3.31     (1) unanticipated Temporary Assistance to Needy Families 
  3.32  block grant maintenance of effort shortfalls; 
  3.33     (2) MFIP cost increases due to reduced federal revenues and 
  3.34  federal law changes; 
  3.35     (3) one-half of the MFIP general fund cost increase in 
  3.36  fiscal year 2000 and subsequent fiscal years due to caseload 
  4.1   increases over fiscal year 1999; and 
  4.2      (4) transfers allowed under section 256J.02, subdivision 4. 
  4.3      Sec. 4.  Minnesota Statutes 1997 Supplement, section 
  4.4   256J.08, subdivision 7, is amended to read: 
  4.5      Subd. 7.  [ASSISTANCE UNIT OR MFIP-S ASSISTANCE UNIT.] 
  4.6   "Assistance unit" or "MFIP-S assistance unit" means a group of 
  4.7   mandatory or optional people receiving or applying for MFIP-S 
  4.8   benefits together.  Group may also be defined as the "unit." 
  4.9      Sec. 5.  Minnesota Statutes 1997 Supplement, section 
  4.10  256J.08, subdivision 11, is amended to read: 
  4.11     Subd. 11.  [CAREGIVER.] "Caregiver" means a minor child's 
  4.12  natural or adoptive parent, stepparent, or parents who live in 
  4.13  the home with the minor child.  For purposes of determining 
  4.14  eligibility for this program, caregiver also means any of the 
  4.15  following individuals, if adults, who live with and provide care 
  4.16  and support to a minor child when the minor child's natural or 
  4.17  adoptive parent or parents do not reside in the same home:  
  4.18  legal custodians, grandfather, grandmother, brother, sister, 
  4.19  stepfather, stepmother, stepbrother, stepsister, uncle, aunt, 
  4.20  first cousin, nephew, niece, person of preceding generation as 
  4.21  denoted by prefixes of "great," "great-great," or 
  4.22  "great-great-great," or a spouse of any person named in the 
  4.23  above groups even after the marriage ends by death or divorce. 
  4.24     Sec. 6.  Minnesota Statutes 1997 Supplement, section 
  4.25  256J.08, is amended by adding a subdivision to read: 
  4.26     Subd. 23a.  [DISABLED.] "Disabled" means a person's 
  4.27  physical or mental impairment lasting 30 days or more that ends 
  4.28  or substantially reduces a person's ability to hold a job or 
  4.29  care for his or her children. 
  4.30     Sec. 7.  Minnesota Statutes 1997 Supplement, section 
  4.31  256J.08, is amended by adding a subdivision to read: 
  4.32     Subd. 24a.  [DISQUALIFIED.] "Disqualified" means a person 
  4.33  ineligible to receive MFIP-S due to noncooperation with program 
  4.34  requirements.  Except for persons whose disqualification is 
  4.35  based on fraud, a disqualified person can take action to correct 
  4.36  the reason for ineligibility.  
  5.1      Sec. 8.  Minnesota Statutes 1997 Supplement, section 
  5.2   256J.08, subdivision 26, is amended to read: 
  5.3      Subd. 26.  [EARNED INCOME.] "Earned income" means cash or 
  5.4   in-kind income earned through the receipt of wages, salary, 
  5.5   commissions, profit from employment activities, net profit from 
  5.6   self-employment activities, payments made by an employer for 
  5.7   regularly accrued vacation or sick leave, and any other profit 
  5.8   from activity earned through effort or labor.  The income must 
  5.9   be in return for, or as a result of, legal activity.  
  5.10     Sec. 9.  Minnesota Statutes 1997 Supplement, section 
  5.11  256J.08, subdivision 28, is amended to read: 
  5.12     Subd. 28.  [EMERGENCY.] "Emergency" means a situation or a 
  5.13  set of circumstances that causes or threatens to cause 
  5.14  destitution to a ~~minor child~~ family with a child under age 21.  
  5.15     Sec. 10.  Minnesota Statutes 1997 Supplement, section 
  5.16  256J.08, subdivision 40, is amended to read: 
  5.17     Subd. 40.  [GROSS EARNED INCOME.] "Gross earned income" 
  5.18  means earned income from employment before mandatory and 
  5.19  voluntary payroll deductions.  Gross earned income includes 
  5.20  salaries, wages, tips, gratuities, commissions, incentive 
  5.21  payments from work or training programs, payments made by an 
  5.22  employer for regularly accrued vacation or sick leave, and 
  5.23  profits from other activity earned by an individual's effort or 
  5.24  labor.  Gross earned income includes uniform and meal allowances 
  5.25  if federal income tax is deducted from the allowance.  Gross 
  5.26  earned income includes flexible work benefits received from an 
  5.27  employer if the employee has the option of receiving the benefit 
  5.28  or benefits in cash.  For self-employment, gross earned income 
  5.29  is the nonexcluded income minus expenses for the business.  
  5.30     Sec. 11.  Minnesota Statutes 1997 Supplement, section 
  5.31  256J.08, is amended by adding a subdivision to read: 
  5.32     Subd. 44a.  [HOMELESS.] (a) "Homeless" means a person who 
  5.33  lacks a fixed and regular nighttime residence, or a person whose 
  5.34  primary residence is:  
  5.35     (1) a supervised shelter designed for temporary 
  5.36  accommodations; 
  6.1      (2) a halfway house or similar facility that provides 
  6.2   temporary residence; 
  6.3      (3) a temporary accommodation in the home of another 
  6.4   person; 
  6.5      (4) a place not designed for sleeping accommodations such 
  6.6   as a bridge or lobby; or 
  6.7      (5) a temporary accommodation in the home of another person.
  6.8      (b) A person described in paragraph (a), clauses (1) to (5) 
  6.9   may be considered homeless for no more than 90 days.  
  6.10     Sec. 12.  Minnesota Statutes 1997 Supplement, section 
  6.11  256J.08, is amended by adding a subdivision to read: 
  6.12     Subd. 50a.  [INTERSTATE TRANSITIONAL STANDARD.] "Interstate 
  6.13  transitional standard" means a combination of the cash 
  6.14  assistance a family with no other income would have received in 
  6.15  the state of previous residence and the Minnesota food portion 
  6.16  for the appropriate size family. 
  6.17     Sec. 13.  Minnesota Statutes 1997 Supplement, section 
  6.18  256J.08, is amended by adding a subdivision to read: 
  6.19     Subd. 51a.  [LEGAL CUSTODIAN.] "Legal custodian" means a 
  6.20  person who has been granted legal custody of a minor child by a 
  6.21  court or, if assistance is being requested of the minor child, a 
  6.22  person who is defined as an eligible relative caregiver of the 
  6.23  minor child.  
  6.24     Sec. 14.  Minnesota Statutes 1997 Supplement, section 
  6.25  256J.08, subdivision 60, is amended to read: 
  6.26     Subd. 60.  [MINOR CHILD.] "Minor child" means a child who 
  6.27  is living in the same home of a parent or other caregiver, is 
  6.28  either less than 18 years of age or is under the age of 19 years 
  6.29  and is ~~regularly attending as~~ a full-time student ~~and is~~ 
  6.30  ~~expected to complete a high school or~~ in a secondary school or 
  6.31  pursuing a full-time secondary level course of vocational or 
  6.32  technical training designed to fit students for gainful 
  6.33  employment ~~before reaching age 19~~. 
  6.34     Sec. 15.  Minnesota Statutes 1997 Supplement, section 
  6.35  256J.08, is amended by adding a subdivision to read: 
  6.36     Subd. 61a.  [NONCUSTODIAL PARENT.] "Noncustodial parent" 
  7.1   means a minor child's parent who does not live in the same home 
  7.2   as the child.  
  7.3      Sec. 16.  Minnesota Statutes 1997 Supplement, section 
  7.4   256J.08, subdivision 68, is amended to read: 
  7.5      Subd. 68.  [PERSONAL PROPERTY.] "Personal property" means 
  7.6   an item of value that is not real property, including the value 
  7.7   of a contract for deed held by a seller, assets held in trust on 
  7.8   behalf of members of an assistance unit, ~~cash surrender value of~~ 
  7.9   ~~life insurance,~~ value of a prepaid burial, savings account, 
  7.10  value of stocks and bonds, and value of retirement accounts. 
  7.11     Sec. 17.  Minnesota Statutes 1997 Supplement, section 
  7.12  256J.08, subdivision 73, is amended to read: 
  7.13     Subd. 73.  [QUALIFIED NONCITIZEN.] "Qualified noncitizen" 
  7.14  means a person: 
  7.15     (1) who was lawfully admitted for permanent residence 
  7.16  pursuant to United States Code, title 8; 
  7.17     (2) who was admitted to the United States as a refugee 
  7.18  pursuant to United States Code, title 8; section 1157; 
  7.19     (3) whose deportation is being withheld pursuant to United 
  7.20  States Code, title 8, section 1253(h); 
  7.21     (4) who was paroled for a period of at least one year 
  7.22  pursuant to United States Code, title 8, section 1182(d)(5); 
  7.23     (5) who was granted conditional entry pursuant to United 
  7.24  State Code, title 8, section 1153(a)(7); 
  7.25     (6) who was granted asylum pursuant to United States Code, 
  7.26  title 8, section 1158; ~~or~~ 
  7.27     (7) determined to be a battered noncitizen by the United 
  7.28  States Attorney General according to the Illegal Immigration 
  7.29  Reform and Immigrant Responsibility Act of 1996, Title V of the 
  7.30  Omnibus Consolidated Appropriations Bill, Public Law Number 
  7.31  104-208; or 
  7.32     (8) who was admitted as a Cuban or Haitian entrant. 
  7.33     Sec. 18.  Minnesota Statutes 1997 Supplement, section 
  7.34  256J.08, subdivision 83, is amended to read: 
  7.35     Subd. 83.  [SIGNIFICANT CHANGE.] "Significant change" means 
  7.36  a decline in gross income of ~~35~~ 36 percent or more from the 
  8.1   income used to determine the grant for the current month. 
  8.2      Sec. 19.  Minnesota Statutes 1997 Supplement, section 
  8.3   256J.09, subdivision 6, is amended to read: 
  8.4      Subd. 6.  [INVALID REASON FOR DELAY.] A county agency must 
  8.5   not delay a decision on eligibility or delay issuing the 
  8.6   assistance payment except to establish state residence as 
  8.7   provided in section 256J.12 by: 
  8.8      (1) treating the 30-day processing period as a waiting 
  8.9   period; 
  8.10     (2) delaying approval or issuance of the assistance payment 
  8.11  pending the decision of the county board; or 
  8.12     (3) awaiting the result of a referral to a county agency in 
  8.13  another county when the county receiving the application does 
  8.14  not believe it is the county of financial responsibility. 
  8.15     Sec. 20.  Minnesota Statutes 1997 Supplement, section 
  8.16  256J.09, subdivision 9, is amended to read: 
  8.17     Subd. 9.  [ADDENDUM TO AN EXISTING APPLICATION.] (a) An 
  8.18  addendum to an existing application must be used to add persons 
  8.19  to an assistance unit regardless of whether the persons being 
  8.20  added are required to be in the assistance unit.  When a person 
  8.21  is added by addendum to an assistance unit, eligibility for that 
  8.22  person begins on the first of the month the addendum was filed 
  8.23  except as provided in section 256J.74, subdivision 2, clause (1).
  8.24     (b) An overpayment must be determined when a change in 
  8.25  household composition is not reported timely as required by 
  8.26  section 256J.30, subdivision 9.  Any overpayment must be 
  8.27  calculated from the month of the change including the needs, 
  8.28  income, and assets of any individual who is required to be 
  8.29  included in the assistance unit under section 256J.24, 
  8.30  subdivision 2.  Individuals not included in the assistance unit 
  8.31  who are identified in section 256J.37, subdivisions 1 and 2, 
  8.32  must have their income and assets considered when determining 
  8.33  the amount of the overpayment. 
  8.34     Sec. 21.  Minnesota Statutes 1997 Supplement, section 
  8.35  256J.12, is amended to read: 
  8.36     256J.12 [MINNESOTA RESIDENCE.] 
  9.1      Subdivision 1.  [SIMPLE RESIDENCY.] To be eligible for AFDC 
  9.2   or MFIP-S, whichever is in effect, ~~a family~~ an assistance unit 
  9.3   must have established residency in this state which means 
  9.4   the ~~family~~ assistance unit is present in the state and intends 
  9.5   to remain here. 
  9.6      Subd. 1a.  [30-DAY RESIDENCY REQUIREMENT.] ~~A family~~ An 
  9.7   assistance unit is considered to have established residency in 
  9.8   this state only when a child or caregiver has resided in this 
  9.9   state for at least 30 days with the intention of making the 
  9.10  person's home here and not for any temporary purpose.  The birth 
  9.11  of a child in Minnesota to a member of the assistance unit does 
  9.12  not automatically confer residency on the child or on the other 
  9.13  members of the assistance unit.  Time spent in a shelter for 
  9.14  battered women shall count toward satisfying the 30-day 
  9.15  residency requirement. 
  9.16     Subd. 2.  [EXCEPTIONS.] (a) A county shall waive the 30-day 
  9.17  residency requirement where unusual hardship would result from 
  9.18  denial of assistance. 
  9.19     (b) For purposes of this section, unusual hardship means ~~a~~ 
  9.20  ~~family~~ an assistance unit: 
  9.21     (1) is without alternative shelter; or 
  9.22     (2) is without available resources for food. 
  9.23     (c) For purposes of this subdivision, the following 
  9.24  definitions apply (1) "metropolitan statistical area" is as 
  9.25  defined by the U.S. Census Bureau; (2) "alternative shelter" 
  9.26  includes any shelter that is located within the metropolitan 
  9.27  statistical area containing the county and for which the family 
  9.28  is eligible, provided the ~~family~~ assistance unit does not have 
  9.29  to travel more than 20 miles to reach the shelter and has access 
  9.30  to transportation to the shelter.  Clause (2) does not apply to 
  9.31  counties in the Minneapolis-St. Paul metropolitan statistical 
  9.32  area. 
  9.33     (d) Applicants are considered to meet the residency 
  9.34  requirement if they once resided in Minnesota and: 
  9.35     (1) joined the United States armed services, returned to 
  9.36  Minnesota within 30 days of leaving the armed forces, and intend 
 10.1   to remain in Minnesota; or 
 10.2      (2) left to attend school in another state, paid 
 10.3   nonresident tuition or Minnesota tuition rates under a 
 10.4   reciprocity agreement, and returned to Minnesota within 30 days 
 10.5   of graduation with the intent to remain in Minnesota. 
 10.6      (e) The 30-day residence requirement is met when: 
 10.7      (1) a minor child or a minor caregiver moves to the 
 10.8   residence of a relative caregiver from another state; 
 10.9      (2) the minor caregiver applies for and receives family 
 10.10  cash assistance; 
 10.11     (3) the relative caregiver chooses not to be part of the 
 10.12  MFIP-S assistance unit; and 
 10.13     (4) the relative caregiver has resided in Minnesota for at 
 10.14  least 30 days from the date the assistance unit applies for cash 
 10.15  assistance.  
 10.16     (f) Ineligible mandatory unit members who have resided in 
 10.17  Minnesota for 12 months immediately before the date of 
 10.18  application confer state residency on other assistance unit 
 10.19  members. 
 10.20     Subd. 2a.  [MIGRANT WORKERS.] Migrant workers, as defined 
 10.21  in section 256J.08, and their immediate families are exempt from 
 10.22  the requirements of subdivisions 1 and 1a, provided the migrant 
 10.23  worker provides verification that the migrant family worked in 
 10.24  this state within the last 12 months and earned at least $1,000 
 10.25  in gross wages during the time the migrant worker worked in this 
 10.26  state. 
 10.27     Subd. 3.  [PAYMENT PLAN FOR NEW RESIDENTS.] Assistance paid 
 10.28  to an eligible ~~family~~ assistance unit in which all members have 
 10.29  resided in this state for fewer than 12 consecutive calendar 
 10.30  months immediately preceding the date of application shall be at 
 10.31  the standard and in the form specified in section 256J.43. 
 10.32     Subd. 4.  [SEVERABILITY CLAUSE.] If any subdivision in this 
 10.33  section is enjoined from implementation or found 
 10.34  unconstitutional by any court of competent jurisdiction, the 
 10.35  remaining subdivisions shall remain valid and shall be given 
 10.36  full effect. 
 11.1      Sec. 22.  Minnesota Statutes 1997 Supplement, section 
 11.2   256J.14, is amended to read: 
 11.3      256J.14 [ELIGIBILITY FOR PARENTING OR PREGNANT MINORS.] 
 11.4      (a) The definitions in this paragraph only apply to this 
 11.5   subdivision. 
 11.6      (1) "Household of a parent, legal guardian, or other adult 
 11.7   relative" means the place of residence of: 
 11.8      (i) a natural or adoptive parent; 
 11.9      (ii) a legal guardian according to appointment or 
 11.10  acceptance under section 260.242, 525.615, or 525.6165, and 
 11.11  related laws; ~~or~~ 
 11.12     (iii) a caregiver as defined in section 256J.08, 
 11.13  subdivision 11; or 
 11.14     (iv) an appropriate adult relative designated by a county 
 11.15  agency. 
 11.16     (2) "Adult-supervised supportive living arrangement" means 
 11.17  a private family setting which assumes responsibility for the 
 11.18  care and control of the minor parent and minor child, or other 
 11.19  living arrangement, not including a public institution, licensed 
 11.20  by the commissioner of human services which ensures that the 
 11.21  minor parent receives adult supervision and supportive services, 
 11.22  such as counseling, guidance, independent living skills 
 11.23  training, or supervision. 
 11.24     (b) A minor parent and the minor child who is in the care 
 11.25  of the minor parent must reside in the household of a parent, 
 11.26  legal guardian, other ~~appropriate~~ adult relative, ~~or other~~ 
 11.27  ~~caregiver,~~ or in an adult-supervised supportive living 
 11.28  arrangement in order to receive MFIP-S unless: 
 11.29     (1) the minor parent has no living parent, other 
 11.30  ~~appropriate~~ adult relative, or legal guardian whose whereabouts 
 11.31  is known; 
 11.32     (2) no living parent, other ~~appropriate~~ adult relative, or 
 11.33  legal guardian of the minor parent allows the minor parent to 
 11.34  live in the parent's, ~~appropriate~~ other adult relative's, or 
 11.35  legal guardian's home; 
 11.36     (3) the minor parent lived apart from the minor parent's 
 12.1   own parent or legal guardian for a period of at least one year 
 12.2   before either the birth of the minor child or the minor parent's 
 12.3   application for MFIP-S; 
 12.4      (4) the physical or emotional health or safety of the minor 
 12.5   parent or minor child would be jeopardized if the minor parent 
 12.6   and the minor child resided in the same residence with the minor 
 12.7   parent's parent, other ~~appropriate~~ adult relative, or legal 
 12.8   guardian; or 
 12.9      (5) an adult supervised supportive living arrangement is 
 12.10  not available for the minor parent and ~~the dependent~~ child in 
 12.11  the county in which the minor parent and child currently ~~resides~~ 
 12.12  reside.  If an adult supervised supportive living arrangement 
 12.13  becomes available within the county, the minor parent and child 
 12.14  must reside in that arrangement. 
 12.15     (c) Minor applicants must be informed orally and in writing 
 12.16  about the eligibility requirements and their rights and 
 12.17  obligations under the MFIP-S program.  The county must advise 
 12.18  the minor of the possible exemptions and specifically ask 
 12.19  whether one or more of these exemptions is applicable.  If the 
 12.20  minor alleges one or more of these exemptions, then the county 
 12.21  must assist the minor in obtaining the necessary verifications 
 12.22  to determine whether or not these exemptions apply. 
 12.23     (d) If the county worker has reason to suspect that the 
 12.24  physical or emotional health or safety of the minor parent or 
 12.25  minor child would be jeopardized if they resided with the minor 
 12.26  parent's parent, other adult relative, or legal guardian, then 
 12.27  the county worker must make a referral to child protective 
 12.28  services to determine if paragraph (b), clause (4), applies.  A 
 12.29  new determination by the county worker is not necessary if one 
 12.30  has been made within the last six months, unless there has been 
 12.31  a significant change in circumstances which justifies a new 
 12.32  referral and determination. 
 12.33     (e) If a minor parent is not living with a parent ~~or~~, legal 
 12.34  guardian, or other adult relative due to paragraph (b), clause 
 12.35  (1), (2), or (4), the minor parent must reside, when possible, 
 12.36  in a living arrangement that meets the standards of paragraph 
 13.1   (a), clause (2). 
 13.2      (f) When a minor parent and minor child ~~live~~ lives with 
 13.3   ~~another~~ a parent, other adult relative, legal guardian, or in an 
 13.4   adult-supervised supportive living arrangement, MFIP-S must be 
 13.5   paid, when possible, in the form of a protective payment on 
 13.6   behalf of the minor parent and minor child ~~in accordance with~~ 
 13.7   according to section 256J.39, subdivisions 2 to 4. 
 13.8      Sec. 23.  Minnesota Statutes 1997 Supplement, section 
 13.9   256J.20, subdivision 3, is amended to read: 
 13.10     Subd. 3.  [OTHER PROPERTY LIMITATIONS.] To be eligible for 
 13.11  MFIP-S, the equity value of all nonexcluded real and personal 
 13.12  property of the assistance unit must not exceed $2,000 for 
 13.13  applicants and $5,000 for ongoing ~~recipients~~ participants.  The 
 13.14  value of assets in clauses (1) to (18) must be excluded when 
 13.15  determining the equity value of real and personal property: 
 13.16     (1) a licensed ~~vehicles~~ vehicle up to a ~~total market~~ loan 
 13.17  value of less than or equal to $7,500.  The county agency shall 
 13.18  apply any excess ~~market~~ loan value as if it were equity value to 
 13.19  the asset limit described in this section.  If the assistance 
 13.20  unit owns more than one licensed vehicle, the county agency 
 13.21  shall determine the vehicle with the highest ~~market~~ loan value 
 13.22  and count only the ~~market~~ loan value over $7,500.  The county 
 13.23  agency shall count the ~~market~~ loan value of all other vehicles 
 13.24  and apply this amount as if it were equity value to the asset 
 13.25  limit described in this section.  The value of special equipment 
 13.26  for a handicapped member of the assistance unit is excluded.  To 
 13.27  establish the ~~market~~ loan value of vehicles, a county agency 
 13.28  must use the N.A.D.A. Official Used Car Guide, Midwest Edition, 
 13.29  for newer model cars.  ~~The N.A.D.A. Official Used Car Guide,~~ 
 13.30  ~~Midwest Edition, is incorporated by reference.~~  When a vehicle 
 13.31  is not listed in the guidebook, or when the applicant or 
 13.32  participant disputes the loan value listed in the guidebook as 
 13.33  unreasonable given the condition of the particular vehicle, the 
 13.34  county agency may require the applicant or participant ~~to~~ 
 13.35  document the loan value by securing a written statement from a 
 13.36  motor vehicle dealer licensed under section 168.27, stating the 
 14.1   amount that the dealer would pay to purchase the vehicle.  The 
 14.2   county agency shall reimburse the applicant or participant for 
 14.3   the cost of a written statement that documents a lower loan 
 14.4   value; 
 14.5      (2) the value of life insurance policies for members of the 
 14.6   assistance unit; 
 14.7      (3) one burial plot per member of an assistance unit; 
 14.8      (4) the value of personal property needed to produce earned 
 14.9   income, including tools, implements, farm animals, inventory, 
 14.10  business loans, business checking and savings accounts used at 
 14.11  least annually and are used exclusively for the operation of a 
 14.12  self-employment business, and any motor vehicles if the vehicles 
 14.13  are essential for the self-employment business; 
 14.14     (5) the value of personal property not otherwise specified 
 14.15  which is commonly used by household members in day-to-day living 
 14.16  such as clothing, necessary household furniture, equipment, and 
 14.17  other basic maintenance items essential for daily living; 
 14.18     (6) the value of real and personal property owned by a 
 14.19  recipient of Supplemental Security Income or Minnesota 
 14.20  supplemental aid; 
 14.21     (7) the value of corrective payments, but only for the 
 14.22  month in which the payment is received and for the following 
 14.23  month; 
 14.24     (8) a mobile home used by an applicant or participant as 
 14.25  the applicant's or participant's home; 
 14.26     (9) money in a separate escrow account that is needed to 
 14.27  pay real estate taxes or insurance and that is used for this 
 14.28  purpose; 
 14.29     (10) money held in escrow to cover employee FICA, employee 
 14.30  tax withholding, sales tax withholding, employee worker 
 14.31  compensation, business insurance, property rental, property 
 14.32  taxes, and other costs that are paid at least annually, but less 
 14.33  often than monthly; 
 14.34     (11) monthly assistance ~~and~~, emergency assistance, and 
 14.35  diversionary payments for the current month's needs; 
 14.36     (12) the value of school loans, grants, or scholarships for 
 15.1   the period they are intended to cover; 
 15.2      (13) payments listed in section 256J.21, subdivision 2, 
 15.3   clause (9), which are held in escrow for a period not to exceed 
 15.4   three months to replace or repair personal or real property; 
 15.5      (14) income received in a budget month through the end of 
 15.6   the ~~budget~~ payment month; 
 15.7      (15) savings from earned income of a minor child or a minor 
 15.8   parent that are set aside in a separate account designated 
 15.9   specifically for future education or employment costs; 
 15.10     (16) the federal earned income ~~tax~~ credit ~~and~~, Minnesota 
 15.11  working family credit, state and federal income tax refunds, 
 15.12  state homeowners credit and state renters credit in the month 
 15.13  received and the following month; 
 15.14     (17) payments excluded under federal law as long as those 
 15.15  payments are held in a separate account from any nonexcluded 
 15.16  funds; and 
 15.17     (18) money received by a participant of the corps to career 
 15.18  program under section 84.0887, subdivision 2, paragraph (b), as 
 15.19  a postservice benefit under the federal Americorps Act. 
 15.20     Sec. 24.  Minnesota Statutes 1997 Supplement, section 
 15.21  256J.21, is amended to read: 
 15.22     256J.21 [INCOME LIMITATIONS.] 
 15.23     Subdivision 1.  [INCOME INCLUSIONS.] To determine MFIP-S 
 15.24  eligibility, the county agency must evaluate income received by 
 15.25  members of an assistance unit, or by other persons whose income 
 15.26  is considered available to the assistance unit, and only count 
 15.27  income that is available to the member of the assistance unit.  
 15.28  Income is available if the individual has legal access to the 
 15.29  income.  All payments, unless specifically excluded in 
 15.30  subdivision 2, must be counted as income. 
 15.31     Subd. 2.  [INCOME EXCLUSIONS.] (a) The following must be 
 15.32  excluded in determining a family's available income: 
 15.33     (1) payments for basic care, difficulty of care, and 
 15.34  clothing allowances received for providing family foster care to 
 15.35  children or adults under Minnesota Rules, parts 9545.0010 to 
 15.36  9545.0260 and 9555.5050 to 9555.6265, and payments received and 
 16.1   used for care and maintenance of a third-party beneficiary who 
 16.2   is not a household member; 
 16.3      (2) reimbursements for employment training received through 
 16.4   the Job Training Partnership Act, United States Code, title 29, 
 16.5   chapter 19, sections 1501 to 1792b; 
 16.6      (3) reimbursement for out-of-pocket expenses incurred while 
 16.7   performing volunteer services, jury duty, or employment; 
 16.8      (4) all educational assistance, except the county agency 
 16.9   must count graduate student teaching assistantships, 
 16.10  fellowships, and other similar paid work as earned income and, 
 16.11  after allowing deductions for any unmet and necessary 
 16.12  educational expenses, shall count scholarships or grants awarded 
 16.13  to graduate students that do not require teaching or research as 
 16.14  unearned income; 
 16.15     (5) loans, regardless of purpose, from public or private 
 16.16  lending institutions, governmental lending institutions, or 
 16.17  governmental agencies; 
 16.18     (6) loans from private individuals, regardless of purpose, 
 16.19  provided an applicant or participant documents that the lender 
 16.20  expects repayment; 
 16.21     (7)(i) state ~~and federal~~ income tax refunds; 
 16.22     (ii) federal income tax refunds; 
 16.23     (8)(i) ~~state and~~ federal earned income credits; 
 16.24     (ii) Minnesota working family credits; 
 16.25     (iii) state homeowners credits; 
 16.26     (iv) state renters credits; 
 16.27     (9) funds received for reimbursement, replacement, or 
 16.28  rebate of personal or real property when these payments are made 
 16.29  by public agencies, awarded by a court, solicited through public 
 16.30  appeal, or made as a grant by a federal agency, state or local 
 16.31  government, or disaster assistance organizations, subsequent to 
 16.32  a presidential declaration of disaster; 
 16.33     (10) the portion of an insurance settlement that is used to 
 16.34  pay medical, funeral, and burial expenses, or to repair or 
 16.35  replace insured property; 
 16.36     (11) reimbursements for medical expenses that cannot be 
 17.1   paid by medical assistance; 
 17.2      (12) payments by a vocational rehabilitation program 
 17.3   administered by the state under chapter 268A, except those 
 17.4   payments that are for current living expenses; 
 17.5      (13) in-kind income, including any payments directly made 
 17.6   by a third party to a provider of goods and services; 
 17.7      (14) assistance payments to correct underpayments, but only 
 17.8   for the month in which the payment is received; 
 17.9      (15) emergency assistance payments; 
 17.10     (16) funeral and cemetery payments as provided by section 
 17.11  256.935; 
 17.12     (17) nonrecurring cash gifts of $30 or less, not exceeding 
 17.13  $30 per participant in a calendar month; 
 17.14     (18) any form of energy assistance payment made through 
 17.15  Public Law Number 97-35, Low-Income Home Energy Assistance Act 
 17.16  of 1981, payments made directly to energy providers by other 
 17.17  public and private agencies, and any form of credit or rebate 
 17.18  payment issued by energy providers; 
 17.19     (19) Supplemental Security Income, including retroactive 
 17.20  payments; 
 17.21     (20) Minnesota supplemental aid, including retroactive 
 17.22  payments; 
 17.23     (21) proceeds from the sale of real or personal property; 
 17.24     (22) adoption assistance payments under section 259.67; 
 17.25     (23) state-funded family subsidy program payments made 
 17.26  under section 252.32 to help families care for children with 
 17.27  mental retardation or related conditions; 
 17.28     (24) interest payments and dividends from property that is 
 17.29  not excluded from and that does not exceed the asset limit; 
 17.30     (25) rent rebates; 
 17.31     (26) income earned by a minor caregiver or minor child who 
 17.32  is at least a half-time student in an approved secondary 
 17.33  education program; 
 17.34     (27) income earned by a caregiver under age 20 who is at 
 17.35  least a half-time student in an approved secondary education 
 17.36  program; 
 18.1      (28) MFIP-S child care payments under section 119B.05; 
 18.2      (29) all other payments made through MFIP-S to support a 
 18.3   caregiver's pursuit of greater self-support; 
 18.4      (30) income a participant receives related to shared living 
 18.5   expenses; 
 18.6      (31) reverse mortgages; 
 18.7      (32) benefits provided by the Child Nutrition Act of 1966, 
 18.8   United States Code, title 42, chapter 13A, sections 1771 to 
 18.9   1790; 
 18.10     (33) benefits provided by the women, infants, and children 
 18.11  (WIC) nutrition program, United States Code, title 42, chapter 
 18.12  13A, section 1786; 
 18.13     (34) benefits from the National School Lunch Act, United 
 18.14  States Code, title 42, chapter 13, sections 1751 to 1769e; 
 18.15     (35) relocation assistance for displaced persons under the 
 18.16  Uniform Relocation Assistance and Real Property Acquisition 
 18.17  Policies Act of 1970, United States Code, title 42, chapter 61, 
 18.18  subchapter II, section 4636, or the National Housing Act, United 
 18.19  States Code, title 12, chapter 13, sections 1701 to 1750jj; 
 18.20     (36) benefits from the Trade Act of 1974, United States 
 18.21  Code, title 19, chapter 12, part 2, sections 2271 to 2322; 
 18.22     (37) war reparations payments to Japanese Americans and 
 18.23  Aleuts under United States Code, title 50, sections 1989 to 
 18.24  1989d; 
 18.25     (38) payments to veterans or their dependents as a result 
 18.26  of legal settlements regarding Agent Orange or other chemical 
 18.27  exposure under Public Law Number 101-239, section 10405, 
 18.28  paragraph (a)(2)(E); 
 18.29     (39) income that is otherwise specifically excluded from 
 18.30  the MFIP-S program consideration in federal law, state law, or 
 18.31  federal regulation; 
 18.32     (40) security and utility deposit refunds; 
 18.33     (41) American Indian tribal land settlements excluded under 
 18.34  Public Law Numbers 98-123, 98-124, and 99-377 to the Mississippi 
 18.35  Band Chippewa Indians of White Earth, Leech Lake, and Mille Lacs 
 18.36  reservations and payments to members of the White Earth Band, 
 19.1   under United States Code, title 25, chapter 9, section 331, and 
 19.2   chapter 16, section 1407; 
 19.3      (42) all income of the minor parent's parent and stepparent 
 19.4   when determining the grant for the minor parent in households 
 19.5   that include a minor parent living with a parent or stepparent 
 19.6   on MFIP-S with other ~~dependent~~ children; and 
 19.7      (43) income of the minor parent's parent and stepparent 
 19.8   equal to 200 percent of the federal poverty guideline for a 
 19.9   family size not including the minor parent and the minor 
 19.10  parent's child in households that include a minor parent living 
 19.11  with a parent or stepparent not on MFIP-S when determining the 
 19.12  grant for the minor parent.  The remainder of income is deemed 
 19.13  as specified in section 256J.37, subdivision ~~1~~ 1b; 
 19.14     (44) payments made to children eligible for relative 
 19.15  custody assistance under section 257.85; and 
 19.16     (45) vendor payments for goods and services made on behalf 
 19.17  of a client unless the client has the option of receiving the 
 19.18  payment in cash. 
 19.19     Subd. 3.  [INITIAL INCOME TEST.] The county agency shall 
 19.20  determine initial eligibility by considering all earned and 
 19.21  unearned income that is not excluded under subdivision 2.  To be 
 19.22  eligible for MFIP-S, the assistance unit's countable income 
 19.23  minus the disregards in paragraphs (a) and (b) must be below the 
 19.24  transitional standard of assistance according to section 256J.24 
 19.25  for that size assistance unit. 
 19.26     (a) The initial eligibility determination must disregard 
 19.27  the following items: 
 19.28     (1) the employment disregard is 18 percent of the gross 
 19.29  earned income whether or not the member is working full time or 
 19.30  part time; 
 19.31     (2) dependent care costs must be deducted from gross earned 
 19.32  income for the actual amount paid for dependent care up to ~~the~~ a 
 19.33  maximum ~~disregard allowed~~ of $200 for each child less than two 
 19.34  years of age, and $175 for each child two years of age and older 
 19.35  under this chapter and chapter 119B; ~~and~~ 
 19.36     (3) all payments made according to a court order for the 
 20.1   support of children not living in the assistance unit's 
 20.2   household shall be disregarded from the income of the person 
 20.3   with the legal obligation to pay support, provided that, if 
 20.4   there has been a change in the financial circumstances of the 
 20.5   person with the legal obligation to pay support since the 
 20.6   support order was entered, the person with the legal obligation 
 20.7   to pay support has petitioned for a modification of the support 
 20.8   order; and 
 20.9      (4) an allocation for the unmet need of an ineligible 
 20.10  spouse or an ineligible child under the age of 21 for whom the 
 20.11  caregiver is financially responsible and lives with the 
 20.12  caregiver according to section 256J.36. 
 20.13     (b) Notwithstanding paragraph (a), when determining initial 
 20.14  eligibility for ~~applicants who have~~ applicant units when at 
 20.15  least one member has received AFDC, family general assistance, 
 20.16  MFIP, MFIP-R, work first, or MFIP-S in this state within four 
 20.17  months of the most recent application for MFIP-S, the employment 
 20.18  disregard for all unit members is 36 percent of the gross earned 
 20.19  income. 
 20.20     After initial eligibility is established, the assistance 
 20.21  payment calculation is based on the monthly income test. 
 20.22     Subd. 4.  [MONTHLY INCOME TEST AND DETERMINATION OF 
 20.23  ASSISTANCE PAYMENT.] The county agency shall determine ongoing 
 20.24  eligibility and the assistance payment amount according to the 
 20.25  monthly income test.  To be eligible for MFIP-S, the result of 
 20.26  the computations in paragraphs (a) to (e) must be at least $1. 
 20.27     (a) Apply a 36 percent income disregard to gross earnings 
 20.28  and subtract this amount from the family wage level.  If the 
 20.29  difference is equal to or greater than the transitional 
 20.30  standard, the assistance payment is equal to the transitional 
 20.31  standard.  If the difference is less than the transitional 
 20.32  standard, the assistance payment is equal to the difference.  
 20.33  The employment disregard in this paragraph must be deducted 
 20.34  every month there is earned income. 
 20.35     (b) All payments made according to a court order for the 
 20.36  support of children not living in the assistance unit's 
 21.1   household must be disregarded from the income of the person with 
 21.2   the legal obligation to pay support, provided that, if there has 
 21.3   been a change in the financial circumstances of the person with 
 21.4   the legal obligation to pay support since the support order was 
 21.5   entered, the person with the legal obligation to pay support has 
 21.6   petitioned for a modification of the court order. 
 21.7      (c) An allocation for the unmet need of an ineligible 
 21.8   spouse or an ineligible child under the age of 21 for whom the 
 21.9   caregiver is financially responsible and lives with the 
 21.10  caregiver according to section 256J.36. 
 21.11     (d) Subtract unearned income dollar for dollar from the 
 21.12  transitional standard to determine the assistance payment amount.
 21.13     ~~(d)~~ (e) When income is both earned and unearned, the amount 
 21.14  of the assistance payment must be determined by first treating 
 21.15  gross earned income as specified in paragraph (a).  After 
 21.16  determining the amount of the assistance payment under paragraph 
 21.17  (a), unearned income must be subtracted from that amount dollar 
 21.18  for dollar to determine the assistance payment amount. 
 21.19     ~~(e)~~ (f) When the monthly income is greater than the 
 21.20  transitional or family wage level standard after applicable 
 21.21  deductions and the income will only exceed the standard for one 
 21.22  month, the county agency must suspend the assistance payment for 
 21.23  the payment month. 
 21.24     Subd. 5.  [DISTRIBUTION OF INCOME.] The income of all 
 21.25  members of the assistance unit must be counted.  Income may also 
 21.26  be deemed from ineligible persons to the assistance unit.  
 21.27  Income must be attributed to the person who earns it or to the 
 21.28  assistance unit according to paragraphs (a) to (c). 
 21.29     (a) Funds distributed from a trust, whether from the 
 21.30  principal holdings or sale of trust property or from the 
 21.31  interest and other earnings of the trust holdings, must be 
 21.32  considered income when the income is legally available to an 
 21.33  applicant or participant.  Trusts are presumed legally available 
 21.34  unless an applicant or participant can document that the trust 
 21.35  is not legally available. 
 21.36     (b) Income from jointly owned property must be divided 
 22.1   equally among property owners unless the terms of ownership 
 22.2   provide for a different distribution. 
 22.3      (c) Deductions are not allowed from the gross income of a 
 22.4   financially responsible household member or by the members of an 
 22.5   assistance unit to meet a current or prior debt. 
 22.6      Sec. 25.  Minnesota Statutes 1997 Supplement, section 
 22.7   256J.24, subdivision 1, is amended to read: 
 22.8      Subdivision 1.  [MFIP-S ASSISTANCE UNIT.] An MFIP-S 
 22.9   assistance unit is either a group of individuals with at least 
 22.10  one minor child who live together whose needs, assets, and 
 22.11  income are considered together and who receive MFIP-S 
 22.12  assistance, or a pregnant woman who receives MFIP-S assistance.  
 22.13  The parent(s) of a minor caregiver may choose to receive a 
 22.14  MFIP-S grant when: 
 22.15     (1) the adult parent(s) have no other minor children in the 
 22.16  household; and 
 22.17     (2) the minor parent and the minor parent's child are 
 22.18  living together with the adult parent(s); and 
 22.19     (3) the minor parent and the minor parent's child receive 
 22.20  or would be eligible to receive MFIP-S if they were not 
 22.21  receiving Supplemental Security Income benefits. 
 22.22     Individuals identified in subdivision 2 must be included in 
 22.23  the MFIP-S assistance unit.  Individuals identified in 
 22.24  subdivision 3 must be excluded from the assistance unit.  
 22.25  Individuals identified in subdivision 4 may be included in the 
 22.26  assistance unit at their option.  Individuals not included in 
 22.27  the assistance unit who are identified in section 256J.37, 
 22.28  ~~subdivision~~ subdivisions 1 ~~or~~ and 2, must have their income 
 22.29  and assets considered when determining eligibility and benefits 
 22.30  for an MFIP-S assistance unit.  All assistance unit members, 
 22.31  whether mandatory or elective, who live together and for whom 
 22.32  one caregiver or two caregivers apply must be included in a 
 22.33  single assistance unit. 
 22.34     Sec. 26.  Minnesota Statutes 1997 Supplement, section 
 22.35  256J.24, subdivision 2, is amended to read: 
 22.36     Subd. 2.  [MANDATORY ASSISTANCE UNIT COMPOSITION.] Except 
 23.1   for minor caregivers and their children who ~~are~~ must be in a 
 23.2   separate assistance unit from the other persons in the 
 23.3   household, when the following individuals live together, they 
 23.4   must be included in the assistance unit: 
 23.5      (1) a minor child, including a pregnant minor; 
 23.6      (2) the minor child's siblings, half-siblings, and 
 23.7   step-siblings; ~~and~~ 
 23.8      (3) the minor child's natural, adoptive parents, and 
 23.9   stepparents; 
 23.10     (4) the spouse of a pregnant woman; and 
 23.11     (5) a pregnant minor with no other children receiving 
 23.12  assistance in a mandatory unit in clause (3). 
 23.13     Sec. 27.  Minnesota Statutes 1997 Supplement, section 
 23.14  256J.24, subdivision 3, is amended to read: 
 23.15     Subd. 3.  [INDIVIDUALS WHO MUST BE EXCLUDED FROM AN 
 23.16  ASSISTANCE UNIT.] The following individuals must be excluded 
 23.17  from an assistance unit: 
 23.18     (1) individuals receiving Supplemental Security Income or 
 23.19  Minnesota supplemental aid; 
 23.20     (2) individuals living at home while performing 
 23.21  court-imposed, unpaid community service work due to a criminal 
 23.22  conviction; 
 23.23     (3) individuals disqualified from the food stamp program or 
 23.24  MFIP-S, until the disqualification ends; 
 23.25     (4) children on whose behalf foster care payments under 
 23.26  title IV-E of the Social Security Act are made, except as 
 23.27  provided in section 256J.74, subdivision 2; ~~and~~ 
 23.28     (5) children receiving ongoing monthly adoption assistance 
 23.29  payments under section ~~269.67~~ 259.67; and 
 23.30     (6) individuals who have received public assistance funded 
 23.31  through county, state, or federal dollars or general assistance 
 23.32  in another state for that month's needs. 
 23.33     Sec. 28.  Minnesota Statutes 1997 Supplement, section 
 23.34  256J.24, subdivision 4, is amended to read: 
 23.35     Subd. 4.  [INDIVIDUALS WHO MAY ELECT TO BE INCLUDED IN THE 
 23.36  ASSISTANCE UNIT.] (a) The minor child's eligible caregiver may 
 24.1   choose to be in the assistance unit, if the caregiver is not 
 24.2   required to be in the assistance unit under subdivision 2.  If 
 24.3   the relative caregiver chooses to be in the assistance unit, 
 24.4   that person's spouse must also be in the unit. 
 24.5      (b) A title IV-E of the Social Security Act, United States 
 24.6   Code, title 42, chapter 7, subchapter IV, part E, relative 
 24.7   foster care provider may elect to be included in an assistance 
 24.8   unit.  When the relative foster care provider chooses to be an 
 24.9   assistance unit, the spouse of the relative foster care provider 
 24.10  must be included in the unit with the relative foster care 
 24.11  provider.  The title IV-E foster care provider does not need to 
 24.12  have a minor child living in the home to receive MFIP-S. 
 24.13     (c) The adult parent(s) of a minor parent is eligible to be 
 24.14  a separate assistance unit from the minor parent and the minor 
 24.15  parent's child when: 
 24.16     (1) the adult parent(s) have no other minor children in the 
 24.17  household; and 
 24.18     (2) the minor parent and the minor parent's child are 
 24.19  living together with the adult parent(s); and 
 24.20     (3) the minor parent and the minor parent's child receive 
 24.21  or would be eligible to receive MFIP-S if they were not 
 24.22  receiving SSI benefits. 
 24.23     Sec. 29.  Minnesota Statutes 1997 Supplement, section 
 24.24  256J.24, is amended by adding a subdivision to read: 
 24.25     Subd. 5a.  [FOOD PORTION OF MFIP-S TRANSITIONAL 
 24.26  STANDARD.] The commissioner shall increase the food portion of 
 24.27  the MFIP-S transitional standard by October 1 each year 
 24.28  beginning October 1998 to reflect the cost-of-living adjustments 
 24.29  to the Food Stamp Program.  The commissioner shall annually 
 24.30  publish in the State Register the transitional standard for an 
 24.31  assistance unit of sizes 1 to 10. 
 24.32     Sec. 30.  Minnesota Statutes 1997 Supplement, section 
 24.33  256J.26, subdivision 1, is amended to read: 
 24.34     Subdivision 1.  [PERSON CONVICTED OF DRUG OFFENSES.] (a) 
 24.35  Applicants or ~~recipients~~ participants who have been convicted of 
 24.36  a drug offense after July 1, 1997, may, if otherwise eligible, 
 25.1   receive AFDC or MFIP-S benefits subject to the following 
 25.2   conditions: 
 25.3      (1) Benefits for the entire assistance unit must be paid in 
 25.4   vendor form for shelter and utilities during any time the 
 25.5   applicant is part of the assistance unit~~;~~. 
 25.6      (2) The convicted applicant or ~~recipient~~ participant shall 
 25.7   be subject to random drug testing as a condition of continued 
 25.8   eligibility and ~~is subject to sanctions under section 256J.46~~ 
 25.9   following any positive test for an illegal controlled substance~~,~~ 
 25.10  ~~except that the grant must continue to be vendor paid under~~ 
 25.11  ~~clause (1).~~  
 25.12     ~~For purposes of this subdivision, section 256J.46 is~~ 
 25.13  ~~effective July 1, 1997.~~ 
 25.14     ~~This subdivision also applies to persons who receive food~~ 
 25.15  ~~stamps under section 115 of the Personal Responsibility and Work~~ 
 25.16  ~~Opportunity Reconciliation Act of 1996.~~  is subject to the 
 25.17  following sanctions: 
 25.18     (i) for failing a drug test the first time, the 
 25.19  participant's grant shall be reduced by ten percent of the 
 25.20  MFIP-S transitional standard or the interstate transitional 
 25.21  standard, whichever is applicable; or 
 25.22     (ii) for failing a drug test two or more times, the 
 25.23  participant's shelter costs shall be vendor paid up to the 
 25.24  amount of the cash portion of the MFIP-S grant or interstate 
 25.25  transitional standard. 
 25.26     (3) At county option, the participant's utilities may also 
 25.27  be vendor paid up to the amount of the cash portion of MFIP-S 
 25.28  grant or interstate transitional standard.  
 25.29     (4) The residual amount of the grant after the vendor 
 25.30  payment, if any, must be reduced by an amount equal to 30 
 25.31  percent of the MFIP-S transitional standard or the interstate 
 25.32  transitional standard, whichever is applicable. 
 25.33     (b) Applicants or participants who have been convicted of a 
 25.34  drug offense after July 1, 1997, may, if otherwise eligible, 
 25.35  receive food stamps if the convicted applicant or participant is 
 25.36  subject to random drug testing as a condition of continued 
 26.1   eligibility.  Following a positive test for an illegal 
 26.2   controlled substance, the applicant is subject to the following 
 26.3   sanctions: 
 26.4      (1) for failing a drug test the first time, food stamps 
 26.5   shall be reduced by ten percent of the applicable food stamp 
 26.6   allotment; and 
 26.7      (2) for failing a drug test two or more times, food stamps 
 26.8   shall be reduced by an amount equal to 30 percent of the 
 26.9   applicable food stamp allotment.  
 26.10     ~~(b)~~ (c) For the purposes of this subdivision, "drug offense"
 26.11  means a conviction that occurred after July 1, 1997, of sections 
 26.12  152.021 to 152.025, 152.0261, or 152.096.  Drug offense also 
 26.13  means a conviction in another jurisdiction of the possession, 
 26.14  use, or distribution of a controlled substance, or conspiracy to 
 26.15  commit any of these offenses, if the offense occurred after July 
 26.16  1, 1997, and the conviction is a felony offense in that 
 26.17  jurisdiction, or in the case of New Jersey, a high misdemeanor. 
 26.18     Sec. 31.  Minnesota Statutes 1997 Supplement, section 
 26.19  256J.26, subdivision 2, is amended to read: 
 26.20     Subd. 2.  [PAROLE VIOLATORS.] An individual violating a 
 26.21  condition of probation or parole or supervised release imposed 
 26.22  under federal law or the law of any state is ~~ineligible to~~ 
 26.23  ~~receive~~ disqualified from receiving AFDC or MFIP-S. 
 26.24     Sec. 32.  Minnesota Statutes 1997 Supplement, section 
 26.25  256J.26, subdivision 3, is amended to read: 
 26.26     Subd. 3.  [FLEEING FELONS.] An individual who is fleeing to 
 26.27  avoid prosecution, or custody, or confinement after conviction 
 26.28  for a crime that is a felony under the laws of the jurisdiction 
 26.29  from which the individual flees, or in the case of New Jersey, 
 26.30  is a high misdemeanor, is ~~ineligible to receive~~ disqualified 
 26.31  from receiving AFDC or MFIP-S. 
 26.32     Sec. 33.  Minnesota Statutes 1997 Supplement, section 
 26.33  256J.26, subdivision 4, is amended to read: 
 26.34     Subd. 4.  [DENIAL OF ASSISTANCE FOR TEN YEARS TO A PERSON 
 26.35  FOUND TO HAVE FRAUDULENTLY MISREPRESENTED RESIDENCY.] An 
 26.36  individual who is convicted in federal or state court of having 
 27.1   made a fraudulent statement or representation with respect to 
 27.2   the place of residence of the individual in order to receive 
 27.3   assistance simultaneously from two or more states is ~~ineligible~~ 
 27.4   ~~to receive~~ disqualified from receiving AFDC or MFIP-S for ten 
 27.5   years beginning on the date of the conviction. 
 27.6      Sec. 34.  Minnesota Statutes 1997 Supplement, section 
 27.7   256J.28, subdivision 2, is amended to read: 
 27.8      Subd. 2.  [FOOD STAMPS FOR HOUSEHOLD MEMBERS NOT IN THE 
 27.9   ASSISTANCE UNIT.] (a) For household members who purchase and 
 27.10  prepare food with the MFIP-S assistance unit but are not part of 
 27.11  the assistance unit, the county agency must determine a separate 
 27.12  food stamp benefit based on regulations agreed upon with the 
 27.13  United States Department of Agriculture. 
 27.14     ~~(b) This subdivision does not apply to optional members who~~ 
 27.15  ~~have chosen not to be in the assistance unit.~~ 
 27.16     ~~(c)~~ (b) Fair hearing requirements for persons who receive 
 27.17  food stamps under this subdivision are governed by section 
 27.18  256.045, and Code of Federal Regulations, title 7, subtitle B, 
 27.19  chapter II, part 273, section 273.15. 
 27.20     Sec. 35.  Minnesota Statutes 1997 Supplement, section 
 27.21  256J.28, subdivision 4, is amended to read: 
 27.22     Subd. 4.  [FOOD PORTION OF MFIP-S ASSISTANCE GRANT.] ~~(a)~~ 
 27.23  The MFIP-S assistance grant must be reduced in an amount equal 
 27.24  to the food portion of the transitional standard for an 
 27.25  assistance unit when a relative caregiver chooses not to be part 
 27.26  of the assistance unit and is exempt from work activities under 
 27.27  this chapter. 
 27.28     ~~(b) The food portion of the MFIP-S grant must be reduced by~~ 
 27.29  ~~$30 for MFIP-S recipients who are also recipients of public~~ 
 27.30  ~~housing subsidies.~~ 
 27.31     Sec. 36.  Minnesota Statutes 1997 Supplement, section 
 27.32  256J.30, subdivision 10, is amended to read: 
 27.33     Subd. 10.  [COOPERATION WITH HEALTH CARE BENEFITS.] (a) The 
 27.34  caregiver of a minor child must cooperate with the county agency 
 27.35  to identify and provide information to assist the county agency 
 27.36  in pursuing third-party liability for medical services. 
 28.1      (b) A caregiver must assign to the department any rights to 
 28.2   health insurance policy benefits the caregiver has during the 
 28.3   period of MFIP-S eligibility. 
 28.4      (c) A caregiver must identify any third party who may be 
 28.5   liable for care and services available under the medical 
 28.6   assistance program on behalf of the applicant or participant and 
 28.7   all other assistance unit members. 
 28.8      (d) When a participant refuses to identify any third party 
 28.9   who may be liable for care and services, the recipient must be 
 28.10  sanctioned as provided in section 256J.46, subdivision 1.  The 
 28.11  recipient is also ineligible for medical assistance ~~for a~~ 
 28.12  ~~minimum of one month and~~ until the recipient cooperates with the 
 28.13  requirements of this subdivision. 
 28.14     Sec. 37.  Minnesota Statutes 1997 Supplement, section 
 28.15  256J.30, subdivision 11, is amended to read: 
 28.16     Subd. 11.  [REQUIREMENT TO ASSIGN SUPPORT AND MAINTENANCE 
 28.17  RIGHTS.] ~~To be eligible~~ An assistance unit is ineligible for 
 28.18  MFIP-S~~,~~ unless the caregiver ~~must assign~~ assigns all rights to 
 28.19  child support and spousal maintenance benefits according 
 28.20  to ~~sections 256.74, subdivision 5, and~~ section 256.741~~, if~~ 
 28.21  ~~enacted~~. 
 28.22     Sec. 38.  Minnesota Statutes 1997 Supplement, section 
 28.23  256J.31, subdivision 5, is amended to read: 
 28.24     Subd. 5.  [MAILING OF NOTICE.] The notice of adverse action 
 28.25  shall be issued according to paragraphs (a) to (c). 
 28.26     (a) A county agency shall mail a notice of adverse action 
 28.27  at least ten days before the effective date of the adverse 
 28.28  action, except as provided in paragraphs (b) and (c). 
 28.29     (b) A county agency must mail a notice of adverse action at 
 28.30  least five days before the effective date of the adverse action 
 28.31  when the county agency has factual information that requires an 
 28.32  action to reduce, suspend, or terminate assistance based on 
 28.33  probable fraud. 
 28.34     (c) A county agency shall mail a notice of adverse action 
 28.35  before or on the effective date of the adverse action when the 
 28.36  county agency: 
 29.1      (1) receives the caregiver's signed monthly MFIP-S 
 29.2   household report form that includes information that requires 
 29.3   payment reduction, suspension, or termination; 
 29.4      (2) is informed of the death of a participant or the payee; 
 29.5      (3) receives a signed statement from the caregiver that 
 29.6   assistance is no longer wanted; 
 29.7      (4) receives a signed statement from the caregiver that 
 29.8   provides information that requires the termination or reduction 
 29.9   of assistance; 
 29.10     (5) verifies that a member of the assistance unit is absent 
 29.11  from the home and does not meet temporary absence provisions in 
 29.12  section 256J.13; 
 29.13     (6) verifies that a member of the assistance unit has 
 29.14  entered a regional treatment center or a licensed residential 
 29.15  facility for medical or psychological treatment or 
 29.16  rehabilitation; 
 29.17     (7) verifies that a member of an assistance unit has been 
 29.18  placed in foster care, and the provisions of section 256J.13, 
 29.19  subdivision 2, paragraph ~~(b)~~ (c), clause (2), do not apply; 
 29.20     (8) verifies that a member of an assistance unit has been 
 29.21  approved to receive assistance by another state; or 
 29.22     (9) cannot locate a caregiver. 
 29.23     Sec. 39.  Minnesota Statutes 1997 Supplement, section 
 29.24  256J.31, subdivision 10, is amended to read: 
 29.25     Subd. 10.  [PROTECTION FROM GARNISHMENT.] MFIP-S grants or 
 29.26  earnings of a caregiver ~~while participating in full or part-time~~ 
 29.27  ~~employment or training~~ shall be protected from garnishment.  
 29.28  This protection for earnings shall extend for a period of six 
 29.29  months from the date of termination from MFIP-S. 
 29.30     Sec. 40.  Minnesota Statutes 1997 Supplement, section 
 29.31  256J.32, subdivision 4, is amended to read: 
 29.32     Subd. 4.  [FACTORS TO BE VERIFIED.] The county agency shall 
 29.33  verify the following at application: 
 29.34     (1) identity of adults; 
 29.35     (2) presence of the minor child in the home, if 
 29.36  questionable; 
 30.1      (3) relationship of a minor child to caregivers in the 
 30.2   assistance unit; 
 30.3      (4) age, if necessary to determine MFIP-S eligibility; 
 30.4      (5) immigration status; 
 30.5      (6) social security number ~~in accordance with~~ according to 
 30.6   the requirements of section 256J.30, subdivision 12; 
 30.7      (7) income; 
 30.8      (8) self-employment expenses used as a deduction; 
 30.9      (9) source and purpose of deposits and withdrawals from 
 30.10  business accounts; 
 30.11     (10) spousal support and child support payments made to 
 30.12  persons outside the household; 
 30.13     (11) real property; 
 30.14     (12) vehicles; 
 30.15     (13) checking and savings accounts; 
 30.16     (14) savings certificates, savings bonds, stocks, and 
 30.17  individual retirement accounts; 
 30.18     (15) pregnancy, if related to eligibility; 
 30.19     (16) inconsistent information, if related to eligibility; 
 30.20     (17) medical insurance; 
 30.21     (18) anticipated graduation date of an 18-year-old; 
 30.22     (19) burial accounts; 
 30.23     (20) school attendance, if related to eligibility; ~~and~~ 
 30.24     (21) residence; 
 30.25     (22) a claim of domestic violence if used as a basis for a 
 30.26  deferral or exemption from the 60-month time limit in section 
 30.27  256J.42 or employment and training services requirements in 
 30.28  section 256J.56; and 
 30.29     (23) disability if used as an exemption from employment and 
 30.30  training services requirements under section 256J.56. 
 30.31     Sec. 41.  Minnesota Statutes 1997 Supplement, section 
 30.32  256J.32, subdivision 6, is amended to read: 
 30.33     Subd. 6.  [RECERTIFICATION.] The county agency shall 
 30.34  recertify eligibility in an annual face-to-face interview with 
 30.35  the participant and verify the following: 
 30.36     (1) presence of the minor child in the home, if 
 31.1   questionable; 
 31.2      (2) income, unless excluded, including self-employment 
 31.3   expenses used as a deduction or deposits or withdrawals from 
 31.4   business accounts; 
 31.5      (3) assets when the value is within $200 of the asset 
 31.6   limit; and 
 31.7      (4) inconsistent information, if related to eligibility.  
 31.8      Sec. 42.  Minnesota Statutes 1997 Supplement, section 
 31.9   256J.32, is amended by adding a subdivision to read: 
 31.10     Subd. 7.  [NOTICE TO UNDOCUMENTED PERSONS; RELEASE OF 
 31.11  PRIVATE DATA.] County agencies in consultation with the 
 31.12  department of human services shall provide notification to 
 31.13  undocumented persons regarding the release of personal data to 
 31.14  the immigration and naturalization service and develop protocol 
 31.15  regarding the release or sharing of data about undocumented 
 31.16  persons with the Immigration and Naturalization Service as 
 31.17  required under sections 404, 434, and 411A of the Personal 
 31.18  Responsibility and Work Opportunity Reconciliation Act of 1996.  
 31.19     Sec. 43.  Minnesota Statutes 1997 Supplement, section 
 31.20  256J.33, subdivision 1, is amended to read: 
 31.21     Subdivision 1.  [DETERMINATION OF ELIGIBILITY.] A county 
 31.22  agency must determine MFIP-S eligibility prospectively for a 
 31.23  payment month based on retrospectively assessing income and the 
 31.24  county agency's best estimate of the circumstances that will 
 31.25  exist in the payment month. 
 31.26     Except as described in section 256J.34, subdivision 1, when 
 31.27  prospective eligibility exists, a county agency must calculate 
 31.28  the amount of the assistance payment using retrospective 
 31.29  budgeting.  To determine MFIP-S eligibility and the assistance 
 31.30  payment amount, a county agency must apply countable income, 
 31.31  described in section 256J.37, subdivisions 3 to 10, received by 
 31.32  members of an assistance unit or by other persons whose income 
 31.33  is counted for the assistance unit, described under sections 
 31.34  256J.21 and 256J.37, subdivisions 1 ~~and~~ to 2. 
 31.35     This income must be applied to the transitional standard or 
 31.36  family wage standard subject to this section and sections 
 32.1   256J.34 to 256J.36.  Income received in a calendar month and not 
 32.2   otherwise excluded under section 256J.21, subdivision 2, must be 
 32.3   applied to the needs of an assistance unit. 
 32.4      Sec. 44.  Minnesota Statutes 1997 Supplement, section 
 32.5   256J.33, subdivision 4, is amended to read: 
 32.6      Subd. 4.  [MONTHLY INCOME TEST.] A county agency must apply 
 32.7   the monthly income test retrospectively for each month of MFIP-S 
 32.8   eligibility.  An assistance unit is not eligible when the 
 32.9   countable income equals or exceeds the transitional standard or 
 32.10  the family wage level for the assistance unit.  The income 
 32.11  applied against the monthly income test must include: 
 32.12     (1) gross earned income from employment, prior to mandatory 
 32.13  payroll deductions, voluntary payroll deductions, wage 
 32.14  authorizations, and after the disregards in section 256J.21, 
 32.15  subdivision ~~3~~ 4, and the allocations in section 256J.36, unless 
 32.16  the employment income is specifically excluded under section 
 32.17  256J.21, subdivision 2; 
 32.18     (2) gross earned income from self-employment less 
 32.19  deductions for self-employment expenses in section 256J.37, 
 32.20  subdivision 5, but prior to any reductions for personal or 
 32.21  business state and federal income taxes, personal FICA, personal 
 32.22  health and life insurance, and after the disregards in section 
 32.23  256J.21, subdivision ~~3~~ 4, and the allocations in section 
 32.24  256J.36; 
 32.25     (3) unearned income after deductions for allowable expenses 
 32.26  in section 256J.37, subdivision 9, and allocations in section 
 32.27  256J.36, unless the income has been specifically excluded in 
 32.28  section 256J.21, subdivision 2; 
 32.29     (4) gross earned income from employment as determined under 
 32.30  clause (1) which is received by a member of an assistance unit 
 32.31  who is a minor child or minor caregiver and less than a 
 32.32  half-time student; 
 32.33     (5) child support and spousal support received or 
 32.34  anticipated to be received by an assistance unit; 
 32.35     (6) the income of a parent when that parent is not included 
 32.36  in the assistance unit; 
 33.1      (7) the income of an eligible relative and spouse who seek 
 33.2   to be included in the assistance unit; and 
 33.3      (8) the unearned income of a minor child included in the 
 33.4   assistance unit. 
 33.5      Sec. 45.  Minnesota Statutes 1997 Supplement, section 
 33.6   256J.35, is amended to read: 
 33.7      256J.35 [AMOUNT OF ASSISTANCE PAYMENT.] 
 33.8      Except as provided in paragraphs (a) to ~~(c)~~ (d), the amount 
 33.9   of an assistance payment is equal to the difference between the 
 33.10  transitional standard or the Minnesota family wage level in 
 33.11  section 256J.24, whichever is less, and countable income. 
 33.12     (a) When MFIP-S eligibility exists for the month of 
 33.13  application, the amount of the assistance payment for the month 
 33.14  of application must be prorated from the date of application or 
 33.15  the date all other eligibility factors are met for that 
 33.16  applicant, whichever is later.  This provision applies when an 
 33.17  applicant loses at least one day of MFIP-S eligibility. 
 33.18     (b) MFIP-S overpayments to an assistance unit must be 
 33.19  recouped according to section 256J.38, subdivision 4. 
 33.20     (c) An initial assistance payment must not be made to an 
 33.21  applicant who is not eligible on the date payment is made. 
 33.22     (d) An individual whose needs have been otherwise provided 
 33.23  for in another state, in whole or in part by county, state, or 
 33.24  federal dollars during a month, is ineligible to receive MFIP-S 
 33.25  for the month. 
 33.26     Sec. 46.  Minnesota Statutes 1997 Supplement, section 
 33.27  256J.36, is amended to read: 
 33.28     256J.36 [ALLOCATION FOR UNMET NEED OF OTHER HOUSEHOLD 
 33.29  MEMBERS.] 
 33.30     Except as prohibited in paragraphs (a) and (b), an 
 33.31  allocation of income is allowed from the caregiver's income to 
 33.32  meet the unmet need of an ineligible spouse or an ineligible 
 33.33  child under the age of 21 for whom the caregiver is financially 
 33.34  responsible who also lives with the caregiver.  ~~An allocation is~~ 
 33.35  ~~allowed from the caregiver's income to meet the need of an~~ 
 33.36  ~~ineligible or excluded person.~~  That allocation is allowed in an 
 34.1   amount up to the difference between the MFIP-S ~~family allowance~~ 
 34.2   transitional standard for the assistance unit when that ~~excluded~~ 
 34.3   ~~or~~ ineligible person is included in the assistance unit and the 
 34.4   MFIP-S family allowance for the assistance unit when 
 34.5   the ~~excluded or~~ ineligible person is not included in the 
 34.6   assistance unit.  These allocations must be deducted from the 
 34.7   caregiver's counted earnings and from unearned income subject to 
 34.8   paragraphs (a) and (b). 
 34.9      (a) Income of a minor child in the assistance unit must not 
 34.10  be allocated to meet the need of ~~a~~ an ineligible person ~~who is~~ 
 34.11  ~~not a member of the assistance unit~~, including the child's 
 34.12  parent, even when that parent is the payee of the child's income.
 34.13     (b) Income of ~~an assistance unit~~ caregiver must not be 
 34.14  allocated to meet the needs of a disqualified person ~~ineligible~~ 
 34.15  ~~for failure to cooperate with program requirements including~~ 
 34.16  ~~child support requirements, a person ineligible due to fraud, or~~ 
 34.17  ~~a relative caregiver and the caregiver's spouse who opt out of~~ 
 34.18  ~~the assistance unit~~. 
 34.19     Sec. 47.  Minnesota Statutes 1997 Supplement, section 
 34.20  256J.37, subdivision 1, is amended to read: 
 34.21     Subdivision 1.  [DEEMED INCOME FROM INELIGIBLE HOUSEHOLD 
 34.22  MEMBERS.] Unless otherwise provided under subdivision 1a or 1b, 
 34.23  the income of ineligible household members must be deemed after 
 34.24  allowing the following disregards: 
 34.25     (1) the first 18 percent of the ~~excluded~~ ineligible family 
 34.26  member's gross earned income; 
 34.27     (2) amounts the ineligible person actually paid to 
 34.28  individuals not living in the same household but whom the 
 34.29  ineligible person claims or could claim as dependents for 
 34.30  determining federal personal income tax liability; 
 34.31     (3) ~~child or spousal support paid to a person who lives~~ 
 34.32  ~~outside of the household~~ all payments made by the ineligible 
 34.33  person according to a court order for the support of children 
 34.34  not living in the assistance unit's household shall be 
 34.35  disregarded from the income of the ineligible person, provided 
 34.36  that, if there has been a change in the financial circumstances 
 35.1   of the ineligible person since the support order was entered, 
 35.2   the ineligible person has petitioned for a modification of the 
 35.3   support order; and 
 35.4      (4) an amount for the needs of the ineligible person and 
 35.5   other persons who live in the household but are not included in 
 35.6   the assistance unit and are or could be claimed by an ineligible 
 35.7   person as dependents for determining federal personal income tax 
 35.8   liability.  This amount is equal to the difference between the 
 35.9   MFIP-S ~~need~~ transitional standard when the ~~excluded~~ ineligible 
 35.10  person is included in the assistance unit and the MFIP-S ~~need~~ 
 35.11  transitional standard when the ~~excluded~~ ineligible person is not 
 35.12  included in the assistance unit. 
 35.13     Sec. 48.  Minnesota Statutes 1997 Supplement, section 
 35.14  256J.37, is amended by adding a subdivision to read: 
 35.15     Subd. 1a.  [DEEMED INCOME FROM DISQUALIFIED HOUSEHOLD 
 35.16  MEMBERS.] The income of disqualified household members must be 
 35.17  deemed after allowing the following disregards: 
 35.18     (1) the first 18 percent of the disqualified family 
 35.19  member's gross earned income; 
 35.20     (2) amounts the disqualified member actually paid to 
 35.21  individuals not living in the same household but whom the 
 35.22  disqualified member claims or could claim as dependents for 
 35.23  determining federal personal income tax liability; 
 35.24     (3) all payments made by the disqualified member according 
 35.25  to a court order for the support of children not living in the 
 35.26  assistance unit's household, provided that, if there has been a 
 35.27  change in the financial circumstances of the disqualified 
 35.28  person's legal obligation to pay support since the support order 
 35.29  was entered, the disqualified person has petitioned for a 
 35.30  modification of the support order; and 
 35.31     (4) an amount for the needs of other persons who live in 
 35.32  the household but are not included in the assistance unit and 
 35.33  are or could be claimed by the disqualified person as dependents 
 35.34  for determining federal personal income tax liability.  This 
 35.35  amount is equal to the difference between the MFIP-S need 
 35.36  standard when the ineligible person is included in the 
 36.1   assistance unit and the MFIP-S transitional standard when the 
 36.2   ineligible person is not included in the assistance unit.  An 
 36.3   amount shall not be allowed for the needs of a disqualified 
 36.4   person.  
 36.5      Sec. 49.  Minnesota Statutes 1997 Supplement, section 
 36.6   256J.37, is amended by adding a subdivision to read: 
 36.7      Subd. 1b.  [DEEMED INCOME FROM PARENTS OF MINOR 
 36.8   CAREGIVERS.] In households where minor caregivers live with 
 36.9   parents not on MFIP-S, the income of the parents must be deemed 
 36.10  after allowing the following disregards: 
 36.11     (1) income of the parents equal to 200 percent of the 
 36.12  federal poverty guideline for a family size not including the 
 36.13  minor parent and the minor parent's child in the household 
 36.14  according to section 256J.21, subdivision 2, clause (43); 
 36.15     (2) 18 percent of the parent's gross earned income; 
 36.16     (3) amounts the parents actually paid to individuals not 
 36.17  living in the same household but whom the parents claim or could 
 36.18  claim as dependents for determining federal personal income tax 
 36.19  liability; and 
 36.20     (4) all payments made by parents according to a court order 
 36.21  for the support of children not living in the parent's 
 36.22  household, provided that, if there has been a change in the 
 36.23  financial circumstances of the parent's legal obligation to pay 
 36.24  support since the support order was entered, the parents have 
 36.25  petitioned for a modification of the support order.  
 36.26     Sec. 50.  Minnesota Statutes 1997 Supplement, section 
 36.27  256J.37, subdivision 2, is amended to read: 
 36.28     Subd. 2.  [DEEMED INCOME AND ASSETS OF SPONSOR OF 
 36.29  NONCITIZENS.] ~~All income and assets of a sponsor, or sponsor's~~ 
 36.30  ~~spouse, who executed an affidavit of support for a noncitizen~~ 
 36.31  ~~must be deemed to be unearned income of the noncitizen as~~ 
 36.32  ~~specified in the Personal Responsibility and Work Opportunity~~ 
 36.33  ~~Reconciliation Act of 1996, title IV, Public Law Number 104-193,~~ 
 36.34  ~~sections 421 and 422, and subsequently set out in federal~~ 
 36.35  ~~rules.~~  If a noncitizen applies for or receives MFIP-S, the 
 36.36  county must deem the income and assets of the noncitizen's 
 37.1   sponsor who has signed an affidavit of support for the 
 37.2   noncitizen as specified in sections 421 and 422 of the Personal 
 37.3   Responsibility and Work Opportunity Reconciliation Act of 1996, 
 37.4   title IV, Public Law Number 104-193.  The income of a sponsor 
 37.5   and the sponsor's spouse is considered unearned income of the 
 37.6   noncitizen.  The assets of a sponsor and the sponsor's spouse 
 37.7   are considered available assets of the noncitizen.  
 37.8      Sec. 51.  Minnesota Statutes 1997 Supplement, section 
 37.9   256J.37, subdivision 9, is amended to read: 
 37.10     Subd. 9.  [UNEARNED INCOME.] (a) The county agency must 
 37.11  apply unearned income~~, including housing subsidies as in~~ 
 37.12  ~~paragraph (b),~~ to the transitional standard.  When determining 
 37.13  the amount of unearned income, the county agency must deduct the 
 37.14  costs necessary to secure payments of unearned income.  These 
 37.15  costs include legal fees, medical fees, and mandatory deductions 
 37.16  such as federal and state income taxes. 
 37.17     (b) Effective July 1, 1998, the county agency shall count 
 37.18  $100 of the value of public and assisted rental subsidies 
 37.19  provided through the Department of Housing and Urban Development 
 37.20  (HUD) as unearned income.  The full amount of the subsidy must 
 37.21  be counted as unearned income when the subsidy is less than $100.
 37.22     Sec. 52.  Minnesota Statutes 1997 Supplement, section 
 37.23  256J.38, subdivision 1, is amended to read: 
 37.24     Subdivision 1.  [SCOPE OF OVERPAYMENT.] When a participant 
 37.25  or former participant receives an overpayment due to agency, 
 37.26  client, or ATM error, or due to assistance received while an 
 37.27  appeal is pending and the participant or former participant is 
 37.28  determined ineligible for assistance or for less assistance than 
 37.29  was received, the county agency must recoup or recover the 
 37.30  overpayment ~~under~~ using the ~~conditions of this~~ 
 37.31  ~~section.~~ following methods:  
 37.32     (1) reconstruct each affected budget month and 
 37.33  corresponding payment month; 
 37.34     (2) use the policies and procedures that were in effect for 
 37.35  the payment month; and 
 37.36     (3) do not allow employment disregards in section 256J.21, 
 38.1   subdivision 3 or 4, in the calculation of the overpayment when 
 38.2   the unit has not reported within two calendar months following 
 38.3   the end of the month in which the income was received. 
 38.4      Sec. 53.  Minnesota Statutes 1997 Supplement, section 
 38.5   256J.39, subdivision 2, is amended to read: 
 38.6      Subd. 2.  [PROTECTIVE AND VENDOR PAYMENTS.] Alternatives to 
 38.7   paying assistance directly to a participant may be used when: 
 38.8      (1) a county agency determines that a vendor payment is the 
 38.9   most effective way to resolve an emergency situation pertaining 
 38.10  to basic needs; 
 38.11     (2) a caregiver makes a written request to the county 
 38.12  agency asking that part or all of the assistance payment be 
 38.13  issued by protective or vendor payments for shelter and utility 
 38.14  service only.  The caregiver may withdraw this request in 
 38.15  writing at any time; 
 38.16     (3) ~~a caregiver has exhibited a continuing pattern of~~ 
 38.17  ~~mismanaging funds as determined by the county agency;~~ 
 38.18     ~~(4)~~ the vendor payment is part of a sanction under section 
 38.19  256J.46~~, subdivision 2~~; ~~or~~ 
 38.20     ~~(5)~~ (4) the vendor payment is required under section 
 38.21  ~~256J.24~~ 256J.26 or 256J.43; 
 38.22     (5) a minor parent lives with another adult relative or in 
 38.23  an adult-supervised supportive living arrangement; or 
 38.24     (6) a caregiver has exhibited a continuing pattern of 
 38.25  mismanaging funds as determined by the county agency. 
 38.26     The director of a county agency must approve a proposal for 
 38.27  protective or vendor payment for money mismanagement.  During 
 38.28  the time a protective or vendor payment is being made, the 
 38.29  county agency must provide services designed to alleviate the 
 38.30  causes of the mismanagement. 
 38.31     The continuing need for and method of payment must be 
 38.32  documented and reviewed every 12 months.  The director of a 
 38.33  county agency must approve the continuation of protective or 
 38.34  vendor payments, except when vendor payments are required under 
 38.35  section 256J.26. 
 38.36     Except for vendor payment provisions under section 256J.26, 
 39.1   when it appears that the need for protective or vendor payments 
 39.2   will continue or is likely to continue beyond two years because 
 39.3   the county agency's efforts have not resulted in sufficiently 
 39.4   improved use of assistance on behalf of the minor child, 
 39.5   judicial appointment of a legal guardian or other legal 
 39.6   representative must be sought by the county agency.  
 39.7      Sec. 54.  Minnesota Statutes 1997 Supplement, section 
 39.8   256J.395, is amended to read: 
 39.9      256J.395 [VENDOR PAYMENT OF ~~RENT~~ HOUSING COSTS AND 
 39.10  UTILITIES.] 
 39.11     Subdivision 1.  [VENDOR PAYMENT OF ~~RENT~~ HOUSING COSTS AND 
 39.12  UTILITIES.] (a) Effective July 1, 1997, when a county is 
 39.13  required to provide assistance to a recipient in vendor form for 
 39.14  ~~rent~~ housing costs and utilities under this chapter, or chapter 
 39.15  256, 256D, or 256K, the cost of utilities for a given family may 
 39.16  be assumed to be: 
 39.17     (1) the average of the actual monthly cost of utilities for 
 39.18  that family for the prior 12 months at the family's current 
 39.19  residence, if applicable; 
 39.20     (2) the monthly plan amount, if any, set by the local 
 39.21  utilities for that family at the family's current residence; or 
 39.22     (3) the estimated monthly utility costs for the dwelling in 
 39.23  which the family currently resides. 
 39.24     (b) For purposes of this section, "utility" means any of 
 39.25  the following:  municipal water and sewer service; electric, 
 39.26  gas, or heating fuel service; or wood, if that is the heating 
 39.27  source. 
 39.28     (c) In any instance where a vendor payment for rent is 
 39.29  directed to a landlord not legally entitled to the payment, the 
 39.30  county social services agency shall immediately institute 
 39.31  proceedings to collect the amount of the vendored rent payment, 
 39.32  which shall be considered a debt under section 270A.03, 
 39.33  subdivision 5. 
 39.34     (d) For the purpose of this section, "housing costs" means 
 39.35  the cost of rent, mortgage on a home or mobile trailer home, a 
 39.36  contract for deed, or lot rent on a mobile trailer home. 
 40.1      Subd. 2.  [VENDOR PAYMENT NOTIFICATION.] (a) When a county 
 40.2   agency is required to provide assistance to a participant in 
 40.3   vendor payment form for housing costs or utilities under 
 40.4   subdivision 1, and the participant does not give the agency the 
 40.5   information needed to pay the vendor, the county agency shall 
 40.6   notify the participant of the intent to terminate assistance by 
 40.7   mail at least ten days before the effective date of the adverse 
 40.8   action. 
 40.9      (b) The notice of action shall include a request for 
 40.10  information about: 
 40.11     (1) the amount of the participant's housing costs or 
 40.12  utilities; 
 40.13     (2) the due date of the housing costs or utilities; and 
 40.14     (3) the name and address of the landlord, contract for deed 
 40.15  holder, mortgage company, and utility vendor. 
 40.16     (c) If the participant fails to provide the requested 
 40.17  information by the effective date of the adverse action, the 
 40.18  county must terminate the cash portion of the MFIP-S grant.  If 
 40.19  the applicant or participant verifies they do not have housing 
 40.20  costs or utility obligations, the county shall not terminate 
 40.21  assistance if the assistance unit is otherwise eligible. 
 40.22     Sec. 55.  Minnesota Statutes 1997 Supplement, section 
 40.23  256J.42, is amended to read: 
 40.24     256J.42 [60-MONTH TIME LIMIT.] 
 40.25     Subdivision 1.  [TIME LIMIT.] (a) An assistance unit in 
 40.26  which any adult caregiver has received 60 months of cash 
 40.27  assistance funded in whole or in part by the TANF block grant in 
 40.28  this or any other state or United States territory, MFIP-S, 
 40.29  AFDC, or family general assistance, funded in whole or in part 
 40.30  by state appropriations, is ineligible to receive MFIP-S.  Any 
 40.31  cash assistance funded with TANF dollars in this or any other 
 40.32  state or United States territory, or MFIP-S assistance funded in 
 40.33  whole or in part by state appropriations, that was received by 
 40.34  the unit on or after the date TANF was implemented, including 
 40.35  any assistance received in states of prior residence, counts 
 40.36  toward the 60-month limitation.  The 60-month limit applies to a 
 41.1   minor who is the head of a household or who is married to the 
 41.2   head of a household except under subdivision 5, or who is 
 41.3   married to the head of a household.  The 60-month time period 
 41.4   does not need to be consecutive months for this provision to 
 41.5   apply.  
 41.6      (b) Months before July 1998 in which individuals receive 
 41.7   assistance as part of an MFIP, MFIP-R, or MFIP or MFIP-R 
 41.8   comparison group family under sections 256.031 to 256.0361 or 
 41.9   sections 256.047 to 256.048 are not included in the 60-month 
 41.10  time limit. 
 41.11     ~~Subd. 2.  [ASSISTANCE FROM ANOTHER STATE.] An individual~~ 
 41.12  ~~whose needs have been otherwise provided for in another state,~~ 
 41.13  ~~in whole or in part by the TANF block grant during a month, is~~ 
 41.14  ~~ineligible to receive MFIP-S for the month.~~ 
 41.15     Subd. 3.  [ADULTS LIVING ON AN INDIAN RESERVATION.] In 
 41.16  determining the number of months for which an adult has received 
 41.17  assistance under MFIP-S, the county agency must disregard any 
 41.18  month during which the adult lived on an Indian reservation if~~,~~ 
 41.19  during the month~~:~~  
 41.20     ~~(1) at least 1,000 individuals were living on the~~ 
 41.21  ~~reservation; and~~ 
 41.22     ~~(2)~~ at least 50 percent of the adults living on the 
 41.23  reservation were ~~unemployed~~ not employed. 
 41.24     Subd. 4.  [VICTIMS OF DOMESTIC VIOLENCE.] Any cash 
 41.25  assistance received by an assistance unit in a month when a 
 41.26  caregiver is complying with a safety plan under the MFIP-S 
 41.27  employment and training component does not count toward the 
 41.28  60-month limitation on assistance. 
 41.29     Subd. 5.  [EXEMPTION FOR CERTAIN FAMILIES.] (a) Any cash 
 41.30  assistance received by an assistance unit does not count toward 
 41.31  the 60-month limit on assistance during a month in which 
 41.32  the ~~parental~~ caregiver is in the category in section 256J.56, 
 41.33  clause (1).  The exemption applies for the period of time the 
 41.34  caregiver belongs to one of the categories specified in this 
 41.35  subdivision. 
 41.36     (b) From July 1, 1997, until the date MFIP-S is operative 
 42.1   in the caregiver's county of financial responsibility, any cash 
 42.2   assistance received by a caregiver who is complying with 
 42.3   sections 256.73, subdivision 5a, and 256.736, if applicable, 
 42.4   does not count toward the 60-month limit on assistance.  
 42.5   Thereafter, any cash assistance received by a minor caregiver 
 42.6   who is complying with the requirements of sections 256J.14 and 
 42.7   256J.54, if applicable, does not count towards the 60-month 
 42.8   limit on assistance. 
 42.9      (c) The receipt of diversionary assistance or emergency 
 42.10  assistance does not count toward the 60-month limit. 
 42.11     (d) Any cash assistance received by an 18 or 19 year old 
 42.12  caregiver who is complying with the requirements of section 
 42.13  256J.54 does not count toward the 60-month limit. 
 42.14     Sec. 56.  Minnesota Statutes 1997 Supplement, section 
 42.15  256J.43, is amended to read: 
 42.16     256J.43 [INTERSTATE PAYMENT STANDARDS.] 
 42.17     Subdivision 1.  [PAYMENT.] (a) Effective July 1, 1997, the 
 42.18  amount of assistance paid to an eligible ~~family~~ unit in which 
 42.19  all members have resided in this state for fewer than 12 
 42.20  consecutive calendar months immediately preceding the date of 
 42.21  application shall be the lesser of either the ~~payment~~ interstate 
 42.22  transitional standard that would have been received by 
 42.23  the ~~family~~ assistance unit from the state of immediate prior 
 42.24  residence, or the amount calculated in accordance with AFDC or 
 42.25  MFIP-S standards.  The lesser payment must continue until 
 42.26  the ~~family~~ assistance unit meets the 12-month requirement.  An 
 42.27  assistance unit that has not resided in Minnesota for 12 months 
 42.28  from the date of application is not exempt from the interstate 
 42.29  payment provisions solely because a child is born in Minnesota 
 42.30  to a member of the assistance unit.  Payment must be calculated 
 42.31  by applying this state's budgeting policies, and the unit's net 
 42.32  income must be deducted from the payment standard in the other 
 42.33  state or in this state, whichever is lower.  Payment shall be 
 42.34  made in vendor form for rent and utilities, up to the limit of 
 42.35  the grant amount, and residual amounts, if any, shall be paid 
 42.36  directly to the assistance unit. 
 43.1      (b) During the first 12 months ~~a family~~ an assistance unit 
 43.2   resides in this state, the number of months that a ~~family~~ unit 
 43.3   is eligible to receive AFDC or MFIP-S benefits is limited to the 
 43.4   number of months the ~~family~~ assistance unit would have been 
 43.5   eligible to receive similar benefits in the state of immediate 
 43.6   prior residence. 
 43.7      (c) This policy applies whether or not the ~~family~~ 
 43.8   assistance unit received similar benefits while residing in the 
 43.9   state of previous residence. 
 43.10     (d) When ~~a family~~ an assistance unit moves to this state 
 43.11  from another state where the ~~family~~ assistance unit has 
 43.12  exhausted that state's time limit for receiving benefits under 
 43.13  that state's TANF program, the ~~family~~ unit will not be eligible 
 43.14  to receive any AFDC or MFIP-S benefits in this state for 12 
 43.15  months from the date the ~~family~~ assistance unit moves here. 
 43.16     (e) For the purposes of this section, "state of immediate 
 43.17  prior residence" means: 
 43.18     (1) the state in which the applicant declares the applicant 
 43.19  spent the most time in the 30 days prior to moving to this 
 43.20  state; or 
 43.21     (2) the state in which an applicant who is a migrant worker 
 43.22  maintains a home. 
 43.23     (f) The commissioner shall annually verify and update all 
 43.24  other states' payment standards as they are to be in effect in 
 43.25  July of each year. 
 43.26     (g) Applicants must provide verification of their state of 
 43.27  immediate prior residence, in the form of tax statements, a 
 43.28  driver's license, automobile registration, rent receipts, or 
 43.29  other forms of verification approved by the commissioner. 
 43.30     (h) Migrant workers, as defined in section 256J.08, and 
 43.31  their immediate families are exempt from this section, provided 
 43.32  the migrant worker provides verification that the migrant family 
 43.33  worked in this state within the last 12 months and earned at 
 43.34  least $1,000 in gross wages during the time the migrant worker 
 43.35  worked in this state. 
 43.36     Subd. 2.  [TEMPORARY ABSENCE FROM MINNESOTA.] (a) An 
 44.1   assistance unit that has met the requirements of section 
 44.2   256J.12, and who is absent from Minnesota for fewer than 30 
 44.3   consecutive days does not affect the number of months the unit 
 44.4   receives benefits under the interstate payment standards in this 
 44.5   section. 
 44.6      (b) An assistance unit absent from Minnesota for more than 
 44.7   30 consecutive days, but fewer than 90 consecutive days, does 
 44.8   not affect the number of months the unit receives benefits under 
 44.9   the interstate payment standards of this section, provided the 
 44.10  assistance unit continues to maintain a residence in Minnesota 
 44.11  during the period of absence. 
 44.12     Subd. 3.  [EXCEPTIONS TO THE INTERSTATE PAYMENT 
 44.13  POLICY.] Applicants who lived in another state in the 12 months 
 44.14  previous to application for assistance shall be considered to 
 44.15  meet the interstate payment policy for the months that a member 
 44.16  of the unit: 
 44.17     (1) joined the United States armed services, returned to 
 44.18  Minnesota within 30 days of leaving the armed forces, and 
 44.19  intends to remain in Minnesota; 
 44.20     (2) left to attend school in another state, paid 
 44.21  nonresident tuition or Minnesota tuition rates under a 
 44.22  reciprocity agreement, and returned to Minnesota within 30 days 
 44.23  of graduation with the intent to remain in Minnesota; or 
 44.24     (3) meets the following criteria: 
 44.25     (i) a minor child or a minor caregiver moves to the 
 44.26  residence of a relative caregiver from another state; 
 44.27     (ii) the minor child or the minor caregiver applies for and 
 44.28  receives family cash assistance; 
 44.29     (iii) the relative caregiver chooses not to be part of the 
 44.30  MFIP-S assistance unit; and 
 44.31     (iv) the relative caregiver has resided in Minnesota for at 
 44.32  least 12 months from the date the assistance unit applies for 
 44.33  cash assistance. 
 44.34     Subd. 4.  [INELIGIBLE MANDATORY UNIT MEMBERS.] Ineligible 
 44.35  mandatory unit members who have resided in Minnesota for 12 
 44.36  months immediately before the date of application confer state 
 45.1   residency on other assistance unit members.  
 45.2      Sec. 57.  Minnesota Statutes 1997 Supplement, section 
 45.3   256J.45, subdivision 1, is amended to read: 
 45.4      Subdivision 1.  [COUNTY AGENCY TO PROVIDE ORIENTATION.] A 
 45.5   county agency must provide each MFIP-S caregiver with a 
 45.6   face-to-face orientation.  The caregiver must attend the 
 45.7   orientation.  The county agency must inform the caregiver that 
 45.8   failure to attend the orientation is considered ~~a first~~ an 
 45.9   occurrence of noncompliance with program requirements, and will 
 45.10  result in the imposition of a sanction under section 
 45.11  256J.46.  If the client complies with the orientation 
 45.12  requirement prior to the effective date of the sanction, the 
 45.13  orientation sanction will be lifted.  
 45.14     Sec. 58.  Minnesota Statutes 1997 Supplement, section 
 45.15  256J.45, is amended by adding a subdivision to read: 
 45.16     Subd. 3.  [GOOD CAUSE FOR NOT ATTENDING ORIENTATION.] (a) 
 45.17  The county agency shall not impose the sanction under section 
 45.18  256J.46 if it determines that the participant has good cause for 
 45.19  failing to attend orientation.  Good cause exists when: 
 45.20     (1) appropriate child care is not available; 
 45.21     (2) the participant is ill or injured; 
 45.22     (3) a family member is ill and needs care by the 
 45.23  participant that prevents the participant from attending 
 45.24  orientation; 
 45.25     (4) the caregiver is unable to secure necessary 
 45.26  transportation; 
 45.27     (5) the caregiver is in an emergency situation that 
 45.28  prevents orientation attendance; 
 45.29     (6) the orientation conflicts with the caregiver's work, 
 45.30  training, or school schedule; or 
 45.31     (7) the caregiver documents other verifiable impediments to 
 45.32  orientation attendance beyond the caregiver's control.  
 45.33     (b) Counties must work with clients to provide child care 
 45.34  and transportation necessary to ensure a caregiver has every 
 45.35  opportunity to attend orientation. 
 45.36     Sec. 59.  Minnesota Statutes 1997 Supplement, section 
 46.1   256J.46, subdivision 1, is amended to read: 
 46.2      Subdivision 1.  [SANCTIONS FOR PARTICIPANTS NOT COMPLYING 
 46.3   WITH PROGRAM REQUIREMENTS.] (a) The following participants are 
 46.4   subject to a sanction under this subdivision: 
 46.5      (1) a participant who fails without good cause to comply 
 46.6   with the requirements of this chapter~~, and~~; 
 46.7      (2) a participant who is not subject to a sanction under 
 46.8   subdivision 2~~, shall be subject to a sanction as provided in~~ 
 46.9   ~~this subdivision~~; and 
 46.10     (3) a participant who has not complied with the orientation 
 46.11  requirement before the effective date of the sanction.  
 46.12     A sanction under this subdivision becomes effective ten 
 46.13  days after the required notice is given.  For purposes of this 
 46.14  subdivision, each month that a participant fails to comply with 
 46.15  a requirement of this chapter shall be considered a separate 
 46.16  occurrence of noncompliance.  A participant who has had one or 
 46.17  more sanctions imposed must remain in compliance with the 
 46.18  provisions of this chapter for six months in order for a 
 46.19  subsequent occurrence of noncompliance to be considered a first 
 46.20  occurrence.  
 46.21     (b) Sanctions for noncompliance shall be imposed as follows:
 46.22     (1) For the first occurrence of noncompliance by a 
 46.23  participant in a single-parent household or by one participant 
 46.24  in a two-parent household, the ~~participant's~~ family's grant 
 46.25  shall be reduced by ten percent of ~~the applicable~~ MFIP-S 
 46.26  transitional standard or the interstate transitional standard 
 46.27  for an assistance unit of the same size, whichever is 
 46.28  applicable, with the residual paid to the participant.  The 
 46.29  reduction in the grant amount must be in effect for a minimum of 
 46.30  one month and shall be removed in the month following the month 
 46.31  that the participant returns to compliance or in the month 
 46.32  following the minimum one-month sanction, whichever is later. 
 46.33     (2) For a second or subsequent occurrence of noncompliance, 
 46.34  or when both participants in a two-parent household are out of 
 46.35  compliance at the same time, the ~~participant's rent~~ family's 
 46.36  shelter costs shall be vendor paid up to the amount of the cash 
 47.1   portion of the MFIP-S grant for which the participant's 
 47.2   assistance unit is eligible.  At county option, 
 47.3   the ~~participant's~~ family's utilities may also be vendor paid up 
 47.4   to the amount of the cash portion of the MFIP-S grant remaining 
 47.5   after vendor payment of the ~~participant's~~ family's rent or 
 47.6   shelter costs.  ~~The vendor payment of rent and, if in effect,~~ 
 47.7   ~~utilities, must be in effect for six months from the date that a~~ 
 47.8   ~~sanction is imposed under this clause.~~  The residual amount of 
 47.9   the grant after vendor payment, if any, must be reduced by an 
 47.10  amount equal to 30 percent of the ~~applicable~~ MFIP-S transitional 
 47.11  standard, or the interstate transitional standard for an 
 47.12  assistance unit of the same size, whichever is applicable, 
 47.13  before the residual is paid to the ~~participant~~ family.  For 
 47.14  purposes of this section, shelter costs include rent, 
 47.15  manufactured home lot rental costs, or monthly principal, 
 47.16  interest, insurance premiums, and property taxes due for 
 47.17  mortgages or contracts for deed.  The reduction in the grant 
 47.18  amount must be in effect for a minimum of one month and shall be 
 47.19  removed in the month following the month that ~~the~~ a participant 
 47.20  in a one-parent household returns to compliance or in the month 
 47.21  following the minimum one-month sanction, whichever is later.  
 47.22  In a two-parent household, the grant reduction shall be removed 
 47.23  in the month following the month both participants return to 
 47.24  compliance or in the month following the minimum one-month 
 47.25  sanction, whichever is later.  The vendor payment of 
 47.26  ~~rent~~ shelter costs and, if applicable, utilities shall be 
 47.27  removed six months after the month in which the 
 47.28  participant ~~returns~~ or participants return to compliance. 
 47.29     (c) No later than during the second month that a sanction 
 47.30  under paragraph (b), clause (2), is in effect due to 
 47.31  noncompliance with employment services, the participant's case 
 47.32  file must be reviewed to determine if: 
 47.33     (i) the continued noncompliance can be explained and 
 47.34  mitigated by providing a needed preemployment activity, as 
 47.35  defined in section 256J.49, subdivision 13, clause (16); 
 47.36     (ii) the participant qualifies for a good cause exception 
 48.1   under section 256J.57; or 
 48.2      (iii) the participant qualifies for an exemption under 
 48.3   section 256J.56. 
 48.4      If the lack of an identified activity can explain the 
 48.5   noncompliance, the county must work with the participant to 
 48.6   provide the identified activity, and the county must restore the 
 48.7   participant's grant amount to the full amount for which the 
 48.8   assistance unit is eligible.  The grant must be restored 
 48.9   retroactively to the first day of the month in which the 
 48.10  participant was found to lack preemployment activities or to 
 48.11  qualify for an exemption or good cause exception. 
 48.12     If the participant is found to qualify for a good cause 
 48.13  exception or an exemption, the county must restore the 
 48.14  participant's grant to the full amount for which the assistance 
 48.15  unit is eligible.  ~~If the participant's grant is restored under~~ 
 48.16  ~~this paragraph, the vendor payment of rent and if applicable,~~ 
 48.17  ~~utilities, shall be removed six months after the month in which~~ 
 48.18  ~~the sanction was imposed and the county must consider a~~ 
 48.19  ~~subsequent occurrence of noncompliance to be a first occurrence.~~ 
 48.20     Sec. 60.  Minnesota Statutes 1997 Supplement, section 
 48.21  256J.46, subdivision 2, is amended to read: 
 48.22     Subd. 2.  [SANCTIONS FOR REFUSAL TO COOPERATE WITH SUPPORT 
 48.23  REQUIREMENTS.] The grant of an MFIP-S caregiver who refuses to 
 48.24  cooperate, as determined by the child support enforcement 
 48.25  agency, with support requirements under section 256.741, if 
 48.26  enacted, shall be subject to sanction as specified in this 
 48.27  subdivision.  The assistance unit's grant must be reduced by 25 
 48.28  percent of the applicable transitional standard.  The residual 
 48.29  amount of the grant, if any, must be paid to the caregiver.  A 
 48.30  sanction under this subdivision becomes effective ten days after 
 48.31  the required notice is given.  The sanction must be in effect 
 48.32  for a minimum of one month and shall be removed only when the 
 48.33  caregiver cooperates with the support requirements or in the 
 48.34  month following the minimum one-month sanction, whichever is 
 48.35  later.  Each month that an MFIP-S caregiver fails to comply with 
 48.36  the requirements of section 256.741 must be considered a 
 49.1   separate occurrence of noncompliance.  An MFIP-S caregiver who 
 49.2   has had one or more sanctions imposed must remain in compliance 
 49.3   with the requirements of section 256.741 for six months in order 
 49.4   for a subsequent sanction to be considered a first occurrence. 
 49.5      Sec. 61.  Minnesota Statutes 1997 Supplement, section 
 49.6   256J.47, subdivision 4, is amended to read: 
 49.7      Subd. 4.  [INELIGIBILITY FOR MFIP-S; EMERGENCY ASSISTANCE; 
 49.8   AND EMERGENCY GENERAL ASSISTANCE.] Upon receipt of diversionary 
 49.9   assistance, the family is ineligible for MFIP-S, emergency 
 49.10  assistance, and emergency general assistance for a period of 
 49.11  time.  To determine the period of ineligibility, the county 
 49.12  shall use the following formula:  regardless of household 
 49.13  changes, the county agency must calculate the number of days of 
 49.14  ineligibility by dividing the diversionary assistance issued by 
 49.15  the transitional standard a family of the same size and 
 49.16  composition would have received under MFIP-S, or if applicable 
 49.17  the interstate transitional standard, multiplied by 30, 
 49.18  truncating the result.  The ineligibility period begins the date 
 49.19  the diversionary assistance is issued. 
 49.20     Sec. 62.  Minnesota Statutes 1997 Supplement, section 
 49.21  256J.48, subdivision 2, is amended to read: 
 49.22     Subd. 2.  [ELIGIBILITY.] Notwithstanding other eligibility 
 49.23  provisions of this chapter, any family without resources 
 49.24  immediately available to meet emergency needs identified in 
 49.25  subdivision 3 shall be eligible for an emergency grant under the 
 49.26  following conditions: 
 49.27     (1) a family member has resided in this state for at least 
 49.28  30 days; 
 49.29     (2) the family is without resources immediately available 
 49.30  to meet emergency needs; 
 49.31     (3) assistance is necessary to avoid destitution or provide 
 49.32  emergency shelter arrangements; ~~and~~ 
 49.33     (4) the family's destitution or need for shelter or 
 49.34  utilities did not arise because the child or relative caregiver 
 49.35  refused without good cause under section 256J.57 to accept 
 49.36  employment or training for employment in this state or another 
 50.1   state; and 
 50.2      (5) at least one child or pregnant woman in the emergency 
 50.3   assistance unit meets MFIP-S citizenship requirements in section 
 50.4   256J.11. 
 50.5      Sec. 63.  Minnesota Statutes 1997 Supplement, section 
 50.6   256J.48, subdivision 3, is amended to read: 
 50.7      Subd. 3.  [EMERGENCY NEEDS.] Emergency needs are limited to 
 50.8   the following: 
 50.9      (a)  [RENT.] A county agency may deny assistance to prevent 
 50.10  eviction from rented or leased shelter of an otherwise eligible 
 50.11  applicant when the county agency determines that an applicant's 
 50.12  anticipated income will not cover continued payment for shelter, 
 50.13  subject to conditions in clauses (1) to (3): 
 50.14     (1) a county agency must not deny assistance when an 
 50.15  applicant can document that the applicant is unable to locate 
 50.16  habitable shelter, unless the county agency can document that 
 50.17  one or more habitable shelters are available in the community 
 50.18  that will result in at least a 20 percent reduction in monthly 
 50.19  expense for shelter and that this shelter will be cost-effective 
 50.20  for the applicant; 
 50.21     (2) when no alternative shelter can be identified by either 
 50.22  the applicant or the county agency, the county agency shall not 
 50.23  deny assistance because anticipated income will not cover rental 
 50.24  obligation; and 
 50.25     (3) when cost-effective alternative shelter is identified, 
 50.26  the county agency shall issue assistance for moving expenses as 
 50.27  provided in paragraph ~~(d)~~ (e). 
 50.28     (b)  [DEFINITIONS.] For purposes of paragraph (a), the 
 50.29  following definitions apply (1) "metropolitan statistical area" 
 50.30  is as defined by the United States Census Bureau; (2) 
 50.31  "alternative shelter" includes any shelter that is located 
 50.32  within the metropolitan statistical area containing the county 
 50.33  and for which the applicant is eligible, provided the applicant 
 50.34  does not have to travel more than 20 miles to reach the shelter 
 50.35  and has access to transportation to the shelter.  Clause (2) 
 50.36  does not apply to counties in the Minneapolis-St. Paul 
 51.1   metropolitan statistical area. 
 51.2      (c)  [MORTGAGE AND CONTRACT FOR DEED ARREARAGES.] A county 
 51.3   agency shall issue assistance for mortgage or contract for deed 
 51.4   arrearages on behalf of an otherwise eligible applicant 
 51.5   according to clauses (1) to (4): 
 51.6      (1) assistance for arrearages must be issued only when a 
 51.7   home is owned, occupied, and maintained by the applicant; 
 51.8      (2) assistance for arrearages must be issued only when no 
 51.9   subsequent foreclosure action is expected within the 12 months 
 51.10  following the issuance; 
 51.11     (3) assistance for arrearages must be issued only when an 
 51.12  applicant has been refused refinancing through a bank or other 
 51.13  lending institution and the amount payable, when combined with 
 51.14  any payments made by the applicant, will be accepted by the 
 51.15  creditor as full payment of the arrearage; 
 51.16     (4) costs paid by a family which are counted toward the 
 51.17  payment requirements in this clause are:  principle and interest 
 51.18  payments on mortgages or contracts for deed, balloon payments, 
 51.19  homeowner's insurance payments, manufactured home lot rental 
 51.20  payments, and tax or special assessment payments related to the 
 51.21  homestead.  Costs which are not counted include closing costs 
 51.22  related to the sale or purchase of real property. 
 51.23     To be eligible for assistance for costs specified in clause 
 51.24  (4) which are outstanding at the time of foreclosure, an 
 51.25  applicant must have paid at least 40 percent of the family's 
 51.26  gross income toward these costs in the month of application and 
 51.27  the 11-month period immediately preceding the month of 
 51.28  application. 
 51.29     When an applicant is eligible under clause (4), a county 
 51.30  agency shall issue assistance up to a maximum of four times the 
 51.31  MFIP-S transitional standard for a comparable assistance unit. 
 51.32     (d)  [DAMAGE OR UTILITY DEPOSITS.] A county agency shall 
 51.33  issue assistance for damage or utility deposits when necessary 
 51.34  to alleviate the emergency.  The county may require that 
 51.35  assistance paid in the form of a damage deposit ~~or a utility~~ 
 51.36  ~~deposit~~, less any amount retained by the landlord to remedy a 
 52.1   tenant's default in payment of rent or other funds due to the 
 52.2   landlord under a rental agreement, or to restore the premises to 
 52.3   the condition at the commencement of the tenancy, ordinary wear 
 52.4   and tear excepted, be returned to the county when the individual 
 52.5   vacates the premises or be paid to the recipient's new landlord 
 52.6   as a vendor payment.  The county may require that assistance 
 52.7   paid in the form of a utility deposit less any amount retained 
 52.8   to satisfy outstanding utility costs be returned to the county 
 52.9   when the person vacates the premises, or be paid for the 
 52.10  person's new housing unit as a vendor payment.  The vendor 
 52.11  payment of returned funds shall not be considered a new use of 
 52.12  emergency assistance. 
 52.13     (e)  [MOVING EXPENSES.] A county agency shall issue 
 52.14  assistance for expenses incurred when a family must move to a 
 52.15  different shelter according to clauses (1) to (4): 
 52.16     (1) moving expenses include the cost to transport personal 
 52.17  property belonging to a family, the cost for utility connection, 
 52.18  and the cost for securing different shelter; 
 52.19     (2) moving expenses must be paid only when the county 
 52.20  agency determines that a move is cost-effective; 
 52.21     (3) moving expenses must be paid at the request of an 
 52.22  applicant, but only when destitution or threatened destitution 
 52.23  exists; and 
 52.24     (4) moving expenses must be paid when a county agency 
 52.25  denies assistance to prevent an eviction because the county 
 52.26  agency has determined that an applicant's anticipated income 
 52.27  will not cover continued shelter obligation in paragraph (a). 
 52.28     (f)  [HOME REPAIRS.] A county agency shall pay for repairs 
 52.29  to the roof, foundation, wiring, heating system, chimney, and 
 52.30  water and sewer system of a home that is owned and lived in by 
 52.31  an applicant. 
 52.32     The applicant shall document, and the county agency shall 
 52.33  verify the need for and method of repair. 
 52.34     The payment must be cost-effective in relation to the 
 52.35  overall condition of the home and in relation to the cost and 
 52.36  availability of alternative housing. 
 53.1      (g)  [UTILITY COSTS.] Assistance for utility costs must be 
 53.2   made when an otherwise eligible family has had a termination or 
 53.3   is threatened with a termination of municipal water and sewer 
 53.4   service, electric, gas or heating fuel service, or lacks wood 
 53.5   when that is the heating source, subject to the conditions in 
 53.6   clauses (1) and (2): 
 53.7      (1) a county agency must not issue assistance unless the 
 53.8   county agency receives confirmation from the utility provider 
 53.9   that assistance combined with payment by the applicant will 
 53.10  continue or restore the utility; and 
 53.11     (2) a county agency shall not issue assistance for utility 
 53.12  costs unless a family paid at least eight percent of the 
 53.13  family's gross income toward utility costs due during the 
 53.14  preceding 12 months. 
 53.15     Clauses (1) and (2) must not be construed to prevent the 
 53.16  issuance of assistance when a county agency must take immediate 
 53.17  and temporary action necessary to protect the life or health of 
 53.18  a child. 
 53.19     (h)  [SPECIAL DIETS.] On January 1, 1998, a county shall 
 53.20  pay for special diets or dietary items for MFIP-S participants.  
 53.21  Persons receiving emergency assistance funds for special diets 
 53.22  or dietary items are also eligible to receive emergency 
 53.23  assistance for shelter and utility emergencies, if otherwise 
 53.24  eligible.  The need for special diets or dietary items must be 
 53.25  prescribed by a licensed physician.  Costs for special diets 
 53.26  shall be determined as percentages of the allotment for a 
 53.27  one-person household under the Thrifty Food Plan as defined by 
 53.28  the United States Department of Agriculture.  The types of diets 
 53.29  and the percentages of the Thrifty Food Plan that are covered 
 53.30  are as follows: 
 53.31     (1) high protein diet, at least 80 grams daily, 25 percent 
 53.32  of Thrifty Food Plan; 
 53.33     (2) controlled protein diet, 40 to 60 grams and requires 
 53.34  special products, 100 percent of Thrifty Food Plan; 
 53.35     (3) controlled protein diet, less than 40 grams and 
 53.36  requires special products, 125 percent of Thrifty Food Plan; 
 54.1      (4) low cholesterol diet, 25 percent of Thrifty Food Plan; 
 54.2      (5) high residue diet, 20 percent of Thrifty Food Plan; 
 54.3      (6) pregnancy and lactation diet, 35 percent of Thrifty 
 54.4   Food Plan; 
 54.5      (7) gluten-free diet, 25 percent of Thrifty Food Plan; 
 54.6      (8) lactose-free diet, 25 percent of Thrifty Food Plan; 
 54.7      (9) antidumping diet, 15 percent of Thrifty Food Plan; 
 54.8      (10) hypoglycemic diet, 15 percent of Thrifty Food Plan; or 
 54.9      (11) ketogenic diet, 25 percent of Thrifty Food Plan. 
 54.10     Sec. 64.  Minnesota Statutes 1997 Supplement, section 
 54.11  256J.50, subdivision 5, is amended to read: 
 54.12     Subd. 5.  [PARTICIPATION REQUIREMENTS FOR SINGLE-PARENT AND 
 54.13  TWO-PARENT CASES.] (a) A county must establish a uniform 
 54.14  schedule for requiring participation by single parents.  
 54.15  Mandatory participation must be required within six months of 
 54.16  eligibility for cash assistance.  For two-parent cases, 
 54.17  participation is required concurrent with the receipt of MFIP-S 
 54.18  cash assistance. 
 54.19     (b) Beginning January 1, 1998, with the exception of 
 54.20  caregivers required to attend high school under the provisions 
 54.21  of section 256J.54, subdivision 5, MFIP caregivers, upon 
 54.22  completion of the secondary assessment, must develop an 
 54.23  employment plan and participate in work activities. 
 54.24     (c) In single-parent families with no children under six 
 54.25  years of age, the job counselor and the caregiver must develop 
 54.26  an employment plan that includes 20 to 35 hours per week of work 
 54.27  activities for the period January 1, 1998, to September 30, 
 54.28  1998; 25 to 35 hours of work activities per week in federal 
 54.29  fiscal year 1999; and 30 to 35 hours per week of work activities 
 54.30  in federal fiscal year 2000 and thereafter. 
 54.31     (d) In single-parent families with a child under six years 
 54.32  of age, the job counselor and the caregiver must develop an 
 54.33  employment plan that includes 20 to 35 hours per week of work 
 54.34  activities. 
 54.35     (e) In two-parent families, the job counselor and the 
 54.36  caregivers must develop employment plans that include at least 
 55.1   35 hours per week of work activities for the first parent and 20 
 55.2   hours per week of work activities for the second parent. 
 55.3      Sec. 65.  Minnesota Statutes 1997 Supplement, section 
 55.4   256J.54, subdivision 2, is amended to read: 
 55.5      Subd. 2.  [RESPONSIBILITY FOR ASSESSMENT AND EMPLOYMENT 
 55.6   PLAN.] For caregivers who are under age 18 without a high school 
 55.7   diploma or its equivalent, the assessment under subdivision 1 
 55.8   and the employment plan under subdivision 3 must be completed by 
 55.9   the social services agency under section 257.33.  For caregivers 
 55.10  who are age 18 or 19 without a high school diploma or its 
 55.11  equivalent, the assessment under subdivision 1 and the 
 55.12  employment plan under subdivision 3 must be completed by the job 
 55.13  counselor.  The social services agency or the job counselor 
 55.14  shall consult with representatives of educational agencies that 
 55.15  are required to assist in developing educational plans under 
 55.16  section 126.235. 
 55.17     Sec. 66.  Minnesota Statutes 1997 Supplement, section 
 55.18  256J.54, subdivision 3, is amended to read: 
 55.19     Subd. 3.  [EDUCATIONAL OPTION DEVELOPED.] If the job 
 55.20  counselor or county social services agency identifies an 
 55.21  appropriate educational option for a caregiver under the age of 
 55.22  20 without a high school diploma or its equivalent, it must 
 55.23  develop an employment plan which reflects the identified 
 55.24  option.  The plan must specify that participation in an 
 55.25  educational activity is required, what school or educational 
 55.26  program is most appropriate, the services that will be provided, 
 55.27  the activities the caregiver will take part in, including child 
 55.28  care and supportive services, the consequences to the caregiver 
 55.29  for failing to participate or comply with the specified 
 55.30  requirements, and the right to appeal any adverse action.  The 
 55.31  employment plan must, to the extent possible, reflect the 
 55.32  preferences of the caregiver. 
 55.33     Sec. 67.  Minnesota Statutes 1997 Supplement, section 
 55.34  256J.54, subdivision 4, is amended to read: 
 55.35     Subd. 4.  [NO APPROPRIATE EDUCATIONAL OPTION.] If the job 
 55.36  counselor determines that there is no appropriate educational 
 56.1   option for a caregiver who is age 18 or 19 without a high school 
 56.2   diploma or its equivalent, the job counselor must develop an 
 56.3   employment plan, as defined in section 256J.49, subdivision 5, 
 56.4   for the caregiver.  If the county social services agency 
 56.5   determines that school attendance is not appropriate for a 
 56.6   caregiver under age 18 without a high school diploma or its 
 56.7   equivalent, the county agency shall refer the caregiver to 
 56.8   social services for services as provided in section 257.33. 
 56.9      Sec. 68.  Minnesota Statutes 1997 Supplement, section 
 56.10  256J.56, is amended to read: 
 56.11     256J.56 [EMPLOYMENT AND TRAINING SERVICES COMPONENT; 
 56.12  EXEMPTIONS.] 
 56.13     An MFIP-S caregiver is exempt from the requirements of 
 56.14  sections 256J.52 to 256J.55 if the caregiver belongs to any of 
 56.15  the following groups: 
 56.16     (1) individuals who are age 60 or older; 
 56.17     (2) individuals who are suffering from a professionally 
 56.18  certified permanent or temporary illness, injury, or incapacity 
 56.19  which is expected to continue for more than 30 days and which 
 56.20  prevents the person from obtaining or retaining employment.  
 56.21  Persons in this category with a temporary illness, injury, or 
 56.22  incapacity must be reevaluated at least quarterly; 
 56.23     (3) caregivers whose presence in the home is required 
 56.24  because of the professionally certified illness or incapacity of 
 56.25  another member in the assistance unit, a relative in the 
 56.26  household, or a foster child in the household; 
 56.27     (4) women who are pregnant, if the pregnancy has resulted 
 56.28  in a professionally certified incapacity that prevents the woman 
 56.29  from obtaining or retaining employment; 
 56.30     (5) caregivers of a child under the age of one year who 
 56.31  personally provide full-time care for the child.  This exemption 
 56.32  may be used for only 12 months in a lifetime.  In two-parent 
 56.33  households, only one parent or other relative may qualify for 
 56.34  this exemption; 
 56.35     (6) individuals in single-parent families employed at least 
 56.36  ~~40 hours per week or at least 30 hours per week and engaged in~~ 
 57.1   ~~job search for at least an additional ten~~ 35 hours per week; 
 57.2      (7) individuals experiencing a personal or family crisis 
 57.3   that makes them incapable of participating in the program, as 
 57.4   determined by the county agency.  If the participant does not 
 57.5   agree with the county agency's determination, the participant 
 57.6   may seek professional certification, as defined in section 
 57.7   256J.08, that the participant is incapable of participating in 
 57.8   the program. 
 57.9      Persons in this exemption category must be reevaluated 
 57.10  every 60 days; or 
 57.11     (8) second parents in two-parent families, provided the 
 57.12  second parent is employed for 20 or more hours per week. 
 57.13     A caregiver who is exempt under clause (5) must enroll in 
 57.14  and attend an early childhood and family education class, a 
 57.15  parenting class, or some similar activity, if available, during 
 57.16  the period of time the caregiver is exempt under this section.  
 57.17  Notwithstanding section 256J.46, failure to attend the required 
 57.18  activity shall not result in the imposition of a sanction. 
 57.19     Sec. 69.  Minnesota Statutes 1997 Supplement, section 
 57.20  256J.57, subdivision 1, is amended to read: 
 57.21     Subdivision 1.  [GOOD CAUSE FOR FAILURE TO COMPLY.] The 
 57.22  county agency shall not impose the sanction under section 
 57.23  256J.46 if it determines that the participant has good cause for 
 57.24  failing to comply with the requirements of section 256J.45 or 
 57.25  sections 256J.52 to 256J.55.  Good cause exists when: 
 57.26     (1) appropriate child care is not available; 
 57.27     (2) the job does not meet the definition of suitable 
 57.28  employment; 
 57.29     (3) the participant is ill or injured; 
 57.30     (4) a ~~family~~ member of the assistance unit, a relative in 
 57.31  the household, or a foster child in the household is ill and 
 57.32  needs care by the participant that prevents the participant from 
 57.33  complying with the job search support plan or employment plan; 
 57.34     (5) the parental caregiver is unable to secure necessary 
 57.35  transportation; 
 57.36     (6) the parental caregiver is in an emergency situation 
 58.1   that prevents compliance with the job search support plan or 
 58.2   employment plan; 
 58.3      (7) the schedule of compliance with the job search support 
 58.4   plan or employment plan conflicts with judicial proceedings; 
 58.5      (8) the parental caregiver is already participating in 
 58.6   acceptable work activities; 
 58.7      (9) the employment plan requires an educational program for 
 58.8   a caregiver under age 20, but the educational program is not 
 58.9   available; 
 58.10     (10) activities identified in the job search support plan 
 58.11  or employment plan are not available; 
 58.12     (11) the parental caregiver is willing to accept suitable 
 58.13  employment, but suitable employment is not available; or 
 58.14     (12) the parental caregiver documents other verifiable 
 58.15  impediments to compliance with the job search support plan or 
 58.16  employment plan beyond the parental caregiver's control. 
 58.17     Sec. 70.  Minnesota Statutes 1997 Supplement, section 
 58.18  256J.74, subdivision 2, is amended to read: 
 58.19     Subd. 2.  [CONCURRENT ELIGIBILITY, LIMITATIONS.] A county 
 58.20  agency must not count an applicant or participant as a member of 
 58.21  more than one assistance unit in a given payment month, except 
 58.22  as provided in clauses (1) and (2). 
 58.23     (1) A participant who is a member of an assistance unit in 
 58.24  this state is eligible to be included in a second assistance 
 58.25  unit ~~in~~ the first full month ~~that~~ after the month the 
 58.26  participant ~~leaves the first assistance unit and lives with~~ 
 58.27  ~~a~~ joins the second ~~assistance~~ unit. 
 58.28     (2) An applicant whose needs are met through foster care 
 58.29  that is reimbursed under title IV-E of the Social Security Act 
 58.30  for the first part of an application month is eligible to 
 58.31  receive assistance for the remaining part of the month in which 
 58.32  the applicant returns home.  Title IV-E payments and adoption 
 58.33  assistance payments must be considered prorated payments rather 
 58.34  than a duplication of MFIP-S need. 
 58.35     Sec. 71.  [256J.77] [AGING OF CASH BENEFITS.] 
 58.36     Cash benefits under chapters 256J, 256K, and 256D by 
 59.1   warrants or electronic benefit transfer that have not been 
 59.2   accessed within 90 days of issuance, shall be canceled.  Cash 
 59.3   benefits may be replaced after they are canceled, for up to one 
 59.4   year after the date of issuance, if failure to do so would place 
 59.5   the client or family at risk.  
 59.6      Sec. 72.  Laws 1997, chapter 85, article 1, section 61, is 
 59.7   amended to read:  
 59.8      Sec. 61.  [NOTICE AND REFERRAL PROCEDURES FOR DOMESTIC 
 59.9   VIOLENCE VICTIMS.] 
 59.10     The commissioner of human services shall develop procedures 
 59.11  for the county agencies and their contractors to identify 
 59.12  victims of domestic violence.  The procedures must provide, at a 
 59.13  minimum, universal notification to all applicants and recipients 
 59.14  of MFIP-S that: 
 59.15     (1) referrals to counseling and supportive services are 
 59.16  available for victims of domestic violence; 
 59.17     (2) nonpermanent resident battered individuals married to 
 59.18  U.S. citizens or permanent residents may be eligible to petition 
 59.19  for permanent residency under the Violence Against Women Act, 
 59.20  and that referrals to appropriate legal services are available; 
 59.21  ~~and~~ 
 59.22     (3) victims of domestic violence are exempt from the 
 59.23  60-month limit on assistance while the individual is complying 
 59.24  with an approved safety plan, as defined in section 256J.49, 
 59.25  subdivision 11; and 
 59.26     (4) victims of domestic violence may choose to be exempt 
 59.27  from work requirements while the individual is complying with an 
 59.28  approved safety plan, as defined in section 256J.49, subdivision 
 59.29  11. 
 59.30     Notification must be in writing and orally at the time of 
 59.31  application and recertification, when the individual is referred 
 59.32  to the title IV-D child support agency, and at the beginning of 
 59.33  any job training or work placement assistance program. 
 59.34     Sec. 73.  [REPEALER.] 
 59.35     (a) Minnesota Statutes 1997 Supplement, section 256J.28, 
 59.36  subdivision 4, is repealed effective January 1, 1998.  
 60.1      (b) Minnesota Statutes 1997 Supplement, section 256J.25, is 
 60.2   repealed. 
 60.3      (c) Minnesota Statutes 1997 Supplement, sections 256.031; 
 60.4   256.032; 256.033; 256.034; 256.035; 256.036; 256.0361; 256.047; 
 60.5   256.0475; 256.048; 256.049; and 256J.32, subdivision 5, are 
 60.6   repealed effective July 1, 1998.  Minnesota Statutes 1997 
 60.7   Supplement, section 256J.34, subdivision 5, is repealed 
 60.8   effective January 1, 1999. 
 60.9                              ARTICLE 2
 60.10                             WORK FIRST
 60.11     Section 1.  Minnesota Statutes 1997 Supplement, section 
 60.12  256K.03, subdivision 5, is amended to read: 
 60.13     Subd. 5.  [EXEMPTION CATEGORIES.] (a) The applicant will be 
 60.14  exempt from the job search requirements and development of a job 
 60.15  search plan and an employability development plan under 
 60.16  subdivisions 3, 4, and 8 if the applicant belongs to any of the 
 60.17  following groups: 
 60.18     (1) ~~caregivers under age 20 who have not completed a high~~ 
 60.19  ~~school education and are attending high school on a full-time~~ 
 60.20  ~~basis;~~ 
 60.21     ~~(2)~~ individuals who are age 60 or older; 
 60.22     ~~(3)~~ (2) individuals who are suffering from a professionally 
 60.23  certified permanent or temporary illness, injury, or incapacity 
 60.24  which is expected to continue for more than 30 days and which 
 60.25  prevents the person from obtaining or retaining employment.  
 60.26  Persons in this category with a temporary illness, injury, or 
 60.27  incapacity must be reevaluated at least quarterly; 
 60.28     ~~(4)~~ (3) caregivers whose presence in the home is needed 
 60.29  because of the professionally certified illness or incapacity of 
 60.30  another member in the assistance unit, a relative in the 
 60.31  household, or a foster child in the household; 
 60.32     ~~(5)~~ (4) women who are pregnant, if ~~it~~ the pregnancy has 
 60.33  ~~been medically verified~~ resulted in a professionally certified 
 60.34  incapacity that ~~the child is expected to be born within the next~~ 
 60.35  ~~six months~~ prevents the woman from obtaining and retaining 
 60.36  employment; 
 61.1      ~~(6)~~ (5) caregivers ~~or other caregiver relatives~~ of a child 
 61.2   under the age of ~~three~~ one year who personally provide full-time 
 61.3   care for the child.  This exemption may be used for only 12 
 61.4   months in a lifetime.  In two-parent households, only one parent 
 61.5   or other relative may qualify for this exemption; 
 61.6      ~~(7)~~ (6) individuals in single-parent families employed at 
 61.7   least ~~30~~ 35 hours per week; 
 61.8      ~~(8) individuals for whom participation would require a~~ 
 61.9   ~~round trip commuting time by available transportation of more~~ 
 61.10  ~~than two hours, excluding transporting of children for child~~ 
 61.11  ~~care;~~ 
 61.12     ~~(9) individuals for whom lack of proficiency in English is~~ 
 61.13  ~~a barrier to employment, provided such individuals are~~ 
 61.14  ~~participating in an intensive program which lasts no longer than~~ 
 61.15  ~~six months and is designed to remedy their language deficiency;~~ 
 61.16     ~~(10) individuals who, because of advanced age or lack of~~ 
 61.17  ~~ability, are incapable of gaining proficiency in English, as~~ 
 61.18  ~~determined by the county social worker, shall continue to be~~ 
 61.19  ~~exempt under this subdivision and are not subject to the~~ 
 61.20  ~~requirement that they be participating in a language program;~~ 
 61.21     ~~(11)~~ (7) individuals ~~under such duress that they are~~ 
 61.22  ~~incapable of participating in the program, as determined by the~~ 
 61.23  ~~county social worker~~ experiencing a personal or family crisis 
 61.24  that makes them incapable of participating in the program, as 
 61.25  determined by the county agency.  If the participant does not 
 61.26  agree with the county agency's determination, the participant 
 61.27  may seek professional certification, as defined in section 
 61.28  256J.08, that the participant is incapable of participating in 
 61.29  the program.  Persons in this exemption category must be 
 61.30  reevaluated every 60 days; or 
 61.31     ~~(12) individuals in need of refresher courses for purposes~~ 
 61.32  ~~of obtaining professional certification or licensure.~~ 
 61.33     ~~(b) In a two-parent family, only one caregiver may be~~ 
 61.34  ~~exempted under paragraph (a), clauses (4) and (6).~~ 
 61.35     (8) second parents in two-parent families, provided the 
 61.36  second parent is employed for 20 or more hours per week. 
 62.1      (b) A caregiver who is exempt under clause (5) must enroll 
 62.2   in and attend an early childhood and family education class, a 
 62.3   parenting class, or some similar activity, if available, during 
 62.4   the period of time the caregiver is exempt under this section.  
 62.5   Notwithstanding section 256J.46, failure to attend the required 
 62.6   activity shall not result in the imposition of a sanction. 
 62.7                              ARTICLE 3
 62.8                      ASSISTANCE PROGRAM CHANGES
 62.9      Section 1.  Minnesota Statutes 1997 Supplement, section 
 62.10  256.9864, is amended to read: 
 62.11     256.9864 [REPORTS BY RECIPIENT.] 
 62.12     (a) An assistance unit with a recent work history or with 
 62.13  earned income shall report monthly to the county agency on 
 62.14  income received and other circumstances affecting eligibility or 
 62.15  assistance amounts.  All other assistance units shall report on 
 62.16  income and other circumstances affecting eligibility and 
 62.17  assistance amounts, as specified by the state agency. 
 62.18     (b) An assistance unit required to submit a report on the 
 62.19  form designated by the commissioner and within ten days of the 
 62.20  due date or the date of the significant change, whichever is 
 62.21  later, or otherwise report significant changes which would 
 62.22  affect eligibility or assistance amounts, is considered to have 
 62.23  continued its application for assistance effective the date the 
 62.24  required report is received by the county agency, if a complete 
 62.25  report is received within a calendar month in which assistance 
 62.26  was received~~, except that no assistance shall be paid for the~~ 
 62.27  ~~period beginning with the end of the month in which the report~~ 
 62.28  ~~was due and ending with the date the report was received by the~~ 
 62.29  ~~county agency~~. 
 62.30     Sec. 2.  Minnesota Statutes 1997 Supplement, section 
 62.31  256B.062, is amended to read: 
 62.32     256B.062 [CONTINUED ELIGIBILITY.] 
 62.33     Medical assistance may be paid for persons who received aid 
 62.34  to families with dependent children in at least three of the six 
 62.35  months preceding the month in which the person became ineligible 
 62.36  for aid to families with dependent children, if the 
 63.1   ineligibility was due to an increase in hours of employment or 
 63.2   employment income or due to the loss of an earned income 
 63.3   disregard.  A person who is eligible for extended medical 
 63.4   assistance is entitled to six months of assistance without 
 63.5   reapplication, unless the assistance unit ceases to include a 
 63.6   dependent child.  For a person under 21 years of age, medical 
 63.7   assistance may not be discontinued within the six-month period 
 63.8   of extended eligibility until it has been determined that the 
 63.9   person is not otherwise eligible for medical assistance.  
 63.10  Medical assistance may be continued for an additional six months 
 63.11  if the person meets all requirements for the additional six 
 63.12  months, according to Title XIX of the Social Security Act, as 
 63.13  amended by section 303 of the Family Support Act of 1988, Public 
 63.14  Law Number 100-485.  This section is repealed effective ~~March 31~~ 
 63.15  July 1, 1998.  
 63.16     Sec. 3.  Minnesota Statutes 1996, section 256D.46, 
 63.17  subdivision 2, is amended to read: 
 63.18     Subd. 2.  [INCOME AND RESOURCE TEST.] All income and 
 63.19  resources available to the recipient must be considered in 
 63.20  determining the recipient's ability to meet the emergency need.  
 63.21  Property that can be liquidated in time to resolve the emergency 
 63.22  and income, ~~(~~excluding ~~Minnesota supplemental aid issued for~~ 
 63.23  ~~current month's need)~~ an amount equal to the Minnesota 
 63.24  supplemental aid standard of assistance, that is normally 
 63.25  disregarded or excluded under the Minnesota supplemental aid 
 63.26  program must be considered available to meet the emergency need. 
 63.27     Sec. 4.  Laws 1997, chapter 85, article 3, section 53, is 
 63.28  amended to read: 
 63.29     Sec. 53.  [TRANSFER OF RESPONSIBILITIES FOR PROVIDING 
 63.30  SECURE CRISIS SHELTER.] 
 63.31     (a) In state fiscal year ~~2000~~ 1999, all of the powers, 
 63.32  duties, and functions of the commissioner of human services 
 63.33  relating to the operation and funding of shelters for battered 
 63.34  women are transferred to the commissioner of corrections in 
 63.35  accordance with Minnesota Statutes, section 15.039, except for 
 63.36  personnel transfers under Minnesota Statutes, section 15.039, 
 64.1   subdivision 7. 
 64.2      (b) No payments by the general assistance program under 
 64.3   Minnesota Statutes, section 256D.05, subdivision 3 or 3a, will 
 64.4   be made for any placements in shelters for battered women and 
 64.5   their children which begin after June 30, 1998. 
 64.6      Sec. 5.  [REPEALER.] 
 64.7      Minnesota Statutes 1996, section 256D.05, subdivisions 3 
 64.8   and 3a, are repealed. 
 64.9                              ARTICLE 4 
 64.10                             LICENSING 
 64.11     Section 1.  Minnesota Statutes 1996, section 245A.14, 
 64.12  subdivision 4, is amended to read: 
 64.13     Subd. 4.  [SPECIAL FAMILY DAY CARE HOMES.] Nonresidential 
 64.14  child care programs serving 14 or fewer children that are 
 64.15  conducted at a location other than the license holder's own 
 64.16  residence shall be licensed under this section and the rules 
 64.17  governing family day care or group family day care if:  
 64.18     (a) the license holder is the primary provider of care~~;~~ 
 64.19     ~~(b)~~ and the nonresidential child care program is conducted 
 64.20  in a dwelling that is located on a residential lot; ~~and~~ or 
 64.21     ~~(c) the license holder complies with all other requirements~~ 
 64.22  ~~of sections 245A.01 to 245A.15 and the rules governing family~~ 
 64.23  ~~day care or group family day care.~~ 
 64.24     (b) the license holder is an employer who may or may not be 
 64.25  the primary provider of care, and the purpose for the child care 
 64.26  program is to provide child care services to children of the 
 64.27  license holder's employees.  
 64.28     Sec. 2.  [REPEALER.] 
 64.29     (a) Laws 1997, chapters 85, article 1, section 71, and 
 64.30  article 3, section 55; and 248, section 46, are repealed. 
 64.31     (b) Minnesota Statutes 1997 Supplement, section 256B.062, 
 64.32  is repealed effective July 1, 1998.