1.1                          A bill for an act 
  1.2             relating to human services; providing for the 
  1.3             distribution of child support and maintenance received 
  1.4             by the state; adding allowable use of money 
  1.5             appropriated for MFIP and TANF block grants; 
  1.6             appropriating money for MFIP employment services 
  1.7             program for local interventions for family employment; 
  1.8             reimbursing the federal government for federal share 
  1.9             of child support recoveries passed through to 
  1.10            custodial parents, child care and development fund; 
  1.11            transferring funds to the housing development fund; 
  1.12            amending Minnesota Statutes 1998, sections 256.741, by 
  1.13            adding a subdivision; 256J.50, subdivision 7; and 
  1.14            256J.62, by adding a subdivision; Minnesota Statutes 
  1.15            1999 Supplement, sections 119B.011, subdivision 15; 
  1.16            256J.02, subdivision 2; 256J.08, subdivision 86; 
  1.17            256J.21, subdivision 2; 256J.33, subdivision 4; and 
  1.18            256J.34, subdivisions 1 and 4; 256J.37, subdivision 9; 
  1.19            proposing coding for new law in Minnesota Statutes, 
  1.20            chapter 256J. 
  1.21  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.22     Section 1.  Minnesota Statutes 1999 Supplement, section 
  1.23  119B.011, subdivision 15, is amended to read: 
  1.24     Subd. 15.  [INCOME.] "Income" means earned or unearned 
  1.25  income received by all family members, including public 
  1.26  assistance cash benefits and at-home infant care subsidy 
  1.27  payments, unless specifically excluded and child support and 
  1.28  maintenance distributed to the family under section 256.741, 
  1.29  subdivision 15.  The following are excluded from income:  funds 
  1.30  used to pay for health insurance premiums for family members, 
  1.31  Supplemental Security Income, scholarships, work-study income, 
  1.32  and grants that cover costs or reimbursement for tuition, fees, 
  1.33  books, and educational supplies; student loans for tuition, 
  2.1   fees, books, supplies, and living expenses; state and federal 
  2.2   earned income tax credits; in-kind income such as food stamps, 
  2.3   energy assistance, foster care assistance, medical assistance, 
  2.4   child care assistance, and housing subsidies; earned income of 
  2.5   full or part-time students, who have not earned a high school 
  2.6   diploma or GED high school equivalency diploma including 
  2.7   earnings from summer employment; grant awards under the family 
  2.8   subsidy program; nonrecurring lump sum income only to the extent 
  2.9   that it is earmarked and used for the purpose for which it is 
  2.10  paid; and any income assigned to the public authority according 
  2.11  to section 256.74 or 256.741. 
  2.12     Sec. 2.  Minnesota Statutes 1998, section 256.741, is 
  2.13  amended by adding a subdivision to read: 
  2.14     Subd. 15.  [CHILD SUPPORT PASS-THROUGH.] The state shall 
  2.15  distribute current child support and maintenance received by the 
  2.16  state to an individual who assigns the right to that support 
  2.17  under subdivision 2, paragraph (a). 
  2.18     Sec. 3.  Minnesota Statutes 1999 Supplement, section 
  2.19  256J.02, subdivision 2, is amended to read: 
  2.20     Subd. 2.  [USE OF MONEY.] State money appropriated for 
  2.21  purposes of this section and TANF block grant money must be used 
  2.22  for: 
  2.23     (1) financial assistance to or on behalf of any minor child 
  2.24  who is a resident of this state under section 256J.12; 
  2.25     (2) employment and training services under this chapter or 
  2.26  chapter 256K; 
  2.27     (3) emergency financial assistance and services under 
  2.28  section 256J.48; 
  2.29     (4) diversionary assistance under section 256J.47; 
  2.30     (5) the health care and human services training and 
  2.31  retention program under chapter 116L, for costs associated with 
  2.32  families with children with incomes below 200 percent of the 
  2.33  federal poverty guidelines; 
  2.34     (6) the pathways program under section 116L.04, subdivision 
  2.35  1a; 
  2.36     (7) welfare-to-work extended employment services for MFIP 
  3.1   participants with severe impairment to employment as defined in 
  3.2   section 268A.15, subdivision 1a; 
  3.3      (8) the family homeless prevention and assistance program 
  3.4   under section 462A.204; 
  3.5      (9) the rent assistance for family stabilization 
  3.6   demonstration project under section 462A.205; and 
  3.7      (10) welfare to work transportation authorized under Public 
  3.8   Law Number 105-178; 
  3.9      (11) reimbursements for the federal share of child support 
  3.10  collections passed through to the custodial parent; and 
  3.11     (12) program administration under this chapter. 
  3.12     Sec. 4.  [256J.021] [SEPARATE STATE PROGRAM.] 
  3.13     Starting October 1, 2000, and each year thereafter, the 
  3.14  commissioner must treat financial assistance expenditures made 
  3.15  to or on behalf of any minor child under section 256J.02, 
  3.16  subdivision 2, clause (1), who is a resident of this state under 
  3.17  section 256J.12 and who is part of a two parent eligible 
  3.18  household as expenditures under a separately funded state 
  3.19  program and report those expenditures to the department of 
  3.20  health and human services as separate state program expenditures 
  3.21  under Code of Federal Regulations, title 45, chapter II, part 
  3.22  263.5. 
  3.23     Sec. 5.  [256J.022] [CHILD SUPPORT PASS-THROUGH.] 
  3.24     For purposes of claiming the pass-through of child support 
  3.25  under section 256.741 as maintenance of effort for the temporary 
  3.26  assistance to needy families grant, the commissioner shall 
  3.27  exclude 50 percent of the amount passed through under section 
  3.28  256J.21, subdivision 2.  That 50 percent shall include the 
  3.29  entire state share of current child support and maintenance 
  3.30  payments and an amount of the federal share sufficient to 
  3.31  provide a disregard equivalent to 50 percent of the combined 
  3.32  state and federal shares. 
  3.33     Sec. 6.  Minnesota Statutes 1999 Supplement, section 
  3.34  256J.08, subdivision 86, is amended to read: 
  3.35     Subd. 86.  [UNEARNED INCOME.] "Unearned income" means 
  3.36  income received by a person that does not meet the definition of 
  4.1   earned income.  Unearned income includes income from a contract 
  4.2   for deed, interest, dividends, reemployment compensation, 
  4.3   disability insurance payments, veterans benefits, pension 
  4.4   payments, return on capital investment, insurance payments or 
  4.5   settlements, severance payments, child support and maintenance 
  4.6   payments, and payments for illness or disability whether the 
  4.7   premium payments are made in whole or in part by an employer or 
  4.8   participant. 
  4.9      Sec. 7.  Minnesota Statutes 1999 Supplement, section 
  4.10  256J.21, subdivision 2, is amended to read: 
  4.11     Subd. 2.  [INCOME EXCLUSIONS.] (a) The following must be 
  4.12  excluded in determining a family's available income: 
  4.13     (1) payments for basic care, difficulty of care, and 
  4.14  clothing allowances received for providing family foster care to 
  4.15  children or adults under Minnesota Rules, parts 9545.0010 to 
  4.16  9545.0260 and 9555.5050 to 9555.6265, and payments received and 
  4.17  used for care and maintenance of a third-party beneficiary who 
  4.18  is not a household member; 
  4.19     (2) reimbursements for employment training received through 
  4.20  the Job Training Partnership Act, United States Code, title 29, 
  4.21  chapter 19, sections 1501 to 1792b; 
  4.22     (3) reimbursement for out-of-pocket expenses incurred while 
  4.23  performing volunteer services, jury duty, employment, or 
  4.24  informal carpooling arrangements directly related to employment; 
  4.25     (4) all educational assistance, except the county agency 
  4.26  must count graduate student teaching assistantships, 
  4.27  fellowships, and other similar paid work as earned income and, 
  4.28  after allowing deductions for any unmet and necessary 
  4.29  educational expenses, shall count scholarships or grants awarded 
  4.30  to graduate students that do not require teaching or research as 
  4.31  unearned income; 
  4.32     (5) loans, regardless of purpose, from public or private 
  4.33  lending institutions, governmental lending institutions, or 
  4.34  governmental agencies; 
  4.35     (6) loans from private individuals, regardless of purpose, 
  4.36  provided an applicant or participant documents that the lender 
  5.1   expects repayment; 
  5.2      (7)(i) state income tax refunds; and 
  5.3      (ii) federal income tax refunds; 
  5.4      (8)(i) federal earned income credits; 
  5.5      (ii) Minnesota working family credits; 
  5.6      (iii) state homeowners and renters credits under chapter 
  5.7   290A; and 
  5.8      (iv) federal or state tax rebates; 
  5.9      (9) funds received for reimbursement, replacement, or 
  5.10  rebate of personal or real property when these payments are made 
  5.11  by public agencies, awarded by a court, solicited through public 
  5.12  appeal, or made as a grant by a federal agency, state or local 
  5.13  government, or disaster assistance organizations, subsequent to 
  5.14  a presidential declaration of disaster; 
  5.15     (10) the portion of an insurance settlement that is used to 
  5.16  pay medical, funeral, and burial expenses, or to repair or 
  5.17  replace insured property; 
  5.18     (11) reimbursements for medical expenses that cannot be 
  5.19  paid by medical assistance; 
  5.20     (12) payments by a vocational rehabilitation program 
  5.21  administered by the state under chapter 268A, except those 
  5.22  payments that are for current living expenses; 
  5.23     (13) in-kind income, including any payments directly made 
  5.24  by a third party to a provider of goods and services; 
  5.25     (14) assistance payments to correct underpayments, but only 
  5.26  for the month in which the payment is received; 
  5.27     (15) emergency assistance payments; 
  5.28     (16) funeral and cemetery payments as provided by section 
  5.29  256.935; 
  5.30     (17) nonrecurring cash gifts of $30 or less, not exceeding 
  5.31  $30 per participant in a calendar month; 
  5.32     (18) any form of energy assistance payment made through 
  5.33  Public Law Number 97-35, Low-Income Home Energy Assistance Act 
  5.34  of 1981, payments made directly to energy providers by other 
  5.35  public and private agencies, and any form of credit or rebate 
  5.36  payment issued by energy providers; 
  6.1      (19) Supplemental Security Income, including retroactive 
  6.2   payments; 
  6.3      (20) Minnesota supplemental aid, including retroactive 
  6.4   payments; 
  6.5      (21) proceeds from the sale of real or personal property; 
  6.6      (22) adoption assistance payments under section 259.67; 
  6.7      (23) state-funded family subsidy program payments made 
  6.8   under section 252.32 to help families care for children with 
  6.9   mental retardation or related conditions; 
  6.10     (24) interest payments and dividends from property that is 
  6.11  not excluded from and that does not exceed the asset limit; 
  6.12     (25) rent rebates; 
  6.13     (26) income earned by a minor caregiver, minor child 
  6.14  through age 6, or a minor child who is at least a half-time 
  6.15  student in an approved elementary or secondary education 
  6.16  program; 
  6.17     (27) income earned by a caregiver under age 20 who is at 
  6.18  least a half-time student in an approved elementary or secondary 
  6.19  education program; 
  6.20     (28) MFIP child care payments under section 119B.05; 
  6.21     (29) all other payments made through MFIP to support a 
  6.22  caregiver's pursuit of greater self-support; 
  6.23     (30) income a participant receives related to shared living 
  6.24  expenses; 
  6.25     (31) reverse mortgages; 
  6.26     (32) benefits provided by the Child Nutrition Act of 1966, 
  6.27  United States Code, title 42, chapter 13A, sections 1771 to 
  6.28  1790; 
  6.29     (33) benefits provided by the women, infants, and children 
  6.30  (WIC) nutrition program, United States Code, title 42, chapter 
  6.31  13A, section 1786; 
  6.32     (34) benefits from the National School Lunch Act, United 
  6.33  States Code, title 42, chapter 13, sections 1751 to 1769e; 
  6.34     (35) relocation assistance for displaced persons under the 
  6.35  Uniform Relocation Assistance and Real Property Acquisition 
  6.36  Policies Act of 1970, United States Code, title 42, chapter 61, 
  7.1   subchapter II, section 4636, or the National Housing Act, United 
  7.2   States Code, title 12, chapter 13, sections 1701 to 1750jj; 
  7.3      (36) benefits from the Trade Act of 1974, United States 
  7.4   Code, title 19, chapter 12, part 2, sections 2271 to 2322; 
  7.5      (37) war reparations payments to Japanese Americans and 
  7.6   Aleuts under United States Code, title 50, sections 1989 to 
  7.7   1989d; 
  7.8      (38) payments to veterans or their dependents as a result 
  7.9   of legal settlements regarding Agent Orange or other chemical 
  7.10  exposure under Public Law Number 101-239, section 10405, 
  7.11  paragraph (a)(2)(E); 
  7.12     (39) income that is otherwise specifically excluded from 
  7.13  MFIP consideration in federal law, state law, or federal 
  7.14  regulation; 
  7.15     (40) security and utility deposit refunds; 
  7.16     (41) American Indian tribal land settlements excluded under 
  7.17  Public Law Numbers 98-123, 98-124, and 99-377 to the Mississippi 
  7.18  Band Chippewa Indians of White Earth, Leech Lake, and Mille Lacs 
  7.19  reservations and payments to members of the White Earth Band, 
  7.20  under United States Code, title 25, chapter 9, section 331, and 
  7.21  chapter 16, section 1407; 
  7.22     (42) all income of the minor parent's parents and 
  7.23  stepparents when determining the grant for the minor parent in 
  7.24  households that include a minor parent living with parents or 
  7.25  stepparents on MFIP with other children; and 
  7.26     (43) income of the minor parent's parents and stepparents 
  7.27  equal to 200 percent of the federal poverty guideline for a 
  7.28  family size not including the minor parent and the minor 
  7.29  parent's child in households that include a minor parent living 
  7.30  with parents or stepparents not on MFIP when determining the 
  7.31  grant for the minor parent.  The remainder of income is deemed 
  7.32  as specified in section 256J.37, subdivision 1b; 
  7.33     (44) payments made to children eligible for relative 
  7.34  custody assistance under section 257.85; 
  7.35     (45) vendor payments for goods and services made on behalf 
  7.36  of a client unless the client has the option of receiving the 
  8.1   payment in cash; and 
  8.2      (46) the principal portion of a contract for deed payment; 
  8.3   and 
  8.4      (47) 50 percent of current child support and maintenance 
  8.5   payments. 
  8.6      Sec. 8.  Minnesota Statutes 1999 Supplement, section 
  8.7   256J.33, subdivision 4, is amended to read: 
  8.8      Subd. 4.  [MONTHLY INCOME TEST.] A county agency must apply 
  8.9   the monthly income test retrospectively for each month of MFIP 
  8.10  eligibility.  An assistance unit is not eligible when the 
  8.11  countable income equals or exceeds the MFIP standard of need or 
  8.12  the family wage level for the assistance unit.  The income 
  8.13  applied against the monthly income test must include: 
  8.14     (1) gross earned income from employment, prior to mandatory 
  8.15  payroll deductions, voluntary payroll deductions, wage 
  8.16  authorizations, and after the disregards in section 256J.21, 
  8.17  subdivision 4, and the allocations in section 256J.36, unless 
  8.18  the employment income is specifically excluded under section 
  8.19  256J.21, subdivision 2; 
  8.20     (2) gross earned income from self-employment less 
  8.21  deductions for self-employment expenses in section 256J.37, 
  8.22  subdivision 5, but prior to any reductions for personal or 
  8.23  business state and federal income taxes, personal FICA, personal 
  8.24  health and life insurance, and after the disregards in section 
  8.25  256J.21, subdivision 4, and the allocations in section 256J.36; 
  8.26     (3) unearned income after deductions for allowable expenses 
  8.27  in section 256J.37, subdivision 9, and allocations in section 
  8.28  256J.36, unless the income has been specifically excluded in 
  8.29  section 256J.21, subdivision 2; 
  8.30     (4) gross earned income from employment as determined under 
  8.31  clause (1) which is received by a member of an assistance unit 
  8.32  who is a minor child or minor caregiver and less than a 
  8.33  half-time student; 
  8.34     (5) child support and spousal support received or 
  8.35  anticipated to be received by an assistance unit; 
  8.36     (6) the income of a parent when that parent is not included 
  9.1   in the assistance unit; 
  9.2      (7) the income of an eligible relative and spouse who seek 
  9.3   to be included in the assistance unit; and 
  9.4      (8) the unearned income of a minor child included in the 
  9.5   assistance unit. 
  9.6      Sec. 9.  Minnesota Statutes 1999 Supplement, section 
  9.7   256J.34, subdivision 1, is amended to read: 
  9.8      Subdivision 1.  [PROSPECTIVE BUDGETING.] A county agency 
  9.9   must use prospective budgeting to calculate the assistance 
  9.10  payment amount for the first two months for an applicant who has 
  9.11  not received assistance in this state for at least one payment 
  9.12  month preceding the first month of payment under a current 
  9.13  application.  Notwithstanding subdivision 3, paragraph (a), 
  9.14  clause (2), a county agency must use prospective budgeting for 
  9.15  the first two months for a person who applies to be added to an 
  9.16  assistance unit.  Prospective budgeting is not subject to 
  9.17  overpayments or underpayments unless fraud is determined under 
  9.18  section 256.98. 
  9.19     (a) The county agency must apply the income received or 
  9.20  anticipated in the first month of MFIP eligibility against the 
  9.21  need of the first month.  The county agency must apply the 
  9.22  income received or anticipated in the second month against the 
  9.23  need of the second month. 
  9.24     (b) When the assistance payment for any part of the first 
  9.25  two months is based on anticipated income, the county agency 
  9.26  must base the initial assistance payment amount on the 
  9.27  information available at the time the initial assistance payment 
  9.28  is made. 
  9.29     (c) The county agency must determine the assistance payment 
  9.30  amount for the first two months of MFIP eligibility by budgeting 
  9.31  both recurring and nonrecurring income for those two months. 
  9.32     (d) The county agency must budget the child support income 
  9.33  received or anticipated to be received by an assistance unit to 
  9.34  determine the assistance payment amount from the month of 
  9.35  application through the date in which MFIP eligibility is 
  9.36  determined and assistance is authorized.  Child support income 
 10.1   which has been budgeted to determine the assistance payment in 
 10.2   the initial two months is considered nonrecurring income.  An 
 10.3   assistance unit must forward any payment of child support to the 
 10.4   child support enforcement unit of the county agency following 
 10.5   the date in which assistance is authorized. 
 10.6      Sec. 10.  Minnesota Statutes 1999 Supplement, section 
 10.7   256J.34, subdivision 4, is amended to read: 
 10.8      Subd. 4.  [SIGNIFICANT CHANGE IN GROSS INCOME.] The county 
 10.9   agency must recalculate the assistance payment when an 
 10.10  assistance unit experiences a significant change, as defined in 
 10.11  section 256J.08, resulting in a reduction in the gross income 
 10.12  received in the payment month from the gross income received in 
 10.13  the budget month.  The county agency must issue a supplemental 
 10.14  assistance payment based on the county agency's best estimate of 
 10.15  the assistance unit's income and circumstances for the payment 
 10.16  month.  Supplemental assistance payments that result from 
 10.17  significant changes are limited to two in a 12-month period 
 10.18  regardless of the reason for the change.  Notwithstanding any 
 10.19  other statute or rule of law, supplementary assistance payments 
 10.20  shall not be made when the significant change in income is the 
 10.21  result of receipt of a lump sum, receipt of an extra paycheck, 
 10.22  business fluctuation in self-employment income, or an assistance 
 10.23  unit member's participation in a strike or other labor action.  
 10.24  Supplementary assistance payments due to a significant change in 
 10.25  the amount of direct support received must not be made after the 
 10.26  date the assistance unit is required to forward support to the 
 10.27  child support enforcement unit under subdivision 1, paragraph 
 10.28  (d). 
 10.29     Sec. 11.  Minnesota Statutes 1999 Supplement, section 
 10.30  256J.37, subdivision 9, is amended to read: 
 10.31     Subd. 9.  [UNEARNED INCOME.] (a) The county agency must 
 10.32  apply unearned income to the MFIP standard of need.  When 
 10.33  determining the amount of unearned income, the county agency 
 10.34  must deduct the costs necessary to secure payments of unearned 
 10.35  income.  These costs include legal fees, medical fees, and 
 10.36  mandatory deductions such as federal and state income taxes. 
 11.1      (b) Effective January 1, 2001, the county agency shall 
 11.2   count $100 of the value of public and assisted rental subsidies 
 11.3   provided through the Department of Housing and Urban Development 
 11.4   (HUD) as unearned income.  The full amount of the subsidy must 
 11.5   be counted as unearned income when the subsidy is less than $100.
 11.6      (c) The provisions of paragraph (b) shall not apply to MFIP 
 11.7   participants who are exempt from the employment and training 
 11.8   services component because they are: 
 11.9      (i) individuals who are age 60 or older; 
 11.10     (ii) individuals who are suffering from a professionally 
 11.11  certified permanent or temporary illness, injury, or incapacity 
 11.12  which is expected to continue for more than 30 days and which 
 11.13  prevents the person from obtaining or retaining employment; or 
 11.14     (iii) caregivers whose presence in the home is required 
 11.15  because of the professionally certified illness or incapacity of 
 11.16  another member in the assistance unit, a relative in the 
 11.17  household, or a foster child in the household. 
 11.18     (d) The provisions of paragraph (b) shall not apply to an 
 11.19  MFIP assistance unit where the parental caregiver receives 
 11.20  supplemental security income. 
 11.21     Sec. 12.  Minnesota Statutes 1998, section 256J.50, 
 11.22  subdivision 7, is amended to read: 
 11.23     Subd. 7.  [LOCAL SERVICE UNIT PLAN.] (a) Each local or 
 11.24  county service unit shall prepare and submit a plan as specified 
 11.25  in section 268.88. 
 11.26     (b) The plan must include a description of how projects 
 11.27  funded under the local interventions for family employment in 
 11.28  section 256J.62, subdivision 3a, operate in the local service 
 11.29  unit, including: 
 11.30     (1) target population of hard-to-employ participants; 
 11.31     (2) services that will be provided which may include paid 
 11.32  work experience, enhanced mental health services, outreach to 
 11.33  sanctioned families, child care for social services, child care 
 11.34  transition year set-aside, homeless and housing advocacy, and 
 11.35  transportation; 
 11.36     (3) projected expenditures by activity; and 
 12.1      (4) anticipated program outcomes including the anticipated 
 12.2   impact the intervention efforts will have on performance 
 12.3   measures under section 256J.751 and on reducing the number of 
 12.4   MFIP participants expected to reach their 60-month time limit. 
 12.5      Each plan must demonstrate how the county or tribe is 
 12.6   working within its organization and with other organizations in 
 12.7   the community to serve hard to employ populations, including how 
 12.8   organizations in the community were engaged in planning for use 
 12.9   of these funds and whether multicounty or regional strategies 
 12.10  are being implemented as part of this plan. 
 12.11     (c) This plan must be approved before the local service 
 12.12  unit is eligible for funds from the local intervention for 
 12.13  family employment allocation in section 256J.62. 
 12.14     Sec. 13.  Minnesota Statutes 1998, section 256J.62, is 
 12.15  amended by adding a subdivision to read: 
 12.16     Subd. 3a.  [LOCAL INTERVENTIONS FOR FAMILY EMPLOYMENT.] (a) 
 12.17  Of the local intervention for family employment funds 
 12.18  appropriated under section 14, paragraph (b), 80 percent shall 
 12.19  be allocated to counties and tribes based on the average 
 12.20  proportion of the MFIP caseload that has received MFIP 
 12.21  assistance for 24 of the last 36 months, as sampled on March 31, 
 12.22  June 30, September 30, and December 31 of the previous calendar 
 12.23  year, less the number of child only cases and cases where all 
 12.24  the caregivers are age 60 or over.  Two-parent cases, with the 
 12.25  exception of those with a caregiver age 60 or over, will be 
 12.26  multiplied by a factor of two. 
 12.27     (b) Counties or tribes must have an approved local service 
 12.28  unit plan under section 256J.50, subdivision 7, paragraph (b), 
 12.29  in order to expend funds under this section.  The commissioner 
 12.30  may approve funding for a county or tribe at less than the 
 12.31  amount allocated under paragraph (a) based on plan review, or at 
 12.32  more than allocated under paragraph (a) based on paragraph (c). 
 12.33     (c) Of the local intervention for family employment funds 
 12.34  appropriated under section 14, paragraph (b), 20 percent shall 
 12.35  be retained by the commissioner and awarded to counties or 
 12.36  tribes whose local service unit plans under section 256J.50, 
 13.1   subdivision 7, paragraph (b), demonstrate additional need based 
 13.2   on their identification of hard to employ families, strong 
 13.3   anticipated outcomes for families and an effective plan for 
 13.4   monitoring performance, or, use of a multicounty or regional 
 13.5   approach to serve hard to employ families. 
 13.6      (d) If a county or tribe does not submit a local service 
 13.7   unit plan under section 256J.50, subdivision 7, paragraph (b), 
 13.8   or if the plan is not approved or is not approved at the full 
 13.9   amount allocated to the county or tribe under paragraph (a), 
 13.10  remaining funds under paragraph (a) may be used by the 
 13.11  commissioner to contract with other public, private, or 
 13.12  nonprofit entities in the county or region to deliver services 
 13.13  that meet the purposes of section 14, paragraph (b). 
 13.14     (e) Counties and tribes must submit semiannual progress 
 13.15  reports detailing program outcomes. 
 13.16     (f) Intervention fund money may not be expended on TANF 
 13.17  assistance as defined in the Code of Federal Regulations, title 
 13.18  45, section 260.31.  
 13.19     Sec. 14.  [FEDERAL TANF FUNDS; APPROPRIATIONS.] 
 13.20     (a) In addition to the TANF funds provided in Laws 1999, 
 13.21  chapter 245, article 1, section 2, subdivision 10, federal TANF 
 13.22  block grant funds are appropriated to the commissioner of human 
 13.23  services in amounts of $25,800,000 in fiscal year 2000 and 
 13.24  $62,818,888 in fiscal year 2001. 
 13.25     (b) Of the funds appropriated to the commissioner of human 
 13.26  services for state fiscal year 2001, $10,500,000 shall be added 
 13.27  to the appropriation for the MFIP employment services program 
 13.28  for local interventions for family employment and $1,500,000 
 13.29  shall be appropriated for the purpose of training job 
 13.30  counselors, evaluating the effectiveness of the interventions, 
 13.31  and identifying improvements needed. 
 13.32     (1) notwithstanding Minnesota Statutes 1998, sections 
 13.33  119B.01, subdivision 12, and 119B.05, subdivision 1, a county 
 13.34  may use local interventions for family employment funds for 
 13.35  child care assistance provided to MFIP families participating in 
 13.36  preemployment activities required as part of their employment 
 14.1   plan and defined as work activities under Minnesota Statutes, 
 14.2   section 256J.49; 
 14.3      (2) a county may provide child care assistance to families 
 14.4   that have completed their transition year of child care 
 14.5   assistance and are on the waiting list for basic sliding fee 
 14.6   child care; 
 14.7      (3) a county may use local interventions for family 
 14.8   employment funds for that part of the match for Access to Jobs 
 14.9   federal funds that is TANF eligible; 
 14.10     (4) a county may use local interventions for family 
 14.11  employment funds to enhance transportation choices for eligible 
 14.12  recipients up to 150 percent of the federal poverty guideline; 
 14.13     (5) reimbursements for child care under clauses (1) and (2) 
 14.14  shall be made to the commissioner of children, families, and 
 14.15  learning.  Reimbursements shall be made quarterly through 
 14.16  transfers under Minnesota Statutes, section 256J.02, subdivision 
 14.17  4, or direct TANF payments.  The commissioner of children, 
 14.18  families, and learning shall ensure that all transferred funds 
 14.19  are expended in accordance with federal child care development 
 14.20  fund regulations; and 
 14.21     (6) no reimbursement may be made with respect to clauses 
 14.22  (3) to (5) that would meet the federal definition of assistance 
 14.23  under Code of Federal Regulations, title 45, chapter II, part 
 14.24  260.31(a), as excepted by Code of Federal Regulations, title 45, 
 14.25  chapter II, part 260.31(b)(7). 
 14.26     (c) Of the funds appropriated to the commissioner of human 
 14.27  services for state fiscal year 2001, up to $5,746,991 shall be 
 14.28  used to reimburse the federal government for the federal share 
 14.29  of the child support recoveries passed through to custodial 
 14.30  parents. 
 14.31     (d) Of the amounts in paragraph (a), $324,312 in fiscal 
 14.32  year 2001 is transferred from the state's federal TANF block 
 14.33  grant to the state's federal child care and development fund 
 14.34  block grant, and is appropriated to the commissioner of 
 14.35  children, families, and learning for the purposes of Minnesota 
 14.36  Statutes, section 119B.05. 
 15.1      (e) When preparing the governor's budget for the 2002-2003 
 15.2   biennium, the commissioner of finance shall ensure that the base 
 15.3   level funding for the local interventions for family employment 
 15.4   includes $22,000,000 in fiscal year 2002 and $22,000,000 in 
 15.5   fiscal year 2003.  These appropriations shall not become part of 
 15.6   the base for the 2004-2005 biennium. 
 15.7      Sec. 15.  [TANF MAINTENANCE OF EFFORT FUNDS.] 
 15.8      (a) The commissioner of human services shall identify and 
 15.9   claim allowable state expenditures from the working family 
 15.10  credit under Minnesota Statutes, section 290.671, as TANF 
 15.11  maintenance of effort for fiscal years 2000 and 2001 in amounts 
 15.12  equal to the amount of general funds that are transferred to the 
 15.13  housing finance agency and deposited in the housing development 
 15.14  fund and the amount of general funds that are used for the 
 15.15  extended learning initiative. 
 15.16     (b) For fiscal years 2002 and 2003, the commissioner shall 
 15.17  claim allowable state expenditures from the working family 
 15.18  credit under Minnesota Statutes, section 290.671, as TANF 
 15.19  maintenance of effort in amounts equal to the state share of 
 15.20  medical assistance costs attributable to the additional cases 
 15.21  estimated to result from sections 2 and 7. 
 15.22     Sec. 16.  [EXTENDED LEARNING INITIATIVE.] 
 15.23     (a) For fiscal year 2001, the commissioner of human 
 15.24  services shall use $10,000,000 of the general funds appropriated 
 15.25  under Laws 1999, chapter 245, article 1, section 2, subdivision 
 15.26  10, for the extended learning initiative.  The commissioner of 
 15.27  human services shall ensure that alternative maintenance of 
 15.28  effort funds are available to replace state MFIP grant 
 15.29  expenditures reduced by this provision.  Under the extended 
 15.30  learning initiative, grants will be provided on a competitive 
 15.31  basis to community or nonprofit organizations, to political 
 15.32  subdivisions, or to school-based programs for the purpose of 
 15.33  establishing or expanding after-school and summer school 
 15.34  programs to assist low-income children and families. 
 15.35     (b) Grants must be used to provide high-quality, academic 
 15.36  based after-school and summer school educational services to 
 16.1   TANF-eligible students to enable their parents to participate in 
 16.2   training or employment activities.  Grant recipients must 
 16.3   demonstrate their program will: 
 16.4      (1) provide low-income students with a high-quality, 
 16.5   extended learning program that has clear, measurable goals and 
 16.6   includes an assessment of each student's knowledge before and 
 16.7   after participation in the program; and 
 16.8      (2) include a parent and family involvement component with 
 16.9   supplementary materials and activities, and a measurement of 
 16.10  parental involvement for participating students and the parent's 
 16.11  level of satisfaction with the program's content and results. 
 16.12  This appropriation shall not become part of the base for the 
 16.13  2002-2003 biennium. 
 16.14     Sec. 17.  [TANF MAINTENANCE OF EFFORT TRANSFERS TO 
 16.15  MINNESOTA HOUSING FINANCE AGENCY.] 
 16.16     By June 30, 2001, the commissioner of human services shall 
 16.17  transfer $54,500,000 of the general funds appropriated under 
 16.18  Laws 1999, chapter 245, article 1, section 2, subdivision 10, to 
 16.19  the Minnesota housing finance agency for transfer to the housing 
 16.20  development fund.  Up to $25,800,000 may be transferred in 
 16.21  fiscal year 2000.  The commissioner of human services shall 
 16.22  ensure that alternative maintenance of effort funds are 
 16.23  available to replace state MFIP grant expenditures reduced by 
 16.24  this provision. 
 16.25     Sec. 18.  [EFFECTIVE DATE.] 
 16.26     Sections 2 and 7 are effective January 1, 2001.  All other 
 16.27  sections are effective upon final enactment unless otherwise 
 16.28  specified.