1.1.................... moves to amend H. F. No. 605 as follows:
1.2Delete everything after the enacting clause and insert:

1.3"ARTICLE 1
1.4PROGRAM INTEGRITY

1.5    Section 1. Minnesota Statutes 2006, section 256.01, subdivision 4, is amended to read:
1.6    Subd. 4. Duties as state agency. (a) The state agency shall:
1.7(1) supervise the administration of assistance to dependent children under Laws
1.81937, chapter 438, by the county agencies in an integrated program with other service for
1.9dependent children maintained under the direction of the state agency;
1.10(2) may subpoena witnesses and administer oaths, make rules, and take such action
1.11as may be necessary, or desirable for carrying out the provisions of Laws 1937, chapter
1.12438. All rules made by the state agency shall be binding on the counties and shall be
1.13complied with by the respective county agencies;
1.14(3) (2) establish adequate standards for personnel employed by the counties and the
1.15state agency in the administration of Laws 1937, chapter 438, and make the necessary
1.16rules to maintain such standards;
1.17(4) (3) prescribe the form of and print and supply to the county agencies blanks
1.18for applications, reports, affidavits, and such other forms as it may deem necessary and
1.19advisable;
1.20(5) (4) cooperate with the federal government and its public welfare agencies
1.21in any reasonable manner as may be necessary to qualify for federal aid for temporary
1.22assistance for needy families and in conformity with title I of Public Law 104-193, the
1.23Personal Responsibility and Work Opportunity Reconciliation Act of 1996 and successor
1.24amendments, including the making of such reports and such forms and containing such
1.25information as the Federal Social Security Board may from time to time require, and
1.26comply with such provisions as such board may from time to time find necessary to assure
1.27the correctness and verification of such reports;
2.1(6) may cooperate with other state agencies in establishing reciprocal agreements in
2.2instances where a child receiving Minnesota family investment program assistance moves
2.3or contemplates moving into or out of the state, in order that such child may continue to
2.4receive supervised aid from the state moved from until the child shall have resided for
2.5one year in the state moved to;
2.6(7) (5) on or before October 1 in each even-numbered year make a biennial report
2.7to the governor concerning the activities of the agency;
2.8(8) (6) enter into agreements with other departments of the state as necessary to meet
2.9all requirements of the federal government; and
2.10(9) (7) cooperate with the commissioner of education to enforce the requirements
2.11for program integrity and fraud prevention for investigation for child care assistance
2.12under chapter 119B.
2.13(b) The state agency may:
2.14(1) subpoena witnesses and administer oaths, make rules, and take such action as
2.15may be necessary, or desirable for carrying out the provisions of Laws 1937, chapter 438.
2.16All rules made by the state agency shall be binding on the counties and shall be complied
2.17with by the respective county agencies;
2.18(2) cooperate with other state agencies in establishing reciprocal agreements in
2.19instances where a child receiving Minnesota family investment program assistance moves
2.20or contemplates moving into or out of the state, in order that such child may continue to
2.21receive supervised aid from the state moved from until the child shall have resided for one
2.22year in the state moved to; and
2.23(3) administer oaths and affirmations, take depositions, certify to official acts, and
2.24issue subpoenas to compel the attendance of individuals and the production of documents
2.25and other personal property necessary in connection with the administration of programs
2.26administered by the Department of Human Services.
2.27(c) The fees for service of a subpoena in paragraph (b), clause (3), must be paid in
2.28the same manner as prescribed by law for a service of process issued by a district court.
2.29Witnesses must receive the same fees and mileage as in civil actions.
2.30(d) The subpoena in paragraph (b), clause (3), shall be enforceable through the
2.31district court in the district where the subpoena is issued.

2.32    Sec. 2. Minnesota Statutes 2006, section 256.015, subdivision 7, is amended to read:
2.33    Subd. 7. Cooperation required. Upon the request of the Department of Human
2.34Services, any state agency or third party payer shall cooperate with the department in
2.35furnishing information to help establish a third party liability. Upon the request of the
2.36Department of Human Services or county child support or human service agencies, any
3.1employer or third party payer shall cooperate in furnishing information about group health
3.2insurance plans or medical benefit plans available to its employees. For purposes of
3.3section 176.191, subdivision 4, the Department of Labor and Industry may allow the
3.4Department of Human Services and county agencies direct access and data matching on
3.5information relating to workers' compensation claims in order to determine whether the
3.6claimant has reported the fact of a pending claim and the amount paid to or on behalf of
3.7the claimant, to the Department of Human Services. The Department of Human Services
3.8and county agencies shall limit its use of information gained from agencies, third party
3.9payers, and employers to purposes directly connected with the administration of its public
3.10assistance and child support programs. The provision of information by agencies, third
3.11party payers, and employers to the department under this subdivision is not a violation of
3.12any right of confidentiality or data privacy.

3.13    Sec. 3. Minnesota Statutes 2006, section 256.0471, subdivision 1, is amended to read:
3.14    Subdivision 1. Qualifying overpayment. Any overpayment for assistance granted
3.15under chapter 119B, the MFIP program formerly codified under sections 256.031 to
3.16256.0361 , and the AFDC program formerly codified under sections 256.72 to 256.871;
3.17chapters 256B, 256D, 256I, 256J, and 256K, and 256L; and the food stamp or food support
3.18program, except agency error claims, become a judgment by operation of law 90 days
3.19after the notice of overpayment is personally served upon the recipient in a manner that
3.20is sufficient under rule 4.03(a) of the Rules of Civil Procedure for district courts, or by
3.21certified mail, return receipt requested. This judgment shall be entitled to full faith and
3.22credit in this and any other state.

3.23    Sec. 4. Minnesota Statutes 2006, section 256.984, subdivision 1, is amended to read:
3.24    Subdivision 1. Declaration. Every application for public assistance under this
3.25chapter or chapters 256B, 256D, 256J, 256L, child care programs under chapter 119B, and
3.26food stamps or food support under chapter 393 shall be in writing or reduced to writing as
3.27prescribed by the state agency and shall contain the following declaration which shall be
3.28signed by the applicant:
3.29"I declare under the penalties of perjury that this application has been examined
3.30by me and to the best of my knowledge is a true and correct statement of every
3.31material point. I understand that a person convicted of perjury may be sentenced
3.32to imprisonment of not more than five years or to payment of a fine of not more
3.33than $10,000, or both."

3.34ARTICLE 2
3.35CHILDREN AND ECONOMIC ASSISTANCE

4.1    Section 1. Minnesota Statutes 2006, section 119B.011, is amended by adding a
4.2subdivision to read:
4.3    Subd. 13a. Family stabilization services program. "Family stabilization services
4.4program" means the program under section 256J.575.

4.5    Sec. 2. Minnesota Statutes 2006, section 119B.05, subdivision 1, is amended to read:
4.6    Subdivision 1. Eligible participants. Families eligible for child care assistance
4.7under the MFIP child care program are:
4.8(1) MFIP participants who are employed or in job search and meet the requirements
4.9of section 119B.10;
4.10(2) persons who are members of transition year families under section 119B.011,
4.11subdivision 20
, and meet the requirements of section 119B.10;
4.12(3) families who are participating in employment orientation or job search, or
4.13other employment or training activities that are included in an approved employability
4.14development plan under section 256J.95;
4.15(4) MFIP families who are participating in work job search, job support,
4.16employment, or training activities as required in their employment plan, or in appeals,
4.17hearings, assessments, or orientations according to chapter 256J;
4.18(5) MFIP families who are participating in social services activities under chapter
4.19256J as required in their employment plan approved according to chapter 256J;
4.20(6) families who are participating in services or activities that are included in an
4.21approved family stabilization plan under section 256J.575;
4.22(7) families who are participating in programs as required in tribal contracts under
4.23section 119B.02, subdivision 2, or 256.01, subdivision 2; and
4.24(7) (8) families who are participating in the transition year extension under section
4.25119B.011, subdivision 20a .

4.26    Sec. 3. Minnesota Statutes 2006, section 119B.09, subdivision 1, is amended to read:
4.27    Subdivision 1. General eligibility requirements for all applicants for child
4.28care assistance. (a) Child care services must be available to families who need child
4.29care to find or keep employment or to obtain the training or education necessary to find
4.30employment and who:
4.31(1) have household income less than or equal to 250 percent of the federal poverty
4.32guidelines 75 percent of the state median income, adjusted for family size, and meet the
4.33requirements of section 119B.05; or receive MFIP assistance; and are participating in
4.34employment and training services under chapter 256J or 256K; or
5.1(2) have household income less than or equal to 175 percent of the federal poverty
5.2guidelines, adjusted for family size, at program entry and less than 250 percent of the
5.3federal poverty guidelines, adjusted for family size, at program exit.
5.4(b) Child care services must be made available as in-kind services.
5.5(c) All applicants for child care assistance and families currently receiving child care
5.6assistance must be assisted and required to cooperate in establishment of paternity and
5.7enforcement of child support obligations for all children in the family as a condition
5.8of program eligibility. For purposes of this section, a family is considered to meet the
5.9requirement for cooperation when the family complies with the requirements of section
5.10256.741 .

5.11    Sec. 4. Minnesota Statutes 2006, section 119B.09, is amended by adding a subdivision
5.12to read:
5.13    Subd. 11. Payment of other child care expenses. Payment, by a source other
5.14than the family, of part or all of a family's child care expenses not payable under chapter
5.15119B, does not affect the family's eligibility for child care assistance, and the amount
5.16paid is excluded from the family's income, if the funds are paid directly to the family's
5.17child care provider on behalf of the family. Child care providers who accept third-party
5.18payments must maintain family-specific documentation of payment source, amount, type
5.19of expenses, and time period covered by the payment.

5.20    Sec. 5. Minnesota Statutes 2006, section 119B.12, is amended by adding a subdivision
5.21to read:
5.22    Subd. 3. Co-payment fee for families with annual incomes that exceed the
5.23federal poverty level. The monthly family co-payment fee for families with annual
5.24incomes greater than the federal poverty level, adjusted for family size, is determined
5.25as follows.
5.26(a) The family's annual gross income is converted into a percentage of state median
5.27income (SMI) for a family of four, adjusted for family size, by dividing the family's annual
5.28gross income by 100 percent of the SMI for a family of four, adjusted for family size. The
5.29percentage must be carried out to the nearest 100th of a percent.
5.30(b) If the family's annual gross income is less than or equal to 75 percent of the
5.31SMI for a family of four, adjusted for family size, the family's monthly co-payment fee
5.32is the fixed percentage established for the family's income range in clauses (1) to (60),
5.33multiplied by the highest possible income within that income range, divided by 12, and
5.34rounded to the nearest whole dollar.
5.35(1) less than 35.01 percent of SMI -- 2.20%
5.36(2) 35.01 to 42.00 percent of SMI -- 2.70%
6.1(3) 42.01 to 43.00 percent of SMI -- 3.75%
6.2(4) 43.01 to 44.00 percent of SMI -- 4.00%
6.3(5) 44.01 to 45.00 percent of SMI -- 4.25%
6.4(6) 45.01 to 46.00 percent of SMI -- 4.50%
6.5(7) 46.01 to 47.00 percent of SMI -- 4.75%
6.6(8) 47.01 to 48.00 percent of SMI -- 5.00%
6.7(9) 48.01 to 49.00 percent of SMI -- 5.25%
6.8(10) 49.01 to 50.00 percent of SMI -- 5.50%
6.9(11) 50.01 to 50.50 percent of SMI -- 5.75%
6.10(12) 50.51 to 51.00 percent of SMI -- 6.00%
6.11(13) 51.01 to 51.50 percent of SMI -- 6.25%
6.12(14) 51.51 to 52.00 percent of SMI -- 6.50%
6.13(15) 52.01 to 52.50 percent of SMI -- 6.75%
6.14(16) 52.51 to 53.00 percent of SMI -- 7.00%
6.15(17) 53.01 to 53.50 percent of SMI -- 7.25%
6.16(18) 53.51 to 54.00 percent of SMI -- 7.50%
6.17(19) 54.01 to 54.50 percent of SMI -- 7.75%
6.18(20) 54.51 to 55.00 percent of SMI -- 8.00%
6.19(21) 55.01 to 55.50 percent of SMI -- 8.30%
6.20(22) 55.51 to 56.00 percent of SMI -- 8.60%
6.21(23) 56.01 to 56.50 percent of SMI -- 8.90%
6.22(24) 56.51 to 57.00 percent of SMI -- 9.20%
6.23(25) 57.01 to 57.50 percent of SMI -- 9.50%
6.24(26) 57.51 to 58.00 percent of SMI -- 9.80%
6.25(27) 58.01 to 58.50 percent of SMI -- 10.10%
6.26(28) 58.51 to 59.00 percent of SMI -- 10.40%
6.27(29) 59.01 to 59.50 percent of SMI -- 10.70%
6.28(30) 59.51 to 60.00 percent of SMI -- 11.00%
6.29(31) 60.01 to 60.50 percent of SMI -- 11.30%
6.30(32) 60.51 to 61.00 percent of SMI -- 11.60%
6.31(33) 61.01 to 61.50 percent of SMI -- 11.90%
6.32(34) 61.51 to 62.00 percent of SMI -- 12.20%
6.33(35) 62.01 to 62.50 percent of SMI -- 12.50%
6.34(36) 62.51 to 63.00 percent of SMI -- 12.80%
6.35(37) 63.01 to 63.50 percent of SMI -- 13.10%
6.36(38) 63.51 to 64.00 percent of SMI -- 13.40%
7.1(39) 64.01 to 64.50 percent of SMI -- 13.70%
7.2(40) 64.51 to 65.00 percent of SMI -- 14.00%
7.3(41) 65.01 to 65.50 percent of SMI -- 14.30%
7.4(42) 65.51 to 66.00 percent of SMI -- 14.60%
7.5(43) 66.01 to 66.50 percent of SMI -- 14.90%
7.6(44) 66.51 to 67.00 percent of SMI -- 15.20%
7.7(45) 67.01 to 67.50 percent of SMI -- 15.50%
7.8(46) 67.51 to 68.00 percent of SMI -- 15.80%
7.9(47) 68.01 to 68.50 percent of SMI -- 16.10%
7.10(48) 68.51 to 69.00 percent of SMI -- 16.40%
7.11(49) 69.01 to 69.50 percent of SMI -- 16.70%
7.12(50) 69.51 to 70.00 percent of SMI -- 17.00%
7.13(51) 70.01 to 70.50 percent of SMI -- 17.30%
7.14(52) 70.51 to 71.00 percent of SMI -- 17.60%
7.15(53) 71.01 to 71.50 percent of SMI -- 17.90%
7.16(54) 71.51 to 72.00 percent of SMI -- 18.20%
7.17(55) 72.01 to 72.50 percent of SMI -- 18.50%
7.18(56) 72.51 to 73.00 percent of SMI -- 18.80%
7.19(57) 73.01 to 73.50 percent of SMI -- 19.10%
7.20(58) 73.51 to 74.00 percent of SMI -- 19.40%
7.21(59) 74.01 to 74.50 percent of SMI -- 19.70%
7.22(60) 74.51 to 75.00 percent of SMI -- 20.00%

7.23    Sec. 6. Minnesota Statutes 2006, section 256J.01, is amended by adding a subdivision
7.24to read:
7.25    Subd. 6. Legislative approval to move programs or activities. The commissioner
7.26shall not move programs or activities funded with MFIP or TANF maintenance of effort
7.27funds to other funding sources without legislative approval.

7.28    Sec. 7. Minnesota Statutes 2006, section 256J.02, subdivision 1, is amended to read:
7.29    Subdivision 1. Commissioner's authority to administer block grant funds. The
7.30commissioner of human services is authorized to receive, administer, and expend funds
7.31available under the TANF block grant authorized under title I of Public Law 104-193, the
7.32Personal Responsibility and Work Opportunity Reconciliation Act of 1996, and under
7.33Public Law 109-171, the Deficit Reduction Act of 2005.

7.34    Sec. 8. Minnesota Statutes 2006, section 256J.02, subdivision 4, is amended to read:
8.1    Subd. 4. Authority to transfer. Subject to limitations of title I of Public Law
8.2104-193, the Personal Responsibility and Work Opportunity Reconciliation Act of 1996,
8.3as amended, and under Public Law 109-171, the Deficit Reduction Act of 2005, the
8.4legislature may transfer money from the TANF block grant to the child care fund under
8.5chapter 119B, or the Title XX block grant.

8.6    Sec. 9. Minnesota Statutes 2006, section 256J.021, is amended to read:
8.7256J.021 SEPARATE STATE PROGRAM FOR USE OF STATE MONEY
8.8PROGRAMS.
8.9(a) Until October 1, 2006 2007, the commissioner of human services must treat
8.10MFIP expenditures made to or on behalf of any minor child under section 256J.02,
8.11subdivision 2
, clause (1), who is a resident of this state under section 256J.12, and who is
8.12part of a two-parent eligible household as expenditures under a separately funded state
8.13program and report those expenditures to the federal Department of Health and Human
8.14Services as separate state program expenditures under Code of Federal Regulations, title
8.1545, section 263.5 funded with state nonmaintenance of effort funds.
8.16(b) Beginning October 1, 2006 2007, and each year thereafter, the commissioner of
8.17human services must treat MFIP expenditures made to or on behalf of any minor child
8.18under section 256J.02, subdivision 2, clause (1), who is a resident of this state under
8.19section 256J.12, and who is part of a two-parent eligible household, as expenditures under
8.20a separately funded state program. These expenditures shall not count toward the state's
8.21maintenance of effort (MOE) requirements under the federal Temporary Assistance to
8.22Needy Families (TANF) program except if counting certain families would allow the
8.23commissioner to avoid a federal penalty. Families receiving assistance under this section
8.24must comply with all applicable requirements in this chapter.

8.25    Sec. 10. Minnesota Statutes 2006, section 256J.08, subdivision 65, is amended to read:
8.26    Subd. 65. Participant. (a) "Participant" means includes any of the following:
8.27(1) a person who is currently receiving cash assistance or the food portion available
8.28through MFIP. A person who fails to withdraw or access electronically any portion of the
8.29person's cash and food assistance payment by the end of the payment month, who makes a
8.30written request for closure before the first of a payment month and repays cash and food
8.31assistance electronically issued for that payment month within that payment month, or
8.32who returns any uncashed assistance check and food coupons and withdraws from the
8.33program is not a participant.;
8.34(2) a person who withdraws a cash or food assistance payment by electronic transfer
8.35or receives and cashes an MFIP assistance check or food coupons and is subsequently
9.1determined to be ineligible for assistance for that period of time is a participant, regardless
9.2whether that assistance is repaid. The term "participant" includes;
9.3(3) the caregiver relative and the minor child whose needs are included in the
9.4assistance payment.;
9.5(4) a person in an assistance unit who does not receive a cash and food assistance
9.6payment because the case has been suspended from MFIP is a participant.;
9.7(5) a person who receives cash payments under the diversionary work program
9.8under section 256J.95 is a participant.; and
9.9(6) a person who receives cash payments under the family stabilization services
9.10program under section 256J.575 is a participant.
9.11(b) "Participant" does not include a person who fails to withdraw or access
9.12electronically any portion of the person's cash and food assistance payment by the end of
9.13the payment month, who makes a written request for closure before the first of a payment
9.14month and repays cash and food assistance electronically issued for that payment month
9.15within that payment month, or who returns any uncashed assistance check and food
9.16coupons and withdraws from the program.

9.17    Sec. 11. Minnesota Statutes 2006, section 256J.20, subdivision 3, is amended to read:
9.18    Subd. 3. Other property limitations. To be eligible for MFIP, the equity value of
9.19all nonexcluded real and personal property of the assistance unit must not exceed $2,000
9.20for applicants and $5,000 for ongoing participants. The value of assets in clauses (1) to
9.21(19) must be excluded when determining the equity value of real and personal property:
9.22(1) a licensed vehicle up to a loan value of less than or equal to $7,500. The county
9.23agency shall apply any excess loan value as if it were equity value to the asset limit
9.24described in this section. If the assistance unit owns more than one licensed vehicle,
9.25the county agency shall determine the vehicle with the highest loan value and count
9.26only the loan value over $7,500, excluding: (i) the value of one vehicle per physically
9.27disabled person when the vehicle is needed to transport the disabled unit member; this
9.28exclusion does not apply to mentally disabled people; (ii) the value of special equipment
9.29for a disabled member of the assistance unit; and (iii) also exclude any vehicle used for
9.30long-distance travel, other than daily commuting, for the employment of a unit member.
9.31The county agency shall count the loan value of all other vehicles and apply this
9.32amount as if it were equity value to the asset limit described in this section. To establish the
9.33loan value of vehicles, a county agency must use the N.A.D.A. Official Used Car Guide,
9.34Midwest Edition, for newer model cars. When a vehicle is not listed in the guidebook,
9.35or when the applicant or participant disputes the loan value listed in the guidebook as
9.36unreasonable given the condition of the particular vehicle, the county agency may require
10.1the applicant or participant document the loan value by securing a written statement from
10.2a motor vehicle dealer licensed under section 168.27, stating the amount that the dealer
10.3would pay to purchase the vehicle. The county agency shall reimburse the applicant or
10.4participant for the cost of a written statement that documents a lower loan value;
10.5(2) the value of life insurance policies for members of the assistance unit;
10.6(3) one burial plot per member of an assistance unit;
10.7(4) the value of personal property needed to produce earned income, including
10.8tools, implements, farm animals, inventory, business loans, business checking and
10.9savings accounts used at least annually and used exclusively for the operation of a
10.10self-employment business, and any motor vehicles if at least 50 percent of the vehicle's use
10.11is to produce income and if the vehicles are essential for the self-employment business;
10.12(5) the value of personal property not otherwise specified which is commonly
10.13used by household members in day-to-day living such as clothing, necessary household
10.14furniture, equipment, and other basic maintenance items essential for daily living;
10.15(6) the value of real and personal property owned by a recipient of Supplemental
10.16Security Income or Minnesota supplemental aid;
10.17(7) the value of corrective payments, but only for the month in which the payment
10.18is received and for the following month;
10.19(8) a mobile home or other vehicle used by an applicant or participant as the
10.20applicant's or participant's home;
10.21(9) money in a separate escrow account that is needed to pay real estate taxes or
10.22insurance and that is used for this purpose;
10.23(10) money held in escrow to cover employee FICA, employee tax withholding,
10.24sales tax withholding, employee worker compensation, business insurance, property rental,
10.25property taxes, and other costs that are paid at least annually, but less often than monthly;
10.26(11) monthly assistance payments for the current month's or short-term emergency
10.27needs under section 256J.626, subdivision 2;
10.28(12) the value of school loans, grants, or scholarships for the period they are
10.29intended to cover;
10.30(13) payments listed in section 256J.21, subdivision 2, clause (9), which are held
10.31in escrow for a period not to exceed three months to replace or repair personal or real
10.32property;
10.33(14) income received in a budget month through the end of the payment month;
10.34(15) savings from earned income of a minor child or a minor parent that are set aside
10.35in a separate account designated specifically for future education or employment costs;
11.1(16) the federal earned income credit, Minnesota working family credit, state and
11.2federal income tax refunds, state homeowners and renters credits under chapter 290A,
11.3property tax rebates and other federal or state tax rebates in the month received and the
11.4following month;
11.5(17) payments excluded under federal law as long as those payments are held in a
11.6separate account from any nonexcluded funds;
11.7(18) the assets of children ineligible to receive MFIP benefits because foster care or
11.8adoption assistance payments are made on their behalf; and
11.9(19) the assets of persons whose income is excluded under section 256J.21,
11.10subdivision 2
, clause (43).

11.11    Sec. 12. Minnesota Statutes 2006, section 256J.21, subdivision 2, is amended to read:
11.12    Subd. 2. Income exclusions. The following must be excluded in determining a
11.13family's available income:
11.14(1) payments for basic care, difficulty of care, and clothing allowances received for
11.15providing family foster care to children or adults under Minnesota Rules, parts 9555.5050
11.16to 9555.6265, 9560.0521, and 9560.0650 to 9560.0655, and payments received and used
11.17for care and maintenance of a third-party beneficiary who is not a household member;
11.18(2) reimbursements for employment training received through the Workforce
11.19Investment Act of 1998, United States Code, title 20, chapter 73, section 9201;
11.20(3) reimbursement for out-of-pocket expenses incurred while performing volunteer
11.21services, jury duty, employment, or informal carpooling arrangements directly related to
11.22employment;
11.23(4) all educational assistance, except the county agency must count graduate student
11.24teaching assistantships, fellowships, and other similar paid work as earned income and,
11.25after allowing deductions for any unmet and necessary educational expenses, shall
11.26count scholarships or grants awarded to graduate students that do not require teaching
11.27or research as unearned income;
11.28(5) loans, regardless of purpose, from public or private lending institutions,
11.29governmental lending institutions, or governmental agencies;
11.30(6) loans from private individuals, regardless of purpose, provided an applicant or
11.31participant documents that the lender expects repayment;
11.32(7)(i) state income tax refunds; and
11.33(ii) federal income tax refunds;
11.34(8)(i) federal earned income credits;
11.35(ii) Minnesota working family credits;
11.36(iii) state homeowners and renters credits under chapter 290A; and
12.1(iv) federal or state tax rebates;
12.2(9) funds received for reimbursement, replacement, or rebate of personal or real
12.3property when these payments are made by public agencies, awarded by a court, solicited
12.4through public appeal, or made as a grant by a federal agency, state or local government,
12.5or disaster assistance organizations, subsequent to a presidential declaration of disaster;
12.6(10) the portion of an insurance settlement that is used to pay medical, funeral, and
12.7burial expenses, or to repair or replace insured property;
12.8(11) reimbursements for medical expenses that cannot be paid by medical assistance;
12.9(12) payments by a vocational rehabilitation program administered by the state
12.10under chapter 268A, except those payments that are for current living expenses;
12.11(13) in-kind income, including any payments directly made by a third party to a
12.12provider of goods and services;
12.13(14) assistance payments to correct underpayments, but only for the month in which
12.14the payment is received;
12.15(15) payments for short-term emergency needs under section 256J.626, subdivision
12.162
;
12.17(16) funeral and cemetery payments as provided by section 256.935;
12.18(17) nonrecurring cash gifts of $30 or less, not exceeding $30 per participant in
12.19a calendar month;
12.20(18) any form of energy assistance payment made through Public Law 97-35,
12.21Low-Income Home Energy Assistance Act of 1981, payments made directly to energy
12.22providers by other public and private agencies, and any form of credit or rebate payment
12.23issued by energy providers;
12.24(19) Supplemental Security Income (SSI), including retroactive SSI payments and
12.25other income of an SSI recipient, except as described in section 256J.37, subdivision 3b;
12.26(20) Minnesota supplemental aid, including retroactive payments;
12.27(21) proceeds from the sale of real or personal property;
12.28(22) state adoption assistance payments under section 259.67, and up to an equal
12.29amount of county adoption assistance payments;
12.30(23) state-funded family subsidy program payments made under section 252.32
12.31to help families care for children with developmental disabilities, consumer support
12.32grant funds under section 256.476, and resources and services for a disabled household
12.33member under one of the home and community-based waiver services programs under
12.34chapter 256B;
12.35(24) interest payments and dividends from property that is not excluded from and
12.36that does not exceed the asset limit;
13.1(25) rent rebates;
13.2(26) income earned by a minor caregiver, minor child through age 6, or a minor
13.3child who is at least a half-time student in an approved elementary or secondary education
13.4program;
13.5(27) income earned by a caregiver under age 20 who is at least a half-time student in
13.6an approved elementary or secondary education program;
13.7(28) MFIP child care payments under section 119B.05;
13.8(29) all other payments made through MFIP to support a caregiver's pursuit of
13.9greater economic stability;
13.10(30) income a participant receives related to shared living expenses;
13.11(31) reverse mortgages;
13.12(32) benefits provided by the Child Nutrition Act of 1966, United States Code, title
13.1342, chapter 13A, sections 1771 to 1790;
13.14(33) benefits provided by the women, infants, and children (WIC) nutrition program,
13.15United States Code, title 42, chapter 13A, section 1786;
13.16(34) benefits from the National School Lunch Act, United States Code, title 42,
13.17chapter 13, sections 1751 to 1769e;
13.18(35) relocation assistance for displaced persons under the Uniform Relocation
13.19Assistance and Real Property Acquisition Policies Act of 1970, United States Code, title
13.2042, chapter 61, subchapter II, section 4636, or the National Housing Act, United States
13.21Code, title 12, chapter 13, sections 1701 to 1750jj;
13.22(36) benefits from the Trade Act of 1974, United States Code, title 19, chapter
13.2312, part 2, sections 2271 to 2322;
13.24(37) war reparations payments to Japanese Americans and Aleuts under United
13.25States Code, title 50, sections 1989 to 1989d;
13.26(38) payments to veterans or their dependents as a result of legal settlements
13.27regarding Agent Orange or other chemical exposure under Public Law 101-239, section
13.2810405, paragraph (a)(2)(E);
13.29(39) income that is otherwise specifically excluded from MFIP consideration in
13.30federal law, state law, or federal regulation;
13.31(40) security and utility deposit refunds;
13.32(41) American Indian tribal land settlements excluded under Public Laws 98-123,
13.3398-124, and 99-377 to the Mississippi Band Chippewa Indians of White Earth, Leech
13.34Lake, and Mille Lacs reservations and payments to members of the White Earth Band,
13.35under United States Code, title 25, chapter 9, section 331, and chapter 16, section 1407;
14.1(42) all income of the minor parent's parents and stepparents when determining the
14.2grant for the minor parent in households that include a minor parent living with parents or
14.3stepparents on MFIP with other children;
14.4(43) income of the minor parent's parents and stepparents equal to 200 percent of the
14.5federal poverty guideline for a family size not including the minor parent and the minor
14.6parent's child in households that include a minor parent living with parents or stepparents
14.7not on MFIP when determining the grant for the minor parent. The remainder of income is
14.8deemed as specified in section 256J.37, subdivision 1b;
14.9(44) payments made to children eligible for relative custody assistance under section
14.10257.85 ;
14.11(45) vendor payments for goods and services made on behalf of a client unless the
14.12client has the option of receiving the payment in cash; and
14.13(46) the principal portion of a contract for deed payment.; and
14.14(47) cash payments to individuals enrolled for full-time service as a volunteer under
14.15AmeriCorps programs including AmeriCorps VISTA, AmeriCorps State, AmeriCorps
14.16National, and AmeriCorps NCCC.

14.17    Sec. 13. Minnesota Statutes 2006, section 256J.24, subdivision 5, is amended to read:
14.18    Subd. 5. MFIP transitional standard. (a) The MFIP transitional standard is based
14.19on the number of persons in the assistance unit eligible for both food and cash assistance
14.20unless the restrictions in subdivision 6 on the birth of a child apply. The following table
14.21represents the transitional standards effective October 1, 2004.
14.22
14.23
Number of Eligible
People
Transitional
Standard
Cash Portion
Food Portion
14.24
1
$379:
$250
$129
14.25
2
$675:
$437
$238
14.26
3
$876:
$532
$344
14.27
4
$1,036:
$621
$415
14.28
5
$1,180:
$697
$483
14.29
6
$1,350:
$773
$577
14.30
7
$1,472:
$850
$622
14.31
8
$1,623:
$916
$707
14.32
9
$1,772:
$980
$792
14.33
10
$1,915:
$1,035
$880
14.34
over 10
add $142:
$53
$89
14.35
per additional member.
14.36The commissioner shall annually publish in the State Register the transitional
14.37standard for an assistance unit sizes 1 to 10 including a breakdown of the cash and food
14.38portions.
15.1(b) The commissioner shall increase the existing transitional standard by ten percent
15.2effective July 1, 2007, to be distributed in the cash portion of the grant.

15.3    Sec. 14. Minnesota Statutes 2006, section 256J.24, subdivision 10, is amended to read:
15.4    Subd. 10. MFIP exit level. The commissioner shall adjust the MFIP earned
15.5income disregard to ensure that most participants do not lose eligibility for MFIP until
15.6their income reaches at least 115 .... percent of the federal poverty guidelines in effect in
15.7October of each fiscal year. The adjustment to the disregard shall be based on a household
15.8size of three, and the resulting earned income disregard percentage must be applied to all
15.9household sizes. The adjustment under this subdivision must be implemented at the same
15.10time as the October food stamp or food support cost-of-living adjustment is reflected in
15.11the food portion of MFIP transitional standard as required under subdivision 5a.

15.12    Sec. 15. Minnesota Statutes 2006, section 256J.30, subdivision 5, is amended to read:
15.13    Subd. 5. Monthly MFIP household reports. Each assistance unit with a member
15.14who has earned income or a recent work history, and each assistance unit that has income
15.15deemed to it from a financially responsible person, must complete a monthly an MFIP
15.16household report form every six months. "Recent work history" means the individual
15.17received earned income in the report month or any of the previous three calendar months
15.18even if the earnings are excluded. To be complete, the MFIP household report form must
15.19be signed and dated by the caregivers no earlier than the last day of the reporting period.
15.20All questions required to determine assistance payment eligibility must be answered, and
15.21documentation of earned income must be included.

15.22    Sec. 16. Minnesota Statutes 2006, section 256J.425, subdivision 3, is amended to read:
15.23    Subd. 3. Hard-to-employ participants. An assistance unit subject to the time
15.24limit in section 256J.42, subdivision 1, is eligible to receive months of assistance under
15.25a hardship extension if the participant who reached the time limit belongs to any of the
15.26following groups:
15.27(1) a person who is diagnosed by a licensed physician, psychological practitioner,
15.28or other qualified professional, as developmentally disabled or mentally ill, and that
15.29condition prevents the person from obtaining or retaining unsubsidized employment;
15.30(2) a person who:
15.31(i) has been assessed by a vocational specialist or the county agency to be
15.32unemployable for purposes of this subdivision; or
15.33(ii) has an IQ below 80 who has been assessed by a vocational specialist or a county
15.34agency to be employable, but not at a level that makes the participant eligible for an
15.35extension under subdivision 4. The determination of IQ level must be made by a qualified
16.1professional. In the case of a non-English-speaking person: (A) the determination must
16.2be made by a qualified professional with experience conducting culturally appropriate
16.3assessments, whenever possible; (B) the county may accept reports that identify an
16.4IQ range as opposed to a specific score; (C) these reports must include a statement of
16.5confidence in the results;
16.6(3) a person who is determined by a qualified professional to be learning disabled,
16.7and the disability severely limits the person's ability to obtain, perform, or maintain
16.8suitable employment. For purposes of the initial approval of a learning disability
16.9extension, the determination must have been made or confirmed within the previous 12
16.10months. In the case of a non-English-speaking person: (i) the determination must be made
16.11by a qualified professional with experience conducting culturally appropriate assessments,
16.12whenever possible; and (ii) these reports must include a statement of confidence in the
16.13results. If a rehabilitation plan for a participant extended as learning disabled is developed
16.14or approved by the county agency, the plan must be incorporated into the employment
16.15plan. However, a rehabilitation plan does not replace the requirement to develop and
16.16comply with an employment plan under section 256J.521; or
16.17(4) a person who has been granted a family violence waiver, and who is complying
16.18with an employment plan under section 256J.521, subdivision 3; or
16.19(5) a participant who falls under section 256J.561, subdivision 2, paragraph (d), who
16.20is complying with an employment plan tailored to recognize the special circumstances of
16.21the caregivers and family, including limitations due to illness or disability, and caregiving
16.22needs.

16.23    Sec. 17. Minnesota Statutes 2006, section 256J.425, subdivision 4, is amended to read:
16.24    Subd. 4. Employed participants. (a) An assistance unit subject to the time limit
16.25under section 256J.42, subdivision 1, is eligible to receive assistance under a hardship
16.26extension if the participant who reached the time limit belongs to:
16.27(1) a one-parent assistance unit in which the participant is participating in work
16.28activities for at least 30 hours per week, of which an average of at least 25 hours per week
16.29every month are spent participating in employment;
16.30(2) a two-parent assistance unit in which the participants are participating in work
16.31activities for at least 55 hours per week, of which an average of at least 45 hours per week
16.32every month are spent participating in employment; or
16.33(3) an assistance unit in which a participant is participating in employment for fewer
16.34hours than those specified in clause (1) or (2), and the participant submits verification from
16.35a qualified professional, in a form acceptable to the commissioner, stating that the number
16.36of hours the participant may work is limited due to illness or disability, as long as the
17.1participant is participating in employment for at least the number of hours specified by the
17.2qualified professional. The participant must be following the treatment recommendations
17.3of the qualified professional providing the verification. The commissioner shall develop a
17.4form to be completed and signed by the qualified professional, documenting the diagnosis
17.5and any additional information necessary to document the functional limitations of the
17.6participant that limit work hours. If the participant is part of a two-parent assistance unit,
17.7the other parent must be treated as a one-parent assistance unit for purposes of meeting the
17.8work requirements under this subdivision.
17.9(b) For purposes of this section, employment means:
17.10(1) unsubsidized employment under section 256J.49, subdivision 13, clause (1);
17.11(2) subsidized employment under section 256J.49, subdivision 13, clause (2);
17.12(3) on-the-job training under section 256J.49, subdivision 13, clause (2);
17.13(4) an apprenticeship under section 256J.49, subdivision 13, clause (1);
17.14(5) supported work under section 256J.49, subdivision 13, clause (2);
17.15(6) a combination of clauses (1) to (5); or
17.16(7) child care under section 256J.49, subdivision 13, clause (7), if it is in combination
17.17with paid employment.
17.18(c) If a participant is complying with a child protection plan under chapter 260C,
17.19the number of hours required under the child protection plan count toward the number
17.20of hours required under this subdivision.
17.21(d) (c) The county shall provide the opportunity for subsidized employment to
17.22participants needing that type of employment within available appropriations.
17.23(e) (d) To be eligible for a hardship extension for employed participants under this
17.24subdivision, a participant must be in compliance for at least ten out of the 12 months
17.25the participant received MFIP immediately preceding the participant's 61st month on
17.26assistance. If ten or fewer months of eligibility for TANF assistance remain at the time the
17.27participant from another state applies for assistance, the participant must be in compliance
17.28every month.
17.29(f) (e) The employment plan developed under section 256J.521, subdivision 2, for
17.30participants under this subdivision must contain at least the minimum number of hours
17.31specified in paragraph (a) for the purpose of meeting the requirements for an extension
17.32under this subdivision. The job counselor and the participant must sign the employment
17.33plan to indicate agreement between the job counselor and the participant on the contents
17.34of the plan.
17.35(g) (f) Participants who fail to meet the requirements in paragraph (a), without
17.36good cause under section 256J.57, shall be sanctioned or permanently disqualified under
18.1subdivision 6. Good cause may only be granted for that portion of the month for which
18.2the good cause reason applies. Participants must meet all remaining requirements in the
18.3approved employment plan or be subject to sanction or permanent disqualification.
18.4(h) (g) If the noncompliance with an employment plan is due to the involuntary loss
18.5of employment, the participant is exempt from the hourly employment requirement under
18.6this subdivision for one month. Participants must meet all remaining requirements in the
18.7approved employment plan or be subject to sanction or permanent disqualification. This
18.8exemption is available to each participant two times in a 12-month period.

18.9    Sec. 18. Minnesota Statutes 2006, section 256J.49, subdivision 13, is amended to read:
18.10    Subd. 13. Work activity. "Work activity" means any activity in a participant's
18.11approved employment plan that leads to employment. For purposes of the MFIP program,
18.12this includes activities that meet the definition of work activity under the participation
18.13requirements of TANF. Work activity includes:
18.14(1) unsubsidized employment, including work study and paid apprenticeships or
18.15internships;
18.16(2) subsidized private sector or public sector employment, including grant diversion
18.17as specified in section 256J.69, on-the-job training as specified in section 256J.66,
18.18the self-employment investment demonstration program (SEID) as specified in section
18.19256J.65 , paid work experience, and supported work when a wage subsidy is provided;
18.20(3) unpaid work experience, including community service, volunteer work,
18.21the community work experience program as specified in section 256J.67, unpaid
18.22apprenticeships or internships, and supported work when a wage subsidy is not provided.
18.23Unpaid work performed in return for cash assistance is prohibited and does not count
18.24as a work activity, unless the participant voluntarily agrees, in writing, to engage in
18.25unpaid work in return for cash assistance. The participant may terminate the unpaid
18.26work arrangement, in writing, at any time;
18.27(4) job search including job readiness assistance, job clubs, job placement,
18.28job-related counseling, and job retention services;
18.29(5) job readiness education, including English as a second language (ESL) or
18.30functional work literacy classes as limited by the provisions of section 256J.531,
18.31subdivision 2
, general educational development (GED) course work, high school
18.32completion, and adult basic education as limited by the provisions of section 256J.531,
18.33subdivision 1
;
18.34(6) job skills training directly related to employment, including education and
18.35training that can reasonably be expected to lead to employment, as limited by the
18.36provisions of section 256J.53;
19.1(7) providing child care services to a participant who is working in a community
19.2service program;
19.3(8) activities included in the employment plan that is developed under section
19.4256J.521, subdivision 3 ; and
19.5(9) preemployment activities including chemical and mental health assessments,
19.6treatment, and services; learning disabilities services; child protective services; family
19.7stabilization services; or other programs designed to enhance employability.

19.8    Sec. 19. Minnesota Statutes 2006, section 256J.521, subdivision 1, is amended to read:
19.9    Subdivision 1. Assessments. (a) For purposes of MFIP employment services,
19.10assessment is a continuing process of gathering information related to employability
19.11for the purpose of identifying both participant's strengths and strategies for coping with
19.12issues that interfere with employment. The job counselor must use information from the
19.13assessment process to develop and update the employment plan under subdivision 2 or 3,
19.14as appropriate, and to determine whether the participant qualifies for a family violence
19.15waiver including an employment plan under subdivision 3, and to determine whether the
19.16participant should be referred to the family stabilization services program under section
19.17256J.575.
19.18(b) The scope of assessment must cover at least the following areas:
19.19(1) basic information about the participant's ability to obtain and retain employment,
19.20including: a review of the participant's education level; interests, skills, and abilities; prior
19.21employment or work experience; transferable work skills; child care and transportation
19.22needs;
19.23(2) identification of personal and family circumstances that impact the participant's
19.24ability to obtain and retain employment, including: any special needs of the children, the
19.25level of English proficiency, family violence issues, and any involvement with social
19.26services or the legal system;
19.27(3) the results of a mental and chemical health screening tool designed by the
19.28commissioner and results of the brief screening tool for special learning needs. Screening
19.29tools for mental and chemical health and special learning needs must be approved by the
19.30commissioner and may only be administered by job counselors or county staff trained in
19.31using such screening tools. The commissioner shall work with county agencies to develop
19.32protocols for referrals and follow-up actions after screens are administered to participants,
19.33including guidance on how employment plans may be modified based upon outcomes
19.34of certain screens. Participants must be told of the purpose of the screens and how the
19.35information will be used to assist the participant in identifying and overcoming barriers to
19.36employment. Screening for mental and chemical health and special learning needs must
20.1be completed by participants who are unable to find suitable employment after six weeks
20.2of job search under subdivision 2, paragraph (b), and participants who are determined to
20.3have barriers to employment under subdivision 2, paragraph (d). Failure to complete the
20.4screens will result in sanction under section 256J.46; and
20.5(4) a comprehensive review of participation and progress for participants who have
20.6received MFIP assistance and have not worked in unsubsidized employment during the
20.7past 12 months. The purpose of the review is to determine the need for additional services
20.8and supports, including placement in subsidized employment or unpaid work experience
20.9under section 256J.49, subdivision 13, or referral to the family stabilization services
20.10program under section 256J.575
.
20.11(c) Information gathered during a caregiver's participation in the diversionary work
20.12program under section 256J.95 must be incorporated into the assessment process.
20.13(d) The job counselor may require the participant to complete a professional chemical
20.14use assessment to be performed according to the rules adopted under section 254A.03,
20.15subdivision 3
, including provisions in the administrative rules which recognize the cultural
20.16background of the participant, or a professional psychological assessment as a component
20.17of the assessment process, when the job counselor has a reasonable belief, based on
20.18objective evidence, that a participant's ability to obtain and retain suitable employment
20.19is impaired by a medical condition. The job counselor may assist the participant with
20.20arranging services, including child care assistance and transportation, necessary to meet
20.21needs identified by the assessment. Data gathered as part of a professional assessment
20.22must be classified and disclosed according to the provisions in section 13.46.

20.23    Sec. 20. Minnesota Statutes 2006, section 256J.521, subdivision 2, is amended to read:
20.24    Subd. 2. Employment plan; contents. (a) Based on the assessment under
20.25subdivision 1, the job counselor and the participant must develop an employment plan
20.26that includes participation in activities and hours that meet the requirements of section
20.27256J.55, subdivision 1 . The purpose of the employment plan is to identify for each
20.28participant the most direct path to unsubsidized employment and any subsequent steps that
20.29support long-term economic stability. The employment plan should be developed using
20.30the highest level of activity appropriate for the participant. Activities must be chosen from
20.31clauses (1) to (6), which are listed in order of preference. Notwithstanding this order of
20.32preference for activities, priority must be given for activities related to a family violence
20.33waiver when developing the employment plan. The employment plan must also list the
20.34specific steps the participant will take to obtain employment, including steps necessary
20.35for the participant to progress from one level of activity to another, and a timetable for
20.36completion of each step. Levels of activity include:
21.1(1) unsubsidized employment;
21.2(2) job search;
21.3(3) subsidized employment or unpaid work experience;
21.4(4) unsubsidized employment and job readiness education or job skills training;
21.5(5) unsubsidized employment or unpaid work experience and activities related to
21.6a family violence waiver or preemployment needs; and
21.7(6) activities related to a family violence waiver or preemployment needs.
21.8(b) Participants who are determined to possess sufficient skills such that the
21.9participant is likely to succeed in obtaining unsubsidized employment must job search at
21.10least 30 hours per week for up to six weeks and accept any offer of suitable employment.
21.11The remaining hours necessary to meet the requirements of section 256J.55, subdivision
21.121
, may be met through participation in other work activities under section 256J.49,
21.13subdivision 13
. The participant's employment plan must specify, at a minimum: (1)
21.14whether the job search is supervised or unsupervised; (2) support services that will
21.15be provided; and (3) how frequently the participant must report to the job counselor.
21.16Participants who are unable to find suitable employment after six weeks must meet
21.17with the job counselor to determine whether other activities in paragraph (a) should be
21.18incorporated into the employment plan. Job search activities which are continued after six
21.19weeks must be structured and supervised.
21.20(c) Beginning July 1, 2004, activities and hourly requirements in the employment
21.21plan may be adjusted as necessary to accommodate the personal and family circumstances
21.22of participants identified under section 256J.561, subdivision 2, paragraph (d). Participants
21.23who no longer meet the provisions of section 256J.561, subdivision 2, paragraph (d),
21.24must meet with the job counselor within ten days of the determination to revise the
21.25employment plan.
21.26(d) Participants who are determined to have barriers to obtaining or retaining
21.27employment that will not be overcome during six weeks of job search under paragraph (b)
21.28must work with the job counselor to develop an employment plan that addresses those
21.29barriers by incorporating appropriate activities from paragraph (a), clauses (1) to (6).
21.30The employment plan must include enough hours to meet the participation requirements
21.31in section 256J.55, subdivision 1, unless a compelling reason to require fewer hours
21.32is noted in the participant's file.
21.33(e) The job counselor and the participant must sign the employment plan to indicate
21.34agreement on the contents. Failure to develop or comply with activities in the plan, or
21.35voluntarily quitting suitable employment without good cause, will result in the imposition
21.36of a sanction under section 256J.46.
22.1(f) Employment plans must be reviewed at least every three months to determine
22.2whether activities and hourly requirements should be revised. The job counselor is
22.3encouraged to allow participants who are participating in at least 20 hours of work
22.4activities to also participate in employment and training activities in order to meet the
22.5federal hourly participation rates.

22.6    Sec. 21. Minnesota Statutes 2006, section 256J.521, is amended by adding a
22.7subdivision to read:
22.8    Subd. 6. Employment plan; nonmaintenance of effort; single caregivers. (a)
22.9When a single caregiver is moved to the nonmaintenance of effort state-funded program
22.10under section 256J.021, paragraphs (c) and (d), the single caregiver shall develop or revise
22.11the employment plan as specified in this subdivision with a job counselor or county. The
22.12plan must address issues interfering with employment, including physical and mental
22.13health, substance use, and social service issues of the caregiver and their family. Job
22.14search and employment must also be included in the plan to the extent possible.
22.15(b) Counties must coordinate services by ensuring that all workers involved with
22.16the family communicate on a regular basis, and that expectations for the family across
22.17service areas lead to common goals.
22.18(c) Activities and hourly requirements in the employment plan may be adjusted as
22.19necessary to accommodate the personal and family circumstances of the participant.
22.20Participants who no longer meet the criteria for the nonmaintenance of effort state-funded
22.21program shall meet with the job counselor or county within ten days of the determination
22.22to revise the employment plan.

22.23    Sec. 22. Minnesota Statutes 2006, section 256J.53, subdivision 2, is amended to read:
22.24    Subd. 2. Approval of postsecondary education or training. (a) In order for a
22.25postsecondary education or training program to be an approved activity in an employment
22.26plan, the participant must be working in unsubsidized employment at least 20 hours per
22.27week.
22.28(b) Participants seeking approval of a postsecondary education or training plan
22.29must provide documentation that:
22.30(1) the employment goal can only be met with the additional education or training;
22.31(2) there are suitable employment opportunities that require the specific education or
22.32training in the area in which the participant resides or is willing to reside;
22.33(3) the education or training will result in significantly higher wages for the
22.34participant than the participant could earn without the education or training;
22.35(4) the participant can meet the requirements for admission into the program; and
23.1(5) there is a reasonable expectation that the participant will complete the training
23.2program based on such factors as the participant's MFIP assessment, previous education,
23.3training, and work history; current motivation; and changes in previous circumstances.
23.4(c) The hourly unsubsidized employment requirement does not apply for intensive
23.5education or training programs lasting 12 weeks or less when full-time attendance is
23.6required.
23.7(d) (b) Participants with an approved employment plan in place on July 1, 2003,
23.8which includes more than 12 months of postsecondary education or training shall be
23.9allowed to complete that plan provided that hourly requirements in section 256J.55,
23.10subdivision 1
, and conditions specified in paragraph (b) (a), and subdivisions 3 and 5 are
23.11met. A participant whose case is subsequently closed for three months or less for reasons
23.12other than noncompliance with program requirements and who returns to MFIP shall
23.13be allowed to complete that plan provided that hourly requirements in section 256J.55,
23.14subdivision 1
, and conditions specified in paragraph (b) (a) and subdivisions 3 and 5 are
23.15met.

23.16    Sec. 23. Minnesota Statutes 2006, section 256J.531, is amended to read:
23.17256J.531 BASIC EDUCATION; ENGLISH AS A SECOND LANGUAGE.
23.18    Subdivision 1. Approval of adult basic education. With the exception of classes
23.19related to obtaining a general educational development credential (GED), a participant
23.20must have reading or mathematics proficiency below a ninth grade level in order for adult
23.21basic education classes to be an approved work activity. The employment plan must also
23.22specify that the participant fulfill no more than one-half of the participation requirements
23.23in section 256J.55, subdivision 1, through attending adult basic education or general
23.24educational development classes.
23.25    Subd. 2. Approval of English as a second language. In order for English as a
23.26second language (ESL) classes to be an approved work activity in an employment plan, a
23.27participant must be below a spoken language proficiency level of SPL6 or its equivalent,
23.28as measured by a nationally recognized test. In approving ESL as a work activity, the job
23.29counselor must give preference to enrollment in a functional work literacy program,
23.30if one is available, over a regular ESL program. A participant may not be approved
23.31for more than a combined total of 24 months of ESL classes while participating in the
23.32diversionary work program and the employment and training services component of
23.33MFIP. The employment plan must also specify that the participant fulfill no more than
23.34one-half of the participation requirements in section 256J.55, subdivision 1, through
23.35attending ESL classes. For participants enrolled in functional work literacy classes, no
24.1more than two-thirds of the participation requirements in section 256J.55, subdivision 1,
24.2may be met through attending functional work literacy classes.
24.3EFFECTIVE DATE.This section is effective October 1, 2007.

24.4    Sec. 24. Minnesota Statutes 2006, section 256J.55, subdivision 1, is amended to read:
24.5    Subdivision 1. Participation requirements. (a) All caregivers must participate
24.6in employment services under sections 256J.515 to 256J.57 concurrent with receipt of
24.7MFIP assistance.
24.8(b) Until July 1, 2004, participants who meet the requirements of section 256J.56 are
24.9exempt from participation requirements.
24.10(c) Participants under paragraph (a) must develop and comply with an employment
24.11plan under section 256J.521 or section 256J.54 in the case of a participant under the age of
24.1220 who has not obtained a high school diploma or its equivalent.
24.13(d) With the exception of participants under the age of 20 who must meet the
24.14education requirements of section 256J.54, all participants must meet the hourly
24.15participation requirements of TANF or the hourly requirements listed in clauses (1) to
24.16(3), whichever is higher.
24.17(1) In single-parent families with no children under six years of age, the job
24.18counselor and the caregiver must develop an employment plan that includes 30 to 35
24.19hours per week of work activities.
24.20(2) In single-parent families with a child under six years of age, the job counselor
24.21and the caregiver must develop an employment plan that includes 20 to 35 hours per
24.22week of work activities.
24.23(3) In two-parent families, the job counselor and the caregivers must develop
24.24employment plans which result in a combined total of at least 55 hours per week of work
24.25activities.
24.26(e) Failure to participate in employment services, including the requirement to
24.27develop and comply with an employment plan, including hourly requirements, without
24.28good cause under section 256J.57, shall result in the imposition of a sanction under section
24.29256J.46 .

24.30    Sec. 25. [256J.575] FAMILY STABILIZATION SERVICES PROGRAM.
24.31    Subdivision 1. Purpose. (a) The family stabilization services program is
24.32Minnesota's cash assistance program to serve families who are not making significant
24.33progress within the Minnesota family investment program (MFIP) due to a variety of
24.34barriers to employment.
25.1(b) The goal of this program is to stabilize and improve the lives of families at risk
25.2of long-term welfare dependency or family instability due to employment barriers such
25.3as physical disability, mental disability, age, or providing care for a disabled household
25.4member. This program provides services to promote and support families to achieve the
25.5greatest possible degree of self-sufficiency.
25.6    Subd. 2. Definitions. The terms used in this section have the meanings given them
25.7in paragraphs (a) to (d).
25.8(a) "Family stabilization services program" means the program established under
25.9this section.
25.10(b) "Case management" means the services provided by or through the county agency
25.11to participating families, including assessment, information, referrals, and assistance in the
25.12preparation and implementation of a family stabilization plan under subdivision 5.
25.13(c) "Family stabilization plan" means a plan developed by a case manager and
25.14the participant, which identifies the participant's most appropriate path to unsubsidized
25.15employment, family stability, and barrier reduction, taking into account the family's
25.16circumstances.
25.17(d) "Family stabilization services" means programs, activities, and services in this
25.18section that provide participants and their family members with assistance regarding,
25.19but not limited to:
25.20(1) obtaining and retaining unsubsidized employment;
25.21(2) family stability;
25.22(3) economic stability; and
25.23(4) barrier reduction.
25.24The goal of the program is to achieve the greatest degree of economic self-sufficiency
25.25and family well-being possible for the family under the circumstances.
25.26    Subd. 3. Eligibility. (a) The following MFIP or diversionary work program (DWP)
25.27participants are eligible for the program under this section:
25.28(1) a participant identified under section 256J.561, subdivision 2, paragraph (d), who
25.29has or is eligible for an employment plan developed under section 256J.521, subdivision
25.302, paragraph (c);
25.31(2) a participant identified under section 256J.95, subdivision 12, paragraph (b), as
25.32unlikely to benefit from the diversionary work program;
25.33(3) a participant who meets the requirements for or has been granted a hardship
25.34extension under section 256J.425, subdivision 2 or 3;
25.35(4) a participant who is applying for supplemental security income or Social Security
25.36disability insurance; and
26.1(5) a participant who is a noncitizen who has been in the state for six or fewer months.
26.2(b) Families must meet all other eligibility requirements for MFIP established in
26.3this chapter. Families are eligible for financial assistance to the same extent as if they
26.4were participating in MFIP.
26.5    Subd. 4. Universal participation. All caregivers must participate in family
26.6stabilization services as defined in subdivision 2.
26.7    Subd. 5. Case management; family stabilization plans; coordinated services.
26.8(a) The county agency shall provide family stabilization services to families through a
26.9case management model. A case manager shall be assigned to each participating family
26.10within 30 days after the family begins to receive financial assistance as a participant of
26.11the family stabilization services program. The case manager, with the full involvement
26.12of the family, shall recommend, and the county agency shall establish and modify as
26.13necessary, a family stabilization plan for each participating family. If a participant is
26.14already assigned to a county case manager or a county-contracted case manager in social
26.15services or disability services, that case manager already assigned is the case manager for
26.16purposes of this program.
26.17(b) The family stabilization plan must include:
26.18(1) each participant's plan for long-term self-sufficiency, including an employment
26.19goal where applicable;
26.20(2) an assessment of each participant's strengths and barriers, and any special
26.21circumstances of the participant's family that impact, or are likely to impact, the
26.22participant's progress towards the goals in the plan; and
26.23(3) an identification of the services, supports, education, training, and
26.24accommodations needed to reduce or overcome any barriers to enable the family to
26.25achieve self-sufficiency and to fulfill each caregiver's personal and family responsibilities.
26.26(c) The case manager and the participant shall meet within 30 days of the family's
26.27referral to the case manager. The initial family stabilization plan must be completed within
26.2830 days of the first meeting with the case manager. The case manager shall establish a
26.29schedule for periodic review of the family stabilization plan that includes personal contact
26.30with the participant at least once per month. In addition, the case manager shall review
26.31and, if necessary, modify the plan under the following circumstances:
26.32(1) there is a lack of satisfactory progress in achieving the goals of the plan;
26.33(2) the participant has lost unsubsidized or subsidized employment;
26.34(3) a family member has failed or is unable to comply with a family stabilization
26.35plan requirement;
26.36(4) services, supports, or other activities required by the plan are unavailable;
27.1(5) changes to the plan are needed to promote the well-being of the children; or
27.2(6) the participant and case manager determine that the plan is no longer appropriate
27.3for any other reason.
27.4    Subd. 6. Cooperation with program requirements. (a) To be eligible, a participant
27.5shall comply with paragraphs (b) to (e).
27.6(b) Participants shall engage in family stabilization plan services for the appropriate
27.7number of hours per week that the activities are scheduled and available, unless good
27.8cause exists for not doing so, as defined in section 256J.57, subdivision 1. The appropriate
27.9number of hours must be based on the participant's plan.
27.10(c) The case manager shall review the participant's progress toward the goals in the
27.11family stabilization plan every six months to determine whether conditions have changed,
27.12including whether revisions to the plan are needed.
27.13(d) When the participant has increased participation in work-related activities
27.14sufficient to meet the federal participation requirements of TANF, the county agency shall
27.15refer the participant to the MFIP program and assign the participant to a job counselor.
27.16The participant and the job counselor shall meet within 15 days of referral to the MFIP
27.17program to develop an employment plan under section 256J.521. No reapplication is
27.18necessary and financial assistance continues without interruption.
27.19(e) A participant's requirement to comply with any or all family stabilization plan
27.20requirements under this subdivision is excused when the case management services,
27.21training and educational services, and family support services identified in the participant's
27.22family stabilization plan are unavailable for reasons beyond the control of the participant,
27.23including when money appropriated is not sufficient to provide the services.
27.24    Subd. 7. Sanctions. (a) The financial assistance grant of a participating family is
27.25reduced according to section 256J.46, if a participating adult fails without good cause to
27.26comply or continue to comply with the family stabilization plan requirements in this
27.27subdivision, unless compliance has been excused under subdivision 6, paragraph (e).
27.28(b) Given the purpose of the family stabilization services program in this section and
27.29the nature of the underlying family circumstances that act as barriers to both employment
27.30and full compliance with program requirements, sanctions are appropriate only when it is
27.31clear that there is both the ability to comply and willful noncompliance by the participant,
27.32as confirmed by a behavioral health or medical professional.
27.33(c) Prior to the imposition of a sanction, the county agency shall review the
27.34participant's case to determine if the family stabilization plan is still appropriate and
27.35meet with the participant face-to-face. The participant may bring an advocate to the
27.36face-to-face meeting.
28.1During the face-to-face meeting, the county agency must:
28.2(1) determine whether the continued noncompliance can be explained and mitigated
28.3by providing a needed family stabilization service, as defined in subdivision 2, paragraph
28.4(d);
28.5(2) determine whether the participant qualifies for a good cause exception under
28.6section 256J.57, or if the sanction is for noncooperation with child support requirements,
28.7determine if the participant qualifies for a good cause exemption under section 256.741,
28.8subdivision 10;
28.9(3) determine whether activities in the family stabilization plan are appropriate
28.10based on the family's circumstances;
28.11(4) explain the consequences of continuing noncompliance;
28.12(5) identify other resources that may be available to the participant to meet the
28.13needs of the family; and
28.14(6) inform the participant of the right to appeal under section 256J.40.
28.15If the lack of an identified activity or service can explain the noncompliance, the
28.16county shall work with the participant to provide the identified activity.
28.17(d) If the participant fails to come to the face-to-face meeting, the case manager or a
28.18designee shall attempt at least one home visit. If a face-to-face meeting is not conducted,
28.19the county agency shall send the participant a written notice that includes the information
28.20under paragraph (c).
28.21(e) After the requirements of paragraphs (c) and (d) are met and prior to imposition
28.22of a sanction, the county agency shall provide a notice of intent to sanction under section
28.23256J.57, subdivision 2, and, when applicable, a notice of adverse action under section
28.24256J.31.
28.25(f) Section 256J.57 applies to this section except to the extent that it is modified
28.26by this subdivision.

28.27    Sec. 26. [256J.621] WORK PARTICIPATION BONUS.
28.28(a) Upon exiting the diversionary work program (DWP) or upon terminating MFIP
28.29cash assistance with earnings, a participant who is employed and working 24 hours a week
28.30may be eligible for transitional assistance of $100 per month to assist in meeting the
28.31family's basic needs as the participant continues to move toward self-sufficiency.
28.32(b) To be eligible for a transitional assistance payment, the participant shall not
28.33receive MFIP cash assistance or diversionary work program assistance during the
28.34month and shall be employed an average of at least 24 hours a week to be determined
28.35prospectively. If a holiday falls on a day during a participant's normal work shift, that
28.36holiday counts as a work shift for purposes of calculating hours. When determining a
29.1monthly average, the week that contains the first of the month is counted in the month
29.2in which the following Friday falls. Transitional assistance is available for a maximum
29.3of 12 months from the date the participant exited the diversionary work program or
29.4terminated MFIP cash assistance.
29.5(c) The commissioner shall establish minimal policies and develop forms to verify
29.6eligibility for transitional assistance. The commissioner is authorized to change or
29.7modify the provisions of this section in order to comply with federal rules or regulations
29.8promulgated as a result of federal legislation passed in February 2006.
29.9(d) Expenditures on the transitional assistance program are maintenance of effort
29.10state funds. Months in which a participant receives transitional assistance under this
29.11section do not count toward the participant's MFIP 60-month time limit.

29.12    Sec. 27. Minnesota Statutes 2006, section 256J.626, subdivision 1, is amended to read:
29.13    Subdivision 1. Consolidated fund. The consolidated fund is established to support
29.14counties and tribes in meeting their duties under this chapter. Counties and tribes must use
29.15funds from the consolidated fund to develop programs and services that are designed to
29.16improve participant outcomes as measured in section 256J.751, subdivision 2. Counties
29.17may use the funds for any allowable expenditures under subdivision 2, and to provide case
29.18management services to participants of the family stabilization services program. Tribes
29.19may use the funds for any allowable expenditures under subdivision 2, except those in
29.20clauses (1) and (6).

29.21    Sec. 28. Minnesota Statutes 2006, section 256J.626, subdivision 2, is amended to read:
29.22    Subd. 2. Allowable expenditures. (a) The commissioner must restrict expenditures
29.23under the consolidated fund to benefits and services allowed under title IV-A of the federal
29.24Social Security Act. Allowable expenditures under the consolidated fund may include, but
29.25are not limited to:
29.26(1) short-term, nonrecurring shelter and utility needs that are excluded from the
29.27definition of assistance under Code of Federal Regulations, title 45, section 260.31, for
29.28families who meet the residency requirement in section 256J.12, subdivisions 1 and 1a.
29.29Payments under this subdivision are not considered TANF cash assistance and are not
29.30counted towards the 60-month time limit;
29.31(2) transportation needed to obtain or retain employment or to participate in other
29.32approved work activities or activities under a family stabilization plan;
29.33(3) direct and administrative costs of staff to deliver employment services for
29.34MFIP or, the diversionary work program, or the family stabilization services program;
29.35 to administer financial assistance,; and to provide specialized services intended to assist
30.1hard-to-employ participants to transition to work or transition from the family stabilization
30.2services program to MFIP;
30.3(4) costs of education and training including functional work literacy and English as
30.4a second language;
30.5(5) cost of work supports including tools, clothing, boots, telephone service, and
30.6other work-related expenses;
30.7(6) county administrative expenses as defined in Code of Federal Regulations, title
30.845, section 260(b);
30.9(7) services to parenting and pregnant teens;
30.10(8) supported work;
30.11(9) wage subsidies;
30.12(10) child care needed for MFIP or, the diversionary work program, or the family
30.13stabilization services program participants to participate in social services;
30.14(11) child care to ensure that families leaving MFIP or diversionary work program
30.15will continue to receive child care assistance from the time the family no longer qualifies
30.16for transition year child care until an opening occurs under the basic sliding fee child
30.17care program; and
30.18(12) services to help noncustodial parents who live in Minnesota and have minor
30.19children receiving MFIP or DWP assistance, but do not live in the same household as the
30.20child, obtain or retain employment; and
30.21(13) services to help families participating in the family stabilization services
30.22program achieve the greatest possible degree of self-sufficiency.
30.23(b) Administrative costs that are not matched with county funds as provided in
30.24subdivision 8 may not exceed 7.5 percent of a county's or 15 percent of a tribe's allocation
30.25under this section. The commissioner shall define administrative costs for purposes of
30.26this subdivision.
30.27(c) The commissioner may waive the cap on administrative costs for a county or tribe
30.28that elects to provide an approved supported employment, unpaid work, or community
30.29work experience program for a major segment of the county's or tribe's MFIP population.
30.30The county or tribe must apply for the waiver on forms provided by the commissioner. In
30.31no case shall total administrative costs exceed the TANF limits.

30.32    Sec. 29. Minnesota Statutes 2006, section 256J.626, subdivision 3, is amended to read:
30.33    Subd. 3. Eligibility for services. Families with a minor child, a pregnant woman,
30.34or a noncustodial parent of a minor child receiving assistance, with incomes below 200
30.35percent of the federal poverty guideline for a family of the applicable size, are eligible
30.36for services funded under the consolidated fund. Counties and tribes must give priority
31.1to families currently receiving MFIP or, the diversionary work program, or the family
31.2stabilization services program, and families at risk of receiving MFIP or diversionary
31.3work program.

31.4    Sec. 30. Minnesota Statutes 2006, section 256J.626, subdivision 4, is amended to read:
31.5    Subd. 4. County and tribal biennial service agreements. (a) Effective January 1,
31.62004, and each two-year period thereafter, each county and tribe must have in place an
31.7approved biennial service agreement related to the services and programs in this chapter.
31.8In counties with a city of the first class with a population over 300,000, the county must
31.9consider a service agreement that includes a jointly developed plan for the delivery of
31.10employment services with the city. Counties may collaborate to develop multicounty,
31.11multitribal, or regional service agreements.
31.12(b) The service agreements will be completed in a form prescribed by the
31.13commissioner. The agreement must include:
31.14(1) a statement of the needs of the service population and strengths and resources
31.15in the community;
31.16(2) numerical goals for participant outcomes measures to be accomplished during
31.17the biennial period. The commissioner may identify outcomes from section 256J.751,
31.18subdivision 2
, as core outcomes for all counties and tribes;
31.19(3) strategies the county or tribe will pursue to achieve the outcome targets.
31.20Strategies must include specification of how funds under this section will be used and may
31.21include community partnerships that will be established or strengthened; and
31.22(4) strategies the county or tribe will pursue under the family stabilization services
31.23program; and
31.24(5) other items prescribed by the commissioner in consultation with counties and
31.25tribes.
31.26(c) The commissioner shall provide each county and tribe with information needed
31.27to complete an agreement, including: (1) information on MFIP cases in the county or
31.28tribe; (2) comparisons with the rest of the state; (3) baseline performance on outcome
31.29measures; and (4) promising program practices.
31.30(d) The service agreement must be submitted to the commissioner by October 15,
31.312003, and October 15 of each second year thereafter. The county or tribe must allow
31.32a period of not less than 30 days prior to the submission of the agreement to solicit
31.33comments from the public on the contents of the agreement.
31.34(e) The commissioner must, within 60 days of receiving each county or tribal service
31.35agreement, inform the county or tribe if the service agreement is approved. If the service
32.1agreement is not approved, the commissioner must inform the county or tribe of any
32.2revisions needed prior to approval.
32.3(f) The service agreement in this subdivision supersedes the plan requirements
32.4of section 116L.88.

32.5    Sec. 31. Minnesota Statutes 2006, section 256J.626, subdivision 5, is amended to read:
32.6    Subd. 5. Innovation projects. Beginning January 1, 2005, no more than $3,000,000
32.7of the funds annually appropriated to the commissioner for use in the consolidated
32.8fund shall be available to the commissioner for projects testing innovative approaches
32.9to improving outcomes for MFIP participants, family stabilization services program
32.10participants, and persons at risk of receiving MFIP as detailed in subdivision 3, and
32.11for providing incentives to counties and tribes that exceed performance. Projects shall
32.12be targeted to geographic areas with poor outcomes as specified in section 256J.751,
32.13subdivision 5
, or to subgroups within the MFIP case load who are experiencing poor
32.14outcomes. For purposes of an incentive, a county or tribe exceeds performance if the
32.15county or tribe is above the top of the county or tribe's annualized range of expected
32.16performance on the three-year self-support index under section 256J.751, subdivision 2,
32.17clause (7), and achieves a 50 percent MFIP participation rate under section 256J.751,
32.18subdivision 2, clause (8), as averaged across the four quarterly measurements for the most
32.19recent year for which the measurements are available.

32.20    Sec. 32. Minnesota Statutes 2006, section 256J.626, subdivision 6, is amended to read:
32.21    Subd. 6. Base allocation to counties and tribes; definitions. (a) For purposes of
32.22this section, the following terms have the meanings given.
32.23(1) "2002 historic spending base" means the commissioner's determination of
32.24the sum of the reimbursement related to fiscal year 2002 of county or tribal agency
32.25expenditures for the base programs listed in clause (6), items (i) through (iv), and earnings
32.26related to calendar year 2002 in the base program listed in clause (6), item (v), and the
32.27amount of spending in fiscal year 2002 in the base program listed in clause (6), item (vi),
32.28issued to or on behalf of persons residing in the county or tribal service delivery area.
32.29(2) "Adjusted caseload factor" means a factor weighted:
32.30(i) 47 percent on the MFIP cases in each county at four points in time in the most
32.31recent 12-month period for which data is available multiplied by the county's caseload
32.32difficulty factor; and
32.33(ii) 53 percent on the count of adults on MFIP in each county and tribe at four points
32.34in time in the most recent 12-month period for which data is available multiplied by the
32.35county or tribe's caseload difficulty factor.
33.1(3) "Caseload difficulty factor" means a factor determined by the commissioner for
33.2each county and tribe based upon the self-support index described in section 256J.751,
33.3subdivision 2
, clause (7).
33.4(4) "Initial allocation" means the amount potentially available to each county or tribe
33.5based on the formula in paragraphs (b) through (h).
33.6(5) "Final allocation" means the amount available to each county or tribe based on
33.7the formula in paragraphs (b) through (h), after adjustment by subdivision 7.
33.8(6) "Base programs" means the:
33.9(i) MFIP employment and training services under Minnesota Statutes 2002, section
33.10256J.62, subdivision 1 , in effect June 30, 2002;
33.11(ii) bilingual employment and training services to refugees under Minnesota Statutes
33.122002, section 256J.62, subdivision 6, in effect June 30, 2002;
33.13(iii) work literacy language programs under Minnesota Statutes 2002, section
33.14256J.62, subdivision 7 , in effect June 30, 2002;
33.15(iv) supported work program authorized in Laws 2001, First Special Session chapter
33.169, article 17, section 2, in effect June 30, 2002;
33.17(v) administrative aid program under section 256J.76 in effect December 31, 2002;
33.18and
33.19(vi) emergency assistance program under Minnesota Statutes 2002, section 256J.48,
33.20in effect June 30, 2002.
33.21(b) The commissioner shall:
33.22(1) beginning July 1, 2003, determine the initial allocation of funds available under
33.23this section according to clause (2);
33.24(2) allocate all of the funds available for the period beginning July 1, 2003, and
33.25ending December 31, 2004, to each county or tribe in proportion to the county's or tribe's
33.26share of the statewide 2002 historic spending base;
33.27(3) determine for calendar year 2005 the initial allocation of funds to be made
33.28available under this section in proportion to the county or tribe's initial allocation for the
33.29period of July 1, 2003, to December 31, 2004;
33.30(4) determine for calendar year 2006 the initial allocation of funds to be made
33.31available under this section based 90 percent on the proportion of the county or tribe's
33.32share of the statewide 2002 historic spending base and ten percent on the proportion of
33.33the county or tribe's share of the adjusted caseload factor;
33.34(5) determine for calendar year 2007 the initial allocation of funds to be made
33.35available under this section based 70 percent on the proportion of the county or tribe's
34.1share of the statewide 2002 historic spending base and 30 percent on the proportion of the
34.2county or tribe's share of the adjusted caseload factor; and
34.3(6) determine for calendar year 2008 and subsequent years the initial allocation of
34.4funds to be made available under this section based 50 percent on the proportion of the
34.5county or tribe's share of the statewide 2002 historic spending base and 50 percent on the
34.6proportion of the county or tribe's share of the adjusted caseload factor.
34.7(c) With the commencement of a new or expanded tribal TANF program or an
34.8agreement under section 256.01, subdivision 2, paragraph (g), in which some or all of
34.9the responsibilities of particular counties under this section are transferred to a tribe,
34.10the commissioner shall:
34.11(1) in the case where all responsibilities under this section are transferred to a tribal
34.12program, determine the percentage of the county's current caseload that is transferring to a
34.13tribal program and adjust the affected county's allocation accordingly; and
34.14(2) in the case where a portion of the responsibilities under this section are
34.15transferred to a tribal program, the commissioner shall consult with the affected county or
34.16counties to determine an appropriate adjustment to the allocation.
34.17(d) Effective January 1, 2005, counties and tribes will have their final allocations
34.18adjusted based on the performance provisions of subdivision 7.

34.19    Sec. 33. [256J.678] INJURY PROTECTION FOR COMMUNITY SERVICE
34.20WORK EXPERIENCE PARTICIPANTS.
34.21    Subdivision 1. Authority. The Department of Administration, in consultation with
34.22the Department of Human Services, shall contract with an approved insurance carrier to
34.23provide coverage for injuries or death resulting from a person's participation in paid and
34.24unpaid community work experience programs authorized by the commissioner for persons
34.25applying for or receiving DWP, MFIP, or food stamps, and participating in the Minnesota
34.26parent's fair share program and the community service program under section 518.551,
34.27subdivision 5a, in a county with an approved community investment program for obligors.
34.28    Subd. 2. Claims. Claims that are subject to this section must be reported to the
34.29insurance carrier in a format approved by the carrier by the department of the state, county
34.30agency, or tribal program responsible for supervising the work.
34.31    Subd. 3. Exclusive procedure. The procedure established by this section
34.32is exclusive of all other legal, equitable, and statutory remedies against the state,
34.33employees of the state, or the state's political subdivisions. The claimant is not entitled
34.34to seek damages from any other state, county, tribal, or reservation insurance policy or
34.35self-insurance program.
35.1    Subd. 4. Requirements for worksites. The department of the state, county agency,
35.2or tribal program responsible for supervising the work shall ensure that no participant is
35.3assigned to a worksite which is in violation of federal Occupational Safety and Health
35.4Administration and state Department of Labor and Industry safety standards or is under
35.5investigation to determine if those violations have occurred. All participants must be
35.6given the same safety information and training given to a paid employee performing
35.7similar work at that worksite.

35.8    Sec. 34. Minnesota Statutes 2006, section 256J.751, subdivision 2, is amended to read:
35.9    Subd. 2. Quarterly comparison report. The commissioner shall report quarterly to
35.10all counties on each county's performance on the following measures:
35.11(1) percent of MFIP caseload working in paid employment;
35.12(2) percent of MFIP caseload receiving only the food portion of assistance;
35.13(3) number of MFIP cases that have left assistance;
35.14(4) median placement wage rate;
35.15(5) caseload by months of TANF assistance;
35.16(6) percent of MFIP and diversionary work program (DWP) cases off cash assistance
35.17or working 30 or more hours per week at one-year, two-year, and three-year follow-up
35.18points from a baseline quarter. This measure is called the self-support index. The
35.19commissioner shall report quarterly an expected range of performance for each county,
35.20county grouping, and tribe on the self-support index. The expected range shall be derived
35.21by a statistical methodology developed by the commissioner in consultation with the
35.22counties and tribes. The statistical methodology shall control differences across counties
35.23in economic conditions and demographics of the MFIP and DWP case load; and
35.24(7) the MFIP TANF work participation rate, defined as the participation requirements
35.25specified in title 1 of Public Law 104-193 applied to all MFIP cases except child only
35.26cases under Public Law 109-171, the Deficit Reduction Act of 2005.

35.27    Sec. 35. Minnesota Statutes 2006, section 256J.751, subdivision 5, is amended to read:
35.28    Subd. 5. Failure to meet federal performance standards. (a) If sanctions occur
35.29for failure to meet the performance standards specified in title 1 of Public Law 104-193
35.30of the Personal Responsibility and Work Opportunity Act of 1996, and under Public
35.31Law 109-171, the Deficit Reduction Act of 2005, the state shall pay 88 percent of the
35.32sanction. The remaining 12 percent of the sanction will be paid by the counties. The
35.33county portion of the sanction will be distributed across all counties in proportion to each
35.34county's percentage of the MFIP average monthly caseload during the period for which
35.35the sanction was applied.
36.1(b) If a county fails to meet the performance standards specified in title 1 of Public
36.2Law 104-193 of the Personal Responsibility and Work Opportunity Act of 1996, and
36.3Public Law 109-171, the Deficit Reduction Act of 2005, for any year, the commissioner
36.4shall work with counties to organize a joint state-county technical assistance team to work
36.5with the county. The commissioner shall coordinate any technical assistance with other
36.6departments and agencies including the Departments of Employment and Economic
36.7Development and Education as necessary to achieve the purpose of this paragraph.
36.8(c) For state performance measures, a low-performing county is one that:
36.9(1) performs below the bottom of their expected range for the measure in subdivision
36.102, clause (7) (6), in an annualized measurement reported in October of each year; or
36.11(2) performs below 40 percent for the measure in subdivision 2, clause (8) (7), as
36.12averaged across the four quarterly measurements for the year, or the ten counties with the
36.13lowest rates if more than ten are below 40 percent.
36.14(d) Low-performing counties under paragraph (c) must engage in corrective action
36.15planning as defined by the commissioner. The commissioner may coordinate technical
36.16assistance as specified in paragraph (b) for low-performing counties under paragraph (c).

36.17    Sec. 36. Minnesota Statutes 2006, section 256J.95, subdivision 13, is amended to read:
36.18    Subd. 13. Immediate referral to employment services. Within one working day of
36.19determination that the applicant is eligible for the diversionary work program, but before
36.20benefits are issued to or on behalf of the family unit, the county shall refer all caregivers to
36.21employment services. The referral to the DWP employment services must be in writing
36.22and must contain the following information:
36.23(1) notification that, as part of the application process, applicants are required to
36.24develop an employment plan or the DWP application will be denied;
36.25(2) the employment services provider name and phone number;
36.26(3) the date, time, and location of the scheduled employment services interview;
36.27(4) (3) the immediate availability of supportive services, including, but not limited
36.28to, child care, transportation, and other work-related aid; and
36.29(5) (4) the rights, responsibilities, and obligations of participants in the program,
36.30including, but not limited to, the grounds for good cause, the consequences of refusing or
36.31failing to participate fully with program requirements, and the appeal process.

36.32    Sec. 37. SUPPORTED WORK.
36.33Funds appropriated to the commissioner under section 2, subdivision 4, must be
36.34allocated to counties based on the criteria under this section. Supported work under this
36.35section must be modeled after the mental health supported work model, which provides
36.36an intensive continuum of employment assistance, including outreach and recruitment,
37.1program orientation and intake, testing and assessment, job development and marketing,
37.2preworksite training, supported worksite experience, job coaching, and postplacement
37.3follow-up in addition to extensive case management and referral services.
37.4A county is eligible to receive an allocation under section 2, subdivision 4, if:
37.5(1) the county is not meeting the federal work participation rate;
37.6(2) the county has participants who are required to perform work activities under
37.7Minnesota Statutes, chapter 256J, but are not meeting hourly work requirements; and
37.8(3) the county has assessed participants who have completed six weeks of job search
37.9or are required to perform work activities and are not meeting the hourly requirements,
37.10and the county has determined that the participant would benefit from working in a
37.11supported work environment.

37.12    Sec. 38. APPROPRIATIONS.
37.13    Subdivision 1. Work study. $1,500,000 is appropriated from the TANF reserve
37.14account to the Minnesota Office of Higher Education for the biennium beginning July 1,
37.152007, for work study grants under Minnesota Statutes, section 136A.233, specifically for
37.16low-income individuals who receive assistance under Minnesota Statutes, chapter 256J.
37.17    Subd. 2. Car loans and car repairs. $3,000,000 is appropriated from the TANF
37.18reserve account to the commissioner of human services for the biennium beginning July
37.191, 2007, for programs that provide car loans and car repairs to individuals who receive
37.20assistance under Minnesota Statutes, chapter 256J.
37.21    Subd. 3. Integrated service projects. $3,000,000 is appropriated from the TANF
37.22reserve account to the commissioner of human services for the biennium beginning July 1,
37.232007, to fund the integrated services project for MFIP families.
37.24    Subd. 4. Supported work. $....... is appropriated from the TANF reserve account
37.25to the commissioner of human services for the biennium beginning July 1, 2007, for
37.26supported work for MFIP participants. The funds appropriated under this section are
37.27specifically for counties that are not meeting the work participation rates and must be
37.28allocated according to section 1.

37.29    Sec. 39. REPEALER.
37.30Minnesota Statutes 2006, sections 256B.0631; 256J.24, subdivision 6; 256J.29;
37.31256J.37, subdivisions 3a and 3b; 256J.626, subdivisions 7 and 9; and 256J.68, are repealed."
37.32Amend the title accordingly