1.1    .................... moves to amend H. F. No. 297, the delete everything amendment
1.2(A07-0645), as follows:
1.3Page 8, delete section 12 and insert:

1.4    "Sec. ... Minnesota Statutes 2006, section 256J.021, is amended to read:
1.5256J.021 SEPARATE STATE PROGRAM FOR USE OF STATE MONEY.
1.6    (a) Until October 1, 2006, the commissioner of human services must treat MFIP
1.7expenditures made to or on behalf of any minor child under section 256J.02, subdivision
1.82 , clause (1), who is a resident of this state under section 256J.12, and who is part of a
1.9two-parent eligible household as expenditures under a separately funded state program
1.10and report those expenditures to the federal Department of Health and Human Services as
1.11separate state program expenditures under Code of Federal Regulations, title 45, section
1.12263.5. Families receiving assistance under this section shall comply with all applicable
1.13requirements in this chapter.
1.14    (b) Beginning October 1, 2006, the commissioner of human services must treat
1.15MFIP expenditures made to or on behalf of any minor child under section 256J.02,
1.16subdivision 2, clause (1), who is a resident of this state under section 256J.12, and who is
1.17part of a two-parent eligible household, as expenditures under a separately funded state
1.18program. These expenditures shall not count toward the state's maintenance of effort
1.19(MOE) requirements under the federal Temporary Assistance to Needy Families (TANF)
1.20program except if counting certain families would allow the commissioner to avoid a
1.21federal penalty. Families receiving assistance under this section must comply with all
1.22applicable requirements in this chapter.
1.23    (c) Beginning October 1, 2007, the commissioner of human services shall treat
1.24MFIP expenditures made to or on behalf of any minor child under section 256J.02,
1.25subdivision 2, clause (1), who is part of a household that meets criteria in clauses (1) to (4)
1.26as expenditures under a separately funded state program:
2.1    (1) single eligible caregiver households when the adult is a refugee or asylee as
2.2defined in Code of Federal Regulations, title 45, chapter IV, section 400.43, and the refugee
2.3or asylee arrived in the United States in the 12 months prior to the date of application for
2.4MFIP. These households will remain in the separately funded state program for six months
2.5or until the caregiver has been in the United States for 12 months, whichever comes first;
2.6    (2) single eligible caregiver cases with an approved hardship extension under section
2.7256J.425, subdivision 2;
2.8    (3) single eligible caregiver cases with an approved hardship extension under section
2.9256J.425, subdivision 3; and
2.10    (4) single eligible caregiver cases with an approved hardship extension under section
2.11256J.425, subdivision 4, clause (3).
2.12    (d) Beginning March 1, 2008, the commissioner of human services shall treat MFIP
2.13expenditures made to or on behalf of any minor child under section 256J.02, subdivision
2.142, clause (1), who is part of a single eligible caregiver household that meets the criteria in
2.15section 256J.32, subdivision 6, clause (6), as expenditures under a separately funded state
2.16program. A household is no longer part of the separately funded program if the household
2.17no longer meets the criteria in section 256J.32, subdivision 6, clause (6), item (iv), or
2.18if it is determined at recertification that:
2.19    (1) a single eligible caregiver with a child under the age of six is working at least 87
2.20hours per month in paid or unpaid employment; or
2.21    (2) a single eligible caregiver without a child under the age of six is working at least
2.22130 hours per month in paid or unpaid employment.
2.23    (e) The expenditures in paragraphs (b) to (d) do not count toward the state's MOE
2.24requirements under the federal TANF program."
2.25Page 8, after line 22 insert:

2.26    "Sec. ... Minnesota Statutes 2006, section 256J.09, subdivision 3b, is amended to read:
2.27    Subd. 3b. Interview to determine referrals and services. If the applicant is
2.28not diverted from applying for MFIP, and if the applicant meets the MFIP eligibility
2.29requirements, then a county agency must:
2.30    (1) identify an applicant who is under the age of 20 without a high school diploma or
2.31its equivalent and explain to the applicant the assessment procedures and employment
2.32plan requirements under section 256J.54;
2.33    (2) explain to the applicant the eligibility criteria in section 256J.545 for the family
2.34violence waiver, and what an applicant should do to develop an employment plan;
2.35    (3) explain that the activities and hourly requirements of the employment plan may
2.36be adjusted to accommodate the personal and family circumstances of applicants who
3.1meet the criteria in section 256J.561, subdivision 2, paragraph (d), and explain how a
3.2person should report to the county agency any status changes, and explain that an applicant
3.3who is not required to participate in employment services under section 256J.561 may
3.4volunteer to participate in employment and training services;
3.5    (4) for applicants who are not exempt from the requirement to attend orientation,
3.6arrange for an orientation under section 256J.45 and an assessment under section 256J.521;
3.7    (5) inform an applicant who is not exempt from the requirement to attend orientation
3.8that failure to attend the orientation is considered an occurrence of noncompliance with
3.9program requirements and will result in an imposition of a sanction under section 256J.46;
3.10and
3.11    (6) explain how to contact the county agency if an applicant has questions about
3.12compliance with program requirements.;
3.13    (7) explain that before MFIP benefits can be issued to a family unit, the caregiver
3.14shall, in conjunction with a job counselor, develop and sign an employment plan. In
3.15two-parent family units, both parents shall develop and sign employment plans before
3.16benefits can be issued. Food support and health care benefits are not contingent on the
3.17requirement for a signed employment plan; and
3.18    (8) if child care is needed, the county agency shall obtain a completed application
3.19for child care from the applicant before the interview is terminated. The same day the
3.20application for child care is received, the application must be forwarded to the appropriate
3.21child care worker.
3.22EFFECTIVE DATE.This section is effective July 1, 2008.

3.23    Sec. ... Minnesota Statutes 2006, section 256J.09, is amended by adding a subdivision
3.24to read:
3.25    Subd. 11. Employment plan; MFIP benefits. As soon as possible, but no later
3.26than ten working days after being notified that a participant is financially eligible for
3.27the MFIP program, the employment services provider shall provide the participant
3.28with an opportunity to meet to develop an initial employment plan. Once the initial
3.29employment plan has been developed and signed by the participant and the job counselor,
3.30the employment services provider shall notify the county within one working day that
3.31the employment plan has been signed. The county shall issue MFIP benefits within one
3.32working day after receiving notice that the employment plan has been signed.
3.33EFFECTIVE DATE.This section is effective July 1, 2008.

3.34    Sec. ... Minnesota Statutes 2006, section 256J.09, is amended by adding a subdivision
3.35to read:
4.1    Subd. 12. Immediate referral to employment services. Within one working day
4.2of determination that the applicant is eligible for the MFIP program, but before benefits
4.3are issued to or on behalf of the family unit, the county shall refer all caregivers to
4.4employment services. The referral to employment services must be in writing and must
4.5contain the following information:
4.6    (1) notification that, as part of the application process, applicants are required to
4.7develop an employment plan or the MFIP application will be denied;
4.8    (2) the employment services provider name and phone number;
4.9    (3) the immediate availability of supportive services including, but not limited to,
4.10child care, transportation, and other work-related aid; and
4.11    (4) the rights, responsibilities, and obligations of participants in the program
4.12including, but not limited to, the grounds for good cause, the consequences of refusing or
4.13failing to participate fully with program requirements, and the appeal process.
4.14EFFECTIVE DATE.This section is effective July 1, 2008."
4.15Page 11, delete section 14
4.16Page 12, delete section 16 and insert:

4.17    "Sec. ... Minnesota Statutes 2006, section 256J.32, subdivision 6, is amended to read:
4.18    Subd. 6. Recertification. The county agency shall recertify eligibility in an annual
4.19face-to-face interview with the participant and verify the following:
4.20    (1) presence of the minor child in the home, if questionable;
4.21    (2) income, unless excluded, including self-employment expenses used as a
4.22deduction or deposits or withdrawals from business accounts;
4.23    (3) assets when the value is within $200 of the asset limit;
4.24    (4) information to establish an exception under section 256J.24, subdivision 9,
4.25if questionable; and
4.26    (5) inconsistent information, if related to eligibility.;
4.27    (6) beginning March 1, 2008, whether a single eligible caregiver household meets
4.28requirements in items (i) to (iv) for inclusion in a separately funded state program under
4.29section 256J.021, paragraph (d):
4.30    (i) the assistance unit has used 24 or more months of MFIP assistance at
4.31recertification under this section;
4.32    (ii) the caregiver is not employed;
4.33    (iii) the caregiver is not meeting participation requirements under section 256J.55,
4.34subdivision 1, paragraph (d), clauses (1) and (2); and
4.35    (iv) the caregiver meets at least one of the following criteria:
5.1    (A) a qualified professional has determined the caregiver is unable to obtain or retain
5.2employment due to an illness, injury, or incapacity that is expected to last at least 60 days;
5.3    (B) a qualified professional has certified that the caregiver is required in the home to
5.4provide care for a family member, a relative in the household, or a foster child with an
5.5illness, injury, or incapacity that is expected to continue more than 60 days;
5.6    (C) a qualified professional has determined that the caregiver is needed in the home
5.7to care for a child or adult meeting the special medical criteria in section 256J.561,
5.8subdivision 2, paragraph (d), clause (3);
5.9    (D) a qualified professional has determined that the caregiver is pregnant and unable
5.10to obtain or retain employment for at least 60 days due to the pregnancy;
5.11    (E) the caregiver has a documented disability and has applied for supplemental
5.12security income or Social Security disability insurance and a determination is pending; and
5.13    (F) the caregiver qualifies for a family violence waiver under section 256J.545.

5.14    Sec. ... Minnesota Statutes 2006, section 256J.42, subdivision 6, is amended to read:
5.15    Subd. 6. Case review. (a) Within 180 days, but not less than 60 days, before the end
5.16of the participant's 60th month on assistance, the county agency or job counselor must
5.17review the participant's case to determine if the employment plan is still appropriate or if
5.18the participant is exempt under section 256J.56 from the employment and training services
5.19component, and attempt to meet with the participant face-to-face. Beginning March 1,
5.202008, for single caregiver households included in the separately funded nonmaintenance of
5.21effort state program under section 256J.021, paragraph (c), clauses (2) to (4), the purpose
5.22of the case review is to confirm criteria under section 256J.32, subdivision 6, clause (6).
5.23    (b) During the face-to-face meeting, a county agency or the job counselor must:
5.24    (1) inform the participant how many months of counted assistance the participant
5.25has accrued and when the participant is expected to reach the 60th month;
5.26    (2) explain the hardship extension criteria under section 256J.425 and what the
5.27participant should do if the participant thinks a hardship extension applies;
5.28    (3) identify other resources that may be available to the participant to meet the
5.29needs of the family; and
5.30    (4) inform the participant of the right to appeal the case closure under section
5.31256J.40 .
5.32    (c) If a face-to-face meeting is not possible, the county agency must send the
5.33participant a notice of adverse action as provided in section 256J.31, subdivisions 4 and 5.
5.34    (d) Before a participant's case is closed under this section, the county must ensure
5.35that:
6.1    (1) the case has been reviewed by the job counselor's supervisor or the review team
6.2designated by the county to determine if the criteria for a hardship extension, if requested,
6.3were applied appropriately; and
6.4    (2) the county agency or the job counselor attempted to meet with the participant
6.5face-to-face."
6.6Page 13, delete section 17 and insert:

6.7    "Sec. ... Minnesota Statutes 2006, section 256J.425, is amended by adding a
6.8subdivision to read:
6.9    Subd. 9. Simplified sanctions for extended cases. (a) Beginning July 1, 2008, if
6.10one or both participants in an assistance unit receiving assistance under this section are
6.11not in compliance with the requirements in sections 256J.45 or 256J.515 to 256J.57, the
6.12following sanctions apply:
6.13    (1) for a first occurrence of noncompliance, an assistance unit is sanctioned under
6.14section 256J.46, subdivision 3, paragraph (d);
6.15    (2) for a second or third occurrence of noncompliance, the assistance unit is
6.16sanctioned under section 256J.46, subdivision 3, paragraph (e); and
6.17    (3) for a fourth occurrence of noncompliance, the assistance unit is disqualified
6.18from MFIP.
6.19If a participant is determined to be out of compliance, the participant may claim a good
6.20cause exception under section 256J.57.
6.21    (b) If both participants in a two-parent assistance unit are out of compliance at the
6.22same time, it is considered one occurrence of noncompliance.
6.23    (c) If a two-parent assistance unit is extended under subdivision 3 or 4, and a parent
6.24who has not reached the 60-month time limit is out of compliance with the requirements
6.25in sections 256J.45 or 256J.515 to 256J.57 when the case is extended, the sanction in the
6.2661st month is considered the first sanction for the purposes of applying the sanctions in
6.27this subdivision, except that the sanction amount is reduced by 30 percent.
6.28    (d) If one or both participants in an assistance unit receiving assistance under this
6.29section refuses to cooperate, as determined by the child support agency, with support
6.30requirements under section 256.741, the following sanctions apply:
6.31    (1) for a first occurrence of noncooperation, the assistance unit's grant is reduced
6.32by 30 percent of the applicable MFIP standard of need;
6.33    (2) for a second or third occurrence of noncompliance, the assistance unit is
6.34sanctioned under section 256J.46, subdivision 3, paragraph (e); and
6.35    (3) for a fourth occurrence of noncompliance, the assistance unit is disqualified
6.36from MFIP.
7.1    (e) A participant subject to a sanction for refusal to comply with child support
7.2requirements and subject to a concurrent employment services sanction is subject to
7.3sanctions under paragraphs (f) to (i).
7.4    (f) If the participant was sanctioned for:
7.5    (1) noncompliance under paragraph (a) before being subject to sanction for
7.6noncooperation under paragraph (d); or
7.7    (2) noncooperation under paragraph (d) before being subject to sanction for
7.8noncompliance under paragraph (a), the participant is considered to have second
7.9occurrence of noncompliance and shall be sanctioned under section 256J.46, subdivision
7.103, paragraph (e). Each subsequent occurrence of noncompliance is considered one
7.11additional occurrence and is subject to the applicable level of sanction under section
7.12256J.46, subdivision 3.
7.13    (g) A participant who first becomes subject to sanction under both paragraphs (a)
7.14and (d) in the same month is subject to sanction as follows:
7.15    (1) in the first month of noncompliance and noncooperation, the participant's grant
7.16is reduced by 30 percent of the applicable MFIP standard of need, with any residual
7.17amount paid to the participant;
7.18    (2) in the second or third month of noncompliance and noncooperation, the
7.19participant is subject to the sanction under section 256J.46, subdivision 3, paragraph
7.20(e); and
7.21    (3) on the fourth month of noncompliance and noncooperation, the participant is
7.22disqualified.
7.23    (h) A participant remains subject to sanction under paragraph (d) if the participant:
7.24    (1) returns to compliance and is no longer subject to sanction for noncompliance
7.25with section 256J.45 or sections 256J.515 to 256J.57; or
7.26    (2) has the sanction for noncompliance with section 256J.45 or sections 256J.515 to
7.27256J.57 removed upon completion of the review under section 256J.46, subdivision 3,
7.28paragraph (f).
7.29    (i) A participant remains subject to sanction under paragraph (a) if the participant
7.30cooperates and is no longer subject to sanction under paragraph (d).

7.31    Sec. ... Minnesota Statutes 2006, section 256J.425, is amended by adding a subdivision
7.32to read:
7.33    Subd. 10. Status of disqualified participants under simplified sanctions.
7.34    (a) Beginning July 1, 2008, an assistance unit that is disqualified under subdivision
7.359, paragraph (a), may be approved for MFIP if the participant complies with MFIP
8.1requirements and demonstrates compliance for up to one month. No assistance shall be
8.2paid during this period.
8.3    (b) An assistance unit that is disqualified under subdivision 9 and that reapplies
8.4under paragraph (a) is subject to sanction under section 256J.46, subdivision 3, paragraph
8.5(e), for a first occurrence of noncompliance. A subsequent occurrence of noncompliance
8.6results in a permanent disqualification.
8.7    (c) If one participant in a two-parent assistance unit receiving assistance under a
8.8hardship extension under subdivision 3 or 4 is determined to be out of compliance with
8.9MFIP requirements, the county shall give the assistance unit the option of disqualifying
8.10the noncompliant participant from MFIP. In that case, the assistance unit is treated
8.11as a one-parent assistance unit for the purposes of meeting the work requirements
8.12under subdivision 4, and the assistance unit's MFIP grant is calculated using the shared
8.13household standard under section 256J.08, subdivision 82a. An applicant who is
8.14disqualified from receiving assistance under this paragraph may reapply under paragraph
8.15(a). If a participant is disqualified from MFIP under this subdivision a second time, the
8.16participant is permanently disqualified from MFIP.
8.17    (d) Prior to a disqualification under this subdivision, a county agency must review
8.18the participant's case to determine if the employment plan is still appropriate and attempt
8.19to meet with the participant face-to-face. If a face-to-face meeting is not conducted, the
8.20county agency shall send the participant a notice of adverse action as provided in section
8.21256J.31. During the face-to-face meeting, the county agency shall:
8.22    (1) determine whether the continued noncompliance can be explained and mitigated
8.23by providing a needed preemployment activity, as defined in section 256J.49, subdivision
8.2413, clause (9);
8.25    (2) determine whether the participant qualifies for a good cause exception under
8.26section 256J.57;
8.27    (3) inform the participant of the family violence waiver criteria and make appropriate
8.28referrals if the waiver is requested;
8.29    (4) inform the participant of the participant's sanction status and explain the
8.30consequences of continuing noncompliance;
8.31    (5) identify other resources that may be available to the participant to meet the
8.32needs of the family; and
8.33    (6) inform the participant of the right to appeal under section 256J.40."
8.34Page 15, delete section 18 and insert:

8.35    "Sec. ... Minnesota Statutes 2006, section 256J.46, is amended by adding a subdivision
8.36to read:
9.1    Subd. 3. Simplified sanctions. (a) Beginning July 1, 2008, a participant who fails
9.2without good cause under section 256J.57 to comply with the requirements of this chapter,
9.3and who is not subject to a sanction under subdivision 4, is subject to a sanction under this
9.4subdivision. Prior to the imposition of a sanction, a county agency shall provide a notice
9.5of intent to sanction under section 256J.57, subdivision 2, and, when applicable, a notice
9.6of adverse action under section 256J.31.
9.7    (b) A sanction under this subdivision becomes effective the month following the
9.8month in which a required notice is given. A sanction is not imposed when a participant
9.9comes into compliance with the requirements for orientation under section 256J.45 prior to
9.10the effective date of the sanction. A sanction is not imposed when a participant comes into
9.11compliance with the requirements for employment and training services under sections
9.12256J.515 to 256J.57 ten days prior to the effective date of the sanction. For purposes of
9.13this subdivision, each month that a participant fails to comply with a requirement of
9.14this chapter is considered a separate occurrence of noncompliance. If both participants
9.15in a two-parent assistance unit are out of compliance at the same time, it is considered
9.16one occurrence of noncompliance.
9.17    (c) Sanctions for noncompliance are imposed as prescribed by paragraphs (d) and (e).
9.18    (d) For the first occurrence of noncompliance by a participant in an assistance
9.19unit, the assistance unit's grant is reduced by ten percent of the MFIP standard of need
9.20for an assistance unit of the same size with the residual grant paid to the participant.
9.21The reduction in the grant amount must be in effect for a minimum of one month and is
9.22removed in the month following the month that the participant returns to compliance.
9.23    (e) For a second or third occurrence of noncompliance by a participant in an
9.24assistance unit, the assistance unit's shelter costs must be vendor paid up to the amount
9.25of the cash portion of the MFIP grant for which the assistance unit is eligible. At county
9.26option, the assistance unit's utilities may also be vendor paid up to the amount of the
9.27cash portion of the MFIP grant remaining after vendor payment of the assistance unit's
9.28shelter costs. The residual amount of the grant after vendor payment, if any, is reduced
9.29by an amount equal to 30 percent of the MFIP standard of need for an assistance unit of
9.30the same size before the residual grant is paid to the assistance unit. The reduction in
9.31the grant amount must be in effect for a minimum of one month and is removed in the
9.32month following the month that the participant in a one-parent assistance unit returns to
9.33compliance. In a two-parent assistance unit, the grant reduction must be in effect for a
9.34minimum of one month and is removed in the month following the month both participants
9.35return to compliance. The vendor payment of shelter costs and utilities must be removed
9.36six months after the month in which the participant or participants return to compliance. If
10.1an assistance unit is sanctioned under this paragraph, the participant's case file must be
10.2reviewed to determine if the employment plan is still appropriate.
10.3    (f) For a fourth occurrence of noncompliance by a participant in an assistance unit,
10.4or when the participants in a two-parent assistance unit have a total of four occurrences
10.5of noncompliance, the county agency shall close the MFIP assistance unit's financial
10.6assistance case, including both the cash and food portions, and redetermine the family's
10.7continued eligibility for food support payments. The MFIP case must remain closed
10.8for a minimum of one full month. Before the case is closed, the county agency shall
10.9review the participant's case to determine if the employment plan is still appropriate and
10.10attempt to meet with the participant face-to-face. The participant may bring an advocate to
10.11the face-to-face meeting. If a face-to-face meeting is not conducted, the county agency
10.12shall send the participant a written notice that includes the information required under
10.13paragraph (g).
10.14    (g) During the face-to-face meeting in paragraph (f), the county agency must:
10.15    (1) determine whether the continued noncompliance can be explained and mitigated
10.16by providing a needed preemployment activity, as defined in section 256J.49, subdivision
10.1713, clause (9);
10.18    (2) determine whether the participant qualifies for a good cause exception under
10.19section 256J.57, or if the sanction is for noncooperation with child support requirements,
10.20determine if the participant qualifies for a good cause exemption under section 256.741,
10.21subdivision 10;
10.22    (3) determine whether the work activities in the employment plan are appropriate
10.23based on the criteria in section 256J.521, subdivision 2 or 3;
10.24    (4) determine whether the participant qualifies for the family violence waiver;
10.25    (5) inform the participant of the participant's sanction status and explain the
10.26consequences of continuing noncompliance;
10.27    (6) identify other resources that may be available to the participant to meet the
10.28needs of the family; and
10.29    (7) inform the participant of the right to appeal under section 256J.40.
10.30    If the lack of an identified activity or service can explain the noncompliance, the
10.31county must work with the participant to provide the identified activity.
10.32    The grant must be restored to the full amount for which the assistance unit is eligible
10.33retroactively to the first day of the month in which the participant was found to lack
10.34preemployment activities, a family violence waiver, or for a good cause exemption under
10.35section 256.741, subdivision 10, or 256J.57.
11.1    (h) For the purpose of applying sanctions under this subdivision, only occurrences of
11.2noncompliance that occur after July 1, 2008, are considered. If the participant is in 30
11.3percent sanction in the month this section takes effect, that month counts as the first
11.4occurrence for purposes of applying the sanctions under this section, but the sanction
11.5must remain at 30 percent for that month.
11.6    (i) An assistance unit whose case is closed under paragraph (f) or (j), may reapply
11.7for MFIP and is eligible if the participant complies with MFIP program requirements and
11.8demonstrates compliance for up to one month. No assistance is paid during this period.
11.9    (j) An assistance unit whose case has been closed for noncompliance that reapplies
11.10under paragraph (i) is subject to sanction under paragraph (e) for a first occurrence of
11.11noncompliance. Any subsequent occurrence of noncompliance results in case closure
11.12under paragraph (f).

11.13    Sec. ... Minnesota Statutes 2006, section 256J.46, is amended by adding a subdivision
11.14to read:
11.15    Subd. 4. Simplified sanctions for refusal to cooperate with support
11.16requirements. Beginning July 1, 2008, an MFIP caregiver who refuses to cooperate, as
11.17determined by the child support enforcement agency, with support requirements under
11.18section 256.741, is subject to sanction under this subdivision and subdivision 1. For a first
11.19occurrence of noncooperation, the assistance unit's grant must be reduced by 30 percent of
11.20the applicable MFIP standard of need. Subsequent occurrences of noncooperation must be
11.21subject to sanction under subdivision 3, paragraphs (e) and (f). The residual amount of the
11.22grant, if any, is paid to the caregiver. A sanction under this subdivision becomes effective
11.23the first month following the month in which a required notice is given. A sanction is not
11.24imposed when a caregiver comes into compliance with the requirements under section
11.25256.741 prior to the effective date of the sanction. The sanction is removed in the month
11.26following the month that the caregiver cooperates with the support requirements. Each
11.27month that an MFIP caregiver fails to comply with the requirements of section 256.741 is
11.28considered a separate occurrence of noncompliance for the purpose of applying sanctions
11.29under subdivision 3, paragraphs (e) and (f).

11.30    Sec. ... Minnesota Statutes 2006, section 256J.46, is amended by adding a subdivision
11.31to read:
11.32    Subd. 5. Simplified dual sanctions. (a) Beginning July 1, 2008, notwithstanding
11.33the provisions of subdivisions 3 and 4, for a participant subject to a sanction for refusal to
11.34comply with child support requirements under subdivision 4 and subject to a concurrent
11.35sanction for refusal to cooperate with other program requirements under subdivision 3,
11.36sanctions must be imposed in the manner prescribed in this subdivision. Any vendor
12.1payment of shelter costs or utilities under this subdivision must remain in effect for six
12.2months after the month in which the participant is no longer subject to sanction under
12.3subdivision 3.
12.4    (b) If the participant was subject to sanction for:
12.5    (1) noncompliance under subdivision 3 before being subject to sanction for
12.6noncooperation under subdivision 4; or
12.7    (2) noncooperation under subdivision 4 before being subject to sanction for
12.8noncompliance under subdivision 3,
12.9the participant is considered to have a second occurrence of noncompliance and is
12.10sanctioned as provided in subdivision 3, paragraph (e). Each subsequent occurrence of
12.11noncompliance is considered one additional occurrence and is subject to the applicable
12.12level of sanction under subdivision 3. The requirement that the county conduct a review
12.13as specified in subdivision 3, paragraph (f), remains in effect.
12.14    (c) A participant who first becomes subject to sanction under both subdivisions 3
12.15and 4 in the same month is subject to sanction as follows:
12.16    (1) in the first month of noncompliance and noncooperation, the participant's grant
12.17must be reduced by 30 percent of the applicable MFIP standard of need, with any residual
12.18amount paid to the participant;
12.19    (2) in the second and subsequent months of noncompliance and noncooperation,
12.20the participant is subject to the applicable level of sanction under subdivision 3. The
12.21requirement that the county conduct a review as specified in subdivision 3, paragraph
12.22(f), remains in effect.
12.23    (d) A participant remains subject to sanction under subdivision 4 if the participant:
12.24    (1) returns to compliance and is no longer subject to sanction for noncompliance
12.25with section 256J.45 or sections 256J.515 to 256J.57; or
12.26    (2) has the sanction for noncompliance with section 256J.45 or sections 256J.515 to
12.27256J.57 removed upon completion of the review under subdivision 3, paragraph (f).
12.28    (e) A participant remains subject to the applicable level of sanction under subdivision
12.293 if the participant cooperates and is no longer subject to sanction under subdivision 4."
12.30Page 15, delete section 19 and insert:

12.31    "Sec. ... Minnesota Statutes 2006, section 256J.49, subdivision 13, is amended to read:
12.32    Subd. 13. Work activity. "Work activity" means any activity in a participant's
12.33approved employment plan that leads to employment. For purposes of the MFIP program,
12.34this includes activities that meet the definition of work activity under the participation
12.35requirements of TANF. Work activity includes:
13.1    (1) unsubsidized employment, including work study and paid apprenticeships or
13.2internships;
13.3    (2) subsidized private sector or public sector employment, including grant diversion
13.4as specified in section 256J.69, on-the-job training as specified in section 256J.66,
13.5the self-employment investment demonstration program (SEID) as specified in section
13.6256J.65, paid work experience, and supported work when a wage subsidy is provided;
13.7    (3) unpaid work experience, including community service, volunteer work, the
13.8community service work experience program as specified in section 256J.67 256J.675,
13.9unpaid apprenticeships or internships, and supported work when a wage subsidy is not
13.10provided;
13.11    (4) job search including job readiness assistance, job clubs, job placement,
13.12job-related counseling, and job retention services;
13.13    (5) job readiness education, including English as a second language (ESL) or
13.14functional work literacy classes as limited by the provisions of section 256J.531,
13.15subdivision 2 , general educational development (GED) course work, high school
13.16completion, and adult basic education as limited by the provisions of section 256J.531,
13.17subdivision 1 ;
13.18    (6) job skills training directly related to employment, including education and
13.19training that can reasonably be expected to lead to employment, as limited by the
13.20provisions of section 256J.53;
13.21    (7) providing child care services to a participant who is working in a community
13.22service program;
13.23    (8) activities included in the employment plan that is developed under section
13.24256J.521, subdivision 3 ; and
13.25    (9) preemployment activities including chemical and mental health assessments,
13.26treatment, and services; learning disabilities services; child protective services; family
13.27stabilization services; or other programs designed to enhance employability.

13.28    Sec. ... Minnesota Statutes 2006, section 256J.50, subdivision 1, is amended to read:
13.29    Subdivision 1. Employment and training services component of MFIP. (a) Each
13.30county must develop and provide an employment and training services component which
13.31is designed to put participants on the most direct path to unsubsidized employment.
13.32Participation in these services is mandatory for all MFIP caregivers, unless the caregiver
13.33is exempt under section 256J.56.
13.34    (b) Effective July 1, 2008, a county must provide employment and training services
13.35under sections 256J.515 to 256J.74 within 30 ten days after the caregiver is determined
14.1eligible for MFIP, or within ten days when the caregiver participated in the diversionary
14.2work program under section 256J.95 within the past 12 months. "
14.3Page 16, delete section 20
14.4Page 18, delete section 22 and insert:

14.5    "Sec. ... Minnesota Statutes 2006, section 256J.531, is amended to read:
14.6256J.531 BASIC EDUCATION; ENGLISH AS A SECOND LANGUAGE.
14.7    Subdivision 1. Approval of adult basic education. With the exception of classes
14.8related to obtaining a general educational development credential (GED), a participant
14.9must have reading or mathematics proficiency below a ninth grade level in order for adult
14.10basic education classes to be an approved work activity. The employment plan must also
14.11specify that the participant fulfill no more than one-half of the participation requirements
14.12in section 256J.55, subdivision 1, through attending adult basic education or general
14.13educational development classes.
14.14    Subd. 2. Approval of English as a second language. In order for English as a
14.15second language (ESL) classes to be an approved work activity in an employment plan, a
14.16participant must be below a spoken language proficiency level of SPL6 or its equivalent,
14.17as measured by a nationally recognized test. In approving ESL as a work activity, the job
14.18counselor must give preference to enrollment in a functional work literacy program,
14.19if one is available, over a regular ESL program. A participant may not be approved
14.20for more than a combined total of 24 months of ESL classes while participating in the
14.21diversionary work program and the employment and training services component of
14.22MFIP. The employment plan must also specify that the participant fulfill no more than
14.23one-half of the participation requirements in section 256J.55, subdivision 1, through
14.24attending ESL classes. For participants enrolled in functional work literacy classes, no
14.25more than two-thirds of the participation requirements in section 256J.55, subdivision 1,
14.26may be met through attending functional work literacy classes.
14.27EFFECTIVE DATE.This section is effective October 1, 2007."
14.28Page 19, delete section 23
14.29Page 19, delete section 24 and insert:

14.30    "Sec. ... Minnesota Statutes 2006, section 256J.626, subdivision 7, is amended to read:
14.31    Subd. 7. Performance base funds. (a) Beginning calendar year 2005, each county
14.32and tribe will be allocated 95 percent of their initial calendar year allocation. Counties and
14.33tribes will be allocated additional funds based on performance as follows:
14.34    (1) for calendar year 2005, a county or tribe that achieves a 30 percent rate or higher
14.35on the MFIP participation rate under section 256J.751, subdivision 2, clause (8), as
15.1averaged across the four quarterly measurements for the most recent year for which the
15.2measurements are available, will receive an additional allocation equal to 2.5 percent of
15.3its initial allocation; and
15.4    (2) for calendar year 2006, a county or tribe that achieves a 40 percent rate or a
15.5five percentage point improvement over the previous year's MFIP participation rate
15.6under section 256J.751, subdivision 2, clause (8), as averaged across the four quarterly
15.7measurements for the most recent year for which the measurements are available, will
15.8receive an additional allocation equal to 2.5 percent of its initial allocation; and
15.9    (3) for calendar year 2007, a county or tribe that achieves a 50 percent rate or a
15.10five percentage point improvement over the previous year's MFIP participation rate
15.11under section 256J.751, subdivision 2, clause (8), as averaged across the four quarterly
15.12measurements for the most recent year for which the measurements are available, will
15.13receive an additional allocation equal to 2.5 percent of its initial allocation; and
15.14    (4) (1) for calendar year 2008, a county or tribe that achieves a 50 percent MFIP work
15.15participation rate as specified in the Personal Responsibility and Work Responsibility Act,
15.16Public Law 104-193, applied to all MFIP cases except child-only cases, as averaged across
15.17the four quarterly measurements for the most recent year for which the measurements are
15.18available, must receive an additional allocation equal to 2.5 percent of its initial allocation;
15.19    (2) for calendar year 2008 2009 and yearly thereafter, a county or tribe that achieves
15.20a 50 percent MFIP TANF work participation rate under section 256J.751, subdivision 2,
15.21clause (8) (7), as averaged across the four quarterly measurements for the most recent year
15.22for which the measurements are available, will receive an additional allocation equal
15.23to 2.5 percent of its initial allocation; and
15.24    (5) (3) for calendar years 2005 and thereafter, a county or tribe that performs above
15.25the top of its annualized range of expected performance on the three-year self-support
15.26index under section 256J.751, subdivision 2, clause (7) (6), will receive an additional
15.27allocation equal to five percent of its initial allocation; or
15.28    (6) (4) for calendar years 2005 and thereafter, a county or tribe that performs within
15.29its range of expected performance on the annualized three-year self-support index under
15.30section 256J.751, subdivision 2, clause (7) (6), will receive an additional allocation equal
15.31to 2.5 percent of its initial allocation.
15.32    (b) Performance-based funds for a federally approved tribal TANF program in which
15.33the state and tribe have in place a contract under section 256.01, addressing consolidated
15.34funding, will be allocated as follows:
15.35    (1) for calendar year 2006 and yearly thereafter, a tribe that achieves the participation
15.36rate approved in its federal TANF plan using the average of four quarterly measurements
16.1for the most recent year for which the measurements are available, will receive an
16.2additional allocation equal to 2.5 percent of its initial allocation; and
16.3    (2) for calendar years 2006 and thereafter, a tribe that performs above the top of its
16.4annualized range of expected performance on the three-year self-support index under
16.5section 256J.751, subdivision 2, clause (7) (6), will receive an additional allocation equal
16.6to five percent of its initial allocation; or
16.7    (3) for calendar years 2006 and thereafter, a tribe that performs within its range
16.8of expected performance on the annualized three-year self-support index under section
16.9256J.751, subdivision 2 , clause (7) (6), will receive an additional allocation equal to 2.5
16.10percent of its initial allocation.
16.11    (c) Funds remaining unallocated after the performance-based allocations in
16.12paragraph (a) are available to the commissioner for innovation projects under subdivision
16.135.
16.14    (d)(1) If available funds are insufficient to meet county and tribal allocations
16.15under paragraph (a), the commissioner may make available for allocation funds that are
16.16unobligated and available from the innovation projects through the end of the current
16.17biennium.
16.18    (2) If after the application of clause (1) funds remain insufficient to meet county and
16.19tribal allocations under paragraph (a), the commissioner must proportionally reduce the
16.20allocation of each county and tribe with respect to their maximum allocation available
16.21under paragraph (a).

16.22    Sec. ... Minnesota Statutes 2006, section 256J.626, is amended by adding a subdivision
16.23to read:
16.24    Subd. 10. Specialized employment. Beginning July 1, 2007, the commissioner
16.25shall make funds available annually to counties and tribes to develop paid and unpaid
16.26work experience positions for MFIP participants with no recent work history. The
16.27commissioner shall develop a process for approving requests and allocating funding in
16.28consultation with the counties and tribes.

16.29    Sec. ... [256J.675] COMMUNITY SERVICE WORK EXPERIENCE.
16.30    Subdivision 1. Employment options. Community service work experience
16.31positions developed under this section are limited to projects that serve a useful public
16.32service such as health care, social service, environmental protection, education, urban and
16.33rural development and redevelopment, welfare, recreation, public facilities, public safety,
16.34community service, services to aged or disabled citizens, and child care. To the extent
16.35possible, the prior training, skills, and experience of a participant must be considered in
16.36making appropriate work experience assignments.
17.1    Subd. 2. Placing participants in community service work experience. As a
17.2condition of placing a participant in a program under this section, the county agency
17.3shall ensure that:
17.4    (1) a participant is first given the opportunity for placement in suitable unsubsidized
17.5employment through participation in job search, or through participation in on-the-job
17.6training if such employment is available;
17.7    (2) after three months of participation in a community service work experience
17.8placement, and at the conclusion of each community service work experience assignment
17.9under this section, the participant's employment plan is revised as appropriate;
17.10    (3) the maximum number of hours any participant works under this section does not
17.11exceed the amount of the MFIP grant, cash and food support, divided by the federal or
17.12applicable state minimum wage, whichever is higher; and
17.13    (4) a participant does not continue in a community work experience placement
17.14for more than nine months unless the maximum number of hours worked is no greater
17.15than the amount of the MFIP grant, cash and food support, divided by the rate of pay
17.16for individuals employed in the same or similar occupations by the same employer at
17.17the same site. This limit does not apply if it would prevent a participant from counting
17.18toward the federal work participation rate.

17.19    Sec. ... [256J.678] INJURY PROTECTION FOR COMMUNITY SERVICE
17.20WORK EXPERIENCE PARTICIPANTS.
17.21    Subdivision 1. Authority. The Department of Administration, in consultation with
17.22the Department of Human Services, shall contract with an approved insurance carrier to
17.23provide coverage for injuries or death resulting from a person's participation in paid and
17.24unpaid community work experience programs authorized by the commissioner for persons
17.25applying for or receiving DWP, MFIP, or food stamps, and participating in the Minnesota
17.26parent's fair share program and the community service program under section 518.551,
17.27subdivision 5a, in a county with an approved community investment program for obligors.
17.28    Subd. 2. Claims. Claims that are subject to this section must be reported to the
17.29insurance carrier in a format approved by the carrier by the department of the state, county
17.30agency, or tribal program responsible for supervising the work.
17.31    Subd. 3. Exclusive procedure. The procedure established by this section
17.32is exclusive of all other legal, equitable, and statutory remedies against the state,
17.33employees of the state, or the state's political subdivisions. The claimant is not entitled
17.34to seek damages from any other state, county, tribal, or reservation insurance policy or
17.35self-insurance program.
18.1    Subd. 4. Requirements for worksites. The department of the state, county agency,
18.2or tribal program responsible for supervising the work shall ensure that no participant is
18.3assigned to a worksite which is in violation of federal Occupational Safety and Health
18.4Administration and state Department of Labor and Industry safety standards or is under
18.5investigation to determine if those violations have occurred. All participants must be
18.6given the same safety information and training given to a paid employee performing
18.7similar work at that worksite."
18.8Page 23, delete section 27
18.9Page 24, delete section 28 and insert:

18.10    "Sec. ... Minnesota Statutes 2006, section 256J.95, subdivision 15, is amended to read:
18.11    Subd. 15. Limitations on certain work activities. (a) Except as specified in
18.12paragraphs (b) to (d), employment activities listed in section 256J.49, subdivision 13, are
18.13allowable under the diversionary work program.
18.14    (b) Work activities under section 256J.49, subdivision 13, clause (5), shall be
18.15allowable only when in combination with approved work activities under section 256J.49,
18.16subdivision 13 , clauses (1) to (4), and shall be limited to no more than one-half of the
18.17hours required in the employment plan.
18.18    (c) (b) In order for an English as a second language (ESL) class or Functional Work
18.19Literacy under section 256J.49, subdivision 13, clause (5), to be an approved work
18.20activity, a participant must:
18.21    (1) be below a spoken language proficiency level of SPL6 or its equivalent, as
18.22measured by a nationally recognized test; and
18.23    (2) not have been enrolled in ESL for more than 24 months while previously
18.24participating in MFIP or DWP. A participant who has been enrolled in ESL for 20 or more
18.25months may be approved for ESL until the participant has received 24 total months.
18.26    (d) (c) Work activities under section 256J.49, subdivision 13, clause (6), shall be
18.27allowable only when the training or education program will be completed within the
18.28four-month DWP period. Training or education programs that will not be completed
18.29within the four-month DWP period shall not be approved. "
18.30Page 29, delete section 38 and insert:

18.31    "Sec. ... REPEALER.
18.32(a) Minnesota Statutes 2006, sections 256J.67; and 256J.68, are repealed effective
18.33June 30, 2007.
18.34(b) Minnesota Statutes 2006, sections 256J.425, subdivisions 6 and 7; and 256J.46,
18.35subdivisions 1, 2, and 2a, are repealed effective June 30, 2008.
18.36(c) Minnesota Statutes 2006, section 256J.29, is repealed."
19.1Page 115, after line 32, insert:

19.2    "Sec. 30. Minnesota Statutes 2006, section 256B.434, is amended by adding a
19.3subdivision to read:
19.4    Subd. 4n. Rate increase for facilities in Wright, Mille Lacs, and Isanti counties.
19.5    Effective October 1, 2007, operating payment rates of all nursing facilities in Wright,
19.6Mille Lacs, and Isanti counties that are reimbursed under this section or section 256B.441
19.7shall be increased to be equal, for a RUG's rate with a weight of 1.00, to the geographic
19.8group III median rate for the same RUG's weight. The percentage of the operating
19.9payment rate for each facility to be case-mix adjusted shall be equal to the percentage that
19.10is case-mix adjusted in that facility's September 30, 2007, operating payment rate. This
19.11subdivision shall apply only if it results in a rate increase. Increases provided by this
19.12subdivision shall be added to the rate determined under any new reimbursement system
19.13established under section 256B.441."
19.14Page 224, line 9, delete "$4,269,000" and insert "$7,269,000"
19.15Page 224, after line 12 insert:
19.16"TANF Transfer to Federal Child Care
19.17and Development Fund. The following
19.18TANF fund amount is appropriated to the
19.19commissioner for the purposes of MFIP
19.20transition year child care under MFIP,
19.21Minnesota Statutes, section 119B.05: fiscal
19.22year 2008, $3,000,000
19.23The commissioner shall authorize transfer
19.24of sufficient TANF funds to the federal
19.25Child Care and Development Fund to meet
19.26this appropriation and shall ensure that all
19.27transferred funds are expended according the
19.28federal Child Care and Development Fund
19.29regulations."
19.30Renumber the sections in sequence and correct the internal references
19.31Amend the title accordingly