Bill Text: MN SF2658 | 2013-2014 | 88th Legislature | Engrossed

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Bill Title: Human services uniform public assistance program eligibility and verification establishment

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2014-03-27 - Author added Sheran [SF2658 Detail]

Download: Minnesota-2013-SF2658-Engrossed.html

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A bill for an act

relating to human services; establishing uniform public assistance program
eligibility and verification;amending Minnesota Statutes 2012, sections 254B.04,
subdivision 3; 256D.02, subdivisions 8, 12; 256D.05, subdivision 5; 256D.06,
subdivision 1; 256D.08, subdivision 1, by adding a subdivision; 256D.10;
256D.405, subdivisions 1, 3; 256D.425, subdivision 2; 256I.03, by adding
a subdivision; 256I.04, subdivision 1; 256J.08, subdivisions 47, 57, 83, by
adding a subdivision; 256J.10; 256J.21, subdivision 4; 256J.30, subdivision 4;
256J.32, subdivision 1; 256J.33, subdivision 2; 256J.37, as amended; 256J.425,
subdivisions 1, 7; 256J.95, subdivisions 8, 9, 10; Minnesota Statutes 2013
Supplement, sections 256J.21, subdivision 3; 256J.30, subdivision 9; proposing
coding for new law as Minnesota Statutes, chapter 256P; repealing Minnesota
Statutes 2012, sections 256D.06, subdivision 1b; 256D.08, subdivision 2;
256D.405, subdivisions 1a, 2; 256J.08, subdivisions 42, 55a, 82a; 256J.20;
256J.24, subdivision 9; 256J.32, subdivisions 2, 3, 4, 5a, 6, 7, 7a, 8; Minnesota
Statutes 2013 Supplement, section 256J.08, subdivision 24.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

    Section 1. Minnesota Statutes 2012, section 254B.04, subdivision 3, is amended to read:
    Subd. 3. Amount of contribution. The commissioner shall adopt a sliding fee scale
to determine the amount of contribution to be required from persons under this section.
The commissioner may adopt rules to amend existing fee scales. The commissioner
may establish a separate fee scale for recipients of chemical dependency transitional and
extended care rehabilitation services that provides for the collection of fees for board and
lodging expenses. The fee schedule shall ensure that employed persons are allowed the
income disregards and savings accounts that are allowed residents of community mental
illness facilities under section 256D.06, subdivisions subdivision 1 and 1b. The fee scale
must not provide assistance to persons whose income is more than 115 percent of the
state median income. Payments of liabilities under this section are medical expenses for
purposes of determining spenddown under sections 256B.055, 256B.056, 256B.06, and
256D.01 to 256D.21. The required amount of contribution established by the fee scale in
this subdivision is also the cost of care responsibility subject to collection under section
254B.06, subdivision 1 .
EFFECTIVE DATE.This section is effective October 1, 2015.

    Sec. 2. Minnesota Statutes 2012, section 256D.02, subdivision 8, is amended to read:
    Subd. 8. Income. "Income" means any form of income, including remuneration
for services performed as an employee and net earnings earned income from rental
income and self-employment earnings, reduced by the amount attributable to employment
expenses as defined by the commissioner. The amount attributable to employment
expenses shall include amounts paid or withheld for federal and state personal income
taxes and federal Social Security taxes as described under section 256P.05.
Income includes any payments received as an annuity, retirement, or disability
benefit, including veteran's or workers' compensation; old age, survivors, and disability
insurance; railroad retirement benefits; unemployment benefits; and benefits under any
federally aided categorical assistance program, supplementary security income, or other
assistance program; rents, dividends, interest and royalties; and support and maintenance
payments. Such payments may not be considered as available to meet the needs of any
person other than the person for whose benefit they are received, unless that person is
a family member or a spouse and the income is not excluded under section 256D.01,
subdivision 1a . Goods and services provided in lieu of cash payment shall be excluded
from the definition of income, except that payments made for room, board, tuition or
fees by a parent, on behalf of a child enrolled as a full-time student in a postsecondary
institution, and payments made on behalf of an applicant or recipient participant which
the applicant or recipient participant could legally demand to receive personally in cash,
must be included as income. Benefits of an applicant or recipient participant, such as those
administered by the Social Security Administration, that are paid to a representative
payee, and are spent on behalf of the applicant or recipient participant, are considered
available income of the applicant or recipient participant.
EFFECTIVE DATE.This section is effective February 1, 2015.

    Sec. 3. Minnesota Statutes 2012, section 256D.02, subdivision 12, is amended to read:
    Subd. 12. County Agency. "County agency" means the agency designated by the
county board of commissioners, human services boards, local social services agencies
in the several counties of the state or multicounty local social services agencies or
departments where those have been established in accordance with law "Agency" has the
meaning given in section 256P.01, subdivision 2.

    Sec. 4. Minnesota Statutes 2012, section 256D.05, subdivision 5, is amended to read:
    Subd. 5. Transfers of property. The equity value of real and personal property
transferred without reasonable compensation within 12 months preceding the date of
application for general assistance must be included in determining the resources of an
assistance unit in the same manner as in the Minnesota family investment program under
chapter 256J as described in section 256P.02, subdivision 1, paragraph (c).

    Sec. 5. Minnesota Statutes 2012, section 256D.06, subdivision 1, is amended to read:
    Subdivision 1. Eligibility; amount of assistance. General assistance shall be
granted in an amount that when added to the nonexempt income actually available to the
assistance unit, the total amount equals the applicable standard of assistance for general
assistance. In determining eligibility for and the amount of assistance for an individual or
married couple, the county agency shall apply the earned income disregard the first $50 of
earned income per month as determined in section 256P.03.
EFFECTIVE DATE.This section is effective October 1, 2015.

    Sec. 6. Minnesota Statutes 2012, section 256D.08, subdivision 1, is amended to read:
    Subdivision 1. Eligibility; excluded resources. In determining eligibility of an
assistance unit, the following resources shall be excluded:
(1) real or personal property or liquid assets which do not exceed $1,000; and
(2) other property which has been determined, according to limitations contained in
rules promulgated by the commissioner, to be essential to the assistance unit as a means of
self-support or self-care or which is producing income that is being used for the support
of the assistance unit. The commissioner shall further provide by rule the conditions for
those situations in which property not excluded under this subdivision may be retained by
the assistance unit where there is a reasonable probability that in the foreseeable future the
property will be used for the self-support of the assistance unit; and
(3) payments, made according to litigation and subsequent appropriation by the
United States Congress, of funds to compensate members of Indian tribes for the taking of
tribal land by the federal government. To establish eligibility for general assistance under
this chapter, an agency must use the procedures established in section 256P.02.
EFFECTIVE DATE.This section is effective January 1, 2016.

    Sec. 7. Minnesota Statutes 2012, section 256D.08, is amended by adding a subdivision
to read:
    Subd. 3. Verification. To verify eligibility for general assistance under this chapter,
an agency must use the procedures established in section 256P.04.
EFFECTIVE DATE.This section is effective January 1, 2016.

    Sec. 8. Minnesota Statutes 2012, section 256D.10, is amended to read:
256D.10 ADMINISTRATIVE HEARING PRIOR TO ADVERSE ACTION.
No grant of general assistance except one made pursuant to section 256D.06,
subdivision 2 ; or 256D.08, subdivision 2, shall be reduced, terminated, or suspended
unless the recipient receives notice and is afforded an opportunity to be heard prior to
any action by the county agency.
Nothing herein shall deprive a recipient of the right to full administrative and judicial
review of an order or determination of a county agency as provided for in section 256.045
subsequent to any action taken by a county agency after a prior hearing.
EFFECTIVE DATE.This section is effective January 1, 2016.

    Sec. 9. Minnesota Statutes 2012, section 256D.405, subdivision 1, is amended to read:
    Subdivision 1. Verification of information. The county agency shall request, and
applicants and recipients shall provide and verify, all information necessary to determine
initial and continuing eligibility and assistance payment amounts. If necessary, the county
agency shall assist the applicant or recipient in obtaining verifications. If the applicant or
recipient refuses or fails without good cause to provide the information or verification, the
county agency shall deny or terminate assistance An agency must apply section 256P.04
when documenting, verifying, and recertifying eligibility under this chapter. An agency
must only require verification of information necessary to determine eligibility under this
chapter and the amount of the assistance payment.
EFFECTIVE DATE.This section is effective February 1, 2015.

    Sec. 10. Minnesota Statutes 2012, section 256D.405, subdivision 3, is amended to read:
    Subd. 3. Reports. Recipients Participants must report changes in circumstances that
affect eligibility or assistance payment amounts within ten days of the change. Recipients
Participants who do not receive SSI because of excess income must complete a monthly
report form if they have earned income, if they have income deemed to them from a
financially responsible relative with whom the recipient participant resides, or if they have
income deemed to them by a sponsor. If the report form is not received before the end of
the month in which it is due, the county agency must terminate assistance. The termination
shall be effective on the first day of the month following the month in which the report
was due. If a complete report is received within the month the assistance was terminated,
the assistance unit is considered to have continued its application for assistance, effective
the first day of the month the assistance was terminated.
EFFECTIVE DATE.This section is effective February 1, 2015.

    Sec. 11. Minnesota Statutes 2012, section 256D.425, subdivision 2, is amended to read:
    Subd. 2. Resource standards. (a) For persons receiving supplemental security
income benefits, the resource standards and restrictions for supplemental aid under
this section shall be those used to determine eligibility for disabled individuals in the
supplemental security income program.
(b) For persons not receiving supplemental security income benefits due to excess
income or resources, but whose income and resources are within the limits of the Minnesota
supplemental aid program, the resource standards shall be those in section 256P.02.

    Sec. 12. Minnesota Statutes 2012, section 256I.03, is amended by adding a subdivision
to read:
    Subd. 1a. Agency. "Agency" has the meaning given in section 256P.01, subdivision
2.

    Sec. 13. Minnesota Statutes 2012, section 256I.04, subdivision 1, is amended to read:
    Subdivision 1. Individual eligibility requirements. An individual is eligible for
and entitled to a group residential housing payment to be made on the individual's behalf
if the county agency has approved the individual's residence in a group residential housing
setting and the individual meets the requirements in paragraph (a) or (b).
(a) The individual is aged, blind, or is over 18 years of age and disabled as
determined under the criteria used by the title II program of the Social Security Act, and
meets the resource restrictions and standards of the supplemental security income program
section 256P.02, and the individual's countable income after deducting the (1) exclusions
and disregards of the SSI program, (2) the medical assistance personal needs allowance
under section 256B.35, and (3) an amount equal to the income actually made available to
a community spouse by an elderly waiver recipient participant under the provisions of
sections 256B.0575, paragraph (a), clause (4), and 256B.058, subdivision 2, is less than
the monthly rate specified in the county agency's agreement with the provider of group
residential housing in which the individual resides.
(b) The individual meets a category of eligibility under section 256D.05, subdivision
1 , paragraph (a), and the individual's resources are less than the standards specified by
section 256D.08 256P.02, and the individual's countable income as determined under
sections 256D.01 to 256D.21, less the medical assistance personal needs allowance under
section 256B.35 is less than the monthly rate specified in the county agency's agreement
with the provider of group residential housing in which the individual resides.
EFFECTIVE DATE.This section is effective January 1, 2016.

    Sec. 14. Minnesota Statutes 2012, section 256J.08, is amended by adding a subdivision
to read:
    Subd. 2a. Agency. "Agency" has the meaning given in section 256P.01, subdivision
2.

    Sec. 15. Minnesota Statutes 2012, section 256J.08, subdivision 47, is amended to read:
    Subd. 47. Income. "Income" means cash or in-kind benefit, whether earned or
unearned, received by or available to an applicant or participant that is not an asset
property under section 256J.20 256P.02.
EFFECTIVE DATE.This section is effective January 1, 2016.

    Sec. 16. Minnesota Statutes 2012, section 256J.08, subdivision 57, is amended to read:
    Subd. 57. Minnesota family investment program or MFIP. "Minnesota family
investment program" or "MFIP" means the assistance program authorized in this chapter
and chapter 256K.

    Sec. 17. Minnesota Statutes 2012, section 256J.08, subdivision 83, is amended to read:
    Subd. 83. Significant change. "Significant change" means a decline in gross
income of the amount of the disregard as defined in subdivision 24 section 256P.03 or
more from the income used to determine the grant for the current month.
EFFECTIVE DATE.This section is effective January 1, 2015.

    Sec. 18. Minnesota Statutes 2012, section 256J.10, is amended to read:
256J.10 MFIP ELIGIBILITY REQUIREMENTS.
To be eligible for MFIP, applicants must meet the general eligibility requirements
in sections 256J.11 to 256J.15, the property limitations in section 256J.20 256P.02, and
the income limitations in section 256J.21.
EFFECTIVE DATE.This section is effective January 1, 2016.

    Sec. 19. Minnesota Statutes 2013 Supplement, section 256J.21, subdivision 3, is
amended to read:
    Subd. 3. Initial income test. The county agency shall determine initial eligibility
by considering all earned and unearned income that is not excluded under subdivision 2.
To be eligible for MFIP, the assistance unit's countable income minus the earned income
disregards in paragraphs paragraph (a) and (b) section 256P.03 must be below the family
wage level according to section 256J.24 for that size assistance unit.
(a) The initial eligibility determination must disregard the following items:
(1) the employment earned income disregard is 18 percent of the gross earned
income whether or not the member is working full time or part time as determined in
section 256P.03;
(2) dependent care costs must be deducted from gross earned income for the actual
amount paid for dependent care up to a maximum of $200 per month for each child less
than two years of age, and $175 per month for each child two years of age and older under
this chapter and chapter 119B;
(3) all payments made according to a court order for spousal support or the support
of children not living in the assistance unit's household shall be disregarded from the
income of the person with the legal obligation to pay support, provided that, if there has
been a change in the financial circumstances of the person with the legal obligation to pay
support since the support order was entered, the person with the legal obligation to pay
support has petitioned for a modification of the support order; and
(4) an allocation for the unmet need of an ineligible spouse or an ineligible child
under the age of 21 for whom the caregiver is financially responsible and who lives with
the caregiver according to section 256J.36.
(b) Notwithstanding paragraph (a), when determining initial eligibility for applicant
units when at least one member has received MFIP in this state within four months of
the most recent application for MFIP, apply the disregard as defined in section 256J.08,
subdivision 24 , for all unit members.
After initial eligibility is established, the assistance payment calculation is based on
the monthly income test.
EFFECTIVE DATE.This section is effective October 1, 2015.

    Sec. 20. Minnesota Statutes 2012, section 256J.21, subdivision 4, is amended to read:
    Subd. 4. Monthly income test and determination of assistance payment.
The county agency shall determine ongoing eligibility and the assistance payment
amount according to the monthly income test. To be eligible for MFIP, the result of the
computations in paragraphs (a) to (e) must be at least $1.
(a) Apply an income disregard as defined in section 256J.08, subdivision 24 256P.03,
to gross earnings and subtract this amount from the family wage level. If the difference is
equal to or greater than the MFIP transitional standard of need, the assistance payment is
equal to the MFIP transitional standard of need. If the difference is less than the MFIP
transitional standard of need, the assistance payment is equal to the difference. The
employment earned income disregard in this paragraph must be deducted every month
there is earned income.
(b) All payments made according to a court order for spousal support or the support
of children not living in the assistance unit's household must be disregarded from the
income of the person with the legal obligation to pay support, provided that, if there has
been a change in the financial circumstances of the person with the legal obligation to pay
support since the support order was entered, the person with the legal obligation to pay
support has petitioned for a modification of the court order.
(c) An allocation for the unmet need of an ineligible spouse or an ineligible child
under the age of 21 for whom the caregiver is financially responsible and who lives with
the caregiver must be made according to section 256J.36.
(d) Subtract unearned income dollar for dollar from the MFIP transitional standard
of need to determine the assistance payment amount.
(e) When income is both earned and unearned, the amount of the assistance payment
must be determined by first treating gross earned income as specified in paragraph (a).
After determining the amount of the assistance payment under paragraph (a), unearned
income must be subtracted from that amount dollar for dollar to determine the assistance
payment amount.
(f) When the monthly income is greater than the MFIP transitional standard of need
after deductions and the income will only exceed the standard for one month, the county
agency must suspend the assistance payment for the payment month.
EFFECTIVE DATE.This section is effective October 1, 2015.

    Sec. 21. Minnesota Statutes 2012, section 256J.30, subdivision 4, is amended to read:
    Subd. 4. Participant's completion of recertification of eligibility form. A
participant must complete forms prescribed by the commissioner which are required
for recertification of eligibility according to section 256J.32, subdivision 6 256P.04,
subdivisions 8 and 9.
EFFECTIVE DATE.This section is effective February 1, 2015.

    Sec. 22. Minnesota Statutes 2013 Supplement, section 256J.30, subdivision 9, is
amended to read:
    Subd. 9. Changes that must be reported. A caregiver must report the changes
or anticipated changes specified in clauses (1) to (16) (15) within ten days of the date
they occur, at the time of the periodic recertification of eligibility under section 256J.32,
subdivision 6 256P.04, subdivisions 8 and 9, or within eight calendar days of a reporting
period as in subdivision 5, whichever occurs first. A caregiver must report other changes
at the time of the periodic recertification of eligibility under section 256J.32, subdivision
6 256P.04, subdivisions 8 and 9, or at the end of a reporting period under subdivision
5, as applicable. A caregiver must make these reports in writing to the county agency.
When a county an agency could have reduced or terminated assistance for one or more
payment months if a delay in reporting a change specified under clauses (1) to (15) (14)
had not occurred, the county agency must determine whether a timely notice under section
256J.31, subdivision 4 , could have been issued on the day that the change occurred. When
a timely notice could have been issued, each month's overpayment subsequent to that
notice must be considered a client error overpayment under section 256J.38. Calculation
of overpayments for late reporting under clause (16) (15) is specified in section 256J.09,
subdivision 9 . Changes in circumstances which must be reported within ten days must
also be reported on the MFIP household report form for the reporting period in which
those changes occurred. Within ten days, a caregiver must report:
(1) a change in initial employment;
(2) a change in initial receipt of unearned income;
(3) a recurring change in unearned income;
(4) a nonrecurring change of unearned income that exceeds $30;
(5) the receipt of a lump sum;
(6) an increase in assets that may cause the assistance unit to exceed asset limits;
(7) a change in the physical or mental status of an incapacitated member of the
assistance unit if the physical or mental status is the basis for reducing the hourly
participation requirements under section 256J.55, subdivision 1, or the type of activities
included in an employment plan under section 256J.521, subdivision 2;
(8) a change in employment status;
(9) information affecting an exception under section 256J.24, subdivision 9;
(10) (9) the marriage or divorce of an assistance unit member;
(11) (10) the death of a parent, minor child, or financially responsible person;
(12) (11) a change in address or living quarters of the assistance unit;
(13) (12) the sale, purchase, or other transfer of property;
(14) (13) a change in school attendance of a caregiver under age 20 or an employed
child;
(15) (14) filing a lawsuit, a workers' compensation claim, or a monetary claim
against a third party; and
(16) (15) a change in household composition, including births, returns to and
departures from the home of assistance unit members and financially responsible persons,
or a change in the custody of a minor child.
EFFECTIVE DATE.This section is effective January 1, 2015.

    Sec. 23. Minnesota Statutes 2012, section 256J.32, subdivision 1, is amended to read:
    Subdivision 1. Verification of information. A county An agency must apply section
256P.04 when documenting, verifying, and recertifying MFIP eligibility. An agency must
only require verification of information necessary to determine MFIP eligibility and the
amount of the assistance payment.
EFFECTIVE DATE.This section is effective February 1, 2015.

    Sec. 24. Minnesota Statutes 2012, section 256J.33, subdivision 2, is amended to read:
    Subd. 2. Prospective eligibility. A county An agency must determine whether the
eligibility requirements that pertain to an assistance unit, including those in sections
256J.11 to 256J.15 and 256J.20 256P.02, will be met prospectively for the payment
month. Except for the provisions in section 256J.34, subdivision 1, the income test will be
applied retrospectively.
EFFECTIVE DATE.This section is effective January 1, 2016.

    Sec. 25. Minnesota Statutes 2012, section 256J.37, as amended by Laws 2013, chapter
107, article 4, section 15, is amended to read:
256J.37 TREATMENT OF INCOME AND LUMP SUMS.
    Subdivision 1. Deemed income from ineligible household assistance unit
members. Unless otherwise provided under subdivision 1a or 1b, The income of ineligible
household assistance unit members must be deemed after allowing the following disregards:
(1) the first 18 percent of the ineligible family member's gross an earned income
disregard as determined under section 256P.03;
(2) amounts the ineligible person actually paid to individuals not living in the
same household but whom the ineligible person claims or could claim as dependents for
determining federal personal income tax liability;
(3) (2) all payments made by the ineligible person according to a court order for
spousal support or the support of children not living in the assistance unit's household,
provided that, if there has been a change in the financial circumstances of the ineligible
person since the support order was entered, the ineligible person has petitioned for a
modification of the support order; and
(4) (3) an amount for the unmet needs of the ineligible person and other persons
who live in the household but are not included in the assistance unit and are or could be
claimed by an ineligible person as dependents for determining federal personal income
tax liability who, if eligible, would be assistance unit members under section 256J.24,
subdivision 2 or 4, paragraph (b). This amount is equal to the difference between the
MFIP transitional standard of need when the ineligible person is persons are included in
the assistance unit and the MFIP transitional standard of need when the ineligible person
is persons are not included in the assistance unit.
    Subd. 1a. Deemed income from disqualified assistance unit members. The
income of disqualified members must be deemed after allowing the following disregards:
(1) the first 18 percent of the disqualified member's gross an earned income disregard
as determined under section 256P.03;
(2) amounts the disqualified member actually paid to individuals not living in the
same household but whom the disqualified member claims or could claim as dependents
for determining federal personal income tax liability;
(3) (2) all payments made by the disqualified member according to a court order for
spousal support or the support of children not living in the assistance unit's household,
provided that, if there has been a change in the financial circumstances of the disqualified
member's legal obligation to pay support since the support order was entered, the
disqualified member has petitioned for a modification of the support order; and
(4) (3) an amount for the unmet needs of other ineligible persons who live in the
household but are not included in the assistance unit and are or could be claimed by the
disqualified member as dependents for determining federal personal income tax liability
who, if eligible, would be assistance unit members under section 256J.24, subdivision 2 or
4, paragraph (b). This amount is equal to the difference between the MFIP transitional
standard of need when the ineligible person is persons are included in the assistance unit
and the MFIP transitional standard of need when the ineligible person is persons are
not included in the assistance unit. An amount shall not be allowed for the needs of a
disqualified member members.
    Subd. 1b. Deemed income from parents of minor caregivers. In households
where minor caregivers live with a parent or parents who do not receive MFIP for
themselves or their minor children, the income of the parents must be deemed after
allowing the following disregards:
(1) income of the parents equal to 200 percent of the federal poverty guideline for a
family size not including the minor parent and the minor parent's child in the household
according to section 256J.21, subdivision 2, clause (43); and
(2) 18 percent of the parents' gross earned income;
(3) amounts the parents actually paid to individuals not living in the same household
but whom the parents claim or could claim as dependents for determining federal personal
income tax liability; and
(4) (2) all payments made by parents according to a court order for spousal support
or the support of children not living in the parent's household, provided that, if there has
been a change in the financial circumstances of the parent's legal obligation to pay support
since the support order was entered, the parents have petitioned for a modification of
the support order.
    Subd. 2. Deemed income and assets of sponsor of noncitizens. (a) If a noncitizen
applies for or receives MFIP, the county agency must deem the income and assets of the
noncitizen's sponsor and the sponsor's spouse as provided in this paragraph and paragraph
(b) or (c), whichever is applicable. The deemed income of a sponsor and the sponsor's
spouse is considered unearned income of the noncitizen. The deemed assets of a sponsor
and the sponsor's spouse are considered available assets of the noncitizen.
(b) The income and assets of a sponsor who signed an affidavit of support under title
IV, sections 421, 422, and 423, of Public Law 104-193, the Personal Responsibility and
Work Opportunity Reconciliation Act of 1996, and the income and assets of the sponsor's
spouse, must be deemed to the noncitizen to the extent required by those sections of
Public Law 104-193.
(c) The income and assets of a sponsor and the sponsor's spouse to whom the
provisions of paragraph (b) do not apply must be deemed to the noncitizen to the full
extent allowed under title V, section 5505, of Public Law 105-33, the Balanced Budget
Act of 1997.
    Subd. 3. Earned income of wage, salary, and contractual employees. The county
agency must include gross earned income less any disregards in the initial and monthly
income test. Gross earned income received by persons employed on a contractual basis
must be prorated over the period covered by the contract even when payments are received
over a lesser period of time.
    Subd. 3a. Rental subsidies; unearned income. (a) Effective July 1, 2003, the
county agency shall count $50 of the value of public and assisted rental subsidies provided
through the Department of Housing and Urban Development (HUD) as unearned income
to the cash portion of the MFIP grant. The full amount of the subsidy must be counted as
unearned income when the subsidy is less than $50. The income from this subsidy shall
be budgeted according to section 256J.34.
(b) The provisions of this subdivision shall not apply to an MFIP assistance unit
which includes a participant who is:
(1) age 60 or older;
(2) a caregiver who is suffering from an illness, injury, or incapacity that has been
certified by a qualified professional when the illness, injury, or incapacity is expected
to continue for more than 30 days and severely limits the person's ability to obtain or
maintain suitable employment; or
(3) a caregiver whose presence in the home is required due to the illness or
incapacity of another member in the assistance unit, a relative in the household, or a foster
child in the household when the illness or incapacity and the need for the participant's
presence in the home has been certified by a qualified professional and is expected to
continue for more than 30 days.
(c) The provisions of this subdivision shall not apply to an MFIP assistance unit
where the parental caregiver is an SSI recipient participant.
    Subd. 4. Self-employment. Self-employed individuals are those who are
responsible for their own work schedule and do not have coverage under an employer's
liability insurance or workers' compensation. Self-employed individuals generally work
for themselves rather than an employer. However, individuals employed in some types of
services may be self-employed even if they have an employer or work out of another's
business location. For example, real estate sales people, individuals who work for
commission sales, manufacturer's representatives, and independent contractors may be
self-employed. Self-employed individuals may or may not have FICA deducted from the
check issued to them by an employer or another party.
Self-employed individuals may own a business singularly or in partnership.
Individuals operating more than one self-employment business may use the loss from
one business to offset self-employment income from another business. A loss from a
self-employment business may not offset income earned under subdivision 3.
Self-employment has the meaning given in section 256P.01, subdivision 7.
    Subd. 5. Self-employment earnings. The county agency must determine
self-employment income according to the following: section 256P.05, subdivision 2.
(a) Subtract allowable business expenses from total gross receipts. Allowable
business expenses include:
(1) interest on mortgages and loans;
(2) employee wages, except for persons who are part of the assistance unit or whose
income is deemed to the participant;
(3) FICA funds paid on employees' wages, payment of employee workers'
compensation, and unemployment benefits;
(4) livestock and veterinary or breeding fees;
(5) raw material;
(6) seed and fertilizer;
(7) maintenance and repairs that are not capital expenditures;
(8) tax return preparation fees;
(9) license fees, professional fees, franchise fees, and professional dues;
(10) tools and supplies that are not capital expenditures;
(11) fuel and transportation expenses other than fuel costs covered by the flat rate
transportation deduction;
(12) advertising costs;
(13) meals eaten when required to be away from the local work site;
(14) property expenses such as rent, insurance, taxes, and utilities;
(15) postage;
(16) purchase cost of inventory at time of sale;
(17) loss from another self-employment business;
(18) attorney fees allowed by the Internal Revenue Service; and
(19) tuition for classes necessary to maintain or improve job skills or required by
law to maintain job status or salary as allowed by the Internal Revenue Service.
(b) The county agency shall not allow a deduction for the following expenses:
(1) purchases of capital assets;
(2) payments on the principals of loans for capital assets;
(3) depreciation;
(4) amortization;
(5) the wholesale costs of items purchased, processed, or manufactured which are
unsold inventory;
(6) transportation costs that exceed the maximum standard mileage rate allowed for
use of a personal car in the Internal Revenue Code;
(7) costs, in any amount, for mileage between an applicant's or participant's home
and place of employment;
(8) salaries and other employment deductions made for members of an assistance
unit or persons who live in the household for whom an employer is legally responsible;
(9) monthly expenses in excess of $71 for each roomer;
(10) monthly expenses in excess of the Thrifty Food Plan amount for one person for
each boarder. For purposes of this clause and clause (11), "Thrifty Food Plan" has the
meaning given it in Code of Federal Regulations;
(11) monthly expenses in excess of the roomer rate plus the Thrifty Food Plan
amount for one person for each roomer-boarder. If there is more than one boarder or
roomer-boarder, use the total number of boarders as the unit size to determine the Thrifty
Food Plan amount;
(12) an amount greater than actual expenses or two percent of the estimated market
value on a county tax assessment form, whichever is greater, as a deduction for upkeep
and repair against rental income;
(13) expenses not allowed by the Internal Revenue Code;
(14) expenses in excess of 60 percent of gross receipts for in-home child care unless
a higher amount can be documented; and
(15) expenses that are reimbursed under the child and adult care food program as
authorized under the National School Lunch Act, United States Code, title 42.
    Subd. 6. Self-employment budget period. The self-employment budget period
begins in the month of application or in the first month of self-employment. Gross receipts
must be budgeted in the month received. Expenses must be budgeted against gross
receipts in the month the expenses are paid, except for paragraphs (a) to (c).
(a) The purchase cost of inventory items, including materials which are processed
or manufactured, must be deducted as an expense at the time payment is received for
the sale of the inventory items.
(b) A 12-month rolling average based on clauses (1) to (3) must be used to budget
monthly income.
(1) For a business in operation for at least 12 months, the county agency shall use
the average monthly self-employment income from the most current income tax report for
the 12 months before the month of application. The county agency shall determine a new
monthly average by adding in the actual self-employment income and expenses from the
previous month and dropping the first month from the averaging period.
(2) For a business in operation for less than 12 months, the county agency shall
compute the average for the number of months the business has been in operation to
determine a monthly average. When data are available for 12 or more months, average
monthly self-employment income is determined under clause (1).
(3) If the business undergoes a major change, the county agency shall compute a new
rolling average beginning with the first month of the major change. For the purpose of this
clause, major change means a change that affects the nature and scale of the business and
is not merely the result of normal business fluctuations.
(c) For seasonal self-employment, the caregiver may choose whether to use actual
income in the month of receipt and expenses in the month incurred or the rolling average
method of computation. The choice must be made once per year at the time of application
or recertification. For the purpose of this paragraph, seasonal means working six or less
months per year.
The agency must budget self-employment earned income according to section
256P.05, subdivision 3.
    Subd. 7. Farm income. Farm income is the difference between gross receipts
and operating expenses. The county agency must not allow a deduction for expenses
listed in subdivision 5, paragraph (b). Gross receipts include sales, rents, subsidies,
soil conservation payments, production derived from livestock, and income from
home-produced food Farm income shall be treated as self-employment income under
section 256P.05, subdivision 2. The agency must budget farm income as self-employment
earned income according to section 256P.05, subdivision 3.
    Subd. 8. Rental income. The county agency must treat income from rental property
as earned or unearned income. Income from rental property is unearned income unless the
assistance unit spends an average of ten hours per week on maintenance or management
of the property. When the owner spends more than ten hours per week on maintenance
or repairs, the earnings are considered self-employment earnings. An amount must be
deducted for upkeep and repairs, as specified in subdivision 5, paragraph (b), clause
(12), real estate taxes, insurance, utilities, and interest on principal payments. When the
applicant or participant lives on the rental property, expenses for upkeep, taxes, insurance,
utilities, and interest must be divided by the number of rooms to determine expense per
room and expenses deducted must be deducted only for the number of rooms rented
Rental income is subject to the requirements of section 256P.05.
    Subd. 9. Unearned income. (a) The county agency must apply unearned income
to the MFIP transitional standard of need. When determining the amount of unearned
income, the county agency must deduct the costs necessary to secure payments of
unearned income. These costs include legal fees, medical fees, and mandatory deductions
such as federal and state income taxes.
(b) The county agency must convert unearned income received on a periodic basis to
monthly amounts by prorating the income over the number of months represented by the
frequency of the payments. The county agency must begin counting the monthly amount
in the month the periodic payment is received and budget it according to the assistance
unit's budget cycle.
    Subd. 10. Treatment of lump sums. (a) The county agency must treat lump-sum
payments as earned or unearned income. If the lump-sum payment is included in the
category of income identified in subdivision 9, it must be treated as unearned income. A
lump sum is counted as income in the month received and budgeted either prospectively or
retrospectively depending on the budget cycle at the time of receipt. When an individual
receives a lump-sum payment, that lump sum must be combined with all other earned and
unearned income received in the same budget month, and it must be applied according to
paragraphs (a) to (c). A lump sum may not be carried over into subsequent months. Any
funds that remain in the third month after the month of receipt are counted in the asset limit.
(b) For a lump sum received by an applicant during the first two months, prospective
budgeting is used to determine the payment and the lump sum must be combined with
other earned or unearned income received and budgeted in that prospective month.
(c) For a lump sum received by a participant after the first two months of MFIP
eligibility, the lump sum must be combined with other income received in that budget
month, and the combined amount must be applied retrospectively against the applicable
payment month.
(d) When a lump sum, combined with other income under paragraphs (b) and (c), is
less than the MFIP transitional standard of need for the appropriate payment month, the
assistance payment must be reduced according to the amount of the countable income.
When the countable income is greater than the MFIP standard or family wage level, the
assistance payment must be suspended for the payment month.
EFFECTIVE DATE.The amendments to subdivisions 1, 1a, 1b, and 2 are effective
October 1, 2015. The amendments to subdivisions 4, 5, 6, 7, and 8 are effective February
1, 2015. The amendments to subdivisions 9 and 10 are effective January 1, 2015.

    Sec. 26. Minnesota Statutes 2012, section 256J.425, subdivision 1, is amended to read:
    Subdivision 1. Eligibility. (a) To be eligible for a hardship extension, a participant
in an assistance unit subject to the time limit under section 256J.42, subdivision 1, must
be in compliance in the participant's 60th counted month. For purposes of determining
eligibility for a hardship extension, a participant is in compliance in any month that the
participant has not been sanctioned. In order to maintain eligibility for any of the hardship
extension categories a participant shall develop and comply with either an employment
plan or a family stabilization services plan, whichever is appropriate.
    (b) If one participant in a two-parent assistance unit is determined to be ineligible for
a hardship extension, the county shall give the assistance unit the option of disqualifying
the ineligible participant from MFIP. In that case, the assistance unit shall be treated as a
one-parent assistance unit and the assistance unit's MFIP grant shall be calculated using
the shared household standard under section 256J.08, subdivision 82a.
    (c) Prior to denying an extension, the county must review the sanction status and
determine whether the sanction is appropriate or if good cause exists under section 256J.57.
If the sanction was inappropriately applied or the participant is granted a good cause
exception before the end of month 60, the participant shall be considered for an extension.
EFFECTIVE DATE.This section is effective January 1, 2015.

    Sec. 27. Minnesota Statutes 2012, section 256J.425, subdivision 7, is amended to read:
    Subd. 7. Status of disqualified participants. (a) An assistance unit that is
disqualified under subdivision 6, paragraph (a), may be approved for MFIP if the
participant complies with MFIP program requirements and demonstrates compliance for
up to one month. No assistance shall be paid during this period.
(b) An assistance unit that is disqualified under subdivision 6, paragraph (a), and that
reapplies under paragraph (a) is subject to sanction under section 256J.46, subdivision
1 , paragraph (c), clause (1), for a first occurrence of noncompliance. A subsequent
occurrence of noncompliance results in a permanent disqualification.
(c) If one participant in a two-parent assistance unit receiving assistance under a
hardship extension under subdivision 3 or 4 is determined to be out of compliance with
the employment and training services requirements under sections 256J.521 to 256J.57,
the county shall give the assistance unit the option of disqualifying the noncompliant
participant from MFIP. In that case, the assistance unit shall be treated as a one-parent
assistance unit for the purposes of meeting the work requirements under subdivision
4 and the assistance unit's MFIP grant shall be calculated using the shared household
standard under section 256J.08, subdivision 82a. An applicant who is disqualified
from receiving assistance under this paragraph may reapply under paragraph (a). If a
participant is disqualified from MFIP under this subdivision a second time, the participant
is permanently disqualified from MFIP.
(d) Prior to a disqualification under this subdivision, a county agency must review
the participant's case to determine if the employment plan is still appropriate and attempt
to meet with the participant face-to-face. If a face-to-face meeting is not conducted, the
county agency must send the participant a notice of adverse action as provided in section
256J.31 . During the face-to-face meeting, the county agency must:
(1) determine whether the continued noncompliance can be explained and mitigated
by providing a needed preemployment activity, as defined in section 256J.49, subdivision
13 , clause (9);
(2) determine whether the participant qualifies for a good cause exception under
section 256J.57;
(3) inform the participant of the family violence waiver criteria and make appropriate
referrals if the waiver is requested;
(4) inform the participant of the participant's sanction status and explain the
consequences of continuing noncompliance;
(5) identify other resources that may be available to the participant to meet the
needs of the family; and
(6) inform the participant of the right to appeal under section 256J.40.
EFFECTIVE DATE.This section is effective January 1, 2015.

    Sec. 28. Minnesota Statutes 2012, section 256J.95, subdivision 8, is amended to read:
    Subd. 8. Verification requirements. (a) A county agency must only require
verification of information necessary to determine DWP eligibility and the amount of
the payment. The applicant or participant must document the information required or
authorize the county agency to verify the information. The applicant or participant has the
burden of providing documentary evidence to verify eligibility. The county agency shall
assist the applicant or participant in obtaining required documents when the applicant
or participant is unable to do so.
(b) A county agency must not request information about an applicant or participant
that is not a matter of public record from a source other than county agencies, the
Department of Human Services, or the United States Department of Health and Human
Services without the person's prior written consent. An applicant's signature on an
application form constitutes consent for contact with the sources specified on the
application. A county agency may use a single consent form to contact a group of similar
sources, but the sources to be contacted must be identified by the county agency prior to
requesting an applicant's consent.
(c) Factors to be verified shall follow section 256J.32, subdivision 256P.04,
subdivisions 4 and 5. Except for personal needs, family maintenance needs must be
verified before the expense can be allowed in the calculation of the DWP grant.
EFFECTIVE DATE.This section is effective February 1, 2015.

    Sec. 29. Minnesota Statutes 2012, section 256J.95, subdivision 9, is amended to read:
    Subd. 9. Property and income limitations. The asset limits and exclusions in
section 256J.20 256P.02 apply to applicants and recipients participants of DWP. All
payments, unless excluded in section 256J.21, must be counted as income to determine
eligibility for the diversionary work program. The county agency shall treat income as
outlined in section 256J.37, except for subdivision 3a. The initial income test and the
disregards in section 256J.21, subdivision 3, shall be followed for determining eligibility
for the diversionary work program.
EFFECTIVE DATE.This section is effective January 1, 2016.

    Sec. 30. Minnesota Statutes 2012, section 256J.95, subdivision 10, is amended to read:
    Subd. 10. Diversionary work program grant. (a) The amount of cash benefits that
a family unit is eligible for under the diversionary work program is based on the number
of persons in the family unit, the family maintenance needs, personal needs allowance,
and countable income. The county agency shall evaluate the income of the family unit
that is requesting payments under the diversionary work program. Countable income
means gross earned and unearned income not excluded or disregarded under MFIP.
The same disregards for earned income that are allowed under MFIP are allowed for
the diversionary work program.
(b) The DWP grant is based on the family maintenance needs for which the DWP
family unit is responsible plus a personal needs allowance. Housing and utilities, except
for telephone service, shall be vendor paid. Unless otherwise stated in this section, actual
housing and utility expenses shall be used when determining the amount of the DWP grant.
(c) The maximum monthly benefit amount available under the diversionary work
program is the difference between the family unit's needs under paragraph (b) and the
family unit's countable income not to exceed the cash portion of the MFIP transitional
standard of need as defined in section sections 256J.08, subdivision 55a 85, and 256J.24,
subdivision 5, for the family unit's size.
(d) Once the county has determined a grant amount, the DWP grant amount will
not be decreased if the determination is based on the best information available at the
time of approval and shall not be decreased because of any additional income to the
family unit. The grant must be increased if a participant later verifies an increase in family
maintenance needs or family unit size. The minimum cash benefit amount, if income and
asset tests are met, is $10. Benefits of $10 shall not be vendor paid.
(e) When all criteria are met, including the development of an employment plan as
described in subdivision 14 and eligibility exists for the month of application, the amount
of benefits for the diversionary work program retroactive to the date of application is as
specified in section 256J.35, paragraph (a).
(f) Any month during the four-month DWP period that a person receives a DWP
benefit directly or through a vendor payment made on the person's behalf, that person is
ineligible for MFIP or any other TANF cash assistance program except for benefits defined
in section 256J.626, subdivision 2, clause (1).
If during the four-month period a family unit that receives DWP benefits moves to
a county that has not established a diversionary work program, the family unit may be
eligible for MFIP the month following the last month of the issuance of the DWP benefit.
EFFECTIVE DATE.This section is effective January 1, 2015.

    Sec. 31. [256P.001] APPLICABILITY.
General assistance and Minnesota supplemental aid under chapter 256D and
programs governed by chapter 256I or 256J are subject to the requirements of this chapter,
unless otherwise specified or exempted.

    Sec. 32. [256P.01] DEFINITIONS.
    Subdivision 1. Scope. For purposes of this chapter, the terms defined in this section
have the meanings given them.
    Subd. 2. Agency. "Agency" means any county, federally recognized Indian tribe, or
multicounty social services collaboratives.
    Subd. 3. Earned income. "Earned income" means cash or in-kind income earned
through the receipt of wages, salary, commissions, profit from employment activities, net
profit from self-employment activities, payments made by an employer for regularly
accrued vacation or sick leave, and any other profit from activity earned through effort or
labor. The income must be in return for, or as a result of, legal activity.
    Subd. 4. Earned income disregard. "Earned income disregard" means earned
income that is not counted according to section 256P.03 when determining eligibility and
calculating the amount of the assistance payment.
    Subd. 5. Equity value. "Equity value" means the amount of equity in personal
property owned by a person and is determined by subtracting any outstanding
encumbrances from the fair market value of the personal property.
    Subd. 6. Personal property. "Personal property" means an item of value that
is not real property.
    Subd. 7. Self-employment. "Self-employment" means employment by an
individual who:
(1) incurs costs in producing income and deducts these costs in order to equate the
individual's income with income from sources where there are no production costs; and
(2) controls the individual's work by working either independently of an employer or
freelance, or by running the business; or
(3) pays self-employment taxes.

    Sec. 33. [256P.02] PERSONAL PROPERTY LIMITATIONS.
    Subdivision 1. Property ownership. (a) The agency must apply paragraphs (b) to
(e) to determine the value of personal property. The agency must use the equity value
of legally available personal property to determine whether an applicant or participant
is eligible for assistance.
(b) When personal property is jointly owned by two or more persons, the agency
shall assume that each person owns an equal share, except that either person owns
the entire sum of a joint personal checking or savings account. When an applicant or
participant documents greater or lesser ownership, the agency must use that greater or
lesser share to determine the equity value held by the applicant or participant. Other types
of ownership must be evaluated according to law.
(c) Personal property owned by the applicant or participant must be presumed legally
available to the applicant or participant unless the applicant or participant documents
that the property is not legally available to the applicant or participant. When personal
property is not legally available, its equity value must not be applied against the limits of
subdivision 2.
(d) An applicant must disclose whether the applicant has transferred personal
property valued in excess of the property limits in subdivision 2 for which reasonable
compensation was not received within one year prior to application. A participant must
disclose all transfers of property valued in excess of these limits, according to the reporting
requirements in section 256J.30, subdivision 9. When a transfer of personal property
without reasonable compensation has occurred:
(1) the person who transferred the property must provide the property's description,
information needed to determine the property's equity value, the names of the persons who
received the property, and the circumstances of and reasons for the transfer; and
(2) when the transferred property can be reasonably reacquired, or when reasonable
compensation can be secured, the property is presumed legally available to the applicant
or participant.
(e) A participant may build the equity value of personal property to the limits in
subdivision 2.
    Subd. 2. Personal property limitations. (a) The equity value of an assistance unit's
personal property listed in clauses (1) to (4) must not exceed $10,000 for applicants and
participants. For purposes of this subdivision, personal property is limited to:
(1) cash;
(2) bank accounts;
(3) liquid stocks and bonds that can be readily accessed without a financial penalty;
and
(4) vehicles not excluded under subdivision 3.
    Subd. 3. Vehicle exception. One vehicle per assistance unit member age 16 or older
shall be excluded when determining the equity value of personal property. If the assistance
unit owns more than one vehicle per assistance unit member age 16 or older, the agency
shall determine the trade-in values of all additional vehicles and apply the values to the
personal property limitations in subdivision 2. To establish the trade-in values of vehicles,
an agency must use the National Automobile Dealers Association online car values and
car prices guide. When a vehicle is not listed in the online guide, or when the applicant or
participant disputes the trade-in value listed in the online guide as unreasonable given the
condition of the particular vehicle, the agency may require the applicant or participant to
document the trade-in value by securing a written statement from a motor vehicle dealer
licensed under section 168.27, stating the amount that the dealer would pay to purchase
the vehicle. The agency shall reimburse the applicant or participant for the cost of a
written statement that documents a lower loan value.
EFFECTIVE DATE.This section is effective January 1, 2016.

    Sec. 34. [256P.03] EARNED INCOME DISREGARD.
    Subdivision 1. Exempted programs. Participants who qualify for Minnesota
supplemental aid under chapter 256D and for group residential housing under chapter 256I
on the basis of eligibility for Supplemental Security Income are exempt from this section.
    Subd. 2. Earned income disregard. The agency shall disregard the first $65 of
earned income plus one-half of the remaining earned income per month.
EFFECTIVE DATE.This section is effective October 1, 2015.

    Sec. 35. [256P.04] DOCUMENTING, VERIFYING, AND RECERTIFYING
ELIGIBILITY.
    Subdivision 1. Exemption. Participants who receive Minnesota supplemental aid
and who maintain Supplemental Security Income eligibility under chapters 256D and
256I are exempt from the reporting requirements of this section, except that the policies
and procedures for transfers of assets are those used by the medical assistance program
under section 256B.0595.
    Subd. 2. Verification of information. An agency must only require verification of
information necessary to determine eligibility and the amount of the assistance payment.
If necessary, the agency shall assist the applicant or participant in obtaining verifications
and required documents when the applicant or participant is unable to do so.
    Subd. 3. Documentation. The applicant or participant must document the
information required under subdivisions 4 to 7 or authorize the agency to verify the
information. The applicant or participant has the burden of providing documentary
evidence to verify eligibility. The agency must accept a signed personal statement from
the applicant or participant when determining personal property values under section
256P.02. The signed personal statement must include general penalty warnings and a
disclaimer that any false or misrepresented information is subject to prosecution for fraud
under sections 609.52 and 609.821 and perjury under section 609.48.
    Subd. 4. Factors to be verified. (a) The agency shall verify the following at
application:
(1) identity of adults;
(2) age, if necessary to determine eligibility;
(3) immigration status;
(4) income;
(5) spousal support and child support payments made to persons outside the
household;
(6) vehicles;
(7) checking and savings accounts;
(8) inconsistent information, if related to eligibility;
(9) residence; and
(10) Social Security number.
(b) Applicants who are qualified noncitizens and victims of domestic violence as
defined under section 256J.08, subdivision 73, clause (7), are not required to verify the
information in paragraph (a), clause (10). When a Social Security number is not provided
to the agency for verification, this requirement is satisfied when each member of the
assistance unit cooperates with the procedures for verification of Social Security numbers,
issuance of duplicate cards, and issuance of new numbers which have been established
jointly between the Social Security Administration and the commissioner.
    Subd. 5. MFIP-only verifications. In addition to subdivision 4, the agency shall
verify the following for programs under chapter 256J:
(1) the presence of the minor child in the home, if questionable;
(2) the relationship of a minor child to caregivers in the assistance unit;
(3) pregnancy, if related to eligibility;
(4) school attendance, if related to eligibility;
(5) a claim of family violence, if used as a basis to qualify for the family violence
waiver under chapter 256J; and
(6) disability, if used as the basis for reducing the hourly participation requirements
under section 256J.55, subdivision 1, or for the type of activity included in an employment
plan under section 256J.521, subdivision 2.
    Subd. 6. Personal property inconsistent information. If there is inconsistent
information known to the agency when reporting personal property under section 256P.02,
an agency must require the applicant or participant to document the information required
under section 256P.02 or authorize the county agency to verify the information. The
applicant or participant has the burden of providing documentary evidence to verify
eligibility. The agency shall assist the applicant or participant in obtaining required
documents when the applicant or participant is unable to do so.
    Subd. 7. Documenting and verifying inconsistent information. When the
agency verifies inconsistent information under subdivision 4, paragraph (a), clause (8);
subdivision 6; or subdivision 8, clause (3), the reason for verifying the information must
be documented in the financial case record.
    Subd. 8. Recertification. The agency shall recertify eligibility in an annual
interview with the participant. The interview may be conducted by telephone, by Internet
telepresence, or face-to-face in the county office or in another location mutually agreed
upon. A participant must be given the option of a telephone interview or Internet
telepresence to recertify eligibility. During the interview, the agency shall verify the
following:
(1) income, unless excluded, including self-employment earnings;
(2) assets when the value is within $200 of the asset limit; and
(3) inconsistent information, if related to eligibility.
    Subd. 9. MFIP-only recertification. In addition to subdivision 8, the agency shall
verify the following for programs under chapter 256J:
(1) the presence of the minor child in the home, if questionable; and
(2) whether a single-caregiver household meets the requirements in section
256J.575, subdivision 3.
    Subd. 10. Participant's completion of form for recertification of eligibility. A
participant must complete forms prescribed by the commissioner which are required
for recertification of eligibility according to subdivisions 8 and 9. An agency must end
benefits when the participant fails to submit the recertification form and verifications
before the end of the certification period. If the participant submits the recertification
form within 30 days of the termination of benefits, benefits must be reinstated and made
available retroactively for the full benefit month.
    Subd. 11. Participant's completion of household report form. (a) When a
participant is required to complete a household report form, the following paragraphs apply.
(b) If the agency receives an incomplete household report form, the agency must
immediately return the incomplete form and clearly state what the participant must do for
the form to be complete.
(c) The automated eligibility system must send a notice of proposed termination of
assistance to the participant if a complete household report form is not received by the
agency. The automated notice must be mailed to the participant by approximately the 16th
of the month. When a participant submits an incomplete form on or after the date a notice
of proposed termination has been sent, the termination is valid unless the participant
submits a complete form before the end of the month.
(d) The submission of a household report form is considered to have continued the
participant's application for assistance if a complete household report form is received
within a calendar month after the month in which the form was due. Assistance shall be
paid for the period beginning with the first day of that calendar month.
(e) An agency must allow good cause exemptions for a participant required to
complete a household report form when any of the following factors cause a participant to
fail to submit a completed household report form before the end of the month in which
the form is due:
(1) an employer delays completion of employment verification;
(2) the agency does not help a participant complete the household report form when
the participant asks for help;
(3) a participant does not receive a household report form due to a mistake on the
part of the department or the agency or a reported change in address;
(4) a participant is ill or physically or mentally incapacitated; or
(5) some other circumstance occurs that a participant could not avoid with reasonable
care which prevents the participant from providing a completed household report form
before the end of the month in which the form is due.
    Subd. 12. Contacting third parties. An agency must not request information
about an applicant or participant that is not of public record from a source other than
agencies, the department, or the United States Department of Health and Human Services
without the applicant's or participant's prior written consent. An applicant's signature
on an application form constitutes consent for contact with the sources specified on the
application. An agency may use a single consent form to contact a group of similar
sources, such as banks or insurance agencies, but the sources to be contacted must be
identified by the agency prior to requesting an applicant's consent.
    Subd. 13. Notice to undocumented persons; release of private data. Agencies,
in consultation with the commissioner of human services, shall provide notification
to undocumented persons regarding the release of personal data to the United States
Citizenship and Immigration Services and develop protocols regarding the release or
sharing of data about undocumented persons with the United States Citizenship and
Immigration Services as required under sections 404, 411A, and 434 of the Personal
Responsibility and Work Opportunity Reconciliation Act of 1996.
    Subd. 14. Requirement to report to United States Citizenship and Immigration
Services. The commissioner shall comply with the reporting requirements under United
States Code, title 42, section 611a, and any federal regulation or guidance adopted under
that law.
    Subd. 15. Personal statement. The agency may accept a signed personal statement
from the applicant or participant explaining the reasons that the documentation requested
in subdivision 3 is unavailable as sufficient documentation at the time of application,
recertification, or change related to eligibility only for the following factors:
(1) a claim of family violence, if used as a basis to qualify for the family violence
waiver;
(2) relationship of a minor child to caregivers in the assistance unit;
(3) citizenship status from a noncitizen who reports to be, or is identified as, a victim
of severe forms of trafficking in persons, if the noncitizen reports that the noncitizen's
immigration documents are being held by an individual or group of individuals against the
noncitizen's will. The noncitizen must follow up with the Office of Refugee Resettlement
(ORR) to pursue certification. If verification that certification is being pursued is
not received within 30 days, the case must be closed and the agency shall pursue
overpayments. The ORR documents certifying the noncitizen's status as a victim of severe
forms of trafficking in persons, or the reason for the delay in processing, must be received
within 90 days, or the case must be closed and the agency shall pursue overpayments; and
(4) other documentation unavailable for reasons beyond the control of the applicant
or participant. The applicant or participant must have made reasonable attempts to obtain
the documents requested under subdivision 3.
    Subd. 16. Excluded resources. Payments of funds made according to litigation and
subsequent appropriation by the United States Congress to compensate members of Indian
tribes for the taking of tribal lands by the federal government are excluded.
EFFECTIVE DATE.This section is effective February 1, 2015.

    Sec. 36. [256P.05] SELF-EMPLOYMENT EARNINGS.
    Subdivision 1. Exempted programs. Participants who qualify for Minnesota
supplemental aid under chapter 256D and for group residential housing under chapter 256I
on the basis of eligibility for Supplemental Security Income are exempt from this section.
    Subd. 2. Self-employment income determinations. An agency must determine
self-employment income, which is either:
(1) one-half of gross earnings from self-employment; or
(2) taxable income as determined from an Internal Revenue Service tax form that
has been filed with the Internal Revenue Service within the last year. A 12-month average
using net taxable income shall be used to budget monthly income.
    Subd. 3. Self-employment budgeting. (a) The self-employment budget period
begins in the month of application or in the first month of self-employment. Applicants
and participants must choose one of the methods described in subdivision 2 for
determining self-employment earned income.
(b) Applicants and participants who elect to use taxable income as described in
subdivision 2, clause (2), to determine self-employment income must continue to use this
method until recertification, unless there is an unforeseen significant change in gross
income equaling a decline in gross income of the amount equal to or greater than the
earned income disregard as defined in section 256P.03 from the income used to determine
the benefit for the current month.
(c) For applicants and participants who elect to use one-half of gross earnings as
described in subdivision 2, clause (1), to determine self-employment income, earnings
must be counted as income in the month received.
EFFECTIVE DATE.This section is effective February 1, 2015.

    Sec. 37. RECOMMENDATIONS; DRAFT LEGISLATION;
IMPLEMENTATION PLAN.
In order to provide further uniformity and simplification of assistance programs
under Minnesota Statutes, chapters 256D, 256I, and 256J, the commissioner of human
services, in consultation with counties, tribes, and program participants, may prepare
legislation to plan for the implementation of prospective budgeting, three-month
reporting, uniform reporting, and budgeting standards. The commissioner may provide
recommendations and a plan for implementation to the legislative committees with
jurisdiction over health and human services policy and finance.

    Sec. 38. REPEALER.
(a) Minnesota Statutes 2012, sections 256J.08, subdivisions 55a and 82a; and
256J.24, subdivision 9, are repealed effective January 1, 2015.
(b) Minnesota Statutes 2012, sections 256D.405, subdivisions 1a and 2; 256J.08,
subdivision 42; and 256J.32, subdivisions 2, 3, 4, 5a, 6, 7, 7a, and 8, are repealed effective
February 1, 2015.
(c) Minnesota Statutes 2012, section 256D.06, subdivision 1b, is repealed effective
October 1, 2015.
(d) Minnesota Statutes 2013 Supplement, section 256J.08, subdivision 24, is
repealed effective October 1, 2015.
(e) Minnesota Statutes 2012, sections 256D.08, subdivision 2; and 256J.20, are
repealed effective January 1, 2016.