1.1    .................... moves to amend H. F. No. 297, the first committee engrossment,
1.2as follows:
1.3Page 18, delete section 14 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 18, delete section 15 and 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 19, delete section 16
4.16Page 22, delete section 17 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."
5.14Page 23, after line 23, insert:

5.15    "Sec. ... Minnesota Statutes 2006, section 256J.42, subdivision 6, is amended to read:
5.16    Subd. 6. Case review. (a) Within 180 days, but not less than 60 days, before the end
5.17of the participant's 60th month on assistance, the county agency or job counselor must
5.18review the participant's case to determine if the employment plan is still appropriate or if
5.19the participant is exempt under section 256J.56 from the employment and training services
5.20component, and attempt to meet with the participant face-to-face. Beginning March 1,
5.212008, for single caregiver households included in the separately funded nonmaintenance of
5.22effort state program under section 256J.021, paragraph (c), clauses (2) to (4), the purpose
5.23of the case review is to confirm criteria under section 256J.32, subdivision 6, clause (6).
5.24    (b) During the face-to-face meeting, a county agency or the job counselor must:
5.25    (1) inform the participant how many months of counted assistance the participant
5.26has accrued and when the participant is expected to reach the 60th month;
5.27    (2) explain the hardship extension criteria under section 256J.425 and what the
5.28participant should do if the participant thinks a hardship extension applies;
5.29    (3) identify other resources that may be available to the participant to meet the
5.30needs of the family; and
5.31    (4) inform the participant of the right to appeal the case closure under section
5.32256J.40 .
5.33    (c) If a face-to-face meeting is not possible, the county agency must send the
5.34participant a notice of adverse action as provided in section 256J.31, subdivisions 4 and 5.
5.35    (d) Before a participant's case is closed under this section, the county must ensure
5.36that:
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 23, delete section 19
6.7Page 24, delete section 20 and insert:

6.8    "Sec. ... Minnesota Statutes 2006, section 256J.425, is amended by adding a
6.9subdivision to read:
6.10    Subd. 9. Simplified sanctions for extended cases. (a) Beginning July 1, 2008, if
6.11one or both participants in an assistance unit receiving assistance under this section are
6.12not in compliance with the requirements in sections 256J.45 or 256J.515 to 256J.57, the
6.13following sanctions apply:
6.14    (1) for a first occurrence of noncompliance, an assistance unit is sanctioned under
6.15section 256J.46, subdivision 3, paragraph (d);
6.16    (2) for a second or third occurrence of noncompliance, the assistance unit is
6.17sanctioned under section 256J.46, subdivision 3, paragraph (e); and
6.18    (3) for a fourth occurrence of noncompliance, the assistance unit is disqualified
6.19from MFIP.
6.20If a participant is determined to be out of compliance, the participant may claim a good
6.21cause exception under section 256J.57.
6.22    (b) If both participants in a two-parent assistance unit are out of compliance at the
6.23same time, it is considered one occurrence of noncompliance.
6.24    (c) If a two-parent assistance unit is extended under subdivision 3 or 4, and a parent
6.25who has not reached the 60-month time limit is out of compliance with the requirements
6.26in sections 256J.45 or 256J.515 to 256J.57 when the case is extended, the sanction in the
6.2761st month is considered the first sanction for the purposes of applying the sanctions in
6.28this subdivision, except that the sanction amount is reduced by 30 percent.
6.29    (d) If one or both participants in an assistance unit receiving assistance under this
6.30section refuses to cooperate, as determined by the child support agency, with support
6.31requirements under section 256.741, the following sanctions apply:
6.32    (1) for a first occurrence of noncooperation, the assistance unit's grant is reduced
6.33by 30 percent of the applicable MFIP standard of need;
6.34    (2) for a second or third occurrence of noncompliance, the assistance unit is
6.35sanctioned under section 256J.46, subdivision 3, paragraph (e); and
7.1    (3) for a fourth occurrence of noncompliance, the assistance unit is disqualified
7.2from MFIP.
7.3    (e) A participant subject to a sanction for refusal to comply with child support
7.4requirements and subject to a concurrent employment services sanction is subject to
7.5sanctions under paragraphs (f) to (i).
7.6    (f) If the participant was sanctioned for:
7.7    (1) noncompliance under paragraph (a) before being subject to sanction for
7.8noncooperation under paragraph (d); or
7.9    (2) noncooperation under paragraph (d) before being subject to sanction for
7.10noncompliance under paragraph (a), the participant is considered to have second
7.11occurrence of noncompliance and shall be sanctioned under section 256J.46, subdivision
7.123, paragraph (e). Each subsequent occurrence of noncompliance is considered one
7.13additional occurrence and is subject to the applicable level of sanction under section
7.14256J.46, subdivision 3.
7.15    (g) A participant who first becomes subject to sanction under both paragraphs (a)
7.16and (d) in the same month is subject to sanction as follows:
7.17    (1) in the first month of noncompliance and noncooperation, the participant's grant
7.18is reduced by 30 percent of the applicable MFIP standard of need, with any residual
7.19amount paid to the participant;
7.20    (2) in the second or third month of noncompliance and noncooperation, the
7.21participant is subject to the sanction under section 256J.46, subdivision 3, paragraph
7.22(e); and
7.23    (3) on the fourth month of noncompliance and noncooperation, the participant is
7.24disqualified.
7.25    (h) A participant remains subject to sanction under paragraph (d) if the participant:
7.26    (1) returns to compliance and is no longer subject to sanction for noncompliance
7.27with section 256J.45 or sections 256J.515 to 256J.57; or
7.28    (2) has the sanction for noncompliance with section 256J.45 or sections 256J.515 to
7.29256J.57 removed upon completion of the review under section 256J.46, subdivision 3,
7.30paragraph (f).
7.31    (i) A participant remains subject to sanction under paragraph (a) if the participant
7.32cooperates and is no longer subject to sanction under paragraph (d).

7.33    Sec. ... Minnesota Statutes 2006, section 256J.425, is amended by adding a subdivision
7.34to read:
7.35    Subd. 10. Status of disqualified participants under simplified sanctions.
7.36    (a) Beginning July 1, 2008, an assistance unit that is disqualified under subdivision
8.19, paragraph (a), may be approved for MFIP if the participant complies with MFIP
8.2requirements and demonstrates compliance for up to one month. No assistance shall be
8.3paid during this period.
8.4    (b) An assistance unit that is disqualified under subdivision 9 and that reapplies
8.5under paragraph (a) is subject to sanction under section 256J.46, subdivision 3, paragraph
8.6(e), for a first occurrence of noncompliance. A subsequent occurrence of noncompliance
8.7results in a permanent disqualification.
8.8    (c) If one participant in a two-parent assistance unit receiving assistance under a
8.9hardship extension under subdivision 3 or 4 is determined to be out of compliance with
8.10MFIP requirements, the county shall give the assistance unit the option of disqualifying
8.11the noncompliant participant from MFIP. In that case, the assistance unit is treated
8.12as a one-parent assistance unit for the purposes of meeting the work requirements
8.13under subdivision 4, and the assistance unit's MFIP grant is calculated using the shared
8.14household standard under section 256J.08, subdivision 82a. An applicant who is
8.15disqualified from receiving assistance under this paragraph may reapply under paragraph
8.16(a). If a participant is disqualified from MFIP under this subdivision a second time, the
8.17participant is permanently disqualified from MFIP.
8.18    (d) Prior to a disqualification under this subdivision, a county agency must review
8.19the participant's case to determine if the employment plan is still appropriate and attempt
8.20to meet with the participant face-to-face. If a face-to-face meeting is not conducted, the
8.21county agency shall send the participant a notice of adverse action as provided in section
8.22256J.31. During the face-to-face meeting, the county agency shall:
8.23    (1) determine whether the continued noncompliance can be explained and mitigated
8.24by providing a needed preemployment activity, as defined in section 256J.49, subdivision
8.2513, clause (9);
8.26    (2) determine whether the participant qualifies for a good cause exception under
8.27section 256J.57;
8.28    (3) inform the participant of the family violence waiver criteria and make appropriate
8.29referrals if the waiver is requested;
8.30    (4) inform the participant of the participant's sanction status and explain the
8.31consequences of continuing noncompliance;
8.32    (5) identify other resources that may be available to the participant to meet the
8.33needs of the family; and
8.34    (6) inform the participant of the right to appeal under section 256J.40."
8.35Page 26, delete section 21 and insert:

9.1    "Sec. ... Minnesota Statutes 2006, section 256J.46, is amended by adding a subdivision
9.2to read:
9.3    Subd. 3. Simplified sanctions. (a) Beginning July 1, 2008, a participant who fails
9.4without good cause under section 256J.57 to comply with the requirements of this chapter,
9.5and who is not subject to a sanction under subdivision 4, is subject to a sanction under this
9.6subdivision. Prior to the imposition of a sanction, a county agency shall provide a notice
9.7of intent to sanction under section 256J.57, subdivision 2, and, when applicable, a notice
9.8of adverse action under section 256J.31.
9.9    (b) A sanction under this subdivision becomes effective the month following the
9.10month in which a required notice is given. A sanction is not imposed when a participant
9.11comes into compliance with the requirements for orientation under section 256J.45 prior to
9.12the effective date of the sanction. A sanction is not imposed when a participant comes into
9.13compliance with the requirements for employment and training services under sections
9.14256J.515 to 256J.57 ten days prior to the effective date of the sanction. For purposes of
9.15this subdivision, each month that a participant fails to comply with a requirement of
9.16this chapter is considered a separate occurrence of noncompliance. If both participants
9.17in a two-parent assistance unit are out of compliance at the same time, it is considered
9.18one occurrence of noncompliance.
9.19    (c) Sanctions for noncompliance are imposed as prescribed by paragraphs (d) and (e).
9.20    (d) For the first occurrence of noncompliance by a participant in an assistance
9.21unit, the assistance unit's grant is reduced by ten percent of the MFIP standard of need
9.22for an assistance unit of the same size with the residual grant paid to the participant.
9.23The reduction in the grant amount must be in effect for a minimum of one month and is
9.24removed in the month following the month that the participant returns to compliance.
9.25    (e) For a second or third occurrence of noncompliance by a participant in an
9.26assistance unit, the assistance unit's shelter costs must be vendor paid up to the amount
9.27of the cash portion of the MFIP grant for which the assistance unit is eligible. At county
9.28option, the assistance unit's utilities may also be vendor paid up to the amount of the
9.29cash portion of the MFIP grant remaining after vendor payment of the assistance unit's
9.30shelter costs. The residual amount of the grant after vendor payment, if any, is reduced
9.31by an amount equal to 30 percent of the MFIP standard of need for an assistance unit of
9.32the same size before the residual grant is paid to the assistance unit. The reduction in
9.33the grant amount must be in effect for a minimum of one month and is removed in the
9.34month following the month that the participant in a one-parent assistance unit returns to
9.35compliance. In a two-parent assistance unit, the grant reduction must be in effect for a
9.36minimum of one month and is removed in the month following the month both participants
10.1return to compliance. The vendor payment of shelter costs and utilities must be removed
10.2six months after the month in which the participant or participants return to compliance. If
10.3an assistance unit is sanctioned under this paragraph, the participant's case file must be
10.4reviewed to determine if the employment plan is still appropriate.
10.5    (f) For a fourth occurrence of noncompliance by a participant in an assistance unit,
10.6or when the participants in a two-parent assistance unit have a total of four occurrences
10.7of noncompliance, the county agency shall close the MFIP assistance unit's financial
10.8assistance case, including both the cash and food portions, and redetermine the family's
10.9continued eligibility for food support payments. The MFIP case must remain closed
10.10for a minimum of one full month. Before the case is closed, the county agency shall
10.11review the participant's case to determine if the employment plan is still appropriate and
10.12attempt to meet with the participant face-to-face. The participant may bring an advocate to
10.13the face-to-face meeting. If a face-to-face meeting is not conducted, the county agency
10.14shall send the participant a written notice that includes the information required under
10.15paragraph (g).
10.16    (g) During the face-to-face meeting in paragraph (f), the county agency must:
10.17    (1) determine whether the continued noncompliance can be explained and mitigated
10.18by providing a needed preemployment activity, as defined in section 256J.49, subdivision
10.1913, clause (9);
10.20    (2) determine whether the participant qualifies for a good cause exception under
10.21section 256J.57, or if the sanction is for noncooperation with child support requirements,
10.22determine if the participant qualifies for a good cause exemption under section 256.741,
10.23subdivision 10;
10.24    (3) determine whether the work activities in the employment plan are appropriate
10.25based on the criteria in section 256J.521, subdivision 2 or 3;
10.26    (4) determine whether the participant qualifies for the family violence waiver;
10.27    (5) inform the participant of the participant's sanction status and explain the
10.28consequences of continuing noncompliance;
10.29    (6) identify other resources that may be available to the participant to meet the
10.30needs of the family; and
10.31    (7) inform the participant of the right to appeal under section 256J.40.
10.32    If the lack of an identified activity or service can explain the noncompliance, the
10.33county must work with the participant to provide the identified activity.
10.34    The grant must be restored to the full amount for which the assistance unit is eligible
10.35retroactively to the first day of the month in which the participant was found to lack
11.1preemployment activities, a family violence waiver, or for a good cause exemption under
11.2section 256.741, subdivision 10, or 256J.57.
11.3    (h) For the purpose of applying sanctions under this subdivision, only occurrences of
11.4noncompliance that occur after July 1, 2008, are considered. If the participant is in 30
11.5percent sanction in the month this section takes effect, that month counts as the first
11.6occurrence for purposes of applying the sanctions under this section, but the sanction
11.7must remain at 30 percent for that month.
11.8    (i) An assistance unit whose case is closed under paragraph (f) or (j), may reapply
11.9for MFIP and is eligible if the participant complies with MFIP program requirements and
11.10demonstrates compliance for up to one month. No assistance is paid during this period.
11.11    (j) An assistance unit whose case has been closed for noncompliance that reapplies
11.12under paragraph (i) is subject to sanction under paragraph (e) for a first occurrence of
11.13noncompliance. Any subsequent occurrence of noncompliance results in case closure
11.14under paragraph (f).

11.15    Sec. ... Minnesota Statutes 2006, section 256J.46, is amended by adding a subdivision
11.16to read:
11.17    Subd. 4. Simplified sanctions for refusal to cooperate with support
11.18requirements. Beginning July 1, 2008, an MFIP caregiver who refuses to cooperate, as
11.19determined by the child support enforcement agency, with support requirements under
11.20section 256.741, is subject to sanction under this subdivision and subdivision 1. For a first
11.21occurrence of noncooperation, the assistance unit's grant must be reduced by 30 percent of
11.22the applicable MFIP standard of need. Subsequent occurrences of noncooperation must be
11.23subject to sanction under subdivision 3, paragraphs (e) and (f). The residual amount of the
11.24grant, if any, is paid to the caregiver. A sanction under this subdivision becomes effective
11.25the first month following the month in which a required notice is given. A sanction is not
11.26imposed when a caregiver comes into compliance with the requirements under section
11.27256.741 prior to the effective date of the sanction. The sanction is removed in the month
11.28following the month that the caregiver cooperates with the support requirements. Each
11.29month that an MFIP caregiver fails to comply with the requirements of section 256.741 is
11.30considered a separate occurrence of noncompliance for the purpose of applying sanctions
11.31under subdivision 3, paragraphs (e) and (f).

11.32    Sec. ... Minnesota Statutes 2006, section 256J.46, is amended by adding a subdivision
11.33to read:
11.34    Subd. 5. Simplified dual sanctions. (a) Beginning July 1, 2008, notwithstanding
11.35the provisions of subdivisions 3 and 4, for a participant subject to a sanction for refusal to
11.36comply with child support requirements under subdivision 4 and subject to a concurrent
12.1sanction for refusal to cooperate with other program requirements under subdivision 3,
12.2sanctions must be imposed in the manner prescribed in this subdivision. Any vendor
12.3payment of shelter costs or utilities under this subdivision must remain in effect for six
12.4months after the month in which the participant is no longer subject to sanction under
12.5subdivision 3.
12.6    (b) If the participant was subject to sanction for:
12.7    (1) noncompliance under subdivision 3 before being subject to sanction for
12.8noncooperation under subdivision 4; or
12.9    (2) noncooperation under subdivision 4 before being subject to sanction for
12.10noncompliance under subdivision 3,
12.11the participant is considered to have a second occurrence of noncompliance and is
12.12sanctioned as provided in subdivision 3, paragraph (e). Each subsequent occurrence of
12.13noncompliance is considered one additional occurrence and is subject to the applicable
12.14level of sanction under subdivision 3. The requirement that the county conduct a review
12.15as specified in subdivision 3, paragraph (f), remains in effect.
12.16    (c) A participant who first becomes subject to sanction under both subdivisions 3
12.17and 4 in the same month is subject to sanction as follows:
12.18    (1) in the first month of noncompliance and noncooperation, the participant's grant
12.19must be reduced by 30 percent of the applicable MFIP standard of need, with any residual
12.20amount paid to the participant;
12.21    (2) in the second and subsequent months of noncompliance and noncooperation,
12.22the participant is subject to the applicable level of sanction under subdivision 3. The
12.23requirement that the county conduct a review as specified in subdivision 3, paragraph
12.24(f), remains in effect.
12.25    (d) A participant remains subject to sanction under subdivision 4 if the participant:
12.26    (1) returns to compliance and is no longer subject to sanction for noncompliance
12.27with section 256J.45 or sections 256J.515 to 256J.57; or
12.28    (2) has the sanction for noncompliance with section 256J.45 or sections 256J.515 to
12.29256J.57 removed upon completion of the review under subdivision 3, paragraph (f).
12.30    (e) A participant remains subject to the applicable level of sanction under subdivision
12.313 if the participant cooperates and is no longer subject to sanction under subdivision 4."
12.32Page 26, delete section 22 and insert:

12.33    "Sec. ... Minnesota Statutes 2006, section 256J.49, subdivision 13, is amended to read:
12.34    Subd. 13. Work activity. "Work activity" means any activity in a participant's
12.35approved employment plan that leads to employment. For purposes of the MFIP program,
13.1this includes activities that meet the definition of work activity under the participation
13.2requirements of TANF. Work activity includes:
13.3    (1) unsubsidized employment, including work study and paid apprenticeships or
13.4internships;
13.5    (2) subsidized private sector or public sector employment, including grant diversion
13.6as specified in section 256J.69, on-the-job training as specified in section 256J.66,
13.7the self-employment investment demonstration program (SEID) as specified in section
13.8256J.65, paid work experience, and supported work when a wage subsidy is provided;
13.9    (3) unpaid work experience, including community service, volunteer work, the
13.10community service work experience program as specified in section 256J.67 256J.675,
13.11unpaid apprenticeships or internships, and supported work when a wage subsidy is not
13.12provided;
13.13    (4) job search including job readiness assistance, job clubs, job placement,
13.14job-related counseling, and job retention services;
13.15    (5) job readiness education, including English as a second language (ESL) or
13.16functional work literacy classes as limited by the provisions of section 256J.531,
13.17subdivision 2 , general educational development (GED) course work, high school
13.18completion, and adult basic education as limited by the provisions of section 256J.531,
13.19subdivision 1 ;
13.20    (6) job skills training directly related to employment, including education and
13.21training that can reasonably be expected to lead to employment, as limited by the
13.22provisions of section 256J.53;
13.23    (7) providing child care services to a participant who is working in a community
13.24service program;
13.25    (8) activities included in the employment plan that is developed under section
13.26256J.521, subdivision 3 ; and
13.27    (9) preemployment activities including chemical and mental health assessments,
13.28treatment, and services; learning disabilities services; child protective services; family
13.29stabilization services; or other programs designed to enhance employability.

13.30    Sec. ... Minnesota Statutes 2006, section 256J.50, subdivision 1, is amended to read:
13.31    Subdivision 1. Employment and training services component of MFIP. (a) Each
13.32county must develop and provide an employment and training services component which
13.33is designed to put participants on the most direct path to unsubsidized employment.
13.34Participation in these services is mandatory for all MFIP caregivers, unless the caregiver
13.35is exempt under section 256J.56.
14.1    (b) Effective July 1, 2008, a county must provide employment and training services
14.2under sections 256J.515 to 256J.74 within 30 ten days after the caregiver is determined
14.3eligible for MFIP, or within ten days when the caregiver participated in the diversionary
14.4work program under section 256J.95 within the past 12 months. "
14.5Page 27, delete section 23
14.6Page 29, delete section 24
14.7Page 31, delete section 25
14.8Page 31, delete section 26 and insert:

14.9    "Sec. ... Minnesota Statutes 2006, section 256J.531, is amended to read:
14.10256J.531 BASIC EDUCATION; ENGLISH AS A SECOND LANGUAGE.
14.11    Subdivision 1. Approval of adult basic education. With the exception of classes
14.12related to obtaining a general educational development credential (GED), a participant
14.13must have reading or mathematics proficiency below a ninth grade level in order for adult
14.14basic education classes to be an approved work activity. The employment plan must also
14.15specify that the participant fulfill no more than one-half of the participation requirements
14.16in section 256J.55, subdivision 1, through attending adult basic education or general
14.17educational development classes.
14.18    Subd. 2. Approval of English as a second language. In order for English as a
14.19second language (ESL) classes to be an approved work activity in an employment plan, a
14.20participant must be below a spoken language proficiency level of SPL6 or its equivalent,
14.21as measured by a nationally recognized test. In approving ESL as a work activity, the job
14.22counselor must give preference to enrollment in a functional work literacy program,
14.23if one is available, over a regular ESL program. A participant may not be approved
14.24for more than a combined total of 24 months of ESL classes while participating in the
14.25diversionary work program and the employment and training services component of
14.26MFIP. The employment plan must also specify that the participant fulfill no more than
14.27one-half of the participation requirements in section 256J.55, subdivision 1, through
14.28attending ESL classes. For participants enrolled in functional work literacy classes, no
14.29more than two-thirds of the participation requirements in section 256J.55, subdivision 1,
14.30may be met through attending functional work literacy classes.
14.31EFFECTIVE DATE.This section is effective October 1, 2007."
14.32Page 32, delete section 27
14.33Page 33, delete section 28 and insert:

14.34    "Sec. ... Minnesota Statutes 2006, section 256J.626, subdivision 7, is amended to read:
15.1    Subd. 7. Performance base funds. (a) Beginning calendar year 2005, each county
15.2and tribe will be allocated 95 percent of their initial calendar year allocation. Counties and
15.3tribes will be allocated additional funds based on performance as follows:
15.4    (1) for calendar year 2005, a county or tribe that achieves a 30 percent rate or higher
15.5on the MFIP participation rate under section 256J.751, subdivision 2, clause (8), as
15.6averaged across the four quarterly measurements for the most recent year for which the
15.7measurements are available, will receive an additional allocation equal to 2.5 percent of
15.8its initial allocation; and
15.9    (2) for calendar year 2006, a county or tribe that achieves a 40 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    (3) for calendar year 2007, a county or tribe that achieves a 50 percent rate or a
15.15five percentage point improvement over the previous year's MFIP participation rate
15.16under section 256J.751, subdivision 2, clause (8), as averaged across the four quarterly
15.17measurements for the most recent year for which the measurements are available, will
15.18receive an additional allocation equal to 2.5 percent of its initial allocation; and
15.19    (4) (1) for calendar year 2008, a county or tribe that achieves a 50 percent MFIP work
15.20participation rate as specified in the Personal Responsibility and Work Responsibility Act,
15.21Public Law 104-193, applied to all MFIP cases except child-only cases, as averaged across
15.22the four quarterly measurements for the most recent year for which the measurements are
15.23available, must receive an additional allocation equal to 2.5 percent of its initial allocation;
15.24    (2) for calendar year 2008 2009 and yearly thereafter, a county or tribe that achieves
15.25a 50 percent MFIP TANF work participation rate under section 256J.751, subdivision 2,
15.26clause (8) (7), as averaged across the four quarterly measurements for the most recent year
15.27for which the measurements are available, will receive an additional allocation equal
15.28to 2.5 percent of its initial allocation; and
15.29    (5) (3) for calendar years 2005 and thereafter, a county or tribe that performs above
15.30the top of its annualized range of expected performance on the three-year self-support
15.31index under section 256J.751, subdivision 2, clause (7) (6), will receive an additional
15.32allocation equal to five percent of its initial allocation; or
15.33    (6) (4) for calendar years 2005 and thereafter, a county or tribe that performs within
15.34its range of expected performance on the annualized three-year self-support index under
15.35section 256J.751, subdivision 2, clause (7) (6), will receive an additional allocation equal
15.36to 2.5 percent of its initial allocation.
16.1    (b) Performance-based funds for a federally approved tribal TANF program in which
16.2the state and tribe have in place a contract under section 256.01, addressing consolidated
16.3funding, will be allocated as follows:
16.4    (1) for calendar year 2006 and yearly thereafter, a tribe that achieves the participation
16.5rate approved in its federal TANF plan using the average of four quarterly measurements
16.6for the most recent year for which the measurements are available, will receive an
16.7additional allocation equal to 2.5 percent of its initial allocation; and
16.8    (2) for calendar years 2006 and thereafter, a tribe that performs above the top of its
16.9annualized range of expected performance on the three-year self-support index under
16.10section 256J.751, subdivision 2, clause (7) (6), will receive an additional allocation equal
16.11to five percent of its initial allocation; or
16.12    (3) for calendar years 2006 and thereafter, a tribe that performs within its range
16.13of expected performance on the annualized three-year self-support index under section
16.14256J.751, subdivision 2 , clause (7) (6), will receive an additional allocation equal to 2.5
16.15percent of its initial allocation.
16.16    (c) Funds remaining unallocated after the performance-based allocations in
16.17paragraph (a) are available to the commissioner for innovation projects under subdivision
16.185.
16.19    (d)(1) If available funds are insufficient to meet county and tribal allocations
16.20under paragraph (a), the commissioner may make available for allocation funds that are
16.21unobligated and available from the innovation projects through the end of the current
16.22biennium.
16.23    (2) If after the application of clause (1) funds remain insufficient to meet county and
16.24tribal allocations under paragraph (a), the commissioner must proportionally reduce the
16.25allocation of each county and tribe with respect to their maximum allocation available
16.26under paragraph (a).

16.27    Sec. ... Minnesota Statutes 2006, section 256J.626, is amended by adding a subdivision
16.28to read:
16.29    Subd. 10. Specialized employment. Beginning July 1, 2007, the commissioner
16.30shall make funds available annually to counties and tribes to develop paid and unpaid
16.31work experience positions for MFIP participants with no recent work history. The
16.32commissioner shall develop a process for approving requests and allocating funding in
16.33consultation with the counties and tribes.

16.34    Sec. ... [256J.675] COMMUNITY SERVICE WORK EXPERIENCE.
16.35    Subdivision 1. Employment options. Community service work experience
16.36positions developed under this section are limited to projects that serve a useful public
17.1service such as health care, social service, environmental protection, education, urban and
17.2rural development and redevelopment, welfare, recreation, public facilities, public safety,
17.3community service, services to aged or disabled citizens, and child care. To the extent
17.4possible, the prior training, skills, and experience of a participant must be considered in
17.5making appropriate work experience assignments.
17.6    Subd. 2. Placing participants in community service work experience. As a
17.7condition of placing a participant in a program under this section, the county agency
17.8shall ensure that:
17.9    (1) a participant is first given the opportunity for placement in suitable unsubsidized
17.10employment through participation in job search, or through participation in on-the-job
17.11training if such employment is available;
17.12    (2) after three months of participation in a community service work experience
17.13placement, and at the conclusion of each community service work experience assignment
17.14under this section, the participant's employment plan is revised as appropriate;
17.15    (3) the maximum number of hours any participant works under this section does not
17.16exceed the amount of the MFIP grant, cash and food support, divided by the federal or
17.17applicable state minimum wage, whichever is higher; and
17.18    (4) a participant does not continue in a community work experience placement
17.19for more than nine months unless the maximum number of hours worked is no greater
17.20than the amount of the MFIP grant, cash and food support, divided by the rate of pay
17.21for individuals employed in the same or similar occupations by the same employer at
17.22the same site. This limit does not apply if it would prevent a participant from counting
17.23toward the federal work participation rate.

17.24    Sec. ... [256J.678] INJURY PROTECTION FOR COMMUNITY SERVICE
17.25WORK EXPERIENCE PARTICIPANTS.
17.26    Subdivision 1. Authority. The Department of Administration, in consultation with
17.27the Department of Human Services, shall contract with an approved insurance carrier to
17.28provide coverage for injuries or death resulting from a person's participation in paid and
17.29unpaid community work experience programs authorized by the commissioner for persons
17.30applying for or receiving DWP, MFIP, or food stamps, and participating in the Minnesota
17.31parent's fair share program and the community service program under section 518.551,
17.32subdivision 5a, in a county with an approved community investment program for obligors.
17.33    Subd. 2. Claims. Claims that are subject to this section must be reported to the
17.34insurance carrier in a format approved by the carrier by the department of the state, county
17.35agency, or tribal program responsible for supervising the work.
18.1    Subd. 3. Exclusive procedure. The procedure established by this section
18.2is exclusive of all other legal, equitable, and statutory remedies against the state,
18.3employees of the state, or the state's political subdivisions. The claimant is not entitled
18.4to seek damages from any other state, county, tribal, or reservation insurance policy or
18.5self-insurance program.
18.6    Subd. 4. Requirements for worksites. The department of the state, county agency,
18.7or tribal program responsible for supervising the work shall ensure that no participant is
18.8assigned to a worksite which is in violation of federal Occupational Safety and Health
18.9Administration and state Department of Labor and Industry safety standards or is under
18.10investigation to determine if those violations have occurred. All participants must be
18.11given the same safety information and training given to a paid employee performing
18.12similar work at that worksite."
18.13Page 37, delete sections 29 and 30
18.14Page 39, delete sections 31 and 32
18.15Page 40, delete sections 33 and 34
18.16Page 44, delete section 37
18.17Page 45, after line 19, insert:

18.18    "Sec. ... Minnesota Statutes 2006, section 256J.95, subdivision 15, is amended to read:
18.19    Subd. 15. Limitations on certain work activities. (a) Except as specified in
18.20paragraphs (b) to (d), employment activities listed in section 256J.49, subdivision 13, are
18.21allowable under the diversionary work program.
18.22    (b) Work activities under section 256J.49, subdivision 13, clause (5), shall be
18.23allowable only when in combination with approved work activities under section 256J.49,
18.24subdivision 13 , clauses (1) to (4), and shall be limited to no more than one-half of the
18.25hours required in the employment plan.
18.26    (c) (b) In order for an English as a second language (ESL) class or Functional Work
18.27Literacy under section 256J.49, subdivision 13, clause (5), to be an approved work
18.28activity, a participant must:
18.29    (1) be below a spoken language proficiency level of SPL6 or its equivalent, as
18.30measured by a nationally recognized test; and
18.31    (2) not have been enrolled in ESL for more than 24 months while previously
18.32participating in MFIP or DWP. A participant who has been enrolled in ESL for 20 or more
18.33months may be approved for ESL until the participant has received 24 total months.
18.34    (d) (c) Work activities under section 256J.49, subdivision 13, clause (6), shall be
18.35allowable only when the training or education program will be completed within the
19.1four-month DWP period. Training or education programs that will not be completed
19.2within the four-month DWP period shall not be approved. "
19.3Page 90, delete section 74 and insert:

19.4    "Sec. ... REPEALER.
19.5Minnesota Statutes 2006, sections 256J.67; and 256J.68, are repealed effective
19.6(b) Minnesota Statutes 2006, sections 256J.425, subdivisions 6 and 7; and 256J.46,
19.7subdivisions 1, 2, and 2a, are repealed effective June 30, 2008.
19.8(c) Minnesota Statutes 2006, section 256J.29, is repealed."
19.9Page 211, line 8, delete "three" and insert "five"
19.10Page 384, line 24, delete "$4,269,000" and insert "$9,912,000" and delete "and"
19.11Page 384, line 25, delete "$4,889,000." and insert "$18,226,000;"
19.12Page 384, after line 25 insert:
19.13"(3) fiscal year 2010, $17,616,000; and
19.14(4) fiscal year 2011, $17,320,000."
19.15Page 384, after line 27 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:
19.22(1) fiscal year 2008, $5,643,000;
19.23(2) fiscal year 2009, $14,372,000;
19.24(3) fiscal year 2010, $17,616,000; and
19.25(4) fiscal year 2011, $17,320,000.
19.26The commissioner shall authorize transfer
19.27of sufficient TANF funds to the federal
19.28Child Care and Development Fund to meet
19.29this appropriation and shall ensure that all
19.30transferred funds are expended according the
19.31federal Child Care and Development Fund
19.32regulations."
19.33Renumber the sections in sequence and correct the internal references
19.34Amend the title accordingly
20.1Adjust fund totals accordingly