1.1.................... moves to amend H.F. No. 2080 as follows:
1.2Delete everything after the enacting clause and insert:

1.3    "Section 1. Minnesota Statutes 2011 Supplement, section 256.987, is amended by
1.4adding a subdivision to read:
1.5    Subd. 3. EBT use restricted to certain states. EBT debit cardholders in programs
1.6listed under subdivision 1 are prohibited from using the cash portion of the EBT card at
1.7vendors and automatic teller machines located outside of Minnesota, Iowa, North Dakota,
1.8South Dakota, or Wisconsin. This subdivision does not apply to the food portion.

1.9    Sec. 2. Minnesota Statutes 2010, section 256J.08, subdivision 34b, is amended to read:
1.10    Subd. 34b. Family violence waiver. "Family violence waiver" means a waiver
1.11of the 60-month time limit under section 256J.42, subdivision 1, for victims of family
1.12violence who meet the criteria in section 256J.545 and are complying with an employment
1.13plan in section 256J.521, subdivision 3.
1.14EFFECTIVE DATE.This section is effective July 1, 2012.

1.15    Sec. 3. Minnesota Statutes 2010, section 256J.08, subdivision 51b, is amended to read:
1.16    Subd. 51b. Learning disabled. "Learning disabled," for purposes of an extension
1.17to the 60-month time limit under section 256J.425, subdivision 3, clause (3), means
1.18the person has a disorder in one or more of the psychological processes involved in
1.19perceiving, understanding, or using concepts through verbal language or nonverbal means.
1.20Learning disabled does not include learning problems that are primarily the result of
1.21visual, hearing, or motor disabilities; developmental disability; emotional disturbance; or
1.22due to environmental, cultural, or economic disadvantage.
1.23EFFECTIVE DATE.This section is effective July 1, 2012.

2.1    Sec. 4. Minnesota Statutes 2010, section 256J.24, subdivision 10, is amended to read:
2.2    Subd. 10. MFIP exit level. The commissioner shall adjust the MFIP earned
2.3income disregard to ensure that most participants do not lose eligibility for MFIP until
2.4their income reaches at least 115 100 percent of the federal poverty guidelines at the
2.5time of the adjustment. The adjustment to the disregard shall be based on a household
2.6size of three, and the resulting earned income disregard percentage must be applied to all
2.7household sizes. The adjustment under this subdivision must be implemented whenever a
2.8Supplemental Nutrition Assistance Program adjustment is reflected in the food portion of
2.9the MFIP transitional standard as required under subdivision 5a.

2.10    Sec. 5. Minnesota Statutes 2010, section 256J.26, subdivision 1, is amended to read:
2.11    Subdivision 1. Person convicted of drug offenses. (a) Applicants or participants
2.12An individual who have has been convicted of a drug offense committed after July
2.131, 1997, may, if otherwise eligible, receive MFIP benefits subject to the following
2.14conditions: during the previous ten years from the date of application or recertification is
2.15disqualified from receiving MFIP.
2.16(1) Benefits for the entire assistance unit must be paid in vendor form for shelter and
2.17utilities during any time the applicant is part of the assistance unit.
2.18(2) The convicted applicant or participant shall be subject to random drug testing as
2.19a condition of continued eligibility and following any positive test for an illegal controlled
2.20substance is subject to the following sanctions:
2.21(i) for failing a drug test the first time, the residual amount of the participant's grant
2.22after making vendor payments for shelter and utility costs, if any, must be reduced by an
2.23amount equal to 30 percent of the MFIP standard of need for an assistance unit of the same
2.24size. When a sanction under this subdivision is in effect, the job counselor must attempt
2.25to meet with the person face-to-face. During the face-to-face meeting, the job counselor
2.26must explain the consequences of a subsequent drug test failure and inform the participant
2.27of the right to appeal the sanction under section 256J.40. If a face-to-face meeting is
2.28not possible, the county agency must send the participant a notice of adverse action as
2.29provided in section 256J.31, subdivisions 4 and 5, and must include the information
2.30required in the face-to-face meeting; or
2.31(ii) for failing a drug test two times, the participant is permanently disqualified from
2.32receiving MFIP assistance, both the cash and food portions. The assistance unit's MFIP
2.33grant must be reduced by the amount which would have otherwise been made available to
2.34the disqualified participant. Disqualification under this item does not make a participant
2.35ineligible for food stamps or food support. Before a disqualification under this provision is
3.1imposed, the job counselor must attempt to meet with the participant face-to-face. During
3.2the face-to-face meeting, the job counselor must identify other resources that may be
3.3available to the participant to meet the needs of the family and inform the participant of
3.4the right to appeal the disqualification under section 256J.40. If a face-to-face meeting is
3.5not possible, the county agency must send the participant a notice of adverse action as
3.6provided in section 256J.31, subdivisions 4 and 5, and must include the information
3.7required in the face-to-face meeting.
3.8(3) A participant who fails a drug test the first time and is under a sanction due to
3.9other MFIP program requirements is considered to have more than one occurrence of
3.10noncompliance and is subject to the applicable level of sanction as specified under section
3.11256J.46, subdivision 1, paragraph (d).
3.12(b) Applicants requesting only food stamps or food support or participants receiving
3.13only food stamps or food support, who have been convicted of a drug offense that
3.14occurred after July 1, 1997, may, if otherwise eligible, receive food stamps or food support
3.15if the convicted applicant or participant is subject to random drug testing as a condition
3.16of continued eligibility. Following a positive test for an illegal controlled substance, the
3.17applicant is subject to the following sanctions:
3.18(1) for failing a drug test the first time, food stamps or food support shall be reduced
3.19by an amount equal to 30 percent of the applicable food stamp or food support allotment.
3.20When a sanction under this clause is in effect, a job counselor must attempt to meet with
3.21the person face-to-face. During the face-to-face meeting, a job counselor must explain
3.22the consequences of a subsequent drug test failure and inform the participant of the right
3.23to appeal the sanction under section 256J.40. If a face-to-face meeting is not possible,
3.24a county agency must send the participant a notice of adverse action as provided in
3.25section 256J.31, subdivisions 4 and 5, and must include the information required in the
3.26face-to-face meeting; and
3.27(2) for failing a drug test two times, the participant is permanently disqualified from
3.28receiving food stamps or food support. Before a disqualification under this provision is
3.29imposed, a job counselor must attempt to meet with the participant face-to-face. During
3.30the face-to-face meeting, the job counselor must identify other resources that may be
3.31available to the participant to meet the needs of the family and inform the participant of
3.32the right to appeal the disqualification under section 256J.40. If a face-to-face meeting
3.33is not possible, a county agency must send the participant a notice of adverse action as
3.34provided in section 256J.31, subdivisions 4 and 5, and must include the information
3.35required in the face-to-face meeting.
4.1(c) (b) For the purposes of this subdivision, "drug offense" means an offense that
4.2occurred after July 1, 1997, of sections 152.021 to 152.025, 152.0261, 152.0262, or
4.3152.096 . Drug offense also means a conviction in another jurisdiction of the possession,
4.4use, or distribution of a controlled substance, or conspiracy to commit any of these
4.5offenses, if the offense occurred after July 1, 1997, and the conviction is a felony offense
4.6in that jurisdiction, or in the case of New Jersey, a high misdemeanor.
4.7EFFECTIVE DATE.This section is effective July 1, 2012, for all new MFIP
4.8applicants who apply on or after that date and for all recertifications occurring on or
4.9after that date.

4.10    Sec. 6. Minnesota Statutes 2010, section 256J.32, subdivision 4, is amended to read:
4.11    Subd. 4. Factors to be verified. (a) The county agency shall verify the following
4.12at application:
4.13(1) identity of adults;
4.14(2) presence of the minor child in the home, if questionable;
4.15(3) relationship of a minor child to caregivers in the assistance unit;
4.16(4) age, if necessary to determine MFIP eligibility;
4.17(5) immigration status;
4.18(6) Social Security number according to the requirements of section 256J.30,
4.19subdivision 12 ;
4.20(7) income;
4.21(8) self-employment expenses used as a deduction;
4.22(9) source and purpose of deposits and withdrawals from business accounts;
4.23(10) spousal support and child support payments made to persons outside the
4.24household;
4.25(11) real property;
4.26(12) vehicles;
4.27(13) checking and savings accounts;
4.28(14) savings certificates, savings bonds, stocks, and individual retirement accounts;
4.29(15) pregnancy, if related to eligibility;
4.30(16) inconsistent information, if related to eligibility;
4.31(17) burial accounts;
4.32(18) school attendance, if related to eligibility;
4.33(19) residence;
4.34(20) criminal history by conducting a background study to determine if an applicant
4.35was convicted of a drug or disqualifying offense under section 256J.26, during the
5.1previous ten years from the date of application. Applicants must provide the county with
5.2a set of classifiable fingerprints obtained from an authorized agency when the county
5.3has reasonable cause to believe that an applicant has a criminal history in a jurisdiction
5.4other than Minnesota;
5.5(20) (21) a claim of family violence if used as a basis to qualify for the family
5.6violence waiver;
5.7(21) (22) disability if used as the basis for reducing the hourly participation
5.8requirements under section 256J.55, subdivision 1, or the type of activity included in an
5.9employment plan under section 256J.521, subdivision 2; and
5.10(22) (23) information needed to establish an exception under section 256J.24,
5.11subdivision 9 .
5.12(b) The applicant must pay for the background study required under paragraph
5.13(a), clause (20); if the applicant is found to be eligible for MFIP, the applicant shall be
5.14reimbursed for the cost of the background study at the time the first monthly grant is
5.15awarded.
5.16EFFECTIVE DATE.This section is effective July 1, 2012.

5.17    Sec. 7. Minnesota Statutes 2010, section 256J.32, subdivision 6, is amended to read:
5.18    Subd. 6. Recertification. (a) The county agency shall recertify eligibility in an
5.19annual face-to-face interview with the participant and verify the following:
5.20    (1) presence of the minor child in the home, if questionable;
5.21    (2) income, unless excluded, including self-employment expenses used as a
5.22deduction or deposits or withdrawals from business accounts;
5.23    (3) assets when the value is within $200 of the asset limit;
5.24    (4) information to establish an exception under section 256J.24, subdivision 9, if
5.25questionable;
5.26    (5) inconsistent information, if related to eligibility; and
5.27    (6) whether a single caregiver household meets requirements in section 256J.575,
5.28subdivision 3.; and
5.29(7) criminal history by conducting a background study to determine if a recipient
5.30was convicted of a drug or disqualifying offense under section 256J.26, during the
5.31previous ten years from the date of recertification. Recipients must provide the county
5.32with a set of classifiable fingerprints obtained from an authorized agency when the county
5.33has reasonable cause to believe that a recipient has a criminal history in a jurisdiction
5.34other than Minnesota.
6.1(b) The recipient must pay for the background study required under paragraph
6.2(a), clause (7); if the recipient continues to be eligible for MFIP, the recipient shall be
6.3reimbursed for the cost of the background study at the time the next monthly grant is
6.4awarded.
6.5EFFECTIVE DATE.This section is effective July 1, 2012, for all MFIP
6.6recertifications that occur on or after that date.

6.7    Sec. 8. Minnesota Statutes 2010, section 256J.415, is amended to read:
6.8256J.415 NOTICE OF 12 MONTHS OF TANF ASSISTANCE REMAINING.
6.9(a) The county agency shall mail a notice to each assistance unit when the assistance
6.10unit has 12 months of TANF assistance remaining and each month thereafter until the
6.1160-month time limit under section 256J.42, subdivision 1, has expired. The notice must be
6.12developed by the commissioner of human services and must contain information about the
6.1360-month time limit, the number of months the participant has remaining, the hardship
6.14extension policy, and any other information that the commissioner deems pertinent to an
6.15assistance unit nearing the 60-month time limit.
6.16(b) For applicants who have less than 12 months remaining in the 60-month time
6.17limit because the unit previously received TANF assistance in Minnesota or another state,
6.18the county agency shall notify the applicant of the number of months of TANF remaining
6.19when the application is approved and begin the process required in paragraph (a).
6.20EFFECTIVE DATE.This section is effective July 1, 2012.

6.21    Sec. 9. Minnesota Statutes 2010, section 256J.42, subdivision 1, is amended to read:
6.22    Subdivision 1. Time limit. (a) Except as otherwise provided for in this section, an
6.23assistance unit in which any adult caregiver has received 60 months of cash assistance
6.24funded in whole or in part by the TANF block grant in this or any other state or
6.25United States territory, or from a tribal TANF program, MFIP, the AFDC program
6.26formerly codified in sections 256.72 to 256.87, or the family general assistance program
6.27formerly codified in sections 256D.01 to 256D.23, funded in whole or in part by state
6.28appropriations, is ineligible to receive MFIP. Any cash assistance funded with TANF
6.29dollars in this or any other state or United States territory, or from a tribal TANF program,
6.30or MFIP assistance funded in whole or in part by state appropriations, that was received
6.31by the unit on or after the date TANF was implemented, including any assistance received
6.32in states or United States territories of prior residence, counts toward the 60-month
6.33limitation. Months during which any cash assistance is received by an assistance unit
7.1with a mandatory member who is disqualified for wrongfully obtaining public assistance
7.2under section 256.98, subdivision 8, counts toward the time limit for the disqualified
7.3member. The 60-month limit applies to a minor caregiver except under subdivision 5. The
7.460-month time period does not need to be consecutive months for this provision to apply.
7.5    (b) The months before July 1998 in which individuals received assistance as part of
7.6the field trials as an MFIP, MFIP-R, or MFIP or MFIP-R comparison group family are
7.7not included in the 60-month time limit.
7.8(c) Notwithstanding paragraph (a), beginning July 1, 2012, an applicant in which
7.9no adult caregiver has received cash assistance funded in whole or in part by the TANF
7.10block grant in this or any other state or United States territory, or from a tribal TANF
7.11program, MFIP, the AFDC program formerly codified in sections 256.72 to 256.87, or
7.12the family general assistance program formerly codified in sections 256D.01 to 256D.23,
7.13funded in whole or in part by state appropriations, is limited to 36-months of MFIP
7.14assistance. Months during which any cash assistance is received by an assistance unit with
7.15a mandatory member who is disqualified for wrongfully obtaining public assistance under
7.16section 256.98, subdivision 8, counts toward the time limit for the disqualified member.
7.17The 36-month time limit applies to a minor caregiver except under subdivision 5. The
7.1836-month time period does not need to be consecutive months for this provision to apply.
7.19EFFECTIVE DATE.This section is effective July 1, 2012.

7.20    Sec. 10. Minnesota Statutes 2010, section 256J.42, subdivision 4, is amended to read:
7.21    Subd. 4. Victims of family violence. Any cash assistance received by an assistance
7.22unit in a month when a caregiver complied with a safety plan, an alternative employment
7.23plan, or an employment plan under section 256J.521, subdivision 3, does not count toward
7.24the 60-month limitationtime limit under section 256J.42, subdivision 1, on assistance.
7.25EFFECTIVE DATE.This section is effective July 1, 2012.

7.26    Sec. 11. Minnesota Statutes 2010, section 256J.42, subdivision 5, is amended to read:
7.27    Subd. 5. Exemption for certain families. (a) Any cash assistance received by an
7.28assistance unit does not count toward the 60-month time limit on assistance during a
7.29month in which the caregiver is age 60 or older.
7.30(b) From July 1, 1997, until the date MFIP is operative in the caregiver's county of
7.31financial responsibility, any cash assistance received by a caregiver who is complying
7.32with Minnesota Statutes 1996, section 256.73, subdivision 5a, and Minnesota Statutes
7.331998, section 256.736, if applicable, does not count toward the 60-month time limit
8.1on assistance. Thereafter, any cash assistance received by a minor caregiver who is
8.2complying with the requirements of sections 256J.14 and 256J.54, if applicable, does not
8.3count towards toward the 60-month time limit under section 256J.42, subdivision 1,
8.4on assistance.
8.5(c) Any diversionary assistance or emergency assistance received prior to July 1,
8.62003, does not count toward the 60-month time limit under section 256J.42, subdivision 1.
8.7(d) Any cash assistance received by an 18- or 19-year-old caregiver who is complying
8.8with an employment plan that includes an education option under section 256J.54 does not
8.9count toward the 60-month time limit under section 256J.42, subdivision 1.
8.10(e) Payments provided to meet short-term emergency needs under section 256J.626
8.11and diversionary work program benefits provided under section 256J.95 do not count
8.12toward the 60-month time limit under section 256J.42, subdivision 1.
8.13EFFECTIVE DATE.This section is effective July 1, 2012.

8.14    Sec. 12. Minnesota Statutes 2010, section 256J.42, subdivision 6, is amended to read:
8.15    Subd. 6. Case review. (a) Within 180 days, but not less than 60 days, before the end
8.16of the participant's 60th last month on assistance, the county agency or job counselor must
8.17review the participant's case to determine if the employment plan is still appropriate and
8.18attempt to meet with the participant face-to-face.
8.19(b) During the face-to-face meeting, a county agency or the job counselor must:
8.20(1) inform the participant how many months of counted assistance the participant
8.21has accrued and when the participant is expected to reach the 60th month;
8.22(2) explain the hardship extension criteria under section 256J.425 and what the
8.23participant should do if the participant thinks a hardship extension applies;
8.24(3) identify other resources that may be available to the participant to meet the
8.25needs of the family; and
8.26(4) inform the participant of the right to appeal the case closure under section
8.27256J.40 .
8.28(c) If a face-to-face meeting is not possible, the county agency must send the
8.29participant a notice of adverse action as provided in section 256J.31, subdivisions 4 and 5.
8.30(d) Before a participant's case is closed under this section, the county must ensure
8.31that:
8.32(1) the case has been reviewed by the job counselor's supervisor or the review team
8.33designated by the county to determine if the criteria for a hardship extension, if requested,
8.34were applied appropriately; and
9.1(2) the county agency or the job counselor attempted to meet with the participant
9.2face-to-face.
9.3EFFECTIVE DATE.This section is effective July 1, 2012.

9.4    Sec. 13. Minnesota Statutes 2010, section 256J.425, subdivision 1, is amended to read:
9.5    Subdivision 1. Eligibility. (a) To be eligible for a hardship extension, a participant
9.6in an assistance unit subject to the time limit under section 256J.42, subdivision 1, must be
9.7in compliance in the participant's 60th last counted month. For purposes of determining
9.8eligibility for a hardship extension, a participant is in compliance in any month that the
9.9participant has not been sanctioned. In order to maintain eligibility for any of the hardship
9.10extension categories a participant shall develop and comply with either an employment
9.11plan or a family stabilization services plan, whichever is appropriate.
9.12    (b) If one participant in a two-parent assistance unit is determined to be ineligible for
9.13a hardship extension, the county shall give the assistance unit the option of disqualifying
9.14the ineligible participant from MFIP. In that case, the assistance unit shall be treated as a
9.15one-parent assistance unit and the assistance unit's MFIP grant shall be calculated using
9.16the shared household standard under section 256J.08, subdivision 82a.
9.17    (c) Prior to denying an extension, the county must review the sanction status and
9.18determine whether the sanction is appropriate or if good cause exists under section
9.19256J.57 . If the sanction was inappropriately applied or the participant is granted a good
9.20cause exception before the end of the last month 60, the participant shall be considered for
9.21an extension.
9.22EFFECTIVE DATE.This section is effective July 1, 2012.

9.23    Sec. 14. Minnesota Statutes 2010, section 256J.425, subdivision 4, is amended to read:
9.24    Subd. 4. Employed participants. (a) An assistance unit subject to the time limit
9.25under section 256J.42, subdivision 1, is eligible to receive assistance under a hardship
9.26extension if the participant who reached the time limit belongs to:
9.27(1) a one-parent assistance unit in which the participant is participating in work
9.28activities for at least 30 hours per week, of which an average of at least 25 hours per week
9.29every month are spent participating in employment;
9.30(2) a two-parent assistance unit in which the participants are participating in work
9.31activities for at least 55 hours per week, of which an average of at least 45 hours per week
9.32every month are spent participating in employment; or
10.1(3) an assistance unit in which a participant is participating in employment for fewer
10.2hours than those specified in clause (1), and the participant submits verification from a
10.3qualified professional, in a form acceptable to the commissioner, stating that the number
10.4of hours the participant may work is limited due to illness or disability, as long as the
10.5participant is participating in employment for at least the number of hours specified by the
10.6qualified professional. The participant must be following the treatment recommendations
10.7of the qualified professional providing the verification. The commissioner shall develop a
10.8form to be completed and signed by the qualified professional, documenting the diagnosis
10.9and any additional information necessary to document the functional limitations of the
10.10participant that limit work hours. If the participant is part of a two-parent assistance unit,
10.11the other parent must be treated as a one-parent assistance unit for purposes of meeting the
10.12work requirements under this subdivision.
10.13(b) For purposes of this section, employment means:
10.14(1) unsubsidized employment under section 256J.49, subdivision 13, clause (1);
10.15(2) subsidized employment under section 256J.49, subdivision 13, clause (2);
10.16(3) on-the-job training under section 256J.49, subdivision 13, clause (2);
10.17(4) an apprenticeship under section 256J.49, subdivision 13, clause (1);
10.18(5) supported work under section 256J.49, subdivision 13, clause (2);
10.19(6) a combination of clauses (1) to (5); or
10.20(7) child care under section 256J.49, subdivision 13, clause (7), if it is in combination
10.21with paid employment.
10.22(c) If a participant is complying with a child protection plan under chapter 260C,
10.23the number of hours required under the child protection plan count toward the number
10.24of hours required under this subdivision.
10.25(d) The county shall provide the opportunity for subsidized employment to
10.26participants needing that type of employment within available appropriations.
10.27(e) To be eligible for a hardship extension for employed participants under this
10.28subdivision, a participant must be in compliance for at least ten out of the 12 months the
10.29participant received MFIP immediately preceding the month after the participant's 61st
10.30last month on assistance. If ten or fewer months of eligibility for TANF assistance remain
10.31at the time the participant from another state applies for assistance, the participant must
10.32be in compliance every month.
10.33(f) The employment plan developed under section 256J.521, subdivision 2, for
10.34participants under this subdivision must contain at least the minimum number of hours
10.35specified in paragraph (a) for the purpose of meeting the requirements for an extension
10.36under this subdivision. The job counselor and the participant must sign the employment
11.1plan to indicate agreement between the job counselor and the participant on the contents
11.2of the plan.
11.3(g) Participants who fail to meet the requirements in paragraph (a), without good
11.4cause under section 256J.57, shall be sanctioned or permanently disqualified under
11.5subdivision 6. Good cause may only be granted for that portion of the month for which
11.6the good cause reason applies. Participants must meet all remaining requirements in the
11.7approved employment plan or be subject to sanction or permanent disqualification.
11.8(h) If the noncompliance with an employment plan is due to the involuntary loss of
11.9employment, the participant is exempt from the hourly employment requirement under
11.10this subdivision for one month. Participants must meet all remaining requirements in the
11.11approved employment plan or be subject to sanction or permanent disqualification. This
11.12exemption is available to each participant two times in a 12-month period.
11.13EFFECTIVE DATE.This section is effective July 1, 2012.

11.14    Sec. 15. Minnesota Statutes 2010, section 256J.425, subdivision 4a, is amended to read:
11.15    Subd. 4a. Hardship extension pending documentation. If the documentation
11.16needed to determine if a participant is eligible for a hardship extension under subdivision 2
11.17or 3 is not available by the 60th participant's last month under section 256J.42, subdivision
11.181, the county agency may extend the participant pending receipt of the documentation if
11.19the county believes the participant is likely to qualify for a hardship extension and the
11.20participant is cooperating with efforts to obtain the documentation. If the participant
11.21is found to be not eligible for an extension, the participant may be responsible for an
11.22overpayment.
11.23EFFECTIVE DATE.This section is effective July 1, 2012.

11.24    Sec. 16. Minnesota Statutes 2010, section 256J.425, subdivision 5, is amended to read:
11.25    Subd. 5. Accrual of certain exempt months. (a) Participants who are not eligible
11.26for assistance under a hardship extension under this section shall be eligible for a hardship
11.27extension for a period of time equal to the number of months that were counted toward
11.28the 60-month time limit under section 256J.42, subdivision 1, while the participant was a
11.29caregiver with a child or an adult in the household who meets the disability or medical
11.30criteria for home care services under section 256B.0651, subdivision 1, paragraph (c), or a
11.31home and community-based waiver services program under chapter 256B, or meets the
11.32criteria for severe emotional disturbance under section 245.4871, subdivision 6, or for
12.1serious and persistent mental illness under section 245.462, subdivision 20, paragraph (c),
12.2and who was subject to the requirements in section 256J.561, subdivision 2.
12.3(b) A participant who received MFIP assistance that counted toward the 60-month
12.4time limit while the participant met the state time limit exemption criteria under section
12.5256J.42, subdivision 4 or 5, is eligible for assistance under a hardship extension for a
12.6period of time equal to the number of months that were counted toward the 60-month
12.7time limit while the participant met the state time limit exemption criteria under section
12.8256J.42, subdivision 4 or 5.
12.9(c) After the accrued months have been exhausted, the county agency must
12.10determine if the assistance unit is eligible for an extension under another extension
12.11category in subdivision 2, 3, or 4.
12.12(d) At the time of the case review, a county agency must explain to the participant
12.13the basis for receiving a hardship extension based on the accrual of exempt months.
12.14The participant must provide documentation necessary to enable the county agency to
12.15determine whether the participant is eligible to receive a hardship extension based on the
12.16accrual of exempt months or authorize a county agency to verify the information.
12.17(e) While receiving extended MFIP assistance under this subdivision, a participant
12.18is subject to the MFIP policies that apply to participants during the first 60 unextended
12.19months of MFIP, unless the participant is a member of a two-parent family in which one
12.20parent is extended under subdivision 3 or 4. For two-parent families in which one parent
12.21is extended under subdivision 3 or 4, the sanction provisions in subdivision 6 shall apply.
12.22EFFECTIVE DATE.This section is effective July 1, 2012.

12.23    Sec. 17. Minnesota Statutes 2010, section 256J.425, subdivision 6, is amended to read:
12.24    Subd. 6. Sanctions for extended cases. (a) If one or both participants in an
12.25assistance unit receiving assistance under subdivision 3 or 4 are not in compliance with
12.26the employment and training service requirements in sections 256J.521 to 256J.57,
12.27the sanctions under this subdivision apply. For a first occurrence of noncompliance,
12.28an assistance unit must be sanctioned under section 256J.46, subdivision 1, paragraph
12.29(c), clause (1). For a second or third occurrence of noncompliance, the assistance unit
12.30must be sanctioned under section 256J.46, subdivision 1, paragraph (c), clause (2). For a
12.31fourth occurrence of noncompliance, the assistance unit is disqualified from MFIP. If a
12.32participant is determined to be out of compliance, the participant may claim a good cause
12.33exception under section 256J.57.
12.34(b) If both participants in a two-parent assistance unit are out of compliance at the
12.35same time, it is considered one occurrence of noncompliance.
13.1(c) When a parent in an extended two-parent assistance unit who has not used 60
13.236 months of assistance is out of compliance with the employment and training service
13.3requirements in sections 256J.521 to 256J.57, sanctions must be applied as specified in
13.4clauses (1) and (2).
13.5(1) If the assistance unit is receiving assistance under subdivision 3 or 4, the
13.6assistance unit is subject to the sanction policy in this subdivision.
13.7(2) If the assistance unit is receiving assistance under subdivision 2, the assistance
13.8unit is subject to the sanction policy in section 256J.46.
13.9(d) If a two-parent assistance unit is extended under subdivision 3 or 4, and a parent
13.10who has not reached the 60-month time limit under section 256J.42, subdivision 1, is
13.11out of compliance with the employment and training services requirements in sections
13.12256J.521 to 256J.57 when the case is extended, the sanction in the 61st month after the
13.13last month of the time limit under section 256J.42, subdivision 1, is considered the first
13.14sanction for the purposes of applying the sanctions in this subdivision, except that the
13.15sanction amount shall be 30 percent.
13.16EFFECTIVE DATE.This section is effective July 1, 2012.

13.17    Sec. 18. Minnesota Statutes 2010, section 256J.45, subdivision 2, is amended to read:
13.18    Subd. 2. General information. The MFIP orientation must consist of a presentation
13.19that informs caregivers of:
13.20(1) the necessity to obtain immediate employment;
13.21(2) the work incentives under MFIP, including the availability of the federal earned
13.22income tax credit and the Minnesota working family tax credit;
13.23(3) the requirement to comply with the employment plan and other requirements
13.24of the employment and training services component of MFIP, including a description
13.25of the range of work and training activities that are allowable under MFIP to meet the
13.26individual needs of participants;
13.27(4) the consequences for failing to comply with the employment plan and other
13.28program requirements, and that the county agency may not impose a sanction when failure
13.29to comply is due to the unavailability of child care or other circumstances where the
13.30participant has good cause under subdivision 3;
13.31(5) the rights, responsibilities, and obligations of participants;
13.32(6) the types and locations of child care services available through the county agency;
13.33(7) the availability and the benefits of the early childhood health and developmental
13.34screening under sections 121A.16 to 121A.19; 123B.02, subdivision 16; and 123B.10;
14.1(8) the caregiver's eligibility for transition year child care assistance under section
14.2119B.05 ;
14.3(9) the availability of all health care programs, including transitional medical
14.4assistance;
14.5(10) the caregiver's option to choose an employment and training provider and
14.6information about each provider, including but not limited to, services offered, program
14.7components, job placement rates, job placement wages, and job retention rates;
14.8(11) the caregiver's option to request approval of an education and training plan
14.9according to section 256J.53;
14.10(12) the work study programs available under the higher education system; and
14.11(13) information about the 60-month time limit exemptions under the family violence
14.12waiver and referral information about shelters and programs for victims of family violence.
14.13EFFECTIVE DATE.This section is effective July 1, 2012.

14.14    Sec. 19. Minnesota Statutes 2010, section 256J.46, subdivision 1, is amended to read:
14.15    Subdivision 1. Participants not complying with program requirements. (a)
14.16A participant who fails without good cause under section 256J.57 to comply with the
14.17requirements of this chapter, and who is not subject to a sanction under subdivision 2,
14.18shall be subject to a sanction as provided in this subdivision. Prior to the imposition of
14.19a sanction, a county agency shall provide a notice of intent to sanction under section
14.20256J.57, subdivision 2 , and, when applicable, a notice of adverse action as provided
14.21in section 256J.31.
14.22(b) A sanction under this subdivision becomes effective the month following the
14.23month in which a required notice is given. A sanction must not be imposed when a
14.24participant comes into compliance with the requirements for orientation under section
14.25256J.45 prior to the effective date of the sanction. A sanction must not be imposed
14.26when a participant comes into compliance with the requirements for employment and
14.27training services under sections 256J.515 to 256J.57 ten days prior to the effective date
14.28of the sanction. For purposes of this subdivision, each month that a participant fails to
14.29comply with a requirement of this chapter shall be considered a separate occurrence of
14.30noncompliance. If both participants in a two-parent assistance unit are out of compliance
14.31at the same time, it is considered one occurrence of noncompliance.
14.32(c) Sanctions for noncompliance shall be imposed as follows:
14.33(1) For the first occurrence of noncompliance by a participant in an assistance unit,
14.34the assistance unit's grant shall be reduced by ten percent of the MFIP standard of need
14.35for an assistance unit of the same size with the residual grant paid to the participant. The
15.1reduction in the grant amount must be in effect for a minimum of one month and shall be
15.2removed in the month following the month that the participant returns to compliance.
15.3(2) For a second, third, fourth, fifth, or sixth occurrence of noncompliance by a
15.4participant in an assistance unit, the assistance unit's shelter costs shall be vendor paid
15.5up to the amount of the cash portion of the MFIP grant for which the assistance unit is
15.6eligible. At county option, the assistance unit's utilities may also be vendor paid up to
15.7the amount of the cash portion of the MFIP grant remaining after vendor payment of the
15.8assistance unit's shelter costs. The residual amount of the grant after vendor payment, if
15.9any, must be reduced by an amount equal to 30 percent of the MFIP standard of need for an
15.10assistance unit of the same size before the residual grant is paid to the assistance unit. The
15.11reduction in the grant amount must be in effect for a minimum of one month and shall be
15.12removed in the month following the month that the participant in a one-parent assistance
15.13unit returns to compliance. In a two-parent assistance unit, the grant reduction must
15.14be in effect for a minimum of one month and shall be removed in the month following
15.15the month both participants return to compliance. The vendor payment of shelter costs
15.16and, if applicable, utilities shall be removed six months after the month in which the
15.17participant or participants return to compliance. If an assistance unit is sanctioned under
15.18this clause, the participant's case file must be reviewed to determine if the employment
15.19plan is still appropriate.
15.20(d) For a seventh third occurrence of noncompliance by a participant in an assistance
15.21unit, or when the participants in a two-parent assistance unit have a total of seven three
15.22occurrences of noncompliance, the county agency shall close the MFIP assistance unit's
15.23financial assistance case, both the cash and food portions, and redetermine the family's
15.24continued eligibility for food support payments. The MFIP case must remain closed for a
15.25minimum of one full month. Before the case is closed, the county agency must review
15.26the participant's case to determine if the employment plan is still appropriate and attempt
15.27to meet with the participant face-to-face. The participant may bring an advocate to the
15.28face-to-face meeting. If a face-to-face meeting is not conducted, the county agency must
15.29send the participant a written notice that includes the information required under clause (1).
15.30(1) During the face-to-face meeting, the county agency must:
15.31(i) determine whether the continued noncompliance can be explained and mitigated
15.32by providing a needed preemployment activity, as defined in section 256J.49, subdivision
15.3313 , clause (9);
15.34(ii) determine whether the participant qualifies for a good cause exception under
15.35section 256J.57, or if the sanction is for noncooperation with child support requirements,
16.1determine if the participant qualifies for a good cause exemption under section 256.741,
16.2subdivision 10 ;
16.3(iii) determine whether the work activities in the employment plan are appropriate
16.4based on the criteria in section 256J.521, subdivision 2 or 3;
16.5(iv) determine whether the participant qualifies for the family violence waiver;
16.6(v) inform the participant of the participant's sanction status and explain the
16.7consequences of continuing noncompliance;
16.8(vi) identify other resources that may be available to the participant to meet the
16.9needs of the family; and
16.10(vii) inform the participant of the right to appeal under section 256J.40.
16.11(2) If the lack of an identified activity or service can explain the noncompliance, the
16.12county must work with the participant to provide the identified activity.
16.13(3) The grant must be restored to the full amount for which the assistance unit is
16.14eligible retroactively to the first day of the month in which the participant was found to
16.15lack preemployment activities or to qualify for a family violence waiver or for a good
16.16cause exemption under section 256.741, subdivision 10, or 256J.57.
16.17(e) For the purpose of applying sanctions under this section, only occurrences of
16.18noncompliance that occur after July 1, 2003 2012, shall be considered. If the participant
16.19is in 30 percent sanction in the month this section takes effect, that month counts as the
16.20first occurrence for purposes of applying the sanctions under this section, but the sanction
16.21shall remain at 30 percent for that month.
16.22(f) An assistance unit whose case is closed under paragraph (d) or (g), may
16.23reapply for MFIP and shall be eligible if the participant complies with MFIP program
16.24requirements and demonstrates compliance for up to one month. No assistance shall be
16.25paid during this period.
16.26(g) An assistance unit whose case has been closed for noncompliance, that reapplies
16.27under paragraph (f), is subject to sanction under paragraph (c), clause (2), for a first
16.28occurrence of noncompliance. Any subsequent occurrence of noncompliance shall result
16.29in case closure under paragraph (d).

16.30    Sec. 20. Minnesota Statutes 2010, section 256J.50, subdivision 6, is amended to read:
16.31    Subd. 6. Explanatory materials required. The county must:
16.32(1) explain to applicants and recipients and provide explanatory materials regarding
16.33the relationship between the 60-month time limit under section 256J.42, subdivision 1, on
16.34assistance funded with TANF dollars and the receipt of various benefits, including cash
16.35assistance, food stamps or food support, medical assistance, and child care assistance; and
17.1(2) provide assistance to applicants and recipients to enable them to minimize the
17.2use of their 60 allowable months of TANF-funded assistance.
17.3EFFECTIVE DATE.This section is effective July 1, 2012.

17.4    Sec. 21. Minnesota Statutes 2010, section 256J.50, subdivision 10, is amended to read:
17.5    Subd. 10. Required notification to victims of family violence. (a) County
17.6agencies and their contractors must provide universal notification to all applicants and
17.7recipients of MFIP that:
17.8(1) referrals to counseling and supportive services are available for victims of family
17.9violence;
17.10(2) nonpermanent resident battered individuals married to United States citizens or
17.11permanent residents may be eligible to petition for permanent residency under the federal
17.12Violence Against Women Act, and that referrals to appropriate legal services are available;
17.13(3) victims of family violence are exempt from the 60-month limit under section
17.14256J.42, subdivision 1, on assistance if they are complying with an employment plan
17.15under section 256J.521, subdivision 3; and
17.16(4) victims of family violence may choose to have regular work requirements waived
17.17while the individual is complying with an employment plan under section 256J.521,
17.18subdivision 3 .
17.19(b) If an employment plan under section 256J.521, subdivision 3, is denied, the
17.20county or a job counselor must provide reasons why the plan is not approved and document
17.21how the denial of the plan does not interfere with the safety of the participant or children.
17.22Notification must be in writing and orally at the time of application and
17.23recertification, when the individual is referred to the title IV-D child support agency, and
17.24at the beginning of any job training or work placement assistance program.
17.25EFFECTIVE DATE.This section is effective July 1, 2012.

17.26    Sec. 22. Minnesota Statutes 2010, section 256J.575, subdivision 3, is amended to read:
17.27    Subd. 3. Eligibility. (a) The following MFIP participants are eligible for the
17.28services under this section:
17.29    (1) a participant who meets the requirements for or has been granted a hardship
17.30extension under section 256J.425, subdivision 2 or 3, except that it is not necessary for the
17.31participant to have reached or be approaching 60 months of eligibility the time limit under
17.32section 256J.42, subdivision 1, for this section to apply;
18.1    (2) a participant who is applying for Supplemental Security Income or Social
18.2Security disability insurance;
18.3    (3) a participant who is a noncitizen who has been in the United States for 12 or
18.4fewer months; and
18.5(4) a participant who is age 60 or older.
18.6    (b) Families must meet all other eligibility requirements for MFIP established in
18.7this chapter. Families are eligible for financial assistance to the same extent as if they
18.8were participating in MFIP.
18.9    (c) A participant under paragraph (a), clause (3), must be provided with English as a
18.10second language opportunities and skills training for up to 12 months. After 12 months,
18.11the case manager and participant must determine whether the participant should continue
18.12with English as a second language classes or skills training, or both, and continue to
18.13receive family stabilization services.
18.14(d) If a county agency or employment services provider has information that an
18.15MFIP participant may meet the eligibility criteria set forth in this subdivision, the county
18.16agency or employment services provider must assist the participant in obtaining the
18.17documentation necessary to determine eligibility.
18.18EFFECTIVE DATE.This section is effective July 1, 2012.

18.19    Sec. 23. Minnesota Statutes 2010, section 256J.621, is amended to read:
18.20256J.621 WORK PARTICIPATION CASH BENEFITS.
18.21    (a) Effective October 1, 2009, upon exiting the diversionary work program (DWP)
18.22or upon terminating the Minnesota family investment program with earnings, a participant
18.23who is employed may be eligible for work participation cash benefits of $25 per month
18.24to assist in meeting the family's basic needs as the participant continues to move toward
18.25self-sufficiency.
18.26    (b) To be eligible for work participation cash benefits, the participant shall not
18.27receive MFIP or diversionary work program assistance during the month and the
18.28participant or participants must meet the following work requirements:
18.29    (1) if the participant is a single caregiver and has a child under six years of age, the
18.30participant must be employed at least 87 hours per month;
18.31    (2) if the participant is a single caregiver and does not have a child under six years of
18.32age, the participant must be employed at least 130 hours per month; or
18.33    (3) if the household is a two-parent family, at least one of the parents must be
18.34employed an average of at least 130 hours per month.
19.1    Whenever a participant exits the diversionary work program or is terminated from
19.2MFIP and meets the other criteria in this section, work participation cash benefits are
19.3available for up to 24 consecutive months.
19.4    (c) Expenditures on the program are maintenance of effort state funds under
19.5a separate state program for participants under paragraph (b), clauses (1) and (2).
19.6Expenditures for participants under paragraph (b), clause (3), are nonmaintenance of
19.7effort funds. Months in which a participant receives work participation cash benefits
19.8under this section do not count toward the participant's MFIP 60-month time limit under
19.9section 256J.42, subdivision 1.
19.10EFFECTIVE DATE.This section is effective July 1, 2012.

19.11    Sec. 24. Minnesota Statutes 2010, section 256J.626, subdivision 2, is amended to read:
19.12    Subd. 2. Allowable expenditures. (a) The commissioner must restrict expenditures
19.13under the consolidated fund to benefits and services allowed under title IV-A of the federal
19.14Social Security Act. Allowable expenditures under the consolidated fund may include, but
19.15are not limited to:
19.16    (1) short-term, nonrecurring shelter and utility needs that are excluded from the
19.17definition of assistance under Code of Federal Regulations, title 45, section 260.31, for
19.18families who meet the residency requirement in section 256J.12, subdivisions 1 and 1a.
19.19Payments under this subdivision are not considered TANF cash assistance and are not
19.20counted towards toward the 60-month time limit under section 256J.42, subdivision 1;
19.21    (2) transportation needed to obtain or retain employment or to participate in other
19.22approved work activities or activities under a family stabilization plan;
19.23    (3) direct and administrative costs of staff to deliver employment services for
19.24MFIP, the diversionary work program, or family stabilization services; to administer
19.25financial assistance; and to provide specialized services intended to assist hard-to-employ
19.26participants to transition to work or transition from family stabilization services to MFIP;
19.27    (4) costs of education and training including functional work literacy and English as
19.28a second language;
19.29    (5) cost of work supports including tools, clothing, boots, telephone service, and
19.30other work-related expenses;
19.31    (6) county administrative expenses as defined in Code of Federal Regulations, title
19.3245, section 260(b);
19.33    (7) services to parenting and pregnant teens;
19.34    (8) supported work;
19.35    (9) wage subsidies;
20.1    (10) child care needed for MFIP, the diversionary work program, or family
20.2stabilization services participants to participate in social services;
20.3    (11) child care to ensure that families leaving MFIP or diversionary work program
20.4will continue to receive child care assistance from the time the family no longer qualifies
20.5for transition year child care until an opening occurs under the basic sliding fee child
20.6care program;
20.7    (12) services to help noncustodial parents who live in Minnesota and have minor
20.8children receiving MFIP or DWP assistance, but do not live in the same household as the
20.9child, obtain or retain employment; and
20.10    (13) services to help families participating in family stabilization services achieve
20.11the greatest possible degree of self-sufficiency.
20.12    (b) Administrative costs that are not matched with county funds as provided in
20.13subdivision 8 may not exceed 7.5 percent of a county's or 15 percent of a tribe's allocation
20.14under this section. The commissioner shall define administrative costs for purposes of
20.15this subdivision.
20.16    (c) The commissioner may waive the cap on administrative costs for a county or tribe
20.17that elects to provide an approved supported employment, unpaid work, or community
20.18work experience program for a major segment of the county's or tribe's MFIP population.
20.19The county or tribe must apply for the waiver on forms provided by the commissioner. In
20.20no case shall total administrative costs exceed the TANF limits.
20.21EFFECTIVE DATE.This section is effective July 1, 2012.

20.22    Sec. 25. Minnesota Statutes 2010, section 256J.751, subdivision 1, is amended to read:
20.23    Subdivision 1. Monthly county caseload report. The commissioner shall report
20.24monthly to each county the following caseload information:
20.25(1) total number of cases receiving MFIP, and subtotals of cases with one eligible
20.26parent, two eligible parents, and an eligible caregiver who is not a parent;
20.27(2) total number of child only assistance cases;
20.28(3) total number of eligible adults and children receiving an MFIP grant, and
20.29subtotals for cases with one eligible parent, two eligible parents, an eligible caregiver
20.30who is not a parent, and child only cases;
20.31(4) number of cases with an exemption from the 60-month time limit under section
20.32256J.42, subdivision 1, based on a family violence waiver;
20.33(5) number of MFIP cases with work hours, and subtotals for cases with one eligible
20.34parent, two eligible parents, and an eligible caregiver who is not a parent;
21.1(6) number of employed MFIP cases, and subtotals for cases with one eligible
21.2parent, two eligible parents, and an eligible caregiver who is not a parent;
21.3(7) average monthly gross earnings, and averages for subgroups of cases with one
21.4eligible parent, two eligible parents, and an eligible caregiver who is not a parent;
21.5(8) number of employed cases receiving only the food portion of assistance;
21.6(9) number of parents or caregivers exempt from work activity requirements, with
21.7subtotals for each exemption type; and
21.8(10) number of cases with a sanction, with subtotals by level of sanction for cases
21.9with one eligible parent, two eligible parents, and an eligible caregiver who is not a parent.
21.10EFFECTIVE DATE.This section is effective July 1, 2012."
21.11Amend the title accordingly