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KEY: stricken = removed, old language.underscored = new language to be added

scs-hhs-safeandhealthychildren--art3

A bill for an act
relating to BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
107.11ARTICLE 3
107.12SAFE AND HEALTHY DEVELOPMENT OF CHILDREN,
107.13YOUTH, AND FAMILIES

107.14    Section 1. Minnesota Statutes 2012, section 119B.05, subdivision 1, is amended to read:
107.15    Subdivision 1. Eligible participants. Families eligible for child care assistance
107.16under the MFIP child care program are:
107.17    (1) MFIP participants who are employed or in job search and meet the requirements
107.18of section 119B.10;
107.19    (2) persons who are members of transition year families under section 119B.011,
107.20subdivision 20
, and meet the requirements of section 119B.10;
107.21    (3) families who are participating in employment orientation or job search, or
107.22other employment or training activities that are included in an approved employability
107.23development plan under section 256J.95;
107.24    (4) MFIP families who are participating in work job search, job support,
107.25employment, or training activities as required in their employment plan, or in appeals,
107.26hearings, assessments, or orientations according to chapter 256J;
107.27    (5) MFIP families who are participating in social services activities under chapter
107.28256J or mental health treatment as required in their employment plan approved according
107.29to chapter 256J;
107.30    (6) families who are participating in services or activities that are included in an
107.31approved family stabilization plan under section 256J.575;
107.32    (7) MFIP child-only cases under section 256J.88, for up to 20 hours of child care
107.33per child per week under the following conditions: (i) child care will be authorized if the
107.34child's primary caregiver is receiving SSI for a disability related to depression or other
108.1serious mental illness; and (ii) child care will only be authorized for children five years
108.2of age or younger. The child's authorized care under this clause is not conditional based
108.3on the primary caregiver participating in an authorized activity under section 119B.07 or
108.4119B.11. Medical appointments, treatment, or therapy are considered authorized activities
108.5for participants in this category;
108.6    (8) families who are participating in programs as required in tribal contracts under
108.7section 119B.02, subdivision 2, or 256.01, subdivision 2; and
108.8    (8) (9) families who are participating in the transition year extension under section
108.9119B.011, subdivision 20a .

108.10    Sec. 2. Minnesota Statutes 2012, section 119B.13, subdivision 1, is amended to read:
108.11    Subdivision 1. Subsidy restrictions. (a) Beginning October 31, 2011 July 1, 2014,
108.12the maximum rate paid for child care assistance in any county or multicounty region under
108.13the child care fund shall be the rate for like-care arrangements in the county effective July
108.141, 2006 2012, decreased increased by 2.5 two percent.
108.15    (b) Biennially, beginning in 2012, the commissioner shall survey rates charged
108.16by child care providers in Minnesota to determine the 75th percentile for like-care
108.17arrangements in counties. When the commissioner determines that, using the
108.18commissioner's established protocol, the number of providers responding to the survey is
108.19too small to determine the 75th percentile rate for like-care arrangements in a county or
108.20multicounty region, the commissioner may establish the 75th percentile maximum rate
108.21based on like-care arrangements in a county, region, or category that the commissioner
108.22deems to be similar.
108.23    (c) A rate which includes a special needs rate paid under subdivision 3 or under a
108.24school readiness service agreement paid under section 119B.231, may be in excess of the
108.25maximum rate allowed under this subdivision.
108.26    (d) The department shall monitor the effect of this paragraph on provider rates. The
108.27county shall pay the provider's full charges for every child in care up to the maximum
108.28established. The commissioner shall determine the maximum rate for each type of care
108.29on an hourly, full-day, and weekly basis, including special needs and disability care. The
108.30maximum payment to a provider for one day of care must not exceed the daily rate. The
108.31maximum payment to a provider for one week of care must not exceed the weekly rate.
108.32(e) Child care providers receiving reimbursement under this chapter must not be
108.33paid activity fees or an additional amount above the maximum rates for care provided
108.34during nonstandard hours for families receiving assistance.
109.1    (f) When the provider charge is greater than the maximum provider rate allowed,
109.2the parent is responsible for payment of the difference in the rates in addition to any
109.3family co-payment fee.
109.4    (g) All maximum provider rates changes shall be implemented on the Monday
109.5following the effective date of the maximum provider rate.

109.6    Sec. 3. Minnesota Statutes 2012, section 119B.13, subdivision 7, is amended to read:
109.7    Subd. 7. Absent days. (a) Licensed child care providers and license-exempt centers
109.8must not be reimbursed for more than ten 25 full-day absent days per child, excluding
109.9holidays, in a fiscal year, or for more than ten consecutive full-day absent days. Legal
109.10nonlicensed family child care providers must not be reimbursed for absent days. If a child
109.11attends for part of the time authorized to be in care in a day, but is absent for part of the
109.12time authorized to be in care in that same day, the absent time must be reimbursed but the
109.13time must not count toward the ten 25 absent day days limit. Child care providers must
109.14only be reimbursed for absent days if the provider has a written policy for child absences
109.15and charges all other families in care for similar absences.
109.16(b) Notwithstanding paragraph (a), children in families may exceed the ten 25 absent
109.17days limit if at least one parent: (1) is under the age of 21; (2) does not have a high school
109.18or general equivalency diploma; and (3) is a student in a school district or another similar
109.19program that provides or arranges for child care, parenting support, social services, career
109.20and employment supports, and academic support to achieve high school graduation, upon
109.21request of the program and approval of the county. If a child attends part of an authorized
109.22day, payment to the provider must be for the full amount of care authorized for that day.
109.23    (c) Child care providers must be reimbursed for up to ten federal or state holidays or
109.24designated holidays per year when the provider charges all families for these days and the
109.25holiday or designated holiday falls on a day when the child is authorized to be in attendance.
109.26Parents may substitute other cultural or religious holidays for the ten recognized state and
109.27federal holidays. Holidays do not count toward the ten 25 absent day days limit.
109.28    (d) A family or child care provider must not be assessed an overpayment for an
109.29absent day payment unless (1) there was an error in the amount of care authorized for the
109.30family, (2) all of the allowed full-day absent payments for the child have been paid, or (3)
109.31the family or provider did not timely report a change as required under law.
109.32    (e) The provider and family shall receive notification of the number of absent days
109.33used upon initial provider authorization for a family and ongoing notification of the
109.34number of absent days used as of the date of the notification.

110.1    Sec. 4. Minnesota Statutes 2012, section 252.27, subdivision 2a, is amended to read:
110.2    Subd. 2a. Contribution amount. (a) The natural or adoptive parents of a minor
110.3child, including a child determined eligible for medical assistance without consideration of
110.4parental income, must contribute to the cost of services used by making monthly payments
110.5on a sliding scale based on income, unless the child is married or has been married, parental
110.6rights have been terminated, or the child's adoption is subsidized according to section
110.7259.67 or through title IV-E of the Social Security Act. The parental contribution is a partial
110.8or full payment for medical services provided for diagnostic, therapeutic, curing, treating,
110.9mitigating, rehabilitation, maintenance, and personal care services as defined in United
110.10States Code, title 26, section 213, needed by the child with a chronic illness or disability.
110.11    (b) For households with adjusted gross income equal to or greater than 100 percent
110.12of federal poverty guidelines, the parental contribution shall be computed by applying the
110.13following schedule of rates to the adjusted gross income of the natural or adoptive parents:
110.14    (1) if the adjusted gross income is equal to or greater than 100 percent of federal
110.15poverty guidelines and less than 175 percent of federal poverty guidelines, the parental
110.16contribution is $4 per month;
110.17    (2) if the adjusted gross income is equal to or greater than 175 percent of federal
110.18poverty guidelines and less than or equal to 545 percent of federal poverty guidelines,
110.19the parental contribution shall be determined using a sliding fee scale established by the
110.20commissioner of human services which begins at one percent of adjusted gross income
110.21at 175 percent of federal poverty guidelines and increases to 7.5 percent of adjusted
110.22gross income for those with adjusted gross income up to 545 percent of federal poverty
110.23guidelines;
110.24    (3) if the adjusted gross income is greater than 545 percent of federal poverty
110.25guidelines and less than 675 percent of federal poverty guidelines, the parental
110.26contribution shall be 7.5 percent of adjusted gross income;
110.27    (4) if the adjusted gross income is equal to or greater than 675 percent of federal
110.28poverty guidelines and less than 975 percent of federal poverty guidelines, the parental
110.29contribution shall be determined using a sliding fee scale established by the commissioner
110.30of human services which begins at 7.5 percent of adjusted gross income at 675 percent of
110.31federal poverty guidelines and increases to ten percent of adjusted gross income for those
110.32with adjusted gross income up to 975 percent of federal poverty guidelines; and
110.33    (5) if the adjusted gross income is equal to or greater than 975 percent of federal
110.34poverty guidelines, the parental contribution shall be 12.5 percent of adjusted gross income.
110.35    If the child lives with the parent, the annual adjusted gross income is reduced by
110.36$2,400 prior to calculating the parental contribution. If the child resides in an institution
111.1specified in section 256B.35, the parent is responsible for the personal needs allowance
111.2specified under that section in addition to the parental contribution determined under this
111.3section. The parental contribution is reduced by any amount required to be paid directly to
111.4the child pursuant to a court order, but only if actually paid.
111.5    (c) The household size to be used in determining the amount of contribution under
111.6paragraph (b) includes natural and adoptive parents and their dependents, including the
111.7child receiving services. Adjustments in the contribution amount due to annual changes
111.8in the federal poverty guidelines shall be implemented on the first day of July following
111.9publication of the changes.
111.10    (d) For purposes of paragraph (b), "income" means the adjusted gross income of the
111.11natural or adoptive parents determined according to the previous year's federal tax form,
111.12except, effective retroactive to July 1, 2003, taxable capital gains to the extent the funds
111.13have been used to purchase a home shall not be counted as income.
111.14    (e) The contribution shall be explained in writing to the parents at the time eligibility
111.15for services is being determined. The contribution shall be made on a monthly basis
111.16effective with the first month in which the child receives services. Annually upon
111.17redetermination or at termination of eligibility, if the contribution exceeded the cost of
111.18services provided, the local agency or the state shall reimburse that excess amount to
111.19the parents, either by direct reimbursement if the parent is no longer required to pay a
111.20contribution, or by a reduction in or waiver of parental fees until the excess amount is
111.21exhausted. All reimbursements must include a notice that the amount reimbursed may be
111.22taxable income if the parent paid for the parent's fees through an employer's health care
111.23flexible spending account under the Internal Revenue Code, section 125, and that the
111.24parent is responsible for paying the taxes owed on the amount reimbursed.
111.25    (f) The monthly contribution amount must be reviewed at least every 12 months;
111.26when there is a change in household size; and when there is a loss of or gain in income
111.27from one month to another in excess of ten percent. The local agency shall mail a written
111.28notice 30 days in advance of the effective date of a change in the contribution amount.
111.29A decrease in the contribution amount is effective in the month that the parent verifies a
111.30reduction in income or change in household size.
111.31    (g) Parents of a minor child who do not live with each other shall each pay the
111.32contribution required under paragraph (a). An amount equal to the annual court-ordered
111.33child support payment actually paid on behalf of the child receiving services shall be
111.34deducted from the adjusted gross income of the parent making the payment prior to
111.35calculating the parental contribution under paragraph (b).
112.1    (h) The contribution under paragraph (b) shall be increased by an additional five
112.2percent if the local agency determines that insurance coverage is available but not
112.3obtained for the child. For purposes of this section, "available" means the insurance is a
112.4benefit of employment for a family member at an annual cost of no more than five percent
112.5of the family's annual income. For purposes of this section, "insurance" means health
112.6and accident insurance coverage, enrollment in a nonprofit health service plan, health
112.7maintenance organization, self-insured plan, or preferred provider organization.
112.8    Parents who have more than one child receiving services shall not be required
112.9to pay more than the amount for the child with the highest expenditures. There shall
112.10be no resource contribution from the parents. The parent shall not be required to pay
112.11a contribution in excess of the cost of the services provided to the child, not counting
112.12payments made to school districts for education-related services. Notice of an increase in
112.13fee payment must be given at least 30 days before the increased fee is due.
112.14    (i) The contribution under paragraph (b) shall be reduced by $300 per fiscal year if,
112.15in the 12 months prior to July 1:
112.16    (1) the parent applied for insurance for the child;
112.17    (2) the insurer denied insurance;
112.18    (3) the parents submitted a complaint or appeal, in writing to the insurer, submitted
112.19a complaint or appeal, in writing, to the commissioner of health or the commissioner of
112.20commerce, or litigated the complaint or appeal; and
112.21    (4) as a result of the dispute, the insurer reversed its decision and granted insurance.
112.22    For purposes of this section, "insurance" has the meaning given in paragraph (h).
112.23    A parent who has requested a reduction in the contribution amount under this
112.24paragraph shall submit proof in the form and manner prescribed by the commissioner or
112.25county agency, including, but not limited to, the insurer's denial of insurance, the written
112.26letter or complaint of the parents, court documents, and the written response of the insurer
112.27approving insurance. The determinations of the commissioner or county agency under this
112.28paragraph are not rules subject to chapter 14.
112.29(j) Notwithstanding paragraph (b), for the period from July 1, 2010, to June 30,
112.302015, the parental contribution shall be computed by applying the following contribution
112.31schedule to the adjusted gross income of the natural or adoptive parents:
112.32(1) if the adjusted gross income is equal to or greater than 100 percent of federal
112.33poverty guidelines and less than 175 percent of federal poverty guidelines, the parental
112.34contribution is $4 per month;
112.35(2) if the adjusted gross income is equal to or greater than 175 percent of federal
112.36poverty guidelines and less than or equal to 525 percent of federal poverty guidelines,
113.1the parental contribution shall be determined using a sliding fee scale established by the
113.2commissioner of human services which begins at one percent of adjusted gross income
113.3at 175 percent of federal poverty guidelines and increases to eight percent of adjusted
113.4gross income for those with adjusted gross income up to 525 percent of federal poverty
113.5guidelines;
113.6(3) if the adjusted gross income is greater than 525 percent of federal poverty
113.7guidelines and less than 675 percent of federal poverty guidelines, the parental
113.8contribution shall be 9.5 percent of adjusted gross income;
113.9(4) if the adjusted gross income is equal to or greater than 675 percent of federal
113.10poverty guidelines and less than 900 percent of federal poverty guidelines, the parental
113.11contribution shall be determined using a sliding fee scale established by the commissioner
113.12of human services which begins at 9.5 percent of adjusted gross income at 675 percent of
113.13federal poverty guidelines and increases to 12 percent of adjusted gross income for those
113.14with adjusted gross income up to 900 percent of federal poverty guidelines; and
113.15(5) if the adjusted gross income is equal to or greater than 900 percent of federal
113.16poverty guidelines, the parental contribution shall be 13.5 percent of adjusted gross
113.17income. If the child lives with the parent, the annual adjusted gross income is reduced by
113.18$2,400 prior to calculating the parental contribution. If the child resides in an institution
113.19specified in section 256B.35, the parent is responsible for the personal needs allowance
113.20specified under that section in addition to the parental contribution determined under this
113.21section. The parental contribution is reduced by any amount required to be paid directly to
113.22the child pursuant to a court order, but only if actually paid.

113.23    Sec. 5. Minnesota Statutes 2012, section 256.82, subdivision 3, is amended to read:
113.24    Subd. 3. Setting foster care standard rates. The commissioner shall annually
113.25establish minimum standard maintenance rates for foster care maintenance and difficulty
113.26of care payments for all children in foster care. Any increase in rates shall in no case
113.27exceed three percent per annum. The foster care rates in effect on January 1, 2013, shall
113.28remain in effect until December 13, 2015.

113.29    Sec. 6. Minnesota Statutes 2012, section 256J.08, subdivision 24, is amended to read:
113.30    Subd. 24. Disregard. "Disregard" means earned income that is not counted when
113.31determining initial eligibility in the initial income test in section 256J.21, subdivision 3,
113.32 or income that is not counted when determining ongoing eligibility and calculating the
113.33amount of the assistance payment for participants. The commissioner shall determine
114.1the amount of the disregard according to section 256J.24, subdivision 10 for ongoing
114.2eligibility shall be 50 percent of gross earned income.
114.3EFFECTIVE DATE.This section is effective October 1, 2013, or upon approval
114.4from the United States Department of Agriculture, whichever is later.

114.5    Sec. 7. Minnesota Statutes 2012, section 256J.21, subdivision 3, is amended to read:
114.6    Subd. 3. Initial income test. The county agency shall determine initial eligibility
114.7by considering all earned and unearned income that is not excluded under subdivision 2.
114.8To be eligible for MFIP, the assistance unit's countable income minus the disregards in
114.9paragraphs (a) and (b) must be below the transitional standard of assistance family wage
114.10level according to section 256J.24 for that size assistance unit.
114.11(a) The initial eligibility determination must disregard the following items:
114.12(1) the employment disregard is 18 percent of the gross earned income whether or
114.13not the member is working full time or part time;
114.14(2) dependent care costs must be deducted from gross earned income for the actual
114.15amount paid for dependent care up to a maximum of $200 per month for each child less
114.16than two years of age, and $175 per month for each child two years of age and older under
114.17this chapter and chapter 119B;
114.18(3) all payments made according to a court order for spousal support or the support
114.19of children not living in the assistance unit's household shall be disregarded from the
114.20income of the person with the legal obligation to pay support, provided that, if there has
114.21been a change in the financial circumstances of the person with the legal obligation to pay
114.22support since the support order was entered, the person with the legal obligation to pay
114.23support has petitioned for a modification of the support order; and
114.24(4) an allocation for the unmet need of an ineligible spouse or an ineligible child
114.25under the age of 21 for whom the caregiver is financially responsible and who lives with
114.26the caregiver according to section 256J.36.
114.27(b) Notwithstanding paragraph (a), when determining initial eligibility for applicant
114.28units when at least one member has received MFIP in this state within four months of
114.29the most recent application for MFIP, apply the disregard as defined in section 256J.08,
114.30subdivision 24
, for all unit members.
114.31After initial eligibility is established, the assistance payment calculation is based on
114.32the monthly income test.
114.33EFFECTIVE DATE.This section is effective October 1, 2013, or upon approval
114.34from the United States Department of Agriculture, whichever is later.

115.1    Sec. 8. Minnesota Statutes 2012, section 256J.24, subdivision 5, is amended to read:
115.2    Subd. 5. MFIP transitional standard. The MFIP transitional standard is based
115.3on the number of persons in the assistance unit eligible for both food and cash assistance
115.4unless the restrictions in subdivision 6 on the birth of a child apply. The amount of the
115.5transitional standard is published annually by the Department of Human Services.
115.6EFFECTIVE DATE.This section is effective July 1, 2014.

115.7    Sec. 9. Minnesota Statutes 2012, section 256J.24, subdivision 5a, is amended to read:
115.8    Subd. 5a. Food portion of Adjustments to the MFIP transitional standard. (a)
115.9Effective October 1, 2015, the commissioner shall adjust the MFIP transitional standard as
115.10needed to reflect a onetime increase in the cash portion of 16 percent.
115.11(b) When any adjustments are made in the Supplemental Nutrition Assistance
115.12Program, the commissioner shall adjust the food portion of the MFIP transitional standard
115.13as needed to reflect adjustments to the Supplemental Nutrition Assistance Program. The
115.14commissioner shall publish the transitional standard including a breakdown of the cash
115.15and food portions for an assistance unit of sizes one to ten in the State Register whenever
115.16an adjustment is made.

115.17    Sec. 10. Minnesota Statutes 2012, section 256J.24, subdivision 7, is amended to read:
115.18    Subd. 7. Family wage level. The family wage level is 110 percent of the transitional
115.19standard under subdivision 5 or 6, when applicable, and is the standard used when there is
115.20earned income in the assistance unit. As specified in section 256J.21. If there is earned
115.21income in the assistance unit, earned income is subtracted from the family wage level to
115.22determine the amount of the assistance payment, as specified in section 256J.21. The
115.23assistance payment may not exceed the transitional standard under subdivision 5 or 6,
115.24or the shared household standard under subdivision 9, whichever is applicable, for the
115.25assistance unit.
115.26EFFECTIVE DATE.This section is effective October 1, 2013, or upon approval
115.27from the United States Department of Agriculture, whichever is later.

115.28    Sec. 11. Minnesota Statutes 2012, section 256J.621, is amended to read:
115.29256J.621 WORK PARTICIPATION CASH BENEFITS.
115.30    Subdivision 1. Program characteristics. (a) Effective October 1, 2009, upon
115.31exiting the diversionary work program (DWP) or upon terminating the Minnesota family
115.32investment program with earnings, a participant who is employed may be eligible for work
116.1participation cash benefits of $25 per month to assist in meeting the family's basic needs
116.2as the participant continues to move toward self-sufficiency.
116.3    (b) To be eligible for work participation cash benefits, the participant shall not
116.4receive MFIP or diversionary work program assistance during the month and the
116.5participant or participants must meet the following work requirements:
116.6    (1) if the participant is a single caregiver and has a child under six years of age, the
116.7participant must be employed at least 87 hours per month;
116.8    (2) if the participant is a single caregiver and does not have a child under six years of
116.9age, the participant must be employed at least 130 hours per month; or
116.10    (3) if the household is a two-parent family, at least one of the parents must be
116.11employed 130 hours per month.
116.12    Whenever a participant exits the diversionary work program or is terminated from
116.13MFIP and meets the other criteria in this section, work participation cash benefits are
116.14available for up to 24 consecutive months.
116.15    (c) Expenditures on the program are maintenance of effort state funds under
116.16a separate state program for participants under paragraph (b), clauses (1) and (2).
116.17Expenditures for participants under paragraph (b), clause (3), are nonmaintenance of effort
116.18funds. Months in which a participant receives work participation cash benefits under this
116.19section do not count toward the participant's MFIP 60-month time limit.
116.20    Subd. 2. Program suspension. (a) Effective December 1, 2013, the work
116.21participation cash benefits program shall be suspended.
116.22(b) The commissioner of human services may reinstate the work participation cash
116.23benefits program if the United States Department of Human Services determines that the
116.24state of Minnesota did not meet the federal TANF work participation rate, and sends a
116.25notice of penalty to reduce Minnesota's federal TANF block grant authorized under title I
116.26of Public Law 104-193, the Personal Responsibility and Work Opportunity Reconciliation
116.27Act of 1996, and under Public Law 109-171, the Deficit Reduction Act of 2005.
116.28(c) The commissioner shall notify the chairs of the legislative committees with
116.29jurisdiction over human services policy and funding of the potential penalty and the
116.30commissioner's plans to reinstate the work participation cash benefit program within 30
116.31days of the date the commissioner receives notification that the state failed to meet the
116.32federal work participation rate.

116.33    Sec. 12. Minnesota Statutes 2012, section 256J.626, subdivision 7, is amended to read:
116.34    Subd. 7. Performance base funds. (a) For the purpose of this section, the following
116.35terms have the meanings given.
117.1(1) "Caseload Reduction Credit" (CRC) means the measure of how much Minnesota
117.2TANF and separate state program caseload has fallen relative to federal fiscal year 2005
117.3based on caseload data from October 1 to September 30.
117.4(2) "TANF participation rate target" means a 50 percent participation rate reduced by
117.5the CRC for the previous year.
117.6(b) (a) For calendar year 2010 2016 and yearly thereafter, each county and tribe will
117.7 must be allocated 95 percent of their initial calendar year allocation. Allocations for
117.8counties and tribes will must be allocated additional funds adjusted based on performance
117.9as follows:
117.10    (1) a county or tribe that achieves the TANF participation rate target or a five
117.11percentage point improvement over the previous year's TANF participation rate under
117.12section 256J.751, subdivision 2, clause (7), as averaged across 12 consecutive months for
117.13the most recent year for which the measurements are available, will receive an additional
117.14allocation equal to 2.5 percent of its initial allocation;
117.15    (2) (1) a county or tribe that performs within or above its range of expected
117.16performance on the annualized three-year self-support index under section 256J.751,
117.17subdivision 2
, clause (6), will must receive an additional allocation equal to 2.5 five
117.18percent of its initial allocation; and
117.19    (3) a county or tribe that does not achieve the TANF participation rate target or
117.20a five percentage point improvement over the previous year's TANF participation rate
117.21under section 256J.751, subdivision 2, clause (7), as averaged across 12 consecutive
117.22months for the most recent year for which the measurements are available, will not
117.23receive an additional 2.5 percent of its initial allocation until after negotiating a multiyear
117.24improvement plan with the commissioner; or
117.25    (4) (2) a county or tribe that does not perform within or above performs below its
117.26range of expected performance on the annualized three-year self-support index under
117.27section 256J.751, subdivision 2, clause (6), will not receive an additional allocation equal
117.28to 2.5 percent of its initial allocation until after negotiating for a single year, may receive
117.29an additional allocation of up to five percent of its initial allocation. A county or tribe that
117.30continues to perform below its range of expected performance for two consecutive years
117.31must negotiate a multiyear improvement plan with the commissioner. If no improvement
117.32is shown by the end of the multiyear plan, the commissioner may decrease the county's or
117.33tribe's performance-based funds by up to five percent. The decrease must remain in effect
117.34until the county or tribe performs within or above its range of expected performance.
117.35    (c) (b) For calendar year 2009 2016 and yearly thereafter, performance-based funds
117.36for a federally approved tribal TANF program in which the state and tribe have in place a
118.1contract under section 256.01, addressing consolidated funding, will must be allocated
118.2as follows:
118.3    (1) a tribe that achieves the participation rate approved in its federal TANF plan
118.4using the average of 12 consecutive months for the most recent year for which the
118.5measurements are available, will receive an additional allocation equal to 2.5 percent of
118.6its initial allocation; and
118.7    (2) (1) a tribe that performs within or above its range of expected performance on the
118.8annualized three-year self-support index under section 256J.751, subdivision 2, clause (6),
118.9will must receive an additional allocation equal to 2.5 percent of its initial allocation; or
118.10    (3) a tribe that does not achieve the participation rate approved in its federal TANF
118.11plan using the average of 12 consecutive months for the most recent year for which the
118.12measurements are available, will not receive an additional allocation equal to 2.5 percent
118.13of its initial allocation until after negotiating a multiyear improvement plan with the
118.14commissioner; or
118.15    (4) (2) a tribe that does not perform within or above performs below its range of
118.16expected performance on the annualized three-year self-support index under section
118.17256J.751, subdivision 2 , clause (6), will not receive an additional allocation equal to 2.5
118.18percent until after negotiating for a single year may receive an additional allocation of up
118.19to five percent of its initial allocation. A county or tribe that continues to perform below
118.20its range of expected performance for two consecutive years must negotiate a multiyear
118.21improvement plan with the commissioner. If no improvement is shown by the end of the
118.22multiyear plan, the commissioner may decrease the tribe's performance-based funds by
118.23up to five percent. The decrease must remain in effect until the tribe performs within or
118.24above its range of expected performance.
118.25    (d) (c) Funds remaining unallocated after the performance-based allocations in
118.26paragraph paragraphs (a) and (b) are available to the commissioner for innovation projects
118.27under subdivision 5.
118.28     (1) (d) If available funds are insufficient to meet county and tribal allocations under
118.29paragraph paragraphs (a) and (b), the commissioner may make available for allocation
118.30funds that are unobligated and available from the innovation projects through the end of
118.31the current biennium shall proportionally prorate funds to counties and tribes that qualify
118.32for an additional allocation under paragraph (a), clause (1), and paragraph (b), clause (1).
118.33    (2) If after the application of clause (1) funds remain insufficient to meet county and
118.34tribal allocations under paragraph (b), the commissioner must proportionally reduce the
118.35allocation of each county and tribe with respect to their maximum allocation available
118.36under paragraph (b).

119.1    Sec. 13. [256J.78] TANF DEMONSTRATION PROJECTS OR WAIVER FROM
119.2FEDERAL RULES AND REGULATIONS.
119.3    Subdivision 1. Duties of the commissioner. The commissioner of human services
119.4may pursue TANF demonstration projects or waivers of TANF requirements from the
119.5United States Department of Health and Human Services as needed to allow the state to
119.6build a more results-oriented Minnesota Family Investment Program to better meet the
119.7needs of Minnesota families.
119.8    Subd. 2. Purpose. The purpose of the TANF demonstration projects or waivers is to:
119.9(1) replace the federal TANF process measure and its complex administrative
119.10requirements with state-developed outcomes measures that track adult employment and
119.11exits from MFIP cash assistance;
119.12(2) simplify programmatic and administrative requirements; and
119.13(3) make other policy or programmatic changes that improve the performance of the
119.14program and the outcomes for participants.
119.15    Subd. 3. Report to legislature. The commissioner shall report to the members of
119.16the legislative committees having jurisdiction over human services issues by March 1,
119.172014, regarding the progress of this waiver or demonstration project.
119.18EFFECTIVE DATE.This section is effective the day following final enactment.

119.19    Sec. 14. Minnesota Statutes 2012, section 256K.45, is amended to read:
119.20256K.45 RUNAWAY AND HOMELESS YOUTH ACT.
119.21    Subdivision 1. Definitions. (a) The definitions in this subdivision apply to this
119.22section.
119.23(b) "Commissioner" means the commissioner of human services.
119.24(c) "Homeless youth" means a person 21 years of age or younger who is
119.25unaccompanied by a parent or guardian and is without shelter where appropriate care and
119.26supervision are available, whose parent or legal guardian is unable or unwilling to provide
119.27shelter and care, or who lacks a fixed, regular, and adequate nighttime residence. The
119.28following are not fixed, regular, or adequate nighttime residences:
119.29(1) a supervised publicly or privately operated shelter designed to provide temporary
119.30living accommodations;
119.31(2) an institution or a publicly or privately operated shelter designed to provide
119.32temporary living accommodations;
119.33(3) transitional housing;
120.1(4) a temporary placement with a peer, friend, or family member that has not offered
120.2permanent residence, a residential lease, or temporary lodging for more than 30 days; or
120.3(5) a public or private place not designed for, nor ordinarily used as, a regular
120.4sleeping accommodation for human beings.
120.5Homeless youth does not include persons incarcerated or otherwise detained under
120.6federal or state law.
120.7(d) "Youth at risk of homelessness" means a person 21 years of age or younger
120.8whose status or circumstances indicate a significant danger of experiencing homelessness
120.9in the near future. Status or circumstances that indicate a significant danger may include:
120.10(1) youth exiting out-of-home placements; (2) youth who previously were homeless; (3)
120.11youth whose parents or primary caregivers are or were previously homeless; (4) youth
120.12who are exposed to abuse and neglect in their homes; (5) youth who experience conflict
120.13with parents due to chemical or alcohol dependency, mental health disabilities, or other
120.14disabilities; and (6) runaways.
120.15(e) "Runaway" means an unmarried child under the age of 18 years who is absent
120.16from the home of a parent or guardian or other lawful placement without the consent of
120.17the parent, guardian, or lawful custodian.
120.18    Subd. 2. Homeless and runaway youth report. The commissioner shall develop a
120.19 report for homeless youth, youth at risk of homelessness, and runaways. The report shall
120.20include coordination of services as defined under subdivisions 3 to 5 prepare a biennial
120.21report, beginning in February 2015, which provides meaningful information to the
120.22legislative committees having jurisdiction over the issue of homeless youth, that includes,
120.23but is not limited to: (1) a list of the areas of the state with the greatest need for services
120.24and housing for homeless youth, and the level and nature of the needs identified; (2) details
120.25about grants made; (3) the distribution of funds throughout the state based on population
120.26need; (4) follow-up information, if available, on the status of homeless youth and whether
120.27they have stable housing two years after services are provided; and (5) any other outcomes
120.28for populations served to determine the effectiveness of the programs and use of funding.
120.29    Subd. 3. Street and community outreach and drop-in program. Youth drop-in
120.30centers must provide walk-in access to crisis intervention and ongoing supportive services
120.31including one-to-one case management services on a self-referral basis. Street and
120.32community outreach programs must locate, contact, and provide information, referrals,
120.33and services to homeless youth, youth at risk of homelessness, and runaways. Information,
120.34referrals, and services provided may include, but are not limited to:
120.35(1) family reunification services;
120.36(2) conflict resolution or mediation counseling;
121.1(3) assistance in obtaining temporary emergency shelter;
121.2(4) assistance in obtaining food, clothing, medical care, or mental health counseling;
121.3(5) counseling regarding violence, prostitution, substance abuse, sexually transmitted
121.4diseases, and pregnancy;
121.5(6) referrals to other agencies that provide support services to homeless youth,
121.6youth at risk of homelessness, and runaways;
121.7(7) assistance with education, employment, and independent living skills;
121.8(8) aftercare services;
121.9(9) specialized services for highly vulnerable runaways and homeless youth,
121.10including teen parents, emotionally disturbed and mentally ill youth, and sexually
121.11exploited youth; and
121.12(10) homelessness prevention.
121.13    Subd. 4. Emergency shelter program. (a) Emergency shelter programs must
121.14provide homeless youth and runaways with referral and walk-in access to emergency,
121.15short-term residential care. The program shall provide homeless youth and runaways with
121.16safe, dignified shelter, including private shower facilities, beds, and at least one meal each
121.17day; and shall assist a runaway and homeless youth with reunification with the family or
121.18legal guardian when required or appropriate.
121.19(b) The services provided at emergency shelters may include, but are not limited to:
121.20(1) family reunification services;
121.21(2) individual, family, and group counseling;
121.22(3) assistance obtaining clothing;
121.23(4) access to medical and dental care and mental health counseling;
121.24(5) education and employment services;
121.25(6) recreational activities;
121.26(7) advocacy and referral services;
121.27(8) independent living skills training;
121.28(9) aftercare and follow-up services;
121.29(10) transportation; and
121.30(11) homelessness prevention.
121.31    Subd. 5. Supportive housing and transitional living programs. Transitional
121.32living programs must help homeless youth and youth at risk of homelessness to find and
121.33maintain safe, dignified housing. The program may also provide rental assistance and
121.34related supportive services, or refer youth to other organizations or agencies that provide
121.35such services. Services provided may include, but are not limited to:
121.36(1) educational assessment and referrals to educational programs;
122.1(2) career planning, employment, work skill training, and independent living skills
122.2training;
122.3(3) job placement;
122.4(4) budgeting and money management;
122.5(5) assistance in securing housing appropriate to needs and income;
122.6(6) counseling regarding violence, prostitution, substance abuse, sexually transmitted
122.7diseases, and pregnancy;
122.8(7) referral for medical services or chemical dependency treatment;
122.9(8) parenting skills;
122.10(9) self-sufficiency support services or life skill training;
122.11(10) aftercare and follow-up services; and
122.12(11) homelessness prevention.
122.13    Subd. 6. Funding. Any Funds appropriated for this section may be expended on
122.14programs described under subdivisions 3 to 5, technical assistance, and capacity building.
122.15Up to four percent of funds appropriated may be used for the purpose of monitoring and
122.16evaluating runaway and homeless youth programs receiving funding under this section.
122.17Funding shall be directed to meet the greatest need, with a significant share of the funding
122.18focused on homeless youth providers in greater Minnesota to meet the greatest need
122.19on a statewide basis.

122.20    Sec. 15. Minnesota Statutes 2012, section 256M.40, subdivision 1, is amended to read:
122.21    Subdivision 1. Formula. The commissioner shall allocate state funds appropriated
122.22under this chapter to each county board on a calendar year basis in an amount determined
122.23according to the formula in paragraphs (a) to (e).
122.24(a) For calendar years 2011 and 2012, the commissioner shall allocate available
122.25funds to each county in proportion to that county's share in calendar year 2010.
122.26(b) For calendar year 2013 and each calendar year thereafter, the commissioner shall
122.27allocate available funds to each county as follows:
122.28(1) 75 percent must be distributed on the basis of the county share in calendar year
122.292012;
122.30(2) five percent must be distributed on the basis of the number of persons residing in
122.31the county as determined by the most recent data of the state demographer;
122.32(3) ten percent must be distributed on the basis of the number of vulnerable children
122.33that are subjects of reports under chapter 260C and sections 626.556 and 626.5561, and in
122.34the county as determined by the most recent data of the commissioner; and
123.1(4) ten percent must be distributed on the basis of the number of vulnerable adults
123.2that are subjects of reports under section 626.557 in the county as determined by the most
123.3recent data of the commissioner.
123.4(c) For calendar year 2014, the commissioner shall allocate available funds to each
123.5county as follows:
123.6(1) 50 percent must be distributed on the basis of the county share in calendar year
123.72012;
123.8(2) Ten percent must be distributed on the basis of the number of persons residing in
123.9the county as determined by the most recent data of the state demographer;
123.10(3) 20 percent must be distributed on the basis of the number of vulnerable children
123.11that are subjects of reports under chapter 260C and sections 626.556 and 626.5561, in the
123.12county as determined by the most recent data of the commissioner; and
123.13(4) 20 percent must be distributed on the basis of the number of vulnerable adults
123.14that are subjects of reports under section 626.557 in the county as determined by the
123.15most recent data of the commissioner The commissioner is precluded from changing the
123.16formula under this subdivision or recommending a change to the legislature without
123.17public review and input.
123.18(d) For calendar year 2015, the commissioner shall allocate available funds to each
123.19county as follows:
123.20(1) 25 percent must be distributed on the basis of the county share in calendar year
123.212012;
123.22(2) 15 percent must be distributed on the basis of the number of persons residing in
123.23the county as determined by the most recent data of the state demographer;
123.24(3) 30 percent must be distributed on the basis of the number of vulnerable children
123.25that are subjects of reports under chapter 260C and sections 626.556 and 626.5561, in the
123.26county as determined by the most recent data of the commissioner; and
123.27(4) 30 percent must be distributed on the basis of the number of vulnerable adults
123.28that are subjects of reports under section 626.557 in the county as determined by the most
123.29recent data of the commissioner.
123.30(e) For calendar year 2016 and each calendar year thereafter, the commissioner shall
123.31allocate available funds to each county as follows:
123.32(1) 20 percent must be distributed on the basis of the number of persons residing in
123.33the county as determined by the most recent data of the state demographer;
123.34(2) 40 percent must be distributed on the basis of the number of vulnerable children
123.35that are subjects of reports under chapter 260C and sections 626.556 and 626.5561, in the
123.36county as determined by the most recent data of the commissioner; and
124.1(3) 40 percent must be distributed on the basis of the number of vulnerable adults
124.2that are subjects of reports under section 626.557 in the county as determined by the most
124.3recent data of the commissioner.

124.4    Sec. 16. Minnesota Statutes 2012, section 257.85, subdivision 11, is amended to read:
124.5    Subd. 11. Financial considerations. (a) Payment of relative custody assistance
124.6under a relative custody assistance agreement is subject to the availability of state
124.7funds and payments may be reduced or suspended on order of the commissioner if
124.8insufficient funds are available Beginning July 1, 2013, relative custody assistance shall
124.9be a forecasted program and the commissioner, with the approval of the commissioner of
124.10Minnesota management and budget, may transfer unencumbered appropriation balances
124.11within fiscal years of each biennium with other forecasted programs of the Department
124.12of Human Services. The commissioner shall inform the chairs and ranking minority
124.13members of the senate Health and Human Services Finance Divisions and the house of
124.14representatives Health and Human Services Finance Committee quarterly about transfers
124.15made under this provision.
124.16(b) Upon receipt from a local agency of a claim for reimbursement, the commissioner
124.17shall reimburse the local agency in an amount equal to 100 percent of the relative custody
124.18assistance payments provided to relative custodians. The local agency may not seek and
124.19the commissioner shall not provide reimbursement for the administrative costs associated
124.20with performing the duties described in subdivision 4.
124.21(c) For the purposes of determining eligibility or payment amounts under MFIP,
124.22relative custody assistance payments shall be excluded in determining the family's
124.23available income.

124.24    Sec. 17. Minnesota Statutes 2012, section 259A.05, subdivision 5, is amended to read:
124.25    Subd. 5. Transfer of funds. The commissioner of human services may transfer
124.26funds into the adoption assistance account when a deficit in the adoption assistance
124.27program occurs Beginning July 1, 2013, adoption assistance shall be a forecasted program
124.28and the commissioner, with the approval of the commissioner of Minnesota management
124.29and budget, may transfer unencumbered appropriation balances within fiscal years of each
124.30biennium with other forecasted programs of the Department of Human Services. The
124.31commissioner shall inform the chairs and ranking minority members of the senate Health
124.32and Human Services Finance Division and the house of representatives Health and Human
124.33Services Finance Committee quarterly about transfers made under this provision.

125.1    Sec. 18. Minnesota Statutes 2012, section 259A.20, subdivision 4, is amended to read:
125.2    Subd. 4. Reimbursement for special nonmedical expenses. (a) Reimbursement
125.3for special nonmedical expenses is available to children, except those eligible for adoption
125.4assistance based on being an at-risk child.
125.5(b) Reimbursements under this paragraph shall be made only after the adoptive
125.6parent documents that the requested service was denied by the local social service agency,
125.7community agencies, the local school district, the local public health department, the
125.8parent's insurance provider, or the child's program. The denial must be for an eligible
125.9service or qualified item under the program requirements of the applicable agency or
125.10organization.
125.11(c) Reimbursements must be previously authorized, adhere to the requirements and
125.12procedures prescribed by the commissioner, and be limited to:
125.13(1) child care for a child age 12 and younger, or for a child age 13 or 14 who has a
125.14documented disability that requires special instruction for and services by the child care
125.15provider. Child care reimbursements may be made if all available adult caregivers are
125.16employed, unemployed due to a disability as defined in section 259A.01, subdivision 14,
125.17 or attending educational or vocational training programs. Documentation from a qualified
125.18expert that is dated within the last 12 months must be provided to verify the disability. If a
125.19parent is attending an educational or vocational training program, child care reimbursement
125.20is limited to no more than the time necessary to complete the credit requirements for an
125.21associate or baccalaureate degree as determined by the educational institution. Child
125.22care reimbursement is not limited for an adoptive parent completing basic or remedial
125.23education programs needed to prepare for postsecondary education or employment;
125.24(2) respite care provided for the relief of the child's parent up to 504 hours of respite
125.25care annually;
125.26(3) camping up to 14 days per state fiscal year for a child to attend a special needs
125.27camp. The camp must be accredited by the American Camp Association as a special needs
125.28camp in order to be eligible for camp reimbursement;
125.29(4) postadoption counseling to promote the child's integration into the adoptive
125.30family that is provided by the placing agency during the first year following the date of the
125.31adoption decree. Reimbursement is limited to 12 sessions of postadoption counseling;
125.32(5) family counseling that is required to meet the child's special needs.
125.33Reimbursement is limited to the prorated portion of the counseling fees allotted to the
125.34family when the adoptive parent's health insurance or Medicaid pays for the child's
125.35counseling but does not cover counseling for the rest of the family members;
126.1(6) home modifications to accommodate the child's special needs upon which
126.2eligibility for adoption assistance was approved. Reimbursement is limited to once every
126.3five years per child;
126.4(7) vehicle modifications to accommodate the child's special needs upon which
126.5eligibility for adoption assistance was approved. Reimbursement is limited to once every
126.6five years per family; and
126.7(8) burial expenses up to $1,000, if the special needs, upon which eligibility for
126.8adoption assistance was approved, resulted in the death of the child.
126.9(d) The adoptive parent shall submit statements for expenses incurred between July
126.101 and June 30 of a given fiscal year to the state adoption assistance unit within 60 days
126.11after the end of the fiscal year in order for reimbursement to occur.

126.12    Sec. 19. Minnesota Statutes 2012, section 260B.007, subdivision 6, is amended to read:
126.13    Subd. 6. Delinquent child. (a) Except as otherwise provided in paragraphs (b)
126.14and (c), "delinquent child" means a child:
126.15(1) who has violated any state or local law, except as provided in section 260B.225,
126.16subdivision 1
, and except for juvenile offenders as described in subdivisions 16 to 18;
126.17(2) who has violated a federal law or a law of another state and whose case has been
126.18referred to the juvenile court if the violation would be an act of delinquency if committed
126.19in this state or a crime or offense if committed by an adult;
126.20(3) who has escaped from confinement to a state juvenile correctional facility after
126.21being committed to the custody of the commissioner of corrections; or
126.22(4) who has escaped from confinement to a local juvenile correctional facility after
126.23being committed to the facility by the court.
126.24(b) The term delinquent child does not include a child alleged to have committed
126.25murder in the first degree after becoming 16 years of age, but the term delinquent child
126.26does include a child alleged to have committed attempted murder in the first degree.
126.27(c) The term delinquent child does not include a child under the age of 16 years
126.28 alleged to have engaged in conduct which would, if committed by an adult, violate any
126.29federal, state, or local law relating to being hired, offering to be hired, or agreeing to be
126.30hired by another individual to engage in sexual penetration or sexual conduct.
126.31EFFECTIVE DATE.This section is effective August 1, 2014, and applies to
126.32offenses committed on or after that date.

126.33    Sec. 20. Minnesota Statutes 2012, section 260B.007, subdivision 16, is amended to read:
127.1    Subd. 16. Juvenile petty offender; juvenile petty offense. (a) "Juvenile petty
127.2offense" includes a juvenile alcohol offense, a juvenile controlled substance offense,
127.3a violation of section 609.685, or a violation of a local ordinance, which by its terms
127.4prohibits conduct by a child under the age of 18 years which would be lawful conduct if
127.5committed by an adult.
127.6(b) Except as otherwise provided in paragraph (c), "juvenile petty offense" also
127.7includes an offense that would be a misdemeanor if committed by an adult.
127.8(c) "Juvenile petty offense" does not include any of the following:
127.9(1) a misdemeanor-level violation of section 518B.01, 588.20, 609.224, 609.2242,
127.10609.324 , subdivision 2 or 3, 609.5632, 609.576, 609.66, 609.746, 609.748, 609.79,
127.11or 617.23;
127.12(2) a major traffic offense or an adult court traffic offense, as described in section
127.13260B.225 ;
127.14(3) a misdemeanor-level offense committed by a child whom the juvenile court
127.15previously has found to have committed a misdemeanor, gross misdemeanor, or felony
127.16offense; or
127.17(4) a misdemeanor-level offense committed by a child whom the juvenile court
127.18has found to have committed a misdemeanor-level juvenile petty offense on two or
127.19more prior occasions, unless the county attorney designates the child on the petition
127.20as a juvenile petty offender notwithstanding this prior record. As used in this clause,
127.21"misdemeanor-level juvenile petty offense" includes a misdemeanor-level offense that
127.22would have been a juvenile petty offense if it had been committed on or after July 1, 1995.
127.23(d) A child who commits a juvenile petty offense is a "juvenile petty offender." The
127.24term juvenile petty offender does not include a child under the age of 16 years alleged
127.25to have violated any law relating to being hired, offering to be hired, or agreeing to be
127.26hired by another individual to engage in sexual penetration or sexual conduct which, if
127.27committed by an adult, would be a misdemeanor.
127.28EFFECTIVE DATE.This section is effective August 1, 2014, and applies to
127.29offenses committed on or after that date.

127.30    Sec. 21. Minnesota Statutes 2012, section 260C.007, subdivision 6, is amended to read:
127.31    Subd. 6. Child in need of protection or services. "Child in need of protection or
127.32services" means a child who is in need of protection or services because the child:
127.33    (1) is abandoned or without parent, guardian, or custodian;
127.34    (2)(i) has been a victim of physical or sexual abuse as defined in section 626.556,
127.35subdivision 2, (ii) resides with or has resided with a victim of child abuse as defined in
128.1subdivision 5 or domestic child abuse as defined in subdivision 13, (iii) resides with or
128.2would reside with a perpetrator of domestic child abuse as defined in subdivision 13 or
128.3child abuse as defined in subdivision 5 or 13, or (iv) is a victim of emotional maltreatment
128.4as defined in subdivision 15;
128.5    (3) is without necessary food, clothing, shelter, education, or other required care
128.6for the child's physical or mental health or morals because the child's parent, guardian,
128.7or custodian is unable or unwilling to provide that care;
128.8    (4) is without the special care made necessary by a physical, mental, or emotional
128.9condition because the child's parent, guardian, or custodian is unable or unwilling to
128.10provide that care;
128.11    (5) is medically neglected, which includes, but is not limited to, the withholding of
128.12medically indicated treatment from a disabled infant with a life-threatening condition. The
128.13term "withholding of medically indicated treatment" means the failure to respond to the
128.14infant's life-threatening conditions by providing treatment, including appropriate nutrition,
128.15hydration, and medication which, in the treating physician's or physicians' reasonable
128.16medical judgment, will be most likely to be effective in ameliorating or correcting all
128.17conditions, except that the term does not include the failure to provide treatment other
128.18than appropriate nutrition, hydration, or medication to an infant when, in the treating
128.19physician's or physicians' reasonable medical judgment:
128.20    (i) the infant is chronically and irreversibly comatose;
128.21    (ii) the provision of the treatment would merely prolong dying, not be effective in
128.22ameliorating or correcting all of the infant's life-threatening conditions, or otherwise be
128.23futile in terms of the survival of the infant; or
128.24    (iii) the provision of the treatment would be virtually futile in terms of the survival
128.25of the infant and the treatment itself under the circumstances would be inhumane;
128.26    (6) is one whose parent, guardian, or other custodian for good cause desires to be
128.27relieved of the child's care and custody, including a child who entered foster care under a
128.28voluntary placement agreement between the parent and the responsible social services
128.29agency under section 260C.227;
128.30    (7) has been placed for adoption or care in violation of law;
128.31    (8) is without proper parental care because of the emotional, mental, or physical
128.32disability, or state of immaturity of the child's parent, guardian, or other custodian;
128.33    (9) is one whose behavior, condition, or environment is such as to be injurious or
128.34dangerous to the child or others. An injurious or dangerous environment may include, but
128.35is not limited to, the exposure of a child to criminal activity in the child's home;
129.1    (10) is experiencing growth delays, which may be referred to as failure to thrive, that
129.2have been diagnosed by a physician and are due to parental neglect;
129.3    (11) has engaged in prostitution as defined in section 609.321, subdivision 9 is a
129.4sexually exploited youth;
129.5    (12) has committed a delinquent act or a juvenile petty offense before becoming
129.6ten years old;
129.7    (13) is a runaway;
129.8    (14) is a habitual truant;
129.9    (15) has been found incompetent to proceed or has been found not guilty by reason
129.10of mental illness or mental deficiency in connection with a delinquency proceeding, a
129.11certification under section 260B.125, an extended jurisdiction juvenile prosecution, or a
129.12proceeding involving a juvenile petty offense; or
129.13(16) has a parent whose parental rights to one or more other children were
129.14involuntarily terminated or whose custodial rights to another child have been involuntarily
129.15transferred to a relative and there is a case plan prepared by the responsible social services
129.16agency documenting a compelling reason why filing the termination of parental rights
129.17petition under section 260C.301, subdivision 3, is not in the best interests of the child; or.
129.18(17) is a sexually exploited youth.
129.19EFFECTIVE DATE.This section is effective August 1, 2014.

129.20    Sec. 22. Minnesota Statutes 2012, section 260C.007, subdivision 31, is amended to read:
129.21    Subd. 31. Sexually exploited youth. "Sexually exploited youth" means an
129.22individual who:
129.23(1) is alleged to have engaged in conduct which would, if committed by an adult,
129.24violate any federal, state, or local law relating to being hired, offering to be hired, or
129.25agreeing to be hired by another individual to engage in sexual penetration or sexual conduct;
129.26(2) is a victim of a crime described in section 609.342, 609.343, 609.344, 609.345,
129.27609.3451 , 609.3453, 609.352, 617.246, or 617.247;
129.28(3) is a victim of a crime described in United States Code, title 18, section 2260;
129.292421; 2422; 2423; 2425; 2425A; or 2256; or
129.30(4) is a sex trafficking victim as defined in section 609.321, subdivision 7b.
129.31EFFECTIVE DATE.This section is effective the day following final enactment.

129.32    Sec. 23. Minnesota Statutes 2012, section 518A.60, is amended to read:
129.33518A.60 COLLECTION; ARREARS ONLY.
130.1(a) Remedies available for the collection and enforcement of support in this chapter
130.2and chapters 256, 257, 518, and 518C also apply to cases in which the child or children
130.3for whom support is owed are emancipated and the obligor owes past support or has an
130.4accumulated arrearage as of the date of the youngest child's emancipation. Child support
130.5arrearages under this section include arrearages for child support, medical support, child
130.6care, pregnancy and birth expenses, and unreimbursed medical expenses as defined in
130.7section 518A.41, subdivision 1, paragraph (h).
130.8(b) This section applies retroactively to any support arrearage that accrued on or
130.9before June 3, 1997, and to all arrearages accruing after June 3, 1997.
130.10(c) Past support or pregnancy and confinement expenses ordered for which the
130.11obligor has specific court ordered terms for repayment may not be enforced using
130.12drivers' and occupational or professional license suspension, credit bureau reporting, and
130.13additional income withholding under section 518A.53, subdivision 10, paragraph (a),
130.14unless the obligor fails to comply with the terms of the court order for repayment.
130.15(d) If an arrearage exists at the time a support order would otherwise terminate
130.16and section 518A.53, subdivision 10, paragraph (c), does not apply to this section, the
130.17arrearage shall be repaid in an amount equal to the current support order until all arrears
130.18have been paid in full, absent a court order to the contrary.
130.19(e) If an arrearage exists according to a support order which fails to establish a
130.20monthly support obligation in a specific dollar amount, the public authority, if it provides
130.21child support services, or the obligee, may establish a payment agreement which shall
130.22equal what the obligor would pay for current support after application of section 518A.34,
130.23plus an additional 20 percent of the current support obligation, until all arrears have been
130.24paid in full. If the obligor fails to enter into or comply with a payment agreement, the
130.25public authority, if it provides child support services, or the obligee, may move the district
130.26court or child support magistrate, if section 484.702 applies, for an order establishing
130.27repayment terms.
130.28(f) If there is no longer a current support order because all of the children of the
130.29order are emancipated, the public authority may discontinue child support services and
130.30close its case under title IV-D of the Social Security Act, if:
130.31(1) the arrearage is under $500; or
130.32(2) the arrearage is considered unenforceable by the public authority because there
130.33have been no collections for three years, and all administrative and legal remedies have
130.34been attempted or are determined by the public authority to be ineffective because the
130.35obligor is unable to pay, the obligor has no known income or assets, and there is no
130.36reasonable prospect that the obligor will be able to pay in the foreseeable future.
131.1    (g) At least 60 calendar days before the discontinuation of services under paragraph
131.2(f), the public authority must mail a written notice to the obligee and obligor at the
131.3obligee's and obligor's last known addresses that the public authority intends to close the
131.4child support enforcement case and explaining each party's rights. Seven calendar days
131.5after the first notice is mailed, the public authority must mail a second notice under this
131.6paragraph to the obligee.
131.7    (h) The case must be kept open if the obligee responds before case closure and
131.8provides information that could reasonably lead to collection of arrears. If the case is
131.9closed, the obligee may later request that the case be reopened by completing a new
131.10application for services, if there is a change in circumstances that could reasonably lead to
131.11the collection of arrears.

131.12    Sec. 24. Laws 1998, chapter 407, article 6, section 116, is amended to read:
131.13    Sec. 116. EBT TRANSACTION COSTS; APPROVAL FROM LEGISLATURE.
131.14    The commissioner of human services shall request and receive approval from the
131.15legislature before adjusting the payment to discontinue the state subsidy to retailers for
131.16electronic benefit transfer transaction costs Supplemental Nutrition Assistance Program
131.17transactions when the federal government discontinues the federal subsidy to the same.

131.18    Sec. 25. DIRECTION TO COMMISSIONERS; INCOME AND ASSET
131.19EXCLUSION.
131.20(a) The commissioner of human services shall not count conditional cash transfers
131.21made to families participating in a family independence demonstration as income or
131.22assets for purposes of determining or redetermining eligibility for child care assistance
131.23programs under Minnesota Statutes, chapter 119B; general assistance under Minnesota
131.24Statutes, chapter 256D; group residential housing under Minnesota Statutes, chapter 256I;
131.25the Minnesota family investment program, work benefit program, or diversionary work
131.26program under Minnesota Statutes, chapter 256J; or the MinnesotaCare program under
131.27Minnesota Statutes, chapter 256L, during the duration of the demonstration.
131.28(b) The commissioner of human services shall not count conditional cash transfers
131.29made to families participating in a family independence demonstration as income or
131.30assets for purposes of determining or redetermining eligibility for medical assistance and
131.31MinnesotaCare, except that for enrollees subject to a modified adjusted gross income
131.32calculation to determine eligibility, the conditional cash transfer payments shall be counted
131.33as income if they are included on the enrollee's federal tax return as income, or if the
131.34payments can be taken into account in the month of receipt as a lump sum payment.
132.1(c) The commissioner of the Minnesota Housing Finance Agency shall not count
132.2conditional cash transfers made to families participating in a family independence
132.3demonstration as income or assets for purposes of determining or redetermining eligibility
132.4for housing assistance programs under Minnesota Statutes, section 462A.201, during
132.5the duration of the demonstration.
132.6(d) For the purposes of this section:
132.7(1) "conditional cash transfer" means a payment made to a participant in a family
132.8independence demonstration by a sponsoring organization to incent, support, or facilitate
132.9participation; and
132.10(2) "family independence demonstration" means an initiative sponsored or
132.11cosponsored by a governmental or nongovernmental organization, the goal of which is
132.12to facilitate individualized goal-setting and peer support for cohorts of no more than 12
132.13families each toward the development of financial and nonfinancial assets that enable the
132.14participating families to achieve financial independence.
132.15(e) The citizens league shall provide a report to the legislative committees having
132.16jurisdiction over human services issued by July 1, 2016, informing the legislature on the
132.17progress and outcomes of the demonstration under this section.

132.18    Sec. 26. UNIFORM BENEFITS FOR CHILDREN IN FOSTER CARE,
132.19PERMANENT RELATIVE CARE, AND ADOPTION ASSISTANCE.
132.20Using available resources, the commissioner of human services, in consultation with
132.21representatives of the judicial branch, county human services, and tribes participating in
132.22the American Indian child welfare initiative under Minnesota Statutes, section 256.01,
132.23subdivision 14b, together with other appropriate stakeholders, which might include
132.24communities of color; youth in foster care or those who have aged out of care; kinship
132.25caregivers, foster parents, adoptive parents, foster and adoptive agencies; guardians ad
132.26litem; and experts in permanency, adoption, child development, and the effects of trauma,
132.27and the use of medical assistance home and community-based waivers for persons with
132.28disabilities, shall analyze benefits and services available to children in family foster care
132.29under Minnesota Rules, parts 9560.0650 to 9560.0656, relative custody assistance under
132.30Minnesota Statutes, section 257.85, and adoption assistance under Minnesota Statutes,
132.31chapter 259A. The goal of the analysis is to establish a uniform set of benefits available
132.32to children in foster care, permanent relative care, and adoption so that the benefits
132.33can follow the child rather than being tied to the child's legal status. Included in the
132.34analysis is possible accessing of federal title IV-E through guardianship assistance. The
132.35commissioner shall report findings and conclusions to the chairs and ranking minority
133.1members of the legislative committees and divisions with jurisdiction over health and
133.2human services policy and finance by January 15, 2014, and include draft legislation
133.3establishing uniform benefits.

133.4    Sec. 27. REPEALER.
133.5(a) Minnesota Statutes 2012, section 256J.24, subdivision 6, is repealed effective
133.6July 1, 2014.
133.7(b) Minnesota Statutes 2012, section 609.093, is repealed effective the day following
133.8final enactment.