256.033 Eligibility for the Minnesota family investment 
  plan. 

    Subdivision 1.    Eligibility conditions.  (a) A family 
 is entitled to assistance under the Minnesota family investment 
 plan if the family is assigned to a test group in the evaluation 
 as provided in section 256.031, subdivision 3, paragraph (d), 
 and: 

    (1) the family meets the definition of assistance unit 
 under section 256.032, subdivision 1a; 

    (2) the family's resources not excluded under subdivision 3 
 do not exceed $2,000; 

    (3) the family can verify citizenship or lawful resident 
 alien status; and 

    (4) the family provides or applies for a social security 
 number for each member of the family receiving assistance under 
 the family investment plan. 

    (b) A family is eligible for the family investment plan if 
 the net income is less than the transitional standard as defined 
 in section 256.032, subdivision 13, for that size and 
 composition of family.  In determining available net income, the 
 provisions in subdivision 2 shall apply. 

    (c) Upon application, a family is initially eligible for 
 the family investment plan if the family's gross income does not 
 exceed the applicable transitional standard of assistance for 
 that family as defined under section 256.032, subdivision 13, 
 after deducting: 

    (1) 18 percent to cover taxes; and 

    (2) actual dependent care costs up to the maximum 
 disregarded under United States Code, title 42, section 
 602(a)(8)(A)(iii). 

    (d) A family can remain eligible for the program if: 

    (1) it meets the conditions in subdivision 1a; and 

    (2) its income is below the transitional standard in 
 section 256.032, subdivision 13, allowing for income exclusions 
 in subdivision 2 and after applying the family investment plan 
 treatment of earnings under subdivision 1a. 

    Subd. 1a.    Treatment of income for the purposes of 
 continued eligibility.  To help families during their 
 transition from the Minnesota family investment plan to 
 self-sufficiency, the following income supports are available: 

    (a) The $30 and one-third and $90 disregards allowed under 
 section 256.74, subdivision 1, and the 20 percent earned income 
 deduction allowed under the federal Food Stamp Act of 1977, as 
 amended, are replaced with a single disregard of not less than 
 35 percent of gross earned income to cover taxes and other 
 work-related expenses and to reward the earning of income.  This 
 single disregard is available for the entire time a family 
 receives assistance through the Minnesota family investment plan.

    (b) The dependent care deduction, as prescribed under 
 section 256.74, subdivision 1, and United States Code, title 7, 
 section 2014(e), is replaced for families with earned income who 
 need assistance with dependent care with an entitlement to a 
 dependent care subsidy from money appropriated for the Minnesota 
 family investment plan. 

    (c) The family wage level, as defined in section 256.032, 
 subdivision 8, allows families to supplement earned income with 
 assistance received through the Minnesota family investment 
 plan.  If, after earnings are adjusted according to the 
 disregard described in paragraph (a), earnings have raised 
 family income to a level equal to or greater than the family 
 wage level, the amount of assistance received through the 
 Minnesota family investment plan must be reduced. 

    Subd. 2.    Determination of family income.  The aid to 
 families with dependent children income exclusions listed in 
 Code of Federal Regulations, title 45, sections 233.20(a)(3) and 
 233.20(a)(4), must be used when determining a family's available 
 income, except that:  

    (1)  all earned income of a minor child receiving 
 assistance through the Minnesota family investment plan is 
 excluded when the child is attending school at least half-time; 

    (2) all earned income tax credit payments received by the 
 family as a refund of federal income taxes or made as advance 
 payments are excluded in accordance with United States Code, 
 title 42, section 602(a)(8)(A)(viii); 

    (3) educational grants and loans as provided in section 
 256.74, subdivision 1, clause (2), are excluded; 

    (4) all other income listed in Minnesota Rules, part 
 9500.2380, subpart 2, is excluded; and 

    (5) when determining income available from members of the 
 family who do not elect to be included in the assistance unit 
 under section 256.032, subdivision 1a, paragraphs (c) and (e), 
 the county agency shall count the remaining income after 
 disregarding: 

    (i) the first 18 percent of the excluded family member's 
 gross earned income; 

    (ii) an amount for the support of any stepparent or any 
 parent of a minor caregiver and any other individuals whom the 
 stepparent or parent of the minor caregiver claims as dependents 
 for determining federal personal income tax liability and who 
 live in the same household but whose needs are not considered in 
 determining eligibility for assistance under sections 256.031 to 
 256.033.  The amount equals the transitional standard in section 
 256.032, subdivision 13, for a family of the same size and 
 composition; 

    (iii) amounts the stepparent or parent of the minor 
 caregiver actually paid to individuals not living in the same 
 household but whom the stepparent claims as dependents for 
 determining federal personal income tax liability; and 

    (iv) alimony or child support, or both, paid by the 
 stepparent or parent of the minor caregiver for individuals not 
 living in the same household. 

    Subd. 3.    Determination of family resources.  When 
 determining a family's resources, the following are excluded:  

    (1) the family's home, together with surrounding property 
 not separated from the home by intervening property owned by 
 others; 

    (2) one burial plot for each family member; 

    (3) one prepaid burial contract with an equity value of no 
 more than $1,500 for each member of the family; 

    (4) licensed automobiles, trucks, or vans up to a total 
 equity value of $4,500; 

    (5) personal property needed to produce earned income, 
 including tools, implements, farm animals, and inventory; 

    (6) the entire equity value of a motor vehicle determined 
 to be necessary for the operation of a self-employment business; 
 and 

    (7) clothing, necessary household furniture, equipment, and 
 other basic maintenance items essential for daily living. 

    Subd. 4.    Treatment of SSI and MSA.  The monthly 
 benefits and any other income received through the supplemental 
 security income or Minnesota supplemental aid program and any 
 real or personal property of an assistance unit member who 
 receives supplemental security income or Minnesota supplemental 
 aid must be excluded in determining the family's eligibility for 
 the Minnesota family investment plan and the amount of 
 assistance.  In determining the amount of assistance to be paid 
 to the family, the needs of the person receiving supplemental 
 security income or Minnesota supplemental aid must not be taken 
 into account. 

    Subd. 5.    Ability to apply for food stamps.  A family 
 that is ineligible for assistance through the Minnesota family 
 investment plan due to income or resources or has not been 
 assigned to a test group in the evaluation as provided in 
 section 256.031, subdivision 3, paragraph (d), may apply for, 
 and if eligible receive, benefits under the food stamp program. 

    Subd. 6.    Recovery of ATM errors.  For recipients 
 receiving benefits via electronic benefit transfer, if the 
 recipient is overpaid as a result of an automated teller machine 
 (ATM) dispensing funds in error to the recipient, the agency may 
 recover the ATM error by immediately withdrawing funds from the 
 recipient's electronic benefit transfer account, up to the 
 amount of the error. 

    HIST: 1989 c 282 art 5 s 8; 1991 c 292 art 5 s 14,83; 1992 c 
 513 art 8 s 3-6; 1993 c 306 s 4; 1996 c 465 art 3 s 3; 1997 c 85 
 art 3 s 2,3