LEGAL SERVICES

MINNESOTA FAMILY

INVESTMENT PROGRAM

MANUAL

By

Monica Bogucki, J.D.

Staff Attorney, Legal Aid Society of Minneapolis

With Contributions by

Laura Melnick, J.D.

Staff Attorney, Southern Minnesota Legal Services

Ellen Smart, J.D.

Staff Attorney, Legal Aid Society of Minneapolis

Charles Sutton, J.D. Candidate

August 2011


Previous editions, 1993, 1994, 2010

Professor Paul Marino; Laurie Davison, J.D.; and Luther Granquist, J.D. made contributions to the 1993, 1994 edition of the AFDC Manual. We recognize their longstanding dedication to serving marginalized individuals in this society.

A special thank you to Alice Engstrom, my administrative assistant. Her skills of editing, organizing, encouragement, and wit made this project possible.

Thank you to my colleagues who work tirelessly on behalf of our clients. You have taught me so much through the years. I also thank our dedicated law clerks, Charles Sutton and Song Lyfoung.


Table of Contents

A. Program Overview 1

1. Sources of the law 1

B. Applications 2

1. Combined Application Form 2

2. Local Agency Responsibilities 3

3. Processing the Application 3

C. Verifications 4

1. Verifications – Overview 4

2. Burden for Providing Verification 4

3. Factors to be Verified 5

4. Alternative Form of Verification 6

5. Third-Party or Collateral Contacts 6

6. Burden of Proof 7

7. Mandatory Verifications 7

8. Method – Home Visits 7

9. Verification Due Dates/Deadlines 7

D. Eligibility Requirements 8

1. Basic Eligibility 8

2. Minnesota Residence 8

E. Categorical Eligibility 9

1. The MFIP Assistance Unit Requirement 9

2. Pregnant Women 9

3. Living With an Eligible Caretaker Requirement 9

F. Financial Eligibility 13

1. Introduction 13

2. Electronic Benefit Cards 13

3. Types of Income 13

4. In-Kind Income 15

5. Exclusions from Income 15

6. Self-Employment Income 18

7. Self-Employment Budget Period 20

8. Earned Income Disregards 22

G. Assets 22

1. Assets Limits 22

2. Excluded Assets 22

3. Non-Excluded Personal Property 29

H. Employment Plan (written by Charles Sutton and

edited by Monica Bogucki) 30

1. Definition 30

2. Initial Meeting With Job Counselor 30

3. Assessment 31

4. Employment Plan 33

5. Family Violence Waiver 35

6. Self-Employment 35

7. Post-Secondary Education as Approved Work Activity 36

8. Basic Adult Education and English Second Language (ESL) 37

9. Participants’ Requirements, Rights, and Expectations 37

I. Work Participation Cash Benefit/Work Benefit

Program/WB 38

J. Appeal Rights and Procedures 39

1. What Can Be Appealed? 39

2. Appeal Timelines 39

3. Continuation of Benefits 40

4. Reviewing Client File 40

5. How and Where to Appeal 40

6. Appeal Procedures in Emergency Assistance or Other

Emergency Matters 41

7. Emergency and Non-Emergency Hearings 42

8. Prehearing Conference 42

9. Requesting a Continuance 43

10. Appeal Hearing Process 43

11. Failure to Appear at a Hearing 44

12. Evidence 44

13. Interpreters 45

14. Ex Parte Contact 45

15. Burden of Persuasion 45

16. Reimbursement of Expenses 45

17. Subpoenas 46

18. Appeal Decision 46

K. Minor Parents’ Eligibility for MFIP Benefits 47

1. Living with an Adult Requirement. 47

2. Exceptions to this Requirement 47

3. County’s Duties to Minor Parents 48

4. Risk of Child Protection Report 48

5. Minor Parents and Employment Plan Requirements 48

6. Family Violence Waivers 49

L. SANCTIONS (written by Ellen Smart, J.D.) 49

1. Reasons for Being Sanctioned 49

2. Sanction Process 50

3. Sanctions in Months One Through Six 51

4. Sanctions After Six Months/Case Closure 51

5. Good Cause 52

6. Sanction Defenses 52

7. Diversionary Work Program (DWP) Sanctions 53

8. Family Stabilization Services (FSS) Sanctions 53

M. Family Violence Waivers (written by Ellen Smart) 54

1. Legal Authority 54

2. Benefits 54

3. Requirements 55

4. Writing a Family Violence Waiver/Employment Plan 55

5. Sanctions and Sanction Defenses for Participants Experiencing

Family Violence 56

6. Other 56

N. IMMIGRATION-RELATED ISSUES AND CONSIDERATIONS (Written by Laura Melnick) 57

1. General Eligibility for Non-Citizen Immigrants 57

2. Battered Immigrants 58

3. Federal Versus State-Funded Benefits 59

4. Steps Toward Citizenship 60

5. “Otherwise Residing Lawfully” 60

6. Mixed Households: Eligibility for MFIP and Reporting to Immigration 61

7. Public Charge Considerations 62

8. Sponsor-Deeming 63


APPENDIX 66

1. Combined Application form

2. Work Pays DHS Bulletin # 11-11-01

3. Appeal to State Agency

4. State Agency Appeal Summary

5. Reimbursement of Appeal Hearing Expenses


Updated August 2011

LEGAL SERVICES

MINNESOTA FAMILY INVESTMENT PROGRAM MANUAL

A. Program Overview

Minnesota Family Investment Program (MFIP)[1] (Minn. Stat. § 256J, et seq.) is a monthly cash assistance need-based program for low-income families. For a family to receive MFIP benefits, a family must be both categorically and financially eligible. Minn. Stat. § 256J.10. Categorical eligibility means that the family must meet one of the descriptive categories of this program. (See MFIP Manual, part E). Financial eligibility means that the family unit meets income and asset criteria. (See MFIP Manual, parts F and G). If a family is categorically and financially eligible for MFIP, that family receives a specified monthly cash assistance grant. For example, in Minnesota an MFIP eligible single parent with one child receives a monthly grant of $437.00. Monthly grant amounts are found at Minn. Stat. § 256J.24, subd. 5. The MFIP cash portion of the grant has not been increased for almost 25 years. The Food Stamp program, also known as Supplemental Nutrition Assistance Program (SNAP) 7 C.F.R. parts 271 through 283, is governed by the United States Department of Agriculture. It is subject to an annual cost-of-living adjustment.

The MFIP program is a cooperative arrangement between the federal, state and county governments. The federal program is called Temporary Assistance for Needy Families (TANF). 42 U.S.C.A. § 601 et seq. The federal agency with the responsibility for overseeing the MFIP program is the Department of Health and Human Services (HHS). The state agency with the responsibility for overseeing the MFIP program is the Minnesota Department of Human Services (DHS). The county welfare department or county department of economic assistance is responsible for taking the applications, processing applications, and dispersing funds.[2]

Minnesota also has a primarily state funded MFIP program. Minn. Stat. § 256J.021 to provide for those not eligible for federally-based funding.

1. Sources of the law

The MFIP program has its basis in federal and state law.


a. Federal Law

1) Federal Statutes

Temporary Assistance for Needy Families. 42 U.S.C. § 601 et seq.

Personal Responsibility and Work Opportunities Act of 42 U.S.C.

§ 601, et seq. Deficit Reduction Act of 2006 Pub. L. 109-171, Feb. 2006, 120 Stat. 4.

Title IV-A of the Social Security Act, 42 U.S.C. § 601-617.

2) Federal Regulations

The federal regulations are found in the Code of Federal Regulations (bound volumes). The current updates are found in the Federal Register. MFIP federal regulations are found at 45 C.F.R. § 260.20 et seq.

b. State Law

1) State Statutes

Minnesota Statute § 256J et seq.

c. Secondary sources

There are several secondary sources for MFIP law. The Minnesota Department of Human Services publishes a manual called the MDHS Certification Manual. Sometimes it is referred to as the “Combined Manual.” The Minnesota Department of Human Services also publishes Instructional and Informational Bulletins. (These resources are found on HYPERLINK "http://www.dhs.state.mn.us" www.dhs.state.mn.us) These do not have the force and effect of the law but are to be used as guides. Steere v. State of Minnesota, Department of Public Welfare, 243 N.W.2d 112 (Minn. 1976). The agency manual lacks legal authority because it was not promulgated according to the Minnesota Administrative Procedures Act. Wenzel v. Meeker County Welfare Board, 346 N.W.2d 680, 638 (Minn. Ct. App. 1984).

B. Applications

1. Combined Application Form

The Combined Application Form (CAF[3]) is a new form designed by DHS. (See Appendix 1) The CAF is now being used by all Minnesota county welfare agencies. The purpose of the CAF is to determine an applicant’s eligibility for many different economic assistance programs. Even if the applicant is unable to complete the entire CAF form, the applicant should sign and date the form, and submit it. This establishes the date of application. Most benefits will date back to the application date. Some health care benefits may provide coverage prior to the application date. Once MFIP benefits are approved, the benefits will date back to the date on the CAF. An applicant will want to bring along as much verification as possible to the first interview. This will help expedite the application process.

Once the CAF is completed and the necessary verifications are submitted, the county agency will approve or deny the application promptly.

If the applicant has an emergency, the applicant should inform the county agency as soon as possible of the emergency. County agencies have a duty to respond to the emergencies.

2. Local Agency Responsibilities

When a person inquires about assistance the county agency must:

a. Explain eligibility requirements. Minn. Stat. § 256J.09, subd. 2(1).

b. Explain how to apply for assistance. Minn. Stat. § 256J.09, subd. 2(2).

c. Offer brochures that describe how to apply for assistance. Id.

d. Provide application forms in person or by mail. Minn. Stat. § 256J.09, subd. 3(a).

e. Inform the person the date when the assistance will begin. Id. et al. (1).

f. Inform a person that a person may submit the application before the interview. Minn. Stat. § 256J.09, subd. 3(3)(a)(3).

g. Explain verification process. Id. at (4).

h. Explain how to contact agency. Id. at (6).

i. Explain application process. Id. at (7).

j. Explain the child care and transportation services that are available to enable caregivers to attend interview, screening and orientation. Id. at (8).

If participant requests, the county agency must:

a. Arrange for transportation and childcare or reimburse participant for these expenses to attend screening and orientation. Minn. Stat. § 256J.09, subd. 9(c).

b. Identify language barriers and provide interpreters during appointments. Minn. Stat. § 256J.09, subd. 3(9).

3. Processing the Application

The county agency must process the MFIP application within 30 days or inform the applicant why there is a delay. Minn. Stat. § 256J.09, subd. 5. This means approve or deny the application, inform the applicant of its decision, and issue assistance when the applicant is eligible. Minn. Stat. § 256J.09, subd. 5.

When an applicant establishes the inability to provide required verification within the 30 day processing period, the local agency may not use the expiration of that period as the basis for denial. Minn. Stat. § 256J.09, subd. 5.

If the applicant has supplied all the necessary verifications, the county agency has 30 days to process the MFIP. If the county agency goes beyond the 30-day time limit, the client can request an administrative appeal hearing. Sometimes, the delay in processing the MFIP application is due to client delay. In these cases, sometimes a county agency will notify the client what verification is needed, then pend the application. “Pending” the application means that the application is neither approved nor denied. The pending application is just on hold until the verification is received. At the time the necessary verification is received, the county agency will determine if the application is approved or denied. When there is client delay, it is to the applicant’s advantage to have the application pended because if the county agency eventually approves the application, the applicant’s MFIP benefits will issue retroactive to the date on the Combined Application Form.

C. Verifications

1. Verifications – Overview

“Verification” means the process a local agency uses to establish the accuracy or completeness of information. This information may be from an applicant, a recipient, a third party, or other relevant sources which relates to program eligibility or the assistance. Minn. Stat. § 256J.08, subd. 89.

Some questions raised in the verification process are:

a. Is the verification mandatory?

b. Are there alternative ways to verify?

c. Was the client given adequate notice of the verification?

d. Has the client refused to provide the verification or is the client unable to provide verification?

e. How much assistance should the county agency provide to the client in obtaining the verification?

2. Burden for Providing Verification

The applicant or recipient has the burden of providing documentary evidence to verify eligibility. Minn. Stat. § 256J.32, subd. 2. However, the Americans with Disability Act requires the county to assist those with physical or mental health impairments. A county financial worker must assist a client with impairments in obtaining verification.

3. Factors to be Verified

The county agency shall verify the following at application. Minn. Stat. § 256J.32, subd. 4:

a. identity of adults;

b. presence of the minor child in the home, if questionable;

c. relationship of a minor child to caregivers in the assistance unit;

d. age, if necessary to determine MFIP eligibility;

e. immigration status;

f. Social Security number according to the requirements of section HYPERLINK "https://www.revisor.leg.state.mn.us/statutes?id=256J.30" \l "stat.256J.30.12" 256J.30, subdivision 12;

g. income;

h. self-employment expenses used as a deduction;

i. source and purpose of deposits and withdrawals from business accounts;

j. spousal support and child support payments made to persons outside the household;

k. real property;

l. vehicles;

m. checking and savings accounts;

n. savings certificates, savings bonds, stocks, and individual retirement accounts;

o. pregnancy, if related to eligibility;

p. inconsistent information, if related to eligibility;

q. burial accounts;

r. school attendance, if related to eligibility;

s. residence (recipient can be homeless and still receive MFIP benefits);

t. a claim of family violence if used as a basis to qualify for the family violence waiver;

u. disability if used as the basis for an exemption from employment and training services requirements under section HYPERLINK "https://www.revisor.leg.state.mn.us/statutes?id=256J.56" \l "stat.256J.56" 256J.56 or as the basis for reducing the hourly participation requirements under section HYPERLINK "https://www.revisor.leg.state.mn.us/statutes?id=256J.55" \l "stat.256J.55.1" 256J.55, subdivision 1, or the type of activity included in an employment plan under section HYPERLINK "https://www.revisor.leg.state.mn.us/statutes?id=256J.521" \l "stat.256J.521.2" 256J.521, subdivision 2; and

v. information needed to establish an exception under section HYPERLINK "https://www.revisor.leg.state.mn.us/statutes?id=256J.24" \l "stat.256J.24.9" 256J.24, subdivision 9

4. Alternative Form of Verification

If primary documents are not available, then alternative methods of verifying are available. Some examples of alternative methods are: affidavits from the applicant, recipient, or other individuals. These circumstances are: