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SCS CSHB 78(FIN) AM S(EFD FLD S): "An Act relating to certain licenses and applications for licenses for persons who are not in substantial compliance with orders, judgments, or payment schedules for child support; relating to the duty to support children of minor parents; relating to the program of aid to families with dependent children, including the payment of aid in the case of pregnant minors and minors who are parents; proposing special demonstration projects within the program of aid to families with dependent children and directing the Department of Health and Social Services to seek waivers from the federal government to implement the projects; amending Alaska Rule of Civil Procedure 90.3."

00SENATE CS FOR CS FOR HOUSE BILL NO. 78(FIN) am S(efd fld S) 01 "An Act relating to certain licenses and applications for licenses for persons who 02 are not in substantial compliance with orders, judgments, or payment schedules 03 for child support; relating to the duty to support children of minor parents; 04 relating to the program of aid to families with dependent children, including the 05 payment of aid in the case of pregnant minors and minors who are parents; 06 proposing special demonstration projects within the program of aid to families 07 with dependent children and directing the Department of Health and Social 08 Services to seek waivers from the federal government to implement the projects; 09 amending Alaska Rule of Civil Procedure 90.3." 10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 11 * Section 1. AS 25.27.060 is amended by adding new subsections to read: 12  (e) If the child's parents are both unmarried minors who have not had the 13 disabilities of minority removed under AS 09.55.590, an order of child support issued 14 by a court or agency shall be based on the

01  (1) percentages of physical custody exercised by the child's parents; a 02 minor parent's custody of the child shall be imputed to the parents of the minor parent, 03 regardless of where the minor parent lives, except that 04  (A) if the minor parent and child live with a parent of the 05 noncustodial minor parent, the minor parent's custody of the child shall be 06 imputed to the parent of the noncustodial minor parent; and 07  (B) a minor parent's custody of a child may not be imputed to 08 the parents of the minor parent if the minor parent and child do not live with 09 a parent of the minor parent because 10  (i) neither parent will allow the minor and child to live 11 in the residence of the minor's parent; or 12  (ii) the physical or emotional health or safety of the 13 minor parent or the minor's child would be jeopardized if the minor and 14 the minor's child lived in the same residence with the minor's parent; 15 and 16  (2) incomes of the child's grandparents and parents. 17  (f) To the extent that (e) of this section applies, 18  (1) the child's grandparents are considered to have a duty to support the 19 child and are subject to laws, regulations, and court rules relating to support of the 20 child; and 21  (2) a grandparent who is determined under applicable agency 22 regulations and court rules to be the obligor for purposes of paying child support on 23 behalf of a grandchild is subject to all laws, regulations, and court rules applicable to 24 child support obligors. 25  (g) An order of support against a child's grandparent under (e) of this section 26 and a grandparent's duty to support a child under (f) of this section is terminated, 27 without the need for obtaining a modification of a child support order, when one of 28 the child's parents reaches the age of majority or has the disabilities of minority 29 removed under AS 09.55.590, whichever occurs earlier. However, to the extent that 30 a grandparent may have accrued arrearages, the grandparent remains an obligor subject 31 to this chapter.

01 * Sec. 2. AS 25.27 is amended by adding new sections to read: 02  Sec. 25.27.244. ADVERSE ACTION AGAINST DELINQUENT OBLIGOR'S 03 OCCUPATIONAL LICENSE. (a) The agency shall compile and maintain a list of 04 obligors who are not in substantial compliance with a support order or payment 05 schedule negotiated under (g)(1) of this section. The list must include the names, 06 social security numbers, dates of birth, and last known addresses of the obligors. The 07 list shall be updated by the agency on a monthly basis. 08  (b) The agency shall, on a monthly basis, provide a copy of the list to each 09 licensing entity through a computer-readable magnetic medium. A licensing entity 10 subject to this section shall implement procedures to accept and process the list. 11 Notwithstanding any other law to the contrary, a licensing entity may not issue or 12 renew a license for a person on the list except as provided in this section. 13  (c) Promptly after receiving an application from an applicant and before 14 issuing or renewing a license, a licensing entity shall determine whether the applicant 15 is on the most recent list provided by the agency. If the applicant is on the list, the 16 licensing entity shall immediately serve notice under (e) of this section of the licensing 17 entity's intent to withhold issuance or renewal of the license. The notice shall be 18 considered given when delivered personally to the obligor or deposited in the U.S. mail 19 addressed to the applicant's last known mailing address on file with the licensing 20 entity. 21  (d) A licensing entity shall issue a temporary license valid for a period of 150 22 days to an applicant whose name is on the list if the applicant is otherwise eligible for 23 a license. The temporary license may not be extended. Only one temporary license 24 may be issued during a regular license term and its validity shall coincide with the first 25 150 days of that license term. A license for the full or remainder of the license term 26 may be issued or renewed only upon compliance with this section. If a license or 27 application is denied under this section, funds paid by the applicant or licensee shall 28 be refunded by the licensing entity after retention of the temporary license fee, if any. 29  (e) Notices for use under (c) of this section shall be developed by each 30 licensing entity under guidelines provided by the agency and are subject to approval 31 by the agency. The notice must include the address and telephone number of the

01 agency and shall emphasize the necessity of obtaining a release from the agency as a 02 condition for the issuance or renewal of a license. The notice must inform an 03 applicant whose license is governed by (d) of this section that the licensing entity shall 04 issue a temporary license for 150 calendar days under (d) of this section if the 05 applicant is otherwise eligible and that, upon expiration of that time period, the license 06 will be denied unless the licensing entity has received a release from the agency. The 07 agency shall also develop a form that the applicant may use to request a review by the 08 agency. A copy of this form shall be included with each notice sent under (c) of this 09 section. 10  (f) The agency shall establish review procedures consistent with this section 11 to allow an applicant to have the underlying arrearage and relevant defenses 12 investigated, to provide an applicant information on the process of obtaining a 13 modification of a support order, or to provide an applicant assistance in the 14 establishment of a payment schedule on arrearages if the circumstances warrant. 15  (g) If the applicant wishes to challenge being included on the list, the applicant 16 shall submit to the agency a written request for review within 30 days after receiving 17 the notice under (c) of this section by using the form developed under (e) of this 18 section. Within 30 days after receiving a written request for review, the agency shall 19 inform the applicant in writing of the agency's findings. The agency shall immediately 20 send a release to the appropriate licensing entity and the applicant if any of the 21 following conditions is met: 22  (1) the applicant is found to be in substantial compliance with each 23 support order applicable to the applicant or has negotiated an agreement with the 24 agency for a payment schedule on arrearages and is in substantial compliance with the 25 negotiated agreement; if the applicant fails to be in substantial compliance with an 26 agreement negotiated under this paragraph, the agency shall send to the appropriate 27 licensing entity a revocation of any release previously sent to the entity for that 28 applicant; 29  (2) the applicant has submitted a timely request for review to the 30 agency, but the agency will be unable to complete the review and send notice of 31 findings to the applicant in sufficient time for the applicant to file a timely request for

01 judicial relief within the 150-day period during which the applicant's temporary license 02 is valid under (d) of this section; this paragraph applies only if the delay in completing 03 the review process is not the result of the applicant's failure to act in a reasonable, 04 timely, and diligent manner upon receiving notice from the licensing entity that the 05 applicant's name is on the list; 06  (3) the applicant has, within 30 days after receiving the agency's 07 findings following a request for review under (2) of this subsection, filed and served 08 a request for judicial relief under this section, but a resolution of that relief will not 09 be made within the 150-day period of the temporary license under (d) of this section; 10 this paragraph applies only if the delay in completing the judicial relief process is not 11 the result of the applicant's failure to act in a reasonable, timely, and diligent manner 12 upon receiving the agency's notice of findings; or 13  (4) the applicant has obtained a judicial finding of substantial 14 compliance. 15  (h) An applicant is required to act with diligence in responding to notices from 16 the licensing entity and the agency with the recognition that the temporary license 17 granted under (d) of this section will lapse after 150 days and that the agency and, 18 where appropriate, the court must have time to act within that 150-day period. An 19 applicant's delay in acting, without good cause, that directly results in the inability of 20 the agency to complete a review of the applicant's request or the court to hear the 21 request for judicial relief within the required period does not constitute the diligence 22 required under this section that would justify the issuance of a release. 23  (i) Except as otherwise provided in this section, the agency may not issue a 24 release if the applicant is not in substantial compliance with the order for support or 25 is not in substantial compliance with an agreement negotiated under (g)(1) of this 26 section. The agency shall notify the applicant in writing that the applicant may request 27 any or all of the following: (1) judicial relief from the agency's decision not to issue 28 a release or the agency's decision to revoke a release under (g)(1) of this section; (2) 29 a judicial determination of substantial compliance; (3) a modification of the support 30 order. The notice must also contain the name and address of the court in which the 31 applicant may file the request for relief and inform the applicant that the applicant's

01 name shall remain on the list if the applicant does not request judicial relief within 30 02 days after receiving the notice. The applicant shall comply with all statutes and rules 03 of court implementing this section. This section does not limit an applicant's authority 04 under other law to request an order to show cause or notice of motion to modify a 05 support order or to fix a payment schedule on arrearages accruing under a support 06 order or to obtain a court finding of substantial compliance with a support order. 07  (j) A request for judicial relief from the agency's decision must state the 08 grounds on which relief is requested and the judicial action shall be limited to those 09 stated grounds. Judicial relief under this subsection is not an appeal, and shall be 10 governed by court rules adopted to implement this section. Unless otherwise provided 11 by court rule, the court shall hold an evidentiary hearing within 20 calendar days of 12 the filing of service on the opposing party. The court's decision shall be limited to a 13 determination of each of the following issues: 14  (1) whether there is a support order or a payment schedule on 15 arrearages; 16  (2) whether the petitioner is the obligor covered by the support order; 17 and 18  (3) whether the obligor is in substantial compliance with the support 19 order or payment schedule. 20  (k) If the court finds that the obligor is in substantial compliance with the 21 support order or payment schedule, the agency shall immediately send a release under 22 (g) of this section to the appropriate licensing entity and the applicant. 23  (l) When the obligor is in substantial compliance with a support order or 24 payment schedule, the agency shall mail to the applicant and the appropriate licensing 25 entity a release stating that the applicant is in substantial compliance. The receipt of 26 a release shall serve to notify the applicant and the licensing entity that, for the 27 purposes of this section, the applicant is in substantial compliance with the support 28 order or payment schedule unless the agency, under (a) of this section, certifies 29 subsequent to the issuance of a release that the applicant is once again not in 30 substantial compliance with a support order or payment schedule. 31  (m) The agency may enter into interagency agreements with the state agencies

01 that have responsibility for the administration of licensing entities as necessary to 02 implement this section to the extent that it is cost effective to implement the 03 interagency agreements. The agreements shall provide for the receipt by the other 04 state agencies and licensing entities of federal funds to cover that portion of costs 05 allowable in federal law and regulation and incurred by the state agencies and licensing 06 entities in implementing this section. 07  (n) Notwithstanding any other provision of law, the licensing entities subject 08 to this section shall assess a fee for issuance of a temporary license under this section. 09 The licensing entity shall set the amount of the fee so that the fees collected under this 10 section cover the costs of implementing and administering this section. 11  (o) The process described in (g) of this section is the sole administrative 12 remedy for contesting the issuance to the applicant of a temporary license or the denial 13 of a license under this section. The procedures specified in AS 44.62.330 - 44.62.630 14 (Administrative Procedure Act) do not apply to the denial or failure to issue or renew 15 a license under this section. 16  (p) The agency and licensing entities, as appropriate, shall adopt regulations 17 necessary to implement this section. 18  (q) In this section, 19  (1) "applicant" means a person applying for issuance or renewal of a 20 license; 21  (2) "license" 22  (A) means, except as provided in (B) of this paragraph, a 23 license, certificate, permit, registration, or other authorization that, at the time 24 of issuance, will be valid for more than 150 days that may be acquired from 25 a state agency to perform an occupation, including the following: 26  (i) license relating to boxing or wrestling under 27 AS 05.10; 28  (ii) authorization to perform an occupation regulated 29 under AS 08; 30  (iii) teacher certificate under AS 14.20; 31  (iv) authorization under AS 18.08 to perform emergency

01 medical services; 02  (v) asbestos worker certification under AS 18.31; 03  (vi) boiler operator's license under AS 18.60.395; 04  (vii) certificate of fitness under AS 18.62; 05  (viii) hazardous painting certification under AS 18.63; 06  (ix) security guard license under AS 18.65.400 - 07 18.65.490; 08  (x) license relating to insurance under AS 21.27; 09  (xi) employment agency permit under AS 23.15.330 - 10 23.15.520; 11  (xii) registration as a broker-dealer, agent, or investment 12 adviser under AS 45.55.030; 13  (xiii) certification as a pesticide applicator under 14 AS 46.03.320; 15  (xiv) certification as a storage tank worker or contractor 16 under AS 46.03.375; and 17  (xv) certification as a water and wastewater works 18 operator under AS 46.30; 19  (xvi) a vessel license issued under AS 16.05.490 or 20 16.05.530; 21  (xvii) a commercial fishing license under AS 16.05.480, 22 including a crewmember fishing license; 23  (xviii) an entry permit or interim-use permit issued 24 under AS 16.43; 25  (B) does not include 26  (i) a license issued under AS 47.35; 27  (ii) a business license issued under AS 43.70; or 28  (iii) a driver's license issued under AS 28.15; 29  (3) "licensee" means a person holding a license or applying to renew 30 a license; 31  (4) "licensing entity" means the state agency that issues or renews a

01 license; in the case of a license issued or renewed by the Department of Commerce 02 and Economic Development after an applicant's qualifications are determined by 03 another agency, "licensing entity" means the department; 04  (5) "list" means the list of obligors compiled and maintained under (a) 05 of this section; 06  (6) "substantial compliance with a support order or payment schedule" 07 means that, with respect to a support order or a negotiated payment schedule under (g) 08 of this section, whichever is applicable, the obligor has no more than $2,500 past due 09 and has cumulatively paid an amount equal to or greater than the amount due for eight 10 months during the past 12 months; with respect to a support order or payment schedule 11 that has been in effect for less than one year, "substantial compliance" means that the 12 obligor has no more than $2,500 past due and has cumulatively paid an amount equal 13 to or greater than 67 percent of the amount due during the period the support order or 14 payment schedule has been in effect. 15  Sec. 25.27.246. ADVERSE ACTION AGAINST DELINQUENT OBLIGOR'S 16 DRIVER'S LICENSE. (a) The agency shall compile and maintain a list of obligors 17 who have a driver's license and are not in substantial compliance with a support order 18 or payment schedule negotiated under (f)(1) of this section. The list must include the 19 names, social security numbers, dates of birth, and last known addresses of the 20 obligors. The list shall be updated by the agency on a monthly basis. 21  (b) The agency shall serve notice under (d) of this section to each person on 22 the list that the person's driver's license will be suspended in 150 days, and will not 23 be reissued or renewed the next time it is applied for if the person's name is on the list 24 at the time of the subsequent application, unless the licensee receives a release from 25 the agency. The notice shall be considered given when delivered personally to the 26 obligor or deposited in the U.S. mail addressed to the obligor's last known mailing 27 address on file with the agency. 28  (c) If the licensee fails to obtain a release during the 150-day period following 29 notice under (b) and (d) of this section, the agency shall notify the department that the 30 licensee's driver's license should be suspended and further renewals or applications 31 should be denied until the agency sends the department a release for the licensee.

01 Upon receiving the agency's notice under this subsection, the department shall suspend 02 the licensee's driver's license and may not issue or renew a driver's license for the 03 licensee until the department receives a release to do so from the agency. If a license 04 or application is suspended or denied under this section, funds paid by the applicant 05 or licensee may not be refunded by the department. 06  (d) The notice under (b) of this section must include the address and telephone 07 number of the agency and shall emphasize the necessity of obtaining a release from 08 the agency as a condition for avoiding suspension or denial of the person's driver's 09 license. The notice must also inform the licensee that, if a license or application is 10 suspended or denied under this section, funds paid by the licensee will not be refunded 11 by the department. The agency shall also develop a form that the licensee may use 12 to request a review by the agency. A copy of this form shall be included with each 13 notice sent under (b) of this section. 14  (e) The agency shall establish review procedures consistent with this section 15 to allow a licensee to have the underlying arrearage and relevant defenses investigated, 16 to provide a licensee with information on the process of obtaining a modification of 17 a support order, or to provide a licensee with assistance in the establishment of a 18 payment schedule on arrearages if the circumstances warrant. 19  (f) If a licensee wishes to challenge being included on the list, the licensee 20 shall submit to the agency a written request for review within 30 days after the notice 21 under (b) of this section was personally delivered or postmarked by using the form 22 developed under (d) of this section. Within 30 days after receiving a written request 23 for review, the agency shall inform the licensee in writing of the agency's findings. 24 The agency shall immediately send a release to the department and the licensee if any 25 of the following conditions is met: 26  (1) the licensee is found to be in substantial compliance with each 27 support order applicable to the licensee or has negotiated an agreement with the agency 28 for a payment schedule on arrearages and is in substantial compliance with the 29 negotiated agreement; if the licensee fails to be in substantial compliance with an 30 agreement negotiated under this paragraph, the agency shall send to the department a 31 revocation of any release previously sent to the entity for that licensee;

01  (2) the licensee has submitted a timely request for review to the 02 agency, but the agency will be unable to complete the review and send notice of 03 findings to the licensee in sufficient time for the licensee to file a timely request for 04 judicial relief within the 150-day period before the licensee's license will be suspended 05 under (c) of this section; this paragraph applies only if the delay in completing the 06 review process is not the result of the licensee's failure to act in a reasonable, timely, 07 and diligent manner upon receiving notice from the agency that the licensee's driver's 08 license will be suspended in 150 days; 09  (3) the licensee has, within 30 days after receiving the agency's findings 10 following a request for review under (2) of this subsection, filed and served a request 11 for judicial relief under this section, but a resolution of that relief will not be made 12 within the 150-day period before license suspension under (c) of this section; this 13 paragraph applies only if the delay in completing the judicial relief process is not the 14 result of the licensee's failure to act in a reasonable, timely, and diligent manner upon 15 receiving the agency's notice of findings; or 16  (4) the licensee has obtained a judicial finding of substantial 17 compliance. 18  (g) A licensee is required to act with diligence in responding to notices from 19 the agency with the recognition that the person's driver's license will be suspended 20 after 150 days or that a subsequent license will not be issued and that the agency and, 21 where appropriate, the court must have time to act within that 150-day period or before 22 the subsequent license is needed, as applicable. A licensee's delay in acting, without 23 good cause, that directly results in the inability of the agency to complete a review of 24 the licensee's request or the court to hear the request for judicial relief within the 25 required period does not constitute the diligence required under this section that would 26 justify the issuance of a release. 27  (h) Except as otherwise provided in this section, the agency may not issue a 28 release if the applicant is not in substantial compliance with the order for support or 29 is not in substantial compliance with an agreement negotiated under (f)(1) of this 30 section. The agency shall notify the licensee in writing that the licensee may request 31 any or all of the following: (1) judicial relief from the agency's decision not to issue

01 a release or the agency's decision to revoke a release under (f)(1) of this section; (2) 02 a judicial determination of substantial compliance; (3) a modification of the support 03 order. The notice must also contain the name and address of the court in which the 04 licensee may file the request for relief and inform the licensee that the licensee's name 05 shall remain on the list if the licensee does not request judicial relief within 30 days 06 after receiving the notice. The licensee shall comply with all statutes and rules of 07 court implementing this section. This section does not limit a licensee's authority 08 under other law to request an order to show cause or notice of motion to modify a 09 support order or to fix a payment schedule on arrearages accruing under a support 10 order or to obtain a court finding of substantial compliance with a support order. 11  (i) A request for judicial relief from the agency's decision must state the 12 grounds on which relief is requested and the judicial action shall be limited to those 13 stated grounds. Judicial relief under this subsection is not an appeal, and shall be 14 governed by court rules adopted to implement this section. Unless otherwise provided 15 by court rule, the court shall hold an evidentiary hearing within 20 calendar days of 16 the filing of service on the opposing party. The court's decision shall be limited to a 17 determination of each of the following issues: 18  (1) whether there is a support order or a payment schedule on 19 arrearages; 20  (2) whether the petitioner is the obligor covered by the support order; 21 and 22  (3) whether the obligor is in substantial compliance with the support 23 order or payment schedule. 24  (j) If the court finds that the obligor is in substantial compliance with the 25 support order or payment schedule, the agency shall immediately send a release under 26 (f) of this section to the department and the licensee. 27  (k) When the obligor is in substantial compliance with a support order or 28 payment schedule, the agency shall mail to the applicant and the department a release 29 stating that the licensee is in substantial compliance. The receipt of a release shall 30 serve to notify the licensee and the department that, for the purposes of this section, 31 the applicant is in substantial compliance with the support order or payment schedule

01 unless the agency, under (a) of this section, certifies subsequent to the issuance of a 02 release that the licensee is once again not in substantial compliance with a support 03 order or payment schedule. 04  (l) The process described in (f) of this section is the sole administrative 05 remedy for contesting the suspension or the denial of a driver's license under this 06 section. The procedures specified in AS 28 or AS 44.62.330 - 44.62.630 07 (Administrative Procedure Act) do not apply to the suspension or failure to issue or 08 renew a license under this section. 09  (m) The agency and department, as appropriate, shall adopt regulations 10 necessary to implement this section. 11  (n) In this section, 12  (1) "department" means the Department of Public Safety; 13  (2) "driver's license" or "license" means a driver's license, as defined 14 in AS 28.40.100; 15  (3) "licensee" means a person holding or requesting a driver's license; 16  (4) "list" means the list of obligors compiled and maintained under (a) 17 of this section; 18  (5) "substantial compliance with a support order or payment schedule" 19 means that, with respect to a support order or a negotiated payment schedule under (f) 20 of this section, whichever is applicable, the obligor has no more than $2,500 past due 21 and has cumulatively paid an amount equal to or greater than the amount due for eight 22 months during the past 12 months; with respect to a support order or payment schedule 23 that has been in effect for less than one year, "substantial compliance" means that the 24 obligor has no more than $2,500 past due and has cumulatively paid an amount equal 25 to or greater than 67 percent of the amount due during the period the support order or 26 payment schedule has been in effect. 27 * Sec. 3. AS 47.25 is amended by adding a new section to read: 28  Sec. 47.25.311. INELIGIBILITY FOR ASSISTANCE. (a) A person is 29 permanently ineligible for assistance under AS 47.25.310 - 47.25.420 upon conviction 30 of violating AS 11.56.210 or a law in another jurisdiction with elements substantially 31 similar to AS 11.56.210 if the conviction arose out of a written or recorded statement

01 submitted in order to apply for or continue receiving assistance under AS 47.07, this 02 chapter, or similar laws in another jurisdiction. 03  (c) A person is not eligible to receive benefits under AS 47.25.310 - 47.25.420 04 for more than a total of 60 months as the caretaker of a dependent child or as a 05 pregnant woman unless the person is 06  (1) determined, under regulations of the department, to be physically 07 or mentally unable to perform any gainful activity; or 08  (2) a parent who is providing care for a child with a developmental 09 disability, as defined in AS 47.80.900. 10  (d) The department shall implement this section only to the extent that 11 implementation is not prohibited under federal law. To the extent that this section may 12 be implemented under federal law, its provisions supersede inconsistent provisions of 13 AS 47.25.310 - 47.25.420. 14 * Sec. 4. AS 47.25.320 is amended by adding a new subsection to read: 15  (h) Notwithstanding the assistance payment schedules in AS 47.25.310 - 16 47.25.420, if federal money available to the state for assistance under AS 47.25.310 - 17 47.25.420 is less than the federal money available during the previous federal fiscal 18 year, the department shall adjust the monetary maximums and payment amounts 19 authorized under this section so that the general fund money from nonfederal sources 20 does not replace the federal money reduction. 21 * Sec. 5. AS 47.25.360 is amended to read: 22  Sec. 47.25.360. GRANTING OF ASSISTANCE. Upon the completion of the 23 investigation, the department shall decide whether the child is eligible for assistance 24 under AS 47.25.310 - 47.25.420, the amount of assistance, and the date on which it 25 starts. The department shall notify the person having custody of the child of its 26 decision. Except as provided in AS 47.25.362(b), the [THE] assistance shall be paid 27 monthly to the person having custody of the child upon order of the department. 28 * Sec. 6. AS 47.25 is amended by adding new sections to read: 29  Sec. 47.25.362. ASSISTANCE TO MINORS WITH CHILDREN. (a) Except 30 as provided in (c) of this section, the department shall require, as a condition of 31 eligibility for assistance, that a minor parent must reside in a

01  (1) place of residence maintained by the minor's parent, legal guardian, 02 or other adult relative of the minor as the parent's, guardian's, or other relative's own 03 home; or 04  (2) foster home, maternity home, or other adult-supervised supportive 05 living arrangement. 06  (b) Notwithstanding AS 47.25.360, the department shall, where possible, pay 07 assistance on behalf of a minor parent who is subject to the requirements of (a) of this 08 section to the minor's parent, legal guardian, or other adult relative, or, as applicable, 09 to the head of the adult-supervised supportive living arrangement where the minor 10 parent resides. 11  (c) The provisions of (a) and (b) of this section do not apply if 12  (1) the minor parent does not have a parent or legal guardian who is 13 living and whose whereabouts is known; 14  (2) a living parent or legal guardian of the minor parent will not allow 15 the minor to live in the home of the parent or guardian; 16  (3) the department determines that the physical or emotional health or 17 safety of the minor parent or the minor's child would be jeopardized if the minor and 18 the minor's child lived in the same residence with the minor's parent or guardian; 19  (4) the minor parent lived apart from the minor's parent or legal 20 guardian for either one year before the birth of the dependent child or one year before 21 the minor parent submitted the application for assistance; or 22  (5) the department otherwise determines under regulations that are 23 consistent with corresponding federal regulations that there is good cause for waiving 24 the requirements of (a) of this section in the case of a particular minor parent. 25  (d) When determining eligibility for, and the amount of, assistance in the case 26 of a minor parent who is required to live in a household or living arrangement with 27 an adult under (a) of this section, the department shall, to the extent allowed under 28 federal law or under a waiver of federal law, disregard the income and resources of 29 the adults in the household or living arrangement if the total income of the adults is 30 less than 133 percent of the federal poverty line for this state, as defined by the federal 31 office of management and budget and revised annually under 42 U.S.C. 9902(2). If

01 the department determines that a waiver of federal law is necessary before this 02 subsection may be implemented, the department shall promptly seek a waiver. 03  (e) In this section, "minor parent" means a person who is under the age of 18, 04 who has never married, and is either 05  (1) the natural parent of a dependent child living in the same 06 household; or 07  (2) eligible for assistance as a pregnant woman. 08  Sec. 47.25.364. TIME LIMIT ON BENEFITS. (a) Except as provided in (b) 09 of this section, a family who has a member assigned to an activity under AS 47.25.421 10 - 47.25.429 is ineligible for assistance beginning with the 25th month after the person 11 is assigned and does not become eligible to apply for assistance again until 84 months 12 after the person is assigned. 13  (b) The eligibility of a family described in (a) of this section shall be extended 14 beyond 24 months from the assignment described in (a) of this section if the assigned 15 person has cooperated with the department and has substantially complied with the 16 requirements of the program to which the person was assigned but 17  (1) a temporary and verified physical or mental condition, as supported 18 by appropriate medical documentation, prevents the person from attaining and 19 maintaining employment that would provide the family with net income equal to or 20 greater than what the family would receive from the assistance grant; 21  (2) the department failed to comply with AS 47.25.427 with respect to 22 the family; 23  (3) despite all appropriate efforts, the person has been unable to find, 24 or has lost without cause, employment that would provide the family with net income 25 equal to or greater than what the family would receive from assistance; or 26  (4) other unique circumstances exist, as determined by the department, 27 that prevent the person from obtaining or retaining adequate employment. 28  (c) The department shall implement this section only to the extent that 29 implementation is not prohibited under federal law. To the extent that this section may 30 be implemented under federal law, its provisions supersede inconsistent provisions of 31 AS 47.25.310 - 47.25.420.

01 * Sec. 7. AS 47.25.310(c) is repealed. 02 * Sec. 8. COURT RULE CHANGE. (a) AS 25.27.060 (e) - (g), added by sec. 1 of this 03 Act, have the effect of amending Alaska Rule of Civil Procedure 90.3 by requiring 04 consideration of the income of the grandparents of a child when determining a child support 05 obligation under certain circumstances and by providing that a child's grandparents are 06 obligated to support the child under certain circumstances. 07 (b) Under art. IV, sec. 15, Constitution of the State of Alaska, AS 25.27.060(e) - (g), 08 added by sec. 1 of this Act, and this section may become law with the affirmative vote of a 09 majority of the membership of each house because the court rule being amended is not a rule 10 governing practice or procedure. 11 * Sec. 9. APPLICABILITY. (a) AS 47.25.311(a), added by sec. 3 of this Act, applies to 12 offenses committed on or after March 1, 1996. 13 (b) The following periods of time include only time elapsing after March 1, 1996: 14 (1) the 10-month period in AS 47.25.311(b)(2), enacted by sec. 3 of this Act; 15 (2) the 60-month time limit in AS 47.25.311(d), enacted by sec. 3 of this Act; 16 (3) the 24-month time limit under AS 47.25.364(a), enacted by sec. 6 of this 17 Act; 18 (4) the 24-month time limit in sec. 13(e) of this Act; and 19 (5) the two-year and 24-month time limits in sec. 14 of this Act. 20 * Sec. 10. REPORT. (a) In furtherance of the public policy of increasing child support 21 enforcement and collections, on or before January 1, 1998, the child support enforcement 22 agency shall make a report to the legislature and the governor based on data collected by the 23 licensing entities and the agency in a format prescribed by the agency. The report must 24 contain 25 (1) the number of delinquent obligors on the lists maintained by the agency 26 under AS 25.27.244 - 25.27.246, enacted by sec. 2 of this Act; 27 (2) the number of delinquent obligors who also were applicants or licensees 28 subject to AS 25.27.244 - 25.27.246, enacted by sec. 2 of this Act; 29 (3) the number of new licenses and renewals that were delayed or denied and 30 temporary licenses issued subject to AS 25.27.244 and the number of new licenses and 31 renewals granted following receipt by licensing entities of releases under AS 25.27.244 by

01 July 1, 1997; 02 (4) the number of licenses under AS 28.15 that were suspended under 03 AS 25.27.246 and the number of licenses under AS 28.15 that were reinstated following 04 receipt by the Department of Public Safety of releases under AS 25.27.246 by July 1, 1997; 05 and 06 (5) the costs incurred in the implementation and enforcement of AS 25.27.244 07 - 25.27.246, enacted by sec. 2 of this Act. 08 (b) A licensing entity receiving an inquiry from the agency under (a) of this section 09 shall cooperate with the agency. When queried as to the licensed status of an applicant who 10 has had a license denied or suspended under AS 25.27.244 or 25.27.246 or has been granted 11 a temporary license under AS 25.27.244, the licensing entity shall respond only that the 12 license was denied or suspended or that the temporary license was issued. 13 * Sec. 11. WAIVER APPLICATION. (a) The Department of Health and Social Services 14 shall, by February 15, 1996, seek appropriate waivers from the federal government to 15 implement the AFDC demonstration projects described in secs. 12 - 16 of this Act. To the 16 extent that the federal government approves the necessary waivers, the department shall 17 implement the projects. The purposes of the projects are to promote personal responsibility 18 and self-sufficiency. 19 (b) At a minimum, the department shall implement secs. 13 - 16 of this Act as four 20 separate projects in four different areas of the state, with at least one project in a municipality 21 with a population over 25,000, one in a municipality with a population between 5,000 and 22 25,000, and one in a municipality or community with a population under 5,000. If the 23 department determines that more than one project can be efficiently and usefully operated in 24 the same area at the same time the department may operate more than one project in the same 25 area as a fifth project, subject to federal approval of the appropriate waivers. 26 (c) Notwithstanding (a) of this section, if changes in federal statutes or regulations 27 occur after the effective date of this section and would have a major effect on the design, 28 implementation, or operation of the project, the department shall 29 (1) apply for and implement only the waivers that relate to the parts of the 30 project that are not substantially affected by the changes in federal statutes or regulations; if 31 the department determines that the parts of the project that are not substantially affected by

01 the federal changes do not comprise a fiscally responsible project, the department is not 02 required to apply for or implement waivers under this Act and may discontinue operation of 03 the project under waivers that were implemented before the federal changes occurred; 04 (2) report to the legislature its recommendations for changes in its statutory 05 authority that may be needed in order to implement a fiscally responsible project in light of 06 conflicting or permissive changes in federal statutes or regulations. 07 * Sec. 12. EARNED INCOME DISREGARD; WAIVER OF "100-HOUR" RULE; AUTO 08 ALLOWANCE. When determining the AFDC eligibility of a family that is participating in 09 a project under secs. 13 - 15 of this Act and when determining the amount of assistance to 10 which the family is entitled, the department shall 11 (1) disregard, for 24 months, $200 plus one-third of the remainder of the 12 earned income of each person in the family unless federal regulations require that more earned 13 income of a person must be disregarded; for a family that applies for AFDC after this 14 paragraph has been implemented, this 24 months begins with the month for which the family 15 is first granted AFDC; for a family that is already receiving assistance when this paragraph 16 is implemented, this 24 months begins with the first month during which this paragraph is 17 implemented; 18 (2) waive the requirement that, for purposes of assistance for a dependent child 19 of unemployed parents, the principal wage-earning parent must be employed less than 100 20 hours a month; and 21 (3) allow the exclusion of $5,000 of the combined equity of motor vehicles 22 used by the family for basic family transportation, transportation of a disabled child in the 23 household, or transportation of a member of the family to or from employment, training, or 24 participation in an activity required under secs. 13 - 14 of this Act; if the combined equity of 25 vehicles described in this paragraph exceeds $5,000, the department shall apply the excess 26 equity amount toward the asset limit otherwise applicable to the family. 27 * Sec. 13. WORKFARE. (a) The department shall operate a workfare project. Each 28 member of an AFDC family in the workfare project area who is 18 years of age or older shall 29 participate for 21 hours a week in an uncompensated activity if assigned to the activity by the 30 department. The department shall assess the availability of activities that satisfy the purposes 31 of this subsection in the project area and attempt to develop additional activities where

01 necessary. When assessing the availability of activities that are suitable as uncompensated 02 activities under this section and in assigning persons to those activities, the department shall 03 consider activities recommended by governmental representatives of boroughs, cities, and 04 communities and others in the project area. The activities may include provision of child care 05 for other project participants, community work experience, work-related training programs, 06 high school completion, GED programs, or culturally relevant subsistence activities. The 07 department shall penalize the family for failure of a person to comply with this subsection by 08 disregarding that person as a member of the family for purposes of determining the amount 09 of AFDC assistance given to the family. 10 (b) If organizations exist in the project area that have had successful experience in 11 conducting employment placement services, community services, and job training programs, 12 the department shall offer on a competitive basis contracts to those organizations to administer 13 (a) of this section. A contract under this subsection must provide that the department shall 14 make the determinations required under (c) and (d) of this section and the contractor shall 15 perform the duties assigned to the department under (a) of this section with respect to 16 uncompensated activities, including assessment of their availability, development of additional 17 activities, consideration of activities recommended by governmental representatives, and 18 assignment of persons to specific activities after referral of those persons to the contractor by 19 the department. Subject to (e) of this section, the department may, after consultation with the 20 appropriate contractor under this subsection, if any, 21 (1) provide AFDC benefits to participant families in amounts and forms the 22 department determines are appropriate to the circumstances of the family; 23 (2) use AFDC benefits to subsidize payments or provide services to 24 participants in community work projects or work training projects; an amount distributed as 25 a subsidy under this paragraph is not considered to be wages; and 26 (3) deny AFDC benefits to a family that fails to cooperate with services 27 offered and activities required under the pilot project; a family denied benefits under this 28 paragraph may appeal that determination to the department under AS 47.25.370 for review of 29 whether the denial was appropriate under department regulations governing administration of 30 the project. 31 (c) The requirement to participate in an uncompensated activity under (a) of this

01 section does not apply to a person who 02 (1) has paid employment of at least 15 hours a week; a person who has paid 03 employment of less than 15 hours a week shall participate in an uncompensated activity 04 assigned under (a) of this section for the number of hours that, when added to the hours of 05 paid employment, equals 21; 06 (2) is exempt from participating in an activity under AS 47.25.421 - 47.25.429 07 (JOBS program); 08 (3) is enrolled as a full-time student in good standing in a career education 09 program, college, or university, as defined in regulations adopted under AS 14.43; 10 (4) is the parent or other relative of a child under six years of age living in the 11 same household who personally provides care for the child; 12 (5) is determined, according to regulations of the department, to be physically 13 or mentally unable to perform any reasonable activity that may be assigned under this section; 14 or 15 (6) is a parent who is providing care for a child with a developmental disability 16 as defined by AS 47.80.900. 17 (d) Notwithstanding (a) of this section, the department may not require a person to 18 participate in an uncompensated activity under (a) of this section unless the department agrees 19 to pay for 20 (1) costs of child care determined by the department to be necessary for the 21 person's participation; and 22 (2) transportation expenses determined by the department to be necessary for 23 the person's participation in the activity. 24 (e) Except as provided in (f) of this section, a family who has a member assigned to 25 an activity under this section is ineligible for AFDC beginning with the 25th month after the 26 person is assigned and does not become eligible to apply for assistance again until 84 months 27 after the person is assigned. 28 (f) The eligibility of a family described in (e) of this section shall be extended beyond 29 24 months from the assignment described in (e) of this section if the assigned person has 30 cooperated with the department and has substantially complied with the requirements of the 31 program to which the person was assigned but

01 (1) a temporary and verified physical or mental condition, as supported by 02 appropriate medical documentation, prevents the person from attaining and maintaining 03 employment that would provide the family with net income equal to or greater than what the 04 family would receive from the assistance grant; 05 (2) the department failed to comply with (d) of this section with respect to the 06 family; 07 (3) despite all appropriate efforts, the person has been unable to find, or has 08 lost without cause, employment that would provide the family with net income equal to or 09 greater than what the family would receive from assistance; or 10 (4) other unique circumstances exist, as determined by the department, that 11 prevent the person from obtaining or retaining adequate employment. 12 (g) In this section, "project area" means the area chosen by the department in which 13 to operate the workfare project described in this section. 14 * Sec. 14. AFDC UNEMPLOYED PARENT PROJECT. (a) The Department of Health 15 and Social Services shall operate a transition-to-work project that is designed to assist two-parent families receiving 16 assistance under the Aid to Families with Dependent Children 17 (AFDC) program to achieve economic self-sufficiency within two years after the date of entry 18 into the project. To this end, the department shall develop, with each participating family, an 19 individual family plan for achieving self-support and shall enter into a contract with that 20 family that identifies 21 (1) the services that the department will provide to enable the family to achieve 22 self-support; 23 (2) the activities that the family will participate in to prepare for self-sufficiency; 24 (3) specific benchmarks to indicate the steps toward successful completion of 25 the family plan; 26 (4) an agreement that cash assistance benefits under the AFDC program will 27 be available to the family for no more than 24 months during the period from the effective 28 date of this section to June 30, 2001; 29 (5) an acknowledgment that medical assistance benefits under AS 47.07 may 30 be available as long as the family is otherwise eligible under the AFDC program; and 31 (6) an acknowledgement that failure to comply with the terms of a family plan

01 developed under this section or failure to meet a benchmark of the plan may result in a 02 finding of noncooperation and a modification or denial of AFDC benefits to the family. 03 (b) The services and referrals to be provided by the department and the activities to 04 be included in a family plan may include 05 (1) child care services; 06 (2) uncompensated community work experience; 07 (3) work-related training programs; 08 (4) high school completion or GED programs; 09 (5) provision of child care for other project participants; 10 (6) culturally relevant subsistence activities; 11 (7) placement in paid employment; and 12 (8) referral to other services and programs that may improve the family's 13 employability or self-sufficiency. 14 (c) The department shall deny AFDC benefits to a family that is assigned to 15 participate in the project under this section if the family fails to cooperate in the development 16 of a family plan or fails to sign a family contract as required by (a) of this section. A family 17 assigned to participate in the project under this section that is denied AFDC benefits under 18 this subsection shall be provided the opportunity for a fair hearing under AS 47.25.370 to 19 determine whether benefits were properly denied under the statutes and regulations governing 20 the project. 21 (d) To the extent that a provision of this section is inconsistent with a provision of 22 AS 47.25.310 - 47.25.429, the provision of this section governs. 23 * Sec. 15. SELF-EMPLOYMENT PROJECT. (a) The Department of Health and Social 24 Services shall operate a self-employment demonstration project for the purpose of allowing 25 individual recipients of Aid to Families with Dependent Children (AFDC) assistance under 26 AS 47.25.310 - AS 47.25.429 to reduce their need for public assistance by establishing and 27 operating a microenterprise. Under the self-employment demonstration project, a recipient 28 may accumulate certain resources needed to acquire business skills or to establish and operate 29 a microenterprise without becoming ineligible for AFDC assistance. 30 (b) An AFDC recipient who wishes to participate in the self-employment 31 demonstration project under this section shall request from the department a referral to a

01 nonprofit business development organization for an assessment of the recipient's capacity for 02 self-employment and the economic viability of the microenterprise contemplated by the 03 recipient. After review of the request, the department may provide the referral. 04 (c) An AFDC recipient who wishes to participate in the self-employment 05 demonstration project and has been referred for an assessment under (b) of this section shall 06 formulate a business plan for the microenterprise. The recipient shall submit the business plan 07 to the nonprofit business development organization for review and then submit the reviewed 08 business plan to the department for approval. 09 (d) For purposes of determining a recipient's eligibility for AFDC assistance, for the 10 first 36 months after the initial approval by the department of the recipient's business plan for 11 a microenterprise, the department shall 12 (1) disregard up to $10,000 in microenterprise assets set aside for the 13 development or operation of the microenterprise in accordance with the approved plan; 14 (2) disregard up to $500 each month in nonbusiness income set aside for the 15 development or operation of the microenterprise; and 16 (3) determine the recipient's income based on the net business income received 17 from the recipient's microenterprise. 18 (e) At 12-month intervals, a recipient whose business plan for a microenterprise has 19 been approved shall submit to the department a review of the financial records of the 20 microenterprise, signed by an accountant or bookkeeper, and verified by the nonprofit business 21 development organization that conducted the recipient's assessment under (b) of this section. 22 The cost of record review shall be considered a business expense of the recipient's 23 microenterprise. 24 (f) To the extent that a provision of this section is inconsistent with a provision of 25 AS 47.25.310 - 47.25.429, the provision of this section governs. 26 (g) In this section, 27 (1) "business income" means all income derived from the use of 28 microenterprise assets in a microenterprise; 29 (2) "employees" means the operator of a microenterprise and any persons 30 employed in the operation of the business; 31 (3) "microenterprise" means a business enterprise that has fewer than five

01 employees; 02 (4) "microenterprise assets" means all of the following: 03  (A) business loans; 04  (B) capital equipment; 05  (C) inventory; and 06  (D) all other assets required for the operation of the microenterprise; 07 (5) "net business income" means all business income minus all of the 08 following: 09 (A) business loan payments; 10 (B) business taxes; 11  (C) expenditures for vehicles vital to the business operations; 12 (D) cash retained in the microenterprise; 13 (E) insurance expenditures; 14 (F) inventory raw material expense; 15 (G) transportation expenditures; 16 (H) office supplies; 17  (I) professional services, including accounting, legal, or other consulting 18 services; 19 (J) delivery charges and supplies; 20  (K) commissions, salaries, wages, and other employment benefits, 21 including dental and vision care; 22 (L) postage; 23 (M) rent; 24 (N) utilities; 25 (O) telephone expenses; 26  (P) advertising and other marketing and promotional costs; and 27 (Q) training and professional development expenses. 28 * Sec. 16. DIVERSION PROJECT. (a) The Department of Health and Social Services 29 shall operate a diversion project that is designed to increase family income through 30 employment and child support payments by offering lump-sum diversion payments in place 31 of ongoing financial assistance under the Aid to Families with Dependent Children (AFDC)

01 program. A diversion payment may be offered to an applicant for AFDC who is job-ready 02 and who needs short-term financial assistance to meet critical needs in order to secure 03 employment and support for the applicant's family. 04 (b) Diversion project benefits may be paid only to an applicant's family that appears, 05 based on the information provided to the department on an AFDC application, to be eligible 06 for AFDC benefits and to include a job-ready individual. The department may offer, to an 07 AFDC applicant with the potential to participate in the diversion project, a choice between 08 (1) having the AFDC application processed under AS 47.25.310 - 47.25.429; 09 or 10 (2) having the AFDC application denied and applying for diversion project 11 benefits under this section. 12 (c) The amount of the diversion payment must be sufficient to meet the family's 13 immediate needs as determined by the department and the participant. A diversion payment 14 may not exceed 15 (1) $1,000 for a family that includes one AFDC-eligible individual; 16 (2) $1,500 for a family that includes two AFDC-eligible individuals; 17 (3) $2,000 for a family that includes three AFDC-eligible individuals; 18 (4) $2,500 for a family that includes four or more AFDC-eligible individuals. 19 (d) As a condition of a family receiving a diversion payment under this section, the 20 participant must sign a binding contract between the participant and the department that 21 (1) specifies the amount of the diversion payment and the needs it is intended 22 to cover; 23 (2) provides that, during the three-month period beginning with the month in 24 which the diversion payment was received, child support collected on behalf of a child whose 25 needs were considered in determining the diversion payment shall be paid to the family; and 26 (3) provides that if the family reapplies for AFDC assistance under 27 AS 47.25.310 - 47.25.429 during the three months beginning with the month in which the 28 family received a diversion payment the diversion payment shall be treated as unearned 29 income, prorated over the three-month period, and deducted from any AFDC benefit the 30 family may be eligible for under the new application. 31 (e) A family that receives a diversion payment may not receive another diversion

01 payment before the 12th month following the month in which it last received a diversion 02 payment. 03 (f) To the extent that a provision of this section is inconsistent with AS 25.27.120 or 04 25.27.130, or with a provision of AS 47.25.310 - 47.25.429, the provision of this section 05 governs. 06 * Sec. 17. COOPERATION. State agencies shall cooperate with the department to the 07 extent necessary to implement secs. 11 - 18 of this Act. 08 * Sec. 18. DEFINITIONS. In secs. 11 - 18 of this Act, 09 (1) "AFDC" means the program of aid to families with dependent children 10 under AS 47.25.310 - 47.25.420; 11 (2) "department" means the Department of Health and Social Services. 12 * Sec. 19. IMMUNITY FROM LIABILITY. (a) The Department of Health and Social 13 Services, and its employees, agents, and grantees, are not liable for civil damages as a result 14 of an act or omission in the implementation, operation, or administration of an authorized 15 project under secs. 11 - 18 of this Act. 16 (b) The provisions of (a) of this section do not preclude liability for civil damages as 17 a result of recklessness or intentional misconduct. 18 (c) The provisions of (b) of this section do not constitute a waiver or limitation of 19 sovereign or other immunity. 20 * Sec. 20. REGULATIONS. (a) The Department of Health and Social Services shall 21 adopt regulations necessary to implement secs. 11 - 19 of this Act. The regulations adopted 22 by the department may include 23 (1) eligibility criteria for the projects described in secs. 12 - 16 of this Act that 24 differ from eligibility requirements in AS 47.25.310 - AS 47.25.429 and the regulations 25 adopted under those statutes; 26 (2) a maximum number of participants to be included in each project, if 27 necessary; 28 (3) exemptions from requiring participation in the projects because of 29 exceptional circumstances; and 30 (4) provisions for financial or non-financial sanctions for applicants who fail 31 to cooperate with project requirements or a provision of a plan.

01 (b) The Department of Revenue, child support enforcement agency, may adopt 02 regulations necessary to implement sec. 16 of this Act. 03 * Sec. 21. TRANSITION. The Department of Health and Social Services and the 04 Department of Revenue, child support enforcement agency, may proceed to adopt regulations 05 necessary to implement this Act. The regulations to implement a section of this Act take 06 effect under AS 44.62 (Administrative Procedure Act), but not before the effective date of the 07 relevant section of this Act. 08 * Sec. 22. Sections 11 - 20 of this Act are repealed July 1, 2001. 09 * Sec. 23. The commissioner of health and social services shall notify the revisor of statutes 10 and the lieutenant governor of the effective date of each of secs. 12 - 16 of this Act and of 11 whether the effective date was determined by a waiver approval or a determination that a 12 waiver is not necessary.