Legislature(1995 - 1996)
1995-03-06 Senate Journal
Full Journal pdf1995-03-06 Senate Journal Page 0498 SB 111 SENATE BILL NO. 111 BY THE SENATE RULES COMMITTEE BY REQUEST OF THE GOVERNOR, entitled: "An Act relating to the payment of Aid to Families with Dependent Children in the case of pregnant minors and minors who are parents; authorizing special projects within the program of Aid to Families with Dependent Children to create self-sufficiency and training opportunities; authorizing the Department of Health and Social Services to seek waivers from the federal government necessary to implement the special projects; affecting disbursement of child support payments under certain circumstances for purposes of one of the special projects; and providing for an effective date." was read the first time and referred to the Health, Education and Social Services and Finance Committees. Fiscal notes published today from Department of Health and Social Services (11). Zero fiscal notes published today from Department of Revenue, Department of Commerce and Economic Development. Governor's transmittal letter dated March 6: Dear President Pearce: Under the authority of art. III, sec. 18, of the Alaska Constitution, I am transmitting a bill that requires the Department of Health and Social Services (department) to operate four demonstration projects designed to reshape the state's Aid to Families with Dependent Children (AFDC) public assistance program to enable Alaska's 1995-03-06 Senate Journal Page 0499 SB 111 families with dependent children to move from dependency to economic self-sufficiency. The bill directs the department to seek waivers and approval from the federal government necessary to implement the demonstration projects. This bill also authorizes the department to make changes, by regulation, to the AFDC public assistance program that are consistent with the demonstration projects if federal law is revised so that waivers are not required. The bill additionally makes a change generally to the AFDC program to require unmarried minor parents to live with their parent, guardian, or other adult as a condition of eligibility. Certain exemptions from this requirement are provided in the bill. The four demonstration projects proposed by the bill are: 1) a diversion project that will provide an alternative to long-term AFDC benefits for families that require only a brief period of assistance; 2) a community work pilot project in which an urban area grantee and a rural grantee each will administer the project on a local basis to provide job training and community-based alternatives to families; 3) an unemployed parent project that will establish a family contract designed to establish family self-sufficiency within three years; and 4) a self-employment project that will allow recipients of assistance with an approved business plan to accumulate assets for a microenterprise while establishing a business. All of these projects place the focus of the AFDC program on preparing dependent families for jobs and self-sufficiency. Section 3 sets out the short title of the jobs portion of the bill as "The Jobs for Families with Dependent Children Act." Sections 4 and 5 of the bill set out the purpose of the bill and establish the findings that guide the reshaping of the AFDC program to provide jobs for dependent families. Section 6 of the bill requires the department to establish the demonstration projects proposed in the bill by requesting waivers from the federal government. It also outlines alternatives if changes in federal law make waivers unnecessary or if the projects would no longer be cost effective. Section 7 of the bill outlines a diversion program in which certain job-ready AFDC applicants may be diverted from long-term dependency by means of a lump-sum cash payment and related 1995-03-06 Senate Journal Page 0500 SB 111 services aimed at promptly establishing self-sufficiency. By meeting immediate needs and by providing immediate referrals to resources, this project is intended to provide a safety net for families that might have become dependent upon AFDC. Section 8 of the bill outlines community work pilot projects that would operate in at least two areas of the state, in which grants may be provided to community organizations to design a set of services and activities to meet job training and community service needs. In this program, it is expected that by placing project control in the hands of local organizations, the individual's and the community's needs can be better met. Section 9 of the bill outlines an unemployed parent project in which two-parent families that receive AFDC would be expected to develop a family plan to establish self-sufficiency within three years after entering the project. Each participating family would sign a contract that sets out the benchmarks of the plan and the services and referrals that would be designed to achieve the plan. Section 10 of the bill establishes a self-employment project in which AFDC recipients with approved business plans may accumulate business assets and deduct business expenses from income while working to establish a microenterprise. This project is very similar to the one proposed in HB 14. The bill also provides regulation-adoption authority so that the department can set detailed program guidelines in regulations. The bill provides an immediate effective date for sec. 6 of the bill, so that the department can begin the process of designing and securing federal approval for the demonstration projects. The specific projects will take effect as the department receives federal demonstration project authority or makes a determination that waivers are no longer necessary because of changes in federal law. The bill contains a July1, 2001 repeal date for the demonstration projects. Sections 1, 2, 13, and 15 of the bill contain the provisions that allow the department to immediately implement the new AFDC eligibility requirement for unmarried minor parents. 1995-03-06 Senate Journal Page 0501 SB 111 The demonstration projects proposed in this bill will enable the state to reshape its AFDC public assistance program to provide jobs for dependent families. I urge your support of this bill. Sincerely, /s/ Tony Knowles Governor