00 CS FOR SENATE BILL NO. 206(CRA) 01 "An Act relating to welfare reform by establishing the Alaska family 02 independence program; repealing the aid to families with dependent children and 03 job opportunity and basic skills programs; relating to an exemption to the 04 Alaska Wage and Hour Act for certain work activities of the Alaska family 05 independence program; authorizing qualified entities to contract with the state 06 to administer all or part of the Alaska family independence program; relating 07 to the duty to support children of minor parents; relating to certain licenses 08 and applications for a license for persons who are not in substantial compliance 09 with orders, judgments, or payment schedules for child support; relating to an 10 exemption to the State Procurement Code for certain services for the general 11 relief program and Alaska family independence program; relating to eligibility 12 for day care benefits administered by the Department of Community and 13 Regional Affairs; authorizing the Department of Health and Social Services to 14 operate a public assistance program consistent with the Alaska family 01 independence program under federal waivers and providing certain immunity 02 from liability for activities of that program; amending Rule 90.3, Alaska Rules 03 of Civil Procedure; and providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. PURPOSE. The purpose of this Act is to 06 (1) establish the Alaska family independence program; 07 (2) encourage the well-being of Alaska's children by maintaining a safety net 08 for children living in poverty in this state by providing assistance to meet the basic needs of 09 Alaska's children and their families; 10 (3) set limits on benefits and establish incentives to encourage public assistance 11 recipients to become self-sufficient; 12 (4) develop job opportunities and promote work as the best means to achieve 13 family self-sufficiency; 14 (5) prevent dependency by diverting eligible families receiving assistance to 15 work and self-sufficiency; 16 (6) integrate service delivery by collocating access to job training and 17 placement services with family assistance offices; 18 (7) increase the effectiveness of the child support collection program to assist 19 in family self-sufficiency and meet federal program requirements; 20 (8) require coordination between state agencies, local communities, businesses, 21 and the federal government to develop a program that will move Alaska families to self- 22 sufficiency; and 23 (9) enable the state to develop and maintain a family independence program 24 that meets the requirements for federal financing. 25 * Sec. 2. AS 47 is amended by adding a new chapter to read: 26 CHAPTER 27. ALASKA FAMILY INDEPENDENCE PROGRAM. 27  Sec. 47.27.005. DUTIES OF THE DEPARTMENT. The department shall 28  (1) administer the Alaska family independence program by providing 29 assistance with basic living expenses and self-sufficiency services to needy children 30 and their families under this chapter; 31  (2) establish, by regulation, program standards that will provide 01 incentives to work, incentives for financial planning, and opportunities to develop self- 02 sufficiency while providing assistance with basic living expenses; 03  (3) provide education and health related services and referrals to reduce 04 the number of out-of-wedlock births in the state; 05  (4) prepare, submit to the federal government, and amend, if necessary, 06 a state plan designed to assure that federal money is available to the state for the 07 operation of the program set out in this chapter to provide assistance for basic living 08 expenses and self-sufficiency services to needy children and their families consistent 09 with state objectives; 10  (5) adopt methods of program administration to assure consistency with 11 the federal requirements under the federal Temporary Assistance for Needy Families 12 program or any successor federal law to the aid to families with dependent children 13 program; 14  (6) make reports to the federal government as required under the 15 Temporary Assistance for Needy Families program, in the form and containing the 16 information required, and comply with the provisions that the federal government 17 determines are necessary to ensure correct and verifiable information on the program; 18  (7) conduct studies and research in order to evaluate and monitor the 19 effectiveness of the state program; and 20  (8) adopt regulations and take action to implement, interpret, and 21 administer the provisions of this chapter. 22  Sec. 47.27.010. ELIGIBLE FAMILIES. (a) The following families may apply 23 for assistance under the Alaska family independence program: 24  (1) a single parent who has the physical custody of one or more 25 dependent children; 26  (2) a caretaker of one or more dependent children who is a relative to 27 at least the fifth degree; 28  (3) a woman in the last trimester of pregnancy; or 29  (4) a two-parent family with physical custody of one or more dependent 30 children. 31  (b) The department may limit the eligibility of two-parent families or may 01 adjust the assistance and service provided to two-parent families, taking into 02 consideration the seasonal nature of the economy and the availability of work in this 03 state. 04  Sec. 47.27.015. DISQUALIFYING CONDITIONS. (a) A family is not 05 eligible for assistance under the Alaska family independence program if the family 06 includes an adult who 07  (1) has received benefits under the Alaska family independence 08 program, or a program of another state financed by a federal block grant for the 09 Temporary Assistance for Needy Families program, for a total of 60 months as the 10 caretaker or spouse of a caretaker of a dependent child or as a pregnant woman, unless 11 disqualification would impose an unreasonable hardship on the family as determined 12 by the department in regulation; or 13  (2) is determined to be fleeing to avoid prosecution, custody, or 14 confinement after conviction, in this or another jurisdiction, for a crime that is 15 classified as a felony under AS 11 or the laws of the jurisdiction where the criminal 16 activity was committed. 17  (b) A family is not eligible for assistance under this chapter for a period of 18 up to 120 months if the adult applicant is determined to have fraudulently 19 misrepresented the applicant's residence in order to receive assistance in more than one 20 state under a program financed under a federal block grant for the Temporary 21 Assistance for Needy Families program. 22  (c) The department may determine that a family is ineligible for up to six 23 months if the family's demonstrated need for assistance is due to a refusal of or 24 voluntary separation from suitable employment by the adult applicant, or a custodial 25 parent or caretaker, without good cause. 26  Sec. 47.27.020. APPLICATION AND REQUIREMENTS FOR ASSISTANCE. 27 (a) An applicant for assistance under the Alaska family independence program shall 28 complete an application in writing, or by electronic means, and in a form specified by 29 the department. The applicant must be a pregnant woman or an individual who has 30 physical custody of the dependent child or children. The application must be complete 31 and must provide all of the information about the family and the child or children that 01 is requested by the department. The applicant shall provide all supporting 02 documentation for verification that the department determines to be necessary to 03 establish eligibility. 04  (b) On the application, each applicant shall attest to whether the family, at any 05 time, has received assistance from another state program that was established under a 06 federal block grant for Temporary Assistance for Needy Families and whether the 07 family has ever been disqualified from receiving assistance under a Temporary 08 Assistance for Needy Families program for the period for which the application has 09 been submitted. 10  (c) An applicant shall agree to cooperate with the department to establish a 11 family self-sufficiency plan and to participate in work activities if assigned by the 12 department. 13  (d) An applicant shall acknowledge the assignment of support rights as 14 required by AS 47.27.040 and shall agree to cooperate with the child support 15 enforcement agency of the Department of Revenue in establishing paternity or 16 establishing, modifying, or enforcing a child support order requiring the payment of 17 support by the noncustodial parent for any dependent child for whom Alaska family 18 independence program assistance is received. The applicant shall agree to report all 19 child support payments received directly by the family, during or for a period for 20 which the family is receiving assistance under this chapter, to the department within 21 15 days after receipt of those payments. 22  (e) An applicant shall update the information requested in the application at 23 regular intervals as established by the department in regulation. The department may 24 conduct reviews of an application and audit the information provided as necessary to 25 determine eligibility. 26  Sec. 47.27.025. FAMILY ASSISTANCE. (a) The department shall provide 27 assistance for basic living expenses to families that establish eligibility based on a 28 determination of need that considers the family's available income, assets, and other 29 resources, as established by the department in regulation. Each dependent child in the 30 family is eligible for assistance under this chapter, and assistance received as a 31 dependent child will not count against eligibility for assistance under this chapter as 01 a caretaker or spouse of a caretaker of a dependent child or as a pregnant woman. 02  (b) The amounts of assistance for basic living expenses may not exceed the 03 following: 04  (1) for a dependent child living with a nonneedy relative caretaker, 05 $452 per month, plus $102 for each additional child; 06  (2) for a dependent child living with at least one needy parent or 07 relative caretaker, $821 per month, plus $102 for each additional child; or 08  (3) for a family consisting solely of an eligible pregnant woman, $514 09 per month. 10  (c) The department shall provide additional assistance as work-related services 11 or referrals to eligible families. Work-related services and referrals may include one 12 or more of the following: 13  (1) job readiness assessments; 14  (2) employment testing and counseling; 15  (3) job readiness training; 16  (4) job referral and job search; 17  (5) education and vocational training; 18  (6) community service work assignments; 19  (7) child care assistance; 20  (8) family planning services; and 21  (9) other services to facilitate the transition to work. 22  Sec. 47.27.026. DIVERSION PAYMENTS. (a) The department may offer 23 a lump-sum diversion payment in place of ongoing assistance and services to an 24 applicant who applies for assistance under AS 47.27.020 if the applicant is job ready 25 and is determined to need only short-term financial assistance to meet critical needs 26 in order to secure employment and support for the applicant's family. The department 27 shall set standards and conditions for diversion payments by regulation. 28  (b) The department may pay diversion benefits to an applicant's family only 29 if that family appears to be eligible for benefits and to include a job ready individual 30 based on the information provided to the department in the application completed 31 under AS 47.27.020. The department may offer to an applicant with the potential to 01 participate in the diversion program a choice between 02  (1) having the Alaska family independence program application 03 processed under AS 47.27.020 and the regulations adopted by the department; or 04  (2) having the Alaska family independence program application denied 05 and applying for diversion project benefits under this section. 06  (c) The amount of the diversion payment must be sufficient to meet the 07 family's immediate needs as determined by the department and the participant. A 08 diversion payment may not exceed the amount the family would be eligible to receive 09 in the first two months of eligibility under AS 47.27.020 if the family did not elect to 10 receive a diversion payment. 11  (d) As a condition of a family receiving a diversion payment under this 12 section, the participant must sign an agreement that 13  (1) specifies the amount of the diversion payment and the needs it is 14 intended to cover; 15  (2) provides that, during the three-month period beginning with the 16 month in which the diversion payment was received, child support collected on behalf 17 of a child whose needs were considered in determining the diversion payment shall be 18 paid to the family; and 19  (3) provides that if the family reapplies for Alaska family independence 20 program assistance under AS 47.27.020 during the three months beginning with the 21 month in which the family received a diversion payment, the diversion payment shall 22 be treated as unearned income, prorated over the three-month period, and deducted 23 from any Alaska family independence program benefit the family may be eligible for 24 under the new application. 25  (e) A family that receives a diversion payment may not receive another 26 diversion payment before the 12th month following the month in which it last received 27 a diversion payment. 28  (f) To the extent that this section is inconsistent with AS 25.27.120 or 29 25.27.130, or with another provision of this chapter, this section governs. 30  Sec. 47.27.027. ASSISTANCE TO MINORS. (a) If an applicant under 31 AS 47.27.020 is not married, is under the age of 18, and has not been previously 01 emancipated under AS 09.55.590, the applicant must 02  (1) live in a home maintained by the applicant's parent, legal guardian, 03 or other adult relative, unless the applicant establishes that there is good cause, as 04 established by the department in regulation, to waive this requirement; if the 05 department waives this requirement, the applicant must live in an adult supervised, 06 supportive living environment; 07  (2) agree that assistance for basic living expenses on behalf of the 08 applicant's family may be paid to the applicant's parent, legal guardian, or other adult 09 relative, or, if applicable, to the adult head of the adult supervised, supportive living 10 environment in which the applicant resides; and 11  (3) maintain attendance in a secondary school or other equivalent 12 training program until the applicant achieves a high school diploma or the equivalent. 13  Sec. 47.27.030. FAMILY SELF-SUFFICIENCY PLAN. (a) A participant in 14 the Alaska family independence program shall cooperate with the department, or its 15 designee, to develop and sign a family self-sufficiency plan that includes 16  (1) the steps the family will take towards the self-sufficiency of the 17 family; 18  (2) the employment related services the department will provide to 19 assist the family to attain self-sufficiency; 20  (3) specific benchmarks to indicate the steps toward successful 21 completion of the family plan; 22  (4) a statement that the family may be subject to benefit reductions or 23 other sanctions if the family fails to comply with the family plan; and 24  (5) a statement that describes the necessary conditions and the steps 25 that must be taken to renegotiate the terms of the family plan. 26  (b) The family self-sufficiency plan will set a time period for the achievement 27 of self-sufficiency from assistance under the Alaska family independence program. 28 That time period may not provide for any more than a total of 60 months of assistance 29 under the Alaska family independence program. 30  (c) The department may establish in regulation the circumstances in which a 31 family may be exempt from the requirement that the family have a self-sufficiency 01 plan under this section. 02  Sec. 47.27.035. PARTICIPATION IN WORK ACTIVITIES. (a) An Alaska 03 family independence program participant shall participate in work activities upon 04 assignment by the department or its designee in order for the family to continue to 05 receive assistance or services from the department under the Alaska family 06 independence program, unless the participant is exempt from the work participation 07 requirements under one or more of the exemptions set out in (b) or (c) of this section 08 and any regulations adopted by the department. 09  (b) A parent or caretaker with a dependent child of up to 12 months of age 10 may be exempt from work participation requirements for up to 12 months, as 11 established in the family self-sufficiency plan. 12  (c) A parent or caretaker may be exempt from work participation requirements 13 in the family self-sufficiency plan if 14  (1) the parent or caretaker is providing home care for a child with a 15 developmental disability or a related, disabled person who requires 24-hour care; 16  (2) the parent or caretaker establishes an inability to participate for 17 medical reasons supported by documentation from a physician or other licensed 18 medical professional; 19  (3) the participation would impose an unreasonable hardship on the 20 family; or 21  (4) there is a dependent child in the home that has not yet attained six 22 years of age and the parent or caretaker demonstrates an inability to obtain needed 23 child care because appropriate child care is not available. 24  (d) A participant in work activities under this section is not a state employee 25 for purposes of AS 39.25 (State Personnel Act). 26  (e) A participant in work activities under this section is not considered an 27 employee of the state or other public employer for purposes of AS 23.40.070 - 28 23.40.260 (Public Employment Relations Act) nor shall any provision of a collective 29 bargaining agreement entered into under the Public Employment Relations Act be 30 construed to interfere with participation in the work activities authorized under this 31 section. 01  Sec. 47.27.040. ASSIGNMENT OF SUPPORT RIGHTS; COOPERATION 02 WITH CHILD SUPPORT ENFORCEMENT AGENCY. (a) An Alaska family 03 independence program applicant is considered to have assigned to the state, through 04 the child support enforcement agency of the Department of Revenue, all rights to 05 accrued and continuing child support, from all sources, that is due for the support of 06 any individuals in the family for whom support is sought. The assignment takes effect 07 upon a determination that the applicant's family is eligible for assistance under this 08 chapter. Except with respect to the amount of any unpaid support obligation accrued 09 under the assignment, the assignment terminates when the family ceases to be a 10 participant in the Alaska family independence program. 11  (b) An Alaska family independence program participant shall cooperate with 12 the child support enforcement agency of the Department of Revenue in establishing 13 paternity or establishing, modifying, or enforcing a child support order requiring the 14 payment of support by the noncustodial parent for a dependent child for whom Alaska 15 family independence program assistance is received unless the participant establishes 16 good cause for refusing to cooperate. 17  (c) The department may distribute to an Alaska family independence program 18 participant up to $50 per month from a monthly child support payment received by the 19 child support enforcement agency for the support of a child for whom Alaska family 20 independence program assistance is paid. 21  Sec. 47.27.045. ALIENATION AND ATTACHMENT. Assistance granted 22 under this chapter is inalienable by assignment or transfer and is exempt from 23 garnishment, levy, or execution as is provided in AS 09.38. 24  Sec. 47.27.050. GRANTS AND CONTRACTS FOR SERVICES. (a) The 25 department may contract with or award grants to qualified entities in the state to 26 administer an Alaska family independence program or a distinct part of the Alaska 27 family independence program. The department may establish standards for the 28 administration of services under the grant or contract, including fees to be charged to 29 applicants for or recipients of those services. 30  (b) Contracts authorized under this section are to be administered in 31 accordance with AS 47.05.015. Grants authorized under this section are to be awarded 01 using requirements, established in regulation, that are substantially similar to those set 02 out in AS 47.05.015 for contracts. 03  (c) This section may not be construed to expand the powers of a municipality. 04  (d) In this section, "qualified entities" means municipalities, other political 05 subdivisions of the state, nonprofit corporations formed under AS 10.20, or 06 combinations of these. 07  Sec. 47.27.055. AGENCY COLLABORATION. (a) The department shall 08 coordinate with other state agencies that provide assistance, benefits, or services to 09 applicants that are eligible for and to participants in the Alaska family independence 10 program in order to facilitate the application for and delivery of assistance, benefits, 11 or services to promote family self-sufficiency. Subject to appropriations, state agencies 12 may colocate their facilities and operations in order to improve service delivery. 13  (b) The department may provide information received under this chapter to 14 other state agencies in order to facilitate the delivery of services. Information received 15 from an applicant for or participant in the Alaska family independence program shall 16 be treated as confidential by all state agencies that share the information under this 17 section and is not open to public inspection. Misuse of public assistance lists or 18 information is punishable as provided in AS 47.05.030. 19  (c) Departments in the executive branch shall cooperate in fulfilling the 20 purposes of this chapter, including, subject to appropriations, the establishment of 21 temporary positions that will provide job opportunities for families participating in the 22 Alaska family independence program. Temporary positions established for this 23 purpose are in the exempt service under AS 39.25.110. An individual participating in 24 the Alaska family independence program who holds a temporary position established 25 for purposes of this subsection is not a public employee for purposes of 26 AS 23.40.070 - 23.40.260. 27  Sec. 47.27.060. JOB DEVELOPMENT. The department may establish 28 cooperative agreements with the Department of Labor, Department of Community and 29 Regional Affairs, Department of Education, and Department of Commerce and 30 Economic Development, and with other public or private sector organizations for the 31 purpose of developing job, training, and educational opportunities for families eligible 01 for assistance under this chapter. 02  Sec. 47.27.065. FEDERAL-STATE COOPERATION. (a) In the 03 administration of this chapter, the department shall cooperate with the secretary of the 04 United States Department of Health and Human Services and shall take actions 05 necessary to comply with the requirements of federal law to obtain public assistance 06 block grants. The department shall make reports in the form and containing the 07 information required to the secretary of the United States Department of Health and 08 Human Services. The department may cooperate with federal agencies charged with 09 the administration of the federal public assistance block grants. 10  (b) Notwithstanding any other provisions of this chapter, and if the conditions 11 in this subsection are met, the department may implement modifications to the Alaska 12 family independence program that are not directly authorized in this chapter, or that 13 may be contrary to a provision of this chapter, by providing notification to the 14 legislature and by adopting regulations. A program modification implemented under 15 this subsection is repealed two years after the date on which the modification took 16 effect unless its implementation is achieved by statutory changes. A program 17 modification under this subsection may be implemented only if 18  (1) states are authorized by the secretary of the United States 19 Department of Health and Human Services to undertake the program; 20  (2) the governor approves the implementation in writing; 21  (3) the commissioner determines that the implementation of the 22 program modification will result in the receipt of additional federal money to carry out 23 the purposes of this chapter and will produce a net monetary gain to the state; and 24  (4) the program modification will not require general fund expenditures, 25 other than the outlay of money received from the federal government for the program. 26  Sec. 47.27.075. EMERGENCY ACCOUNT ESTABLISHED. (a) There is 27 established within the general fund the Alaska family independence program 28 emergency account. The account consists of appropriations from any appropriate 29 source of money, including lapsing money that was appropriated for the Alaska family 30 independence program but was not expended or obligated in the fiscal year for which 31 it was appropriated. 01  (b) The account shall be administered by the commissioner, and shall be used 02 to provide assistance authorized under this chapter upon a determination by the 03 commissioner that the current year's appropriation is not sufficient to pay for the 04 Alaska family independence program due to an unanticipated increase in the number 05 of eligible families. Money appropriated to the account does not lapse under 06 AS 37.25.010. 07  (c) By December 15 of each year, the commissioner shall report to the 08 governor and the legislature on the use of money from the Alaska family independence 09 program emergency account during the preceding fiscal year. 10  Sec. 47.27.080. APPEALS; DISPUTE RESOLUTION. (a) An applicant or 11 participant who receives a determination from the department that denies, limits, or 12 modifies the assistance or services provided under this chapter may request a hearing 13 before the department or a representative of the department appointed for that purpose. 14 If a representative is appointed, the representative shall conduct the hearing under the 15 regulations adopted by the department. The appeal is not subject to AS 44.62.330 - 16 44.62.630. 17  (b) The department may require an applicant or participant to participate in an 18 informal dispute resolution process before a formal hearing. The department may 19 adopt regulations establishing the informal dispute resolution process. 20  Sec. 47.27.085. SANCTIONS; RECOVERY OF COSTS. (a) An Alaska 21 family independence program applicant or participant who makes a false statement or 22 misrepresentation knowing it is false, or who knowingly fails to disclose a material 23 fact, in order to obtain or increase assistance or services under this chapter is ineligible 24 to receive assistance under this chapter for a period of not less than one nor more than 25 12 months, as determined by the department, unless a disqualification set out at 26 AS 47.27.015(b) applies. An Alaska family independence program applicant or 27 participant who is determined ineligible for a third or subsequent time under this 28 subsection may be permanently disqualified from receiving assistance or services under 29 this chapter. 30  (b) An Alaska family independence program applicant or participant who, 31 without good cause, fails to comply with a condition of the family self-sufficiency plan 01 or who fails to participate in work activities required as a part of the Alaska family 02 independence program is subject to a reduction in assistance and services as 03 determined under regulations adopted by the department. 04  (c) An Alaska family independence program applicant or participant who, 05 without good cause, fails to cooperate with establishment of paternity or the 06 establishment, modification, or enforcement of a support order for a child for whom 07 assistance is received is subject to a reduction or limitation in assistance or services 08 for the term of noncooperation as required by federal law and as specified in 09 regulations adopted by the department. 10  (d) An Alaska family independence program applicant or participant who 11 receives assistance or services when not entitled to them under this chapter because 12 the information provided by the applicant or participant was inaccurate or incomplete 13 is liable to the department for the value of the assistance and services improperly 14 provided to the applicant or participant. 15  (e) In a civil action brought by the state to recover the value of assistance or 16 services improperly provided under this chapter, the state may recover costs of 17 investigation and prosecution of the civil action, including attorney fees as determined 18 under court rules. 19  Sec. 47.27.090. DEFINITIONS. In this chapter, 20  (1) "assistance for basic living expenses" means assistance provided 21 under the Alaska family independence program that may include cash, vouchers, or 22 third-party vendor payments; 23  (2) "child care assistance" means payments made by the Department 24 of Health and Social Services or the Department of Community and Regional Affairs 25 to Alaska family independence program participant families or to providers for the care 26 of children of the participant families; 27  (3) "child support" includes court-ordered or administratively ordered 28 child support, medical support, and spousal support; 29  (4) "child support enforcement agency" means the child support 30 enforcement agency in the Department of Revenue; 31  (5) "commissioner" means the commissioner of health and social 01 services; 02  (6) "department" means the Department of Health and Social Services; 03  (7) "dependent child" means an individual who 04  (A) has not attained 05  (i) 18 years of age; or 06  (ii) 19 years of age and is a full-time student in a 07 secondary school or in the equivalent level of vocational or technical 08 training; and 09  (B) is not an applicant under AS 47.27.020; 10  (8) "self-sufficiency services" means job related services, community 11 service work referrals, child care assistance, and other services determined by the 12 department in regulation to promote family self-sufficiency; and 13  (9) "work activities" includes job readiness assessments, on-the-job 14 training, education and vocational training, job sampling, job search requirements, 15 subsidized and unsubsidized work, and community work service. 16 * Sec. 3. AS 15.07.055(a) is amended to read: 17  (a) The following agencies are designated voter registration agencies: 18  (1) the Department of Public Safety, division of motor vehicles; 19  (2) divisions of the Department of Health and Social Services that 20 provide public assistance through the food stamp program, Medicaid program, Special 21 Supplemental Food Program for Women, Infants, and Children (WIC), and Alaska 22 family independence program [AID TO FAMILIES WITH DEPENDENT 23 CHILDREN (AFDC) PROGRAM]; 24  (3) the division of the Department of Community and Regional Affairs 25 that is responsible for municipal and regional assistance programs; and 26  (4) all recruitment offices of the armed forces of the United States 27 located in Alaska. 28 * Sec. 4. AS 23.10.055 is amended by adding a new paragraph to read: 29  (14) an individual engaged in activities for a nonprofit religious, 30 charitable, civic, cemetery, recreational, or educational organization where the 31 employer-employee relationship does not, in fact, exist, and where services are 01 rendered to the organization under a work activity requirement of AS 47.27 (Alaska 02 family independence program). 03 * Sec. 5. AS 25.20.050(f) is amended to read: 04  (f) If the child support enforcement agency is a party in an action in which 05 paternity is contested, the agency shall request the court to order the tests and 06 procedures described in (e) of this section. The agency may recover the costs of tests 07 as a cost of the action, except that costs may not be recovered from a person who is 08 a recipient of assistance [AID] under AS 47.27 (Alaska family independence 09 program) [AS 47.25.310 - 47.25.420 (AID TO FAMILIES WITH DEPENDENT 10 CHILDREN)]. 11 * Sec. 6. AS 25.27.040(a) is amended to read: 12  (a) The agency may appear on behalf of minor children or their mother or 13 legal custodian or the state and initiate efforts to have the paternity of children born 14 out of wedlock determined by the court. When the agency is a party to a court action 15 in which paternity is contested, it shall request and pay for genetic testing and 16 procedures under AS 25.20.050(f). The agency may recover the costs of the tests as 17 a cost of the court action, except that costs may not be recovered from a person who 18 is a recipient of assistance [AID] under AS 47.27 (Alaska family independence 19 program) [AS 47.25.310 - 47.25.420 (AID TO FAMILIES WITH DEPENDENT 20 CHILDREN)]. 21 * Sec. 7. AS 25.27.060 is amended by adding new subsections to read: 22  (e) If the child's parents are both unmarried minors who have not had the 23 disabilities of minority removed under AS 09.55.590, an order of child support issued 24 by a court or agency shall be based on the 25  (1) percentages of physical custody exercised by the child's parents; a 26 minor parent's custody of the child shall be imputed to the parents of the minor parent, 27 regardless of where the minor parent lives, except that 28  (A) if the minor parent and child live with a parent of the 29 noncustodial minor parent, the minor parent's custody of the child shall be 30 imputed to the parent of the noncustodial minor parent; and 31  (B) a minor parent's custody of a child may not be imputed to 01 the parents of the minor parent if the minor parent and child do not live with 02 a parent of the minor parent because 03  (i) neither parent will allow the minor and child to live 04 in the residence of the minor's parent; or 05  (ii) the physical or emotional health or safety of the 06 minor parent or the minor's child would be jeopardized if the minor and 07 the minor's child lived in the same residence with the minor's parent; 08 and 09  (2) incomes of the child's grandparents and parents. 10  (f) To the extent that (e) of this section applies, 11  (1) the child's grandparents are considered to have a duty to support 12 the child and are subject to statutes, regulations, and court rules relating to support of 13 the child; and 14  (2) a grandparent who is determined under applicable agency 15 regulations and court rules to be the obligor for purposes of paying child support on 16 behalf of a grandchild is subject to all statutes, regulations, and court rules applicable 17 to child support obligors. 18  (g) An order of support against a child's grandparent under (e) of this section 19 and a grandparent's duty to support a child under (f) of this section is terminated, 20 without the need for obtaining a modification of a child support order, when one of 21 the child's parents reaches the age of majority or has the disabilities of minority 22 removed under AS 09.55.590, whichever occurs earlier. However, to the extent that 23 a grandparent may have accrued arrearages, the grandparent remains an obligor subject 24 to this chapter. 25 * Sec. 8. AS 25.27.065(b) is amended to read: 26  (b) When the right to receive child support has been assigned to a 27 governmental entity, an agreement under (a) of this section that has not been adopted 28 as an administrative order of the agency is not effective during a period when the 29 obligee is receiving assistance under AS 47.07 or AS 47.27 [AS 47.25.310 - 30 47.25.420]. 31 * Sec. 9. AS 25.27.120(a) is amended to read: 01  (a) An obligor is liable to the state in the amount of assistance granted under 02 AS 47.07 and AS 47.27 [AS 47.25.310 - 47.25.420] to a child to whom the obligor 03 owes a duty of support except that, if a support order has been entered, the liability 04 of the obligor for assistance granted under AS 47.27 [AS 47.25.310 - 47.25.420] may 05 not exceed the amount of support provided for in the support order, and, if a medical 06 order of support has been entered, the liability of the obligor for assistance granted 07 under AS 47.07 may not exceed the amount of support provided for in the medical 08 order of support. 09 * Sec. 10. AS 25.27.125(b) is amended to read: 10  (b) The annual estimated balance in the account maintained by the 11 commissioner of administration under AS 37.05.142 may be used by the legislature to 12 make appropriations to the Department of Health and Social Services to carry out the 13 purposes of AS 47.10.230 - 47.10.260 and AS 47.27 [AS 47.25.310 - 47.25.420]. 14 * Sec. 11. AS 25.27.130(c) is amended to read: 15  (c) The recovery of any amount for which the obligor is liable that exceeds the 16 total assistance granted under AS 47.07 and AS 47.27 [AS 47.25.310 - 47.25.420] shall 17 be paid to the obligee. 18 * Sec. 12. AS 25.27.130(d) is amended to read: 19  (d) Except as provided in (f) of this section, if the obligee is not receiving 20 assistance under AS 47.07 or AS 47.27 [AS 47.25.310 - 47.25.420] at the time the 21 state recovers money in an action under this section, the recovery of any amount for 22 which the obligor is liable shall be distributed to the obligee for support payments, 23 including medical support payments, that have become due and unpaid since the 24 termination of assistance under AS 47.07 or AS 47.27 [AS 47.25.310 - 47.25.420] 25 under a support order in favor of the obligee. 26 * Sec. 13. AS 25.27.130(e) is amended to read: 27  (e) After payment to the obligee under (d) of this section, the state may retain 28 an amount not to exceed the total unreimbursed assistance paid on behalf of the 29 obligee under AS 47.07 or AS 47.27 [AS 47.25.310 - 47.25.420]. 30 * Sec. 14. AS 25.27.130(f) is amended to read: 31  (f) Notwithstanding (d) of this section, the state shall, if required under federal 01 law or regulations, distribute amounts recovered through offset of the obligor's federal 02 tax refund as past due support with first distribution to the state for unpaid support 03 assigned to the state under AS 47.07.025 and AS 47.27.040 [AS 47.25.345]. 04 * Sec. 15. AS 25.27.165(i) is amended to read: 05  (i) The agency may recover any costs it pays for genetic tests required by this 06 section, except that costs may not be recovered from a person who is a recipient of 07 assistance [AID] under AS 47.27 (Alaska family independence program) 08 [AS 47.25.310 - 47.25.420 (AID TO FAMILIES WITH DEPENDENT CHILDREN)]. 09 * Sec. 16. AS 25.27 is amended by adding new sections to read: 10  Sec. 25.27.244. ADVERSE ACTION AGAINST DELINQUENT OBLIGOR'S 11 OCCUPATIONAL LICENSE. (a) The agency shall compile and maintain a list of 12 obligors who are not in substantial compliance with a support order or payment 13 schedule negotiated under (g)(1) of this section. The list must include the names, 14 social security numbers, dates of birth, and last known addresses of the obligors. The 15 list shall be updated by the agency on a monthly basis. 16  (b) The agency shall, on a monthly basis, provide a copy of the list to each 17 licensing entity through a computer readable magnetic medium. A licensing entity 18 subject to this section shall implement procedures to accept and process the list. 19 Notwithstanding any other law to the contrary, a licensing entity may not issue or 20 renew a license for a person on the list except as provided in this section. 21  (c) Promptly after receiving an application from an applicant and before 22 issuing or renewing a license, a licensing entity shall determine whether the applicant 23 is on the most recent list provided by the agency. If the applicant is on the list, the 24 licensing entity shall immediately serve notice under (e) of this section of the licensing 25 entity's intent to withhold issuance or renewal of the license. The notice shall be 26 considered given when delivered personally to the applicant or deposited in the United 27 States mail addressed to the applicant's last known mailing address on file with the 28 licensing entity. 29  (d) A licensing entity shall issue a temporary license valid for a period of 150 30 days to an applicant whose name is on the list if the applicant is otherwise eligible for 31 a license. The temporary license may not be extended. Only one temporary license 01 may be issued during a regular license term and its validity shall coincide with the first 02 150 days of that license term. A license for the full or remainder of the license term 03 may be issued or renewed only upon compliance with this section. If a license or 04 application is denied under this section, money paid by the applicant or licensee shall 05 be refunded by the licensing entity after retention of the temporary license fee, if any. 06  (e) Notices for use under (c) of this section shall be developed by each 07 licensing entity under guidelines provided by the agency and are subject to approval 08 by the agency. The notice must include the address and telephone number of the 09 agency and shall emphasize the necessity of obtaining a release from the agency as a 10 condition for the issuance or renewal of a license. The notice must inform an 11 applicant whose license is governed by (d) of this section that the licensing entity shall 12 issue a temporary license for 150 calendar days under (d) of this section if the 13 applicant is otherwise eligible and that, upon expiration of that time period, the license 14 will be denied unless the licensing entity has received a release from the agency. The 15 agency shall also develop a form that the applicant may use to request a review by the 16 agency. A copy of this form shall be included with each notice sent under (c) of this 17 section. 18  (f) The agency shall establish review procedures consistent with this section 19 to allow an applicant to have the underlying arrearages and relevant defenses 20 investigated, to provide an applicant information on the process of obtaining a 21 modification of a support order, or to provide an applicant assistance in the 22 establishment of a payment schedule on arrearages if the circumstances warrant. 23  (g) If the applicant wishes to challenge being included on the list, the applicant 24 shall submit to the agency a written request for review within 30 days after receiving 25 the notice under (c) of this section by using the form developed under (e) of this 26 section. Within 30 days after receiving a written request for review, the agency shall 27 inform the applicant in writing of the agency's findings. The agency shall immediately 28 send a release to the appropriate licensing entity and the applicant if any of the 29 following conditions is met: 30  (1) the applicant is found to be in substantial compliance with each 31 support order applicable to the applicant or has negotiated an agreement with the 01 agency for a payment schedule on arrearages and is in substantial compliance with the 02 negotiated agreement; if the applicant fails to be in substantial compliance with an 03 agreement negotiated under this paragraph, the agency shall send to the appropriate 04 licensing entity a revocation of any release previously sent to the entity for that 05 applicant; 06  (2) the applicant has submitted a timely request for review to the 07 agency, but the agency will be unable to complete the review and send notice of 08 findings to the applicant in sufficient time for the applicant to file a timely request for 09 judicial relief within the 150-day period during which the applicant's temporary license 10 is valid under (d) of this section; this paragraph applies only if the delay in completing 11 the review process is not the result of the applicant's failure to act in a reasonable, 12 timely, and diligent manner upon receiving notice from the licensing entity that the 13 applicant's name is on the list; 14  (3) the applicant has, within 30 days after receiving the agency's 15 findings following a request for review under (2) of this subsection, filed and served 16 a request for judicial relief under this section, but a resolution of that relief will not 17 be made within the 150-day period of the temporary license under (d) of this section; 18 this paragraph applies only if the delay in completing the judicial relief process is not 19 the result of the applicant's failure to act in a reasonable, timely, and diligent manner 20 upon receiving the agency's notice of findings; or 21  (4) the applicant has obtained a judicial finding of substantial 22 compliance. 23  (h) An applicant is required to act with diligence in responding to notices from 24 the licensing entity and the agency with the recognition that the temporary license 25 granted under (d) of this section will lapse after 150 days and that the agency and, 26 where appropriate, the court must have time to act within that 150-day period. An 27 applicant's delay in acting, without good cause, that directly results in the inability of 28 the agency to complete a review of the applicant's request or the court to hear the 29 request for judicial relief within the required period does not constitute the diligence 30 required under this section that would justify the issuance of a release. 31  (i) Except as otherwise provided in this section, the agency may not issue a 01 release if the applicant is not in substantial compliance with the order for support or 02 is not in substantial compliance with an agreement negotiated under (g)(1) of this 03 section. The agency shall notify the applicant in writing that the applicant may request 04 any or all of the following: (1) judicial relief from the agency's decision not to issue 05 a release or the agency's decision to revoke a release under (g)(1) of this section; (2) 06 a judicial determination of substantial compliance; (3) a modification of the support 07 order. The notice must also contain the name and address of the court in which the 08 applicant may file the request for relief and inform the applicant that the applicant's 09 name shall remain on the list if the applicant does not request judicial relief within 30 10 days after receiving the notice. The applicant shall comply with all statutes and rules 11 of court implementing this section. This section does not limit an applicant's authority 12 under other law to request an order to show cause or notice of motion to modify a 13 support order or to fix a payment schedule on arrearages accruing under a support 14 order or to obtain a court finding of substantial compliance with a support order. 15  (j) A request for judicial relief from the agency's decision must state the 16 grounds on which relief is requested and the judicial action shall be limited to those 17 stated grounds. Judicial relief under this subsection is not an appeal, and shall be 18 governed by court rules adopted to implement this section. Unless otherwise provided 19 by court rule, the court shall hold an evidentiary hearing within 20 calendar days after 20 the filing of service on the opposing party. The court's decision shall be limited to a 21 determination of each of the following issues: 22  (1) whether there is a support order or a payment schedule on 23 arrearages; 24  (2) whether the petitioner is the obligor covered by the support order; 25 and 26  (3) whether the obligor is in substantial compliance with the support 27 order or payment schedule. 28  (k) If the court finds that the obligor is in substantial compliance with the 29 support order or payment schedule, the agency shall immediately send a release under 30 (g) of this section to the appropriate licensing entity and the applicant. 31  (l) When the obligor is in substantial compliance with a support order or 01 payment schedule, the agency shall mail to the applicant and the appropriate licensing 02 entity a release stating that the applicant is in substantial compliance. The receipt of 03 a release shall serve to notify the applicant and the licensing entity that, for the 04 purposes of this section, the applicant is in substantial compliance with the support 05 order or payment schedule unless the agency, under (a) of this section, certifies 06 subsequent to the issuance of a release that the applicant is once again not in 07 substantial compliance with a support order or payment schedule. 08  (m) The agency may enter into interagency agreements with the state agencies 09 that have responsibility for the administration of licensing entities as necessary to 10 implement this section to the extent that it is cost effective to implement the 11 interagency agreements. The agreements shall provide for the receipt by the other 12 state agencies and licensing entities of federal money to cover that portion of costs 13 allowable in federal law and regulation and incurred by the state agencies and licensing 14 entities in implementing this section. 15  (n) Notwithstanding any other provision of law, the licensing entities subject 16 to this section shall assess a fee for issuance of a temporary license under this section. 17 The licensing entity shall set the amount of the fee so that the fees collected under this 18 section, to the extent reasonable, cover the costs of implementing and administering 19 this section. 20  (o) The process described in (g) of this section is the sole administrative 21 remedy for contesting the issuance to the applicant of a temporary license or the denial 22 of a license under this section. The procedures specified in AS 44.62.330 - 44.62.630 23 do not apply to the denial or failure to issue or renew a license under this section. 24  (p) The agency and licensing entities, as appropriate, shall adopt regulations 25 necessary to implement this section. 26  (q) In this section, 27  (1) "applicant" means a person applying for issuance or renewal of a 28 license; 29  (2) "license" 30  (A) means, except as provided in (B) of this paragraph, a 31 license, certificate, permit, registration, or other authorization that, at the time 01 of issuance, will be valid for more than 150 days and that may be acquired 02 from a state agency to perform an occupation, including the following: 03  (i) license relating to boxing or wrestling under 04 AS 05.10; 05  (ii) authorization to perform an occupation regulated 06 under AS 08; 07  (iii) teacher certificate under AS 14.20; 08  (iv) authorization under AS 18.08 to perform emergency 09 medical services; 10  (v) asbestos worker certification under AS 18.31; 11  (vi) boiler operator's license under AS 18.60.395; 12  (vii) certificate of fitness under AS 18.62; 13  (viii) hazardous painting certification under AS 18.63; 14  (ix) security guard license under AS 18.65.400 - 15 18.65.490; 16  (x) license relating to insurance under AS 21.27; 17  (xi) employment agency permit under AS 23.15.330 - 18 23.15.520; 19  (xii) registration as a broker-dealer, agent, or investment 20 adviser under AS 45.55.030; 21  (xiii) certification as a pesticide applicator under 22 AS 46.03.320; 23  (xiv) certification as a storage tank worker or contractor 24 under AS 46.03.375; and 25  (xv) certification as a water and wastewater works 26 operator under AS 46.30; 27  (B) does not include 28  (i) a vessel license issued under AS 16.05.490 or 29 16.05.530; 30  (ii) a commercial fishing license under AS 16.05.480, 31 including a crew member fishing license; 01  (iii) an entry permit or interim-use permit issued under 02 AS 16.43; 03  (iv) a license issued under AS 47.35; 04  (v) a business license issued under AS 43.70; or 05  (vi) a driver's license issued under AS 28.15; 06  (3) "licensee" means a person holding a license or applying to renew 07 a license; 08  (4) "licensing entity" means the state agency that issues or renews a 09 license; in the case of a license issued or renewed by the Department of Commerce 10 and Economic Development after an applicant's qualifications are determined by 11 another agency, "licensing entity" means the department; 12  (5) "list" means the list of obligors compiled and maintained under (a) 13 of this section; 14  (6) "substantial compliance with a support order or payment schedule" 15 means that, with respect to a support order or a negotiated payment schedule under (g) 16 of this section, whichever is applicable, the obligor has no more than $2,500 past due 17 and has cumulatively paid an amount equal to or greater than the amount due for eight 18 months during the past 12 months; with respect to a support order or payment schedule 19 that has been in effect for less than one year, "substantial compliance" means that the 20 obligor has no more than $2,500 past due and has cumulatively paid an amount equal 21 to or greater than 67 percent of the amount due during the period the support order or 22 payment schedule has been in effect. 23  Sec. 25.27.246. ADVERSE ACTION AGAINST DELINQUENT OBLIGOR'S 24 DRIVER'S LICENSE. (a) The agency shall compile and maintain a list of obligors 25 who have a driver's license and are not in substantial compliance with a support order 26 or payment schedule negotiated under (f)(1) of this section. The list must include the 27 names, social security numbers, dates of birth, and last known addresses of the 28 obligors. The list shall be updated by the agency on a monthly basis. 29  (b) The agency shall serve notice under (d) of this section to each person on 30 the list that the person's driver's license will be suspended in 150 days, and will not 31 be reissued or renewed the next time it is applied for if the person's name is on the 01 list at the time of the subsequent application, unless the licensee receives a release 02 from the agency. The notice shall be considered given when delivered personally to 03 the obligor or deposited in the United States mail addressed to the obligor's last known 04 mailing address on file with the agency. 05  (c) If the licensee fails to obtain a release during the 150-day period following 06 notice under (b) and (d) of this section, the agency shall notify the department that the 07 licensee's driver's license should be suspended and further renewals or applications 08 should be denied until the agency sends the department a release for the licensee. 09 Upon receiving the agency's notice under this subsection, the department shall suspend 10 the licensee's driver's license and may not issue or renew a driver's license for the 11 licensee until the department receives a release to do so from the agency. If a license 12 is suspended or an application is denied under this section, money paid by the 13 applicant or licensee may not be refunded by the department. 14  (d) The notice under (b) of this section must include the address and telephone 15 number of the agency and shall emphasize the necessity of obtaining a release from 16 the agency as a condition for avoiding suspension or denial of the person's driver's 17 license. The notice must also inform the licensee that, if a license is suspended or an 18 application is denied under this section, money paid by the licensee will not be 19 refunded by the department. The agency shall also develop a form that the licensee 20 may use to request a review by the agency. A copy of this form shall be included 21 with each notice sent under (b) of this section. 22  (e) The agency shall establish review procedures consistent with this section 23 to allow a licensee to have the underlying arrearages and relevant defenses 24 investigated, to provide a licensee with information on the process of obtaining a 25 modification of a support order, or to provide a licensee with assistance in the 26 establishment of a payment schedule on arrearages if the circumstances warrant. 27  (f) If a licensee wishes to challenge being included on the list, the licensee 28 shall submit to the agency a written request for review within 30 days after the notice 29 under (b) of this section was personally delivered or postmarked by using the form 30 developed under (d) of this section. Within 30 days after receiving a written request 31 for review, the agency shall inform the licensee in writing of the agency's findings. 01 The agency shall immediately send a release to the department and the licensee if any 02 of the following conditions is met: 03  (1) the licensee is found to be in substantial compliance with each 04 support order applicable to the licensee or has negotiated an agreement with the agency 05 for a payment schedule on arrearages and is in substantial compliance with the 06 negotiated agreement; if the licensee fails to be in substantial compliance with an 07 agreement negotiated under this paragraph, the agency shall send to the department a 08 revocation of any release previously sent to the entity for that licensee; 09  (2) the licensee has submitted a timely request for review to the 10 agency, but the agency will be unable to complete the review and send notice of 11 findings to the licensee in sufficient time for the licensee to file a timely request for 12 judicial relief within the 150-day period before the licensee's license will be suspended 13 under (c) of this section; this paragraph applies only if the delay in completing the 14 review process is not the result of the licensee's failure to act in a reasonable, timely, 15 and diligent manner upon receiving notice from the agency that the licensee's driver's 16 license will be suspended in 150 days; 17  (3) the licensee has, within 30 days after receiving the agency's 18 findings following a request for review under (2) of this subsection, filed and served 19 a request for judicial relief under this section, but a resolution of that relief will not 20 be made within the 150-day period before license suspension under (c) of this section; 21 this paragraph applies only if the delay in completing the judicial relief process is not 22 the result of the licensee's failure to act in a reasonable, timely, and diligent manner 23 upon receiving the agency's notice of findings; or 24  (4) the licensee has obtained a judicial finding of substantial 25 compliance. 26  (g) A licensee is required to act with diligence in responding to notices from 27 the agency with the recognition that the person's driver's license will be suspended 28 after 150 days or that a subsequent license will not be issued and that the agency and, 29 where appropriate, the court must have time to act within that 150-day period or before 30 the subsequent license is needed, as applicable. A licensee's delay in acting, without 31 good cause, that directly results in the inability of the agency to complete a review of 01 the licensee's request or the court to hear the request for judicial relief within the 02 required period does not constitute the diligence required under this section that would 03 justify the issuance of a release. 04  (h) Except as otherwise provided in this section, the agency may not issue a 05 release if the applicant is not in substantial compliance with the order for support or 06 is not in substantial compliance with an agreement negotiated under (f)(1) of this 07 section. The agency shall notify the licensee in writing that the licensee may request 08 any or all of the following: (1) judicial relief from the agency's decision not to issue 09 a release or the agency's decision to revoke a release under (f)(1) of this section; (2) 10 a judicial determination of substantial compliance; (3) a modification of the support 11 order. The notice must also contain the name and address of the court in which the 12 licensee may file the request for relief and inform the licensee that the licensee's name 13 shall remain on the list if the licensee does not request judicial relief within 30 days 14 after receiving the notice. The licensee shall comply with all statutes and rules of 15 court implementing this section. This section does not limit a licensee's authority 16 under other law to request an order to show cause or notice of motion to modify a 17 support order or to fix a payment schedule on arrearages accruing under a support 18 order or to obtain a court finding of substantial compliance with a support order. 19  (i) A request for judicial relief from the agency's decision must state the 20 grounds on which relief is requested and the judicial action shall be limited to those 21 stated grounds. Judicial relief under this subsection is not an appeal and shall be 22 governed by court rules adopted to implement this section. Unless otherwise provided 23 by court rule, the court shall hold an evidentiary hearing within 20 calendar days after 24 the filing of service on the opposing party. The court's decision shall be limited to a 25 determination of each of the following issues: 26  (1) whether there is a support order or a payment schedule on 27 arrearages; 28  (2) whether the petitioner is the obligor covered by the support order; 29 and 30  (3) whether the obligor is in substantial compliance with the support 31 order or payment schedule. 01  (j) If the court finds that the obligor is in substantial compliance with the 02 support order or payment schedule, the agency shall immediately send a release under 03 (f) of this section to the department and the licensee. 04  (k) When the obligor is in substantial compliance with a support order or 05 payment schedule, the agency shall mail to the applicant and the department a release 06 stating that the licensee is in substantial compliance. The receipt of a release shall 07 serve to notify the licensee and the department that, for the purposes of this section, 08 the applicant is in substantial compliance with the support order or payment schedule 09 unless the agency, under (a) of this section, certifies subsequent to the issuance of a 10 release that the licensee is once again not in substantial compliance with a support 11 order or payment schedule. 12  (l) The process described in (f) of this section is the sole administrative 13 remedy for contesting the suspension or the denial of a driver's license under this 14 section. The procedures specified in AS 28 or AS 44.62.330 - 44.62.630 do not apply 15 to the suspension or failure to issue or renew a license under this section. 16  (m) The agency and department, as appropriate, shall adopt regulations 17 necessary to implement this section. 18  (n) In this section, 19  (1) "department" means the Department of Public Safety; 20  (2) "driver's license" or "license" means a driver's license, as defined 21 in AS 28.40.100; 22  (3) "licensee" means a person holding or requesting a driver's license; 23  (4) "list" means the list of obligors compiled and maintained under (a) 24 of this section; 25  (5) "substantial compliance with a support order or payment schedule" 26 means that, with respect to a support order or a negotiated payment schedule under (f) 27 of this section, whichever is applicable, the obligor has no more than $2,500 past due 28 and has cumulatively paid an amount equal to or greater than the amount due for eight 29 months during the past 12 months; with respect to a support order or payment schedule 30 that has been in effect for less than one year, "substantial compliance" means that the 31 obligor has no more than $2,500 past due and has cumulatively paid an amount equal 01 to or greater than 67 percent of the amount due during the period the support order or 02 payment schedule has been in effect. 03 * Sec. 17. AS 36.30.850(b)(11) is amended to read: 04  (11) agreements with providers of services under AS 44.47.250; 05 AS 47.07; AS 47.08; AS 47.10; AS 47.17; AS 47.24; AS 47.25.130(b); and AS 47.27 06 [AS 47.25.195 AND 47.25.310]; 07 * Sec. 18. AS 39.25.110 is amended by adding a new paragraph to read: 08  (31) a participant in the Alaska family independence program under 09 AS 47.27 who holds a temporary position with the state in order to obtain job training 10 or experience. 11 * Sec. 19. AS 44.19.626(a) is amended to read: 12  (a) As the lead state planning and coordinating entity, the Alaska Human 13 Resource Investment Council has responsibility, to the extent authorized by federal and 14 state law, for planning and coordinating federal, state, and local efforts in human 15 resource programs in this state related to employment training, including the work 16 activities of the Alaska family independence program under AS 47.27. 17 * Sec. 20. AS 44.29.020(a) is amended to read: 18  (a) The Department of Health and Social Services shall administer the state 19 programs of public health and social services, including 20  (1) maternal and child health services; 21  (2) preventive medical services; 22  (3) public health nursing services; 23  (4) nutrition services; 24  (5) health education; 25  (6) laboratories; 26  (7) mental health treatment and diagnosis; 27  (8) management of state institutions, except for adult penal institutions; 28  (9) medical facilities; 29  (10) adult public assistance; 30  (11)  Alaska family independence program [AID TO FAMILIES 31 WITH DEPENDENT CHILDREN]; 01  (12) child welfare services; 02  (13) general relief; and 03  (14) licensing and supervision of child care facilities. 04 * Sec. 21. AS 44.47.280 is amended to read: 05  Sec. 44.47.280. ELIGIBILITY OF FAMILIES FOR BENEFITS. The 06 department shall determine the eligibility of families for day care benefits on the basis 07 of the following factors: 08  (1) [NET] income of the family, including salary, alimony, child 09 support, retirement benefits, social security, and any other source of income; 10  (2) number of children in the family; 11  (3) whether there is one parent or guardian solely responsible for the 12 care of the family; 13  (4) [REPEALED 14  (5)] other factors found relevant by the department. 15 * Sec. 22. AS 47.05.010(1) is amended to read: 16  (1) administer adult public assistance, the Alaska family independence 17 program [AID TO FAMILIES WITH DEPENDENT CHILDREN], and all other 18 assistance programs, and receive and spend money [FUNDS] made available to it; 19 * Sec. 23. AS 47.05.010(2) is amended to read: 20  (2) adopt regulations necessary for the conduct of its business and for 21 carrying out federal and state laws granting adult public assistance, temporary 22 assistance for needy families under the Alaska family independence program [AID 23 TO FAMILIES WITH DEPENDENT CHILDREN], and other assistance; 24 * Sec. 24. AS 47.05.010(5) is amended to read: 25  (5) cooperate with the federal government in matters of mutual concern 26 pertaining to adult public assistance, the Alaska family independence program [AID 27 TO FAMILIES WITH DEPENDENT CHILDREN], and other forms of public 28 assistance; 29 * Sec. 25. AS 47.05.030 is amended to read: 30  Sec. 47.05.030. MISUSE OF PUBLIC ASSISTANCE LISTS AND 31 RECORDS. Except for purposes directly connected with the administration of general 01 assistance, adult public assistance, the day care assistance program authorized under 02 AS 44.47.250 - 44.47.310, or the Alaska family independence program [AID TO 03 FAMILIES WITH DEPENDENT CHILDREN], and in accordance with the regulations 04 of the department, a person may not solicit, disclose, receive, make use of, or 05 authorize, knowingly permit, participate in, or acquiesce in the use of, a list of or 06 names of, or information concerning, persons applying for or receiving the assistance 07 directly or indirectly derived from the records, papers, files, or communications of the 08 department or subdivisions or agencies of the department, or acquired in the course of 09 the performance of official duties. 10 * Sec. 26. AS 47.05.080(a) is amended to read: 11  (a) Benefit overpayments collected by the department in administering 12 programs under AS 47.25.120 - 47.25.300 (general relief), [AS 47.25.310 - 47.25.420 13 (AID TO FAMILIES WITH DEPENDENT CHILDREN),] AS 47.25.430 - 47.25.615 14 (adult public assistance), [AND] AS 47.25.975 - 47.25.990 (food stamps), and 15 AS 47.27 (Alaska family independence program) shall be remitted to the Department 16 of Revenue under AS 37.10.050(a). 17 * Sec. 27. AS 47.07.020(b)(1) is amended to read: 18  (1) persons eligible for but not receiving assistance under any plan of 19 the state approved under 42 U.S.C. 601 - 615 (Title IV-A, Social Security Act, 20 Temporary Assistance for Needy Families), [AID TO FAMILIES WITH 21 DEPENDENT CHILDREN) OR] 42 U.S.C. 1381 - 1383c (Title XVI, Social Security 22 Act, Supplemental Security Income), or a federal program designated as the 23 successor to the aid to families with dependent children program; 24 * Sec. 28. AS 47.07.020(b)(7) is amended to read: 25  (7) persons under age 21 who are receiving active treatment in a 26 psychiatric hospital and who are financially eligible as determined by the standards of 27 42 U.S.C. 601 - 615 (Title IV-A, Social Security Act, Temporary Assistance for 28 Needy Families) or a federal program designated as the successor to the aid to 29 families with dependent children program [AID TO FAMILIES WITH 30 DEPENDENT CHILDREN)]; 31 * Sec. 29. AS 47.07.035(26) is amended to read: 01  (26) individuals under age 21 who are not eligible for benefits under 02 the federal Temporary Assistance for Needy Families [AID TO FAMILIES WITH 03 DEPENDENT CHILDREN] program, or a federal program designated as the 04 successor to the aid to families with dependent children program, because they are 05 not deprived of one or more of their natural or adoptive parents; 06 * Sec. 30. AS 47.25.130(b) is amended to read: 07  (b) The department may enter into contracts or [COMPETITIVELY 08 AWARDED] group service agreements with providers or municipalities, and may 09 require needy persons under AS 47.25.120 - 47.25.300 to obtain services from these 10 designated providers.  The department may establish by regulation program 11 standards designed to meet local circumstances for services provided under 12 contracts or group service agreements entered into under this subsection. 13 * Sec. 31. AS 47.25.310, 47.25.320, 47.25.330, 47.25.340, 47.25.345, 47.25.350, 47.25.360, 14 47.25.365, 47.25.370, 47.25.380, 47.25.395, 47.25.400, 47.25.410, 47.25.420, 47.25.421, 15 47.25.423, 47.25.425, 47.25.427, and 47.25.429 are repealed. 16 * Sec. 32. COURT RULE CHANGE. (a) AS 25.27.060(e) - (g), added by sec. 7 of this 17 Act, have the effect of amending Alaska Rule of Civil Procedure 90.3 by requiring 18 consideration of the income of the grandparents of a child when determining a child support 19 obligation under certain circumstances and by providing that a child's grandparents are 20 obligated to support the child under certain circumstances. 21 (b) Under art. IV, sec. 15, Constitution of the State of Alaska, AS 25.27.060(e) - (g), 22 added by sec. 7 of this Act, and this section may become law with the affirmative vote of a 23 majority of the membership of each house because the court rule being amended is not a rule 24 governing practice or procedure. 25 * Sec. 33. REPORT. (a) In furtherance of the public policy of increasing child support 26 enforcement and collections, on or before January 1, 1999, the child support enforcement 27 agency shall make a report to the governor based on data collected by the licensing entities 28 and the agency in a format prescribed by the agency. The report must contain 29 (1) the number of delinquent obligors on the lists maintained by the agency 30 under AS 25.27.244 - 25.27.246, enacted by sec. 16 of this Act; 31 (2) the number of delinquent obligors who also were applicants or licensees 01 subject to AS 25.27.244 - 25.27.246, enacted by sec. 16 of this Act; 02 (3) the number of new licenses and renewals that were delayed or denied and 03 temporary licenses issued subject to AS 25.27.244 and the number of new licenses and 04 renewals granted following receipt by licensing entities of releases under AS 25.27.244 by 05 July 1, 1998; 06 (4) the number of licenses under AS 28.15 that were suspended under 07 AS 25.27.246 and the number of licenses under AS 28.15 that were reinstated following 08 receipt by the Department of Public Safety of releases under AS 25.27.246 by July 1, 1998; 09 and 10 (5) the costs incurred in the implementation and enforcement of AS 25.27.244 11 - 25.27.246, enacted by sec. 16 of this Act. 12 (b) A licensing entity receiving an inquiry from the agency under (a) of this section 13 shall cooperate with the agency. When queried as to the licensed status of an applicant who 14 has had a license denied or suspended under AS 25.27.244 or 25.27.246 or has been granted 15 a temporary license under AS 25.27.244, the licensing entity shall respond only that the 16 license was denied or suspended or that the temporary license was issued. 17 * Sec. 34. WAIVER OF AID TO FAMILIES WITH DEPENDENT CHILDREN 18 PROGRAM REQUIREMENTS. (a) If the federal aid to families with dependent children 19 program has not been repealed by October 1, 1996, the Department of Health and Social 20 Services may implement changes to the aid to families with dependent children program, 21 notwithstanding the provisions of AS 47.25.310 - 47.25.429, that are consistent with the 22 Alaska family independence program, established in sec. 2 of this Act, by operating waiver 23 projects with the approval of the federal government. All waiver projects must be within the 24 scope of the program set out at sec. 2 of this Act and must be designed to promote family 25 self-sufficiency. 26 (b) If the federal aid to families with dependent children program has not been 27 repealed by October 1, 1996, the Department of Health and Social Services shall report to the 28 governor its recommendation for changes in its statutory authority that are needed to address 29 conflicting legal authority to operate the waiver projects. 30 * Sec. 35. COOPERATION. State agencies designated by the governor shall cooperate 31 with the Department of Health and Social Services to the extent necessary to implement 01 waivers under sec. 34 of this Act. 02 * Sec. 36. IMMUNITY FROM LIABILITY. (a) The Department of Health and Social 03 Services, and its employees, agents, and grantees, are not liable for civil damages as a result 04 of an act or omission in the implementation, operation, or administration of an authorized 05 waiver project under sec. 34 of this Act. 06 (b) The provisions of (a) of this section do not preclude liability for civil damages as 07 a result of recklessness or intentional misconduct. 08 (c) The provisions of (b) of this section do not constitute a waiver or limitation of 09 sovereign or other immunity. 10 * Sec. 37. REGULATIONS FOR WAIVER PROGRAMS. The Department of Health and 11 Social Services may adopt regulations necessary to implement sec. 34 of this Act. The 12 regulations adopted by the department may include 13 (1) eligibility criteria for waiver projects that differ from eligibility 14 requirements in AS 47.25.310 - 47.25.429 and the regulations adopted under those statutes; 15 (2) exemptions from requiring participation in the projects because of 16 exceptional circumstances; 17 (3) provisions for financial or nonfinancial sanctions for applicants who fail 18 to cooperate with project requirements or a provision of a plan; and 19 (4) additional program standards and procedures to implement or interpret sec. 20 2 of this Act in order to promote family self-sufficiency. 21 * Sec. 38. TRANSITION. (a) The Department of Health and Social Services, the 22 Department of Revenue, child support enforcement agency, and any department that issues a 23 license affected by sec. 16 of this Act may proceed to adopt regulations necessary to 24 implement this Act. Regulations to implement a provision of this Act take effect under 25 AS 44.62 (Administrative Procedure Act), but not before the effective date of the relevant 26 provision of this Act. 27 (b) Regulations adopted by the Department of Health and Social Services under the 28 authority of AS 47.25.310 - 47.25.420 before the effective date of secs. 2 and 37 of this Act 29 remain in effect, and may be implemented and enforced to the extent that the regulations are 30 not inconsistent with AS 47.27, until the department has made regulation changes under 31 AS 44.62 (Administrative Procedure Act) to conform to this Act. 01 (c) An application for assistance filed under AS 47.25 remains effective as an 02 application for the Alaska family independence program following the effective dates of 03 secs. 2 and 37 of this Act and until the Department of Health and Social Services requires a 04 new application with the development of the family self-sufficiency plan; new applications 05 shall be required no later than one year following the effective date of sec. 2 of this Act. 06 (d) Litigation, hearings, investigations, collection actions, and other proceedings 07 pending under a law amended or repealed by this Act continue in effect and may be 08 completed by the Department of Health and Social Services notwithstanding the repeal or 09 amendment under the Act. 10 * Sec. 39. Section 38(a) of this Act takes effect immediately under AS 01.10.070(c). 11 * Sec. 40. Sections 1 - 6, 8 - 15, and 17 - 31 of this Act take effect October 1, 1996, 12 except that if the federal law providing for the aid to families with dependent children 13 program has not been repealed by that date, those sections take effect on the first day after 14 October 1, 1996, that the repeal of the federal aid to families with dependent children program 15 is effective. The commissioner of health and social services shall notify the revisor of statutes 16 and the lieutenant governor of the effective date of the repeal of the federal law providing for 17 the aid to families with dependent children program. 18 * Sec. 41. Sections 7, 16, 32 - 37, and 38(b) - (d) of this Act take effect October 1, 1996.