SB 309: "An Act relating to the program of aid to families with dependent children; and providing for an effective date."
00SENATE BILL NO. 309 01 "An Act relating to the program of aid to families with dependent children; and 02 providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 23.20.100 is amended by adding a new subsection to read: 05 (b) The department shall assign at least two full-time employees whose duties 06 are to assist persons with job search and job placement activities to be physically 07 present during working hours at each location in the state where an application may 08 be submitted for assistance under AS 47.25.310 - 47.25.420 (aid to families with 09 dependent children). 10 * Sec. 2. AS 43.20 is amended by adding a new section to read: 11 Sec. 43.20.023. CREDIT FOR TAXPAYER EMPLOYING PUBLIC 12 ASSISTANCE RECIPIENT. (a) Subject to (c) of this section, a taxpayer engaged in 13 a trade or business is entitled to a credit against the taxpayer's tax liability under this 14 chapter of 35 percent of the following expenses incurred by the taxpayer to employ a
01 person qualified under (b) of this section. The expenses on which the credit is based 02 are 03 (1) the training expenses incurred by the taxpayer for the person's on-the-job training; and 04 (2) the wages, as that term is defined by AS 23.20.530, paid by the 05 taxpayer to the person. 06 (b) The taxpayer is entitled to the credit authorized by this section if the 07 person whom the taxpayer employs was, at the time the person began on-the-job 08 training for the taxpayer or at the time of the beginning of the person's employment 09 by the taxpayer, 10 (1) a resident of the state; and 11 (2) a recipient of public assistance under AS 47.25.310 - 47.25.420 (aid 12 to families with dependent children). 13 (c) A taxpayer is not entitled to a credit under this section of the expenses 14 allowed under (a) of this section that are incurred by the taxpayer until after the 15 taxpayer claiming the credit has retained the person in the taxpayer's employment for 16 at least 52 weeks. After the person has been in the taxpayer's employment for at least 17 52 weeks, the taxpayer may claim the expenses allowed under (a) of this section that 18 were incurred during the 52-week period to the extent that the expenses were incurred 19 during the year for which the taxpayer's return is filed. The credit under this section 20 is available for each year during which the qualifying person continues to be employed 21 by the taxpayer. 22 (d) The amount of a credit under this section may not 23 (1) be claimed as a credit under another provision of this title; 24 (2) also be allowed as a deduction under 26 U.S.C. 170 against the tax 25 imposed by this chapter; or 26 (3) exceed $150,000 a year per taxpayer. 27 * Sec. 3. AS 47.25.320(a) is amended to read: 28 (a) The department shall determine the amount of assistance for a dependent 29 child, and the relative with whom the dependent child is living, with regard to the 30 resources and necessary expenditures of the family and the condition existing in each 31 case. Assistance is sufficient if, when added to all other income and support available
01 to the child, the child and relative have reasonable subsistence compatible with 02 decency and health. However, the amount of assistance may not exceed the following: 03 (1) dependent child living with nonneedy relative: $451 [FOR A 04 DEPENDENT CHILD WHO IS LIVING IN THE HOME OF A NONNEEDY 05 RELATIVE, $452], plus $87 [$102] for each additional child; 06 (2) dependent child living with parent: 07 (A) for a parent and one dependent child, a maximum of $767 08 [$821]; 09 (B) for each additional dependent child, or for a second parent, 10 $87 [$102] a month per individual; 11 (3) pregnant woman who is otherwise eligible for assistance under this 12 section [, OR A SINGLE-PERSON HOUSEHOLD THAT DOES NOT CONSIST OF 13 A DEPENDENT CHILD]: $437 [$514] a month. 14 * Sec. 4. WAIVER APPLICATION. In a timely and efficient manner, the Department of 15 Health and Social Services shall seek appropriate waivers from the federal government to 16 implement the AFDC demonstration project described in secs. 4 - 11 of this Act. The purpose 17 of the project is to promote personal responsibility and self-sufficiency. If the federal 18 government approves only part of the project, the department shall implement that part. 19 * Sec. 5. JOB SEARCH PROGRAM. (a) A person who applies for AFDC assistance in 20 the project area shall be interviewed by the department at the time of application to determine 21 if this section is applicable to the assistance unit for which assistance is sought. If the 22 department determines that this section is applicable, the department shall postpone processing 23 the person's application for 30 days while persons in the assistance unit participate in the job 24 search program required under this section. If the department determines that this section is 25 not applicable to anyone in the assistance unit, the department shall process the person's 26 application under normal procedures. 27 (b) This section is applicable to each person in the assistance unit who is a parent or 28 legal guardian eligible for AFDC assistance unless the person 29 (1) has a dependent child who is less than one year of age; 30 (2) is ill or incapacitated; 31 (3) is needed at home to care for an ill or incapacitated spouse or child; or
01 (4) is in immediate need of assistance because of lack of money to pay for 02 basic necessities, receipt of an eviction notice for failure to pay rent, or homelessness. 03 (c) A person to whom this section applies shall immediately begin participation in a 04 program of organized job search under which the Department of Labor shall 05 (1) counsel the person concerning the requirements and intent of the job search 06 program; 07 (2) attempt to provide motivation to the person to obtain self-sufficient 08 employment; 09 (3) inform the person of the negative effects of dependency on the individual 10 and the community; 11 (4) provide training in job search and interview skills as well as other job 12 search counseling determined to be necessary for the person; 13 (5) provide a telephone for the person to use for job search activities; and 14 (6) provide close supervision of and assistance for the person's job search 15 efforts. 16 (d) The department shall pay the costs of transportation and child care that the 17 department determines are necessary for a person's participation in the job search program. 18 (e) A person to whom this section applies shall participate in an organized job search 19 under (c) of this section for at least 30 hours a week for the 30 days following the date of 20 application for AFDC assistance or until obtaining paid employment, whichever is the shorter 21 time period. 22 (f) After each person in the assistance unit to whom this section applies either 23 completes the 30 days of job search required under this section or obtains paid employment, 24 the department shall begin normal processing of the assistance unit's application for AFDC 25 assistance if it appears that the assistance unit is still eligible for AFDC assistance. If a 26 person fails to participate in job search activities as required under this section, the assistance 27 unit's AFDC grant shall be computed without consideration of the needs of the person; 28 however, when computing the assistance unit's AFDC grant, the income and resources of the 29 person shall still be considered. 30 * Sec. 6. EARNED INCOME DISREGARD; "100-HOUR RULE"; AUTO ALLOWANCE. 31 When determining the AFDC eligibility of an assistance unit in the project area, the
01 department shall 02 (1) disregard, for 24 months after the date of the assistance unit's application 03 for AFDC assistance, $200 plus one-third of the remainder of the earned income of each 04 person in the assistance unit unless federal regulations require that more earned income of a 05 person must be disregarded; 06 (2) waive the requirement that, for purposes of assistance for a dependent child 07 of unemployed parents, the principal wage earning parent must be employed less than 100 08 hours a month; and 09 (3) allow the exclusion of the first $7,500 of the combined equity of motor 10 vehicles used by the assistance unit for basic family transportation, transportation of a disabled 11 child in the household, or transportation of a member of the assistance unit to or from 12 employment, training, or participation in an activity required under sec. 5 or 7 of this Act; if 13 the combined equity of vehicles described in this paragraph exceeds $7,500, the department 14 shall apply the excess equity amount toward the asset limit otherwise applicable to the 15 assistance unit. 16 * Sec. 7. WORKFARE. (a) Each member of an assistance unit in the project area who is 17 18 years of age or older shall participate for 21 hours a week in an uncompensated activity 18 approved by the department. The department shall penalize the assistance unit for failure of 19 a person to comply with this subsection by computing the unit's AFDC grant without 20 consideration of the person's needs; however, when computing the unit's AFDC grant, the 21 income and resources of the person shall still be considered. 22 (b) The requirement to participate in an uncompensated activity under (a) of this 23 section does not apply to a person who 24 (1) has paid employment of at least 15 hours a week; a person who has paid 25 employment of less than 15 hours a week shall participate in an uncompensated activity 26 approved under (a) of this section for the number of hours that, when added to the hours of 27 paid employment, equals 21; 28 (2) is participating in an activity under sec. 5 of this Act or AS 47.25.421 - 29 47.25.429 (JOBS program); 30 (3) is participating in an activity under a program operated by an Indian or 31 Native organization under 42 U.S.C. 682(i) unless the Indian or Native organization agrees
01 to the person's inclusion in the project; 02 (4) is exempt from participating in an activity under AS 47.25.421 - 47.25.429 03 (JOBS program); or 04 (5) is determined, according to regulations of the department, to be physically 05 or mentally unable to perform any reasonable activity that may be approved under this section. 06 (c) Notwithstanding (a) of this section, the department may not require a person to 07 participate in an uncompensated activity under (a) of this section unless the department agrees 08 to pay for costs of child care and transportation determined by the department to be necessary 09 for the person's participation. 10 * Sec. 8. TERMINATION OF ASSISTANCE. (a) An assistance unit in the project area 11 may not receive AFDC assistance for 36 months after receiving AFDC assistance under the 12 project for 24 months. 13 (b) Termination of AFDC assistance under this section may not be construed to 14 terminate other assistance for which the assistance unit is otherwise eligible, such as medical 15 assistance under AS 47.07 and food stamps. 16 (c) The department may exempt from (a) of this section an assistance unit in which 17 (1) one or more adult recipients is determined by the department to be 18 unemployable; or 19 (2) extreme hardship, as determined by the department, would result from 20 termination of AFDC assistance. 21 * Sec. 9. PROJECT AREA. The department shall determine the area in which the project 22 will be implemented by choosing four municipalities as follows: 23 (1) the municipality that had the highest number of households receiving 24 AFDC in fiscal year 1992; 25 (2) a home rule city with a population of at least 15,000, as determined by the 26 Department of Community and Regional Affairs; 27 (3) the municipality having the highest number of persons employed or self-employed in jobs relating to 28 agriculture that is contiguous to the municipality determined 29 under (1) of this section; and 30 (4) a municipality in an area not connected by road to the Anchorage-Fairbanks 31 road system that has a substantial number of persons employed or self-employed in jobs
01 relating to fishing. 02 * Sec. 10. COOPERATION. State agencies shall cooperate with the department to the 03 extent necessary to implement secs. 4 - 11 of this Act. 04 * Sec. 11. DEFINITIONS. In secs. 4 - 11 of this Act, 05 (1) "AFDC" means the program of aid to families with dependent children 06 under AS 47.25.310 - 47.25.420; 07 (2) "department" means the Department of Health and Social Services; 08 (3) "project" means the department's implementation of the job search 09 requirements of sec. 5 of this Act, the eligibility modifications of sec. 6 of this Act, the work 10 requirements of sec. 7 of this Act, and the termination provisions of sec. 8 of this Act, to the 11 extent that the federal government approves those modifications, requirements, and termination 12 provisions; 13 (4) "project area" means the area established by the department under sec. 9 14 of this Act. 15 * Sec. 12. VOLUNTARY JOB SEARCH PROGRAM. Notwithstanding sec. 17 of this 16 Act, the Department of Health and Social Services and the Department of Labor shall 17 implement the job search program described in sec. 5 of this Act in the project area described 18 in sec. 9 of this Act, beginning July 1, 1994, except that until a waiver is approved by the 19 federal government that allows the job search requirements of sec. 5 of this Act to be 20 mandatory, the job search requirements of sec. 5 of this Act shall apply only to persons in the 21 project area who voluntarily choose to be subject to sec. 5 of this Act. The Department of 22 Health and Social Services shall explain to each AFDC applicant in the project area the 23 existence of the choice offered under this section and the potential consequences of choosing 24 to be governed by sec. 5 of this Act. A person's decision to be governed by sec. 5 of this Act 25 shall be documented in writing. 26 * Sec. 13. Sections 4 - 12 of this Act are repealed June 30, 1999. 27 * Sec. 14. Section 2 of this Act takes effect January 1, 1995, and applies to persons 28 employed and expenses incurred after December 31, 1994, for which the credit allowed under 29 sec. 2 may be claimed. 30 * Sec. 15. Section 3 of this Act takes effect July 1, 1994. 31 * Sec. 16. Sections 1, 4, and 12 of this Act take effect immediately under AS 01.10.070(c).
01 * Sec. 17. Except as provided in secs. 14 - 16 of this Act, this Act takes effect upon 02 approval of the waivers applied for under sec. 4 of this Act. The commissioner of health and 03 social services shall promptly notify the revisor of statutes of the date and extent of the 04 approval received for waivers applied for under sec. 4 of this Act.