HB 14: "An Act relating to the establishment of small businesses by recipients of aid to families with dependent children under a waiver approved by the federal government; and providing for an effective date."
00HOUSE BILL NO. 14 01 "An Act relating to the establishment of small businesses by recipients of aid to 02 families with dependent children under a waiver approved by the federal 03 government; and providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 47.25 is amended by adding a new section to read: 06 Sec. 47.25.325. SELF-EMPLOYMENT PROGRAM. (a) Notwithstanding 07 other provisions of AS 47.25.310 - 47.25.420, a recipient of assistance may accumulate 08 resources as specified in this section in order to acquire business skills through 09 establishment and operation of a microenterprise for the purpose of reducing the level 10 of assistance needed by the recipient. Upon request of a recipient who wishes to 11 establish a microenterprise under this section, the department shall provide for a 12 nonprofit business development organization to assess the 13 (1) recipient's capacity for self-employment; 14 (2) economic viability of the microenterprise contemplated by the
01 recipient. 02 (b) For the first two years after the establishment of a microenterprise, the 03 calculation of 04 (1) resources for purposes of determining the eligibility for assistance 05 of the recipient who established the microenterprise may include only the portion of 06 the recipient's microenterprise assets valuation that exceeds $10,000; and 07 (2) income derived from a recipient's microenterprise for purposes of 08 determining the recipient's eligibility for assistance may include only net business 09 income. 10 (c) A recipient with a microenterprise shall, on an annual basis, provide to the 11 department, a review of the records of the business by an accountant or bookkeeper. 12 The nonprofit business development organization that conducts the assessments under 13 (a) of this section shall verify the annual review of records provided under this 14 subsection. The cost of the record review shall be considered a business expense. 15 (d) In this section, 16 (1) "business income" means all income derived from the use of 17 microenterprise assets in a microenterprise; 18 (2) "employees" means the operator of a microenterprise and any 19 persons employed in the operation of the business; 20 (3) "microenterprise" means a business enterprise that has fewer than 21 five employees; 22 (4) "microenterprise assets" means all of the following: 23 (A) business loans; 24 (B) capital equipment; 25 (C) inventory; and 26 (D) all other assets required for the operation of the 27 microenterprise; 28 (5) "net business income" means all business income minus all of the 29 following: 30 (A) business loan payments; 31 (B) business taxes;
01 (C) expenditures for vehicles vital to the business operations; 02 (D) cash retained in the microenterprise; 03 (E) insurance expenditures; 04 (F) inventory raw material expenses; 05 (G) transportation expenditures; 06 (H) office supplies; 07 (I) professional services, including accounting, legal, or other 08 consulting services; 09 (J) delivery charges and supplies; 10 (K) commissions, salaries, wages, and other employment 11 benefits, including dental and vision care; 12 (L) postage; 13 (M) rent; 14 (N) utilities; 15 (O) telephone expenses; 16 (P) advertising and other marketing and promotion costs; and 17 (Q) training and professional development. 18 * Sec. 2. WAIVER APPLICATION. The Department of Health and Social Services shall 19 seek appropriate waivers and approval from the federal government to implement sec. 1 of this 20 Act. 21 * Sec. 3. Section 2 of this Act takes effect immediately under AS 01.10.070(c). 22 * Sec. 4. Section 1 of this Act takes effect on the effective date of the federal 23 government's approval of an application made under sec. 2 of this Act. The commissioner 24 of health and social services shall notify the revisor of statutes and the lieutenant governor of 25 the effective date of the approval.