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SB 98: "An Act making changes related to the aid to families with dependent children program, the Medicaid program, the general relief assistance program, and the adult public assistance program; directing the Department of Health and Social Services to apply to the federal government for waivers to implement the changes where necessary; relating to eligibility for permanent fund dividends of certain individuals who receive state assistance, to notice requirements applicable to the dividend program; and providing for an effective date."

00SENATE BILL NO. 98 01 "An Act making changes related to the aid to families with dependent children 02 program, the Medicaid program, the general relief assistance program, and the 03 adult public assistance program; directing the Department of Health and Social 04 Services to apply to the federal government for waivers to implement the changes 05 where necessary; relating to eligibility for permanent fund dividends of certain 06 individuals who receive state assistance, to notice requirements applicable to the 07 dividend program; and providing for an effective date." 08 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 09 * Section 1. SHORT TITLE. This Act may be known as "The Personal Responsibility Act 10 of 1995." 11 * Sec. 2. AS 43.23.005 is amended by adding a new subsection to read: 12  (g) Notwithstanding the provisions of (a) - (c) of this section, an individual is 13 not eligible for a permanent fund dividend for a current year when, during the 14 immediately preceding year, total payments in an amount at least equal to the amount

01 of the current year dividend were made to the individual or on behalf of the individual 02 from one or more of the following programs: 03  (1) aid to families with dependent children under AS 47.25.310 - 04 47.25.420; 05  (2) Medicaid under AS 47.07; 06  (3) adult public assistance under AS 47.25.430 - 47.25.615; 07  (4) general relief assistance, including medical assistance, under 08 AS 47.25.120 - 47.25.300. 09 * Sec. 3. AS 43.23.028 is amended by adding a new subsection to read: 10  (c) The notice requirements of (a) of this section do not apply to 11 appropriations from the dividend fund to the extent that amounts appropriated for a 12 fiscal year do not exceed the total amount that would have been paid during the 13 immediately preceding fiscal year to individuals who are ineligible to receive dividends 14 under AS 43.23.005(g). 15 * Sec. 4. AS 43.23.055 is amended to read: 16  Sec. 43.23.055. DUTIES OF THE DEPARTMENT. The department shall 17  (1) annually pay permanent fund dividends from the dividend fund; 18  (2) subject to AS 43.23.011 and paragraph (8) of this section, adopt 19 regulations under AS 44.62 (Administrative Procedure Act) that establish procedures 20 and time limits for claiming a permanent fund dividend; the department shall determine 21 the number of eligible applicants by October 1 of the year for which the dividend is 22 declared and pay the dividends by December 31 of that year; 23  (3) adopt regulations under AS 44.62 (Administrative Procedure Act) 24 that establish procedures and time limits for an individual upon emancipation or upon 25 reaching majority to apply for permanent fund dividends not received during minority 26 because the parent, guardian, or other authorized representative did not apply on behalf 27 of the individual; 28  (4) assist residents of the state, particularly in rural areas, who because 29 of language, disability, or inaccessibility to public transportation need assistance to 30 establish eligibility and to apply for permanent fund dividends; 31  (5) annually determine, in cooperation with the Department of

01 Corrections, the number and identity of individuals ineligible for a permanent fund 02 dividend under AS 43.23.005(d); 03  (6) adopt regulations that are necessary to implement AS 43.23.005(d); 04  (7) adopt regulations that establish procedures for the parent, guardian, 05 or other authorized representative of a disabled individual to apply for prior year 06 permanent fund dividends not received by the disabled individual because no 07 application was submitted on behalf of the individual; 08  (8) adopt regulations that establish procedures for an individual to apply 09 to have a dividend warrant reissued if it is returned to the department as undeliverable 10 or it is not paid within two years of the date of its issuance; however, the department 11 may not establish a time limit within which an application to have a warrant reissued 12 must be filed; 13  (9) adopt regulations establishing an optional longevity bonus program 14 to provide for the direct payment by the department of an individual's permanent fund 15 dividend to an annuity program selected by the individual; 16  (10) annually determine, in cooperation with the Department of 17 Health and Social Services, the number and identity of individuals ineligible for 18 a permanent fund dividend under AS 43.23.005(g). 19 * Sec. 5. AS 47.25.120 is amended to read: 20  Sec. 47.25.120. ELIGIBILITY FOR ASSISTANCE. Financial assistance may 21 be given under AS 47.25.120 - 47.25.300, so far as practicable under the conditions 22 in this state, to a needy person who is a United States citizen and otherwise eligible 23 under the regulations of the department. To the extent necessary to comply with the 24 citizenship requirement of this section, assistance under AS 47.25.120 - 47.25.300 25 is exempt from the requirement in AS 18.80.255 that state services and funds be 26 available to persons regardless of their national origin. 27 * Sec. 6. AS 47.25.120 is amended by adding a new subsection to read: 28  (b) The department may not grant assistance under AS 47.25.120 - 47.25.300 29 to a person who has been convicted of violating AS 11.56.210 or a law in another 30 jurisdiction with elements substantially equivalent to AS 11.56.210 if the conviction 31 arose out of a written or recorded statement submitted in order to apply for or continue

01 receiving assistance under AS 47.07 or AS 47.25 or similar laws in another 02 jurisdiction. 03 * Sec. 7. AS 47.25.320(a) is amended to read: 04  (a) The department shall determine the amount of assistance for a dependent 05 child, and the relative with whom the dependent child is living, with regard to the 06 resources and necessary expenditures of the family and the condition existing in each 07 case. Assistance is sufficient if, when added to all other income and support available 08 to the child, the child and relative have reasonable subsistence compatible with 09 decency and health. However, the amount of assistance may not exceed the following: 10  (1) dependent child living with nonneedy relative: $451 [FOR A 11 DEPENDENT CHILD WHO IS LIVING IN THE HOME OF A NONNEEDY 12 RELATIVE, $452], plus $87 [$102] for each additional child; 13  (2) dependent child living with parent: 14  (A) for a parent and one dependent child, a maximum of $767 15 [$821]; 16  (B) for each additional dependent child, or for a second parent, 17 $87 [$102] a month per individual; 18  (3) pregnant woman who is otherwise eligible for assistance under this 19 section [, OR A SINGLE-PERSON HOUSEHOLD THAT DOES NOT CONSIST OF 20 A DEPENDENT CHILD]: $437 [$514] a month. 21 * Sec. 8. AS 47.25.360 is amended to read: 22  Sec. 47.25.360. GRANTING OF ASSISTANCE. Upon the completion of the 23 investigation, the department shall decide whether the child is eligible for assistance 24 under AS 47.25.310 - 47.25.420, the amount of assistance, and the date on which it 25 starts. The department shall notify the person having custody of the child of its 26 decision. Except as provided in AS 47.25.362(b), the [THE] assistance shall be paid 27 monthly to the person having custody of the child upon order of the department. 28 * Sec. 9. AS 47.25 is amended by adding a new section to read: 29  Sec. 47.25.362. ASSISTANCE TO MINORS WITH CHILDREN. (a) Except 30 as provided in (c) of this section, the department shall require, as a condition of 31 eligibility for assistance, that a minor parent must reside in a

01  (1) place of residence maintained by the minor's parent, legal guardian, 02 or other adult relative of the minor as the parent's, guardian's, or other adult relative's 03 own home; or 04  (2) foster home, maternity home, or other adult-supervised supportive 05 living arrangement. 06  (b) Notwithstanding AS 47.25.360, the department shall, where possible, pay 07 assistance on behalf of a minor parent who is subject to the requirements of (a) of this 08 section to the minor's parent, legal guardian, or other adult relative, or, as applicable, 09 to the head of the adult-supervised supportive living arrangement where the minor 10 parent resides. 11  (c) The provisions of (a) and (b) of this section do not apply if 12  (1) the minor parent does not have a parent or legal guardian who is 13 living and whose whereabouts is known; 14  (2) a living parent or legal guardian of the minor parent will not allow 15 the minor to live in the home of the parent or guardian; 16  (3) the department determines that the physical or emotional health or 17 safety of the minor parent or the minor's child would be jeopardized if the minor and 18 the minor's child lived in the same residence with the minor's parent or guardian; 19  (4) the minor parent lived apart from the minor's parent or legal 20 guardian for either one year before the birth of the dependent child or one year before 21 the minor parent submitted the application for assistance; or 22  (5) the department otherwise determines under regulations that are 23 consistent with corresponding federal regulations that there is good cause for waiving 24 the requirements of (a) of this section in the case of a particular minor parent. 25  (d) In this section, "minor parent" means a person who is under the age of 18, 26 who has never married, and is either 27  (1) the natural parent of a dependent child living in the same 28 household; or 29  (2) eligible for assistance as a pregnant woman. 30 * Sec. 10. AS 47.25.421(d) is amended to read: 31  (d) The department shall adopt regulations setting criteria for determining

01 whether a person is in noncompliance with participation requirements of the program 02 for the purpose of imposing sanctions under the program for nonparticipation and for 03 noncompliance with a participation agreement. The department shall consult with 04 Native organizations that are operating similar programs when developing regulations 05 under this subsection. To the extent allowed under federal law, the sanctions in the 06 regulations must include a 20 percent reduction in assistance to a household that 07 includes a participant under AS 47.25.421 - 47.25.429 if a 08  (1) person required to attend school, job training, counseling, or 09 substance abuse treatment under AS 47.25.421 - 47.25.429 refuses to attend 10 school, job training, counseling, or substance abuse treatment, as applicable; 11  (2) dependent child of school age fails, without good cause, to meet 12 standards of adequate levels of school attendance, as defined in the regulations; 13 and 14  (3) person assigned to a work experience or work supplementation 15 program under AS 47.25.421 - 47.25.429 quits participation in the work 16 experience or work supplementation program; 17  (4) person in the assistance unit who held a job at the time of 18 application for assistance under AS 47.25.310 - 47.25.420 voluntarily quits the job 19 without immediately starting a new job that pays at least the same amount in 20 wages. 21 * Sec. 11. AS 47.25.430(e) is amended to read: 22  (e) Notwithstanding (a) and (b) of this section, the department shall, in a 23 manner that complies with federal requirements, reduce the maximum state 24 contribution to recipients otherwise payable on the effective date of this bill section 25 [AUGUST 24, 1993 ] to the maximum state contribution to recipients that was in 26 effect on October 1, 1993, minus 1.7 percent [JANUARY 1, 1992]. On and after the 27 effective date of this bill section [AUGUST 24, 1993], the department shall, in a 28 manner that complies with federal requirements, calculate the amount of monthly 29 assistance for a recipient based on the maximum state contribution to recipients in 30 effect on October 1, 1993, minus 1.7 percent [JANUARY 1, 1992], as modified by 31 any increase under (b) of this section that takes effect on or after the effective date

01 of this bill section. 02 * Sec. 12. AS 47.25.455(a) is amended to read: 03  (a) The department shall pay at least $280 a month to a person eligible for 04 assistance under this chapter until an initial determination of [WHILE] the eligibility 05 of the person for benefits under 42 U.S.C. 1381 - 1385 (Title XVI, Social Security 06 Act, Supplemental Security Income Program [,]) is made. The department shall 07 terminate assistance under this section upon an initial determination that the 08 person is ineligible for assistance under 42 U.S.C. 1381 - 1385 and may not 09 continue assistance under this section during subsequent appeals of the initial 10 determination [BEING DETERMINED]. Payments in excess of $280 a month may 11 be made under this section if the department determines that money is available for 12 excess payments. 13 * Sec. 13. AS 47.25.455(d) is amended to read: 14  (d) Beginning the first full month after a person is determined to be eligible 15 for assistance under 42 U.S.C. 1381 - 1383, the department shall terminate interim 16 assistance to that person under this section, unless it has already been terminated 17 under (a) of this section, and begin payments to the person under AS 47.25.430. 18 * Sec. 14. AS 47.25.455 is amended by adding a new subsection to read: 19  (e) A person applying for assistance under this section shall, as a condition of 20 eligibility for the assistance, agree to repay the assistance to the state upon a final 21 determination that the person is not eligible to receive a benefit under 42 U.S.C. 22 1381 -1383. 23 * Sec. 15. STATEWIDE PROGRAM CHANGES; WAIVERS. (a) The Department of 24 Health and Social Services shall, by December 31, 1995, seek appropriate waivers from the 25 federal government to implement secs. 16 - 26 of this Act. The department shall seek to 26 implement the changes made by these sections on a statewide basis, using control groups if 27 required by the federal government. 28 (b) To the extent that the federal government approves the necessary waivers and to 29 the extent that the department determines that a waiver is not necessary, the department shall 30 implement secs. 16 - 26. The commissioner of health and social services shall promptly 31 notify the revisor of statutes of the effective date of implementation of any part of secs. 16 -

01 26 and whether the basis for doing so is approval of a waiver or a determination that a waiver 02 is not necessary. 03 * Sec. 16. FIVE-YEAR LIMIT ON AFDC BENEFITS. Notwithstanding other provisions 04 of AS 47.25.310 - 47.25.420 and this Act, a person is not eligible to receive benefits under 05 AS 47.25.310 - 47.25.420 for more than a total of 60 months as the caretaker of a dependent 06 child or as a pregnant woman unless the person is permanently totally physically or mentally 07 disabled. 08 * Sec. 17. SCHOOL ATTENDANCE. (a) The Department of Health and Social Services 09 shall reduce by 20 percent the assistance for which an assistance unit is otherwise eligible 10 under AS 47.25.310 - 47.25.420 if a person in the assistance unit who is of school age fails, 11 without good cause, to meet standards of adequate levels of school attendance, as defined in 12 regulations of the department. The department may not assess a reduction under both this 13 subsection and sec. 30(d)(2) of this Act. 14 (b) In addition to assistance under AS 47.25.310 - 47.25.420 to which an assistance 15 unit is otherwise eligible, the department shall pay to the assistance unit the amount of $200 16 upon the graduation from secondary school, or an equivalent level of technical or vocational 17 training, of a person in the assistance unit who is receiving assistance at the time of graduation 18 or of a person living in the same household as the assistance unit whose parent in the 19 household is receiving assistance at the time of the person's graduation. Payment under this 20 subsection may be made only once per person. 21 * Sec. 18. JOB RETENTION REQUIREMENT FOR RECIPIENTS. The Department of 22 Health and Social Services shall reduce by 20 percent the assistance for which an assistance 23 unit is otherwise eligible under AS 47.25.310 - 47.25.420 if a person in the assistance unit 24 who held a job at the time of application for assistance voluntarily quits the job without 25 immediately starting a new job that pays at least the same net amount in earnings. 26 * Sec. 19. PARENTAGE ESTABLISHMENT. (a) Unless exempt under (b) of this 27 section, an applicant for assistance under AS 47.25.310 - 47.25.420 must include on the 28 application the name of each dependent child's mother and father. 29 (b) Notwithstanding other provisions of AS 47.25.310 - 47.25.420, assistance under 30 AS 47.25.310 - 47.25.420 may not be paid to a family with respect to a dependent child 31 whose paternity has not been established, and the child's needs shall be disregarded in

01 determining the amount of assistance to the child's family unless 02 (1) the child was conceived as a result of rape or incest; 03 (2) the department determines that efforts to establish paternity would result 04 in physical danger to the relative claiming the assistance; or 05 (3) the relative claiming assistance on behalf of the child alleges that any of 06 not more than three named individuals may be the biological father of the child and provides 07 the address of each of the named individuals or the address of the immediate relatives of the 08 named individual and the state has not disproved the allegation; if this paragraph is 09 applicable, assistance is payable to the family, but the needs of the dependent child whose 10 paternity is uncertain shall be disregarded in determining the amount of the assistance; 11 however, the entire family is eligible for medical assistance under AS 47.07. 12 (c) A relative who claims assistance on behalf of a dependent child for whom 13 paternity has not been established and who alleges that the dependent child's biological father 14 is deceased has the burden of proving the paternity allegation under procedures that the 15 department may establish. 16 * Sec. 20. PERSONAL RESPONSIBILITY STATEMENT. (a) Before the department 17 may grant assistance under AS 47.25.310 - 47.25.420 to a person, the potential recipient shall 18 sign the personal responsibility statement described in (b) of this section. 19 (b) The personal responsibility statement referred to in (a) of this section shall read 20 as follows: 21 STATE OF ALASKA 22 PERSONAL RESPONSIBILITY AGREEMENT 23 FOR AFDC RECIPIENTS 24 I understand that public assistance is not intended to be a way of life, but to 25 be temporary assistance, and that becoming self-sufficient through work is 26 expected to be my personal goal. Therefore, I promise the citizens of the State 27 of Alaska that, in return for receiving public assistance, I accept personal 28 responsibility for myself and my family, and, at a minimum, will abide by the 29 following requirements: 30 *I promise, upon entry into the job placement track, to develop a self-sufficiency plan jointly with my family and 31 a caseworker, to obtain a

01 job, and to follow the plan. 02 *I understand that, if I am in the job placement track, workfare, or JOBS 03 program, I will be sanctioned if I quit my job without good cause, or 04 refuse to accept a job, or quit school, job training, counseling, or a 05 substance abuse program. 06 *I promise to accept any reasonable employment as soon as it becomes 07 available. 08 *I understand that I will lose cash benefits and will be permanently 09 ineligible for public assistance if I commit welfare fraud. 10 *I understand that I will not receive any additional cash benefits if I have 11 additional children while on public assistance. I am free to have as 12 many children as I choose, but the citizens of the State of Alaska will 13 not be required to pay for them. 14 *I promise to take responsibility for making sure that my children attend 15 school. I understand that I will be sanctioned if my children are not in 16 school on a regular basis. 17 *I promise to live with my parents, with a responsible adult relative, or 18 in an adult-supervised foster home, maternity home, or other situation 19 if I am a minor parent or a pregnant teenager in order to receive public 20 assistance. 21 *I understand that, if I enter the JOBS program, workfare program, or 22 job placement track, I will receive AFDC cash benefits for no more 23 than 24 months from the date I begin receiving AFDC cash benefits 24 unless the state finds an exception in my case. 25 *I promise to take all the necessary steps to become self-sufficient and 26 to take responsibility for myself and my family. 27 I make this promise to the citizens of the State of 28 Alaska on this ______ day of ________________ 29 in the year ______. 30 _______________________________________ 31 Signature of AFDC Recipient

01 ________________________________________ 02 Governor of Alaska 03 * Sec. 21. NO AID FOR ADDITIONAL CHILD CONCEIVED WHILE ON WELFARE. 04 (a) Notwithstanding other provisions of AS 47.25.310 - 47.25.420, assistance is not payable 05 with respect to a child born to 06 (1) a recipient of assistance under AS 47.25.310 - 47.25.420; or 07 (2) an individual who received assistance under AS 47.25.310 - 47.25.420 at 08 any time during the 10-month period ending with the birth of the child. 09 (b) The provisions of (a) of this section do not apply to 10 (1) a child who is the only dependent child on whose behalf the individual is 11 eligible to receive assistance under AS 47.25.310 - 47.25.420; or 12 (2) children who are born during a multiple birth if the children are the only 13 dependent children on whose behalf the individual is eligible to receive assistance under 14 AS 47.25.310 - 47.25.420. 15 * Sec. 22. PERMANENT WELFARE INELIGIBILITY AFTER WELFARE FRAUD. (a) 16 A person is permanently ineligible for assistance under AS 47.07 and AS 47.25 upon 17 conviction of violating AS 11.56.210 or a law in another jurisdiction with elements 18 substantially equivalent to AS 11.56.210 if the conviction arose out of a written or recorded 19 statement submitted in order to apply for or continue receiving assistance under AS 47.07 or 20 AS 47.25 or similar laws in another jurisdiction. 21 (b) This section applies to offenses committed on or after the effective date of this 22 section. 23 * Sec. 23. ALIENS INELIGIBLE FOR ASSISTANCE. Notwithstanding AS 18.80.255, a 24 person who is not a United States citizen is not eligible for assistance under AS 47.07 or 25 AS 47.25.310 - 47.25.615, except for emergency medical services under AS 47.07, unless the 26 person 27 (1) was admitted within the six years immediately preceding the payment of 28 assistance as a refugee under sec. 607 of the Immigration and Naturalization Act; or 29 (2) is over 75 years of age, has resided in the United States for at least five 30 years, and has been lawfully admitted to the United States for permanent residence. 31 * Sec. 24. INFORMATION ABOUT ILLEGAL ALIENS. The Department of Health and

01 Social Services shall provide to the United States Immigration and Naturalization Service the 02 name, address, and other identifying information that the department has with respect to an 03 individual unlawfully in the United States any of whose children is a citizen of the United 04 States. 05 * Sec. 25. TRANSITIONAL BENEFITS AFTER MARRIAGE. The Department of Health 06 and Social Services may continue to grant assistance under AS 47.25.310 - 47.25.420 to a 07 family unit when the recipient of assistance marries an individual who is not a parent of a 08 child of the recipient and, but for the operation of this section, the resulting family would have 09 become ineligible for continued assistance under AS 47.25.310 - 47.25.420 by reason of the 10 marriage. Continued assistance under this section is limited to six months after the marriage. 11 * Sec. 26. ALCOHOL AND DRUG TESTING; TREATMENT PROGRAMS. (a) As a 12 condition of eligibility for assistance under AS 47.25.310 - 47.25.420, an applicant or recipient 13 who the Department of Health and Social Services determines is addicted to alcohol or drugs 14 shall agree to 15 (1) participate, and must maintain satisfactory participation, in an appropriate 16 addiction treatment program, if available; and 17 (2) submit to tests for the presence of alcohol or drugs, without advance notice, 18 while receiving the assistance. 19 (b) An applicant or recipient who fails to comply with (a) of this section is not 20 eligible for assistance under AS 47.25.310 - 47.25.420 during the two-year period that begins 21 with the failure to comply, but shall be considered to be receiving the assistance for purposes 22 of eligibility for medical assistance under AS 47.07. 23 * Sec. 27. DEMONSTRATION PROJECT; WAIVERS. (a) The Department of Health 24 and Social Services shall, by December 31, 1995, seek appropriate waivers from the federal 25 government to implement the AFDC demonstration project described in secs. 28 - 34 of this 26 Act. The department shall seek to implement the changes made by these sections in the 27 project area, using control groups if required by the federal government. To the extent that 28 the federal government approves the necessary waivers, the department shall implement secs. 29 28 - 34. The commissioner of health and social services shall promptly notify the revisor of 30 statutes of the effective date of implementation of any part of secs. 28 - 34. 31 (b) Notwithstanding (a) of this section, if changes in federal statutes or regulations

01 occur after the effective date of this section and would have a major effect on the design, 02 implementation, or operation of the project, the department shall 03 (1) apply for and implement only the waivers that relate to the parts of the 04 project that are not substantially affected by the changes in federal statutes or regulations; if 05 the department determines that the parts of the project that are not substantially affected by 06 the federal changes do not comprise a fiscally responsible project, the department is not 07 required to apply for or implement waivers under this Act and may discontinue operation of 08 the project under waivers that were implemented before the federal changes occurred; 09 (2) report to the legislature its recommendations for changes in its statutory 10 authority that may be needed in order to implement a fiscally responsible project in light of 11 conflicting or permissive changes in federal statutes or regulations. 12 (c) To the extent that the department determines that a provision of secs. 28 - 34 may 13 be implemented on a statewide basis without the need for a waiver to be approved, the 14 department shall implement that provision on a statewide basis. The commissioner of health 15 and social services shall notify the revisor of statutes of the effective date of any 16 implementation of secs. 28 - 34 under this subsection. 17 * Sec. 28. EARNED INCOME DISREGARD; WAIVER OF "100-HOUR" RULE; AUTO 18 ALLOWANCE. When determining the AFDC eligibility of a family in the project area and 19 when determining the amount of assistance to which a family in the project area is entitled, 20 the department shall 21 (1) disregard, for 24 months, $200 plus one-third of the remainder of the 22 earned income of each person in the family unless federal regulations require that more earned 23 income of a person must be disregarded; for a family that applies for AFDC after this 24 paragraph has been implemented, this 24 months begins with the month for which the family 25 is first granted AFDC; for a family that is already receiving assistance when this paragraph 26 is implemented, this 24 months begins with the first month during which this paragraph is 27 implemented; 28 (2) waive the requirement that, for purposes of assistance for a dependent child 29 of unemployed parents, the principal wage-earning parent must be employed less than 100 30 hours a month; and 31 (3) allow the exclusion of $5,000 of the combined equity of motor vehicles

01 used by the family for basic family transportation, transportation of a disabled child in the 02 household, or transportation of a member of the family to or from employment, training, or 03 participation in an activity required under sec. 29 or 30 of this Act; if the combined equity of 04 vehicles described in this paragraph exceeds $5,000, the department shall apply the excess 05 equity amount toward the asset limit otherwise applicable to the family. 06 * Sec. 29. WORKFARE. (a) Each member of a family in the project area who is 18 years 07 of age or older shall participate for 21 hours a week in an uncompensated activity if assigned 08 to the activity by the department. The department shall assess the availability of activities that 09 satisfy the purposes of this subsection in each part of the project area and attempt to develop 10 additional activities where necessary. When assessing the availability of activities that are 11 suitable as uncompensated activities under this section and in assigning persons to those 12 activities, the department shall consider activities recommended by governmental 13 representatives of boroughs, cities, and communities and others in the project area. The 14 department shall penalize the family for failure of a person to comply with this subsection by 15 disregarding that person as a member of the family for purposes of determining the amount 16 of AFDC assistance given to the family. 17 (b) If organizations exist in the project area that have had successful experience in 18 conducting employment placement services, community services, and job training programs, 19 the department shall offer on a competitive basis contracts to those organizations to administer 20 (a) of this section. A contract under this subsection must provide that the department shall 21 make the determinations required under (c) and (d) of this section and the contractor shall 22 perform the duties assigned to the department under (a) of this section with respect to 23 uncompensated activities, including assessment of their availability, development of additional 24 activities, consideration of activities recommended by governmental representatives, and 25 assignment of persons to specific activities after referral of those persons to the contractor by 26 the department. 27 (c) The requirement to participate in an uncompensated activity under (a) of this 28 section does not apply to a person who 29 (1) has paid employment of at least 15 hours a week; a person who has paid 30 employment of less than 15 hours a week shall participate in an uncompensated activity 31 assigned under (a) of this section for the number of hours that, when added to the hours of

01 paid employment, equals 21; 02 (2) is participating in an activity under AS 47.25.421 - 47.25.429 (JOBS 03 program); 04 (3) is assigned to a job placement track under sec. 30 of this Act; 05 (4) is participating in an activity under a program operated by an Indian or 06 Native organization under 42 U.S.C. 682(i) unless the Indian or Native organization agrees 07 to the person's inclusion in the project; 08 (5) is exempt from participating in an activity under AS 47.25.421 - 47.25.429 09 (JOBS program); 10 (6) is the parent or other relative of a child under six years of age living in the 11 same household who personally provides care for the child; or 12 (7) is determined, according to regulations of the department, to be physically 13 or mentally unable to perform any reasonable activity that may be assigned under this section; 14 or 15 (8) is a parent who is providing care for a child with a developmental disability 16 as defined by AS 47.80.900. 17 (d) Notwithstanding (a) of this section, the department may not require a person to 18 participate in an uncompensated activity under (a) of this section unless the department agrees 19 to pay for 20 (1) costs of child care determined by the department to be necessary for the 21 person's participation; and 22 (2) transportation expenses determined by the department to be necessary for 23 the person's participation in the activity. 24 * Sec. 30. JOB PLACEMENT TRACK. (a) Except as provided in (b) of this section, 25 a member of a family in the project area who is 18 years of age or older may be assigned by 26 the department to a job placement track if the department determines after a comprehensive 27 family assessment that the person has the potential to succeed, within two years from the time 28 of assignment to the track, in finding and maintaining private unsubsidized employment at a 29 wage that would provide the person's family with net income equal to or greater than what 30 the family would receive from AFDC. In making its determination under this subsection, the 31 department shall consider

01 (1) the person's literacy and educational attainment level; 02 (2) the need for and availability of child care to enable the person to get and 03 keep employment; 04 (3) whether the person has a history of substance abuse; 05 (4) the person's prior work history; 06 (5) the person's medical history; 07 (6) whether the person has experienced sexual or physical abuse; 08 (7) whether the person is needed in the home to care for an incapacitated child 09 or other relative; 10 (8) whether there exist in the person's household the mental and emotional 11 support systems that may be necessary. 12 (b) The department may not assign to a job placement track a person who is the 13 parent of a child under the age of three unless all of the person's children who are under the 14 age of three were born while the person was receiving AFDC. 15 (c) The department and a person assigned to the job placement track shall complete 16 a self-sufficiency plan that identifies the respective responsibilities of the department and the 17 person that must be met in order for the person to get and keep employment. 18 (d) The department shall assess a 20 percent reduction in AFDC to a household that 19 includes a person assigned to the job placement track where a 20 (1) person required to attend school, job training, counseling, or substance 21 abuse treatment under AS 47.25.421 - 47.25.429 refuses to attend school, job training, 22 counseling, or substance abuse treatment, as applicable; 23 (2) person in the assistance unit who is of school age fails, without good cause, 24 to meet standards of adequate levels of school attendance, as defined in the regulations; 25 (3) person assigned to a work experience or work supplementation program 26 under AS 47.25.421 - 47.25.429 quits participation in the work experience or work 27 supplementation program; and 28 (4) person in the assistance unit who held a job at the time of application for 29 AFDC or who obtains a job while receiving AFDC voluntarily quits the job without 30 immediately starting a new job that pays at least the same net amount in wages. 31 * Sec. 31. TIME LIMIT ON AFDC BENEFITS. (a) Except as provided in (b) of this

01 section, a family in the project area who has a member assigned to an activity under the JOBS 02 program under AS 47.25.421 - 47.25.429, assigned to a workfare activity under sec. 29 of this 03 Act, or assigned to a job placement track under sec. 30 of this Act, is ineligible for AFDC 04 beginning with the 25th month after the person is assigned and does not become eligible to 05 apply for AFDC again until 84 months after the person is assigned. 06 (b) The AFDC eligibility of a family described in (a) of this section shall be extended 07 beyond 24 months from the assignments described in (a) of this section if the assigned person 08 has cooperated with the department and has substantially complied with the requirements of 09 the program to which the person was assigned but 10 (1) a temporary and verified physical or mental condition, as supported by 11 appropriate medical documentation, prevents the person from attaining and maintaining 12 employment that would provide the family with net income equal to or greater than what the 13 family would receive from the AFDC grant; 14 (2) the department failed to comply with AS 47.25.427 with respect to the 15 family or has substantially failed to provide the services specified in the person's self-sufficiency plan; 16 (3) despite all appropriate efforts, the person has been unable to find, or has 17 lost without cause, employment that would provide the family with net income equal to or 18 greater than what the family would receive from AFDC; or 19 (4) other unique circumstances exist, as determined by the department, that 20 prevent the person from obtaining or retaining adequate employment. 21 (c) Notwithstanding (a) of this section, a family in the project area that becomes 22 ineligible for AFDC solely by operation of (a) of this section nevertheless remains eligible for 23 medical assistance under AS 47.07 for a period of 12 months after losing eligibility for AFDC 24 under (a) of this section. 25 * Sec. 32. PROJECT AREA. The department shall determine the area in which the project 26 will be implemented by choosing four municipalities as follows: 27 (1) the municipality that had the highest number of households receiving 28 AFDC in fiscal year 1993; 29 (2) a municipality contiguous to the municipality determined under (1) of this 30 section; 31 (3) an area consisting of

01  (A) a home rule city that is contained within the boundaries of a second 02 class borough and has a population of at least 15,000 persons; and 03  (B) the second class borough that contains the city described in (A) of 04 this paragraph; and 05 (4) the largest municipality, as measured by square miles, including the cities 06 within the municipality. 07 * Sec. 33. COOPERATION. State agencies shall cooperate with the department to the 08 extent necessary to implement secs. 28 - 34 of this Act. 09 * Sec. 34. DEFINITIONS. In secs. 28 - 34 of this Act, 10 (1) "AFDC" means the program of aid to families with dependent children 11 under AS 47.25.310 - 47.25.420; 12 (2) "department" means the Department of Health and Social Services; 13 (3) "project" means the department's implementation of the eligibility 14 modifications and requirements of secs. 28 - 31 of this Act, to the extent that the federal 15 government approves those modifications and requirements; 16 (4) "project area" means the area established by the department under sec. 32 17 of this Act. 18 * Sec. 35. AS 47.25.310(c) is repealed. 19 * Sec. 36. Sections 15 - 34 of this Act are repealed June 30, 2001. 20 * Sec. 37. APPLICABILITY. AS 47.25.455(a) and (d), as amended by secs. 12 and 13 21 of this Act, and AS 47.25.455(e), added by sec. 14 of this Act, apply to 22 (1) applications for assistance under AS 47.25.455 that are submitted to, or pending 23 with, the Department of Health and Social Services on or after the effective date of secs. 12 - 24 14 of this Act; and 25 (2) recipients of assistance under AS 47.25.455 whose determinations of eligibility for 26 assistance under 42 U.S.C. 1381 - 1385 are not final by the effective date of secs. 12 - 14 of 27 this Act. 28 * Sec. 38. Section 6 of this Act applies to offenses committed on or after the effective date 29 of sec. 6 of this Act. 30 * Sec. 39. Except as provided in sec. 40 of this Act, this Act takes effect immediately 31 under AS 01.10.070(c).

01 * Sec. 40. Sections 15 - 34 of this Act take effect on the approval of applicable waivers 02 or upon a determination that a waiver is not needed as provided in secs. 15 and 27 of this Act.