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CSSB 98(FIN): "An Act making changes related to the aid to families with dependent children program (AFDC); relating to the duties of the Department of Health and Social Services; establishing a workfare pilot project for AFDC recipients; establishing a diversion program for AFDC applicants; directing the Department of Health and Social Services to seek waivers of applicable federal laws; establishing and relating to the Alaska temporary assistance program and repealing the AFDC and job opportunity and basic skills programs upon the establishment of federal welfare reform; relating to work activities required under the Alaska temporary assistance program; authorizing qualified entities to contract with the state to administer all or part of the Alaska temporary assistance program; relating to child support; relating to certain licenses and applications for a license for persons who are not in substantial compliance with orders, judgments, or payment schedules for child support; relating to an exemption to the State Procurement Code for certain services and contracts under the Alaska temporary assistance program; relating to disclosure of information that relates to day care assistance and the Alaska temporary assistance program; relating to eligibility for day care benefits administered by the Department of Community and Regional Affairs; amending Rule 90.3(c) and (h)(2), Alaska Rules of Civil Procedure; and providing for an effective date."

00CS FOR SENATE BILL NO. 98(FIN) 01 "An Act making changes related to the aid to families with dependent children 02 program (AFDC); relating to the duties of the Department of Health and Social 03 Services; establishing a workfare pilot project for AFDC recipients; establishing 04 a diversion program for AFDC applicants; directing the Department of Health 05 and Social Services to seek waivers of applicable federal laws; establishing and 06 relating to the Alaska temporary assistance program and repealing the AFDC 07 and job opportunity and basic skills programs upon the establishment of federal 08 welfare reform; relating to work activities required under the Alaska temporary 09 assistance program; authorizing qualified entities to contract with the state to 10 administer all or part of the Alaska temporary assistance program; relating to 11 child support; relating to certain licenses and applications for a license for 12 persons who are not in substantial compliance with orders, judgments, or 13 payment schedules for child support; relating to an exemption to the State 14 Procurement Code for certain services and contracts under the Alaska temporary

01 assistance program; relating to disclosure of information that relates to day care 02 assistance and the Alaska temporary assistance program; relating to eligibility 03 for day care benefits administered by the Department of Community and 04 Regional Affairs; amending Rule 90.3(c) and (h)(2), Alaska Rules of Civil 05 Procedure; and providing for an effective date." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. AS 47.25 is amended by adding new sections to read: 08 ARTICLE 1A. AFDC WORKFARE PROJECT. 09  Sec. 47.25.301. WAIVER APPLICATION FOR PROJECT. (a) The 10 Department of Health and Social Services shall seek appropriate waivers from the 11 federal government to implement the AFDC demonstration project described in 12 AS 47.25.301 - 47.25.308. To the extent that the federal government approves the 13 necessary waivers, the department shall implement the project. The purposes of the 14 project are to promote personal responsibility and self-sufficiency. 15  (b) At a minimum, the department shall implement AS 47.25.303 so that there 16 are experimental groups in at least three different areas of the state, with at least one 17 experimental group in a municipality with a population over 25,000, one in a 18 municipality with a population between 5,000 and 25,000, and one in a municipality 19 or community with a population under 5,000. The department shall implement 20 AS 47.25.303 with the minimum number of control groups that are required by the 21 federal government for approval of the waivers applied for under this section. 22  (c) Notwithstanding (a) of this section, if changes in federal statutes or 23 regulations occur after the effective date of this section and would have a major effect 24 on the design, implementation, or operation of the project, the department shall 25  (1) apply for and implement only the waivers that relate to the parts of 26 the project that are not substantially affected by the changes in federal statutes or 27 regulations; 28  (2) report to the legislature its recommendations for changes in its 29 statutory authority that may be needed in order to implement a fiscally responsible 30 project in light of conflicting or permissive changes in federal statutes or regulations. 31  Sec. 47.25.302. EARNED INCOME DISREGARD; WAIVER OF "100-

01 HOUR" RULE; AUTO ALLOWANCE. When determining the AFDC eligibility of a family 02 that is participating in an experimental group in the project under AS 47.25.303 and when 03 determining the amount of assistance to which the family is entitled, the department shall 04  (1) disregard, for the first 24 months for which the family receives 05 assistance, $200 plus one-third of the remainder of the earned income of each person 06 in the family unless federal regulations require that more earned income of a person 07 must be disregarded, in which case the department shall disregard earned income as 08 required by federal law; for a family that applies for AFDC after this paragraph has 09 been implemented, this 24 months begins with the month for which the family is first 10 granted AFDC; for a family that is already receiving assistance when this paragraph 11 is implemented, this 24 months begins with the first month during which this 12 paragraph is implemented; 13  (2) waive the requirement that, for purposes of assistance for a 14 dependent child of unemployed parents, the principal wage-earning parent must be 15 employed less than 100 hours a month; and 16  (3) allow the exclusion of $5,000 of the combined equity of motor 17 vehicles used by the family for basic family transportation, transportation of a disabled 18 child in the household, or transportation of a member of the family to or from 19 employment, training, or participation in an activity required under AS 47.25.303; if 20 the combined equity of vehicles described in this paragraph exceeds $5,000, the 21 department shall apply the excess equity amount toward the asset limit otherwise 22 applicable to the family. 23  Sec. 47.25.303. WORKFARE. (a) The department shall operate a workfare 24 project. Each member of a family in an experimental group in the workfare project 25 who is 18 years of age or older shall participate for 21 hours a week in an 26 uncompensated activity if assigned to the activity by the department. The department 27 shall assess the availability of activities that satisfy the purposes of this subsection in 28 the project area and attempt to develop additional activities where necessary. When 29 assessing the availability of activities that are suitable as uncompensated activities 30 under this section and in assigning persons to those activities, the department shall 31 consider activities recommended by governmental representatives of boroughs, cities,

01 and communities and others in the project area. The activities may include provision 02 of child care for other project participants, community work experience, work-related 03 training programs, high school completion, GED programs, or culturally relevant 04 subsistence activities. The department shall penalize the family for failure of a person 05 to comply with this subsection by disregarding that person as a member of the family 06 for purposes of determining the amount of AFDC assistance given to the family. The 07 period of time during which the department shall disregard the noncomplying person 08 for purposes of determining the amount of the family's AFDC assistance is 09  (1) until the person is in compliance with this subsection if the person 10 has not previously been disregarded under this subsection; 11  (2) the longer of six months or until the person is in compliance with 12 this subsection if the person has previously been disregarded under (1) of this 13 subsection; 14  (3) the longer of 12 months or until the person is in compliance with 15 this subsection if the person has previously been disregarded under (2) of this 16 subsection. 17  (b) If organizations exist in the project area that have had successful 18 experience in conducting employment placement services, community services, 19 remedial education services, and job training programs, the department may offer 20 contracts on a competitive basis or grants under the department's grant application 21 process to administer (a) of this section. A contract or grant under this subsection 22 must provide that the department shall make the determinations required under (c) and 23 (d) of this section and the contractor or grantee shall perform the duties assigned to 24 the department under (a) of this section with respect to uncompensated activities, 25 including assessment of their availability, development of additional activities, 26 consideration of activities recommended by governmental representatives, and 27 assignment of persons to specific activities after referral of those persons to the 28 contractor or grantee by the department. The department may, after consultation with 29 the appropriate contractor or grantee under this subsection, if any, use AFDC benefits 30 to subsidize payments or provide services to participants in community work projects 31 or work training projects; an amount distributed as a subsidy under this subsection is

01 not considered to be wages. 02  (c) The requirement to participate in an uncompensated activity under (a) of 03 this section does not apply to a person who 04  (1) has paid employment of at least 20 hours a week; a person who has 05 paid employment of less than 20 hours a week shall participate in an uncompensated 06 activity assigned under (a) of this section for the number of hours that, when added 07 to the hours of paid employment, equals 21; 08  (2) is exempt from participating in an activity under AS 47.25.421 - 09 47.25.429 (JOBS program); 10  (3) is enrolled as a full-time student in good standing in a career 11 education program, college, or university, as defined in regulations adopted under 12 AS 14.43; 13  (4) is the parent or other relative of a child under six years of age 14 living in the same household who personally provides care for the child; 15  (5) is determined, according to regulations of the department, to be 16 physically or mentally unable to perform any reasonable activity that may be assigned 17 under this section; or 18  (6) is a parent who is providing care for a child who is experiencing 19 a disability. 20  (d) Notwithstanding (a) of this section, the department may not require a 21 person to participate in an uncompensated activity under (a) of this section unless the 22 department agrees to pay for 23  (1) costs of child care determined by the department to be necessary 24 for the person's participation; and 25  (2) transportation expenses determined by the department to be 26 necessary for the person's participation in the activity. 27  (e) In this section, "project area" means the areas chosen by the department 28 in which to operate the workfare project described in this section. 29  Sec. 47.25.305. COOPERATION. State agencies shall cooperate with the 30 department to the extent necessary to implement AS 47.25.301 - 47.25.308. 31  Sec. 47.25.306. IMMUNITY FROM LIABILITY. (a) The Department of

01 Health and Social Services, and its employees, agents, and grantees, are not liable for 02 civil damages as a result of an act or omission in the implementation, operation, or 03 administration of an authorized project under AS 47.25.301 - 47.25.308. 04  (b) The provisions of (a) of this section do not preclude liability for civil 05 damages as a result of recklessness or intentional misconduct. 06  (c) The provisions of (b) of this section do not constitute a waiver or limitation 07 of sovereign or other immunity. 08  Sec. 47.25.307. REGULATIONS. The Department of Health and Social 09 Services shall adopt regulations necessary to implement AS 47.25.301 - 47.25.308. 10 The regulations adopted by the department may include 11  (1) eligibility criteria for the project described in AS 47.25.301 - 12 47.25.308 that differ from eligibility requirements in AS 47.25.310 - 47.25.429 and the 13 regulations adopted under those statutes; 14  (2) a maximum number of participants to be included in the project, 15 if necessary; 16  (3) exemptions from requiring participation in the project because of 17 exceptional circumstances; and 18  (4) provisions for financial or nonfinancial sanctions for applicants who 19 fail to cooperate with project requirements. 20  Sec. 47.25.308. DEFINITIONS. In AS 47.25.301 - 47.25.308, 21  (1) "AFDC" means the program of aid to families with dependent 22 children under AS 47.25.310 - 47.25.420; 23  (2) "department" means the Department of Health and Social Services. 24 ARTICLE 1B. DIVERSION PROGRAM. 25  Sec. 47.25.309. DIVERSION PROGRAM. (a) The Department of Health and 26 Social Services shall operate a diversion program that is designed to increase family 27 income through employment and child support payments by offering lump-sum 28 diversion payments in place of ongoing financial assistance under the AFDC program. 29 A diversion payment may be offered to an adult applicant for AFDC who is job-ready 30 and who needs short-term financial assistance to meet critical needs in order to secure 31 employment and support for the applicant's family.

01  (b) Diversion program benefits may be paid only to an applicant's family that 02 appears, based on the information provided to the department on an AFDC application, 03 to be eligible for AFDC benefits and to include a job-ready individual. The 04 department may offer, to an AFDC applicant with the potential to participate in the 05 diversion program, a choice between 06  (1) having the AFDC application processed under AS 47.25.310 - 07 47.25.429; or 08  (2) having the AFDC application referred to the diversion project under 09 this section. 10  (c) The amount of the diversion payment must be sufficient to meet the 11 family's immediate needs as determined by the department and the participant. A 12 diversion payment may not exceed the amount the family would be eligible to receive 13 in the first two months of eligibility for assistance under AS 47.25.310 - 47.25.420 if 14 the family did not elect to receive a diversion payment under this section. 15  (d) As a condition of a family receiving a diversion payment under this 16 section, the participant must sign a binding contract between the participant and the 17 department that 18  (1) specifies the amount of the diversion payment and the needs it is 19 intended to cover; 20  (2) provides that, during the three-month period beginning with the 21 month in which the diversion payment was received, child support collected on behalf 22 of a child whose needs were considered in determining the diversion payment shall be 23 paid to the family; and 24  (3) provides that, if the family reapplies for AFDC assistance under 25 AS 47.25.310 - 47.25.429 during the three months beginning with the month in which 26 the family received a diversion payment, the diversion payment shall be prorated over 27 the three-month period and deducted from any AFDC benefit the family may be 28 eligible for under the new application. 29  (e) A family that receives a diversion payment may not receive another 30 diversion payment before the 12th month following the month in which it last received 31 a diversion payment.

01  (f) The department shall implement this section only to the extent that 02 implementation is not prohibited under federal law. To the extent that this section may 03 be implemented under federal law or under a waiver approved under federal law, its 04 provisions supersede inconsistent provisions of AS 47.25.310 - 47.25.429, and (d)(2) 05 of this section supersedes inconsistent provisions of AS 25.27.120 and 25.27.130. 06  (g) In this section, 07  (1) "AFDC" means the program of aid to families with dependent 08 children under AS 47.25.310 - 47.25.420; 09  (2) "department" means the Department of Health and Social Services. 10 * Sec. 2. AS 47.25 is amended by adding new sections to read: 11  Sec. 47.25.311. INELIGIBILITY FOR ASSISTANCE. (a) A person is 12 ineligible for assistance under AS 47.25.310 - 47.25.420 for the following time periods 13 upon administrative disqualification for making a false statement or misrepresentation 14 knowing it was false, or for knowingly failing to disclose a material fact, in order to 15 obtain or increase assistance under AS 47.25.310 - 47.25.420: 16  (1) six months following the first disqualification; 17  (2) 12 months following the second disqualification; and 18  (3) permanently following the third disqualification. 19  (b) A family is not eligible for assistance under AS 47.25.310 - 47.25.420 if 20 the family includes an adult who has intentionally transferred an asset or assets at less 21 than fair market value for the purpose of establishing eligibility for assistance. The 22 period of ineligibility shall begin on the first day of the month following the transfer 23 of the asset or assets and shall remain in effect for a number of months equal to the 24 fair market value of the transferred asset or assets divided by the maximum payment 25 amount for the family as established under AS 47.25.320(a), or for 12 months, 26 whichever is less. 27  (c) A family is not eligible for assistance for the following time periods after 28 the day on which the adult applicant or a custodial parent in the family, without good 29 cause, refused to accept, or separated from, suitable employment and that refusal or 30 separation caused the family's need for assistance: 31  (1) one month for the first refusal or separation without good cause;

01  (2) six months for the second refusal or separation without good cause; 02 and 03  (3) 12 months for the third and subsequent refusal or separation without 04 good cause. 05  (d) The department shall implement this section only to the extent that 06 implementation is not prohibited under federal law. To the extent that this section may 07 be implemented under federal law or under a waiver approved under federal law, its 08 provisions supersede inconsistent provisions of AS 47.25.310 - 47.25.420. 09  Sec. 47.25.315. ASSISTANCE TO MINORS WITH CHILDREN. (a) Except 10 as provided in (c) of this section, the department shall require, as a condition of 11 eligibility for assistance, that a minor parent must reside in a 12  (1) place of residence maintained by the minor's parent, legal guardian, 13 or other adult relative of the minor as the parent's, guardian's, or other adult relative's 14 own home; or 15  (2) foster home, maternity home, or other adult-supervised supportive 16 living arrangement; however, the minor may satisfy the condition of eligibility 17 imposed by this subsection by residing in a foster home, maternity home, or other 18 adult-supervised supportive living arrangement only if 19  (A) the minor parent does not have a parent, legal guardian, or 20 other adult relative who is living and whose whereabouts are known; 21  (B) there is no living parent, legal guardian, or adult relative of 22 the minor parent who will allow the minor to live in the home of the parent, 23 legal guardian, or adult relative; or 24  (C) the department determines that the physical or emotional 25 health or safety of the minor parent or the minor's child would be jeopardized 26 if the minor and the minor's child lived in the same residence with any of the 27 minor's parents, legal guardian, or other adult relatives. 28  (b) Notwithstanding AS 47.25.360, the department shall, where possible, pay 29 assistance on behalf of a minor parent who is subject to the requirements of (a) of this 30 section to the minor's parent, legal guardian, or other adult relative, or, as applicable, 31 to the head of the adult-supervised supportive living arrangement where the minor

01 parent resides. 02  (c) The provisions of (a) of this section do not apply if 03  (1) the minor parent lived apart from the minor's parent or legal 04 guardian for either one year before the birth of the dependent child or one year before 05 the minor parent submitted the application for assistance; or 06  (2) the department otherwise determines under regulations that there is 07 good cause for waiving the requirements of (a) of this section in the case of a 08 particular minor parent. 09  (d) In this section, "minor parent" means a person who is under the age of 18, 10 who has never married, and is either 11  (1) the natural parent of a dependent child living in the same 12 household; or 13  (2) eligible for assistance as a pregnant woman. 14  (e) The department shall implement this section only to the extent that 15 implementation is not prohibited under federal law. To the extent that this section may 16 be implemented under federal law or under a waiver approved under federal law, its 17 provisions supersede inconsistent provisions of AS 47.25.310 - 47.25.420. 18 * Sec. 3. AS 47.25.320 is amended by adding new subsections to read: 19  (h) To the extent allowed under federal law or under a waiver approved under 20 federal law, the department shall reduce the shelter allowance used under AS 47.25.310 21 - 47.25.420 for a family whose shelter costs are lower than the standard shelter 22 allowance used by the department for similar families. The shelter allowance for a 23 family whose costs are below the standard allowance shall be an amount equal to the 24 family's actual verified shelter costs. In this subsection, 25  (1) "shelter allowance" means the portion of the benefit under 26 AS 47.25.310 - 47.25.420 that is allocated by the department for shelter costs; 27  (2) "shelter costs" means 28  (A) rental payments or mortgage payments for the family's 29 housing, including payments made for property or mortgage insurance and 30 property taxes; and 31  (B) the cost of utilities, including heat, electricity, basic

01 telephone service, water, sewer, and garbage services incurred for the family's 02 housing; the department may establish different utility cost standards for 03 different areas of the state and may use an average utility cost per month based 04 on estimated level payments over a 12-month period. 05  (i) To the extent allowed under federal law or under a waiver approved under 06 federal law, the department shall, for the months of July, August, and September, 07 reduce by 50 percent the maximum assistance for which the family is otherwise 08 eligible if the family's eligibility for assistance is based on the unemployment of the 09 family's principal wage earner. However, if the commissioner determines that 10 temporary economic conditions have resulted in decreased employment opportunities 11 during those months and a reduction in assistance would impose an undue hardship on 12 a family, the department may waive application of this paragraph with respect to that 13 family. 14 * Sec. 4. AS 47.25.360 is amended to read: 15  Sec. 47.25.360. GRANTING OF ASSISTANCE. Upon the completion of the 16 investigation the department shall decide whether the child is eligible for assistance 17 under AS 47.25.310 - 47.25.420, the amount of assistance, and the date on which it 18 starts. The department shall notify the person having custody of the child of its 19 decision. Except as provided in AS 47.25.315(b), the [THE] assistance shall be paid 20 monthly to the person having custody of the child upon order of the department. 21 * Sec. 5. AS 47.25 is amended by adding a new section to read: 22  Sec. 47.25.364. TIME LIMITS ON BENEFITS. (a) A family is not eligible 23 for more than 24 months of assistance under AS 47.25.310 - 47.25.420 during any 60 24 consecutive months that occur after the effective date of this section. 25  (b) The eligibility of a family described in (a) of this section shall be extended 26 beyond 24 months if the family 27  (1) includes an individual who is the caretaker or spouse of a caretaker 28 of a dependent child or who is a pregnant woman, who is 29  (A) determined, under regulations of the department, to be 30 physically or mentally unable to perform gainful activity; or 31  (B) a parent who is providing care for a child who is

01 experiencing a disability; or 02  (2) has cooperated with the department and every adult in the family 03 who has been assigned to an activity under AS 47.25.303 or 47.25.421 - 47.25.429 has 04 substantially complied with the requirements of the program to which the person was 05 assigned but 06  (A) a temporary and verified physical condition, as supported 07 by appropriate medical documentation, prevents adults in the family from 08 attaining and maintaining employment that would provide the family with net 09 income equal to or greater than what the family would receive from the 10 assistance grant; 11  (B) the department failed to provide services required under 12 AS 47.25.303(d) or 47.25.427 with respect to the family; or 13  (C) despite all appropriate efforts, the adults in the family have 14 been unable to find employment that would provide the family with total net 15 income equal to or greater than what the family would receive from assistance. 16  (c) Notwithstanding (a) of this section, a family that becomes ineligible for 17 assistance solely by operation of (a) of this section nevertheless remains eligible for 18 medical assistance under AS 47.07 for a period of 12 months after losing eligibility 19 for assistance under (a) of this section. 20  (d) The department shall implement this section only to the extent that 21 implementation is not prohibited under federal law. To the extent that this section may 22 be implemented under federal law or under a waiver approved under federal law, its 23 provisions supersede inconsistent provisions of AS 47.25.310 - 47.25.420. 24 * Sec. 6. AS 47.25 is amended by adding a new section to read: 25  Sec. 47.25.366. SCHOOL ATTENDANCE. (a) The department shall reduce 26 the assistance for which an assistance unit is otherwise eligible under AS 47.25.310 - 27 47.25.420 if a minor parent in the assistance unit fails, without good cause, to meet 28 standards of adequate levels of school attendance, as defined in regulations of the 29 department. The reduction under this subsection shall be achieved by disregarding the 30 needs of the person who failed to meet the school attendance standards. The person's 31 needs shall be disregarded until the minor parent complies.

01  (b) The department shall implement this section only to the extent that 02 implementation is not prohibited under federal law. To the extent that this section may 03 be implemented under federal law or under a waiver approved under federal law, its 04 provisions supersede inconsistent provisions of AS 47.25.310 - 47.25.420. 05 * Sec. 7. AS 47 is amended by adding a new chapter to read: 06 CHAPTER 27. ALASKA TEMPORARY ASSISTANCE PROGRAM. 07  Sec. 47.27.005. DUTIES OF THE DEPARTMENT. The department shall 08  (1) administer the Alaska temporary assistance program by providing 09 assistance with basic living expenses and self-sufficiency services to needy children 10 and their families under this chapter; 11  (2) establish, by regulation, program standards that will provide 12 incentives to work, incentives for financial planning, and opportunities to develop self- 13 sufficiency while providing assistance with basic living expenses; 14  (3) prepare, submit to the federal government, and amend, if necessary, 15 a state plan designed to assure that federal money is available to the state for the 16 operation of the program set out in this chapter to provide assistance for basic living 17 expenses and self-sufficiency services to needy children and their families consistent 18 with the state objectives identified in (2) of this section; 19  (4) adopt methods of program administration to ensure consistency with 20 the federal requirements under any successor federal program that replaces the aid to 21 families with dependent children program; 22  (5) make reports to the federal government as required under any 23 successor federal program that replaces the aid to families with dependent children 24 program, in the form and containing the information required, and comply with the 25 provisions that the federal government determines are necessary to ensure correct and 26 verifiable information on the program; 27  (6) provide to the legislature an annual executive summary of the 28 information required to be reported to the federal government under (5) of this section; 29  (7) conduct studies and research in order to evaluate and monitor the 30 effectiveness of the state program; and 31  (8) adopt regulations and take action to implement, interpret, and

01 administer the provisions of this chapter. 02  Sec. 47.27.010. ELIGIBLE FAMILIES. The following families may apply for 03 assistance under the Alaska temporary assistance program: 04  (1) a single parent who has the physical custody of one or more related 05 dependent children; 06  (2) a caretaker of one or more dependent children who is a relative to 07 at least the fifth degree; 08  (3) a woman in the last trimester of pregnancy; or 09  (4) a two-parent family with physical custody of one or more related 10 dependent children. 11  Sec. 47.27.015. DISQUALIFYING CONDITIONS. (a) A family is not 12 eligible for assistance under the Alaska temporary assistance program if the family 13 includes an adult who 14  (1) has received benefits under the Alaska temporary assistance 15 program, or a program of another state operated under a federal assistance grant 16 program for needy families, for a total of 60 months as the caretaker or spouse of a 17 caretaker of a dependent child or as a pregnant woman, unless the caretaker or 18 pregnant woman is 19  (A) determined, under regulations of the department to be 20 physically or mentally unable to perform gainful activity; 21  (B) a parent who is providing care for a child who is 22 experiencing a disability; or 23  (C) a family determined by the department to be exempt from 24 this paragraph by reason of hardship; the number of families for which an 25 exemption is in effect under this subparagraph may not exceed 10 percent or 26 the maximum percentage of families allowed an exemption under federal law, 27 whichever is greater; or 28  (2) is determined to be fleeing to avoid prosecution, custody, or 29 confinement after conviction, in this or another jurisdiction, for a crime that is 30 classified as a felony or a class A misdemeanor under AS 11 or the criminal laws of 31 the jurisdiction where the criminal activity was committed.

01  (b) A family is not eligible for assistance under this chapter for a period of 02 120 months beginning on the date the adult applicant for the family is convicted of 03 having fraudulently misrepresented the applicant's residence in order to receive 04 assistance in more than one state under a program financed with federal money under 05 any successor federal program that replaces the aid to families with dependent children 06 program. 07  (c) A family is not eligible for the following time periods if the family's 08 demonstrated need for assistance is due to a refusal of or voluntary separation from 09 suitable employment by the adult applicant, or a custodial parent or caretaker, without 10 good cause: 11  (1) one month for the first refusal or separation without good cause; 12  (2) six months for the second refusal or separation without good cause; 13 and 14  (3) 12 months for the third and subsequent refusal or separation without 15 good cause. 16  (d) A family is not eligible for assistance for up to 12 months if the family's 17 demonstrated need is due to an intentional transfer of an asset or assets at less than fair 18 market value for the purpose of establishing eligibility for assistance. A period of 19 ineligibility shall begin on the first day of the month following the transfer of the asset 20 or assets and shall remain in effect for a number of months equal to the fair market 21 value of the transferred asset or assets divided by the maximum payment amount for 22 the family as established under AS 47.27.025, or for 12 months, whichever is less. 23  (e) An Alaska temporary assistance program applicant or participant who is 24 administratively disqualified for making a false statement or misrepresentation knowing 25 it was false, or for knowingly failing to disclose a material fact, in order to obtain or 26 increase assistance or services under this chapter is not eligible to receive assistance 27 under this chapter for a period of 28  (1) six months following the first disqualification; 29  (2) 12 months following the second disqualification; and 30  (3) permanently following the third disqualification. 31  Sec. 47.27.020. APPLICATION AND REQUIREMENTS FOR ASSISTANCE.

01 (a) An applicant for assistance under the Alaska temporary assistance program shall 02 complete an application in writing, or by electronic means, and in a form specified by 03 the department. The applicant must be a pregnant woman or an individual who has 04 physical custody of the dependent child or children. The application must be complete 05 and must provide all of the information about the family and the child or children that 06 is requested by the department. The applicant shall provide all supporting 07 documentation for verification that the department determines to be necessary to 08 establish eligibility. 09  (b) On the application, each applicant shall attest to whether the family, at any 10 time, has received assistance from another state program that was established with 11 federal money under any successor federal program that replaces the aid to families 12 with dependent children program and whether the family has ever been disqualified 13 from receiving assistance under a successor federal program that replaces aid to 14 families with dependent children for the period for which the application has been 15 submitted. 16  (c) An applicant shall agree to cooperate with the department to establish a 17 family self-sufficiency plan and to participate in work activities when assigned by the 18 department. 19  (d) An applicant shall acknowledge the assignment of support rights as 20 required by AS 47.27.040(a) and shall agree to cooperate with the child support 21 enforcement agency of the Department of Revenue to the extent required under 22 AS 47.27.040(b). The applicant shall agree to report all child support payments 23 received directly by the family, during or for a period for which the family is receiving 24 assistance under this chapter, to the department within 15 days after receipt of those 25 payments. 26  (e) An applicant shall update the information requested in the application at 27 regular intervals as established by the department in regulation. The department may 28 conduct reviews of an application and audit the information provided as necessary to 29 determine eligibility. 30  Sec. 47.27.025. FAMILY ASSISTANCE. (a) The department shall provide 31 assistance for basic living expenses to families that establish eligibility based on a

01 determination of need that considers the family's available income, assets, and other 02 resources, as established by the department in regulation. Each dependent child in the 03 family is eligible for assistance except as otherwise provided in AS 47.27.015 or 04 47.27.027(b), and assistance received as a dependent child does not count against 05 eligibility for assistance under this chapter as a caretaker or spouse of a caretaker of 06 a dependent child or as a pregnant woman. 07  (b) The amounts of assistance for basic living expenses may not exceed the 08 following: 09  (1) for a dependent child living with a nonneedy relative caretaker, 10 $452 per month, plus $102 for each additional child; 11  (2) for a dependent child living with at least one needy parent or 12 relative caretaker, $821 per month, plus $102 for each additional child and $102 for 13 a second needy parent if the second parent is physically or mentally unable to perform 14 gainful activity as defined by department regulation; or 15  (3) for a family consisting solely of an eligible pregnant woman, $514 16 per month. 17  (c) The department shall, for the months of July, August, and September, 18 reduce by 50 percent the maximum assistance for which the family is otherwise 19 eligible if the family's eligibility for assistance is based on the unemployment of the 20 family's principal wage earner. However, if the commissioner determines that 21 temporary economic conditions have resulted in decreased employment opportunities 22 during those months and a reduction in assistance would impose an undue hardship on 23 a family, the department may waive application of this paragraph with respect to that 24 family. 25  (d) The department shall reduce assistance under this section to the extent that 26 the family's shelter costs are lower than the standard shelter allowance used by the 27 department for similar families. The shelter allowance for a family whose costs are 28 below the standard allowance shall be an amount equal to the family's actual verified 29 shelter costs. In this subsection, 30  (1) "shelter allowance" means the portion of the assistance provided 31 under this section that is allocated by the department for shelter costs;

01  (2) "shelter costs" means 02  (A) rental payments or mortgage payments for the family's 03 housing, including payments made for property or mortgage insurance and 04 property taxes; and 05  (B) the cost of utilities, including heat, electricity, basic 06 telephone service, water, sewer, and garbage services incurred for the family's 07 housing; the department may establish different utility cost standards for 08 different areas of the state and may use an average utility cost per month based 09 on estimated level payments over a 12-month period. 10  (e) The department may, instead of paying all of the cash assistance to a 11 family under this section, use all or part of the cash assistance as a wage subsidy paid 12 to an employer who employs a person in the family at a wage that is higher than the 13 wage subsidy. A subsidy under this subsection may not exceed one year in duration. 14  Sec. 47.27.026. DIVERSION PAYMENTS. (a) The department may offer 15 a lump-sum diversion payment in place of ongoing assistance and services to an adult 16 applicant who applies for assistance under AS 47.27.020 if the adult applicant is job 17 ready and is determined to need only short-term financial assistance to meet critical 18 needs in order to secure employment and support for the adult applicant's family. The 19 department shall set standards and conditions for diversion payments by regulation. 20  (b) The department may pay diversion benefits to an applicant's family only 21 if that family appears to be eligible for benefits under AS 47.27.020 and to include a 22 job-ready individual based on the information provided to the department in the 23 application completed under AS 47.27.020. The department may offer to an applicant 24 with the potential to participate in the diversion project a choice between 25  (1) having the Alaska temporary assistance program application 26 processed under AS 47.27.020 and the regulations adopted by the department; or 27  (2) having the application referred to the diversion project of the Alaska 28 temporary assistance program for a determination of project benefits under this section. 29  (c) The amount of the diversion payment must be sufficient to meet the 30 family's immediate needs as determined by the department and the participant. A 31 diversion payment may not exceed the amount the family would be eligible to receive

01 as cash assistance in the first two months of eligibility under AS 47.27.025 if the 02 family did not elect to receive a diversion payment. 03  (d) As a condition of a family receiving a diversion payment under this 04 section, the participant must sign an agreement that 05  (1) specifies the amount of the diversion payment and the needs it is 06 intended to cover; 07  (2) provides that, during the three-month period beginning with the 08 month in which the diversion payment was received, child support collected on behalf 09 of a child whose needs were considered in determining the diversion payment shall be 10 paid to the family; and 11  (3) provides that if the family reapplies for Alaska temporary assistance 12 program assistance under AS 47.27.020 during the three months beginning with the 13 month in which the family received a diversion payment, the diversion payment shall 14 be treated as unearned income, prorated over the three-month period, and deducted 15 from any Alaska temporary assistance program benefit the family may be eligible for 16 under the new application. 17  (e) A family that receives a diversion payment may not receive another 18 diversion payment before the 12th month following the month in which it last received 19 a diversion payment. 20  (f) To the extent that (d)(2) of this section is inconsistent with AS 25.27.120 21 or 25.27.130, or with another provision of this chapter, (d)(2) of this section governs. 22  Sec. 47.27.027. ASSISTANCE TO MINORS. (a) If an applicant under 23 AS 47.27.020 is not married, is under the age of 18, and has not been previously 24 emancipated under AS 09.55.590, the applicant must 25  (1) live in a home maintained by the applicant's parent, legal guardian, 26 or other adult relative, unless the applicant establishes that there is good cause, as 27 established by the department in regulation, to waive this requirement; if the 28 department waives this requirement, the applicant must live in an approved, adult- 29 supervised, supportive living environment; 30  (2) agree that assistance for basic living expenses on behalf of the 31 applicant's family may be paid to the applicant's parent, legal guardian, or other adult

01 relative, or, if applicable, to the adult head of the adult-supervised, supportive living 02 environment in which the applicant resides; and 03  (3) maintain attendance in a secondary school or other appropriate 04 training program unless the applicant has a high school diploma or general equivalent 05 diploma. 06  (b) The department shall reduce the assistance for which an assistance unit is 07 otherwise eligible under this chapter if a minor parent in the assistance unit fails, 08 without good cause, to meet standards of adequate levels of school attendance, as 09 defined in regulations of the department. The reduction under this subsection shall be 10 achieved by disregarding the needs of the person who failed to meet the school 11 attendance standards. The person's needs shall be disregarded until the minor parent 12 complies. 13  Sec. 47.27.030. FAMILY SELF-SUFFICIENCY PLAN. (a) A participant in 14 the Alaska temporary assistance 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 self-sufficiency services the department will provide to assist 19 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 must set a time period for the achievement 27 of self-sufficiency from assistance under the Alaska temporary assistance program. 28 That time period may not provide for any more than a total of 60 months of assistance 29 under the Alaska temporary assistance program. Unless the members of the family 30 who are not dependent children are all exempt under AS 47.27.035(b) - (d), the time 31 period for receiving assistance may not exceed a cumulative total of 24 months unless

01 each nonexempt person is in compliance with the work activity assignment made under 02 AS 47.27.035. 03  (c) A family is exempt from the requirement that the family have a self- 04 sufficiency plan under this section if the family 05  (1) does not include a needy adult; 06  (2) does not include an adult physically or mentally able to perform 07 gainful activity; or 08  (3) is receiving a diversion payment under AS 47.27.026. 09  Sec. 47.27.035. PARTICIPATION IN WORK ACTIVITIES. (a) An Alaska 10 temporary assistance program participant shall, after the participant's family has 11 received a cumulative total of 24 months of assistance or sooner if assigned to do so 12 by the department, participate in work activities as assigned by the department or its 13 designee in order for the family to continue to receive assistance or services from the 14 department under the Alaska temporary assistance program, unless the participant is 15 exempt from the work participation requirements under one or more of the exemptions 16 set out in (b) - (d) of this section. 17  (b) A parent or caretaker with a dependent child of up to 12 months of age 18 may be exempt from work participation requirements for up to 12 months, as 19 established in the family self-sufficiency plan. 20  (c) A parent or caretaker may be exempt from work participation requirements 21 in the family self-sufficiency plan if 22  (1) the parent or caretaker is providing home care for a child who is 23 experiencing a disability or a related, disabled person who requires 24-hour care; 24  (2) the parent or caretaker establishes an inability to participate for 25 medical reasons supported by documentation from a physician or other licensed 26 medical professional; 27  (3) the participation would impose an unreasonable hardship on the 28 family; or 29  (4) there is a dependent child in the home that has not yet attained six 30 years of age and the parent or caretaker demonstrates an inability to obtain needed 31 child care because appropriate child care is not available.

01  (d) The department may not require a person to participate in work activities 02 under (a) of this section 03  (1) if the person is the sole custodial parent for a child under six years 04 of age unless the department agrees to pay for the costs of child care determined by 05 the department to be necessary for the person's participation; and 06  (2) unless the department agrees to pay for transportation expenses 07 determined by the department to be necessary for the person's participation in the 08 activity. 09  (e) A participant in work activities under this section is not a state employee 10 for purposes of AS 39.25 (State Personnel Act). 11  (f) A participant in work activities under this section is not considered an 12 employee of the state or other public employer for purposes of AS 23.40.070 - 13 23.40.260 (Public Employment Relations Act) nor shall any provision of a collective 14 bargaining agreement entered into under AS 23.40.070 - 23.40.260 be construed to 15 interfere with the department's authority to assign participants to work activities as 16 authorized under this section. 17  Sec. 47.27.040. ASSIGNMENT OF SUPPORT RIGHTS; COOPERATION 18 WITH CHILD SUPPORT ENFORCEMENT AGENCY. (a) An Alaska temporary 19 assistance program applicant is considered to have assigned to the state, through the 20 child support enforcement agency of the Department of Revenue, all rights to accrued 21 and continuing child support, from all sources, that is due for the support of any 22 individuals in the family for whom support is sought. The assignment takes effect 23 upon a determination that the applicant's family is eligible for assistance under this 24 chapter. Except with respect to the amount of any unpaid support obligation accrued 25 under the assignment, the assignment terminates when the family ceases to be a 26 participant in the Alaska temporary assistance program. 27  (b) An Alaska temporary assistance program participant shall cooperate with 28 the child support enforcement agency of the Department of Revenue in establishing 29 paternity or establishing, modifying, or enforcing a child support order requiring the 30 payment of support by the noncustodial parent for a dependent child for whom Alaska 31 temporary assistance program assistance is received unless the participant establishes

01 good cause for refusing to cooperate. 02  (c) The department may distribute to an Alaska temporary assistance program 03 participant $50 per month from a monthly child support payment, or the amount of the 04 child support payment if it is less than $50, received by the child support enforcement 05 agency for the support of a child for whom Alaska temporary assistance program 06 assistance is paid. 07  Sec. 47.27.045. ALIENATION AND ATTACHMENT. Assistance granted 08 under this chapter is inalienable by assignment or transfer and is exempt from 09 garnishment, levy, or execution as is provided in AS 09.38. 10  Sec. 47.27.050. GRANTS AND CONTRACTS FOR SERVICES. (a) The 11 department may contract with or award grants to qualified entities in the state to 12 administer an Alaska temporary assistance program or a distinct part of the Alaska 13 temporary assistance program. The department may establish standards for the 14 administration of services under the grant or contract, including fees to be charged to 15 applicants for or recipients of those services. 16  (b) Contracts authorized under this section are to be administered in 17 accordance with AS 47.05.015. Grants authorized under this section are to be awarded 18 using requirements, established in regulation, that are substantially similar to those set 19 out in AS 47.05.015 for contracts. 20  (c) This section may not be construed to expand the powers of a municipality. 21  (d) In this section, "qualified entities" include municipalities, other political 22 subdivisions of the state, nonprofit corporations formed under AS 10.20, churches and 23 religious organizations, and incorporated and unincorporated businesses operating 24 within the state that meet the requirements established by the department in regulation. 25  Sec. 47.27.055. AGENCY COLLABORATION. (a) The department shall 26 coordinate with other state agencies that provide assistance, benefits, or services to 27 applicants that are eligible for and to participants in the Alaska temporary assistance 28 program in order to facilitate the application for and delivery of assistance, benefits, 29 or services to promote family self-sufficiency. Subject to appropriations, state agencies 30 may locate their facilities and operations near each other in order to improve service 31 delivery.

01  (b) The department may provide information received under this chapter to 02 other state agencies in order to facilitate the delivery of services. Information received 03 from an applicant for or participant in the Alaska temporary assistance program shall 04 be treated as confidential by all state agencies that share the information under this 05 section and is not open to public inspection or copying under AS 09.25.110 - 06 09.25.125. Misuse of public assistance lists or information is punishable as a violation 07 of AS 47.05.030. 08  (c) Departments in the executive branch shall cooperate in fulfilling the 09 purposes of this chapter, including, subject to appropriations, the establishment of 10 temporary positions that will provide job opportunities for families participating in the 11 Alaska temporary assistance program. Temporary positions established for this 12 purpose are in the exempt service under AS 39.25.110 but are not subject to 13 AS 39.25.195. An individual participating in the Alaska temporary assistance program 14 who holds a temporary position established for purposes of this subsection is not a 15 public employee for purposes of AS 23.40.070 - 23.40.260. 16  Sec. 47.27.060. JOB DEVELOPMENT. The department may establish 17 cooperative agreements with the Department of Labor, Department of Community and 18 Regional Affairs, Department of Education, and Department of Commerce and 19 Economic Development, and with other public or private sector organizations for the 20 purpose of developing job, training, and educational opportunities for families eligible 21 for assistance under this chapter. 22  Sec. 47.27.065. FEDERAL-STATE COOPERATION. In the administration 23 of this chapter, the department shall cooperate with the Secretary of the United States 24 Department of Health and Human Services and shall take actions necessary to comply 25 with the requirements of federal law to obtain public assistance block grants or other 26 federal assistance available for the purposes of this chapter. The department shall 27 make reports in the form and containing the information required to the Secretary of 28 the United States Department of Health and Human Services. The department may 29 cooperate with federal agencies charged with the administration of the federal public 30 assistance block grants and other financial assistance. 31  Sec. 47.27.070. ALASKA NATIVE ORGANIZATIONS' FAMILY

01 ASSISTANCE PROGRAMS. (a) The department may coordinate only with the 02 following Alaska Native organizations, as designated under federal law, in the 03 development of family assistance programs: 04  (1) Arctic Slope Native Association; 05  (2) Kawerak, Inc.; 06  (3) Maniilaq Association; 07  (4) Association of Village Council Presidents; 08  (5) Tanana Chiefs Conference; 09  (6) Cook Inlet Tribal Council; 10  (7) Bristol Bay Native Association; 11  (8) Aleutian and Pribilof Island Association; 12  (9) Chugachmiut; 13  (10) Tlingit Haida Central Council; 14  (11) Kodiak Area Native Association; 15  (12) Copper River Native Association; and 16  (13) Metlakatla Indian Community of the Annette Islands Reserve; 17 however, the department may cooperate with the Metlakatla Indian Community under 18 this chapter only if the community waives any claim to sovereign immunity with 19 respect to matters involved with the family assistance program. 20  (b) The department may cooperate with the Alaska Native organizations named 21 in (a) of this section to propose program criteria to the Secretary of the United States 22 Department of Health and Human Services in order to promote programs comparable 23 to the state program in the same area. 24  (c) Notwithstanding other provisions of this section, the department may 25 coordinate with an Alaskan Native organization under (a) of this section only if, for 26 purposes of this chapter, the Alaska Native organization incorporates a nonprofit entity 27 under state law and the nonprofit entity is active and in good standing, as determined 28 by the Department of Commerce and Economic Development. 29  Sec. 47.27.075. EMERGENCY ACCOUNT ESTABLISHED. There is 30 established within the general fund the Alaska temporary assistance program 31 emergency account. The account consists of appropriations that were made by the

01 legislature from federal money available for assistance under this chapter, including 02 lapsing money that was previously appropriated from federal money for the Alaska 03 temporary assistance program, but that were not expended or obligated in the fiscal 04 year for which they were appropriated. 05  Sec. 47.27.080. APPEALS; DISPUTE RESOLUTION. (a) An applicant or 06 participant who receives a determination from the department that denies, limits, or 07 modifies the assistance or services provided under this chapter may request a hearing 08 before the department or a representative of the department appointed for that purpose. 09 If a representative is appointed, the representative shall conduct the hearing under the 10 regulations adopted by the department. The appeal is not subject to AS 44.62.330 - 11 44.62.630. 12  (b) The department may require an applicant or participant to participate in an 13 informal dispute resolution process before a formal hearing. The department may 14 adopt regulations establishing the informal dispute resolution process. 15  Sec. 47.27.085. SANCTIONS; RECOVERY OF COSTS. (a) The department 16 shall penalize an Alaska temporary assistance program applicant or participant who, 17 without good cause, fails to comply with a condition of the family self-sufficiency plan 18 or who fails to participate in work activities required as a part of the Alaska temporary 19 assistance program by disregarding that person as a member of the family for purposes 20 of determining the amount of assistance given to the family. The period of time 21 during which the department shall disregard the noncomplying person for purposes of 22 determining the amount of the family's assistance is 23  (1) until the person is in compliance under this subsection if the person 24 has not previously been disregarded under this subsection; 25  (2) the longer of six months or until the person is in compliance under 26 this subsection if the person has previously been disregarded under (1) of this 27 subsection; 28  (3) the longer of 12 months or until the person is in compliance under 29 this subsection if the person has previously been disregarded under (2) of this section. 30  (b) An Alaska temporary assistance program applicant or participant who, 31 without good cause, fails to cooperate with establishment of paternity or the

01 establishment, modification, or enforcement of a support order for a child for whom 02 assistance is received is subject to a reduction or limitation in assistance or services 03 for the term of noncooperation as required by federal law and as specified in 04 regulations adopted by the department. 05  (c) An Alaska temporary assistance program applicant or participant who 06 receives assistance or services when not entitled to them under this chapter because 07 the information provided by the applicant or participant was inaccurate or incomplete 08 is liable to the department for the value of the assistance and services improperly 09 provided to the applicant or participant. 10  (d) In a civil action brought by the state to recover the value of assistance or 11 services improperly provided under this chapter, the state may recover costs of 12 investigation and prosecution of the civil action, including attorney fees as determined 13 under court rules. 14  Sec. 47.27.900. DEFINITIONS. In this chapter, 15  (1) "assistance for basic living expenses" means assistance provided 16 under the Alaska temporary assistance program that may include cash, vouchers, or 17 third-party vendor payments; 18  (2) "child care assistance" means payments made by the Department 19 of Health and Social Services or the Department of Community and Regional Affairs 20 to Alaska temporary assistance program participant families or to providers for the care 21 of children of the participant families; 22  (3) "child support" includes court-ordered or administratively ordered 23 child support, medical support, and spousal support; 24  (4) "child support enforcement agency" means the child support 25 enforcement agency in the Department of Revenue; 26  (5) "commissioner" means the commissioner of health and social 27 services; 28  (6) "department" means the Department of Health and Social Services; 29  (7) "dependent child" means an individual who 30  (A) has not attained 31  (i) 18 years of age; or

01  (ii) 19 years of age and is a full-time student in a 02 secondary school or in the equivalent level of vocational or technical 03 training; and 04  (B) is not an applicant under AS 47.27.020; 05  (8) "self-sufficiency services" means work-related services, community 06 service work referrals, child care assistance, and other services determined by the 07 department in regulation to promote family self-sufficiency; 08  (9) "work activities" includes job readiness assessments, on-the-job 09 training, education and vocational training, job sampling, job search requirements, 10 subsidized and unsubsidized work, and community work service. 11  Sec. 47.27.990. SHORT TITLE. This chapter may be cited as the Alaska 12 temporary assistance program. 13 * Sec. 8. AS 15.07.055(a) is amended to read: 14  (a) The following agencies are designated voter registration agencies: 15  (1) the Department of Public Safety, division of motor vehicles; 16  (2) divisions of the Department of Health and Social Services that 17 provide public assistance through the food stamp program, Medicaid program, Special 18 Supplemental Food Program for Women, Infants, and Children (WIC), and Alaska 19 temporary assistance program [AID TO FAMILIES WITH DEPENDENT 20 CHILDREN (AFDC) PROGRAM]; 21  (3) the division of the Department of Community and Regional Affairs 22 that is responsible for municipal and regional assistance programs; and 23  (4) all recruitment offices of the armed forces of the United States 24 located in Alaska. 25 * Sec. 9. AS 23.10.055 is amended by adding a new paragraph to read: 26  (14) an individual engaged in activities for a nonprofit religious, 27 charitable, civic, cemetery, recreational, or educational organization where the 28 employer-employee relationship does not, in fact, exist, and where services are 29 rendered to the organization under a work activity requirement of AS 47.27 (Alaska 30 temporary assistance program). 31 * Sec. 10. AS 23.40.075 is amended to read:

01  Sec. 23.40.075. ITEMS NOT SUBJECT TO BARGAINING. The parties may 02 not negotiate terms contrary to the 03  (1) [THE] reemployment rights for injured state employees under 04 AS 39.25.158; [OR] 05  (2) [THE] reemployment rights of the organized militia under 06 AS 26.05.075; 07  (3) authority of the Department of Health and Social Services 08 under AS 47.27.035 to assign Alaska temporary assistance program participants 09 to a work activity considered appropriate by the Department of Health and Social 10 Services; or 11  (4) authority for agencies to create temporary positions under 12 AS 47.27.055(c). 13 * Sec. 11. AS 25.20.050(f) is amended to read: 14  (f) If the child support enforcement agency is a party in an action in which 15 paternity is contested, the agency shall request the court to order the tests and 16 procedures described in (e) of this section. The agency may recover the costs of tests 17 as a cost of the action, except that costs may not be recovered from a person who is 18 a recipient of assistance [AID] under AS 47.27 (Alaska temporary assistance 19 program) [AS 47.25.310 - 47.25.420 (AID TO FAMILIES WITH DEPENDENT 20 CHILDREN)]. 21 * Sec. 12. AS 25.27.025 is amended to read: 22  Sec. 25.27.025. RATE OF INTEREST. The rate of interest imposed under 23 AS 25.27.020(a)(2)(C) shall be six percent a year [EQUAL THE RATE IMPOSED 24 UNDER AS 43.05.225] or a lesser rate that is the maximum rate of interest permitted 25 to be imposed under federal law. 26 * Sec. 13. AS 25.27.040(a) is amended to read: 27  (a) The agency may appear on behalf of minor children or their mother or 28 legal custodian or the state and initiate efforts to have the paternity of children born 29 out of wedlock determined by the court. When the agency is a party to a court action 30 in which paternity is contested, it shall request and pay for genetic testing and 31 procedures under AS 25.20.050(f). The agency may recover the costs of the tests as

01 a cost of the court action, except that costs may not be recovered from a person who 02 is a recipient of assistance [AID] under AS 47.27 (Alaska temporary assistance 03 program) [AS 47.25.310 - 47.25.420 (AID TO FAMILIES WITH DEPENDENT 04 CHILDREN)]. 05 * Sec. 14. AS 25.27.065(b) is amended to read: 06  (b) When the right to receive child support has been assigned to a 07 governmental entity, an agreement under (a) of this section that has not been adopted 08 as an administrative order of the agency is not effective during a period when the 09 obligee is receiving assistance under AS 47.07 or AS 47.27 [AS 47.25.310 - 10 47.25.420]. 11 * Sec. 15. AS 25.27.120(a) is amended to read: 12  (a) An obligor is liable to the state in the amount of assistance granted under 13 AS 47.07 and AS 47.27 [AS 47.25.310 - 47.25.420] to a child to whom the obligor 14 owes a duty of support except that, if a support order has been entered, the liability 15 of the obligor for assistance granted under AS 47.27 [AS 47.25.310 - 47.25.420] may 16 not exceed the amount of support provided for in the support order, and, if a medical 17 order of support has been entered, the liability of the obligor for assistance granted 18 under AS 47.07 may not exceed the amount of support provided for in the medical 19 order of support. 20 * Sec. 16. AS 25.27.125(b) is amended to read: 21  (b) The annual estimated balance in the account maintained by the 22 commissioner of administration under AS 37.05.142 may be used by the legislature to 23 make appropriations to the Department of Health and Social Services to carry out the 24 purposes of AS 47.10.230 - 47.10.260 and AS 47.27 [AS 47.25.310 - 47.25.420]. 25 * Sec. 17. AS 25.27.130(c) is amended to read: 26  (c) The recovery of any amount for which the obligor is liable that exceeds the 27 total assistance granted under AS 47.07 and AS 47.27 [AS 47.25.310 - 47.25.420] shall 28 be paid to the obligee. 29 * Sec. 18. AS 25.27.130(d) is amended to read: 30  (d) Except as provided in (f) of this section, if the obligee is not receiving 31 assistance under AS 47.07 or AS 47.27 [AS 47.25.310 - 47.25.420] at the time the

01 state recovers money in an action under this section, the recovery of any amount for 02 which the obligor is liable shall be distributed to the obligee for support payments, 03 including medical support payments, that have become due and unpaid since the 04 termination of assistance under AS 47.07 or AS 47.27 [AS 47.25.310 - 47.25.420] 05 under a support order in favor of the obligee. 06 * Sec. 19. AS 25.27.130(e) is amended to read: 07  (e) After payment to the obligee under (d) of this section, the state may retain 08 an amount not to exceed the total unreimbursed assistance paid on behalf of the 09 obligee under AS 47.07 or AS 47.27 [AS 47.25.310 - 47.25.420]. 10 * Sec. 20. AS 25.27.130(f) is amended to read: 11  (f) Notwithstanding (d) of this section, the state shall, if required under federal 12 law or regulations, distribute amounts recovered through offset of the obligor's federal 13 tax refund as past due support with first distribution to the state for unpaid support 14 assigned to the state under AS 47.07.025 and AS 47.27.040 [AS 47.25.345]. 15 * Sec. 21. AS 25.27.165(i) is amended to read: 16  (i) The agency may recover any costs it pays for genetic tests required by this 17 section, except that costs may not be recovered from a person who is a recipient of 18 assistance [AID] under AS 47.27 (Alaska temporary assistance program) 19 [AS 47.25.310 - 47.25.420 (AID TO FAMILIES WITH DEPENDENT CHILDREN)]. 20 * Sec. 22. AS 25.27 is amended by adding a new section to read: 21  Sec. 25.27.195. RELIEF FROM ADMINISTRATIVE ORDER. (a) A clerical 22 mistake in an administrative order issued by the agency or an error arising from an 23 oversight or omission by the agency may be corrected by the agency at any time on 24 the motion of an obligor. 25  (b) Upon the motion of an obligor, the agency may, at any time, vacate an 26 adminstrative support order issued by the agency under AS 25.27.160 that was based 27 on a default amount rather than on the obligor's actual ability to pay. 28  (c) Before an order may be corrected or vacated under (a) or (b) of this 29 section, the agency must send notice of the intended action to the obligor and the 30 custodian and provide an adequate opportunity for the obligor and custodian to be 31 heard on the issue.

01  (d) If an order is vacated under (b) of this section, the agency may at the same 02 time issue a new order establishing a support amount, based on information about the 03 obligor's income or on the Alaska average wage standard, for periods of time covered 04 by the previous order. Upon issuance of the new order, the agency may adjust the 05 obligor's account to reflect the support amounts established in the new order. In no 06 case may the agency adjust the obligor's account below zero. 07 * Sec. 23. AS 25.27 is amended by adding new sections to read: 08  Sec. 25.27.244. ADVERSE ACTION AGAINST DELINQUENT OBLIGOR'S 09 OCCUPATIONAL LICENSE. (a) The agency shall compile and maintain a list of 10 obligors who are not in substantial compliance with a support order or payment 11 schedule negotiated under (g)(1) of this section and who have received notice of the 12 arrearages at least 60 days before placement on the list. The list must include the 13 names, social security numbers, dates of birth, and last known addresses of the 14 obligors. The list shall be updated by the agency on a monthly basis. 15  (b) The agency shall, on a monthly basis, provide a copy of the list to each 16 licensing entity through a computer readable magnetic medium. A licensing entity 17 subject to this section shall implement procedures to accept and process the list. 18 Notwithstanding any other law to the contrary, a licensing entity may not issue or 19 renew a license for a person on the list except as provided in this section. 20  (c) Promptly after receiving an application from an applicant and before 21 issuing or renewing a license, a licensing entity shall determine whether the applicant 22 is on the most recent list provided by the agency. If the applicant is on the list, the 23 licensing entity shall immediately serve notice under (e) of this section of the licensing 24 entity's intent to withhold issuance or renewal of the license. The notice shall be 25 considered given when delivered personally to the applicant or deposited in the United 26 States mail addressed to the applicant's last known mailing address on file with the 27 licensing entity. 28  (d) A licensing entity shall issue a temporary license valid for a period of 150 29 days to an applicant whose name is on the list if the applicant is otherwise eligible for 30 a license. The temporary license may not be extended. Only one temporary license 31 may be issued during a regular license term and its validity shall coincide with the first

01 150 days of that license term. A license for the full or remainder of the license term 02 may be issued or renewed only upon compliance with this section. If a license or 03 application is denied under this section, money paid by the applicant or licensee shall 04 be refunded by the licensing entity after retention of the temporary license fee, if any. 05  (e) Notices for use under (c) of this section shall be developed by each 06 licensing entity under guidelines provided by the agency and are subject to approval 07 by the agency. The notice must include the address and telephone number of the 08 agency and shall emphasize the necessity of obtaining a release from the agency as a 09 condition for the issuance or renewal of a license. The notice must inform an 10 applicant whose license is governed by (d) of this section that the licensing entity shall 11 issue a temporary license for 150 calendar days under (d) of this section if the 12 applicant is otherwise eligible and that, upon expiration of that time period, the license 13 will be denied unless the licensing entity has received a release from the agency. The 14 agency shall also develop a form that the applicant may use to request a review by the 15 agency. A copy of this form shall be included with each notice sent under (c) of this 16 section. 17  (f) The agency shall establish review procedures consistent with this section 18 to allow an applicant to have the underlying arrearages and relevant defenses 19 investigated, to provide an applicant information on the process of obtaining a 20 modification of a support order, or to provide an applicant assistance in the 21 establishment of a payment schedule on arrearages if the circumstances warrant. 22  (g) If the applicant wishes to challenge being included on the list, the applicant 23 shall submit to the agency a written request for review within 30 days after receiving 24 the notice under (c) of this section by using the form developed under (e) of this 25 section. Within 30 days after receiving a written request for review, the agency shall 26 inform the applicant in writing of the agency's findings. The agency shall immediately 27 send a release to the appropriate licensing entity and the applicant if any of the 28 following conditions is met: 29  (1) the applicant is found to be in substantial compliance with each 30 support order applicable to the applicant or has negotiated an agreement with the 31 agency for a payment schedule on arrearages and is in substantial compliance with the

01 negotiated agreement; if the applicant fails to be in substantial compliance with an 02 agreement negotiated under this paragraph, the agency shall send to the appropriate 03 licensing entity a revocation of any release previously sent to the entity for that 04 applicant; 05  (2) the applicant has submitted a timely request for review to the 06 agency, but the agency will be unable to complete the review and send notice of 07 findings to the applicant in sufficient time for the applicant to file a timely request for 08 judicial relief within the 150-day period during which the applicant's temporary license 09 is valid under (d) of this section; this paragraph applies only if the delay in completing 10 the review process is not the result of the applicant's failure to act in a reasonable, 11 timely, and diligent manner upon receiving notice from the licensing entity that the 12 applicant's name is on the list; 13  (3) the applicant has, within 30 days after receiving the agency's 14 findings following a request for review under (2) of this subsection, filed and served 15 a request for judicial relief under this section, but a resolution of that relief will not 16 be made within the 150-day period of the temporary license under (d) of this section; 17 this paragraph applies only if the delay in completing the judicial relief process is not 18 the result of the applicant's failure to act in a reasonable, timely, and diligent manner 19 upon receiving the agency's notice of findings; or 20  (4) the applicant has obtained a judicial finding of substantial 21 compliance. 22  (h) An applicant is required to act with diligence in responding to notices from 23 the licensing entity and the agency with the recognition that the temporary license 24 granted under (d) of this section will lapse after 150 days and that the agency and, 25 where appropriate, the court must have time to act within that 150-day period. An 26 applicant's delay in acting, without good cause, that directly results in the inability of 27 the agency to complete a review of the applicant's request or the court to hear the 28 request for judicial relief within the required period does not constitute the diligence 29 required under this section that would justify the issuance of a release. 30  (i) Except as otherwise provided in this section, the agency may not issue a 31 release if the applicant is not in substantial compliance with the order for support or

01 is not in substantial compliance with an agreement negotiated under (g)(1) of this 02 section. The agency shall notify the applicant in writing that the applicant may request 03 any or all of the following: (1) judicial relief from the agency's decision not to issue 04 a release or the agency's decision to revoke a release under (g)(1) of this section; (2) 05 a judicial determination of substantial compliance; (3) a modification of the support 06 order. The notice must also contain the name and address of the court in which the 07 applicant may file the request for relief and inform the applicant that the applicant's 08 name shall remain on the list if the applicant does not request judicial relief within 30 09 days after receiving the notice. The applicant shall comply with all statutes and rules 10 of court implementing this section. This section does not limit an applicant's authority 11 under other law to request an order to show cause or notice of motion to modify a 12 support order or to fix a payment schedule on arrearages accruing under a support 13 order or to obtain a court finding of substantial compliance with a support order. 14  (j) A request for judicial relief from the agency's decision must state the 15 grounds on which relief is requested and the judicial action shall be limited to those 16 stated grounds. Judicial relief under this subsection is not an appeal, and shall be 17 governed by court rules adopted to implement this section. Unless otherwise provided 18 by court rule, the court shall hold an evidentiary hearing within 20 calendar days after 19 the filing of service on the opposing party. The court's decision shall be limited to a 20 determination of each of the following issues: 21  (1) whether there is a support order or a payment schedule on 22 arrearages; 23  (2) whether the petitioner is the obligor covered by the support order; 24 and 25  (3) whether the obligor is in substantial compliance with the support 26 order or payment schedule. 27  (k) If the court finds that the obligor is in substantial compliance with the 28 support order or payment schedule, the agency shall immediately send a release under 29 (g) of this section to the appropriate licensing entity and the applicant. 30  (l) When the obligor is in substantial compliance with a support order or 31 payment schedule, the agency shall mail to the applicant and the appropriate licensing

01 entity a release stating that the applicant is in substantial compliance. The receipt of 02 a release shall serve to notify the applicant and the licensing entity that, for the 03 purposes of this section, the applicant is in substantial compliance with the support 04 order or payment schedule unless the agency, under (a) of this section, certifies 05 subsequent to the issuance of a release that the applicant is once again not in 06 substantial compliance with a support order or payment schedule. 07  (m) The agency may enter into interagency agreements with the state agencies 08 that have responsibility for the administration of licensing entities as necessary to 09 implement this section to the extent that it is cost effective to implement the 10 interagency agreements. The agreements shall provide for the receipt by the other 11 state agencies and licensing entities of federal money to cover that portion of costs 12 allowable in federal law and regulation and incurred by the state agencies and licensing 13 entities in implementing this section. 14  (n) Notwithstanding any other provision of law, the licensing entities subject 15 to this section shall assess a fee for issuance of a temporary license under this section. 16 The licensing entity shall set the amount of the fee so that the fees collected under this 17 section, to the extent reasonable, cover the costs of implementing and administering 18 this section. 19  (o) The process described in (g) of this section is the sole administrative 20 remedy for contesting the issuance to the applicant of a temporary license or the denial 21 of a license under this section. The procedures specified in AS 44.62.330 - 44.62.630 22 do not apply to the denial or failure to issue or renew a license under this section. 23  (p) The agency and licensing entities, as appropriate, shall adopt regulations 24 necessary to implement this section. 25  (q) In this section, 26  (1) "applicant" means a person applying for issuance or renewal of a 27 license; 28  (2) "license" 29  (A) means, except as provided in (B) of this paragraph, a 30 license, certificate, permit, registration, or other authorization that, at the time 31 of issuance, will be valid for more than 150 days and that may be acquired

01 from a state agency to perform an occupation, including the following: 02  (i) license relating to boxing or wrestling under 03 AS 05.10; 04  (ii) authorization to perform an occupation regulated 05 under AS 08; 06  (iii) teacher certificate under AS 14.20; 07  (iv) authorization under AS 18.08 to perform emergency 08 medical services; 09  (v) asbestos worker certification under AS 18.31; 10  (vi) boiler operator's license under AS 18.60.395; 11  (vii) certificate of fitness under AS 18.62; 12  (viii) hazardous painting certification under AS 18.63; 13  (ix) security guard license under AS 18.65.400 - 14 18.65.490; 15  (x) license relating to insurance under AS 21.27; 16  (xi) employment agency permit under AS 23.15.330 - 17 23.15.520; 18  (xii) registration as a broker-dealer, agent, or investment 19 adviser under AS 45.55.030; 20  (xiii) certification as a pesticide applicator under 21 AS 46.03.320; 22  (xiv) certification as a storage tank worker or contractor 23 under AS 46.03.375; 24  (xv) certification as a water and wastewater works 25 operator under AS 46.30; 26  (xvi) a vessel license issued under AS 16.05.490 or 27 16.05.530; 28  (xvii) a commercial fishing license under AS 16.05.480, 29 including a crew member fishing license; 30  (xviii) a license issued under AS 47.35; and 31  (xix) a business license issued under AS 43.70;

01  (B) does not include 02  (i) an entry permit or interim-use permit issued under 03 AS 16.43; or 04  (ii) a driver's license issued under AS 28.15; 05  (3) "licensee" means a person holding a license or applying to renew 06 a license; 07  (4) "licensing entity" means the state agency that issues or renews a 08 license; in the case of a license issued or renewed by the Department of Commerce 09 and Economic Development after an applicant's qualifications are determined by 10 another agency, "licensing entity" means the department; 11  (5) "list" means the list of obligors compiled and maintained under (a) 12 of this section; 13  (6) "substantial compliance with a support order or payment schedule" 14 means that, with respect to a support order or a negotiated payment schedule under (g) 15 of this section, whichever is applicable, the obligor either has no arrearage or has an 16 arrearage in an amount that is not more than four times the monthly obligation under 17 the support order or payment schedule. 18  Sec. 25.27.246. ADVERSE ACTION AGAINST DELINQUENT OBLIGOR'S 19 DRIVER'S LICENSE. (a) The agency shall compile and maintain a list of obligors 20 who have a driver's license, are not in substantial compliance with a support order or 21 payment schedule negotiated under (f)(1) of this section, and have received notice of 22 the arrearages at least 60 days before placement on the list. The list must include the 23 names, social security numbers, dates of birth, and last known addresses of the 24 obligors. The list shall be updated by the agency on a monthly basis. 25  (b) The agency shall serve notice under (d) of this section to each person on 26 the list that the person's driver's license will be suspended in 150 days, and will not 27 be reissued or renewed the next time it is applied for if the person's name is on the 28 list at the time of the subsequent application, unless the licensee receives a release 29 from the agency. The notice shall be considered given when delivered personally to 30 the obligor or deposited in the United States mail addressed to the obligor's last known 31 mailing address on file with the agency.

01  (c) If the licensee fails to obtain a release during the 150-day period following 02 notice under (b) and (d) of this section, the agency shall notify the department that the 03 licensee's driver's license should be suspended and further renewals or applications 04 should be denied until the agency sends the department a release for the licensee. 05 Upon receiving the agency's notice under this subsection, the department shall suspend 06 the licensee's driver's license and may not issue or renew a driver's license for the 07 licensee until the department receives a release to do so from the agency. If a license 08 is suspended or an application is denied under this section, money paid by the 09 applicant or licensee may not be refunded by the department. 10  (d) The notice under (b) of this section must include the address and telephone 11 number of the agency and shall emphasize the necessity of obtaining a release from 12 the agency as a condition for avoiding suspension or denial of the person's driver's 13 license. The notice must also inform the licensee that, if a license is suspended or an 14 application is denied under this section, money paid by the licensee will not be 15 refunded by the department. The agency shall also develop a form that the licensee 16 may use to request a review by the agency. A copy of this form shall be included 17 with each notice sent under (b) of this section. 18  (e) The agency shall establish review procedures consistent with this section 19 to allow a licensee to have the underlying arrearages and relevant defenses 20 investigated, to provide a licensee with information on the process of obtaining a 21 modification of a support order, or to provide a licensee with assistance in the 22 establishment of a payment schedule on arrearages if the circumstances warrant. 23  (f) If a licensee wishes to challenge being included on the list, the licensee 24 shall submit to the agency a written request for review within 30 days after the notice 25 under (b) of this section was personally delivered or postmarked by using the form 26 developed under (d) of this section. Within 30 days after receiving a written request 27 for review, the agency shall inform the licensee in writing of the agency's findings. 28 The agency shall immediately send a release to the department and the licensee if any 29 of the following conditions is met: 30  (1) the licensee is found to be in substantial compliance with each 31 support order applicable to the licensee or has negotiated an agreement with the agency

01 for a payment schedule on arrearages and is in substantial compliance with the 02 negotiated agreement; if the licensee fails to be in substantial compliance with an 03 agreement negotiated under this paragraph, the agency shall send to the department a 04 revocation of any release previously sent to the entity for that licensee; 05  (2) the licensee has submitted a timely request for review to the 06 agency, but the agency will be unable to complete the review and send notice of 07 findings to the licensee in sufficient time for the licensee to file a timely request for 08 judicial relief within the 150-day period before the licensee's license will be suspended 09 under (c) of this section; this paragraph applies only if the delay in completing the 10 review process is not the result of the licensee's failure to act in a reasonable, timely, 11 and diligent manner upon receiving notice from the agency that the licensee's driver's 12 license will be suspended in 150 days; 13  (3) the licensee has, within 30 days after receiving the agency's 14 findings following a request for review under (2) of this subsection, filed and served 15 a request for judicial relief under this section, but a resolution of that relief will not 16 be made within the 150-day period before license suspension under (c) of this section; 17 this paragraph applies only if the delay in completing the judicial relief process is not 18 the result of the licensee's failure to act in a reasonable, timely, and diligent manner 19 upon receiving the agency's notice of findings; or 20  (4) the licensee has obtained a judicial finding of substantial 21 compliance. 22  (g) A licensee is required to act with diligence in responding to notices from 23 the agency with the recognition that the person's driver's license will be suspended 24 after 150 days or that a subsequent license will not be issued and that the agency and, 25 where appropriate, the court must have time to act within that 150-day period or before 26 the subsequent license is needed, as applicable. A licensee's delay in acting, without 27 good cause, that directly results in the inability of the agency to complete a review of 28 the licensee's request or the court to hear the request for judicial relief within the 29 required period does not constitute the diligence required under this section that would 30 justify the issuance of a release. 31  (h) 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 (f)(1) of this 03 section. The agency shall notify the licensee in writing that the licensee 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 (f)(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 licensee may file the request for relief and inform the licensee that the licensee's name 09 shall remain on the list if the licensee does not request judicial relief within 30 days 10 after receiving the notice. The licensee shall comply with all statutes and rules of 11 court implementing this section. This section does not limit a licensee'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  (i) 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  (j) 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 (f) of this section to the department and the licensee. 31  (k) When the obligor is in substantial compliance with a support order or

01 payment schedule, the agency shall mail to the applicant and the department a release 02 stating that the licensee is in substantial compliance. The receipt of a release shall 03 serve to notify the licensee and the department that, for the purposes of this section, 04 the applicant is in substantial compliance with the support order or payment schedule 05 unless the agency, under (a) of this section, certifies subsequent to the issuance of a 06 release that the licensee is once again not in substantial compliance with a support 07 order or payment schedule. 08  (l) The process described in (f) of this section is the sole administrative 09 remedy for contesting the suspension or the denial of a driver's license under this 10 section. The procedures specified in AS 28 or AS 44.62.330 - 44.62.630 do not apply 11 to the suspension or failure to issue or renew a license under this section. 12  (m) The agency and department, as appropriate, shall adopt regulations 13 necessary to implement this section. 14  (n) In this section, 15  (1) "department" means the Department of Public Safety; 16  (2) "driver's license" or "license" means a driver's license, as defined 17 in AS 28.40.100; 18  (3) "licensee" means a person holding or requesting a driver's license; 19  (4) "list" means the list of obligors compiled and maintained under (a) 20 of this section; 21  (5) "substantial compliance with a support order or payment schedule" 22 means that, with respect to a support order or a negotiated payment schedule under (f) 23 of this section, whichever is applicable, the obligor either has no arrearage or has an 24 arrearage in an amount that is not more than four times the monthly obligation under 25 the support order or payment schedule. 26 * Sec. 24. AS 36.30.850(b)(11) is amended to read: 27  (11) agreements with providers of services under AS 44.47.250; 28 AS 47.07; AS 47.08; AS 47.10; AS 47.17; AS 47.24; and AS 47.27, including 29 contractors under AS 47.27.050 [AS 47.25.195 AND 47.25.310]; 30 * Sec. 25. AS 39.25.110 is amended by adding a new paragraph to read: 31  (31) a participant in the Alaska temporary assistance program under

01 AS 47.27 who holds a temporary position with the state in order to obtain job training 02 or experience. 03 * Sec. 26. AS 44.19.626(a) is amended to read: 04  (a) As the lead state planning and coordinating entity, the Alaska Human 05 Resource Investment Council has responsibility, to the extent authorized by federal and 06 state law, for planning and coordinating federal, state, and local efforts in human 07 resource programs in this state related to employment training, including the work 08 activities of the Alaska temporary assistance program under AS 47.27. 09 * Sec. 27. AS 44.29.020(a) is amended to read: 10  (a) The Department of Health and Social Services shall administer the state 11 programs of public health and social services, including 12  (1) maternal and child health services; 13  (2) preventive medical services; 14  (3) public health nursing services; 15  (4) nutrition services; 16  (5) health education; 17  (6) laboratories; 18  (7) mental health treatment and diagnosis; 19  (8) management of state institutions, except for adult penal institutions; 20  (9) medical facilities; 21  (10) adult public assistance; 22  (11) Alaska temporary assistance program [AID TO FAMILIES 23 WITH DEPENDENT CHILDREN]; 24  (12) child welfare services; 25  (13) general relief; and 26  (14) licensing and supervision of child care facilities. 27 * Sec. 28. AS 44.47.280 is amended to read: 28  Sec. 44.47.280. ELIGIBILITY OF FAMILIES FOR BENEFITS. The 29 department shall determine the eligibility of families for day care benefits on the basis 30 of the following factors: 31  (1) [NET] income of the family, including salary, alimony, child

01 support, retirement benefits, social security, and any other source of income; 02  (2) number of children in the family; 03  (3) whether there is one parent or guardian solely responsible for the 04 care of the family [; 05  (4) REPEALED 06  (5) OTHER FACTORS FOUND RELEVANT BY THE 07 DEPARTMENT]. 08 * Sec. 29. AS 47.05.010(1) is amended to read: 09  (1) administer adult public assistance, the Alaska temporary 10 assistance program [AID TO FAMILIES WITH DEPENDENT CHILDREN], and all 11 other assistance programs, and receive and spend money [FUNDS] made available to 12 it; 13 * Sec. 30. AS 47.05.010(2) is amended to read: 14  (2) adopt regulations necessary for the conduct of its business and for 15 carrying out federal and state laws granting adult public assistance, temporary 16 assistance for needy families under the Alaska temporary assistance program 17 [AID TO FAMILIES WITH DEPENDENT CHILDREN], and other assistance; 18 * Sec. 31. AS 47.05.010(5) is amended to read: 19  (5) cooperate with the federal government in matters of mutual concern 20 pertaining to adult public assistance, the Alaska temporary assistance program [AID 21 TO FAMILIES WITH DEPENDENT CHILDREN], and other forms of public 22 assistance; 23 * Sec. 32. AS 47.05.010 is amended by adding a new paragraph to read: 24  (14) provide education and health-related services and referrals 25 designed to reduce the number of out-of-wedlock pregnancies and the number of 26 induced pregnancy terminations in the state. 27 * Sec. 33. AS 47.05.020 is amended to read: 28  Sec. 47.05.020. REGULATIONS TO PROTECT CONFIDENTIAL PUBLIC 29 ASSISTANCE RECORDS. The power of the department to adopt regulations includes 30 the power to adopt and enforce reasonable regulations governing the custody, use, and 31 preservation of the records, papers, files, and communications of the department. The

01 regulations must provide that financial information concerning an eligiblity 02 determination of a person applying for or receiving assistance under the Alaska 03 temporary assistance program shall be disclosed to a legislator on request of the 04 legislator in connection with official purposes within the scope of the legislator's 05 legislative functions and related to the administration of the program consistent 06 with federal law. When, under the law, names and addresses of recipients of public 07 assistance are furnished to or held by another agency or department of government the 08 agency or department of government shall adopt regulations necessary to prevent the 09 publication of the lists or their use for purposes not directly connected with the 10 administration of public assistance and legislative functions. A legislator to whom 11 information relating to the Alaska temporary assistance program is disclosed 12 under this section may not further disclose the information except to another 13 legislator and then only in connection with official purposes within each 14 legislator's legislative functions and related to the administration of the program 15 consistent with federal law. 16 * Sec. 34. AS 47.05.030 is amended to read: 17  Sec. 47.05.030. MISUSE OF PUBLIC ASSISTANCE LISTS AND 18 RECORDS. Except as provided in (b) of this section and for purposes directly 19 connected with the administration of general assistance, adult public assistance, the day 20 care assistance program authorized under AS 44.47.250 - 44.47.310, or the Alaska 21 temporary assistance program [AID TO FAMILIES WITH DEPENDENT 22 CHILDREN], and in accordance with the regulations of the department, a person may 23 not solicit, disclose, receive, make use of, or authorize, knowingly permit, participate 24 in, or acquiesce in the use of, a list of or names of, or information concerning, persons 25 applying for or receiving the assistance directly or indirectly derived from the records, 26 papers, files, or communications of the department or subdivisions or agencies of the 27 department, or acquired in the course of the performance of official duties. 28 * Sec. 35. AS 47.05.030 is amended by adding a new subsection to read: 29  (b) It is not a violation of (a) of this section for the department or an employee 30 of the department to disclose to a legislator, or for a legislator to solicit, receive, or 31 make use of, financial information concerning an eligibility determination of a person

01 applying for or receiving assistance under the Alaska temporary assistance program 02 if the disclosure, solicitation, receipt, and use are for official purposes in connection 03 with the legislator's official functions and related to the administration of the program 04 consistent with federal law. Information provided to a legislator under this subsection 05 shall remain confidential and may not be further disclosed except as provided in 06 AS 47.05.020. 07 * Sec. 36. AS 47.05 is amended by adding a new section to read: 08  Sec. 47.05.032. DISCLOSURES TO LEGISLATORS. A legislator to whom 09 confidential information is disclosed under AS 47.05.020 - 47.05.030 is not subject to 10 a penalty for further disclosure of the information unless, at the time the information 11 was provided to the legislator, the legislator was given written notification that the 12 material was confidential. 13 * Sec. 37. AS 47.05.080(a) is amended to read: 14  (a) Benefit overpayments collected by the department in administering 15 programs under AS 47.25.120 - 47.25.300 (general relief), [AS 47.25.310 - 47.25.420 16 (AID TO FAMILIES WITH DEPENDENT CHILDREN),] AS 47.25.430 - 47.25.615 17 (adult public assistance), [AND] AS 47.25.975 - 47.25.990 (food stamps), and 18 AS 47.27 (Alaska temporary assistance program) shall be remitted to the 19 Department of Revenue under AS 37.10.050(a). 20 * Sec. 38. AS 47.07.020(b)(1) is amended to read: 21  (1) persons eligible for but not receiving assistance under any plan of 22 the state approved under [42 U.S.C. 601 - 615 (TITLE IV-A, SOCIAL SECURITY 23 ACT, AID TO FAMILIES WITH DEPENDENT CHILDREN) OR] 42 U.S.C. 1381 24 - 1383c (Title XVI, Social Security Act, Supplemental Security Income) or a federal 25 program designated as the successor to the aid to families with dependent 26 children program; 27 * Sec. 39. AS 47.07.020(b)(5) is amended to read: 28  (5) persons under age 21 who are in an institution designated as an 29 intermediate care facility for the mentally retarded and who are financially eligible as 30 determined by the standards of the federal program designated as the successor to 31 the aid to families with dependent children program;

01 * Sec. 40. AS 47.07.020(b)(7) is amended to read: 02  (7) persons under age 21 who are receiving active treatment in a 03 psychiatric hospital and who are financially eligible as determined by the standards of 04 the federal program designated as the successor to the [42 U.S.C. 601 - 615 05 (TITLE IV-A, SOCIAL SECURITY ACT,] aid to families with dependent children 06 program [)]; 07 * Sec. 41. AS 47.07.020(b)(8) is amended to read: 08  (8) persons under age 21 and not covered under (a) of this section, who 09 would be eligible for benefits under the federal program designated as the successor 10 to the aid to families with dependent children program, except that they have the care 11 and support of both their natural and adoptive parents; 12 * Sec. 42. AS 47.07.020(b)(9) is amended to read: 13  (9) pregnant women not covered under (a) of this section and who meet 14 the income and resource requirements of the federal program designated as the 15 successor to the aid to families with dependent children program; 16 * Sec. 43. AS 47.07.035(26) is amended to read: 17  (26) individuals under age 21 who are not eligible for benefits under 18 the federal program designated as the successor to the aid to families with 19 dependent children program because they are not deprived of one or more of their 20 natural or adoptive parents; 21 * Sec. 44. Rule 90.3(c), Alaska Rules of Civil Procedure, is amended by adding a new 22 paragraph to read: 23  (3) In addition to ordering a parent to pay child support as calculated 24 under this rule, the court may, in appropriate circumstances, order one or more 25 grandparents of a child to pay child support to an appropriate person in an amount 26 determined by the court to serve the best interests of the child. However, the amount 27 may not exceed the smaller of (A) a proportionate share of the amount required to 28 provide care in a supervised setting to the grandchild, as determined by the court, or 29 (B) the amount that would have been awarded if the child's parents had the incomes 30 of the child's grandparents and paragraphs (a) and (b) were applied. An order under 31 this paragraph may be issued only with respect to a child whose parents are both

01 minors, and the order terminates when either parent becomes 18 years of age. The 02 court must specify in writing the reasons why it considers it to be appropriate to order 03 a grandparent to pay child support under this paragraph and the factors considered in 04 setting the amount of the child support award. In this paragraph, "grandparent" means 05 the natural or adoptive parent of the minor parent. 06 * Sec. 45. AS 25.27.244 and 25.27.246, added by sec. 23 of this Act, are repealed. 07 * Sec. 46. AS 43.05.225(2)(B) is repealed. 08 * Sec. 47. AS 47.25.310(c) is repealed. 09 * Sec. 48. AS 47.25.301, 47.25.302, 47.25.303, 47.25.305, 47.25.306, 47.25.307, 47.25.308, 10 and 47.25.309 are repealed on the date established under sec. 64 of this Act. 11 * Sec. 49. AS 47.25.310, 47.25.311, 47.25.315, 47.25.320, 47.25.330, 47.25.340, 47.25.345, 12 47.25.350, 47.25.360, 47.25.364, 47.25.365, 47.25.366, 47.25.370, 47.25.380, 47.25.395, 13 47.25.400, 47.25.410, 47.25.420, 47.25.421, 47.25.423, 47.25.425, 47.25.427, and 47.25.429 14 are repealed on the date established under sec. 59 of this Act. 15 * Sec. 50. AMENDMENT OF COURT RULE. AS 25.27.195(d), added by sec. 22 of this 16 Act, has the effect of amending Rule 90.3(h)(2) by allowing retroactive modification of child 17 support arrearages when a child support order is vacated because it was based on a default 18 amount rather than on the obligor's actual ability to pay. 19 * Sec. 51. VOTE REQUIRED FOR COURT RULE CHANGES. The court rule changes 20 in secs. 22, 44, and 50 of this Act may take effect with the affirmative vote of a majority of 21 the membership of each house, notwithstanding art. IV, sec. 15, Constitution of the State of 22 Alaska, because the rule being amended is not a rule governing practice or procedure. 23 * Sec. 52. WAIVER APPLICATIONS. The Department of Health and Social Services shall 24 promptly apply to the federal government for waivers if the department determines that waivers 25 are necessary to implement AS 47.25.309, added by sec. 1 of this Act, or any part of secs. 2 - 26 6 or 47 of this Act. If waivers are not necessary for any particular provision, the department 27 shall promptly submit a state plan amendment to the federal government to implement the 28 change made by the provision. 29 * Sec. 53. REPORT. (a) In furtherance of the public policy of increasing child support 30 enforcement and collections, the child support enforcement agency shall, within 18 months 31 after the effective date of this section, make a report to the governor based on data collected

01 by the licensing entities and the agency in a format prescribed by the agency. The report must 02 contain 03 (1) the number of delinquent obligors on the lists maintained by the agency 04 under AS 25.27.244 - 25.27.246, enacted by sec. 23 of this Act, at the end of the first 12 05 months during which the lists were maintained; 06 (2) the number of delinquent obligors who also were applicants or licensees 07 subject to AS 25.27.244 - 25.27.246, enacted by sec. 23 of this Act, during the first 12 months 08 during which AS 25.27.244 - 25.27.246 were applicable; 09 (3) the number of new licenses and renewals that were delayed or denied and 10 temporary licenses issued subject to AS 25.27.244 and the number of new licenses and 11 renewals granted following receipt by licensing entities of releases under AS 25.27.244 by the 12 end of the first 12 months during which AS 25.27.244 was applicable; 13 (4) the number of licenses under AS 28.15 that were suspended under 14 AS 25.27.246 and the number of licenses under AS 28.15 that were reinstated following 15 receipt by the Department of Public Safety of releases under AS 25.27.246 by the end of the 16 first 12 months during which AS 25.27.246 was applicable; and 17 (5) the costs incurred in the implementation and enforcement of AS 25.27.244 18 - 25.27.246, enacted by sec. 23 of this Act, during the first 12 months during which 19 AS 25.27.244 - 25.27.246 were applicable; 20 (b) A licensing entity receiving an inquiry from the agency under (a) of this section 21 shall cooperate with the agency. When queried as to the licensed status of an applicant who 22 has had a license denied or suspended under AS 25.27.244 or 25.27.246 or has been granted 23 a temporary license under AS 25.27.244, the licensing entity shall respond only that the 24 license was denied or suspended or that the temporary license was issued. 25 * Sec. 54. REDETERMINATION OF ASSISTANCE LEVELS. (a) On the first day of 26 the First Regular Session of the Twenty-First Alaska State Legislature, the Department of 27 Health and Social Services shall submit to the legislature the results of a comprehensive needs 28 study that includes estimates of the basic assistance amounts required by Alaska families who 29 are receiving aid to families with dependent children (AFDC) or assistance under a program 30 that is a successor to AFDC. 31 (b) If the First Regular Session of the Twenty-First Alaska State Legislature does not

01 enact a bill that becomes law that adjusts the payment structure or the levels of assistance 02 provided under AFDC or its successor program, each maximum assistance amount under 03 AFDC or its successor program, as applicable, is reduced, effective January 1, 2000, by the 04 percentage by which the total state funds appropriated for AFDC or its successor program for 05 operation during fiscal year 1999 exceeded the total state funds appropriated for AFDC or its 06 successor program for operation during fiscal year 1997, with no adjustment required if the 07 1999 state funds did not exceed the 1997 state funds. 08 * Sec. 55. TRANSITION. (a) The Department of Health and Social Services and the 09 Department of Revenue, child support enforcement agency, may proceed to adopt regulations 10 necessary to implement this Act. Regulations to implement a provision of this Act take effect 11 under AS 44.62 (Administrative Procedure Act), but not before the effective date of the 12 relevant provision of this Act. 13 (b) Regulations adopted by the Department of Health and Social Services under the 14 authority of AS 47.25.310 - 47.25.420 before the effective dates of secs. 1 - 7 of this Act 15 remain in effect, and may be implemented and enforced to the extent that the regulations are 16 not inconsistent with the corresponding provisions of secs. 1 - 7 of this Act, until the 17 department has made regulation changes under AS 44.62 (Administrative Procedure Act) to 18 implement this Act. 19 (c) Notwithstanding sec. 46 of this Act, an application for assistance filed under 20 AS 47.25.310 - 47.25.420 remains effective as an application for the Alaska temporary 21 assistance program following the effective date of sec. 7 of this Act until the Department of 22 Health and Social Services requires a new application with the development of a family self- 23 sufficiency plan; new applications shall be required no later than one year following the 24 effective date of sec. 7 of this Act. 25 (d) Litigation, hearings, investigations, collection actions, and other proceedings 26 pending under a law amended or repealed by this Act continue in effect and may be 27 completed by the Department of Health and Social Services notwithstanding the repeal or 28 amendment under the Act. 29 * Sec. 56. APPLICABILITY. (a) AS 47.25.311(a), added by sec. 2 of this Act, and 30 AS 47.27.015(e), added by sec. 7 of this Act, apply to disqualifications imposed on or after the 31 effective dates of AS 47.25.311(a) and AS 47.27.015(e), respectively.

01 (b) AS 47.25.311(c), added by sec. 2 of this Act, and AS 47.27.015(c), added by sec. 02 7 of this Act, apply to refusals to accept, and separations from, suitable employment without 03 good cause that occur on or after the effective dates of AS 47.25.311(c) and AS 47.27.015(c), 04 respectively. 05 (c) AS 47.25.315, added by sec. 2 of this Act, and AS 47.27.027, added by sec. 7 of 06 this Act, apply to minors who apply or reapply for assistance under AS 47.25.310 - 47.25.420 07 or AS 47.27.020, respectively, on or after the effective dates of AS 47.25.315 and AS 47.27.027, 08 respectively. 09 * Sec. 57. AS 47.25.301, added by sec. 1 of this Act, and secs. 52, 55(a) and (b), and 56 of 10 this Act take effect immediately under AS 01.10.070(c). 11 * Sec. 58. Sections 12, 22, 44, 46, 50, 51, and 55(c) and (d) of this Act take effect 12 October 1, 1996. 13 * Sec. 59. Sections 7 - 11, 13 - 21, 24 - 43, and 49 of this Act take effect October 1, 1996, 14 except that if the federal law providing for the aid to families with dependent children 15 program has not been repealed by that date, those sections take effect on the first day after 16 October 1, 1996, that the repeal of the federal aid to families with dependent children program 17 is effective. The commissioner of health and social services shall notify the revisor of statutes 18 and the lieutenant governor of the effective date of the repeal of the federal law providing for 19 the aid to families with dependent children program. 20 * Sec. 60. AS 47.25.302 - 47.25.309, enacted by sec. 1 of this Act, secs. 2 - 6 of this Act, 21 and sec. 47 of this Act take effect on the earlier of the following dates: 22 (1) the effective date for which the federal government approves and authorizes 23 implementation of a state plan amendment effecting the change; or 24 (2) the effective date of a waiver received from the federal government that 25 authorizes implementation of the provision. 26 * Sec. 61. Sections 23 and 53 of this Act take effect on the effective date of a provision 27 of a federal law that requires the state to have procedures under which the state has authority 28 to withhold or suspend, or to restrict the use of, driver's licenses or professional and 29 occupational licenses of individuals owing overdue child support. 30 * Sec. 62. Section 45 of this Act takes effect two years after the effective date established 31 under sec. 57 of this Act.

01 * Sec. 63. The commissioner of health and social services shall notify the revisor of 02 statutes and the lieutenant governor of the effective date of 03 (1) the sections and parts of sections governed by sec. 60 of this Act and of 04 whether the effective date was determined by a waiver approval or a determination that a 05 waiver is not necessary; and 06 (2) sec. 23 of this Act. 07 * Sec. 64. Section 48 of this Act takes effect on the earlier of July 1, 2003, or the effective 08 date established in sec. 59 of this Act.