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SB 206: "An Act relating to welfare reform by establishing the Alaska Family Independence Program; repealing the aid to families with dependent children and job opportunity and basic skills programs; relating to an exemption to Alaska Wage and Hour Act for certain work activities of the Alaska Family Independence Program; relating to the duty to support children of minor parents; 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 for the general relief program and Alaska Family Independence Program; relating to eligibility for day care benefits administered by the Department of Community and Regional Affairs; authorizing the Department of Health and Social Services to operate a public assistance program consistent with the Alaska Family Independence Program under federal waivers and providing certain immunity from liability for activities of that program; amending Alaska Rule of Civil Procedure 90.3; and providing for an effective date."

00SENATE BILL NO. 206 01 "An Act relating to welfare reform by establishing the Alaska Family 02 Independence Program; repealing the aid to families with dependent children and 03 job opportunity and basic skills programs; relating to an exemption to Alaska 04 Wage and Hour Act for certain work activities of the Alaska Family 05 Independence Program; relating to the duty to support children of minor 06 parents; relating to certain licenses and applications for a license for persons 07 who are not in substantial compliance with orders, judgments, or payment 08 schedules for child support; relating to an exemption to the state procurement 09 code for certain services for the general relief program and Alaska Family 10 Independence Program; relating to eligibility for day care benefits administered 11 by the Department of Community and Regional Affairs; authorizing the 12 Department of Health and Social Services to operate a public assistance program 13 consistent with the Alaska Family Independence Program under federal waivers 14 and providing certain immunity from liability for activities of that program;

01 amending Alaska Rule of Civil Procedure 90.3; and providing for an effective 02 date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. PURPOSE. The purpose of this Act is to 05 (1) establish the Alaska Family Independence Program; 06 (2) encourage the well-being of Alaska's children by maintaining a safety net 07 for children living in poverty in this state by providing assistance to meet the basic needs of 08 Alaskan children and their families; 09 (3) set limits on benefits and establish incentives to encourage public assistance 10 recipients to become self-sufficient; 11 (4) develop job opportunities and promote work as the best means to achieve 12 family self-sufficiency; 13 (5) prevent dependency by diverting eligible families receiving assistance to 14 work and self-sufficiency; 15 (6) integrate service delivery by colocating access to job training and 16 placement services with family assistance offices; 17 (7) increase the effectiveness of the child support collection program to assist 18 in family self-sufficiency and meet federal program requirements; 19 (8) require coordination between state agencies, local communities, Alaska 20 Native organizations, businesses, and the federal government to develop a program that will 21 move Alaska families to self-sufficiency; and 22 (9) enable the state to develop and maintain a family independence program 23 that meets the requirements for federal financing. 24 * Sec. 2. AS 47 is amended by adding a new chapter to read: 25 CHAPTER 27. ALASKA FAMILY INDEPENDENCE PROGRAM. 26  Sec. 47.27.005. DUTIES OF THE DEPARTMENT. The department shall 27  (1) administer the Alaska Family Independence Program (AFIP) by 28 providing assistance with basic living expenses and self-sufficiency services to needy 29 children and their families under this chapter; 30  (2) establish, by regulation, program standards that will provide 31 incentives to work, incentives for financial planning, and opportunities to develop self-

01 sufficiency, while providing assistance with basic living expenses; 02  (3) provide education and health-related services and referrals to reduce 03 the number of out-of-wedlock births in the state; 04  (4) prepare, submit to the federal government, and amend, if necessary, 05 a state plan designed to assure that federal money is available to the state for the 06 operation of the program set out in this chapter to provide assistance for basic living 07 expenses and self-sufficiency services to needy children and their families consistent 08 with state objectives; 09  (5) adopt methods of program administration to assure consistency with 10 the federal requirements under the federal Temporary Assistance for Needy Families 11 (TANF) program or any successor federal law to the aid to families with dependent 12 children program; 13  (6) make reports to the federal government as required under the 14 Temporary Assistance for Needy Families (TANF) program, in the form and 15 containing the information required, and comply with the provisions that the federal 16 government determines are necessary to ensure correct and verifiable information on 17 the program; 18  (7) conduct studies and research in order to evaluate and monitor the 19 effectiveness of the state program; and 20  (8) adopt regulations and take action to implement, interpret, and 21 administer the provisions of this chapter. 22  Sec. 47.27.010. ELIGIBLE FAMILIES. (a) The following families may apply 23 for assistance under the AFIP: 24  (1) a single parent who has the physical custody of one or more 25 dependent children; 26  (2) a caretaker of one or more dependent children who is a relative to 27 at least the fifth degree; 28  (3) a woman in the last trimester of pregnancy; or 29  (4) a two-parent family with physical custody of one or more dependent 30 children. 31  (b) The department may limit the eligibility of two-parent families or may

01 adjust the assistance and service provided to two-parent families, taking into 02 consideration the seasonal nature of the economy and the availability of work in this 03 state. 04  Sec. 47.27.015. DISQUALIFYING CONDITIONS. (a) A family is not 05 eligible for assistance under the AFIP if the family includes an adult who 06  (1) has received benefits under the AFIP, or a program of another state 07 financed by a federal block grant for TANF, for a total of 60 months as the caretaker 08 or spouse of a caretaker of a dependent child or as a pregnant woman, unless 09 disqualification would impose an unreasonable hardship on the family as determined 10 by the department in regulation; or 11  (2) is determined to be fleeing to avoid prosecution, custody, or 12 confinement after conviction, in this or another jurisdiction, for a crime that is 13 classified as a felony under AS 11 or the laws of the jurisdiction where the criminal 14 activity was committed. 15  (b) A family is not eligible for assistance under this chapter for a period of 16 up to 120 months if the adult applicant is determined to have fraudulently 17 misrepresented the applicant's residence in order to receive assistance in more than one 18 state under a program financed under a federal block grant for TANF. 19  (c) The department may determine that a family is ineligible for up to six 20 months if the family's demonstrated need for assistance is due to a refusal of or 21 voluntary separation from suitable employment by the adult applicant, or a custodial 22 parent or caretaker, without good cause. 23  Sec. 47.27.020. APPLICATION AND REQUIREMENTS FOR ASSISTANCE. 24 (a) An applicant for assistance under the AFIP shall complete an application in 25 writing, or by electronic means, and in a form specified by the department. The 26 applicant must be a pregnant woman or an individual who has physical custody of the 27 dependent child or children. The application must be complete and must provide all 28 of the information about the family and the child or children that is requested by the 29 department. The applicant shall provide all supporting documentation for verification 30 that the department determines to be necessary to establish eligibility. 31  (b) On the application, each applicant shall attest to whether the family, at any

01 time, has received assistance from another state program that was established under a 02 federal block grant for TANF and whether the family has ever been disqualified from 03 receiving assistance under a TANF program for the period for which the application 04 has been submitted. 05  (c) An applicant shall agree to cooperate with the department to establish a 06 family self-sufficiency plan and to participate in work activities if assigned by the 07 department. 08  (d) An applicant shall acknowledge the assignment of support rights as 09 required by AS 47.27.040 and shall agree to cooperate with the child support 10 enforcement agency of the Department of Revenue in establishing paternity or 11 establishing, modifying, or enforcing a child support order requiring the payment of 12 support by the noncustodial parent for any dependent children for whom AFIP 13 assistance is received. The applicant shall agree to report all child support payments 14 received directly by the family, during or for a period for which the family is receiving 15 assistance under this chapter, to the department within 15 days after receipt of those 16 payments. 17  (e) An applicant shall update the information requested in the application at 18 regular intervals as established by the department in regulation. The department may 19 conduct reviews of an application and audit the information provided as necessary to 20 determine eligibility. 21  Sec. 47.27.025. FAMILY ASSISTANCE. (a) The department shall provide 22 assistance for basic living expenses to families that establish eligibility based on a 23 determination of need that considers the family's available income, assets, and other 24 resources, as established by the department in regulation. Each dependent child in the 25 family is eligible for assistance under this chapter and assistance received as a 26 dependent child will not count against eligibility for assistance under this chapter as 27 a caretaker or spouse of a caretaker of a dependent child or as a pregnant woman. 28  (b) The amounts of assistance for basic living expenses may not exceed the 29 following: 30  (1) for a dependent child living with a non-needy relative caretaker, 31 $452 per month, plus $102 for each additional child;

01  (2) for a dependent child living with at least one needy parent or 02 relative caretaker, $821 per month, plus $102 for each additional child; or 03  (3) for a family consisting solely of an eligible pregnant woman, $514 04 per month. 05  (c) The department shall provide additional assistance as work-related services 06 or referrals to eligible families. Work-related services and referrals may include one 07 or more of the following: 08  (1) job-readiness assessments; 09  (2) employment testing and counseling; 10  (3) job-readiness training; 11  (4) job referral and job search; 12  (5) education and vocational training; 13  (6) community service work assignments; 14  (7) child care assistance; 15  (8) family planning services; and 16  (9) other services to facilitate the transition to work. 17  Sec. 47.27.026. DIVERSION PAYMENTS. (a) The department may offer 18 a lump-sum diversion payment in place of ongoing assistance and services to an 19 applicant who applies for assistance under AS 47.27.020 if the applicant is job-ready 20 and is determined to need only short-term financial assistance to meet critical needs 21 in order to secure employment and support for the applicant's family. The department 22 shall set standards and conditions for diversion payments by regulation. 23  (b) The department may pay diversion benefits to an applicant's family only 24 if that family appears to be eligible for benefits and to include a job-ready individual 25 based on the information provided to the department in the application completed 26 under AS 47.27.020. The department may offer to an applicant with the potential to 27 participate in the diversion program a choice between 28  (1) having the AFIP application processed under AS 47.27.020 and the 29 regulations adopted by the department; or 30  (2) having the AFIP application denied and applying for diversion 31 project benefits under this section.

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

01 supportive living environment; 02  (2) agree that assistance for basic living expenses on behalf of the 03 applicant's family may be paid to the applicant's parent, legal guardian, or other adult 04 relative, or, if applicable, to the adult head of the adult-supervised supportive living 05 environment in which the applicant resides; and 06  (3) maintain attendance in a secondary school or other equivalent 07 training program until the applicant achieves a high school diploma or the equivalent. 08  Sec. 47.27.030. FAMILY SELF-SUFFICIENCY PLAN. (a) A participant in 09 the AFIP shall cooperate with the department, or its designee, to develop and sign a 10 family self-sufficiency plan that includes 11  (1) the steps the family will take towards the self-sufficiency of the 12 family; 13  (2) the employment-related services the department will provide to 14 assist the family to attain self-sufficiency; 15  (3) specific benchmarks to indicate the steps toward successful 16 completion of the family plan; 17  (4) a statement that the family may be subject to benefit reductions or 18 other sanctions if the family fails to comply with the family plan; and 19  (5) a statement that describes the necessary conditions and the steps 20 that must be taken to renegotiate the terms of the family plan. 21  (b) The family self-sufficiency plan will set a time period for the achievement 22 of self-sufficiency from assistance under the AFIP. That time period may not provide 23 for any more than a total of 60 months of assistance under the AFIP. 24  (c) The department may establish in regulation the circumstances in which a 25 family may be exempt from the requirement that the family have a self-sufficiency 26 plan under this section. 27  Sec. 47.27.035. PARTICIPATION IN WORK ACTIVITIES. (a) An AFIP 28 participant shall participate in work activities upon assignment by the department or 29 its designee in order for the family to continue to receive assistance or services from 30 the department under the AFIP, unless the participant is exempt from the work 31 participation requirements under one or more of the exemptions set out in (b) or (c)

01 of this section and any regulations adopted by the department. 02  (b) A parent or caretaker with a dependent child of up to 12 months of age 03 may be exempt from work participation requirements for up to 12 months, as 04 established in the family self-sufficiency plan. 05  (c) A parent or caretaker may be exempt from work participation requirements 06 in the family self-sufficiency plan if 07  (1) the parent or caretaker is providing home care for a child with a 08 developmental disability or a related, disabled person who requires 24-hour care; 09  (2) the parent or caretaker establishes an inability to participate for 10 medical reasons supported by documentation from a physician or other licensed 11 medical professional; 12  (3) the participation would impose an unreasonable hardship on the 13 family; or 14  (4) there is a dependent child in the home that has not yet attained six 15 years of age and the parent or caretaker demonstrates an inability to obtain needed 16 child care because appropriate child care is not available. 17  (d) A participant in work activities under this section is not a state employee 18 for purposes of the State Personnel Act (AS 39.25). 19  (e) A participant in work activities under this section is not considered an 20 employee of the state or other public employer for purposes of the Public Employment 21 Relations Act (AS 23.40.070 - 23.40.260) nor shall any provision of a collective 22 bargaining agreement entered into under the Public Employment Relations Act be 23 construed to interfere with participation in the work activities authorized under this 24 section. 25  Sec. 47.27.040. ASSIGNMENT OF SUPPORT RIGHTS; COOPERATION 26 WITH CHILD SUPPORT ENFORCEMENT AGENCY. (a) An AFIP applicant is 27 considered to have assigned to the state, through the child support enforcement agency 28 of the Department of Revenue, all rights to accrued and continuing child support, from 29 all sources, that is due for the support of any individuals in the family for whom 30 support is sought . The assignment takes effect upon a determination that the 31 applicant's family is eligible for assistance under this chapter. Except with respect to

01 the amount of any unpaid support obligation accrued under the assignment, the 02 assignment terminates when the family ceases to be a participant in the AFIP. 03  (b) An AFIP participant shall cooperate with the child support enforcement 04 agency of the Department of Revenue in establishing paternity or establishing, 05 modifying, or enforcing a child support order requiring the payment of support by the 06 noncustodial parent for any dependent children for whom AFIP assistance is received 07 unless the participant establishes good cause for refusing to cooperate. 08  (c) The department may distribute to an AFIP participant up to $50 per month 09 from a monthly child support payment received by the child support enforcement 10 agency for the support of a child for whom AFIP assistance is paid. 11  Sec. 47.27.045. ALIENATION AND ATTACHMENT. Assistance granted 12 under this chapter is inalienable by assignment or transfer and is exempt from 13 garnishment, levy, or execution as is provided in AS 09.38. 14  Sec. 47.27.050. GRANTS AND CONTRACTS FOR SERVICES. (a) The 15 department may contract with or award grants to municipalities or qualified entities in 16 the state to administer an AFIP or a distinct part of the AFIP. The department may 17 establish standards for the administration of services under the grant or contract, 18 including any fees to be charged to applicants for or recipients of those services. 19  (b) Contracts authorized under this section are to be administered in accordance 20 with AS 47.05.015. Grants authorized under this section are to be awarded using 21 requirements, established in regulation, that are substantially similar to those set out 22 in AS 47.05.015 for contracts. 23  Sec. 47.27.055. AGENCY COLLABORATION. (a) The department shall 24 coordinate with other state agencies that provide assistance, benefits, or services to 25 applicants that are eligible for and to participants in the AFIP, in order to facilitate the 26 application for and delivery of assistance, benefits, or services to promote family self- 27 sufficiency. Subject to appropriations, state agencies may colocate their facilities and 28 operations in order to improve service delivery. 29  (b) The department may provide information received under this chapter to 30 other state agencies in order to facilitate the delivery of services. Information received 31 from an applicant for or participant in the AFIP is to be treated as confidential by all

01 state agencies that share the information under this section and is not open to public 02 inspection. Misuse of public assistance lists or information is punishable as provided 03 in AS 47.05.030. 04  (c) Departments in the executive branch shall cooperate in fulfilling the 05 purposes of this chapter, including, subject to appropriations, the establishment of 06 temporary positions that will provide job opportunities for families participating in the 07 AFIP. Temporary positions established for this purpose are in the exempt service 08 under AS 39.25.110. An individual participating in the AFIP who holds a temporary 09 position established for purposes of this subsection is not a public employee for 10 purposes of AS 23.40.070 - 23.40.260. 11  Sec. 47.27.060. JOB DEVELOPMENT. The department may establish 12 cooperative agreements with the Department of Labor, Department of Community and 13 Regional Affairs, Department of Education, and Department of Commerce and 14 Economic Development, and with other public or private sector organizations for the 15 purpose of developing job, training, and educational opportunities for families eligible 16 for assistance under this chapter. 17  Sec. 47.27.065. FEDERAL-STATE COOPERATION. (a) In the 18 administration of this chapter, the department shall cooperate with the secretary of the 19 United States Department of Health and Human Services and shall take actions 20 necessary to comply with the requirements of federal law to obtain public assistance 21 block grants. The department shall make reports in the form and containing the 22 information required to the secretary of the United States Department of Health and 23 Human Services. The department may cooperate with federal agencies charged with 24 the administration of the federal public assistance block grants. 25  (b) Notwithstanding any other provisions of this chapter, and if the conditions 26 in this subsection are met, the department may implement modifications to the AFIP 27 that are not directly authorized in this chapter, or that may be contrary to a provision 28 of this chapter, by providing notification to the legislature and by adopting regulations. 29 A program modification implemented under this subsection is repealed two years after 30 the date on which the modification took effect unless its implementation is achieved 31 by statutory changes. A program modification under this subsection may be

01 implemented only if 02  (1) states are authorized by the secretary of the United States 03 Department of Health and Human Services to undertake the program; 04  (2) the governor approves the implementation in writing; 05  (3) the commissioner determines that the implementation of the 06 program modification will result in the receipt of additional federal money to carry out 07 the purposes of this chapter and will produce a net monetary gain to the state; and 08  (4) the program modification will not require general fund expenditures, 09 other than the outlay of money received from the federal government for the program. 10  Sec. 47.27.070. COORDINATION WITH ALASKA NATIVE 11 ORGANIZATIONS WITH TRIBAL FAMILY ASSISTANCE PROGRAMS. (a) The 12 department shall coordinate with Alaska Native organizations in the development of 13 tribal family assistance programs to assure that all individuals in the state are eligible 14 to participate in comparable family assistance programs. The department shall 15 cooperate with Alaska Native organizations to propose program criteria to the secretary 16 of the United States Department of Health and Human Services designed to offer a 17 program comparable to the state program to tribal families living within tribal family 18 assistance areas for which federal money has been awarded to the Alaska Native 19 organizations and has been deducted from the state's allocation of federal money. 20  (b) The department shall enter into agreements with Alaska Native 21 organizations with approved tribal family assistance programs to provide for the timely 22 exchange of applicant information as necessary for the determination and delivery of 23 assistance and services to applicants who may be eligible for both state and tribal 24 family assistance programs. An agreement for the exchange of information must 25 provide that applicant and participant information is confidential and is not open to 26 public inspection. 27  (c) If the commissioner determines it to be necessary in order to promote 28 comparable programs within the state, the department may provide grant money to 29 Alaska Native organizations that operate tribal family assistance programs with federal 30 money deducted from the state's allocation. Grant money awarded under this 31 subsection is subject to the terms of the grant agreement and to program criteria

01 proposed under (a) of this section and approved by the secretary of the United States 02 Department of Health and Social Services. Grant money awarded under this 03 subsection is not subject to AFIP regulations adopted under this chapter. 04  (d) The department may contract with Alaska Native organizations that operate 05 tribal family assistance programs in order to provide AFIP services to eligible families 06 within a tribal family assistance area that are not served by the tribal family assistance 07 program. The administration of money awarded under this subsection is subject to 08 AFIP regulations. 09  Sec. 47.27.075. EMERGENCY ACCOUNT ESTABLISHED. (a) There is 10 established within the general fund the AFIP emergency account. The account consists 11 of appropriations from any appropriate source of money, including lapsing money that 12 was appropriated for the AFIP but was not expended or obligated in the fiscal year for 13 which it was appropriated. 14  (b) The account shall be administered by the commissioner, and shall be used 15 to provide assistance authorized under this chapter upon a determination by the 16 commissioner that the current year's appropriation is not sufficient to pay for the AFIP 17 due to an unanticipated increase in the number of eligible families. Money 18 appropriated to the account does not lapse under AS 37.25.010. 19  (c) By December 15 of each year, the commissioner shall report to the 20 governor and the legislature on the use of money from the AFIP emergency account 21 during the preceding fiscal year. 22  Sec. 47.27.080. APPEALS; DISPUTE RESOLUTION. (a) An applicant or 23 participant who receives a determination from the department that denies, limits, or 24 modifies the assistance or services provided under this chapter may request a hearing 25 before the department or a representative of the department appointed for that purpose. 26 If a representative is appointed, the representative shall conduct the hearing under the 27 regulations adopted by the department. The appeal is not subject to AS 44.62.330 - 28 44.62.630. 29  (b) The department may require an applicant or participant to participate in an 30 informal dispute resolution process before a formal hearing. The department may 31 adopt regulations establishing the informal dispute resolution process.

01  Sec. 47.27.085. SANCTIONS; RECOVERY OF COSTS. (a) An AFIP 02 applicant or participant who makes a false statement or misrepresentation knowing it 03 is false, or who knowingly fails to disclose a material fact, in order to obtain or 04 increase assistance or services under this chapter is ineligible to receive assistance 05 under this chapter for a period of not less than one nor more than 12 months, as 06 determined by the department, unless a disqualification set out at AS 47.27.015(b) 07 applies. An AFIP applicant or participant who is determined ineligible for a third or 08 subsequent time under this subsection may be permanently disqualified from receiving 09 assistance or services under this chapter. 10  (b) An AFIP applicant or participant who, without good cause, fails to comply 11 with a condition of the family self-sufficiency plan or who fails to participate in work 12 activities required as a part of the AFIP is subject to a reduction in assistance and 13 services as determined under regulations adopted by the department. 14  (c) An AFIP applicant or participant who, without good cause, fails to 15 cooperate with establishment of paternity or the establishment, modification, or 16 enforcement of a support order for a child for whom assistance is received is subject 17 to a reduction or limitation in assistance or services for the term of non-cooperation 18 as required by federal law and as specified in regulations adopted by the department. 19  (d) An AFIP applicant or participant who receives assistance or services when 20 not entitled to them under this chapter because the information provided by the 21 applicant or participant was inaccurate or incomplete, is liable to the department for 22 the value of the assistance and services improperly provided to the applicant or 23 participant. 24  (e) In a civil action brought by the state to recover the value of assistance or 25 services improperly provided under this chapter, the state may recover costs of 26 investigation and prosecution of the civil action, including attorney fees as determined 27 under court rules. 28  Sec. 47.27.090. DEFINITIONS. In this chapter, 29  (1) "AFIP" means the Alaska Family Independence Program; 30  (2) "Alaska Native organizations" means the organizations designated 31 under federal law to operate tribal family assistance programs in Alaska;

01  (3) "assistance for basic living expenses" means assistance provided 02 under the AFIP that may include cash, vouchers, or third-party vendor payments; 03  (4) "child care assistance" means payments made by the Department 04 of Health and Social Services or the Department of Community and Regional Affairs 05 to AFIP participant families or to providers, for the care of children of the participant 06 families; 07  (5) "child support" includes court-ordered or administratively-ordered 08 child support, medical support, and spousal support; 09  (6) "child support enforcement agency" means the child support 10 enforcement agency in the Department of Revenue; 11  (7) "commissioner" means the commissioner of the Department of 12 Health and Social Services; 13  (8) "department" means the Department of Health and Social Services; 14  (9) "dependent child" means an individual who 15  (A) has not attained 16  (i) 18 years of age; or 17  (ii) 19 years of age and is a full-time student in a 18 secondary school or in the equivalent level of vocational or technical 19 training; and 20  (B) is not an applicant under AS 47.27.020; 21  (10) "self-sufficiency services" means job-related services, community 22 service work referrals, child care assistance, and other services determined by the 23 department in regulation to promote family self-sufficiency; 24  (11) "TANF" means the federal Temporary Assistance for Needy 25 Families program; and 26  (12) "work activities" includes job-readiness assessments, on-the-job 27 training, education and vocational training, job sampling, job search requirements, 28 subsidized and unsubsidized work, and community work service. 29 * Sec. 3. AS 15.07.055(a) is amended to read: 30  (a) The following agencies are designated voter registration agencies: 31  (1) the Department of Public Safety, division of motor vehicles;

01  (2) divisions of the Department of Health and Social Services that 02 provide public assistance through the food stamp program, Medicaid program, Special 03 Supplemental Food Program for Women, Infants, and Children (WIC), and Alaska 04 Family Independence Program (AFIP) [AID TO FAMILIES WITH DEPENDENT 05 CHILDREN (AFDC) PROGRAM]; 06  (3) the division of the Department of Community and Regional Affairs 07 that is responsible for municipal and regional assistance programs; and 08  (4) all recruitment offices of the armed forces of the United States 09 located in Alaska. 10 * Sec. 4. AS 23.10.055 is amended by adding a new paragraph to read: 11  (14) an individual engaged in activities for a nonprofit religious, 12 charitable, civic, cemetery, recreational, or educational organization where the 13 employer-employee relationship does not, in fact, exist, and where services are 14 rendered to the organization under a work activity requirement of the Alaska Family 15 Independence Program (AS 47.27). 16 * Sec. 5. AS 25.20.050(f) is amended to read: 17  (f) If the child support enforcement agency is a party in an action in which 18 paternity is contested, the agency shall request the court to order the tests and 19 procedures described in (e) of this section. The agency may recover the costs of tests 20 as a cost of the action, except that costs may not be recovered from a person who is 21 a recipient of assistance [AID] under AS 47.27 (Alaska Family Independence 22 Program) [AS 47.25.310 - 47.25.420 (AID TO FAMILIES WITH DEPENDENT 23 CHILDREN)]. 24 * Sec. 6. AS 25.27.040(a) is amended to read: 25  (a) The agency may appear on behalf of minor children or their mother or legal 26 custodian or the state and initiate efforts to have the paternity of children born out of 27 wedlock determined by the court. When the agency is a party to a court action in 28 which paternity is contested, it shall request and pay for genetic testing and procedures 29 under AS 25.20.050(f). The agency may recover the costs of the tests as a cost of the 30 court action, except that costs may not be recovered from a person who is a recipient 31 of assistance [AID] under AS 47.27 (Alaska Family Independence Program) [AS

01 47.25.310 - 47.25.420 (AID TO FAMILIES WITH DEPENDENT CHILDREN)]. 02 * Sec. 7. AS 25.27.060 is amended by adding new subsections to read: 03  (e) If the child's parents are both unmarried minors who have not had the 04 disabilities of minority removed under AS 09.55.590, an order of child support issued 05 by a court or agency shall be based on the 06  (1) percentages of physical custody exercised by the child's parents; a 07 minor parent's custody of the child shall be imputed to the parents of the minor parent, 08 regardless of where the minor parent lives, except that 09  (A) if the minor parent and child live with a parent of the 10 noncustodial minor parent, the minor parent's custody of the child shall be 11 imputed to the parent of the noncustodial minor parent; and 12  (B) a minor parent's custody of a child may not be imputed to 13 the parents of the minor parent if the minor parent and child do not live with 14 a parent of the minor parent because 15  (i) neither parent will allow the minor and child to live 16 in the residence of the minor's parent; or 17  (ii) the physical or emotional health or safety of the 18 minor parent or the minor's child would be jeopardized if the minor and 19 the minor's child lived in the same residence with the minor's parent; 20 and 21  (2) incomes of the child's grandparents and parents. 22  (f) To the extent that (e) of this section applies, 23  (1) the child's grandparents are considered to have a duty to support 24 the child and are subject to statutes, regulations, and court rules relating to support of 25 the child; and 26  (2) a grandparent who is determined under applicable agency 27 regulations and court rules to be the obligor for purposes of paying child support on 28 behalf of a grandchild is subject to all statutes, regulations, and court rules applicable 29 to child support obligors. 30  (g) An order of support against a child's grandparent under (e) of this section 31 and a grandparent's duty to support a child under (f) of this section is terminated,

01 without the need for obtaining a modification of a child support order, when one of 02 the child's parents reaches the age of majority or has the disabilities of minority 03 removed under AS 09.55.590, whichever occurs earlier. However, to the extent that 04 a grandparent may have accrued arrearages, the grandparent remains an obligor subject 05 to this chapter. 06 * Sec. 8. AS 25.27.065(b) is amended to read: 07  (b) When the right to receive child support has been assigned to a governmental 08 entity, an agreement under (a) of this section that has not been adopted as an 09 administrative order of the agency is not effective during a period when the obligee 10 is receiving assistance under AS 47.07 or AS 47.27 [AS 47.25.310 - 47.25.420]. 11 * Sec. 9. 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. 10. 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. 11. 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. 12. 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. 13. 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. 14. 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. 15. 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 Family Independence Program) 19 [AS 47.25.310 - 47.25.420 (AID TO FAMILIES WITH DEPENDENT CHILDREN)]. 20 * Sec. 16. AS 25.27 is amended by adding new sections to read: 21  Sec. 25.27.244. ADVERSE ACTION AGAINST DELINQUENT OBLIGOR'S 22 OCCUPATIONAL LICENSE. (a) The agency shall compile and maintain a list of 23 obligors who are not in substantial compliance with a support order or payment 24 schedule negotiated under (g)(1) of this section. The list must include the names, 25 social security numbers, dates of birth, and last known addresses of the obligors. The 26 list shall be updated by the agency on a monthly basis. 27  (b) The agency shall, on a monthly basis, provide a copy of the list to each 28 licensing entity through a computer-readable magnetic medium. A licensing entity 29 subject to this section shall implement procedures to accept and process the list. 30 Notwithstanding any other law to the contrary, a licensing entity may not issue or 31 renew a license for a person on the list except as provided in this section.

01  (c) Promptly after receiving an application from an applicant and before 02 issuing or renewing a license, a licensing entity shall determine whether the applicant 03 is on the most recent list provided by the agency. If the applicant is on the list, the 04 licensing entity shall immediately serve notice under (e) of this section of the licensing 05 entity's intent to withhold issuance or renewal of the license. The notice shall be 06 considered given when delivered personally to the applicant or deposited in the United 07 States mail addressed to the applicant's last known mailing address on file with the 08 licensing entity. 09  (d) A licensing entity shall issue a temporary license valid for a period of 150 10 days to an applicant whose name is on the list if the applicant is otherwise eligible for 11 a license. The temporary license may not be extended. Only one temporary license 12 may be issued during a regular license term and its validity shall coincide with the first 13 150 days of that license term. A license for the full or remainder of the license term 14 may be issued or renewed only upon compliance with this section. If a license or 15 application is denied under this section, money paid by the applicant or licensee shall 16 be refunded by the licensing entity after retention of the temporary license fee, if any. 17  (e) Notices for use under (c) of this section shall be developed by each 18 licensing entity under guidelines provided by the agency and are subject to approval 19 by the agency. The notice must include the address and telephone number of the 20 agency and shall emphasize the necessity of obtaining a release from the agency as a 21 condition for the issuance or renewal of a license. The notice must inform an 22 applicant whose license is governed by (d) of this section that the licensing entity shall 23 issue a temporary license for 150 calendar days under (d) of this section if the 24 applicant is otherwise eligible and that, upon expiration of that time period, the license 25 will be denied unless the licensing entity has received a release from the agency. The 26 agency shall also develop a form that the applicant may use to request a review by the 27 agency. A copy of this form shall be included with each notice sent under (c) of this 28 section. 29  (f) The agency shall establish review procedures consistent with this section 30 to allow an applicant to have the underlying arrearages and relevant defenses 31 investigated, to provide an applicant information on the process of obtaining a

01 modification of a support order, or to provide an applicant assistance in the 02 establishment of a payment schedule on arrearages if the circumstances warrant. 03  (g) If the applicant wishes to challenge being included on the list, the applicant 04 shall submit to the agency a written request for review within 30 days after receiving 05 the notice under (c) of this section by using the form developed under (e) of this 06 section. Within 30 days after receiving a written request for review, the agency shall 07 inform the applicant in writing of the agency's findings. The agency shall immediately 08 send a release to the appropriate licensing entity and the applicant if any of the 09 following conditions is met: 10  (1) the applicant is found to be in substantial compliance with each 11 support order applicable to the applicant or has negotiated an agreement with the 12 agency for a payment schedule on arrearages and is in substantial compliance with the 13 negotiated agreement; if the applicant fails to be in substantial compliance with an 14 agreement negotiated under this paragraph, the agency shall send to the appropriate 15 licensing entity a revocation of any release previously sent to the entity for that 16 applicant; 17  (2) the applicant has submitted a timely request for review to the 18 agency, but the agency will be unable to complete the review and send notice of 19 findings to the applicant in sufficient time for the applicant to file a timely request for 20 judicial relief within the 150-day period during which the applicant's temporary license 21 is valid under (d) of this section; this paragraph applies only if the delay in completing 22 the review process is not the result of the applicant's failure to act in a reasonable, 23 timely, and diligent manner upon receiving notice from the licensing entity that the 24 applicant's name is on the list; 25  (3) the applicant has, within 30 days after receiving the agency's 26 findings following a request for review under (2) of this subsection, filed and served 27 a request for judicial relief under this section, but a resolution of that relief will not 28 be made within the 150-day period of the temporary license under (d) of this section; 29 this paragraph applies only if the delay in completing the judicial relief process is not 30 the result of the applicant's failure to act in a reasonable, timely, and diligent manner 31 upon receiving the agency's notice of findings; or

01  (4) the applicant has obtained a judicial finding of substantial 02 compliance. 03  (h) An applicant is required to act with diligence in responding to notices from 04 the licensing entity and the agency with the recognition that the temporary license 05 granted under (d) of this section will lapse after 150 days and that the agency and, 06 where appropriate, the court must have time to act within that 150-day period. An 07 applicant's delay in acting, without good cause, that directly results in the inability of 08 the agency to complete a review of the applicant's request or the court to hear the 09 request for judicial relief within the required period does not constitute the diligence 10 required under this section that would justify the issuance of a release. 11  (i) Except as otherwise provided in this section, the agency may not issue a 12 release if the applicant is not in substantial compliance with the order for support or 13 is not in substantial compliance with an agreement negotiated under (g)(1) of this 14 section. The agency shall notify the applicant in writing that the applicant may request 15 any or all of the following: (1) judicial relief from the agency's decision not to issue 16 a release or the agency's decision to revoke a release under (g)(1) of this section; (2) 17 a judicial determination of substantial compliance; (3) a modification of the support 18 order. The notice must also contain the name and address of the court in which the 19 applicant may file the request for relief and inform the applicant that the applicant's 20 name shall remain on the list if the applicant does not request judicial relief within 30 21 days after receiving the notice. The applicant shall comply with all statutes and rules 22 of court implementing this section. This section does not limit an applicant's authority 23 under other law to request an order to show cause or notice of motion to modify a 24 support order or to fix a payment schedule on arrearages accruing under a support 25 order or to obtain a court finding of substantial compliance with a support order. 26  (j) A request for judicial relief from the agency's decision must state the 27 grounds on which relief is requested and the judicial action shall be limited to those 28 stated grounds. Judicial relief under this subsection is not an appeal, and shall be 29 governed by court rules adopted to implement this section. Unless otherwise provided 30 by court rule, the court shall hold an evidentiary hearing within 20 calendar days after 31 the filing of service on the opposing party. The court's decision shall be limited to a

01 determination of each of the following issues: 02  (1) whether there is a support order or a payment schedule on 03 arrearages; 04  (2) whether the petitioner is the obligor covered by the support order; 05 and 06  (3) whether the obligor is in substantial compliance with the support 07 order or payment schedule. 08  (k) If the court finds that the obligor is in substantial compliance with the 09 support order or payment schedule, the agency shall immediately send a release under 10 (g) of this section to the appropriate licensing entity and the applicant. 11  (l) When the obligor is in substantial compliance with a support order or 12 payment schedule, the agency shall mail to the applicant and the appropriate licensing 13 entity a release stating that the applicant is in substantial compliance. The receipt of 14 a release shall serve to notify the applicant and the licensing entity that, for the 15 purposes of this section, the applicant is in substantial compliance with the support 16 order or payment schedule unless the agency, under (a) of this section, certifies 17 subsequent to the issuance of a release that the applicant is once again not in 18 substantial compliance with a support order or payment schedule. 19  (m) The agency may enter into interagency agreements with the state agencies 20 that have responsibility for the administration of licensing entities as necessary to 21 implement this section to the extent that it is cost effective to implement the 22 interagency agreements. The agreements shall provide for the receipt by the other 23 state agencies and licensing entities of federal money to cover that portion of costs 24 allowable in federal law and regulation and incurred by the state agencies and licensing 25 entities in implementing this section. 26  (n) Notwithstanding any other provision of law, the licensing entities subject 27 to this section shall assess a fee for issuance of a temporary license under this section. 28 The licensing entity shall set the amount of the fee so that the fees collected under this 29 section, to the extent reasonable, cover the costs of implementing and administering 30 this section. 31  (o) The process described in (g) of this section is the sole administrative

01 remedy for contesting the issuance to the applicant of a temporary license or the denial 02 of a license under this section. The procedures specified in AS 44.62.330 - 44.62.630 03 do not apply to the denial or failure to issue or renew a license under this section. 04  (p) The agency and licensing entities, as appropriate, shall adopt regulations 05 necessary to implement this section. 06  (q) In this section, 07  (1) "applicant" means a person applying for issuance or renewal of a 08 license; 09  (2) "license" 10  (A) means, except as provided in (B) of this paragraph, a 11 license, certificate, permit, registration, or other authorization that, at the time 12 of issuance, will be valid for more than 150 days and that may be acquired 13 from a state agency to perform an occupation, including the following: 14  (i) license relating to boxing or wrestling under AS 15 05.10; 16  (ii) authorization to perform an occupation regulated 17 under AS 08; 18  (iii) teacher certificate under AS 14.20; 19  (iv) authorization under AS 18.08 to perform 20 emergency medical services; 21  (v) asbestos worker certification under AS 18.31; 22  (vi) boiler operator's license under AS 18.60.395; 23  (vii) certificate of fitness under AS 18.62; 24  (viii) hazardous painting certification under AS 18.63; 25  (ix) security guard license under AS 18.65.400 - 26 18.65.490; 27  (x) license relating to insurance under AS 21.27; 28  (xi) employment agency permit under AS 23.15.330 - 29 23.15.520; 30  (xii) registration as a broker-dealer, agent, or investment 31 adviser under AS 45.55.030;

01  (xiii) certification as a pesticide applicator under AS 02 46.03.320; 03  (xiv) certification as a storage tank worker or contractor 04 under AS 46.03.375; and 05  (xv) certification as a water and wastewater works 06 operator under AS 46.30; 07  (B) does not include 08  (i) a vessel license issued under AS 16.05.490 or 09 16.05.530; 10  (ii) a commercial fishing license under AS 16.05.480, 11 including a crew member fishing license; 12  (iii) an entry permit or interim-use permit issued under 13 AS 16.43; 14  (iv) a license issued under AS 47.35; 15  (v) a business license issued under AS 43.70; or 16  (vi) a driver's license issued under AS 28.15; 17  (3) "licensee" means a person holding a license or applying to renew 18 a license; 19  (4) "licensing entity" means the state agency that issues or renews a 20 license; in the case of a license issued or renewed by the Department of Commerce 21 and Economic Development after an applicant's qualifications are determined by 22 another agency, "licensing entity" means the department; 23  (5) "list" means the list of obligors compiled and maintained under (a) 24 of this section; 25  (6) "substantial compliance with a support order or payment schedule" 26 means that, with respect to a support order or a negotiated payment schedule under (g) 27 of this section, whichever is applicable, the obligor has no more than $2,500 past due 28 and has cumulatively paid an amount equal to or greater than the amount due for eight 29 months during the past 12 months; with respect to a support order or payment schedule 30 that has been in effect for less than one year, "substantial compliance" means that the 31 obligor has no more than $2,500 past due and has cumulatively paid an amount equal

01 to or greater than 67 percent of the amount due during the period the support order or 02 payment schedule has been in effect. 03  Sec. 25.27.246. ADVERSE ACTION AGAINST DELINQUENT OBLIGOR'S 04 DRIVER'S LICENSE. (a) The agency shall compile and maintain a list of obligors 05 who have a driver's license and are not in substantial compliance with a support order 06 or payment schedule negotiated under (f)(1) of this section. The list must include the 07 names, social security numbers, dates of birth, and last known addresses of the 08 obligors. The list shall be updated by the agency on a monthly basis. 09  (b) The agency shall serve notice under (d) of this section to each person on 10 the list that the person's driver's license will be suspended in 150 days, and will not 11 be reissued or renewed the next time it is applied for if the person's name is on the 12 list at the time of the subsequent application, unless the licensee receives a release 13 from the agency. The notice shall be considered given when delivered personally to 14 the obligor or deposited in the United States mail addressed to the obligor's last known 15 mailing address on file with the agency. 16  (c) If the licensee fails to obtain a release during the 150-day period following 17 notice under (b) and (d) of this section, the agency shall notify the department that the 18 licensee's driver's license should be suspended and further renewals or applications 19 should be denied until the agency sends the department a release for the licensee. 20 Upon receiving the agency's notice under this subsection, the department shall suspend 21 the licensee's driver's license and may not issue or renew a driver's license for the 22 licensee until the department receives a release to do so from the agency. If a license 23 is suspended or an application is denied under this section, money paid by the 24 applicant or licensee may not be refunded by the department. 25  (d) The notice under (b) of this section must include the address and telephone 26 number of the agency and shall emphasize the necessity of obtaining a release from 27 the agency as a condition for avoiding suspension or denial of the person's driver's 28 license. The notice must also inform the licensee that, if a license is suspended or an 29 application is denied under this section, money paid by the licensee will not be 30 refunded by the department. The agency shall also develop a form that the licensee 31 may use to request a review by the agency. A copy of this form shall be included

01 with each notice sent under (b) of this section. 02  (e) The agency shall establish review procedures consistent with this section 03 to allow a licensee to have the underlying arrearages and relevant defenses 04 investigated, to provide a licensee with information on the process of obtaining a 05 modification of a support order, or to provide a licensee with assistance in the 06 establishment of a payment schedule on arrearages if the circumstances warrant. 07  (f) If a licensee wishes to challenge being included on the list, the licensee 08 shall submit to the agency a written request for review within 30 days after the notice 09 under (b) of this section was personally delivered or postmarked by using the form 10 developed under (d) of this section. Within 30 days after receiving a written request 11 for review, the agency shall inform the licensee in writing of the agency's findings. 12 The agency shall immediately send a release to the department and the licensee if any 13 of the following conditions is met: 14  (1) the licensee is found to be in substantial compliance with each 15 support order applicable to the licensee or has negotiated an agreement with the agency 16 for a payment schedule on arrearages and is in substantial compliance with the 17 negotiated agreement; if the licensee fails to be in substantial compliance with an 18 agreement negotiated under this paragraph, the agency shall send to the department a 19 revocation of any release previously sent to the entity for that licensee; 20  (2) the licensee has submitted a timely request for review to the 21 agency, but the agency will be unable to complete the review and send notice of 22 findings to the licensee in sufficient time for the licensee to file a timely request for 23 judicial relief within the 150-day period before the licensee's license will be suspended 24 under (c) of this section; this paragraph applies only if the delay in completing the 25 review process is not the result of the licensee's failure to act in a reasonable, timely, 26 and diligent manner upon receiving notice from the agency that the licensee's driver's 27 license will be suspended in 150 days; 28  (3) the licensee has, within 30 days after receiving the agency's 29 findings following a request for review under (2) of this subsection, filed and served 30 a request for judicial relief under this section, but a resolution of that relief will not 31 be made within the 150-day period before license suspension under (c) of this section;

01 this paragraph applies only if the delay in completing the judicial relief process is not 02 the result of the licensee's failure to act in a reasonable, timely, and diligent manner 03 upon receiving the agency's notice of findings; or 04  (4) the licensee has obtained a judicial finding of substantial 05 compliance. 06  (g) A licensee is required to act with diligence in responding to notices from 07 the agency with the recognition that the person's driver's license will be suspended 08 after 150 days or that a subsequent license will not be issued and that the agency and, 09 where appropriate, the court must have time to act within that 150-day period or before 10 the subsequent license is needed, as applicable. A licensee's delay in acting, without 11 good cause, that directly results in the inability of the agency to complete a review of 12 the licensee's request or the court to hear the request for judicial relief within the 13 required period does not constitute the diligence required under this section that would 14 justify the issuance of a release. 15  (h) Except as otherwise provided in this section, the agency may not issue a 16 release if the applicant is not in substantial compliance with the order for support or 17 is not in substantial compliance with an agreement negotiated under (f)(1) of this 18 section. The agency shall notify the licensee in writing that the licensee may request 19 any or all of the following: (1) judicial relief from the agency's decision not to issue 20 a release or the agency's decision to revoke a release under (f)(1) of this section; (2) 21 a judicial determination of substantial compliance; (3) a modification of the support 22 order. The notice must also contain the name and address of the court in which the 23 licensee may file the request for relief and inform the licensee that the licensee's name 24 shall remain on the list if the licensee does not request judicial relief within 30 days 25 after receiving the notice. The licensee shall comply with all statutes and rules of 26 court implementing this section. This section does not limit a licensee's authority 27 under other law to request an order to show cause or notice of motion to modify a 28 support order or to fix a payment schedule on arrearages accruing under a support 29 order or to obtain a court finding of substantial compliance with a support order. 30  (i) A request for judicial relief from the agency's decision must state the 31 grounds on which relief is requested and the judicial action shall be limited to those

01 stated grounds. Judicial relief under this subsection is not an appeal, and shall be 02 governed by court rules adopted to implement this section. Unless otherwise provided 03 by court rule, the court shall hold an evidentiary hearing within 20 calendar days after 04 the filing of service on the opposing party. The court's decision shall be limited to a 05 determination of each of the following issues: 06  (1) whether there is a support order or a payment schedule on 07 arrearages; 08  (2) whether the petitioner is the obligor covered by the support order; 09 and 10  (3) whether the obligor is in substantial compliance with the support 11 order or payment schedule. 12  (j) If the court finds that the obligor is in substantial compliance with the 13 support order or payment schedule, the agency shall immediately send a release under 14 (f) of this section to the department and the licensee. 15  (k) When the obligor is in substantial compliance with a support order or 16 payment schedule, the agency shall mail to the applicant and the department a release 17 stating that the licensee is in substantial compliance. The receipt of a release shall 18 serve to notify the licensee and the department that, for the purposes of this section, 19 the applicant is in substantial compliance with the support order or payment schedule 20 unless the agency, under (a) of this section, certifies subsequent to the issuance of a 21 release that the licensee is once again not in substantial compliance with a support 22 order or payment schedule. 23  (l) The process described in (f) of this section is the sole administrative 24 remedy for contesting the suspension or the denial of a driver's license under this 25 section. The procedures specified in AS 28 or AS 44.62.330 - 44.62.630 do not apply 26 to the suspension or failure to issue or renew a license under this section. 27  (m) The agency and department, as appropriate, shall adopt regulations 28 necessary to implement this section. 29  (n) In this section, 30  (1) "department" means the Department of Public Safety; 31  (2) "driver's license" or "license" means a driver's license, as defined

01 in AS 28.40.100; 02  (3) "licensee" means a person holding or requesting a driver's license; 03  (4) "list" means the list of obligors compiled and maintained under (a) 04 of this section; 05  (5) "substantial compliance with a support order or payment schedule" 06 means that, with respect to a support order or a negotiated payment schedule under (f) 07 of this section, whichever is applicable, the obligor has no more than $2,500 past due 08 and has cumulatively paid an amount equal to or greater than the amount due for eight 09 months during the past 12 months; with respect to a support order or payment schedule 10 that has been in effect for less than one year, "substantial compliance" means that the 11 obligor has no more than $2,500 past due and has cumulatively paid an amount equal 12 to or greater than 67 percent of the amount due during the period the support order or 13 payment schedule has been in effect. 14 * Sec. 17. AS 36.30.850(b)(11)is amended to read: 15  (11) agreements with providers of services under AS 44.47.250; AS 16 47.07; AS 47.08; AS 47.10; AS 47.17; AS 47.24; AS 47.25.130(b); and AS 47.27 [AS 17 47.25.195 AND 47.25.310]; 18 * Sec. 18. AS 39.25.110 is amended by adding a new paragraph to read: 19  (31) a participant in the Alaska Family Independence Program 20 (AS 47.27) who holds a temporary position with the state in order to obtain job 21 training or experience. 22 * Sec. 19. AS 44.19.626(a)is amended to read: 23  (a) As the lead state planning and coordinating entity, the Alaska Human 24 Resource Investment Council has responsibility, to the extent authorized by federal and 25 state law, for planning and coordinating federal, state, and local efforts in human 26 resource programs in this state related to employment training, including the work 27 activities of the Alaska Family Independence Program under AS 47.27. 28 * Sec. 20. AS 44.29.020(a)is amended to read: 29  (a) The Department of Health and Social Services shall administer the state 30 programs of public health and social services, including 31  (1) maternal and child health services;

01  (2) preventive medical services; 02  (3) public health nursing services; 03  (4) nutrition services; 04  (5) health education; 05  (6) laboratories; 06  (7) mental health treatment and diagnosis; 07  (8) management of state institutions, except for adult penal institutions; 08  (9) medical facilities; 09  (10) adult public assistance; 10  (11) Alaska Family Independence Program [AID TO FAMILIES 11 WITH DEPENDENT CHILDREN]; 12  (12) child welfare services; 13  (13) general relief; and 14  (14) licensing and supervision of child care facilities. 15 * Sec. 21. AS 44.47.280 is amended to read: 16  Sec. 44.47.280. ELIGIBILITY OF FAMILIES FOR BENEFITS. The 17 department shall determine the eligibility of families for day care benefits on the basis 18 of the following factors: 19  (1) [NET] income of the family including salary, alimony, child support, 20 retirement benefits, social security, and any other source of income; 21  (2) number of children in the family; 22  (3) whether there is one parent or guardian solely responsible for the 23 care of the family; 24  (4) [Repealed 25  (5)] other factors found relevant by the department. 26 * Sec. 22. AS 47.05.010(1) is amended to read: 27  (1) administer adult public assistance, the Alaska Family 28 Independence Program [AID TO FAMILIES WITH DEPENDENT CHILDREN], and 29 all other assistance programs, and receive and spend money [FUNDS] made available 30 to it; 31 * Sec. 23. AS 47.05.010(2) is amended to read:

01  (2) adopt regulations necessary for the conduct of its business and for 02 carrying out federal and state laws granting adult public assistance, temporary 03 assistance for needy families under the Alaska Family Independence Program 04 [AID TO FAMILIES WITH DEPENDENT CHILDREN], and other assistance; 05 * Sec. 24. AS 47.05.010(5) is amended to read: 06  (5) cooperate with the federal government in matters of mutual concern 07 pertaining to adult public assistance, the Alaska Family Independence Program [AID 08 TO FAMILIES WITH DEPENDENT CHILDREN], and other forms of public 09 assistance; 10 * Sec. 25. AS 47.05.030 is amended to read: 11  Sec. 47.05.030. MISUSE OF PUBLIC ASSISTANCE LISTS AND 12 RECORDS. Except for purposes directly connected with the administration of general 13 assistance, adult public assistance, the day care assistance program authorized under 14 AS 44.47.250 - 44.47.310, or the Alaska Family Independence Program [AID TO 15 FAMILIES WITH DEPENDENT CHILDREN], and in accordance with the regulations 16 of the department, a person may not solicit, disclose, receive, make use of, or 17 authorize, knowingly permit, participate in, or acquiesce in the use of, a list of or 18 names of, or information concerning, persons applying for or receiving the assistance 19 directly or indirectly derived from the records, papers, files, or communications of the 20 department or subdivisions or agencies of the department, or acquired in the course of 21 the performance of official duties. 22 * Sec. 26. AS 47.05.080 is amended to read: 23  Sec. 47.05.080. RECOVERY OF OVERPAYMENTS. Benefit overpayments 24 collected by the department in administering programs under AS 47.25.120 - 47.25.300 25 (general relief), [AS 47.25.310 - 47.25.420 (AID TO FAMILIES WITH DEPENDENT 26 CHILDREN),] AS 47.25.430 - 47.25.615 (adult public assistance), [AND] 27 AS 47.25.975 - 47.25.990 (food stamps), and AS 47.27 (Alaska Family 28 Independence Program shall be remitted to the Department of Revenue under 29 AS 37.10.050(a). 30 * Sec. 27. AS 47.07.020(b)(1) is amended to read: 31  (1) persons eligible for but not receiving assistance under any plan of

01 the state approved under 42 U.S.C. 601 - 615 (Title IV-A, Social Security Act, 02 Temporary Assistance for Needy Families), [AID TO FAMILIES WITH 03 DEPENDENT CHILDREN) OR] 42 U.S.C. 1381 - 1383c (Title XVI, Social Security 04 Act, Supplemental Security Income), or a federal program designated as the 05 successor to the aid to families with dependent children program; 06 * Sec. 28. AS 47.07.020(b)(7) is amended to read: 07  (7) persons under age 21 who are receiving active treatment in a 08 psychiatric hospital and who are financially eligible as determined by the standards of 09 42 U.S.C. 601 - 615 (Title IV-A, Social Security Act, Temporary Assistance for 10 Needy Families, or a federal program designated as the successor to the aid to 11 families with dependent children program [AID TO FAMILIES WITH 12 DEPENDENT CHILDREN]); 13 * Sec. 29. AS 47.07.035(26) is amended to read: 14  (26) individuals under age 21 who are not eligible for benefits under 15 the federal temporary assistance for needy families [AID TO FAMILIES WITH 16 DEPENDENT CHILDREN] program, or a federal program designated as the 17 successor to the aid to families with dependent children program, because they are 18 not deprived of one or more of their natural or adoptive parents; 19 * Sec. 30. AS 47.25.130(b) is amended to read: 20  (b) The department may enter into contracts or [COMPETITIVELY 21 AWARDED] group service agreements with providers or local governments, and may 22 require needy persons under AS 47.25.120 - 47.25.300 to obtain services from these 23 designated providers. The department may establish by regulation program 24 standards designed to meet local circumstances for services provided under 25 contracts or group service agreements entered into under this subsection. 26 * Sec. 31. AS 47.25.310, 47.25.320, 47.25.330, 47.25.340, 47.25.345, 47.25.350, 47.25.360, 27 47.25.365, 47.25.370, 47.25.380, 47.25.395, 47.25.400, 47.25.410, 47.25.420, 47.25.421, 28 47.25.423, 47.25.425, 47.25.427, and 47.25.429 are repealed. 29 * Sec. 32. COURT RULE CHANGE. (a) AS 25.27.060(e) - (g), added by sec. 7 of this 30 Act, have the effect of amending Alaska Rule of Civil Procedure 90.3 by requiring 31 consideration of the income of the grandparents of a child when determining a child support

01 obligation under certain circumstances and by providing that a child's grandparents are 02 obligated to support the child under certain circumstances. 03 (b) Under art. IV, sec. 15, Constitution of the State of Alaska, AS 25.27.060(e) - (g), 04 added by sec. 7 of this Act, and this section may become law with the affirmative vote of a 05 majority of the membership of each house because the court rule being amended is not a rule 06 governing practice or procedure. 07 * Sec. 33. REPORT. (a) In furtherance of the public policy of increasing child support 08 enforcement and collections, on or before January 1, 1999, the child support enforcement 09 agency shall make a report to the governor based on data collected by the licensing entities 10 and the agency in a format prescribed by the agency. The report must contain 11 (1) the number of delinquent obligors on the lists maintained by the agency 12 under AS 25.27.244 - 25.27.246, enacted by sec. 16 of this Act; 13 (2) the number of delinquent obligors who also were applicants or licensees 14 subject to AS 25.27.244 - 25.27.246, enacted by sec. 16 of this Act; 15 (3) the number of new licenses and renewals that were delayed or denied and 16 temporary licenses issued subject to AS 25.27.244 and the number of new licenses and 17 renewals granted following receipt by licensing entities of releases under AS 25.27.244 by 18 July 1, 1998; 19 (4) the number of licenses under AS 28.15 that were suspended under 20 AS 25.27.246 and the number of licenses under AS 28.15 that were reinstated following 21 receipt by the Department of Public Safety of releases under AS 25.27.246 by July 1, 1998; 22 and 23 (5) the costs incurred in the implementation and enforcement of AS 25.27.244 24 - 25.27.246, enacted by sec. 16 of this Act. 25 (b) A licensing entity receiving an inquiry from the agency under (a) of this section 26 shall cooperate with the agency. When queried as to the licensed status of an applicant who 27 has had a license denied or suspended under AS 25.27.244 or 25.27.246 or has been granted 28 a temporary license under AS 25.27.244, the licensing entity shall respond only that the 29 license was denied or suspended or that the temporary license was issued. 30 * Sec 34. WAIVER OF AFDC PROGRAM REQUIREMENTS. (a) If the federal aid to 31 families with dependent children (AFDC) program has not been repealed by October 1, 1996,

01 the Department of Health and Social Services may implement changes to the AFDC program, 02 notwithstanding the provisions of AS 47.25.310 - 47.25.429, that are consistent with the 03 Alaska Family Independence Program established in sec. 2 of this Act, by operating waiver 04 projects with the approval of the federal government. All waiver projects must be within the 05 scope of the program set out at sec. 2 of this Act and must be designed to promote family 06 self-sufficiency. 07 (b) If the federal AFDC program has not been repealed by October 1, 1996, the 08 Department of Health and Social Services shall report to the governor its recommendation for 09 changes in its statutory authority that are needed to address conflicting legal authority to 10 operate the waiver projects. 11 * Sec. 35. COOPERATION. State agencies designated by the governor shall cooperate 12 with the Department of Health and Social Services to the extent necessary to implement 13 waivers under sec. 34 of this Act. 14 * Sec. 36. IMMUNITY FROM LIABILITY. (a) The Department of Health and Social 15 Services, and its employees, agents, and grantees, are not liable for civil damages as a result 16 of an act or omission in the implementation, operation, or administration of an authorized 17 waiver project under sec. 34 of this Act. 18 (b) The provisions of (a) of this section do not preclude liability for civil damages as 19 a result of recklessness or intentional misconduct. 20 (c) The provisions of (b) of this section do not constitute a waiver or limitation of 21 sovereign or other immunity. 22 * Sec. 37. REGULATIONS FOR WAIVER PROGRAMS. The Department of Health and 23 Social Services may adopt regulations necessary to implement sec. 34 of this Act. The 24 regulations adopted by the department may include 25 (1) eligibility criteria for waiver projects that differ from eligibility requirements 26 in AS 47.25.310 - 47.25.429 and the regulations adopted under those statutes; 27 (2) exemptions from requiring participation in the projects because of 28 exceptional circumstances; 29 (3) provisions for financial or non-financial sanctions for applicants who fail 30 to cooperate with project requirements or a provision of a plan; and 31 (4) additional program standards and procedures to implement or interpret sec.

01 2 of this Act in order to promote family self-sufficiency. 02 * Sec. 38. TRANSITION. (a) The Department of Health and Social Services, the 03 Department of Revenue, child support enforcement agency, and any department that issues a 04 license affected by sec. 16 of this Act, may proceed to adopt regulations necessary to 05 implement this Act. Regulations to implement a provision of this Act take effect under 06 AS 44.62 (Administrative Procedure Act), but not before the effective date of the relevant 07 provision of this Act. 08 (b) Regulations adopted by the Department of Health and Social Services under the 09 authority of AS 47.25.310 - 47.25.420 before the effective date of secs. 2 and 37 of this Act 10 remain in effect, and may be implemented and enforced to the extent that the regulations are 11 not inconsistent with AS 47.27, until the department has made regulation changes under 12 AS 44.62 (Administrative Procedure Act) to conform to this Act. 13 (c) An application for assistance filed under AS 47.25 remains effective as an 14 application for the Alaska Family Independence Program following the effective dates of secs. 15 2 and 37 of this Act and until the Department of Health and Social Services requires a new 16 application with the development of the family self-sufficiency plan; new applications shall 17 be required no later than one year following the effective date of sec. 2 of this Act. 18 (d) Litigation, hearings, investigations, collection actions, and other proceedings 19 pending under a law amended or repealed by this Act continue in effect and may be 20 completed by the Department of Health and Social Services notwithstanding the repeal or 21 amendment under the Act. 22 * Sec. 39. Section 38(a) of this Act takes effect immediately. 23 * Sec. 40. Sections 1 - 6, 8 - 15, 17 - 31 of this Act take effect October 1, 1996, except 24 that if the federal law providing for the aid to families with dependent children (AFDC) 25 program has not been repealed by that date, those sections take effect on the first day after 26 October 1, 1996 that the repeal of the federal AFDC program is effective. The commissioner 27 of health and social services shall notify the revisor of statutes and the lieutenant governor of 28 the effective date of the repeal of the federal law providing for the AFDC program. 29 * Sec. 41. Sections 7, 16, and 32 - 37, 38(b), (c), and (d) of this Act take effect 30 October 1, 1996.