HOUSE BILL NO. 142 An Act relating to the Alaska temporary assistance program; and providing for an effective date. ANGELA SALERNO, DIVISION OF PUBLIC ASSISTANCE, DEPARTMENT OF HEALTH AND SOCIAL SERVICES, stated that Jim Nordlund was on line and ready to testify. JIM NORDLUND, (TESTIFIED VIA TELECONFERENCE), DIRECTOR, DIVISION OF PUBLIC ASSISTANCE, DEPARTMENT OF HEALTH AND SOCIAL SERVICES, ANCHORAGE, commented that five years ago, the Administration worked with the Legislature to create a new welfare law for Alaska. The Aid to Families with Dependent Children and Job Opportunity and Basic Skills programs created the Alaska Temporary Assistance Program (ATAP). He advised that changes were needed with that program as it was initially established. Mr. Nordlund stated that HB 142 would repeal the percentage limit on the number of families that may continue on receive assistance for more than 60 months due to hardship. Removal of that limit would permit the Department of Health and Social Services to base its hardship exceptions on objective criteria rather than on a fixed percentage of overall caseload. As families are successful in finding work and the overall caseload decreases, the number of hardship cases makes up a greater percentage of the total. Mr. Nordlund noted that Alaska established an extremely aggressive goal, compared to other states, capping hardship cases at a specific percentage of the total. Other states either avoided time limits completely or set a broader range of exemptions to the limits. The fixed percentage in law artificially bars needy families with disabled adults from receiving essential cash assistance and services for the children. The first families will begin to exceed the 60- month lifetime limit in July 2002. Mr. Nordlund added that the bill would address the seasonal provisions for a two parent needy family by removing outdated eligibility requirements as cited in Superior Court ruling. The change permits the Department to apply the seasonal reduction provision to all two-parent needy families in which both parents are physically and mentally able to work. The legislation will require disabled parents to have self- sufficiency plans. The State can better serve these parents by promoting their efforts toward self-sufficiency. Representative Hudson MOVED to report CS HB 142 (HES) out of Committee with individual recommendations and the accompanying fiscal note. There being NO OBJECTION, it was so ordered. CS HB 142 (HES) was reported out of Committee with a "do pass" recommendation and with a fiscal note by Department of Health & Social Services dated 2/23/01.