1. (a) This section applies only to a person's eligibility for assistance under section 5.1 of this chapter.
2. (b) As used in this section, "school" means a program resulting in high school graduation.

3. (c) Due to extraordinary circumstances, a person who is the parent of a dependent child, an essential person, or a dependent child may apply, in a manner prescribed by the division, for an exemption from the requirements of this chapter if the person can document that the person has complied with the personal responsibility agreement under section 21 of this chapter and the person demonstrates any of the following:

   1. (1) The person has a substantial physical or mental disability that prevents the person from obtaining or participating in gainful employment.
   2. (2) The person is a minor parent who is in school full time and who has a dependent child.

   3. (3) The person is a minor parent who is enrolled full time in an educational program culminating in a high school equivalency certificate and who has a dependent child.

      A person seeking an exemption under this section must show documentation to the division to substantiate the person's claim for an exemption under subdivision (1), (2), or (3).

4. (d) After receiving an application for exemption from a parent, an essential person, or a dependent child under subsection (c), the division shall investigate and determine if the parent, essential person, or dependent child qualifies for an exemption from this chapter. The director shall make a final determination regarding:

   1. (1) whether to grant an exemption;
   2. (2) the length of an exemption, if granted, subject to subsection (f); and
   3. (3) the extent of an exemption, if granted.
5. (e) If the director determines that a parent, an essential person, or a dependent child qualifies for an exemption under this chapter, the parent, essential person, or dependent child is entitled to receive one hundred percent (100%) of the payments that the parent, essential person, or dependent child is entitled to receive under this chapter, subject to any ratable reduction.
6. (f) An exemption granted under this section may not exceed one (1) year, but may be renewed.
7. (g) The division shall publish the number and type of exemptions granted under this section on the division's website.
8. (h) The division may adopt rules under IC 4-22-2 to carry out this section.

As added by P.L.46-1995, SEC.23. Amended by P.L.28-2004, SEC.101; P.L.130-2018, SEC.47; P.L.103-2023, SEC.17; P.L.1-2025, SEC.167.