(A) To emphasize the necessity of each family achieving independence and self-sufficiency, if an AFDC recipient fails without good cause to comply with the employment and training requirements contained in the agreement entered into between the recipient and the State Department of Social Services, the department shall:

1. (1) grant a thirty-day conciliation period for the recipient to reconsider the decision not to comply with the terms of the agreement. During this thirty-day period, the recipient has the right to appeal the department's decision to impose sanctions. At the end of this thirty-day period if the conciliation/fair hearing decision was not in the recipient's favor, all AFDC benefits must be terminated. Benefits may be reinstated when the recipient agrees to comply according to the terms of the agreement and demonstrates willingness to comply by participating in the employment and training program for a period of thirty days;
2. (2) terminate all AFDC benefits if the recipient completes the training requirements contained in the agreement and then refuses an offer of employment.

(B) A recipient is not required to comply with the employment and training provisions of the agreement if the recipient is:

1. (1) a parent or caretaker relative with a child under one year of age; however, custodial parents under age twenty-five who have not completed their high school education are required to comply with these provisions regardless of the age of the child;
2. (2) at least six months pregnant and the pregnancy is verified by a qualified licensed health care provider;
3. (3) incapacitated and the incapacity is verified by a physician, and if the department considers it necessary, confirmed by an assessment performed by the Department of Vocational Rehabilitation, as a physical or mental impairment that prevents the recipient from engaging in gainful employment or participating in education or training;
4. (4) caring for an incapacitated person whose incapacity has been verified by a physician and, if the department considers it necessary, confirmed by an assessment performed by the Department of Vocational Rehabilitation;
5. (5) unable to participate because child care and reasonable transportation were not provided when needed for participation in employment and training programs.