(a) Payment under AS 47.25.120 — 47.25.300 may not be made to or on behalf of an individual who is a resident of a public institution, except as a patient in a public medical institution, or an individual who is a patient in a public or private institution for tuberculosis or mental disease. A resident of a public institution who is otherwise eligible to receive an allowance under AS 47.25.120 — 47.25.300 may apply for the allowance instead of the support and maintenance provided in the public institution.
(b) In this section, “public institution” does not include the Alaska Pioneers' Home or the Alaska Veterans' Home.