S-4532               _______________________________________________

                                         SUBSTITUTE SENATE BILL NO. 6232

                        _______________________________________________

State of Washington                              50th Legislature                              1988 Regular Session

By Senate Committee on Children and Family Services (originally sponsored by Senators Anderson, Smitherman, Barr, Stratton, Lee, Wojahn, Bailey, Kiskaddon, Patterson, McCaslin, Smith, Fleming, Johnson and Conner)

Read first time 1/29/88.

AN ACT Relating to aid to families with dependent children; amending RCW 74.12.035; and adding new sections to chapter 74.12 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.  A new section is added to chapter 74.12 RCW to read as follows:

          It is the intent of the legislature that recipients of aid for families with dependent children shall be encouraged to become self-employed as a means of attaining economic self-sufficiency.

          Washington has a low percentage of recipients of aid to families with dependent children in the workforce.  The legislature has an interest in ensuring that citizens who are in economic need be provided appropriate financial assistance and services and an opportunity to become self-sustaining through appropriate gainful employment.  When state and federal laws and rules impede an individual's efforts to gain unsubsidized employment, those laws and rules should be changed.  Current state and federal social and employment policies and state and federal statutes are designed to discourage recipients of aid to families with dependent children from taking jobs offered by the private sector.  Current government disincentives discourage individuals from participating fully in the economic mainstream.

          The department of social and health services is instructed to request waivers from the federal social security act as necessary to implement this section.  The application for waivers shall be sought by October 1, 1988.

NEW SECTION. Sec. 2.  A new section is added to chapter 74.12 RCW to read as follows:

          The secretary of social and health services shall seek an exception to federal law under the waiver authorities set forth in the federal social security act, 42 U.S.C. Sec. 301 et seq., for the purposes of allowing recipients of aid for families with dependent children to become self-employed in a manner that will lead to economic independence.

          If the waivers are obtained, the department shall adopt rules that allow a recipient to separate business assets from personal assets during a start-up period not exceeding two years.  The rules shall provide for evaluation of business progress during the start-up period and, if it appears to the department that sufficient income exists to provide an adequate income to replace the aid to families with dependent children, the recipient has the burden of showing why the recipient is not ready to terminate the aid prior to the expiration of the start-up period.  The rules shall also provide for deductions from income for business expenses including but not limited to capital expenditures, payments on the loans to the business and reasonable amounts for cash reserves.  Guidelines for determining a reasonable amount of cash reserves and for evaluation of business progress shall be based primarily on criteria used by small business loan officers and others of like expertise.   The rules shall be promulgated only after consultation with the private industry councils and other small business experts.

        Sec. 3.  Section 3, chapter 10, Laws of 1981 2nd ex. sess. as amended by section 1, chapter 335, Laws of 1985 and RCW 74.12.035 are each amended to read as follows:

          (1) A family or assistance unit is not eligible for aid for any month if for that month the total net income of the family or assistance unit, ((without application of)) after excluding taxes, involuntary payroll deductions, and income disregards, exceeds one hundred eighty-five percent of the state standard of need for a family of the same composition:  PROVIDED, That for the purposes of determining the total income of the family or assistance unit, the earned income of a dependent child who is a full-time student for whom aid to families with dependent children is being provided shall be disregarded for six months per calendar year.  In determining the monthly payment standard for each family, the department shall exclude from net cash income all taxes and involuntary payroll deductions.

          (2) Participation in a strike does not constitute good cause to leave or to refuse to seek or accept employment.  Assistance is not payable to a family for any month in which any caretaker relative with whom the child is living is, on the last day of the month, participating in a strike.  An individual's need shall not be included in determining the amount of aid payable for any month to a family or assistance unit if, on the last day of the month, the individual is participating in a strike.

          (3) Children over eighteen years of age and under nineteen years of age who are full-time students reasonably expected to complete a program of secondary school, or the equivalent level of vocational or technical training, before reaching nineteen years of age are eligible to receive aid to families with dependent children:  PROVIDED HOWEVER, That if such students do not successfully complete such program before reaching nineteen years of age, the assistance rendered under this subsection during such period shall not be a debt due the state.