S-3792               _______________________________________________

                                                   SENATE BILL NO. 6232

                        _______________________________________________

State of Washington                              50th Legislature                              1988 Regular Session

By Senators Anderson, Smitherman, Barr, Stratton, Lee, Wojahn, Bailey, Kiskaddon, Patterson, McCaslin, Smith, Fleming, Johnson and Conner

Read first time 1/15/88 and referred to Committee on Children & Family Services.

AN ACT Relating to aid to families with dependent children; and adding a new section 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.

          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.  The application for waivers shall be sought by October 1, 1988.

          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.