-

AH

WSR 97-03-050

PROPOSED RULES

DEPARTMENT OF

SOCIAL AND HEALTH SERVICES

(Economic Services Administration)

(Public Assistance)

[Filed January 10, 1997, 4:11 p.m.]

Original Notice.

Exempt from preproposal statement of inquiry under RCW 34.05.310(4).

Title of Rule: WAC 388-216-2500 Resources--Exempt as a resource with no ceiling value.

Purpose: Amends WAC 388-216-2500 to exempt property having great sentimental value as a resource to comply with state law.

Statutory Authority for Adoption: RCW 74.08.090, 74.04.050, and 74.04.055.

Statute Being Implemented: RCW 74.04.005, Public Law 104-193, section 103 (a)(1).

Summary: To exempt property having great sentimental value as a resource to comply with state law.

Reasons Supporting Proposal: RCW 74.04.005 allows applicants/recipients of temporary assistance for needy families (TANF) to retain personal property having great sentimental value as an exempt resource.

Name of Agency Personnel Responsible for Drafting, Implementation and Enforcement: Cindy Anderson, DIA/OAP/AFDC, (360) 413-3095.

Name of Proponent: Department of Social and Health Services, governmental.

Rule is necessary because of federal law, Public Law 104-193, section 103 (a)(1).

Explanation of Rule, its Purpose, and Anticipated Effects: See Summary and Reasons Supporting Proposal above. Implement requirements of RCW 74.04.005. To allow applicants/recipients of TANF to retain personal property having great sentimental value as an exempt resource.

Proposal Changes the Following Existing Rules: Amends WAC 388-216-2500.

No small business economic impact statement has been prepared under chapter 19.85 RCW. Does not affect small business.

Section 201, chapter 403, Laws of 1995, does not apply to this rule adoption. Section 201 (RCW 34.05.328) does not apply to the Department of Social and Health Services.

Hearing Location: Lacey Government Center (behind Tokyo Bento restaurant), 1009 College Street S.E., Room 104-A, Lacey, WA 98503, on February 25, 1997, at 10:00 a.m.

Assistance for Persons with Disabilities: Contact Merry Kogut, Supervisor, (360) 902-8317, by February 11, 1997, TTY (360) 902-8324.

Submit Written Comments to and Identify WAC Numbers: Leslie Baldwin, Rules Coordinator, Rules and Policies Assistance Unit, P.O. Box 45811, Olympia, WA 98504-5850, FAX (360) 902-7540, by February 25, 1997.

Date of Intended Adoption: No sooner than February 26, 1997.

January 10, 1997

Merry Kogut, Manager

Rules and Policies Assistance Unit

AMENDATORY SECTION (Amending Order 3732, filed 5/3/94, effective 6/3/94)

WAC 388-216-2500 Resources--Exempt as a resource with no ceiling value. (("Goodwill" means the reputation and patronage of a company. Goodwill can generally be valued as the amount a company would sell for over the value of its physical property, money owed it, and other assets.))

(1) Irrespective of value, the department shall exempt the following resources:

(a) The client's home, subject to the conditions specified in sections WAC 388-216-2550 through 388-216-2590.

(b) Household furnishings and personal clothing essential for daily living. The department shall not exempt household furnishings and personal clothing in storage without evidence that these items are essential for daily living.

(c) One cemetery plot for each member of the assistance household.

(d) Personal property of "great sentimental value" when the applicant/recipient establishes the circumstances and conditions giving the personal property this value. "Sentimental value" as used in this section means personal property held primarily because of personal attachment or hobby interest, rather than for its intrinsic value.

(2) The department may declare real and personal property which will be used in a self-employment enterprise as an exempt resource:

(a) On the basis of an agreed plan; and

(b) When the department determines that the real or personal property:

(i) Is necessary to restore the client's independence; or

(ii) Will aid in rehabilitating the client or the client's dependents by providing self-employment experience which can reasonably be expected to lead to full or partial self-support.

(3) The department shall consider any increase in value to exempted stock, raw materials, or inventory as:

(a) Exempt, when the increase is necessary to the health of the enterprise; or

(b) Income, when such increase might reasonably be used towards the client's self-support.

(4) In the absence of an agreed plan, the department shall consider the business assets of a self-employment enterprise, if available and nonexempt, as available to the owner in the amount of the sale value minus encumbrances.

(5) Under an agreed plan, the department shall consider accounts receivable as:

(a) An exempt resource when:

(i) The client makes a diligent effort to collect; or

(ii) If efforts to collect are unsuccessful, the client turns the accounts over to a collection agency;

(b) A nonexempt resource when the client does not meet the requirements in (a) of this subsection; and

(c) Earned income from self-employment, when payment is received.

(6) The department shall consider goodwill as an unavailable resource until the business is sold. Goodwill as used in this section means the reputation and patronage of a company. Goodwill can generally be valued as the amount a company would sell for over the value of its physical property, money owed it, and other assets.

[Statutory Authority: RCW 74.08.090. 94-10-065 (Order 3732), 388-216-2500, filed 5/3/94, effective 6/3/94. Formerly parts of WAC 388-28-420, 388-28-435 and 388-28-439.]

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