WSR 97-10-039




(Economic Services Administration)

(Public Assistance)

[Filed April 30, 1997, 4:38 p.m.]

Original Notice.

Preproposal statement of inquiry was filed as WSR 97-06-132.

Title of Rule: WAC 388-265-1750 Protective payee fees.

Purpose: Establishes the conditions under which the Department of Social and Health Services may pay administrative costs for protective payees.

Statutory Authority for Adoption: RCW 74.08.090 and 74.08.280.

Statute Being Implemented: RCW 74.08.280.

Summary: This change allows for persons who meet the contractual requirements of the department to be paid the administrative fee for provision of protective payee services, regardless of their relationship or personal friendship with a recipient. This change provides more detailed definition of the reasons for payment for protective payee services. It adds to the categories of recipients required to have protective payees for which the vendor will be paid the administrative fee. The new category is for recipients who are under sanction for failure to participate in the JOBS program. Prior to this change, payment for these cases was covered under the general category of mismanagement of funds.

Name of Agency Personnel Responsible for Drafting, Implementation and Enforcement: Kay Hanvey, Division of Income Assistance, (360) 413-3100.

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

Rule is not necessitated by federal law, federal or state court decision.

Explanation of Rule, its Purpose, and Anticipated Effects: This change allows persons who are related to or friends of a recipient to be paid under contract for providing protective payee services. Persons in this relationship were previously prohibited from receiving the administrative fees. This will have little effect. Anyone providing protective payee services has been required to be under contract since September 1995. Most protective payees established since that time have been through agencies and small companies who provide selective services. A few remaining friends and relatives will now be eligible for payment of the administrative fee. No change is anticipated by the addition of the categories of clients from which the fee will be paid.

Proposal Changes the Following Existing Rules: Existing rule prohibits paying the administrative fee to vendors who are friends or relatives of a recipient. This change eliminates that restriction.

No small business economic impact statement has been prepared under chapter 19.85 RCW. This rule does not impact businesses.

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, on June 10, 1997, at 10:00 a.m.

Assistance for Persons with Disabilities: Contact Leslie Baldwin by June 2, 1997, phone (360) 902-7540, TTY (360) 902-8324, e-mail

Submit Written Comments to and Identify WAC Numbers: Leslie Baldwin, Rules Coordinator, Rules and Policies Assistance Unit, P.O. Box 45850, Olympia, WA 98504-5850, FAX (360) 902-8292, by June 10, 1997.

Date of Intended Adoption: No sooner than June 11, 1997.

April 30, 1997

Merry A. Kogut, Manager

Rules and Policies Assistance Unit

AMENDATORY SECTION (Amending Order 3858, filed 5/24/95, effective 6/24/95 WAC 388-265-1750 Protective payee fees. (1) The department may authorize a fee to cover approved administrative costs of the protective payee under the following conditions:

(a) The person serving as protective payee is not a ((friend, relative, or)) department employee; and

(b) The client is eligible for:

(i) GA-U;

(ii) ((AFDC)) TANF when the department has determined a client is unable to manage the client's assistance funds; ((or))

(iii) TANF when the department has determined a client is under sanction due to failure, without good cause, to participate in the jobs opportunity and basic skills training (JOBS) program; or

(iv) GA or ((AFDC)) TANF and is a pregnant or parenting minor, and protective payment established under RCW 74.04.0052 or RCW 71.12.255.

(2) The department shall not allow the protective payee to withhold money from the client's grant for payment of the protective payee's costs or services.

(3) "Administrative costs fee" means a fixed amount per assistance recipient, as set forth in the contract between the protective payee and the department.

[Statutory Authority: RCW 74.08.090, 1994 c 299 33, RCW 74.08.280 and 74.50.060(2). 95-11-119 (Order 3858), 388-265-1750, filed 5/24/95, effective 6/24/95. Statutory Authority: RCW 74.08.090. 94-10-065 (Order 3732), 388-265-1750, filed 5/3/94, effective 6/3/94. Formerly WAC 388-33-455 (part).]

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