Date of Adoption: September 15, 2003.

     Purpose: Updates to outdated web pages references; housekeeping update.

     Citation of Existing Rules Affected by this Order: Amending WAC 415-600-210, 415-600-260, 415-600-310, and 415-600-410.

     Statutory Authority for Adoption: RCW 41.50.050(5).

     Other Authority: RCW 41.04.600 - 41.04.635.

      Adopted under notice filed as WSR 03-16-096 on August 6, 2003.

     Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 1, Repealed 0.

     Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0;      Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 0, Repealed 0.

     Other Findings Required by Other Provisions of Law as Precondition to Adoption or Effectiveness of Rule: Immediate effectiveness is needed to correct erroneous information.
     Effective Date of Rule: September 20, 2003.

September 15, 2003

Maureen Westgard

for John Charles

Director

OTS-6560.1

AMENDATORY SECTION(Amending WSR 01-21-091, filed 10/22/01, effective 11/22/01)

WAC 415-600-210   How do I enroll in DCAP?   (1) You enroll in the dependent care salary reduction assistance program (DCAP) by submitting a completed salary reduction agreement (SRA) form to the department of retirement systems (DRS).

     (2) SRA forms are available through DRS or its website at ((http://www.wa.gov/drs/forms/)) http://www.drs.wa.gov/forms.

     (3) You may enroll in DCAP:

     (a) During the open-enrollment period;

     (b) Within sixty days of becoming an eligible employee; or

     (c) At any time you have a qualifying change in status as set forth in WAC 415-600-240.

     (4) The open enrollment period is the month of November for the following plan year.

     (5) The enrollment process is complete on the date DRS approves your completed SRA.

[Statutory Authority: RCW 41.50.050(5), 41.04.600 through 41.04.645 and 26 U.S.C. 01-21-091, § 415-600-210, filed 10/22/01, effective 11/22/01.]

     (2) If your spouse is either a full-time student or physically or mentally incapable of self-care, your spouse's earned income is deemed to be:

     (a) Two hundred fifty dollars per month, if you have one qualifying person for whom care is provided; or

     (b) ((Four)) Five hundred dollars per month, if you have two or more qualifying persons for whom care is provided.

[Statutory Authority: RCW 41.50.050(5), 41.04.600 through 41.04.645 and 26 U.S.C. 01-21-091, § 415-600-260, filed 10/22/01, effective 11/22/01.]

     (a) Only expenses incurred on days you work may be reimbursed.

     (b) If you are married, only expenses incurred on days you and your spouse both work may be reimbursed, provided that:

     (i) If your spouse is a full-time student, expenses incurred on days you work and your spouse attends school may be reimbursed.

     (ii) If your spouse is physically or mentally incapable of self-care, expenses incurred on days you work may be reimbursed.

     (2) You may be reimbursed only for expenses incurred during the plan year for which you are enrolled. If you enroll after January 1 of the plan year, you may be reimbursed only for expenses incurred ((from the date)) on or after the first day of the month following the month in which DRS approves your salary reduction agreement.

     (3) Only the cost of care may be reimbursed. The following expenses may be reimbursed, subject to the limitations stated in subsection (4) of this section.

     (a) Expenses for care of a qualifying person in the participant's home, including feeding, administration of medicine, general supervision, and incidental household services; and

     (b) Expenses for care of the following qualifying persons outside the participant's home:

     (i) A dependent of the participant, age twelve or younger, with respect to whom the participant is entitled to a federal tax deduction.

     (ii) Any other qualifying person who regularly spends eight hours or more per day in the participant's home.

     (4) The following limitations apply to the reimbursement of expenses:

     (a) Expenses for food, clothing, and entertainment are reimbursable ONLY IF these expenses cannot be separated from the cost of care.

     (b) Expenses for care in a dependent care center (as defined in Internal Revenue Code (IRC) Section 21(b)) are reimbursable ONLY IF the facility complies with all federal, state, and local laws and regulations.

     (c) Expenses for schooling are reimbursable ONLY IF:

     (i) The schooling is at a prekindergarten level; and

     (ii) The expenses cannot reasonably be separated from the cost of care.

     (d) Payments to a person for whom you or your spouse may claim a dependency exemption for federal income tax purposes are not reimbursable.

     (e) Payments to a nondependent child, as defined in IRC Section 151 (c)(3), are not reimbursable unless the child will be age nineteen or older by December 31 of the plan year.

     (f) Summer camp expenses, when the child stays overnight, are not reimbursable.

     (g) Amounts paid by an employer of your spouse or by an educational institution where your spouse is enrolled as a student are not reimbursable.

[Statutory Authority: RCW 41.50.050(5), 41.04.600 through 41.04.645 and 26 U.S.C. 01-21-091, § 415-600-310, filed 10/22/01, effective 11/22/01.]

     (2) DRS will mail a supply of reimbursement claim forms to you upon confirmation of your enrollment. You can obtain additional forms by phone or on the DRS website, at ((http://www.wa.gov/drs/forms/)) http://www.drs.wa.gov/forms.

     (3) You may submit reimbursement claim forms as often as you wish.

     (4) The reimbursement claim form must be completed, signed, and accompanied by bills, invoices, receipts, or a statement signed by the provider. The department cannot accept canceled checks or credit card statements as verification. All documentation must show the amounts of dependent care expenses and periods of service for which you seek reimbursement.

     (5) DRS must receive claims for expenses incurred during a given plan year on or before March 31 of the following year.

[Statutory Authority: RCW 41.50.050(5), 41.04.600 through 41.04.645 and 26 U.S.C. 01-21-091, § 415-600-410, filed 10/22/01, effective 11/22/01.]

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