WSR 06-08-045



(Economic Services Administration)

[ Filed March 30, 2006, 1:56 p.m. , effective May 1, 2006 ]

Effective Date of Rule: May 1, 2006.

Purpose: Amend WAC 388-450-0085 How we count your self-employment income?, to clarify department policy on deductions the department allows to determine countable income of someone who is self employed. The changes also adopt federal requirements for the food stamp program regarding losses for self-employed fishers of [or] farmers.

Citation of Existing Rules Affected by this Order: Amending WAC 388-450-0085.

Statutory Authority for Adoption: RCW 74.04.050, 74.04.055, 74.04.057, 74.04.510, 74.08.090.

Other Authority: 7 C.F.R. 273.9; 7 C.F.R. 273.11.

Adopted under notice filed as WSR 06-05-020 on February 6, 2006.

Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 1, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.

Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 0, Repealed 0.

Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 0, Repealed 0.

Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 1, Repealed 0.

Date Adopted: March 23, 2006.

Andy Fernando, Manager

Rules and Policies Assistance Unit

AMENDATORY SECTION(Amending WSR 03-13-045, filed 6/11/03, effective 8/1/03)

WAC 388-450-0085   ((How we count your self-employment income)) Does the department count all of my self-employment income to determine if I am eligible for benefits?   This section applies to ((TANF/SFA, GA, RCA)) cash assistance, Basic Food, and medical programs for children, pregnant women and families.

(1) We decide how much of your self-employment income to count by:

(a) Adding together your gross self-employment income and any profit you make from selling your business property or equipment;

(b) Subtracting your business expenses as described in subsection (2) below; and

(c) Dividing the remaining amount of self-employment income by the number of months over which the income will be averaged.

(2) We ((automatically)) subtract one hundred dollars as a business expense even if your costs are less than this. If you want ((to claim)) us to subtract your actual costs of more than one hundred dollars, you must ((itemize and provide)) list and give us proof of your expenses ((in order)) for us to count them. We never allow the following expenses:

(a) Federal, state, and local income taxes;

(b) Money set aside for retirement purposes;

(c) Personal work-related expenses (such as travel to and from work);

(d) Net losses from previous periods;

(e) Depreciation; or

(f) Any amount that ((exceeds)) is more than the payment you get from a boarder for lodging and meals.

(3) If you have worked at your business for less than a year, we figure your gross self-employment income by averaging:

(a) The income over the period of time the business has been in operation; and

(b) The monthly amount ((estimated)) we estimate you will get for the coming year.

(4) For cash and medical assistance, if your self-employment expenses are more than your self-employment income, we do not use this "loss" to reduce income from other self-employment businesses or other sources of income to your assistance unit.

(5) For Basic Food, we use a "loss" from self-employment farming or fishing income to reduce other sources of income only if you meet the following three conditions:

(a) Someone in your assistance unit is a self-employed farmer or fisher;

(b) Your gross yearly income from farming or fishing is or is expected to be at least one thousand dollars; and

(c) Your allowable costs for farming or fishing are more than your income from farming or fishing.

[Statutory Authority: RCW 74.04.050, 74.04.055, 74.04.057, and 74.04.510. 03-13-045, 388-450-0085, filed 6/11/03, effective 8/1/03. Statutory Authority: RCW 74.08.090 and 74.04.510. 01-19-020, 388-450-0085, filed 9/11/01, effective 10/1/01; 99-16-024, 388-450-0085, filed 7/26/99, effective 9/1/99. Statutory Authority: RCW 74.04.050, 74.04.055, 74.04.057 and 74.08.090. 98-16-044, 388-450-0085, filed 7/31/98, effective 9/1/98.]

Washington State Code Reviser's Office