WSR 07-22-037

PROPOSED RULES

DEPARTMENT OF

SOCIAL AND HEALTH SERVICES
(Economic Services Administration)

[ Filed October 30, 2007, 1:58 p.m. ]

Original Notice.

Preproposal statement of inquiry was filed as WSR 07-17-032.

Title of Rule and Other Identifying Information: WAC 388-455-0005 How lump sum payments affect benefits, 388-455-0010 How the department treats lump sum payments as a resource for cash assistance and TANF/SFA-related medical assistance, and 388-455-0015 How the department treats lump sum payments as income for cash assistance and TANF/SFA-related medical assistance.

Hearing Location(s): Blake Office Park East, Rose Room, 4500 10th Avenue S.E., Lacey, WA 98503 (one block north of the intersection of Pacific Avenue S.E. and Alhadeff Lane. A map or directions are available at http://www1.dshs.wa.gov/msa/rpau/docket.html or by calling (360) 664-6097), on December 11, 2007, at 10:00 a.m.

Date of Intended Adoption: Not earlier than December 12, 2007.

Submit Written Comments to: DSHS Rules Coordinator, P.O. Box 45850, Olympia, WA 98504, delivery 4500 10th Avenue S.E., Lacey, WA 98503, e-mail DSHSRPAURulesCoordinator@dshs.wa.gov, fax (360) 664-6185, by 5:00 p.m. on December 11, 2007.

Assistance for Persons with Disabilities: Contact Jennisha Johnson, DSHS Rules Consultant, by December 4, 2007, TTY (360) 664-6178 or (360) 664-6094 or by e-mail at johnsjl4@dshs.wa.gov.

Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: The current rules describe the department's policy on how a lump sum payment impacts a person's eligibility for cash, medical, and food assistance benefits.

The proposed changes correct a reference to another department rule and revise the text to make the rules more readily understood.

Reasons Supporting Proposal: The proposed changes are editorial in nature and do not change current policy related to lump sum payments.

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

Statute Being Implemented: RCW 74.04.050, 74.04.055, 74.04.057, 74.04.510, 74.08.090.

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

Name of Proponent: Department of social and health services, governmental.

Name of Agency Personnel Responsible for Drafting, Implementation and Enforcement: John Camp, 1009 College S.E., Lacey, WA 98504, (360) 725-4616.

No small business economic impact statement has been prepared under chapter 19.85 RCW. This proposed rule does not have an economic impact on small businesses, it only affects DSHS clients by setting eligibility rules related to how a lump sum payment impacts eligibility for cash, medical, and food assistance programs.

A cost-benefit analysis is not required under RCW 34.05.328. These amendments are exempt as allowed under RCW 34.05.328 (5)(b)(vii) which states in-part, "[t]his section does not apply to...rules of the department of social and health services relating only to client medical or financial eligibility and rules concerning liability for care of dependents."

October 26, 2007

Stephanie E. Schiller

Rules Coordinator

3920.2
AMENDATORY SECTION(Amending WSR 99-24-008, filed 11/19/99, effective 1/1/00)

WAC 388-455-0005   How do lump sum payments affect benefits((.))?   (1) ((For the purpose of determining benefits for cash assistance, temporary assistance for needy families (TANF)/state family assistance (SFA)-related medical assistance, and food assistance,)) A lump sum payment is money that ((the client)) someone receives but does not expect to receive on a continuing basis.

(2) For cash assistance and TANF/SFA-related medical assistance, we count a lump sum payment:

(a) ((The department counts payments)) Awarded for wrongful death, personal injury, damage, or loss of property as a resource((s as described in)) under WAC 388-455-0010.

(b) ((We count all other lump sum payments)) Received for any other reason as income ((as described in)) under WAC 388-455-0015.

(3) ((For food assistance, all lump sum payments are counted as resources as described in WAC 388-470-0055)) For Basic Food, we count lump sum payments for a previous period as a resource under WAC 388-470-0055. We count any amount for current or future months as income to your assistance unit.

[Statutory Authority: RCW 74.08.090 and 74.04.510. 99-24-008, 388-455-0005, filed 11/19/99, effective 1/1/00.]


AMENDATORY SECTION(Amending WSR 99-24-008, filed 11/19/99, effective 1/1/00)

WAC 388-455-0010   ((How)) When does the department treat((s)) lump sum payments as a resource for cash assistance and TANF/SFA-related medical assistance((.))?   This section applies to cash assistance and TANF/SFA-related medical assistance.

(1) ((In the month the payment is received, the department does not count any amount of a lump sum payment)) If you receive a lump sum payment, we do not count any amount of the payment as income that is awarded for:

(a) Wrongful death;

(b) Personal injury;

(c) Damage; or

(d) Loss of property.

(2) ((In the month following the month of receipt, we count the entire amount as a resource except for the portion of the payment designated for:

(a) Repair or replacement of damaged or lost property; or

(b) Medical bills)) If a portion of the payment is designated for medical bills or to repair or replace damaged or lost property, we exclude this amount as a resource for sixty days after the month you received the payment.

(3) ((We do not count the portion described in subsection (2) of this section for sixty days following the month the payment is received. At the end of the sixty-day period, we count any amount that remains as a resource)) We count the following portion of you lump sum payment as a resource:

(a) Any amount of the payment not designated for medical bills or to repair/replace damaged or lost property; and

(b) Any amount of the payment you have left after the sixty-day period in subsection (2) is over.

[Statutory Authority: RCW 74.08.090 and 74.04.510. 99-24-008, 388-455-0010, filed 11/19/99, effective 1/1/00.]


AMENDATORY SECTION(Amending WSR 99-24-008, filed 11/19/99, effective 1/1/00)

WAC 388-455-0015   How ((the department treats)) do lump sum payments count as income for cash assistance and TANF/SFA-related medical assistance.   ((For cash assistance and TANF/SFA-related medical assistance, lump sum payments not awarded for wrongful death, personal injury, damage, or loss of property are counted as income. They are budgeted against the client's benefits according to the effective dates in WAC 388-418-0020. The rules in this section describe what portion is countable and when the department counts it. For rules on how lump sum payments awarded for wrongful death, personal injury, damage, or loss of property affect benefits, see WAC 388-450-0010)) This section applies to cash, and TANF/SFA-related medical assistance.

(1) ((To identify what portion of the lump sum the department will count as income, we take the following steps:

(a) First, we subtract the value of your existing resources from the resource limit as described in WAC 388-470-0005;

(b) Then, we subtract the difference in (1)(a) from the total amount of the lump sum; and

(c) The amount left over is the countable amount of the lump sum)) If you receive a lump sum payment that is not awarded for wrongful death, personal injury, damage, or loss of property, we count this payment as income to your assistance unit. We budget this income according to effective date rules under WAC 388-418-0020.

(2) For cash assistance, ((the amount of the lump sum that is countable may change if any or all of the lump sum becomes unavailable for reasons beyond your control. See WAC 388-450-0005. When the countable amount of the lump sum is:

(a) Less than your payment standard plus additional requirements, we consider it as income in the month it is received.

(b) More than one month's payment standard plus additional requirements but less than two months:

(i) We consider the portion equal to one month's payment standard plus additional requirements as income in the month it is received; and

(ii) We consider the remainder as income the following month.

(c) Equal to or greater than the total of the payment standard plus additional requirements for the month of receipt and the following month, we consider the payment as income for those months)) if you cannot access some or all of your lump sum payment for reasons beyond your control, we will adjust the amount we count as income to your assistance unit as described under WAC 388-450-0005.

(3) ((If you are ineligible or disqualified from receiving cash benefits and you receive a one-time lump sum payment)) To decide the amount of your lump sum we count as income, we take the following steps:

(a) ((We allocate the payment to meet your needs as specified in WAC 388-450-0105)) First, we subtract the value of your current resources from the resource limit under WAC 388-470-0005; ((and))

(b) ((The remainder is treated as a lump sum payment available to the eligible assistance unit members according to the rules of this section)) Then, we subtract the difference in (3)(a) from the total amount of the lump sum; and

(c) The amount left over is what we count as income.

(4) ((You can avoid having the lump sum budgeted against your benefits if you request termination of your cash assistance the month before you receive the lump sum)) When the countable amount of the lump sum payment is:

(a) Less than your payment standard plus additional requirements, we consider it as income in the month it is received.

(b) More than one month's payment standard plus additional requirements but less than two months:

(i) We consider the portion equal to one month's payment standard plus additional requirements as income in the month it is received; and

(ii) We consider the remainder as income the following month.

(c) Equal to or greater than the total of the payment standard plus additional requirements for the month of receipt and the following month, we consider the payment as income for those months.

(5) If you are ineligible or disqualified from receiving cash benefits and you receive a one-time lump sum payment:

(a) We allocate the payment to meet your needs as described under WAC 388-450-0105; and

(b) Count the remainder as a lump sum payment available to eligible members of your assistance unit according to the rules of this section.

(((5))) (6) For TANF/SFA-related medical assistance:

(a) We ((consider)) count lump sum payments as income in the month ((of receipt)) you receive the payment.

(b) We ((consider)) count any money that remains on the first of the next month as a resource.

[Statutory Authority: RCW 74.08.090 and 74.04.510. 99-24-008, 388-455-0015, filed 11/19/99, effective 1/1/00.]

Washington State Code Reviser's Office