H-3625.2          _______________________________________________

                                  HOUSE BILL 2527

                  _______________________________________________

State of Washington              52nd Legislature             1992 Regular Session

By Representatives Grant, Moyer, G. Fisher, Neher, Dellwo, R. King, Wineberry, Dorn, Paris, Franklin, Van Luven, Scott, Haugen, Morris, Ludwig, Ogden, Cooper, Pruitt, Hine, Rasmussen and Brekke

Read first time 01/20/92.  Referred to Committee on Human Services.Allowing certain earnings to be retained by recipients of public assistance.

     AN ACT Relating to earnings of members of assistance units receiving aid to families with dependent children; adding a new section to chapter 74.12 RCW; and creating new sections.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.      The legislature finds that many people receiving assistance under the aid to families with dependent children program cannot meet their financial obligations with the level of assistance provided and must work to supplement their income.  The legislature finds that these people should not be penalized for working by having most of their earned income in effect deducted from their assistance grant.  Therefore, the legislature declares that it shall be the policy of the state of Washington that aid to families with dependent children recipients be allowed to retain half of their earned income and that the children of these families be allowed to retain all of their earned income.

NEW SECTION. Sec. 2.  A new section is added to chapter 74.12 RCW to read as follows:

     (1) The secretary shall petition the federal government for a waiver under the aid to families with dependent children program.  The terms of the waiver shall be as follows:

     (a) In determining the total income of families applying for or receiving assistance under the aid to families with dependent children program, one dollar of earned income for every two dollars of income earned by the parent of a dependent child shall be disregarded.

     (b) In determining the total income of families applying for or receiving assistance under the aid to families with dependent children program, the earned income of children in families shall be disregarded.

     (2) Upon the effective date of the waiver, members of assistance units receiving aid to families with dependent children shall be allowed to retain their earned income as specified in subsection (1) of this section.

NEW SECTION. Sec. 3.      The department shall report on the status of the waiver and implementation of the requirements of section 2 of this act to the appropriate standing committees of the legislature by December 1, 1992.