H-4406              _______________________________________________

                                                   HOUSE BILL NO. 1836

                        _______________________________________________

State of Washington                              50th Legislature                              1988 Regular Session

By Representatives Hargrove, Wineberry, Schoon, Vekich, Braddock, Brekke, Sanders, Winsley, Lewis and Todd

Read first time 1/27/88 and referred to Committee on Trade & Economic Development.

AN ACT Relating to economic development; adding a new section to chapter 74.12 RCW; and creating a new section.

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

NEW SECTION. Sec. 1.     The health of our state's economy requires the promotion of entrepreneurship and new enterprise development as well as the retention of existing jobs.  Encouraging families who are recipients of aid to families with dependent children to become self-sufficient through self-employment will improve the lives of citizens in this state.

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

          The secretary of social and health services shall seek an exception to federal law under the waiver authorities set forth in the federal social security act, 42 U.S.C. Sec. 301 et seq., for the purposes of allowing recipients of aid to families with dependent children to become self-employed in a manner that will lead to economic independence.  The application for waivers shall be sought by October 1, 1988.

          If the waivers are obtained, the department shall adopt rules that allow a recipient to separate business assets from personal assets during a start-up period not exceeding two years.  The rules shall provide for evaluation of business progress during the start-up period and, if it appears to the department that sufficient income exists to provide an adequate income to replace the aid to families with dependent children, the recipient has the burden of showing why the recipient is not ready to terminate the aid prior to the expiration of the start-up period.

          Any program operated under this section shall be operated in cooperation with any demonstration project on self-entrepreneurship operated by the employment security department.