H-4526              _______________________________________________

                                    SECOND SUBSTITUTE HOUSE BILL NO. 2910

                        _______________________________________________

State of Washington                               51st Legislature                              1990 Regular Session

By House Committee on Appropriations (originally sponsored by Representatives Sayan, Moyer, Brekke, Leonard, Hine, Belcher, Brooks, Spanel, Wineberry, Valle, Van Luven, Anderson, Winsley, R. King, Jacobsen, Wang, Basich, Wolfe, Brumsickle, O'Brien, Ferguson, R. Meyers, Phillips, Grant, Heavey, Todd, Dellwo, P. King, Cole, Scott, Ebersole, Tate, Betrozoff, Walker, Bowman, Cooper, Raiter, Crane, Gallagher, Miller, Rayburn, Rasmussen, Vekich, Holland, Peery, Rust, Jones, Wood, Appelwick, Locke, Beck, Morris, Day, Padden, R. Fisher, Nutley, Fraser, Pruitt, Hargrove, Rector, Zellinsky, Smith, May, Hankins, D. Sommers, Fuhrman and Nelson)

Read first time 2/6/90.

AN ACT Relating to payment standards for public assistance programs; amending RCW 74.04.770; adding new sections to chapter 74.04 RCW; creating new sections; and providing an effective date.

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

NEW SECTION. Sec. 1.     The legislature finds that:

          (1) Poverty is a significant problem facing a large portion of Washington's children.

          (2) Poor children's families have experienced a severe erosion in purchasing power during the past decade because of a failure to provide income assistance based on actual minimal living costs.

          (3) Poor children will suffer disproportionate social disorders, health problems, and lowered educational achievements because of their impoverishment.

          (4) Adequate grant standards have a beneficial impact on the state economy by providing additional assistance to low-income consumers who use their increased purchasing power to obtain food, clothing, shelter, and other basic necessities of life.

          (5) A long-range plan with specific goals and objectives is an effective means to end poverty in Washington by the year 2000.

          (6) The current welfare system provides a disincentive to work and in some cases actually limits family income to levels below the standard of need.

NEW SECTION. Sec. 2.     By December 1, 1990, the department shall report to the legislature on possible changes in earnings deductions from grant levels in order to increase incentives for welfare recipients to work and raise their incomes closer to the standard of need.  The department shall consider making earnings deductions from the need standard rather than from the grant standard.  It shall also consider other options available within existing federal statutes.

NEW SECTION. Sec. 3.     The department shall establish the grant standard for all income assistance programs as a percentage of the standard of need established under RCW 74.04.770.  The grant standard shall not be less than sixty percent of the standard of need by June 30, 1991.  The grant standard shall not be less than sixty-five percent of the standard of need by June 30, 1993.  The grant standard shall not be less than seventy percent of the standard of need by June 30, 1995.  The grant standard shall not be less than seventy-five percent of the standard of need by June 30, 1997.  The grant standard shall not be less than eighty percent of the standard of need by June 30, 1999.  The grant standard shall not be less than eighty-five percent of the standard of need by June 30, 2001.  The grant standard shall not be less than ninety percent of the standard of need by June 30, 2003.  The grant standard shall not be less than ninety-five percent of the standard of need by June 30, 2005.  The grant standard shall not be less than one hundred percent of the standard of need by June 30, 2007.

NEW SECTION. Sec. 4.     The maximum rateable reduction that may be imposed by the department shall not exceed fifteen percent of the grant standard for all income assistance programs.  Prior to imposing any rateable reduction, the department shall report to the appropriate committees of the legislature the nature of the problem that requires a rateable reduction and all alternative solutions that were considered and rejected.

NEW SECTION. Sec. 5.     The department shall on a routine basis review all cases of clients who have received grants for a consecutive period of twenty-four months or more to determine if a training or employment plan can be developed in consultation with the client that will assist the client in raising his or her income above the income assistance eligibility level.

        Sec. 6.  Section 4, chapter 10, Laws of 1981 2nd ex. sess. as amended by section 38, chapter 41, Laws of 1983 1st ex. sess. and RCW 74.04.770 are each amended to read as follows:

(1) The ((department)) legislative budget committee, through contract with an independent research organization, shall establish consolidated standards of need each fiscal year, on July 1, which may vary by geographical areas, program, and family size, for aid to families with dependent children, refugee assistance, supplemental security income, and general assistance.  Standards for aid to families with dependent children, refugee assistance, and general assistance shall be based on studies of actual living costs and generally recognized inflation indices and shall include reasonable allowances for shelter, fuel, food, transportation, clothing, household maintenance and operations, personal maintenance, and necessary incidentals.  The standard of need may take into account the economies of joint living arrangements, but unless explicitly required by federal statute, there shall not be proration of any portion of assistance grants unless the amount of the grant standard is equal to the standard of need.

(2) The department is authorized to establish rateable reductions and grant maximums consistent with federal law.  Payment level will be equal to need or a lesser amount if rateable reductions or grant maximums are imposed.  This subsection shall not apply after June 30, 2007.

(3) In no case shall a recipient of supplemental security income receive a state supplement less than the minimum required by federal law.

(4) The department may establish a separate standard for shelter provided at no cost.

NEW SECTION. Sec. 7.     Sections 3 through 5 of this act are each added to chapter 74.04 RCW.

NEW SECTION. Sec. 8.     Section 4 of this act shall take effect on July 1, 2007.