AN ACT Relating to the financial partnership plan for services provided and funded by the department of social and health services; reenacting and amending RCW 74.20A.030; adding a new section to chapter 69.54 RCW; adding a new section to chapter 70.01 RCW; adding a new section to chapter 71.05 RCW; adding a new section to chapter 71.24 RCW; adding a new section to chapter 71.34 RCW; adding a new section to chapter 72.33 RCW; adding a new section to chapter 74.26 RCW; adding new sections to chapter 43.20B RCW; creating new sections; repealing RCW 74.26.060; and providing an effective date.

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

NEW SECTION. Sec. 1. Sections 1 through 5 of this act may be known and cited as the department of social and health services financial partnership plan.

NEW SECTION. Sec. 2. (1) The legislature recognizes the mission of the department of social and health services, hereinafter referred to as the "department," to help individuals and families who are unable to fully provide for their primary basic needs; to protect the general public, especially those individuals unable to protect themselves; and to provide rehabilitative and habilitative services to individuals who are mentally, developmentally, or physically disabled. The legislature also recognizes the responsibility and ability of some individuals to participate financially with the department in the provision of these services. The legislature, therefore, declares it to be public policy that:

(a) It is the responsibility of Washington state residents to provide for themselves, their spouse, and their unmarried minor children to the best of their ability;

(b) The department shall continue to provide services and encourage and assist families and individuals to meet the primary responsibility of providing for themselves, their spouses, and their unmarried minor children;

(c) When the department does assist individuals and families in meeting their primary responsibilities, the department should recover the costs of the services based upon the ability of the individual, the individual's estate, or family, to pay. Recovery of costs is not intended to result in the impoverishment of the individual or family, or in the significant impairment of their ability to discharge their primary responsibilities; and

(d) Funds collected under this act shall be returned to the departmental program for which financial participation was assessed.

(2) In order to implement this public policy, the department shall:

(a) Apply the financial participation criteria in section 4 of this act uniformly across all existing and new programs unless a program is specifically exempted in this act;

(b) Investigate the financial condition of persons potentially liable for the costs of services provided in order to make a determination of that person's financial participation based on ability to pay;

(c) Provide for a one-time one hundred dollar exemption per family for services to encourage early access to services; and

(d) Assess on the responsible party or parties the amount of financial participation based on ability to pay and recover that participation.

(3) The department shall not:

(a) Assess or recover any financial participation in excess of the cost of the service;

(b) Deny services to an individual, including a minor, solely because of:

(i) Inability to pay;

(ii) The existence of a previously unpaid obligation to the department; or

(iii) The refusal of a responsible party to pay for services previously provided to a minor; or

(4) The secretary of the department may waive liability for financial participation if, in the secretary's discretion, the assessed liability would not be in the best interest of the state.

(5) Nothing in this chapter is intended to prohibit the department or a provider of services for the department from accepting voluntary donations of monetary or other gifts.

NEW SECTION. Sec. 3. As used in sections 1 through 5 of this act, the following terms have the meanings indicated unless the context clearly requires otherwise.

(1) "Department" means the department of social and health services.

(2) "Family" means an individual, his or her spouse, and his or her unmarried minor children, or any combination thereof.

(3) "Financial eligibility service" means any service provided or funded by the department that is made available to an individual or family based on a preeligibility financial means test.

(4) "Gross income" means the gross amount of all income declared for income tax purposes.

(5) "Minor" means an unmarried person under the age of eighteen.

(6) "Protective service" means any service provided or funded by the department in response to an allegation of abuse, neglect, or domestic violence.

(7) "Recipient" means any person receiving any nonfinancial eligibility service which is provided or funded by the department and includes multiservice users.

(8) "Residential service" means any service provided directly, or funded, by the department that provides food and shelter, in addition to other services, on a twenty-four hour basis.

(9) "Responsible party" means an individual, his or her spouse, or the parents of a minor, receiving services provided or funded by the department. A representative payee, fiduciary, or legal guardian of the recipient is a responsible party only to the extent of benefits received, assets of the estate, or both.

NEW SECTION. Sec. 4. (1) A recipient, other responsible party, or both, are liable for the cost of any nonfinancial eligibility service provided or funded by the department whether the services are provided on a voluntary or involuntary basis. Liability is limited to the ability of the recipient, the responsible party, or both, to pay.

(2) A determination of financial participation shall be made annually by the department based on ability to pay.

(3) The amount of financial participation shall not exceed the cost of the service provided including the costs of collection.

(4) Insurance benefits for which the recipient, or responsible party on behalf of the recipient, is eligible or potentially eligible shall be applied to the actual costs of services provided by or for the department to the full extent of the coverage prior to the calculation of ability to pay as provided in this section. For the purpose of this section, insurance benefits include private or group policies and government entitlement programs that provide coverage for the service furnished or funded by the department.

(5) The maximum amount of annual financial participation for a family for services received shall be determined by the following formula:

Gross income minus fifty percent of the state median income as adjusted for family size, with the result multiplied by a percentage which is based on a sliding scale. The sliding scale is as follows:

(a) For annual gross incomes less than sixteen thousand dollars, ten percent;

(b) For annual gross incomes of sixteen thousand dollars or more, but less than twenty-one thousand dollars, twelve percent;

(c) For annual gross incomes of twenty-one thousand dollars or more, but less than twenty-six thousand dollars, fourteen percent;

(d) For annual gross incomes of twenty-six thousand dollars or more, but less than thirty-one thousand dollars, sixteen percent;

(e) For annual gross incomes of thirty-one thousand dollars or more, but less than thirty-six thousand dollars, eighteen percent; and

(f) For annual gross incomes of thirty-six thousand dollars or more, twenty percent.

(6) Family size for this purpose is that number of exemptions for the recipient's family allowed by federal income tax regulations.

(7) For families who use services over a long period, the amount of state median income protected under the formula should be adjusted for each year the individual or family participates in the cost of care. The amount of state median income protected will increase by three percent each year for the first five year, two percent each year the second five years, and one percent each year the remaining years.

(8) A recipient of residential services who constitutes a family size of one shall be expected to participate to the full extent of gross earned and unearned annual income less a reasonable amount for personal expenses, to secure or to retain community housing, or both.

(9) The department shall establish and maintain a central system for determining and assessing ability to pay, for accounting, and for collecting financial participation.

(10) The department shall adopt rules establishing criteria for determining ability to pay, issuing notices of financial liability and notices of delinquency, and securing repayment.

NEW SECTION. Sec. 5. Financial participation is due and payable within thirty days after billing. The department shall adopt rules establishing criteria for declaring an obligation delinquent and for recovering delinquent obligations. If the responsible party fails to voluntarily pay the determined financial participation within that time without adequate justification, the account becomes delinquent and a notice of delinquency will be served. If the responsible party fails to adequately respond to the notice of delinquency, the department may issue an order to withhold and deliver, or pursue its other remedies.

Sec. 6. Section 3, chapter 164, Laws of 1971 ex. sess. as last amended by section 913, chapter 176, Laws of 1988 and by section 20, chapter 275, Laws of 1988 and RCW 74.20A.030 are each reenacted and amended to read as follows:

The department shall be subrogated to the right of any dependent child or children or person having the care, custody, and control of said child or children, if public assistance money is paid to or for the benefit of the child, to prosecute or maintain any support action or execute any administrative remedy existing under the laws of the state of Washington to obtain reimbursement of moneys expended, based on the support obligation of the responsible parent established by a superior court order or RCW 74.20A.055. Distribution of any support moneys shall be made in accordance with 42 U.S.C. Sec. 657.

Public assistance moneys shall be exempt from collection action under this chapter except as provided in RCW 74.20A.270.

((~~No collection action shall be taken against parents of children eligible for admission to, or children who have been discharged from a residential habilitation center as defined by RCW 71A.10.020(7).~~))

The department may initiate, continue, maintain, or execute action to establish, enforce, and collect a support obligation, including establishing paternity and performing related services, under this chapter and chapter 74.20 RCW, or through the attorney general or prosecuting attorney under chapter 26.09, 26.18, 26.20, 26.21, or 26.26 RCW or other appropriate statutes or the common law of this state, for a period not to exceed three months from the month following the month in which the family or any member thereof ceases to receive public assistance and thereafter if a nonassistance request for support enforcement services has been made under RCW 74.20.040 and 26.23.030.

NEW SECTION. Sec. 7. A new section is added to chapter 69.54 RCW to read as follows:

Any recipient of services provided or funded by the department under this chapter and any other responsible party as defined in section 3 of this act, shall be liable for the cost of those services based on ability to pay. The department shall determine ability to pay and the required financial participation in the manner provided in section 4 of this act, and shall recover that required participation under this chapter.

NEW SECTION. Sec. 8. A new section is added to chapter 70.01 RCW to read as follows:

NEW SECTION. Sec. 9. A new section is added to chapter 71.05 RCW to read as follows:

NEW SECTION. Sec. 10. A new section is added to chapter 71.24 RCW to read as follows:

NEW SECTION. Sec. 11. A new section is added to chapter 72.33 RCW to read as follows:

NEW SECTION. Sec. 12. A new section is added to chapter 71.34 RCW to read as follows:

NEW SECTION. Sec. 13. A new section is added to chapter 74.26 RCW to read as follows:

NEW SECTION. Sec. 14. Sections 1 through 5 of this act shall be added to chapter 43.20B RCW and codified with the subchapter heading of "department of social and health services Financial Partnership Plan".

NEW SECTION. Sec. 15. The enactment of this 1989 act shall not have the effect of terminating or in any way modifying any liability, civil or criminal, which is already in existence on the effective date of this 1989 act.

NEW SECTION. Sec. 16. Section 6, chapter 106, Laws of 1980 and RCW 74.26.060 are each repealed.

NEW SECTION. Sec. 17. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION. Sec. 18. This act shall take effect, and the secretary of social and health services shall have an implementation plan in place, on October 1, 1989. The secretary may immediately take such steps as are necessary to ensure that this act is implemented according to that plan on its effective date.