WSR 97-03-047
EMERGENCY RULES
DEPARTMENT OF
SOCIAL AND HEALTH SERVICES
(Economic Services Administration)
(Public Assistance)
[Filed January 10, 1997, 4:08 p.m.]
Date of Adoption: January 10, 1997.
Purpose: Implements state statute to treat compensatory lump sum awards as a resource and for all other lump sums to exempt the difference of a nonrecurring lump sum payment between the client's existing resource value and the resource ceiling limit and treat the remainder as newly acquired income when received by an applicant/recipient of the temporary assistance for needy families (TANF) program.
Citation of Existing Rules Affected by this Order: Amending WAC 388-218-1820, 388-218-1530, and 388-216-2900.
Statutory Authority for Adoption: RCW 74.08.090, 74.04.050, and 74.04.055.
Other Authority: RCW 74.04.005.
Under RCW 34.05.350 the agency for good cause finds that state or federal law or federal rule or a federal deadline for state receipt of federal funds requires immediate adoption of a rule.
Reasons for this Finding: Changes in federal law require emergency adoption to implement existing state statute to treat compensatory lump sum awards as a resource and for all other lump sums to exempt the difference of a nonrecurring lump sum payment between the client's existing resource value and the resource ceiling limit and treat the remainder as newly acquired income when received by an applicant/recipient of TANF.
Number of Sections Adopted in Order to Comply with Federal Statute: New 0, amended 0, repealed 0; Federal Rules or Standards: New 0, amended 0, repealed 0; or Recently Enacted State Statutes: New 0, amended 3, repealed 0.
Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, amended 0, repealed 0.
Number of Sections Adopted on the Agency's own Initiative: New 0, amended 3, repealed 0.
Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, amended 0, repealed 0.
Number of Sections Adopted using Negotiated Rule Making: New 0, amended 0, repealed 0; Pilot Rule Making: New 0, amended 0, repealed 0; or Other Alternative Rule Making: New 0, amended 0, repealed 0.
Effective Date of Rule: Immediately.
January 10, 1997
Merry Kogut, Manager
Rules and Policies Assistance Unit
AMENDATORY SECTION (Amending Order 3732, filed 5/3/94, effective 6/3/94)
WAC 388-218-1820 Treatment of nonrecurring income--Lump sum((s))
payments. The department shall treat nonrecurring lump sum payments
received by a client and used to accumulate cash reserves in the
following manner:
(1) ((The department shall consider nonrecurring lump sum payments
as income in the month received)) Compensatory awards or related
settlements shall be treated as follows:
(a) Awards or settlements for destroyed or stolen exempt property or medical bills as provided under WAC 388-218-1530; and
(b) All other compensatory awards or settlements as newly acquired resources as provided under WAC 388-216-2900.
(2) ((When the assistance unit's nonrecurrent lump sum income, plus
other income, after applicable disregards exceeds the payment standard,
plus authorized additional requirements, the assistance unit shall be
ineligible for assistance)) All other lump sum payments shall be treated
as follows:
(a) The department shall exempt the difference between the resource ceiling and the client's existing resources when the client received the lump sum. Any excess shall be considered as newly acquired income in the month received.
(b) In determining the client's existing resources, the department shall deduct any unexpended grant monies received within thirty days of the date the client received the lump sum.
(c) Such exemption shall apply once for each nonrecurring lump sum received.
(3) The department shall also apply these requirements to the income of persons required to be included in the assistance unit but are excluded for reasons of sanction or noncooperation.
(4) ((Ineligibility shall exist for the number of full months
derived by dividing this total income by the need standard plus
authorized additional requirements)) If the client's newly acquired
income, plus any other income, after applicable disregards is less than
the payment standard, plus authorized additional requirements, the
department shall deduct the difference from the corresponding payment
month.
(5) ((A minimum period of ineligibility shall be one month)) If the
client's newly acquired income, plus any other income, after applicable
disregards is equal to or exceeds the payment standard plus authorized
additional requirements, the department shall discontinue assistance:
(a) If such income is equal to or in excess of one month's payment standard, but less than two months' payment standard plus authorized additional requirements, the department shall suspend assistance:
(i) Effective the first day of the payment month;
(ii) Shall deduct the income in excess of one month's payment standard plus authorized additional requirements from the grant for the month following the month of suspension; and
(iii) The department shall treat a person acquiring income during suspended status as a recipient in terms of eligibility.
(b) If the income, plus other income, is in excess of two months' payment standard plus authorized additional requirements, the department shall terminate assistance effective the first day of the month of receipt of the income:
(i) Ineligibility shall continue for two months (maximum period of ineligibility is two months);
(ii) Upon completion of the two-month period of ineligibility, the department shall determine eligibility for those that reapply on the same basis as other new applicants.
(6) ((The department shall treat any income remaining after this
calculation is treated as income received in the first month following
the period of ineligibility.
(7))) The department may shorten the period of ineligibility
specified in subsection (5)(b) of this section when the following
conditions are met:
(a) An event occurs which, had the assistance unit been receiving
assistance, would result in an increase in the ((need)) payment standard;
or
(b) The income received, or any part thereof, has become unavailable to the members of the assistance unit for reasons beyond their control; or
(c) Members of the assistance unit incur, become responsible for, and pay medical expenses.
(((8))) (7) Assistance is authorized only after the events in
subsection (((7))) (6)(a), (b), or (c) of this section have been verified
and current eligibility has been established.
[Statutory Authority: RCW 74.08.090. 94-10-065 (Order 3732), 388-218-1820, filed 5/3/94, effective 6/3/94. Formerly parts of WAC 388-28-480
and 388-28-484]
AMENDATORY SECTION (Amending Order 3732, filed 5/3/94, effective 6/3/94)
WAC 388-218-1530 Determining net income--Other income. (1) Net income from any other nonexempt source shall be the gross amount less any cost of securing or maintaining the income.
(2) The department shall consider any payments on mortgages or contracts as income less any cost of securing or maintaining the income.
(3) The department shall consider a compensatory award or related
settlement covering destroyed or stolen exempt property as a newly
acquired ((nonexempt income)) resource as provided under WAC 388-216-2900
unless the client, within sixty days of receipt:
(a) Expends the funds to repair or replace the destroyed or stolen exempt property for which the settlement was intended; or
(b) Pays medical bills for which the settlement was intended.
(4) The department shall consider funds deposited into a joint account or into an account held for another, or funds held for others as the income of the client since the entire amount is at the client's disposal, except when the client can show that all or a portion of the funds are:
(a) Derived from funds belonging exclusively to the other holder; and
(b) Held and/or utilized solely for the benefit of that holder. The department shall not consider all funds so verified as actually available to the client.
(5) When appointment of a legal guardian is required by the Social
Security Administration or the Veterans Administration as a condition for
receipt of a benefit from either agency, the necessary costs of securing
a guardian shall be deducted from the benefit received to determine the
client's net income.
[Statutory Authority: RCW 74.08.090. 94-10-065 (Order 3732), 388-218-1530, filed 5/3/94, effective 6/3/94. Formerly parts of WAC 388-28-438,
388-28-474, 388-28-555 and 388-28-580.]
AMENDATORY SECTION (Amending Order 3732, filed 5/3/94, effective 6/3/94)
WAC 388-216-2900 Resources--Newly acquired resources. When a client obtains a newly acquired resource, the department shall:
(1) Apply the resource exemptions to newly acquired resources.
(2) Treat income tax refunds as follows:
(a) ((The department shall)) Consider an income tax refund as a
nonexempt resource in the month of receipt; and
(b) ((The department shall)) Consider the Earned Income Tax Credit
(EITC) portion of an income tax refund as an exempt resource in the month
of receipt and in the month following the month of receipt. The
department shall consider the EITC as a nonexempt resource in the second
month following the month of receipt.
(3) Treat lump sum compensatory awards and related settlements not exempt under WAC 388-218-1530 as resources exempt within ceiling limits on the first of the month following the month of receipt. A recipient may reduce the value of a compensatory award or settlement prior to the first of the month following the month of receipt provided the award or settlement monies are not transferred for less than adequate consideration with the intent to qualify for assistance as provided under chapter 388-217 WAC.
(4) Add the value of the client's newly acquired resources to the client's existing nonexempt resources. If the recipient's total nonexempt resources are in excess of the resource standard, the recipient is ineligible.
(((4))) (5) Any increase in the value of a resource (such as
interest on a savings account, stock dividends, or livestock births)
affects eligibility only to the extent the increased value causes the
total value of the client's nonexempt resources to exceed the resource
standard. The excess is considered income.
[Statutory Authority: RCW 74.08.090. 94-10-065 (Order 3732), 388-216-2900, filed 5/3/94, effective 6/3/94. Formerly parts of WAC 388-28-435 and 388-28-482.]