WSR 15-03-074
PROPOSED RULES
DEPARTMENT OF
SOCIAL AND HEALTH SERVICES
(Economic Services Administration)
[Filed January 16, 2015, 11:13 a.m.]
Original Notice.
Preproposal statement of inquiry was filed as WSR 14-24-078.
Title of Rule and Other Identifying Information: WAC 388-450-0085 Does the department count all of my self-employment income to determine if I am eligible for benefits?
Hearing Location(s): Office Building 2, DSHS Headquarters, 1115 Washington, Olympia, WA 98504 (public parking at 11th and Jefferson. A map is available at http://www1.dshs.wa.gov/msa/rpau/RPAU-OB-2directions.html), on February 24, 2015, at 10:00 a.m.
Date of Intended Adoption: Not earlier than February 25, 2015.
Submit Written Comments to: DSHS Rules Coordinator, P.O. Box 45850, Olympia, WA 98504, e-mail DSHSRPAURulesCoordinator@dshs.wa.gov, fax (360) 664-6185, by 5:00 p.m., February 24, 2015.
Assistance for Persons with Disabilities: Contact Jeff Kildahl, DSHS rules consultant, TTY (360) 664-6178 or (360) 664-6092 or e-mail at Kildaja@dshs.wa.gov.
Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: This department is proposing to amend WAC 388-450-0085 to allow households with self-employment income and who receive cash and/or food assistance to take the greater of:
A standard fifty percent deduction from the gross self-employment income; or
A deduction consisting of actual verified and allowable cost of producing self-employment income.
This rule will eliminate the current $100 standard self-employment income deduction for cost of doing business.
Statutory Authority for Adoption: RCW 74.04.050, 74.04.055, 74.04.057, 74.04.510, and 74.08.090.
Statute Being Implemented: RCW 74.04.050, 74.04.055, 74.04.057, 74.04.510, and 74.08.090.
Rule is necessary because of federal law, 7 C.F.R. 273.11 (b)(3)(iv).
Name of Proponent: Department of social and health services, governmental.
Name of Agency Personnel Responsible for Drafting, Implementation, and Enforcement: Robert Thibodeau, 712 Pear Street S.E., Olympia, WA 98504, (360) 725-4634.
No small business economic impact statement has been prepared under chapter 19.85 RCW. These proposed rules do not have an economic impact on small businesses. The proposed amendment only affects certain households served by DSHS who claim self-employment income to be counted toward financial eligibility and benefit level for cash and food assistance.
A cost-benefit analysis is not required under RCW 34.05.328. These amendments are exempt as allowed under RCW 34.05.328 (5)(b)(vii) which states in part, "[t]his section does not apply to … rules of the department of social and health services relating only to client medical or financial eligibility and rules concerning liability for care of dependents."
January 13, 2015
Katherine I. Vasquez
Rules Coordinator
AMENDATORY SECTION (Amending WSR 13-18-007, filed 8/22/13, effective 10/1/13)
WAC 388-450-0085 Does the department count all of my self-employment income to determine if I am eligible for benefits?
This section applies to cash assistance and Basic Food programs.
(1) We decide how much of your self-employment income to count by:
(a) Adding together your gross self-employment income and any profit you make from selling your business property or equipment;
(b) Subtracting your business expenses as described in subsection (2) below; and
(c) Dividing the remaining amount of self-employment income by the number of months over which the income will be averaged.
(2) We subtract ((one hundred dollars)) the greater value of one of the following as a business expense:
(a) Fifty percent of the gross self-employment income total described in subsection (1)(a) in this section even if your costs are less than this; or
(b) The actual verified and allowable costs of producing your self-employment income. If you want us to subtract your actual costs ((of more than one hundred dollars)), you must list and give us proof of your expenses within the time limits under WAC 388-406-0030 for us to count them.
(c) We never allow the following expenses when calculating (2)(b):
(((a))) (i) Federal, state, and local income taxes;
(((b))) (ii) Money set aside for retirement purposes;
(((c))) (iii) Personal work-related expenses (such as travel to and from work);
(((d))) (iv) Net losses from previous periods;
(((e))) (v) Depreciation; or
(((f))) (vi) Any amount that is more than the payment you get from a boarder for lodging and meals.
(3) If you have worked at your business for less than a year, we figure your gross self-employment income by averaging:
(a) The income over the period of time the business has been in operation; and
(b) The monthly amount we estimate you will get for the coming year.
(4) For cash assistance, if your self-employment expenses are more than your self-employment income, we do not use this "loss" to reduce income from other self-employment businesses or other sources of income to your assistance unit.
(5) For Basic Food, we use a "loss" from self-employment farming or fishing income to reduce other sources of income only if you meet the following three conditions:
(a) Someone in your assistance unit is a self-employed farmer or fisher;
(b) Your gross yearly income from farming or fishing is or is expected to be at least one thousand dollars; and
(c) Your allowable costs for farming or fishing are more than your income from farming or fishing.