Original Notice.

     Preproposal statement of inquiry was filed as WSR 05-19-125.

     Title of Rule and Other Identifying Information: Chapter 388-527 WAC, Estate recovery.

     Hearing Location(s): Blake Office Park East, Rose Room, 4500 10th Avenue S.E., Lacey, WA 98503 (one block north of the intersection of Pacific Avenue S.E. and Alhadeff Lane, behind Goodyear Tire. A map or directions are available at http://www1.dshs.wa.gov/msa/rpau/docket.html or by calling (360) 664-6097), on March 7, 2006, at 10:00 a.m.

     Date of Intended Adoption: Not earlier than March 8, 2006.

     Submit Written Comments to: DSHS Rules Coordinator, P.O. Box 45850, Olympia, WA 98504, delivery 4500 10th Avenue S.E., Lacey, WA 98503, e-mail fernaax@dshs.wa.gov, fax (360) 664-6185, by 5:00 p.m. on March 7, 2006.

     Assistance for Persons with Disabilities: Contact Stephanie Schiller, DSHS Rules Consultant, by March 3, 2006, TTY (360) 664-6178 or (360) 664-6097 or by e-mail at schilse@dshs.wa.gov.

     Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: The proposed amendments to this chapter are necessary to establish rules and procedural guides for the implementation of SHB 2304 (chapter 292, Laws of 2005). Specifically to:

•     Include life estates and joint tenancy among assets subject to estate recovery;

•     Extend statute of limitations of liens to twenty years;

•     Establish the state's use of Tax Equity Fiscal Responsibility Act (TEFRA) liens (liens prior to death) in accordance with 42 U.S.C. Sec. 1396p(a);

•     Establish requests for notice of transfer or encumbrance of real property assets;

•     Eliminate the homestead exemption as it relates to estate recovery activities; and

•     Revise the chapter using "plain talk" as directed by the governor's Executive Order 05-03, dated March 24, 2005.

     Statutory Authority for Adoption: Chapter 292, Laws of 2005 (SHB 2304), RCW 43.20B.30 [43.20B.030], 43.20B.80 [43.20B.080], 43.20B.750, 74.08.090, and chapter 43.20B RCW.

     Statute Being Implemented: Chapter 292, Laws of 2005 (SHB 2304), RCW 43.20B.30 [43.20B.030], 43.20B.80 [43.20B.080], 43.20B.750, chapter 43.20B RCW, and 42 U.S.C. Section 1396p(a).

     Rule is not necessitated by federal law, federal or state court decision.

     Name of Proponent: Department of social and health services, governmental.

     Name of Agency Personnel Responsible for Drafting: Wendy L. Boedigheimer, P.O. Box 45533, Olympia, WA 98504-5533, (360) 725-1306; Implementation and Enforcement: Bill Ward, P.O. Box 45862, Olympia, WA 98504-5862, (360) 664-5501.

     No small business economic impact statement has been prepared under chapter 19.85 RCW. The department has determined that the proposed rule does not create more than a minor cost for affected small businesses.

     A cost-benefit analysis is required under RCW 34.05.328. A preliminary cost-benefit analysis may be obtained by contacting Bill Ward, Department of Social and Health Services, Office of Financial Recovery, P.O. Box 45862, Olympia, WA 98504-5862, phone (360) 664-5501, e-mail wardbr@dshs.wa.gov.

January 6, 2006

Andy Fernando, Manager

Rules and Policies Assistance Unit

     Reviser's note: The material contained in this filing exceeded the page-count limitations of WAC 1-21-040 for appearance in this issue of the Register. It will appear in the 06-04 issue of the Register.