WSR 97-03-048
EMERGENCY RULES
DEPARTMENT OF
SOCIAL AND HEALTH SERVICES
(Economic Services Administration)
(Public Assistance)
[Filed January 10, 1997, 4:09 p.m.]
Date of Adoption: January 10, 1997.
Purpose: RCW 74.04.005, allows applicants/recipients of temporary assistance for needy families (TANF) to retain personal property having great sentimental value as an exempt resource.
Citation of Existing Rules Affected by this Order: Amending WAC 388-216-2500.
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 exempt personal property of great sentimental value as a resource for all families in need who meet temporary assistance for needy families (TANF) eligibility criteria. To implement resource exemption contained in state statute consistent with the inception 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Number of Sections Adopted in Order to Comply with Federal Statute: New 0, amended 0, repealed 0; Federal Rules or Standards: New 0, amended 0, repealed 0; or Recently Enacted State Statutes: New 0, amended 1, repealed 0.
Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, amended 0, repealed 0.
Number of Sections Adopted on the Agency's own Initiative: New 0, amended 1, repealed 0.
Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, amended 0, repealed 0.
Number of Sections Adopted using Negotiated Rule Making: New 0, amended 0, repealed 0; Pilot Rule Making: New 0, amended 0, repealed 0; or Other Alternative Rule Making: New 0, amended 0, repealed 0.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 388-216-2500 Resources--Exempt as a resource with no ceiling
value. (("Goodwill" means the reputation and patronage of a company.
Goodwill can generally be valued as the amount a company would sell for
over the value of its physical property, money owed it, and other
assets.))
(1) Irrespective of value, the department shall exempt the following resources:
(a) The client's home, subject to the conditions specified in sections WAC 388-216-2550 through 388-216-2590.
(b) Household furnishings and personal clothing essential for daily living. The department shall not exempt household furnishings and personal clothing in storage without evidence that these items are essential for daily living.
(c) One cemetery plot for each member of the assistance household.
(d) Personal property of "great sentimental value" when the applicant/recipient establishes the circumstances and conditions giving the personal property this value. "Sentimental value" as used in this section means personal property held primarily because of personal attachment or hobby interest, rather than for its intrinsic value.
(2) The department may declare real and personal property which will be used in a self-employment enterprise as an exempt resource:
(a) On the basis of an agreed plan; and
(b) When the department determines that the real or personal property:
(i) Is necessary to restore the client's independence; or
(ii) Will aid in rehabilitating the client or the client's dependents by providing self-employment experience which can reasonably be expected to lead to full or partial self-support.
(3) The department shall consider any increase in value to exempted stock, raw materials, or inventory as:
(a) Exempt, when the increase is necessary to the health of the enterprise; or
(b) Income, when such increase might reasonably be used towards the client's self-support.
(4) In the absence of an agreed plan, the department shall consider the business assets of a self-employment enterprise, if available and nonexempt, as available to the owner in the amount of the sale value minus encumbrances.
(5) Under an agreed plan, the department shall consider accounts receivable as:
(a) An exempt resource when:
(i) The client makes a diligent effort to collect; or
(ii) If efforts to collect are unsuccessful, the client turns the accounts over to a collection agency;
(b) A nonexempt resource when the client does not meet the requirements in (a) of this subsection; and
(c) Earned income from self-employment, when payment is received.
(6) The department shall consider goodwill as an unavailable
resource until the business is sold. Goodwill as used in this section
means the reputation and patronage of a company. Goodwill can generally
be valued as the amount a company would sell for over the value of its
physical property, money owed it, and other assets.
[Statutory Authority: RCW 74.08.090. 94-10-065 (Order 3732), 388-216-2500, filed 5/3/94, effective 6/3/94. Formerly parts of WAC 388-28-420, 388-28-435 and 388-28-439.]