Supplemental Notice to WSR 07-22-037.

     Preproposal statement of inquiry was filed as WSR 07-17-032.

     Title of Rule and Other Identifying Information: The department is amending WAC 388-455-0005 How lump sum payments affect benefits, 388-455-0010 How the department treats lump sum payments as a resource for cash assistance and TANF/SFA-related medical assistance, and 388-455-0015 How the department treats lump sum payments as income for cash assistance and TANF/SFA-related medical assistance. This filing is a supplemental rule filing packet to the CR-102 previously filed as WSR 07-22-037.

     Hearing Location(s): Office Building 2, Auditorium, 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 or by calling (360) 664-6094), on May 6, 2008, at 10:00 a.m.

     Date of Intended Adoption: No earlier than May 7, 2008.

     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 schilse@dshs.wa.gov, fax (360) 664-6185, on May 6, 2008, by 5:00 p.m.

     Assistance for Persons with Disabilities: Contact Jennisha Johnson, DSHS rules consultant, by April 29, 2008, TTY (360) 664-6178 or (360) 664-6094 or by e-mail at johnsjl4@dshs.wa.gov.

     Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: The current rules describe the department's policy on how a lump sum payment impacts a person's eligibility for cash, medical, and food assistance benefits.

     The proposed changes correct a reference to another department rule and revise the text to make the rules more readily understood.

     Reasons Supporting Proposal: The proposed changes are editorial in nature and do not change current policy related to lump sum payments.

     Statutory Authority for Adoption: RCW 74.04.050, 74.04.055, 74.04.057, 74.04.510, 74.08.090.

     Statute Being Implemented: RCW 74.04.050, 74.04.055, 74.04.057, 74.04.510, 74.08.090.

     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, Implementation and Enforcement: John Camp, 712 Pear Street S.E., Olympia, WA 98503, (360) 725-4616.

     No small business economic impact statement has been prepared under chapter 19.85 RCW. This proposed rule does not have an economic impact on small businesses, it only affects DSHS clients by setting eligibility rules related to how a lump sum payment impacts eligibility for cash, medical, and food assistance programs.

     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."

March 31, 2008

Stephanie E. Schiller

Rules Coordinator

     (2) For cash assistance and ((TANF/SFA-related)) family medical ((assistance)) programs, we count a lump sum payment:

     (a) ((The department counts payments)) As a resource, under WAC 388-455-0010, if it was awarded for wrongful death, personal injury, damage, or loss of property ((as resources as described in WAC 388-455-0010)).

     (b) ((We count all other lump sum payments as income as described in WAC 388-455-0015)) As income, under WAC 388-455-0015, if it was received for any other reason.

     (3) ((For food assistance, all lump sum payments are counted as resources as described in WAC 388-470-0055)) For Basic Food, we count lump sum payments for a previous period as a resource under WAC 388-470-0055. We count any amount for current or future months as income to your assistance unit.

[Statutory Authority: RCW 74.08.090 and 74.04.510. 99-24-008, § 388-455-0005, filed 11/19/99, effective 1/1/00.]

     (1) ((In the month the payment is received, the department does not count any amount of a lump sum payment)) If you receive a lump sum payment, we count it as a resource if it was awarded for:

     (a) Wrongful death;

     (b) Personal injury;

     (c) Damage; or

     (d) Loss of property.

     (2) ((In the month following the month of receipt, we count the entire amount as a resource except for the portion of the payment designated for:

     (a) Repair or replacement of damaged or lost property; or

     (b) Medical bills)) If some of your lump sum payment is designated for medical bills or to repair or replace damaged property, we do not count the designated amount as a resource for sixty days starting the month after you received the payment. After the sixty day period, we count all of the lump sum payment that remains as a resource.

     (3) ((We do not count the portion described in subsection (2) of this section for sixty days following the month the payment is received. At the end of the sixty-day period, we count any amount that remains as a resource)) For family medical programs, we do not count an increase in your resources if you are continuously eligible as described under WAC 388-470-0026 (1) and (2).

[Statutory Authority: RCW 74.08.090 and 74.04.510. 99-24-008, § 388-455-0010, filed 11/19/99, effective 1/1/00.]

     (1) ((To identify what portion of the lump sum the department will count as income, we take the following steps:

     (a) First, we subtract the value of your existing resources from the resource limit as described in WAC 388-470-0005;

     (b) Then, we subtract the difference in (1)(a) from the total amount of the lump sum; and

     (c) The amount left over is the countable amount of the lump sum)) If you receive a lump sum payment that is not awarded for wrongful death, personal injury, damage, or loss of property, we count this payment as income to your assistance unit. We budget this income according to effective date rules under WAC 388-418-0020.

     (2) For cash assistance, ((the amount of the lump sum that is countable may change if any or all of the lump sum becomes unavailable for reasons beyond your control. See WAC 388-450-0005. When the countable amount of the lump sum is:

     (a) Less than your payment standard plus additional requirements, we consider it as income in the month it is received.

     (b) More than one month's payment standard plus additional requirements but less than two months:

     (i) We consider the portion equal to one month's payment standard plus additional requirements as income in the month it is received; and

     (ii) We consider the remainder as income the following month.

     (c) Equal to or greater than the total of the payment standard plus additional requirements for the month of receipt and the following month, we consider the payment as income for those months)) if you cannot access some or all of your lump sum payment for reasons beyond your control, we will adjust the amount we count as income to your assistance unit as described under WAC 388-450-0005.

     (3) ((If you are ineligible or disqualified from receiving cash benefits and you receive a one-time lump sum payment)) To decide the amount of your lump sum we count as income, we take the following steps:

     (a) ((We allocate the payment to meet your needs as specified in WAC 388-450-0105)) First, we subtract the value of your current resources from the resource limit under WAC 388-470-0005; ((and))

     (b) ((The remainder is treated as a lump sum payment available to the eligible assistance unit members according to the rules of this section)) Then, we subtract the difference in (3)(a) from the total amount of the lump sum; and

     (c) The amount left over is what we count as income, as specified in WAC 388-450-0025 and 388-450-0030.

     (4) ((You can avoid having the lump sum budgeted against your benefits if you request termination of your cash assistance the month before you receive the lump sum)) When the countable amount of the lump sum payment is:

     (a) Less than your payment standard plus additional requirements, we count it as income in the month it is received.

     (b) More than one month's payment standard plus additional requirements but less than two months:

     (i) We count the portion equal to one month's payment standard plus additional requirements as income in the month it is received; and

     (ii) We count the remainder as income the following month.

     (c) Equal to or greater than the total of the payment standard plus additional requirements for the month of receipt and the following month, we count the payment as income for those months.

     (5) If you receive a one-time lump sum payment, and you are ineligible or disqualified from receiving cash benefits:

     (a) We allocate the payment to meet your needs as described under WAC 388-450-0105; and

     (b) Count the remainder as a lump sum payment available to eligible members of your assistance unit according to the rules of this section.

     (((5))) (6) For ((TANF/SFA-related)) family medical ((assistance)) programs:

     (a) We ((consider)) count lump sum payments as income in the month ((of receipt)) you receive the payment.

     (b) If you cannot access some or all of your lump sum payment for reasons beyond your control, will adjust the amount we count as income to your assistance unit as described under WAC 388-450-0005.

     (c) We ((consider)) count any money that remains on the first of the next month as a resource except for recipients as described in WAC 388-470-0026 (1) and (2).

[Statutory Authority: RCW 74.08.090 and 74.04.510. 99-24-008, § 388-455-0015, filed 11/19/99, effective 1/1/00.]

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