Original Notice.

Exempt from preproposal statement of inquiry under RCW 34.05.310(4).

Title of Rule: WAC 388-470-0075 How is my vehicle counted for food assistance?

Purpose: Treats licensed vehicles as inaccessible resources by excluding those with an equity value less than $1500. If a vehicle is not excluded, then we count the fair market value greater than $4650 toward the resource limit for:

(a) One vehicle for each adult household member no matter how the vehicle is used; and

(b) Any vehicle a household member under age eighteen uses to drive to work, school, training, or to look for work.

Statutory Authority for Adoption: RCW 74.08.090 and 74.04.510.

Statute Being Implemented: RCW 74.08.090 and 74.04.510.

Summary: Amending rule to exclude licensed vehicles as inaccessible resources if their equity value is less than $1500.

Reasons Supporting Proposal: Many working families formerly ineligible for benefits will now be eligible to receive food assistance and will no longer have to sacrifice nutritional needs in order to own a reliable vehicle that is helping them achieve self-sufficiency.

Name of Agency Personnel Responsible for Drafting, Implementation and Enforcement: Vicky T. Robinson, Division of Employment and Assistance Programs, (360) 413-3031.

Name of Proponent: Department of Social and Health Services, governmental.

Rule is necessary because of federal law, 7 C.F.R. 273.8.

Explanation of Rule, its Purpose, and Anticipated Effects: Excludes the value of those vehicles with an equity value less than $1500. If a vehicle is not excluded, then we count the fair market value greater than $4650 toward the resource limit for:

(a) One vehicle for each adult household member no matter how the vehicle is used; and

(b) Any vehicle a household member under age eighteen uses to drive to work, school, training, or to look for work.

Proposal Changes the Following Existing Rules: Treats those vehicles that have an equity value less than $1500 as inaccessible resources. Also changes how the department counts fair market value greater than $4650 depending on who uses the vehicle and how the vehicle is used.

No small business economic impact statement has been prepared under chapter 19.85 RCW. This rule does not impact small businesses.

RCW 34.05.328 does not apply to this rule adoption. This rule change does not meet the definition of a significant legislative rule.

Hearing Location: Blake Office Park (behind Goodyear Courtesy Tire), 4500 10th Avenue S.E., Rose Room, Lacey, WA 98503, on July 10, 2001, at 10:00 a.m.

Assistance for Persons with Disabilities: Contact Kelly Cooper, DSHS Rules Coordinator, by July 2, 2001, phone (360) 664-6094, TTY (360) 664-6178, e-mail coopeKD@dshs.wa.gov.

Submit Written Comments to: Identify WAC Numbers, Kelly Cooper, DSHS Rules Coordinator, Rules and Policies Assistance Unit, P.O. Box 45850, Olympia, WA 98504-5850, fax (360) 664-6185, by July 10, 2001.

Date of Intended Adoption: No sooner than July 11, 2001.

June 1, 2001

Brian H. Lindgren, Manager

Rules and Policies Assistance Unit

(a) Used over fifty percent of the time for income-producing purposes such as a taxi, truck, or fishing boat. ((An excluded vehicle used by)) If you are a self-employed farmer or fisher ((retains its exclusion)) and your self-employment ends, we continue to exclude your vehicle for one year from the date ((the household member ends this)) you end your self-employment.

(b) Used to produce income ((annually)) each year that is consistent with its fair market value (FMV), even if used on a seasonal basis.

(c) Necessary for long-distance travel ((that is essential to)), other than daily commuting, for the employment of a((n assistance unit)) household member whose resources are considered available to the assistance unit((. Vehicles needed for daily commuting are not excluded under this provision)) (AU), such as an ineligible alien or disqualified person.

(d) ((Necessary)) Needed for hunting or fishing to support the household.

(e) Used as the ((assistance unit's)) AU's home.

(f) Used to carry fuel for heating or water for home use when this is the primary source of fuel or water for the ((assistance unit)) AU.

(g) Needed to transport a physically disabled ((household)) AU member, no matter if the disability is permanent or temporary.

(((2) The FMV in excess of four thousand six hundred fifty dollars is counted toward the assistance unit's resource limit for the following licensed vehicles if not excluded in subsection (1) above:

(a) One per assistance unit regardless of use;

(b) Used for transportation to and from work, training, or education; or

(c) Used for seeking employment))

(h) Likely to produce an equity value (FMV less what is owed on the vehicle) of no more than one thousand five hundred dollars.

(2) If your licensed vehicle is not excluded in subsection (1) above and the FMV is:

(a) Less than four thousand six hundred fifty dollars, we exclude each vehicle less than four thousand six hundred fifty dollars no matter how it is used;

(b) Greater than four thousand six hundred fifty dollars, we count the amount in excess of four thousand six hundred fifty dollars toward the resource limit for:

(i) One vehicle for each adult household member no matter how it is used; and

(ii) Any vehicle a household member under age eighteen uses to drive to work, school, training, or to look for work.

(3) ((For all)) If you have other licensed vehicles, we count the larger value of the following ((is counted)) toward the ((assistance unit's)) AU's resource limit:

(a) FMV ((in excess of four thousand six hundred fifty dollars)) greater than four thousand six hundred fifty dollars; or

(b) Equity value (FMV less what is owed on the vehicle).

(4) ((Unlicensed vehicles driven by tribal members on the reservation are treated like a licensed vehicle)) If you are a tribal member and drive an unlicensed vehicle on those reservations that don't require vehicle licensing, your vehicle will be treated like a licensed vehicle.

(5) For all other unlicensed vehicles we count the equity value ((is counted)) towards the ((assistance unit's)) AU's resource limit unless the vehicle is:

(a) Used to produce income ((annually)) each year that is consistent with its FMV, even if used on a seasonal basis; or

(b) Work-related equipment necessary for employment or self-employment of ((an assistance unit)) a household member.

(6) When excluding vehicles due to their equity value, we do not add up the values of multiple vehicles together. Each vehicle is evaluated separately and compared to your resource limit. For vehicles evaluated using the FMV test, we add the values of multiple vehicles together and compare the result to your resource limit.

[Statutory Authority: RCW 74.08.090 and 74.04.510. 99-16-024, 388-470-0075, filed 7/26/99, effective 9/1/99. Statutory Authority: RCW 74.04.050, 74.04.055, 74.04.057 and 74.08.090. 98-16-044, 388-470-0075, filed 7/31/98, effective 9/1/98.]

Washington State Code Reviser's Office