S-3038

AN ACT Relating to implementing the federal personal responsibility and work opportunity reconciliation act of 1996; amending RCW 74.08.025, 74.08.340, 74.09.510, 74.09.800, 74.08.331, 28A.630.876, 74.04.050, 41.06.380, 74.12A.020, 74.13.0903, 74.25.040, 74.12.255, 74.04.0052, 13.34.160, 74.12.250, 74.12.410, 50.13.060, and 74.04.062; reenacting and amending RCW 74.04.005; adding new sections to chapter 74.12 RCW; adding new sections to chapter 74.04 RCW; adding a new section to chapter 28A.630 RCW; adding a new section to chapter 43.30 RCW; adding a new section to chapter 43.330 RCW; adding a new section to chapter 44.28 RCW; adding a new section to chapter 43.20A RCW; adding a new chapter to Title 74 RCW; creating new sections; repealing RCW 74.12.420, 74.12.425, 74.04.660, 74.25.010, 74.25.020, 74.25.030, 74.25.900, 74.25.901, 74.04.770, 74.08.120, and 74.08.125; providing an effective date; and providing for submission of this act to a vote of the people.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

TABLE OF CONTENTS

Page #

I. GENERAL PROVISIONS.......................................... 4

II. IMMIGRANT PROTECTION....................................... 8

III. WASHINGTON WORKFIRST PROGRAM............................. 14

IV. CHILD CARE................................................ 37

V. TEEN PARENTS............................................... 40

A. PERMISSIBLE LIVING SITUATIONS.............................. 40

B. GRANDPARENT LIABILITY...................................... 43

VI. ILLEGITIMACY PREVENTION AND ABSTINENCE PROMOTION.......... 45

VII. DEPARTMENT OF SOCIAL AND HEALTH SERVICES ACCOUNTABILITY.. 46

VIII. MISCELLANEOUS........................................... 48

NEW SECTION. Sec. 1. LEGISLATIVE INTENT AND FINDINGS. The legislature finds that the federal personal responsibility and work opportunity reconciliation act of 1996 presents both opportunities and challenges for the states as they develop methods of moving families in poverty from welfare to work. The legislature further finds that, although many of the goals of the federal act coincide with Washington state's vision for enabling families to achieve eventual economic self-sufficiency through private, unsubsidized employment, the treatment of legal immigrants under the federal act does not reflect Washington's commitment to those legal immigrants within Washington's borders who have played by the rules, and who live in our communities and participate in the American way of life, providing economic and cultural enrichment to Washington state's population.

The legislature finds that at least one-third of public assistance recipients have experience in the work force and sufficient training to enable them to obtain unsubsidized employment. The legislature intends to put a priority on finding jobs, which may include on-the-job training, for this group of public assistance recipients. The legislature intends that state agencies involved in welfare reform shall reorganize to accomplish this priority. The legislature intends that state agencies solicit from businesses information about job opportunities and make the information available to public assistance recipients.

The legislature intends that legal immigrants who obey the laws of Washington, and who were granted permission to immigrate by the federal government, should be treated as equitably as possible under the state's enactment and implementation of public assistance programs.

The legislature finds that Washington state's goals in implementing the federal act include promoting the American values of work, education, and responsibility, including responsible childbearing and dedication by both parents to protecting, supporting, and bringing up children to become responsible, productive Americans. This has been the goal and the dream of generations of Americans, whether native born or naturalized citizens.

The legislature finds that it is necessary, to enable people to leave welfare, to encourage a new alliance of state and local government, business, churches, nonprofit organizations, and individuals to dedicate themselves, within the letter and the spirit of the law, to helping families in poverty overcome barriers, obtain support, direction, and encouragement, and become contributors to the American way of life.

The legislature finds that, in pursuance of these goals, it is also necessary to establish policy that recognizes our moral imperative to protect children when their parents or other adults in a child's life are unable or unwilling to do so, and to continue our commitment to the elderly, frail, and vulnerable for whom work is not an option.

The legislature reaffirms its commitment to provide medical services to eligible legal immigrants under the children's health program established under RCW 74.09.405. The legislature affirms its commitment to provide the benefits of the maternity care access program under RCW 74.09.800 to documented and undocumented immigrants who qualify.

The legislature finds that family structure and relationships are critical to the long-term success and economic self-sufficiency of recipients of temporary assistance for needy families and their children. The department and its employees shall communicate clearly to recipients of temporary assistance for needy families the importance of healthy and safe marriages and family relationships.

NEW SECTION. Sec. 2. SHORT TITLE. This act may be known and cited as the Washington WorkFirst temporary assistance for needy families act.

I. GENERAL PROVISIONS

Sec. 101. RCW 74.08.025 and 1981 1st ex.s. c 6 s 9 are each amended to read as follows:

(1) Public assistance ((~~shall~~)) may be awarded to any applicant:

((~~(1)~~)) (a) Who is in need and otherwise meets the eligibility requirements of department assistance programs; and

((~~(2)~~)) (b) Who has not made a voluntary assignment of property or cash for the purpose of qualifying for an assistance grant; and

((~~(3)~~)) (c) Who is not an inmate of a public institution except as a patient in a medical institution or except as an inmate in a public institution who could qualify for federal aid assistance: PROVIDED, That the assistance paid by the department to recipients in nursing homes, or receiving nursing home care, may cover the cost of clothing and incidentals and general maintenance exclusive of medical care and health services. The department may pay a grant to cover the cost of clothing and personal incidentals in public or private medical institutions and institutions for tuberculosis. The department shall allow recipients in nursing homes to retain, in addition to the grant to cover the cost of clothing and incidentals, wages received for work as a part of a training or rehabilitative program designed to prepare the recipient for less restrictive placement to the extent permitted under Title XIX of the federal social security act.

(2) Any person otherwise qualified for temporary assistance for needy families under this title who has resided in the state of Washington for fewer than twelve consecutive months immediately preceding application for assistance is limited to the benefit level in the state in which the person resided immediately before Washington, using the eligibility rules and other definitions established under this chapter, that was obtainable on the date of application in Washington state, if the benefit level of the prior state is lower than the level provided to similarly situated applicants in Washington state. The benefit level under this subsection shall be in effect for the first twelve months a recipient is on temporary assistance for needy families in Washington state.

(3) Any person otherwise qualified for temporary assistance for needy families who is assessed through the state alcohol and substance abuse program as drug or alcohol-dependent and requiring treatment to become employable shall be required by the department to participate in a drug or alcohol treatment program as a condition of benefit receipt.

(4) In order to be eligible for temporary assistance for needy families and food stamp program benefits, any applicant with a felony conviction after August 21, 1996, involving drug use or possession, must: (a) Have been assessed as chemically dependent by a chemical dependency program approved under chapter 70.96A RCW and be participating in or have completed a coordinated rehabilitation plan consisting of chemical dependency treatment and vocational services; and (b) have not been convicted of a felony involving drug use or possession in the three years prior to the most current conviction.

Sec. 102. RCW 74.08.340 and 1959 c 26 s 74.08.340 are each amended to read as follows:

All assistance granted under this title shall be deemed to be granted and to be held subject to the provisions of any amending or repealing act that may hereafter be enacted, and no recipient shall have any claim for compensation, or otherwise, by reason of his assistance being affected in any way by such amending or repealing act. There is no legal entitlement to public assistance.

NEW SECTION. Sec. 103. TIME LIMITS. (1) A family that includes an adult who has received temporary assistance for needy families for sixty months after the effective date of this section shall be ineligible for further temporary assistance for needy families assistance.

(2) For the purposes of applying the rules of this section, the department shall count any month in which an adult family member received a temporary assistance for needy families cash assistance grant unless the assistance was provided when the family member was a minor child and not the head of the household or married to the head of the household.

(3) The department shall refer recipients who require specialized assistance to appropriate department programs, crime victims' programs through the department of community, trade, and economic development, or the crime victims' compensation program of the department of labor and industries.

(4) The department may exempt a recipient and the recipient's family from the application of subsection (1) of this section by reason of hardship or if the recipient meets the family violence options of section 402(A)(7) of Title IVA of the federal social security act as amended by P.L. 104-193. The number of recipients and their families exempted from subsection (1) of this section for a fiscal year shall not exceed twenty percent of the average monthly number of recipients and their families to which assistance is provided under the temporary assistance for needy families program.

(5) The department shall not exempt a recipient and his or her family from the application of subsection (1) of this section until after the recipient has received fifty-two months of assistance under this chapter.

NEW SECTION. Sec. 104. ELECTRONIC BENEFIT TRANSFER. By October 2002, the department shall develop and implement an electronic benefit transfer system to be used for the delivery of public assistance benefits, including without limitation, food assistance.

The department shall comply with P.L. 104-193, and shall cooperate with relevant federal agencies in the design and implementation of the electronic benefit transfer system.

NEW SECTION. Sec. 105. The following acts or parts of acts are each repealed:

(1) RCW 74.12.420 and 1994 c 299 s 9;

(2) RCW 74.12.425 and 1994 c 299 s 10; and

(3) RCW 74.04.660 and 1994 c 296 s 1, 1993 c 63 s 1, 1989 c 11 s 26, 1985 c 335 s 3, & 1981 1st ex.s. c 6 s 6.

NEW SECTION. Sec. 106. (1) The department shall allow religiously affiliated organizations to provide services to families receiving temporary assistance for needy families on the same basis as any other nongovernmental provider, without impairing the religious character of such organizations, and without diminishing the religious freedom of beneficiaries of assistance funded under chapter 74.12 RCW.

(2) The department shall adopt rules implementing this section, and the applicable sections of P.L. 104-193 related to services provided by charitable, religious, or private organizations.

NEW SECTION. Sec. 107. A new section is added to chapter 74.12 RCW to read as follows:

The department shall (1) provide eligible Indian tribes ongoing, meaningful opportunities to participate in the development, oversight, and operation of the state temporary assistance for needy families program; (2) certify annually that it is providing equitable access to the state temporary assistance for needy families program to Indian people whose tribe is not administering a tribal temporary assistance for needy families program; (3) coordinate and cooperate with eligible Indian tribes that elect to operate a tribal temporary assistance for needy families program as provided for in P.L. 104-193; (4) upon approval by the secretary of the federal department of health and human services of a tribal temporary assistance for needy families program, transfer a fair and equitable amount of the state maintenance of effort funds to the eligible Indian tribe; and (5) establish rules related to the operation of this section and section 108 of this act, covering, at a minimum, appropriate uses of state maintenance of effort funds and annual reports on program operations. The legislature shall specify the amount of state maintenance of effort funds to be transferred in the biennial appropriations act.

NEW SECTION. Sec. 108. A new section is added to chapter 74.12 RCW to read as follows:

An eligible Indian tribe exercising its authority under P.L. 104‑193 to operate a tribal temporary assistance for needy families program shall operate the program on a state fiscal year basis. If a tribe decides to cancel a tribal temporary assistance for needy families program, it shall notify the department no later than ninety days prior to the start of the state fiscal year.

NEW SECTION. Sec. 109. A new section is added to chapter 74.12 RCW to read as follows:

WRITTEN MATERIAL. All forms, letters, and documents sent to recipients of assistance shall be easy to read and comprehend. The department shall ensure that all forms, letters, and documents covered by this section shall be written at an eighth grade comprehension level.

NEW SECTION. Sec. 110. A new section is added to chapter 74.12 RCW to read as follows:

FOOD STAMP WORK REQUIREMENTS. Single adults without dependents between eighteen and fifty years of age shall comply with federal food stamp work requirements as a condition of eligibility.

II. IMMIGRANT PROTECTION

Sec. 201. RCW 74.09.510 and 1991 sp.s. c 8 s 8 are each amended to read as follows:

Medical assistance may be provided in accordance with eligibility requirements established by the department ((~~of social and health services~~)), as defined in the social security Title XIX state plan for mandatory categorically needy persons and: (1) Individuals who would be eligible for cash assistance except for their institutional status; (2) individuals who are under twenty-one years of age, who would be eligible for ((~~aid to families with dependent children~~)) temporary assistance for needy families, but do not qualify as dependent children and who are in (a) foster care, (b) subsidized adoption, (c) a nursing facility or an intermediate care facility for the mentally retarded, or (d) inpatient psychiatric facilities; (3) the aged, blind, and disabled who: (a) Receive only a state supplement, or (b) would not be eligible for cash assistance if they were not institutionalized; (4) categorically eligible individuals who ((~~would be eligible for but choose not to receive cash assistance~~)) meet the income and resource requirements of the cash assistance programs; (5) individuals who are enrolled in managed health care systems, who have otherwise lost eligibility for medical assistance, but who have not completed a current six-month enrollment in a managed health care system, and who are eligible for federal financial participation under Title XIX of the social security act; (6) children and pregnant women allowed by federal statute for whom funding is appropriated; ((~~and~~)) (7) other individuals eligible for medical services under RCW 74.09.035 and 74.09.700 for whom federal financial participation is available under Title XIX of the social security act; and (8) persons allowed by section 1931 of the social security act for whom funding is appropriated.

NEW SECTION. Sec. 202. IMMIGRANTS‑-ELIGIBILITY. It is the intent of the legislature that all legal immigrants who resided in the United States before August 21, 1996, retain eligibility for assistance programs the same as or similar to those from which they lost benefits as a result of P.L. 104-193. The legislature also intends that sponsors' incomes continue to be deemed for these individuals in the same manner it was addressed prior to August 22, 1996.

Accordingly, the state shall exercise its option under P.L. 104-193 to continue services to legal immigrants under temporary assistance for needy families, medicaid, and social services block grant programs. Legal immigrants who lose benefits under the supplemental security income program as a result of P.L. 104-193 are immediately eligible to apply for benefits under the state's general assistance-unemployable program. The department shall redetermine income and resource eligibility at least annually, in accordance with existing state policy. It is the policy of the legislature to distinguish between legal immigrants living in the United States prior to August 22, 1996, and those who immigrated on or after the enactment of P.L. 104-193. The postenactment legal immigrants are subject to a five-year benefit exclusion for means-tested public assistance programs and are subject to the sponsor-deeming provisions of section 206 of this act, which shall be strictly construed in favor of benefit denial.

NEW SECTION. Sec. 203. INCOME AVERAGING‑-BENEFIT DETERMINATION. In the case of applicants for temporary assistance for needy families whose principal source of earned income is seasonal employment, the department shall determine eligibility and benefit levels by retrospectively considering the applicant's earned income for the twelve-month period immediately preceding the application for assistance. The earned income shall be prorated on an annual basis, and the prorated amount used for eligibility and benefit determination in the prospective month. Assistance shall be denied until the applicant's prorated prior twelve months of income equals a monthly amount at or below the eligibility level. The intent of the legislature is to ensure that persons with seasonal earned income that, if prorated on an annual basis, would have exceeded the level qualifying them for assistance will be denied assistance until such time as they qualify on a prorated basis.

NEW SECTION. Sec. 204. NATURALIZATION FACILITATION. The department shall make an affirmative effort to identify and proactively contact legal immigrants receiving public assistance to facilitate their applications for naturalization. The department shall obtain a complete list of legal immigrants in Washington who are receiving correspondence regarding their eligibility from the social security administration. The department shall inform immigrants regarding how citizenship may be attained. In order to facilitate the citizenship process, the department shall coordinate and contract, to the extent necessary, with existing public and private resources and shall, within available funds, ensure that those immigrants who qualify to apply for naturalization are referred to or otherwise offered classes. The department shall assist eligible immigrants in obtaining appropriate test exemptions, and other exemptions in the naturalization process, to the extent permitted under federal law. The department shall report annually by December 15th to the legislature regarding the progress and barriers of the immigrant naturalization facilitation effort. It is the intent of the legislature that persons receiving naturalization assistance be facilitated in obtaining citizenship within two years of their eligibility to apply.

NEW SECTION. Sec. 205. SPONSOR DEEMING. (1) Except as provided in subsection (5) of this section, qualified aliens and aliens permanently residing under color of law who are recipients of public assistance under this title as of August 22, 1996, shall have their eligibility for assistance redetermined.

(2) Qualified aliens who enter the United States of America after August 22, 1996, are ineligible to receive public assistance under this title for a period of five years, except as provided in subsection (6) of this section. Following their period of ineligibility, their eligibility for public assistance shall be determined as provided for in this section.

(3) In determining the eligibility and the amount of benefits of a qualified alien or an alien permanently residing under color of law for public assistance under this title, the income and resources of the alien shall be deemed to include the income and resources of any person and his or her spouse who executed an affidavit of support pursuant to section 213A of the federal immigration and naturalization act on behalf of the alien. The deeming provisions of this subsection shall be waived if the sponsor dies or is permanently incapacitated during the period the affidavit of support is valid.

(4) As used in this section, "qualified alien" has the meaning provided it in P.L. 104-183.

(5)(a) Qualified aliens specified under sections 403, 412, and 552 (e) and (f), subtitle B, Title IV, of P.L. 104-193 and in P.L. 104-208, are exempt from this section.

(b) Qualified aliens who served in the armed forces of an allied country, or were employed by an agency of the federal government, during a military conflict between the United States of America and a military adversary are exempt from the provisions of this section.

(c) Qualified aliens who are victims of domestic violence and petition for legal status under the federal violence against women act are exempt from the provisions of this section.

(6) Subsection (2) of this section does not apply to the following state benefits:

(a) Assistance described in P.L. 104-193 sections 403(c)(H) through (K), 411(b)(1), 421(b), and P.L. 104-208;

(b) Short-term, noncash, in-kind emergency disaster relief;

(d) Programs comparable to assistance or benefits under the federal child nutrition act of 1966;

(e) Public health assistance for immunizations with respect to immunizable diseases and for testing and treatment of symptoms of communicable diseases whether or not the symptoms are caused by a communicable disease;

(f) Payments for foster care and adoption assistance;

(g) Programs, services, or assistance where eligibility is not determined by employees of the department of social and health services;

(h) Programs, services, or assistance such as meals from a soup kitchen, crisis counseling and intervention, and short-term shelter, specified by the attorney general, after consultation with appropriate agencies and departments, that:

(i) Deliver in-kind services at the community level, including through public or private nonprofit agencies;

(ii) Do not condition the provision of assistance, the amount of assistance provided, or the cost of assistance provided on the individual recipient's income or resources; and

(iii) Are necessary for the protection of life or safety.

(7) Otherwise qualified legal immigrants arriving after the enactment of P.L. 104-193, and subject to the five-year federal means-tested benefit exclusion, shall, after the five-year exclusion, be eligible for medical assistance in cases where their sponsors have died.

NEW SECTION. Sec. 206. A new section is added to chapter 74.04 RCW to read as follows:

FOOD ASSISTANCE. (1) The department may establish a food assistance program for persons whose immigrant status meets the eligibility requirements of the federal food stamp program as of August 21, 1996, but who are no longer eligible solely due to their immigrant status under P.L. 104-193.

(2) The rules for the state food assistance program shall follow exactly the rules of the federal food stamp program except for the provisions pertaining to immigrant status under P.L. 104-193.

(3) The benefit under the state food assistance program shall be established by the legislature in the biennial operating budget.

(4) The department may enter into a contract with the United States department of agriculture to use the existing federal food stamp program coupon system for the purposes of administering the state food assistance program.

(5) In the event the department is unable to enter into a contract with the United States department of agriculture, the department may issue vouchers to eligible households for the purchase of eligible foods at participating retailers.

Sec. 207. RCW 74.09.800 and 1993 c 407 s 10 are each amended to read as follows:

The department shall, consistent with the state budget act, develop a maternity care access program designed to ensure healthy birth outcomes as follows:

(1) Provide maternity care services to low-income pregnant women and health care services to children in poverty to the maximum extent allowable under the medical assistance program, Title XIX of the federal social security act;

(2) Provide maternity care services to low-income women who are not eligible to receive such services under the medical assistance program, Title XIX of the federal social security act;

(3) By January 1, 1990, have the following procedures in place to improve access to maternity care services and eligibility determinations for pregnant women applying for maternity care services under the medical assistance program, Title XIX of the federal social security act:

(a) Use of a shortened and simplified application form;

(b) Outstationing department staff to make eligibility determinations;

(d) Conducting an interview for the purpose of determining medical assistance eligibility within five working days of the date of an application by a pregnant woman and making an eligibility determination within fifteen working days of the date of application by a pregnant woman;

(4) Establish a maternity care case management system that shall assist at-risk eligible persons with obtaining medical assistance benefits and receiving maternity care services, including transportation and child care services;

(5) Within available resources, establish appropriate reimbursement levels for maternity care providers;

(6) Implement a broad-based public education program that stresses the importance of obtaining maternity care early during pregnancy;

(7) Refer persons eligible for maternity care services under the program established by this section to persons, agencies, or organizations with maternity care service practices that primarily emphasize healthy birth outcomes;

(8) Provide family planning services including information about the synthetic progestin capsule implant form of contraception, for twelve months immediately following a pregnancy to women who were eligible for medical assistance under the maternity care access program during that pregnancy or who were eligible only for emergency labor and delivery services during that pregnancy; and

(9) Within available resources, provide family planning services to women who meet the financial eligibility requirements for services under subsections (1) and (2) of this section.

The legislature reaffirms its commitment to provide health care services under this section to eligible immigrants, regardless of documented or undocumented status.

III. WASHINGTON WORKFIRST PROGRAM

NEW SECTION. Sec. 301. It is the intent of the legislature that all applicants to the Washington WorkFirst program shall be focused on obtaining paid, unsubsidized employment. The focus of the Washington WorkFirst program shall be work for all recipients.

NEW SECTION. Sec. 302. DIVERSION ASSISTANCE. (1) In order to prevent some families from developing dependency on temporary assistance for needy families, the department shall make available to qualifying applicants a diversion program designed to provide brief, emergency assistance for families in crisis whose income and assets would otherwise qualify them for temporary assistance for needy families.

(2) Diversion assistance may include cash or vouchers in payment for the following needs:

(a) Child care;

(b) Housing assistance;

(d) Food;

(e) Medical costs for the recipient's immediate family;

(f) Employment-related expenses which are necessary to keep or obtain paid unsubsidized employment.

(3) Diversion assistance is available once in each twelve-month period for each adult applicant. Recipients of diversion assistance are not included in the temporary assistance for needy families program.

(4) Diversion assistance may not exceed one thousand five hundred dollars for each instance.

(5) To be eligible for diversion assistance, a family must otherwise be eligible for temporary assistance for needy families.

(6) Families ineligible for temporary assistance for needy families or general assistance due to sanction, noncompliance, the lump sum income rule, or any other reason are not eligible for diversion assistance.

(7) Families must provide evidence showing that a bona fide need exists according to subsection (2) of this section in order to be eligible for diversion assistance.

An adult applicant may receive diversion assistance of any type no more than once per twelve-month period. If the recipient of diversion assistance is placed on the temporary assistance for needy families program within twelve months of receiving diversion assistance, the prorated dollar value of the assistance shall be treated as a loan from the state, and recovered by deduction from the recipient's cash grant.

Sec. 303. RCW 74.08.331 and 1992 c 7 s 59 are each amended to read as follows:

Any person who by means of a willfully false statement, or representation, or impersonation, or a willful failure to reveal any material fact, condition or circumstance affecting eligibility ((~~of [or]~~)) or need for assistance, including medical care, surplus commodities and food stamps, as required by law, or a willful failure to promptly notify the county office in writing as required by law or any change in status in respect to resources, or income, or need, or family composition, money contribution and other support, from whatever source derived, including unemployment insurance, or any other change in circumstances affecting the person's eligibility or need for assistance, or other fraudulent device, obtains, or attempts to obtain, or aids or abets any person to obtain any public assistance to which the person is not entitled or greater public assistance than that to which he or she is justly entitled shall be guilty of grand larceny and upon conviction thereof shall be punished by imprisonment in a state correctional facility for not more than fifteen years.

Any person who by means of a willfully false statement or representation or by impersonation or other fraudulent device aids or abets in buying, selling, or in any other way disposing of the real property of a recipient of public assistance without the consent of the secretary shall be guilty of a gross misdemeanor and upon conviction thereof shall be punished by imprisonment for not more than one year in the county jail or a fine of not to exceed one thousand dollars or by both.

NEW SECTION. Sec. 304. A new section is added to chapter 28A.630 RCW to read as follows:

SCHOOL-TO-WORK TRANSITIONS. (1) The legislature finds that students who do not prepare for postsecondary education, training, and employment are more likely to become dependent on state assistance programs than those who do make such preparation and that long-term employment and earning outcomes for youth can be significantly improved through school-to-work transition efforts, particularly through work-based learning experiences. The legislature intends that every effort be made to involve all youth in preparation for postsecondary education, training, and employment, including out-of-school youth.

(2) Washington is engaged in developing school-to-work transitions for all youth, which involves preparation for postsecondary education, training, and employment and requires outreach to out-of-school youth. All school-to-work transition projects in the state, therefore, whether funded by state or federal funds, shall contain an outreach component directed toward school-age youth not currently enrolled in school and demonstrate the involvement of all in-school youth in preparation for postsecondary education or training or employment. At the time a school-to-work grant is made, the superintendent of public instruction shall withhold twenty percent of the grant award and release the funds upon a showing that the project has satisfactorily included outreach to out-of-school youth and progress in involving students not traditionally engaged in preparation for postsecondary education, training, or employment.

(3) The office of the superintendent of public instruction shall provide technical assistance to ensure that school districts establish and operate outreach efforts under this section, and to include out-of-school youth in school-to-work efforts within available funds.

Sec. 305. RCW 28A.630.876 and 1993 c 335 s 8 are each amended to read as follows:

(1) The superintendent of public instruction shall report to the education committees of the legislature and committees of the legislature handling economic development and social welfare issues on the progress of the schools for the school-to-work transitions program by December 15 of each odd-numbered year.

(2) Each school district selected to participate in the ((~~academic and vocational integration development~~)) school-to-work transitions program shall submit an annual report to the superintendent of public instruction on the progress of the project as a condition of receipt of continued funding.

NEW SECTION. Sec. 306. A new section is added to chapter 43.30 RCW to read as follows:

JOBS FOR THE ENVIRONMENT PROGRAMS. In any jobs for the environment program designed to train and employ displaced natural resource workers and operated by the department of natural resources, recipients of temporary assistance for needy families from natural resource areas who are engaged in work search activities are eligible for training and employment on the same basis as displaced natural resource workers within available funds.

NEW SECTION. Sec. 307. INDIVIDUAL DEVELOPMENT ACCOUNTS. The department shall carry out a program to fund individual development accounts established by recipients eligible for assistance under the temporary assistance for needy families program.

(1) An individual development account may be established by or on behalf of a recipient eligible for assistance provided under the temporary assistance for needy families program operated under this title for the purpose of enabling the recipient to accumulate funds for a qualified purpose described in subsection (2) of this section.

(2) A qualified purpose as described in this subsection is one or more of the following, as provided by the qualified entity providing assistance to the individual:

(a) Postsecondary expenses paid from an individual development account directly to an eligible educational institution;

(b) Qualified acquisition costs with respect to a qualified principal residence for a qualified first-time home buyer, if paid from an individual development account directly to the persons to whom the amounts are due;

(c) Amounts paid from an individual development account directly to a business capitalization account which is established in a federally insured financial institution and is restricted to use solely for qualified business capitalization expenses.

(3) A recipient may only contribute to an individual development account such amounts as are derived from earned income, as defined in section 911(d)(2) of the internal revenue code of 1986.

(4) The department shall establish rules to ensure funds held in an individual development account are only withdrawn for a qualified purpose as provided in this section.

(5) An individual development account established under this section shall be a trust created or organized in the United States and funded through periodic contributions by the establishing recipient and matched by or through a qualified entity for a qualified purpose as provided in this section.

(6) For the purpose of determining eligibility for any assistance provided under this title, all funds in an individual development account under this section shall be disregarded for such purpose with respect to any period during which such individual maintains or makes contributions into such an account.

(7) The department shall adopt rules authorizing the use of organizations using microcredit and microenterprise approaches to assisting low-income families to become financially self-sufficient.

(8) The department shall adopt rules implementing the use of individual development accounts by recipients of temporary assistance for needy families.

(9) For the purposes of this section, "eligible educational institution," "postsecondary educational expenses," "qualified acquisition costs," "qualified business," "qualified business capitalization expenses," "qualified expenditures," "qualified first‑time home buyer," "date of acquisition," "qualified plan," and "qualified principal residence" include the meanings provided for them in P.L. 104‑193.

NEW SECTION. Sec. 308. EARNINGS DISREGARDS AND EARNED INCOME CUTOFFS. (1) In addition to their monthly benefit payment, a family may earn and keep one-half of its earnings during every month it is eligible to receive assistance under this section.

(2) In no event may a family be eligible for temporary assistance for needy families if its monthly gross earned income exceeds the maximum earned income level as set by the department. In calculating a household's gross earnings, the department shall disregard the earnings of a minor child who is:

(a) A full-time student; or

(b) A part-time student carrying at least half the normal school load and working fewer than thirty-five hours per week.

Sec. 309. RCW 74.04.005 and 1992 c 165 s 1 and 1992 c 136 s 1 are each reenacted and amended to read as follows:

For the purposes of this title, unless the context indicates otherwise, the following definitions shall apply:

(1) "Public assistance" or "assistance"CPublic aid to persons in need thereof for any cause, including services, medical care, assistance grants, disbursing orders, work relief, general assistance and federal-aid assistance.

(2) "Department"CThe department of social and health services.

(3) "County or local office"CThe administrative office for one or more counties or designated service areas.

(4) "Director" or "secretary" means the secretary of social and health services.

(5) "Federal-aid assistance"CThe specific categories of assistance for which provision is made in any federal law existing or hereafter passed by which payments are made from the federal government to the state in aid or in respect to payment by the state for public assistance rendered to any category of needy persons for which provision for federal funds or aid may from time to time be made, or a federally administered needs-based program.

(6)(a) "General assistance"CAid to persons in need who:

(i) Are not eligible to receive federal-aid assistance, other than food stamps and medical assistance; however, an individual who refuses or fails to cooperate in obtaining federal-aid assistance, without good cause, is not eligible for general assistance;

(ii) Meet one of the following conditions:

(A) Pregnant: PROVIDED, That need is based on the current income and resource requirements of the federal ((~~aid to families with dependent children~~)) temporary assistance for needy families program((: PROVIDED FURTHER, That during any period in which an aid for dependent children employable program is not in operation, only those pregnant women who are categorically eligible for medicaid are eligible for general assistance)); or

(B) Subject to chapter 165, Laws of 1992, incapacitated from gainful employment by reason of bodily or mental infirmity that will likely continue for a minimum of ninety days as determined by the department.

(C) Persons who are unemployable due to alcohol or drug addiction are not eligible for general assistance. Persons receiving general assistance on July 26, 1987, or becoming eligible for such assistance thereafter, due to an alcohol or drug-related incapacity, shall be referred to appropriate assessment, treatment, shelter, or supplemental security income referral services as authorized under chapter 74.50 RCW. Referrals shall be made at the time of application or at the time of eligibility review. Alcoholic and drug addicted clients who are receiving general assistance on July 26, 1987, may remain on general assistance if they otherwise retain their eligibility until they are assessed for services under chapter 74.50 RCW. Subsection (6)(a)(ii)(B) of this section shall not be construed to prohibit the department from granting general assistance benefits to alcoholics and drug addicts who are incapacitated due to other physical or mental conditions that meet the eligibility criteria for the general assistance program;

(iii) Are citizens or aliens lawfully admitted for permanent residence or otherwise residing in the United States under color of law; and

(iv) Have furnished the department their social security account number. If the social security account number cannot be furnished because it has not been issued or is not known, an application for a number shall be made prior to authorization of assistance, and the social security number shall be provided to the department upon receipt.

(b) Notwithstanding the provisions of subsection (6)(a)(i), (ii), and (c) of this section, general assistance shall be provided to the following recipients of federal-aid assistance:

(i) Recipients of supplemental security income whose need, as defined in this section, is not met by such supplemental security income grant because of separation from a spouse; or

(ii) To the extent authorized by the legislature in the biennial appropriations act, to recipients of ((~~aid to families with dependent children~~)) temporary assistance for needy families whose needs are not being met because of a temporary reduction in monthly income below the entitled benefit payment level caused by loss or reduction of wages or unemployment compensation benefits or some other unforeseen circumstances. The amount of general assistance authorized shall not exceed the difference between the entitled benefit payment level and the amount of income actually received.

(c) General assistance shall be provided only to persons who are not members of assistance units receiving federal aid assistance, except as provided in subsection (6)(a)(ii)(A) and (b) of this section, and will accept available services which can reasonably be expected to enable the person to work or reduce the need for assistance unless there is good cause to refuse. Failure to accept such services shall result in termination until the person agrees to cooperate in accepting such services and subject to the following maximum periods of ineligibility after reapplication:

(i) First failure: One week;

(ii) Second failure within six months: One month;

(iii) Third and subsequent failure within one year: Two months.

(d) Persons found eligible for general assistance based on incapacity from gainful employment may, if otherwise eligible, receive general assistance pending application for federal supplemental security income benefits. Any general assistance that is subsequently duplicated by the person's receipt of supplemental security income for the same period shall be considered a debt due the state and shall by operation of law be subject to recovery through all available legal remedies.

(e) The department shall adopt by rule medical criteria for general assistance eligibility to ensure that eligibility decisions are consistent with statutory requirements and are based on clear, objective medical information.

(f) The process implementing the medical criteria shall involve consideration of opinions of the treating or consulting physicians or health care professionals regarding incapacity, and any eligibility decision which rejects uncontroverted medical opinion must set forth clear and convincing reasons for doing so.

(g) Recipients of general assistance based upon a finding of incapacity from gainful employment who remain otherwise eligible shall not have their benefits terminated absent a clear showing of material improvement in their medical or mental condition or specific error in the prior determination that found the recipient eligible by reason of incapacitation. Recipients of general assistance based upon pregnancy who relinquish their child for adoption, remain otherwise eligible, and are not eligible to receive benefits under the federal ((~~aid to families with dependent children~~)) temporary assistance for needy families program shall not have their benefits terminated until the end of the month in which the period of six weeks following the birth of the recipient's child falls. Recipients of the federal ((~~aid to families with dependent children~~)) temporary assistance for needy families program who lose their eligibility solely because of the birth and relinquishment of the qualifying child may receive general assistance through the end of the month in which the period of six weeks following the birth of the child falls.

(7) "Applicant"CAny person who has made a request, or on behalf of whom a request has been made, to any county or local office for assistance.

(8) "Recipient"CAny person receiving assistance and in addition those dependents whose needs are included in the recipient's assistance.

(9) "Standards of assistance"CThe level of income required by an applicant or recipient to maintain a level of living specified by the department.

(10) "Resource"CAny asset, tangible or intangible, owned by or available to the applicant at the time of application, which can be applied toward meeting the applicant's need, either directly or by conversion into money or its equivalent: PROVIDED, That an applicant may retain the following described resources and not be ineligible for public assistance because of such resources.

(a) A home, which is defined as real property owned and used by an applicant or recipient as a place of residence, together with a reasonable amount of property surrounding and contiguous thereto, which is used by and useful to the applicant. Whenever a recipient shall cease to use such property for residential purposes, either for himself or his dependents, the property shall be considered as a resource which can be made available to meet need, and if the recipient or his dependents absent themselves from the home for a period of ninety consecutive days such absence, unless due to hospitalization or health reasons or a natural disaster, shall raise a rebuttable presumption of abandonment: PROVIDED, That if in the opinion of three physicians the recipient will be unable to return to the home during his lifetime, and the home is not occupied by a spouse or dependent children or disabled sons or daughters, such property shall be considered as a resource which can be made available to meet need.

(b) Household furnishings and personal effects and other personal property having great sentimental value to the applicant or recipient, as limited by the department consistent with limitations on resources and exemptions for federal aid assistance.

(c) A motor vehicle, other than a motor home, used and useful having an equity value not to exceed ((~~one~~)) five thousand ((~~five hundred~~)) dollars.

(d) A motor vehicle necessary to transport a physically disabled household member. This exclusion is limited to one vehicle per physically disabled person.

(e) All other resources, including any excess of values exempted, not to exceed one thousand dollars or other limit as set by the department, to be consistent with limitations on resources and exemptions necessary for federal aid assistance. The department shall also allow recipients of temporary assistance for needy families to exempt savings accounts with combined balances of up to an additional three thousand dollars.

((~~(e)~~)) (f) Applicants for or recipients of general assistance shall have their eligibility based on resource limitations consistent with the ((~~aid to families with dependent children~~)) temporary assistance for needy families program rules adopted by the department.

((~~(f)~~)) (g) If an applicant for or recipient of public assistance possesses property and belongings in excess of the ceiling value, such value shall be used in determining the need of the applicant or recipient, except that: (i) The department may exempt resources or income when the income and resources are determined necessary to the applicant's or recipient's restoration to independence, to decrease the need for public assistance, or to aid in rehabilitating the applicant or recipient or a dependent of the applicant or recipient; and (ii) the department may provide grant assistance for a period not to exceed nine months from the date the agreement is signed pursuant to this section to persons who are otherwise ineligible because of excess real property owned by such persons when they are making a good faith effort to dispose of that property: PROVIDED, That:

(A) The applicant or recipient signs an agreement to repay the lesser of the amount of aid received or the net proceeds of such sale;

(B) If the owner of the excess property ceases to make good faith efforts to sell the property, the entire amount of assistance may become an overpayment and a debt due the state and may be recovered pursuant to RCW 43.20B.630;

(C) Applicants and recipients are advised of their right to a fair hearing and afforded the opportunity to challenge a decision that good faith efforts to sell have ceased, prior to assessment of an overpayment under this section; and

(D) At the time assistance is authorized, the department files a lien without a sum certain on the specific property.

(11) "Income"C(a) All appreciable gains in real or personal property (cash or kind) or other assets, which are received by or become available for use and enjoyment by an applicant or recipient during the month of application or after applying for or receiving public assistance. The department may by rule and regulation exempt income received by an applicant for or recipient of public assistance which can be used by him to decrease his need for public assistance or to aid in rehabilitating him or his dependents, but such exemption shall not, unless otherwise provided in this title, exceed the exemptions of resources granted under this chapter to an applicant for public assistance. In determining the amount of assistance to which an applicant or recipient of ((~~aid to families with dependent children~~)) temporary assistance for needy families is entitled, the department is hereby authorized to disregard as a resource or income the earned income exemptions consistent with federal requirements. The department may permit the above exemption of earnings of a child to be retained by such child to cover the cost of special future identifiable needs even though the total exceeds the exemptions or resources granted to applicants and recipients of public assistance, but consistent with federal requirements. In formulating rules and regulations pursuant to this chapter, the department shall define income and resources and the availability thereof, consistent with federal requirements. All resources and income not specifically exempted, and any income or other economic benefit derived from the use of, or appreciation in value of, exempt resources, shall be considered in determining the need of an applicant or recipient of public assistance.

(b) If, under applicable federal requirements, the state has the option of considering property in the form of lump sum compensatory awards or related settlements received by an applicant or recipient as income or as a resource, the department shall consider such property to be a resource.

(12) "Need"CThe difference between the applicant's or recipient's standards of assistance for himself and the dependent members of his family, as measured by the standards of the department, and value of all nonexempt resources and nonexempt income received by or available to the applicant or recipient and the dependent members of his family.

(13) For purposes of determining eligibility for public assistance and participation levels in the cost of medical care, the department shall exempt restitution payments made to people of Japanese and Aleut ancestry pursuant to the Civil Liberties Act of 1988 and the Aleutian and Pribilof Island Restitution Act passed by congress, P.L. 100‑383, including all income and resources derived therefrom.

(14) In the construction of words and phrases used in this title, the singular number shall include the plural, the masculine gender shall include both the feminine and neuter genders and the present tense shall include the past and future tenses, unless the context thereof shall clearly indicate to the contrary.

NEW SECTION. Sec. 310. NONCUSTODIAL PARENTS IN WORK PROGRAMS. The department may provide Washington WorkFirst activities or make cross-referrals to existing programs to qualifying noncustodial parents of children receiving temporary assistance for needy families who are unable to meet their child support obligations. Services authorized under this section shall be provided within available funds.

NEW SECTION. Sec. 311. DEFINITIONS. Unless the context clearly requires otherwise, as used in this chapter, "work activity" means:

(1) Unsubsidized paid employment in the private or public sector;

(2) Subsidized paid employment in the private or public sector;

(3) Work experience, including work associated with the refurbishing of publicly assisted housing, if sufficient paid employment is not available;

(4) On-the-job training;

(5) Job search and job readiness assistance;

(6) Community service programs;

(7) Vocational educational training, not to exceed twelve months with respect to any individual;

(8) Job skills training directly related to employment;

(9) Education directly related to employment, in the case of a recipient who has not received a high school diploma or a GED;

(10) Satisfactory attendance at secondary school or in a course of study leading to a GED, in the case of a recipient who has not completed secondary school or received such a certificate;

(11) The provision of child care services to an individual who is participating in a community service program; and

(12) Services required by the recipient under RCW 74.08.025(3) and 74.--.---(3) (section 103(3) of this act) to become employable.

NEW SECTION. Sec. 312. JOB SEARCH OR WORK ACTIVITY. (1) There is established in the department the Washington WorkFirst program. The department shall administer the program consistent with the temporary assistance for needy families provisions of P.L. 104-193. In operating the WorkFirst program the department shall meet the minimum work participation rates specified in federal law, and shall require recipients of assistance to engage in job search and work activities as an ongoing condition of eligibility.

(2) Upon application to the temporary assistance for needy families program, each recipient shall be placed in the job search component. For recipients who have been approved for assistance before the effective date of this section, the job search component shall be completed no later than one hundred eighty days after the effective date of this section.

(3) The Washington WorkFirst program shall include a job search component in which each nonexempt recipient of temporary assistance for needy families shall participate. The job search component may not last more than four weeks for each recipient. Each recipient shall be required to attend job search component activities at least thirty-six hours per week. Failure to participate in the job search component shall result in sanctions under section 313 of this act. The job search component shall serve as the assessment tool to comply with federal law. If a recipient fails to find paid employment during the job search component, the department may refer the recipient to those work activities that are directly related to improving the recipient's employability.

(4) As used in this section, "job search component" means an activity in which nonexempt recipients engage each weekday upon entering the Washington WorkFirst program. The component shall provide at least three hours per weekday of classroom instruction on how to secure a job and at least three hours per weekday of individual job search activities.

NEW SECTION. Sec. 313. PLACEMENT INTO WORK ACTIVITY. Recipients who have not obtained paid, unsubsidized employment by the end of the job search component authorized in section 312 of this act shall be referred to a work activity.

(1) Each recipient shall be assessed immediately upon completion of the job search component. Assessments shall be based upon factors that are critical to obtaining employment, including but not limited to education, employment strengths, and employment history. Assessments may be performed by the department or by a contracted entity. The assessment shall be based on a uniform, consistent, transferable format that will be accepted by all agencies and organizations serving the recipient. Based on the assessment, an individual responsibility plan shall be prepared that: (a) Sets forth an employment goal and a plan for moving the recipient immediately into employment; (b) contains the obligation of the recipient to become and remain employed; (c) moves the recipient into whatever employment the recipient is capable of handling as quickly as possible; and (d) describes the services available to the recipient to enable the recipient to obtain and keep employment.

(2) Recipients who are not engaged in work and work activities, and do not qualify for a good cause exemption under section 314 of this act, shall engage in self‑directed service as provided in section 326 of this act.

(3) If a recipient refuses to engage in work and work activities required by the department, the family's grant shall be reduced by the recipient's share, and may, if the department determines it appropriate, be terminated.

(4) The department may waive the penalties required under subsection (3) of this section, subject to a finding that the recipient refused to engage in work for good cause provided in section 314 of this act.

(5) In implementing this section, the department shall assign the highest priority to the most employable clients, including adults in two-parent families and parents in single-parent families that include older preschool or school age children to be engaged in work activities.

(6) In consultation with the recipient, the department or contractor shall place the recipient into a work activity that is available in the local area where the recipient resides.

NEW SECTION. Sec. 314. GOOD CAUSE. Good cause reasons for failure to participate in WorkFirst program components include: (1) Situations where the recipient is a parent or other relative personally providing care for a child under the age of six years, and formal or informal child care, or day care for an incapacitated individual living in the same home as a dependent child, is necessary for an individual to participate or continue participation in the program or accept employment, and such care is not available, and the department fails to provide such care; or (2) until June 30, 1999, if the recipient is a parent with a child under the age of one year. A parent may only receive this exemption for a total of twelve months, which may be consecutive or nonconsecutive; or (3) after June 30, 1999, if the recipient is a parent with a child under three months of age.

NEW SECTION. Sec. 315. WORKFIRST--GOALS--CONTRACTS--SERVICE AREAS--PLANS. (1) The legislature finds that moving those eligible for assistance to self-sustaining employment is a goal of the WorkFirst program. It is the intent of WorkFirst to aid a participant's progress to self-sufficiency by allowing flexibility within the state-wide program to reflect community resources, the local characteristics of the labor market, and the composition of the caseload. Program success will be enhanced through effective coordination at regional and local levels, involving employers, labor representatives, educators, community leaders, local governments, and social service providers.

(2) The department, through its regional offices, shall collaborate with employers, recipients, frontline workers, educational institutions, labor, private industry councils, the work force training and education coordinating board, community rehabilitation employment programs, employment and training agencies, local governments, the employment security department, and community action agencies to develop work programs that are effective and work in their communities. For planning purposes, the department shall collect and make accessible to regional offices successful work program models from around the United States, including the employment partnership program, apprenticeship programs, microcredit, microenterprise, self‑employment, and W‑2 Wisconsin works. Work programs shall incorporate local volunteer citizens in their planning and implementation phases to ensure community relevance and success.

(3) To reduce administrative costs and to ensure equal state-wide access to services, the department shall develop contracts for state-wide welfare-to-work services. These state-wide contracts shall support regional flexibility and ensure that resources follow local labor market opportunities and recipients' needs.

(4) The secretary shall establish WorkFirst service areas for purposes of planning WorkFirst programs and for distributing WorkFirst resources. Service areas shall reflect department regions.

(5) By July 31st of each odd-numbered year, a plan for the WorkFirst program shall be developed for each region. The plan shall be prepared in consultation with local and regional sources, adapting the state-wide WorkFirst program to achieve maximum effect for the participants and the communities within which they reside. Local consultation shall include to the greatest extent possible input from local and regional planning bodies for social services and work force development. The regional and local administrator shall consult with employers of various sizes, labor representatives, training and education providers, program participants, economic development organizations, community organizations, tribes, and local governments in the preparation of the service area plan.

(6) The secretary has final authority in plan approval or modification. Regional program implementation may deviate from the state-wide program if specified in a service area plan, as approved by the secretary.

NEW SECTION. Sec. 316. WORK PROGRAM CONTRACTS. (1) It is the intent of the legislature that the department is authorized to engage in competitive contracting using performance-based contracts to provide all work activities authorized in chapter . . ., Laws of 1997 (this act), including the job search component authorized in section 312 of this act.

(2) The department shall use competitive performance-based contracting to select which vendors will participate in the WorkFirst program. Performance-based contracts shall be awarded based on factors that include but are not limited to the criteria listed in section 702 of this act, past performance of the contractor, demonstrated ability to perform the contract effectively, financial strength of the contractor, and merits of the proposal for services submitted by the contractor. Contracts shall be made without regard to whether the contractor is a public or private entity.

(3) The department shall contract for an evaluation of the competitive contracting practices and outcomes to be performed by an independent entity with expertise in government privatization and competitive strategies. The evaluation shall include quarterly progress reports to the fiscal committees of the legislature and to the governor, starting at the first quarter after the effective date of the first competitive contract and ending two years after the effective date of the first competitive contract.

(4) The department shall seek independent assistance in developing contracting strategies to implement this section. Assistance may include but is not limited to development of contract language, design of requests for proposal, developing full cost information on government services, evaluation of bids, and providing for equal competition between private and public entities.

NEW SECTION. Sec. 317. PLACEMENT BONUSES. In the case of service providers that are not public agencies, initial placement bonuses of no greater than five hundred dollars may be provided by the department for service entities responsible for placing recipients in an unsubsidized job for a minimum of twelve weeks, and the following additional bonuses shall also be provided:

(1) A percent of the initial bonus if the job pays double the minimum wage;

(2) A percent of the initial bonus if the job provides health care;

(3) A percent of the initial bonus if the job includes employer-provided child care needed by the recipient; and

(4) A percent of the initial bonus if the recipient is continuously employed for two years.

NEW SECTION. Sec. 318. No collective bargaining agreement may be entered into, extended, or renewed after the effective date of this section that prevents or restricts the authority of the department of social and health services to exercise the powers granted under sections 312 through 317 of this act and RCW 74.04.050.

Sec. 319. RCW 74.04.050 and 1981 1st ex.s. c 6 s 3 are each amended to read as follows:

(1) The department shall serve as the single state agency to administer public assistance. The department is hereby empowered and authorized to cooperate in the administration of such federal laws, consistent with the public assistance laws of this state, as may be necessary to qualify for federal funds for:

((~~(1)~~)) (a) Medical assistance;

((~~(2) Aid to dependent children~~)) (b) Temporary assistance for needy families;

((~~(3)~~)) (c) Child welfare services; and

((~~(4)~~)) (d) Any other programs of public assistance for which provision for federal grants or funds may from time to time be made.

(2) The state hereby accepts and assents to all the present provisions of the federal law under which federal grants or funds, goods, commodities and services are extended to the state for the support of programs administered by the department, and to such additional legislation as may subsequently be enacted as is not inconsistent with the purposes of this title, authorizing public welfare and assistance activities. The provisions of this title shall be so administered as to conform with federal requirements with respect to eligibility for the receipt of federal grants or funds.

The department shall periodically make application for federal grants or funds and submit such plans, reports and data, as are required by any act of congress as a condition precedent to the receipt of federal funds for such assistance. The department shall make and enforce such rules and regulations as shall be necessary to insure compliance with the terms and conditions of such federal grants or funds.

(3) The department may contract with public and private entities for administrative services for the following programs and functions: (a) Temporary assistance for needy families; (b) general assistance; (c) refugee services; (d) facilitation of eligibility for federal supplemental security income benefits; (e) medical assistance eligibility; and (f) food stamps.

Sec. 320. RCW 41.06.380 and 1979 ex.s. c 46 s 2 are each amended to read as follows:

(1) Nothing contained in this chapter shall prohibit any department, as defined in RCW 41.06.020, from purchasing services by contract with individuals or business entities if such services were regularly purchased by valid contract by such department prior to April 23, 1979: PROVIDED, That no such contract may be executed or renewed if it would have the effect of terminating classified employees or classified employee positions existing at the time of the execution or renewal of the contract.

(2) Nothing in this chapter shall be construed to prohibit the department of social and health services from carrying out the provisions of sections 312 through 318 of this act and RCW 74.04.050.

NEW SECTION. Sec. 321. FUNDING RESTRICTIONS. The department of social and health services shall operate the Washington WorkFirst program authorized under sections 301, 302, 307, 308, 310 through 318, 323 through 326, and 401 through 403 of this act, RCW 74.13.0903 and 74.25.040, and chapter 74.12 RCW within the following constraints:

(1) The full amount of the temporary assistance for needy families block grant, plus qualifying state expenditures as appropriated in the biennial operating budget, shall be appropriated to the department each year in the biennial appropriations act to carry out the provisions of the program authorized in sections 301, 302, 307, 308, 310 through 318, 323 through 326, and 401 through 403 of this act, RCW 74.13.0903 and 74.25.040, and chapter 74.12 RCW.

(2) The department may expend funds defined in subsection (1) of this section in any manner that will effectively accomplish the outcome measures defined in section 702 of this act. No more than fifteen percent of the amount provided in subsection (1) of this section may be spent for administrative purposes. For the purpose of this subsection, "administrative purposes" does not include expenditures for information technology and computerization needed for tracking and monitoring required by P.L. 104-193. The department shall not increase grant levels to recipients of the program authorized in sections 301, 302, 307, 308, 310 through 318, and 323 through 326 of this act and chapter 74.12 RCW.

(3) The department shall implement strategies that accomplish the outcome measures identified in section 702 of this act that are within the funding constraints in this section. Specifically, the department shall implement strategies that will cause the number of cases in the program authorized in sections 301, 302, 307, 308, 310 through 318, and 323 through 326 of this act and chapter 74.12 RCW to decrease by at least fifteen percent during the 1997-99 biennium and by at least five percent in the subsequent biennium. The department may transfer appropriation authority between funding categories within the economic services program in order to carry out the requirements of this subsection.

(4) The department shall monitor expenditures against the appropriation levels provided for in subsection (1) of this section. The department shall quarterly make a determination as to whether expenditure levels will exceed available funding. If the determination indicates that expenditures will exceed funding at the end of the fiscal year, the department shall take the following action as appropriate:

(a) If expenditures will exceed funding provided in subsection (1) of this section by less than ten percent of available funding, the department shall identify and implement changes in process and administration or through streamlining that will cause expenditures to equal or be less than available funding provided in subsection (1) of this section, except that the department may not make changes in the child care services authorized in section 402 of this act;

(b) If expenditures will exceed funding provided in subsection (1) of this section by equal to or more than ten percent of available funding, the department shall reduce recipient grants in the program authorized in sections 301, 302, 307, 308, 310 through 318, and 323 through 326 of this act and chapter 74.12 RCW by an amount sufficient to cause expenditures to equal or be less than funding provided in subsection (1) of this section.

NEW SECTION. Sec. 322. The following acts or parts of acts are each repealed:

(1) RCW 74.25.010 and 1994 c 299 s 6 & 1991 c 126 s 5;

(2) RCW 74.25.020 and 1993 c 312 s 7, 1992 c 165 s 3, & 1991 c 126 s 6;

(3) RCW 74.25.030 and 1991 c 126 s 7;

(4) RCW 74.25.900 and 1991 c 126 s 8;

(5) RCW 74.25.901 and 1991 c 126 s 9; and

(6) RCW 74.04.770 and 1983 1st ex.s. c 41 s 38 & 1981 2nd ex.s. c 10 s 4.

NEW SECTION. Sec. 323. A new section is added to chapter 43.330 RCW to read as follows:

ENTREPRENEURIAL ASSISTANCE‑-DEPARTMENT OF COMMUNITY, TRADE, AND ECONOMIC DEVELOPMENT. (1) The department shall ensure that none of its rules or practices act to exclude recipients of temporary assistance for needy families from any small business loan opportunities or entrepreneurial assistance it makes available through its community development block grant program or otherwise provides using state or federal resources. The department shall encourage local administrators of microlending programs using public funds to conduct outreach activities to encourage recipients of temporary assistance for needy families to explore self-employment as an option. The department shall compile information on private and public sources of entrepreneurial assistance and loans for start-up businesses and provide the department of social and health services with the information for dissemination to recipients of temporary assistance for needy families.

(2) The department shall, as part of its industrial recruitment efforts, work with the work force training and education coordinating board to identify the skill sets needed by companies locating in the state. The department shall provide the department of social and health services with the information about the companies' needs in order that recipients of public assistance and service providers assisting such recipients through training and placement programs may be informed and respond accordingly. The department shall work with the state board for community and technical colleges, the job skills program, the employment security department, and other employment and training programs to facilitate the inclusion of recipients of temporary assistance for needy families in relevant training that would make them good employees for recruited firms.

(3) The department shall perform the duties under this section within available funds.

NEW SECTION. Sec. 324. JOB ASSISTANCE‑-DEPARTMENT OF SOCIAL AND HEALTH SERVICES. The department shall:

(1) Notify recipients of temporary assistance for needy families that self-employment is one method of leaving state assistance. The department shall provide its regional offices, recipients of temporary assistance for needy families, and any contractors providing job search, training, or placement services notification of programs available in the state for entrepreneurial training, technical assistance, and loans available for start-up businesses;

(2) Provide recipients of temporary assistance for needy families and service providers assisting such recipients through training and placement programs with information it receives about the skills and training required by firms locating in the state;

(3) Encourage recipients of temporary assistance for needy families that are in need of basic skills to seek out programs that integrate basic skills training with occupational training and workplace experience.

NEW SECTION. Sec. 325. WAGE SUBSIDY PROGRAM. The department shall establish a wage subsidy program for recipients of temporary assistance for needy families. The department shall give preference in job placements to private sector employers that have agreed to participate in the wage subsidy program. The department shall identify characteristics of employers who can meet the employment goals stated in section 702 of this act. The department shall use these characteristics in identifying which employers may participate in the program. The department shall adopt rules for the participation of recipients of temporary assistance for needy families in the wage subsidy program. Participants in the program established under this section may not be employed if: (1) The employer has terminated the employment of any current employee or otherwise caused an involuntary reduction of its work force in order to fill the vacancy so created with the participant; or (2) the participant displaces or partially displaces current employees. Employers providing positions created under this section shall meet the requirements of chapter 49.46 RCW. This section shall not diminish or result in the infringement of obligations or rights under chapters 41.06, 41.56, and 49.36 RCW and the national labor relations act, 29 U.S.C. Ch. 7. The department shall establish such local and state‑wide advisory boards, including business and labor representatives, as it deems appropriate to assist in the implementation of the wage subsidy program. Once the recipient is hired, the wage subsidy shall be authorized for up to nine months.

NEW SECTION. Sec. 326. COMMUNITY SERVICE PROGRAM. The department shall establish the community service program to provide the experience of work for recipients of public assistance. The program is intended to promote a strong work ethic for participating public assistance recipients. Under this program, public assistance recipients are required to volunteer to work for charitable nonprofit organizations and public agencies, or engage in another activity designed to benefit the recipient, the recipient's family, or the recipient's community, as determined by the department on a case-by-case basis. Participants in a community service or work experience program established by this chapter are deemed employees for the purpose of chapter 49.17 RCW. The cost of premiums under Title 51 RCW shall be paid for by the department for participants in a community service or work experience program. Participants in a community service or work experience program may not be placed if: (1) An employer has terminated the employment of any current employee or otherwise caused an involuntary reduction of its work force in order to fill the vacancy so created with the participant; or (2) the participant displaces or partially displaces current employees.

Sec. 327. RCW 74.12A.020 and 1993 c 312 s 8 are each amended to read as follows:

The department ((~~may~~)) shall provide grants to community action agencies or other local nonprofit organizations to provide job opportunities and basic skills training program participants with transitional support services, one-to-one assistance, case management, and job retention services.

NEW SECTION. Sec. 328. A new section is added to chapter 74.12 RCW to read as follows:

A grant provided under the temporary assistance for needy families program shall be provided on a pro rata basis to the extent the recipient complies with mandated work and work activity requirements.

NEW SECTION. Sec. 329. A new section is added to chapter 74.12 RCW to read as follows:

In determining eligibility for the temporary assistance for needy families program of an assistance unit under this title, if a household member is excluded from an assistance unit based on residency, alienage, or citizenship of the household member, the department shall allocate the full amount of the household's income to the assistance unit without deducting an amount for the support of the household member.

IV. CHILD CARE

NEW SECTION. Sec. 401. The legislature finds that informed choice is consistent with individual responsibility and that parents should be given a range of options for available child care while participating in the program.

NEW SECTION. Sec. 402. CHILD CARE. (1) Within available funds, the department shall administer a single, integrated child care program which may serve families with incomes up to one hundred seventy-five percent of the federal poverty level.

(2) All families participating in the child care program shall have equal access to the child care of their choice. However, the child care providers must comply with applicable licensing rules if they are required by law to comply with those rules.

(3) The minimum copayment per family shall be at least ten dollars per month. Child care shall be provided on a sliding scale but may not be provided for any family whose income equals or exceeds one hundred seventy-five percent of the federal poverty level adjusted for family size on an annual income basis. For families with income between seventy-four and one hundred percent of the federal poverty level adjusted for family size, the monthly child care copayment shall be thirty percent of earned income in excess of seventy-four percent of federal poverty level adjusted for family size. For families with income at or above one hundred percent of the federal poverty level adjusted for family size, the copay shall be a minimum of one hundred dollars per month. For families with income between one hundred one and one hundred thirty percent of the federal poverty level adjusted for family size, the monthly copay shall be twenty-nine percent of earned income in excess of seventy-four percent of the federal poverty level adjusted for family size. For families with income between one hundred thirty-one and one hundred seventy-five percent of the federal poverty level adjusted for family size, the copay shall be fifty percent of earned income above one hundred percent of the federal poverty level adjusted for family size.

(4) All compensable child care services authorized in this section shall be paid for through vouchers. Vouchers shall be provided to recipients and may only be used to purchase child care through the program created in this section.

NEW SECTION. Sec. 403. (1) The legislature finds that to comply with P.L. 104-193 section 407(e)(2), Washington is obligated to provide appropriate and affordable child care for recipients of temporary assistance for needy families. To comply with this federal requirement and to avoid possible fiscal sanctions, the legislature intends to determine what constitutes affordable, accessible child care in Washington.

(2) The Washington institute for public policy shall conduct a study of reasonable, affordable child care subsidy rates that are realistic for low-income working families. The institute for public policy shall review child care subsidy rates in use in other jurisdictions and shall model the economic impact of child care subsidy rates on low-income families. The institute for public policy shall report its findings and recommendations to the legislature no later than December 15, 1997.

Sec. 404. RCW 74.13.0903 and 1993 c 453 s 2 are each amended to read as follows:

The office of child care policy is established to operate under the authority of the department of social and health services. The duties and responsibilities of the office include, but are not limited to, the following, within appropriated funds:

(1) Staff and assist the child care coordinating committee in the implementation of its duties under RCW 74.13.090;

(2) Work in conjunction with the state-wide child care resource and referral network as well as local governments, nonprofit organizations, businesses, and community child care advocates to create local child care resource and referral organizations. These organizations may carry out needs assessments, resource development, provider training, technical assistance, and parent information and training;

(3) Actively seek public and private money for distribution as grants to the state-wide child care resource and referral network and to existing or potential local child care resource and referral organizations;

(4) Adopt rules regarding the application for and distribution of grants to local child care resource and referral organizations. The rules shall, at a minimum, require an applicant to submit a plan for achieving the following objectives:

(a) Provide parents with information about child care resources, including location of services and subsidies;

(b) Carry out child care provider recruitment and training programs, including training under RCW 74.25.040;

(d) Provide information for businesses regarding child care supply and demand;

(e) Advocate for increased public and private sector resources devoted to child care; ((~~and~~))

(f) Provide technical assistance to employers regarding employee child care services; and

(g) Serve recipients of temporary assistance for needy families and working parents with incomes at or below household incomes of one hundred seventy-five percent of the federal poverty line;

(5) Provide staff support and technical assistance to the state-wide child care resource and referral network and local child care resource and referral organizations;

(6) Maintain a state-wide child care licensing data bank and work with department of social and health services licensors to provide information to local child care resource and referral organizations about licensed child care providers in the state;

(7) Through the state-wide child care resource and referral network and local resource and referral organizations, compile data about local child care needs and availability for future planning and development;

(8) Coordinate with the state-wide child care resource and referral network and local child care resource and referral organizations for the provision of training and technical assistance to child care providers; and

(9) Collect and assemble information regarding the availability of insurance and of federal and other child care funding to assist state and local agencies, businesses, and other child care providers in offering child care services.

Sec. 405. RCW 74.25.040 and 1994 c 299 s 8 are each amended to read as follows:

(1) Recipients of ((~~aid to families with dependent children~~)) temporary assistance for needy families who are ((~~not~~)) employed or participating in ((~~an education or work training program~~)) a work activity under section 312 of this act may volunteer ((to)) or work in a licensed child care facility((~~, or other willing volunteer work site~~)). Licensed child care facilities participating in this effort shall provide care for the recipient's children and provide for the development of positive child care skills.

(2) The department shall train two hundred fifty recipients of temporary assistance for needy families to become family child care providers or child care center teachers. The department shall offer the training in rural and urban communities. The department shall adopt rules to implement the child care training program in this section.

(3) Recipients trained under this section shall provide child care services to clients of the department for two years following the completion of their child care training.

V. TEEN PARENTS

A. PERMISSIBLE LIVING SITUATIONS

Sec. 501. RCW 74.12.255 and 1994 c 299 s 33 are each amended to read as follows:

(1) The department shall determine, after consideration of all relevant factors and in consultation with the applicant, the most appropriate living situation for applicants under eighteen years of age, unmarried, and either pregnant or having a dependent child or children in the applicant's care. An appropriate living situation((s)) shall include a place of residence that is maintained by the applicant's parents, parent, legal guardian, or other adult relative as their or his or her own home((~~, or other~~)) and that the department finds would provide an appropriate supportive living arrangement ((~~supervised by an adult where feasible and consistent with federal regulations under 45 C.F.R. chapter II, section 233.107~~)). It also includes a living situation maintained by an agency that is licensed under chapter 74.15 RCW that the department finds would provide an appropriate supportive living arrangement. Grant assistance shall not be provided under this chapter if the applicant does not reside in the most appropriate living situation, as determined by the department.

(2) ((~~An applicant under eighteen years of age who is either pregnant or has a dependent child and is not living in a situation described in subsection (1) of this section shall be~~)) An unmarried minor parent or pregnant minor applicant residing in the most appropriate living situation, as provided under subsection (1) of this section, is presumed to be unable to manage adequately the funds paid to the minor or on behalf of the dependent child or children and, unless the ((~~teenage custodial parent demonstrates otherwise~~)) minor provides sufficient evidence to rebut the presumption, shall be subject to the protective payee requirements provided for under RCW 74.12.250 and 74.08.280.

(3) The department shall consider any statements or opinions by either parent of the ((~~teen recipient~~)) unmarried minor parent or pregnant minor applicant as to an appropriate living situation for the ((~~teen~~)) minor and his or her children, whether in the parental home or other situation. If the parents or a parent of the ((~~teen head of household applicant for assistance~~)) minor request, they or he or she shall be entitled to a hearing in juvenile court regarding ((~~the fitness and suitability of their home as the top priority choice~~)) designation of the parental home or other relative placement as the most appropriate living situation for the pregnant or parenting ((~~teen applicant for assistance~~)) minor.

The department shall provide the parents ((~~shall have~~)) or parent with the opportunity to make a showing((~~, based on the preponderance of the evidence,~~)) that the parental home, or home of the other relative placement, is the most appropriate living situation. It shall be presumed in any administrative or judicial proceeding conducted under this subsection that the parental home or other relative placement requested by the parents or parent is the most appropriate living situation. This presumption is rebuttable.

(4) In cases in which the ((~~head of household is under eighteen years of age,~~)) minor is unmarried((,)) and unemployed, ((~~and requests information on adoption,~~)) the department shall, as part of the determination of the appropriate living situation, make an affirmative effort to provide current and positive information about adoption including referral to community-based organizations for counseling and provide information about the manner in which adoption works, its benefits for unmarried, unemployed minor parents and their children, and the meaning and availability of open adoption.

(5) For the purposes of this section, "most appropriate living situation" shall not include a living situation including an adult male who fathered the qualifying child and is found to meet the elements of rape of a child as set forth in RCW 9A.44.079.

Sec. 502. RCW 74.04.0052 and 1994 c 299 s 34 are each amended to read as follows:

(1) The department shall determine, after consideration of all relevant factors and in consultation with the applicant, the most appropriate living situation for applicants under eighteen years of age, unmarried, and pregnant who are eligible for general assistance as defined in RCW 74.04.005(6)(a)(ii)(A). An appropriate living situation((s)) shall include a place of residence that is maintained by the applicant's parents, parent, legal guardian, or other adult relative as their or his or her own home((~~, or other~~)) and that the department finds would provide an appropriate supportive living arrangement ((~~supervised by an adult where feasible and consistent with federal regulations under 45 C.F.R. chapter II, section 233.107~~)). It also includes a living situation maintained by an agency that is licensed under chapter 74.15 RCW that the department finds would provide an appropriate supportive living arrangement. Grant assistance shall not be provided under this chapter if the applicant does not reside in the most appropriate living situation, as determined by the department.

(2) ((~~An applicant under eighteen years of age who is pregnant and is not living in a situation described in subsection (1) of this section shall be~~)) A pregnant minor residing in the most appropriate living situation, as provided under subsection (1) of this section, is presumed to be unable to manage adequately the funds paid to the minor or on behalf of the dependent child or children and, unless the ((~~teenage custodial parent demonstrates otherwise~~)) minor provides sufficient evidence to rebut the presumption, shall be subject to the protective payee requirements provided for under RCW 74.12.250 and 74.08.280.

(3) The department shall consider any statements or opinions by either parent of the ((~~teen recipient~~)) unmarried minor parent or pregnant minor applicant as to an appropriate living situation for the ((~~teen~~)) minor, whether in the parental home or other situation. If the parents or a parent of the ((~~teen head of household applicant for assistance~~)) minor request, they or he or she shall be entitled to a hearing in juvenile court regarding ((~~the fitness and suitability of their home as the top priority choice~~)) designation of the parental home or other relative placement as the most appropriate living situation for the pregnant or parenting ((~~teen applicant for assistance~~)) minor.

NEW SECTION. Sec. 503. TEEN PARENT REQUIREMENTS. All applicants under the age of eighteen years who are approved for assistance and, within one hundred eighty days after the date of federal certification of the Washington temporary assistance for needy families program, all unmarried minor parents or pregnant minor applicants shall, as a condition of receiving benefits, actively progress toward the completion of a high school diploma or a GED.

B. GRANDPARENT LIABILITY

NEW SECTION. Sec. 504. UNMARRIED MINOR PARENT--ELIGIBILITY. The unmarried minor parent and the minor's child shall be considered to be part of the household of the minor's parents or parent for purposes of determining eligibility for temporary assistance for needy families and general assistance for pregnant women as defined in RCW 74.04.005(6)(a)(ii)(A); and as such, the income and resources of the entire household are considered to be available to support the unmarried minor and his or her child.

Sec. 505. RCW 13.34.160 and 1993 c 358 s 2 are each amended to read as follows:

(1) In an action brought under this chapter, the court may inquire into the ability of the parent or parents of the child to pay child support and may enter an order of child support as set forth in chapter 26.19 RCW. The court may enforce the same by execution, or in any way in which a court of equity may enforce its decrees. All child support orders entered pursuant to this chapter shall be in compliance with the provisions of RCW 26.23.050.

(2) For purposes of this section, if a dependent child's parent is an unmarried minor parent or pregnant minor applicant, then the parent or parents of the minor shall also be deemed a parent or parents of the dependent child. However, liability for child support under this subsection only exists if the parent or parents of the unmarried minor parent or pregnant minor applicant are provided the opportunity for a hearing on their ability to provide support. Any child support order requiring such a parent or parents to provide support for the minor parent's child may be effective only until the minor parent reaches eighteen years of age.

Sec. 506. RCW 74.12.250 and 1963 c 228 s 21 are each amended to read as follows:

If the department, after investigation, finds that any applicant for assistance under this chapter or any recipient of funds under ((~~an aid to families with dependent children grant~~)) this chapter would not use, or is not utilizing, the grant adequately for the needs of ((~~the~~)) his or her child or children or would dissipate the grant or is ((~~otherwise~~)) dissipating such grant, or would be or is unable to manage adequately the funds paid on behalf of said child and that to provide or continue ((~~said~~)) payments to ((~~him~~)) the applicant or recipient would be contrary to the welfare of the child, the department may make such payments to another individual who is interested in or concerned with the welfare of such child and relative: PROVIDED, That the department shall provide such counseling and other services as are available and necessary to develop greater ability on the part of the relative to manage funds in such manner as to protect the welfare of the family. Periodic review of each case shall be made by the department to determine if said relative is able to resume management of the assistance grant. If after a reasonable period of time the payments to the relative cannot be resumed, the department may request the attorney general to file a petition in the superior court for the appointment of a guardian for the child or children. Such petition shall set forth the facts warranting such appointment. Notice of the hearing on such petition shall be served upon the recipient and the department not less than ten days before the date set for such hearing. Such petition may be filed with the clerk of superior court and all process issued and served without payment of costs. If upon the hearing of such petition the court is satisfied that it is for the best interest of the child or children, and all parties concerned, that a guardian be appointed, he shall order the appointment, and may require the guardian to render to the court a detailed itemized account of expenditures of such assistance payments at such time as the court may deem advisable.

It is the intention of this section that the guardianship herein provided for shall be a special and limited guardianship solely for the purpose of safeguarding the assistance grants made to dependent children. Such guardianship shall terminate upon the termination of such assistance grant, or sooner on order of the court, upon good cause shown.

VI. ILLEGITIMACY PREVENTION AND ABSTINENCE PROMOTION

Sec. 601. RCW 74.12.410 and 1994 c 299 s 3 are each amended to read as follows:

(1) At time of application or reassessment under this chapter the department shall offer or contract for family planning information and assistance, including alternatives to abortion, and any other available locally based teen pregnancy prevention programs, to prospective and current recipients of aid to families with dependent children.

(2) The department shall work in cooperation with the superintendent of public instruction to reduce the rate of illegitimate births and abortions in Washington state.

(3) The department of health shall maximize federal funding by timely application for federal funds available under P.L. 104-193 and Title V of the federal social security act, 42 U.S.C. 701 et seq., as amended, for the establishment of qualifying abstinence education and motivation programs. The department of health shall contract, by competitive bid, with entities qualified to provide abstinence education and motivation programs in the state.

(4) The department of health shall seek and accept local matching funds to the maximum extent allowable from qualified abstinence education and motivation programs.

(5)(a) For purposes of this section, "qualifying abstinence education and motivation programs" are those bidders with experience in the conduct of the types of abstinence education and motivation programs set forth in Title V of the federal social security act, 42 U.S.C. Sec. 701 et seq., as amended.

(b) The application for federal funds, contracting for abstinence education and motivation programs and performance of contracts under this section are subject to review and oversight by a joint committee of the legislature, composed of four legislative members, appointed by each of the two caucuses in each house.

VII. DEPARTMENT OF SOCIAL AND HEALTH SERVICES ACCOUNTABILITY

NEW SECTION. Sec. 701. It is the intent of the legislature that the Washington WorkFirst program focus on work and on personal responsibility for recipients. The program shall be evaluated among other evaluations, through a limited number of outcome measures designed to hold each community service office and economic services region accountable for program success.

NEW SECTION. Sec. 702. OUTCOME MEASURES. (1) The WorkFirst program shall develop outcome measures for use in evaluating the WorkFirst program authorized in chapter . . ., Laws of 1997 (this act), which may include but are not limited to:

(a) Caseload reduction;

(b) Recidivism to caseload after two years;

(d) Earnings;

(e) Reduction in average grant through increased recipient earnings; and

(f) Placement of recipients into private sector, unsubsidized jobs.

(2) The department shall require that contractors for WorkFirst services collect outcome measure information and report outcome measures to the department regularly. The department shall develop benchmarks that compare outcome measure information from all contractors to provide a clear indication of the most effective contractors. Benchmark information shall be published quarterly and provided to the legislature, the governor, and all contractors for WorkFirst services.

NEW SECTION. Sec. 703. EVALUATION. Every WorkFirst office, region, contract, employee, and contractor shall be evaluated using the criteria in section 702 of this act. The department shall award contracts to the highest performing entities according to the criteria in section 702 of this act. The department may provide for bonuses to offices, regions, and employees with the best outcomes according to measures in section 702 of this act.

NEW SECTION. Sec. 704. OUTCOME MEASURES‑-REPORT. The department shall provide a report to the appropriate committees of the legislature on achievement of the outcome measures by region and contract on an annual basis, no later than January 15th of each year, beginning in 1999. The report shall include how the department is using the outcome measure information obtained under section 702 of this act to manage the WorkFirst program.

NEW SECTION. Sec. 705. A new section is added to chapter 44.28 RCW to read as follows:

WORKFIRST PROGRAM STUDY. (1) The joint legislative audit and review committee shall conduct an evaluation of the effectiveness of the WorkFirst program described in chapter . . ., Laws of 1997 (this act), including the job opportunities and basic skills training program and any approved private, county, or local government WorkFirst program. The evaluation shall assess the success of the program in assisting clients to become employed and to reduce their use of temporary assistance for needy families. The study shall include but not be limited to the following:

(a) An assessment of employment outcomes, including hourly wages, hours worked, and total earnings, for clients;

(b) A comparison of temporary assistance for needy families outcomes, including grant amounts and program exits, for clients; and

(c) An audit of the performance-based contract for each private nonprofit contractor for job opportunities and basic skills training program services. The joint legislative audit and review committee may contract with the Washington institute for public policy for appropriate portions of the evaluation required by this section.

(2) Administrative data shall be provided by the department of social and health services, the employment security department, the state board for community and technical colleges, local governments, and private contractors. The department of social and health services shall require contractors to provide administrative and outcome data needed for this study as a condition of contract compliance.

NEW SECTION. Sec. 706. PATERNITY ESTABLISHMENT. In order to be eligible for temporary assistance for needy families, applicants shall, at the time of application for assistance, provide the names of both parents of their child or children, whether born or unborn.

VIII. MISCELLANEOUS

NEW SECTION. Sec. 801. The legislature finds that, according to the department of health's monitoring system, sixty percent of births to women on medicaid were identified as unintended by the women themselves. The director of the office of financial management shall establish an interagency task force on unintended pregnancy in order to:

(1) Review existing research on the short and long-range costs;

(2) Analyze the impact on the temporary assistance for needy families program; and

(3) Develop and implement a state strategy to reduce unintended pregnancy.

NEW SECTION. Sec. 802. The following acts or parts of acts are each repealed:

(1) RCW 74.08.120 and 1992 c 108 s 2, 1987 c 75 s 39, 1981 1st ex.s. c 6 s 15, 1981 c 8 s 12, 1979 c 141 s 326, 1969 ex.s. c 259 s 1, 1969 ex.s. c 159 s 1, 1965 ex.s. c 102 s 1, & 1959 c 26 s 74.08.120; and

(2) RCW 74.08.125 and 1993 c 22 s 1 & 1992 c 108 s 3.

NEW SECTION. Sec. 803. A new section is added to chapter 74.04 RCW to read as follows:

For the purpose of evaluating the effect of the defense of equitable estoppel on the recovery of overpayments and the administration of justice in public assistance cases, the department shall report the following to the appropriate committees of the legislature by December 1, 1997:

(1) The number of applicants and recipients of public assistance who have raised the defense of equitable estoppel in an administrative proceeding related to the collection of overpayments or the determination of eligibility;

(2) The number of recipients or applicants of public assistance who prevailed in an administrative proceeding related to the collection of overpayments or the determination of eligibility due to the defense of equitable estoppel;

(3) The amount, average amount, and percent of payments and overpayments not collected due to the successful assertion of the defense of equitable estoppel at an administrative proceeding related to the collection of overpayments or the determination of eligibility;

(4) Any other information regarding the assertion of the defense of equitable estoppel in administrative proceedings that the department feels will assist in evaluation of the defense.

Sec. 804. RCW 50.13.060 and 1996 c 79 s 1 are each amended to read as follows:

(1) Governmental agencies, including law enforcement agencies, prosecuting agencies, and the executive branch, whether state, local, or federal shall have access to information or records deemed private and confidential under this chapter if the information or records are needed by the agency for official purposes and:

(a) The agency submits an application in writing to the employment security department for the records or information containing a statement of the official purposes for which the information or records are needed and specific identification of the records or information sought from the department; and

(b) The director, commissioner, chief executive, or other official of the agency has verified the need for the specific information in writing either on the application or on a separate document; and

(c) The agency requesting access has served a copy of the application for records or information on the individual or employing unit whose records or information are sought and has provided the department with proof of service. Service shall be made in a manner which conforms to the civil rules for superior court. The requesting agency shall include with the copy of the application a statement to the effect that the individual or employing unit may contact the public records officer of the employment security department to state any objections to the release of the records or information. The employment security department shall not act upon the application of the requesting agency until at least five days after service on the concerned individual or employing unit. The employment security department shall consider any objections raised by the concerned individual or employing unit in deciding whether the requesting agency needs the information or records for official purposes.

(2) The requirements of subsections (1) and ((~~(8)~~)) (9) of this section shall not apply to the state legislative branch. The state legislature shall have access to information or records deemed private and confidential under this chapter, if the legislature or a legislative committee finds that the information or records are necessary and for official purposes. If the employment security department does not make information or records available as provided in this subsection, the legislature may exercise its authority granted by chapter 44.16 RCW.

(3) In cases of emergency the governmental agency requesting access shall not be required to formally comply with the provisions of subsection (1) of this section at the time of the request if the procedures required by subsection (1) of this section are complied with by the requesting agency following the receipt of any records or information deemed private and confidential under this chapter. An emergency is defined as a situation in which irreparable harm or damage could occur if records or information are not released immediately.

(4) The requirements of subsection (1)(c) of this section shall not apply to governmental agencies where the procedures would frustrate the investigation of possible violations of criminal laws.

(5) Governmental agencies shall have access to certain records or information, limited to such items as names, addresses, social security numbers, and general information about benefit entitlement or employer information possessed by the department, for comparison purposes with records or information possessed by the requesting agency to detect improper or fraudulent claims, or to determine potential tax liability or employer compliance with registration and licensing requirements. In those cases the governmental agency shall not be required to comply with subsection (1)(c) of this section, but the requirements of the remainder of subsection (1) must be satisfied.

(6) Governmental agencies may have access to certain records and information, limited to employer information possessed by the department for purposes authorized in chapter 50.38 RCW. Access to these records and information is limited to only those individuals conducting authorized statistical analysis, research, and evaluation studies. Only in cases consistent with the purposes of chapter 50.38 RCW are government agencies not required to comply with subsection (1)(c) of this section, but the requirements of the remainder of subsection (1) of this section must be satisfied. Information provided by the department and held to be private and confidential under state or federal laws shall not be misused or released to unauthorized parties subject to the sanctions in RCW 50.13.080.

(7) Disclosure to governmental agencies of information or records obtained by the employment security department from the federal government shall be governed by any applicable federal law or any agreement between the federal government and the employment security department where so required by federal law. When federal law does not apply to the records or information state law shall control.

(8) For purposes of statistical analysis and evaluation of the WorkFirst program or any successor state welfare program, the department of social and health services, the office of financial management, and other governmental entities with oversight or evaluation responsibilities for the program shall have access to employer wage information on clients in the program whose names and social security numbers are provided to the department. The information provided by the department may be used only for statistical analysis, research, and evaluation purposes as provided in sections 702 and 703 of this act. The department of social and health services is not required to comply with subsection (1)(c) of this section, but the requirements of the remainder of subsection (1) of this section must be satisfied.

(9) The disclosure of any records or information by a governmental agency which has obtained the records or information under this section is prohibited unless the disclosure is directly connected to the official purpose for which the records or information were obtained.

((~~(9)~~)) (10) In conducting periodic salary or fringe benefit studies pursuant to law, the department of personnel shall have access to records of the employment security department as may be required for such studies. For such purposes, the requirements of subsection (1)(c) of this section need not apply.

NEW SECTION. Sec. 805. A new section is added to chapter 43.20A RCW to read as follows:

(1) The department shall provide the employment security department quarterly with the names and social security numbers of all clients in the WorkFirst program and any successor state welfare program.

(2) The information provided by the employment security department under RCW 50.13.060 for statistical analysis and welfare program evaluation purposes may be used only for statistical analysis, research, and evaluation purposes as provided in sections 702 and 703 of this act. Through individual matches with accessed employment security department confidential employer wage files, only aggregate, statistical, group level data shall be reported. Data sharing by the employment security department may be extended to include the office of financial management and other such governmental entities with oversight responsibility for this program.

(3) The department and other agencies of state government shall protect the privacy of confidential personal data supplied under RCW 50.13.060 consistent with federal law, chapter 50.13 RCW, and the terms and conditions of a formal data-sharing agreement between the employment security department and agencies of state government, however the misuse or unauthorized use of confidential data supplied by the employment security department is subject to the penalties in RCW 50.13.080.

Sec. 806. RCW 74.04.062 and 1973 c 152 s 2 are each amended to read as follows:

Upon written request of a person who has been properly identified as an officer of the law ((~~with a felony arrest warrant~~)) or a properly identified United States immigration official ((~~with a warrant for an illegal alien~~)) the department shall disclose to such officer the current address and location of ((~~the person properly described in the warrant~~)) a recipient of public welfare if the officer furnishes the department with such person's name and social security account number and satisfactorily demonstrates that such recipient is a fugitive, that the location or apprehension of such fugitive is within the officer's official duties, and that the request is made in the proper exercise of those duties.

When the department becomes aware that a public assistance recipient is the subject of an outstanding warrant, the department may contact the appropriate law enforcement agency and, if the warrant is valid, provide the law enforcement agency with the location of the recipient.

NEW SECTION. Sec. 807. QUESTIONNAIRES. The department of social and health services shall create a questionnaire, asking businesses for information regarding available and upcoming job opportunities for welfare recipients. The department of revenue shall include the questionnaire in a regular quarterly mailing. The department of social and health services shall receive responses and use the information to develop work activities in the areas where jobs will be available.

NEW SECTION. Sec. 808. PART HEADINGS, CAPTIONS, AND TABLE OF CONTENTS NOT LAW. Part headings, captions, and the table of contents used in this act are not any part of the law.

NEW SECTION. Sec. 809. The governor and the department of social and health services shall seek all necessary exemptions and waivers from and amendments to federal statutes, rules, and regulations and shall report to the appropriate committees in the house of representatives and senate quarterly on the efforts to secure the federal changes to permit full implementation of this act at the earliest possible date.

NEW SECTION. Sec. 810. Sections 1, 2, 103, 104, 106, 202 through 205, 301, 302, 307, 308, 310 through 318, 321, 324 through 326, 402, 503, 504, 701 through 704, and 706 of this act constitute a new chapter in Title 74 RCW.

NEW SECTION. Sec. 811. If any part of this act is found to be in conflict with federal requirements that are a prescribed condition to the allocation of federal funds to the state, the conflicting part of this act is inoperative solely to the extent of the conflict and with respect to the agencies directly affected, and this finding does not affect the operation of the remainder of this act in its application to the agencies concerned. The rules under this act shall meet federal requirements that are a necessary condition to the receipt of federal funds by the state. As used in this section, "allocation of federal funds to the state" means the allocation of federal funds that are appropriated by the legislature to the department of social and health services and on which the department depends for carrying out any provision of the operating budget applicable to it.

NEW SECTION. Sec. 812. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION. Sec. 813. Sections 701 through 704 of this act take effect January 1, 1998.

NEW SECTION. Sec. 814. If specific funding for the purposes of sections 404 and 405 of this act, referencing this act by bill or chapter number and section numbers, is not provided by June 30, 1997, in the omnibus appropriations act, sections 404 and 405 of this act are null and void.

NEW SECTION. Sec. 815. This act shall be submitted to the people for their adoption and ratification, or rejection, at a state-wide special election to be held in June 1997 in this state as hereby ordered by the legislature, in accordance with Article II, section 1 of the state Constitution, as amended, and the laws adopted to facilitate the operation thereof.