Requires the joint legislative audit and review committee to conduct a comprehensive study that examines the current adult family home system in Washington state. Specifically, the study shall include: (1) A summary of how adult family homes fit into the long-term care system;

(2) An analysis of the current client acuity levels in adult family homes;

(3) An analysis of the training mechanism for caregivers in adult family homes;

(4) An analysis of the liability exemption for adult family homes;

(5) A regional needs analysis for adult family homes, broken down by city and county;

(6) An analysis of current regulation and oversight of adult family homes;

(7) An analysis of the average wages and benefits for adult family home caregivers; and

(8) An analysis of the average length of stay for caregivers in an adult family home.

Requires the joint legislative audit and review committee to submit the final report to the legislature by October 31, 2007.