Provides that, beginning on July 1, 2007, the rates of payment for boarding home medicaid contracted services under chapter 74.39A RCW shall be established by the department using the "home and community rates model," developed by the department and published on November 22, 2006. The "home and community rates model" shall be updated using the 2005 nursing home cost report data to estimate the cost of care for assisted living services, enhanced adult residential care services, and adult residential care services.