BILL REQ. #:  Z-1107.2 

Read first time 01/22/10.   Referred to Committee on Human Services & Corrections.

     AN ACT Relating to modifying general assistance and medical care services provisions; amending RCW 74.04.005, 74.04.230, 74.04.266, 74.04.620, 74.09.035, 74.09.010, 74.09.555, and 74.50.060; adding new sections to chapter 74.08 RCW; repealing RCW 74.04.0052; and providing an effective date.

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

Sec. 1   RCW 74.04.005 and 2003 1st sp.s. c 10 s 1 are each 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" -- Public 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" -- The department of social and health services.
     (3) "County or local office" -- The 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" -- The 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" -- Aid to persons in need who:
     (i) Are not eligible to receive federal-aid assistance, other than food stamps or food stamp benefits transferred electronically 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 temporary assistance for needy families program; 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 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 have their benefits discontinued unless the recipient demonstrates no material improvement in their medical or mental condition. The department may discontinue benefits when there was 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 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 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.
     (h) No person may be considered an eligible individual for general assistance with respect to any month if during that month the person:
     (i) Is fleeing to avoid prosecution of, or to avoid custody or confinement for conviction of, a felony, or an attempt to commit a felony, under the laws of the state of Washington or the place from which the person flees; or
     (ii) Is violating a condition of probation, community supervision, or parole imposed under federal or state law for a felony or gross misdemeanor conviction.
     (7))) "Applicant" -- Any 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))) (7) "Recipient" -- Any person receiving assistance and in addition those dependents whose needs are included in the recipient's assistance.
     (((9))) (8) "Standards of assistance" -- The level of income required by an applicant or recipient to maintain a level of living specified by the department.
     (((10))) (9) "Resource" -- Any 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. The department may by rule designate resources that an applicant may retain and not be ineligible for public assistance because of such resources. Exempt resources shall include, but are not limited to:
     (a) A home that an applicant, recipient, or their dependents is living in, including the surrounding property;
     (b) Household furnishings and personal effects;
     (c) A motor vehicle, other than a motor home, used and useful having an equity value not to exceed five thousand dollars;
     (d) A motor vehicle necessary to transport a ((physically disabled)) household member with a physical disability. This exclusion is limited to one vehicle per ((physically disabled)) person with a physical disability;
     (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;
     (f) Applicants for or recipients of ((general assistance)) temporary assistance for unemployable persons and assistance for the aged, blind, and disabled shall have their eligibility based on resource limitations consistent with the temporary assistance for needy families program rules adopted by the department; and
     (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))) (10) "Income" -- (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 or her to decrease his or her need for public assistance or to aid in rehabilitating him or her or his or her 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 addition, for cash assistance the department may disregard income pursuant to RCW 74.08A.230 and 74.12.350.
     (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))) (11) "Need" -- The difference between the applicant's or recipient's standards of assistance for himself or herself and the dependent members of his or her 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 or her family.
     (((13))) (12) 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))) (13) 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. 2   A new section is added to chapter 74.08 RCW to read as follows:
     (1) To the extent that funds are appropriated for the particular purposes of temporary assistance for unemployable persons, temporary assistance for unemployable persons may be provided to persons in need who:
     (a) Are not eligible to receive federal-aid assistance, other than medical assistance or supplemental nutrition assistance program benefits. However, an individual who refuses or fails to cooperate in obtaining federal-aid assistance, without good cause, is not eligible for temporary assistance for unemployable persons;
     (b) Meet the following requirements:
     (i) Are pregnant, if the need is based on the current income and resource requirements of the federal temporary assistance for needy families program;
     (ii) Are determined by the department to be incapacitated from gainful employment by reason of physical or mental impairment that will likely continue for a minimum of ninety days and do not qualify for state assistance for the aged, blind, and disabled under section 3 of this act; or
     (iii) Are determined by the department to be incapacitated from gainful employment solely by reason of drug or alcohol dependency, which incapacity will likely continue for a minimum of ninety days;
     (c) Are citizens or aliens lawfully admitted for permanent residence or otherwise residing in the United States under color of law;
     (d) 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; and
     (e) Have not refused or failed without good cause to participate in drug or alcohol treatment if an assessment by a certified chemical dependency counselor indicates a need for such treatment. Good cause may be found to exist when a person's physical or mental condition, as determined by the department, prevents the person from participating in drug or alcohol dependency treatment. However, good cause does not exist if the person is not able to participate because drug or alcohol dependency treatment is not available.
     (2) Assistance under subsection (1)(b)(i) of this section shall be provided only to persons who accept available services that can reasonably be expected to enable the person to work or reduce the need for assistance. Failure to accept such services without good cause shall result in termination. After reapplication and agreeing to cooperate in accepting such services, the person shall be subject to the following periods of ineligibility:
     (a) First failure: One week;
     (b) Second failure within six months of first failure: One month;
     (c) Third and subsequent failure within one year of first failure: Two months.
     (3) Persons found eligible for temporary assistance for the unemployable may, if otherwise eligible, receive assistance pending a final determination of eligibility for federal supplemental security income benefits. Any 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. Persons found eligible for temporary assistance for unemployable persons may, if otherwise eligible, receive assistance under this section pending a final determination regarding the client's eligibility for state assistance under section 3 of this act. Any assistance received under this section shall be credited and deducted from any assistance the client is subsequently determined eligible to receive under section 3 of this act during any same period.
     (4) The department shall adopt rules consistent with the statutory requirements of this title that are necessary for the administration of the temporary assistance for unemployable persons program.
     (a) For assistance under subsection (1)(b)(i) of this section, such rules shall include medical criteria necessary to ensure that incapacity decisions are based on clear, objective medical information.
     (i) 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.
     (ii) The department shall adopt by rule criteria for conducting periodic reviews of the eligibility of recipients of temporary assistance for unemployable persons. The department may discontinue benefits if a recipient is unable to demonstrate that his or her medical or mental impairment continues to meet the criteria established under this subsection or when there was a specific error in the prior incapacity decision.
     (b) For assistance under subsection (1)(b)(ii) of this section, the department shall provide client assessment, treatment, and support services. The assessment shall include diagnostic evaluation and arranging for admission into treatment and supported living programs. The department shall base its determination of incapacity due to drug or alcohol dependency on documented evidence by a drug or alcohol treatment professional who is determined by the department to be qualified to make this finding.
     (5) A person may not be considered an eligible individual for temporary assistance for the unemployable with respect to any month if during that month the person:
     (a) Is fleeing to avoid prosecution of, or to avoid custody or confinement for conviction of, a felony, or an attempt to commit a felony, under the laws of the state of Washington or the place from which the person flees; or
     (b) Is violating a condition of probation, community supervision, or parole imposed under federal or state law for a felony or gross misdemeanor conviction.
     (6) In order to administer the program within the funds appropriated for temporary assistance for unemployable persons, the department may by rule establish methods to limit the number of recipients of such assistance. These methods may include a limit on the number of months a person may receive such assistance or a freeze on new enrollment in the program. In determining the number of months a person may receive temporary assistance for unemployable persons, the department may include months the person received general assistance or medical care services based on eligibility for drug or alcohol dependency services prior to the effective date of this act. In order to rationally allocate drug and alcohol dependency treatment services, the department may establish by rule additional eligibility criteria, including the setting of priorities among classes of persons found incapacitated under subsection (1)(b)(ii) of this section for treatment services. Such rules shall give first priority for treatment services to pregnant women and parents of young children.

NEW SECTION.  Sec. 3   A new section is added to chapter 74.08 RCW to read as follows:
     (1) The assistance for the aged, blind, and disabled program shall provide income assistance for persons in need who:
     (a) Are not eligible to receive federal-aid assistance, other than medical assistance or supplemental nutrition assistance program benefits. However, an individual who refuses or fails to cooperate in obtaining federal-aid assistance, without good cause, is not eligible for assistance for the aged, blind, and disabled; and
     (b) Meet the following requirements:
     (i) Are residents of a long-term care facility or who have been determined by the department to be aged, blind, or disabled based on age, blindness, and disability standards used to establish eligibility for supplemental security income under Title XVI of the federal social security act;
     (ii) Are citizens or aliens lawfully admitted for permanent residence or otherwise residing in the United States under color of law;
     (iii) 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; and
     (iv) Have not refused or failed without good cause to participate in drug or alcohol treatment if an assessment by a certified chemical dependency counselor indicates a need for such treatment.
     (2) Assistance shall be provided only to persons who will accept available services that can reasonably be expected to reduce the need for assistance. Failure to accept such services without good cause shall result in termination. After reapplication and agreeing to cooperate in accepting such services, the person shall be subject to the following maximum periods of ineligibility:
     (a) First failure: One week;
     (b) Second failure within six months of first failure: One month;
     (c) Third and subsequent failure within one year of first failure: Two months.
     (3) The department shall adopt rules consistent with the statutory requirements of this title that are necessary for the administration of the assistance for the aged, blind, and disabled program. Such rules shall include medical criteria for disability and blindness determinations to ensure that eligibility decisions are consistent with federal statutory requirements for the supplemental security income program and are based on clear, objective medical information.
     (4) The department shall by rule adopt criteria for conducting periodic reviews of the eligibility of recipients of assistance for the aged, blind, and disabled whose eligibility is based on a determination of blindness or disability. The department may discontinue such benefits if it determines the recipient's medical or mental impairment no longer meets the criteria established under subsection (3) of this section or when there was specific error in the prior determination of disability or blindness. If benefits are discontinued under this subsection, the department shall redetermine the person's eligibility for temporary assistance for unemployable persons under section 2 of this act.
     (5)(a) Notwithstanding the provisions of subsection (1) of this section, persons who appear eligible to receive supplemental security income under Title XVI of the federal social security act may, if otherwise eligible, receive interim assistance for the aged, blind, and disabled pending final determination on an application for federal supplemental security income benefits, as provided for in RCW 74.04.620. Upon a final determination of eligibility by the social security administration, interim assistance for the aged, blind, and disabled will cease. Any 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.
     (b) If a person has been denied interim assistance to the aged, blind, and disabled under this subsection and has not been found by the social security administration to be eligible for supplemental security income, the department shall determine the person's eligibility for temporary assistance for unemployable persons under section 2 of this act.
     (6) A person may not be considered an eligible individual for assistance to the aged, blind, and disabled with respect to any month if during that month the person:
     (a) Is fleeing to avoid prosecution of, or to avoid custody or confinement for conviction of, a felony, or an attempt to commit a felony, under the laws of the state of Washington or the place from which the person flees; or
     (b) Is violating a condition of probation, community supervision, or parole imposed under federal or state law for a felony or gross misdemeanor conviction.

Sec. 4   RCW 74.04.230 and 1982 c 204 s 16 are each amended to read as follows:
     Persons eligible for ((general assistance under RCW 74.04.005)) temporary assistance for unemployable persons under section 2 of this act and assistance for the aged, blind, and disabled under section 3 of this act are eligible for mental health services to the extent that they meet the client definitions and priorities established by chapter 71.24 RCW.

Sec. 5   RCW 74.04.266 and 1977 ex.s. c 215 s 1 are each amended to read as follows:
     In determining need for ((general)) temporary assistance for unemployable persons as defined in ((RCW 74.04.005(6)(a))) section 2 of this act and assistance for the aged, blind, and disabled as defined in section 3 of this act, the department may by rule and regulation establish a monthly earned income exemption in an amount not to exceed the exemption allowable under disability programs authorized in Title XVI of the federal social security act.

Sec. 6   RCW 74.04.620 and 1983 1st ex.s. c 41 s 37 are each amended to read as follows:
     (1) The department is authorized to establish a program of state supplementation to the national program of supplemental security income consistent with Public Law 92-603 and Public Law 93-66 to those persons who are in need thereof in accordance with eligibility requirements established by the department.
     (2) The department is authorized to establish reasonable standards of assistance and resource and income exemptions specifically for such program of state supplementation which shall be consistent with the provisions of the Social Security Act.
     (3) The department is authorized to make payments to applicants for supplemental security income, pursuant to agreements as provided in Public Law 93-368, ((who are otherwise eligible)) but for ((general assistance)) their eligibility to receive supplemental security income would receive temporary assistance for unemployable persons and assistance for the aged, blind, and disabled, as provided in section 3 of this act.
     (4) Any agreement between the department and a supplemental security income applicant providing for the reimbursement of interim assistance to the department shall provide, if the applicant has been represented by an attorney, that twenty-five percent of the reimbursement received shall be withheld by the department and all or such portion thereof as has been approved as a fee by the United States department of health and human services shall be released directly to the applicant's attorney. The secretary may maintain such records as are deemed appropriate to measure the cost and effectiveness of such agreements and may make recommendations concerning the continued use of such agreements to the legislature.

Sec. 7   RCW 74.09.035 and 1987 c 406 s 12 are each amended to read as follows:
     (1) To the extent of available funds, medical care services may be provided to recipients of ((general)) temporary assistance for unemployable persons chapter 74.08 RCW, assistance for the aged, blind, and disabled under chapter 74.08 RCW, and recipients of alcohol and drug addiction services provided under chapter 74.50 RCW, in accordance with medical eligibility requirements established by the department.
     (2) ((Determination of)) In order to administer the program within the funds appropriated for medical care services for recipients of temporary assistance for unemployable persons, assistance for the aged, blind, and disabled, or alcohol or drug dependency or abuse services, the department may impose limitations on the amount, scope, and duration of medical care services ((shall be limited to coverage as defined by the department, except that)) provided to recipients may limit the number of persons receiving medical care services, and may limit the number of months of coverage. However, adult dental((,)) and routine foot care shall not be included unless there is a specific appropriation for these services.
     (3) The department shall establish standards of assistance and resource and income exemptions, which may include deductibles and co-insurance provisions. In addition, the department may include a prohibition against the voluntary assignment of property or cash for the purpose of qualifying for assistance.
     (4) Residents of skilled nursing homes, intermediate care facilities, and intermediate care facilities for the mentally retarded who are eligible for medical care services shall be provided medical services to the same extent as provided to those persons eligible under the medical assistance program.
     (5) Payments made by the department under this program shall be the limit of expenditures for medical care services solely from state funds.
     (6) Eligibility for medical care services shall commence with the date of certification for ((general assistance)) temporary assistance for unemployable persons or assistance for the aged, blind, and disabled under chapter 74.08 RCW or the date of eligibility for alcohol and drug addiction services provided under chapter 74.50 RCW.

Sec. 8   RCW 74.09.010 and 2007 c 3 s 2 are each amended to read as follows:
     As used in this chapter:
     (1) "Children's health program" means the health care services program provided to children under eighteen years of age and in households with incomes at or below the federal poverty level as annually defined by the federal department of health and human services as adjusted for family size, and who are not otherwise eligible for medical assistance or the limited casualty program for the medically needy.
     (2) "Committee" means the children's health services committee ((created in section 3 of this act)).
     (3) "County" means the board of county commissioners, county council, county executive, or tribal jurisdiction, or its designee. A combination of two or more county authorities or tribal jurisdictions may enter into joint agreements to fulfill the requirements of RCW 74.09.415 through 74.09.435.
     (4) "Department" means the department of social and health services.
     (5) "Department of health" means the Washington state department of health created pursuant to RCW 43.70.020.
     (6) "Internal management" means the administration of medical assistance, medical care services, the children's health program, and the limited casualty program.
     (7) "Limited casualty program" means the medical care program provided to medically needy persons as defined under Title XIX of the federal social security act, and to medically indigent persons who are without income or resources sufficient to secure necessary medical services.
     (8) "Medical assistance" means the federal aid medical care program provided to categorically needy persons as defined under Title XIX of the federal social security act.
     (9) "Medical care services" means the limited scope of care financed by state funds and provided to ((general assistance recipients)) temporary assistance for unemployed recipients under chapter 74.08 RCW, assistance for aged, blind, and disabled recipients under chapter 74.08 RCW, and recipients of alcohol and drug addiction services provided under chapter 74.50 RCW.
     (10) "Nursing home" means nursing home as defined in RCW 18.51.010.
     (11) "Poverty" means the federal poverty level determined annually by the United States department of health and human services, or successor agency.
     (12) "Secretary" means the secretary of social and health services.
     (13) "Full benefit dual eligible beneficiary" means an individual who, for any month: Has coverage for the month under a medicare prescription drug plan or medicare advantage plan with part D coverage; and is determined eligible by the state for full medicaid benefits for the month under any eligibility category in the state's medicaid plan or a section 1115 demonstration waiver that provides pharmacy benefits.

Sec. 9   RCW 74.09.555 and 2005 c 503 s 12 are each amended to read as follows:
     (1) The department shall adopt rules and policies providing that when persons with a mental disorder, who were enrolled in medical assistance immediately prior to confinement, are released from confinement, their medical assistance coverage will be fully reinstated on the day of their release, subject to any expedited review of their continued eligibility for medical assistance coverage that is required under federal or state law.
     (2) The department, in collaboration with the Washington association of sheriffs and police chiefs, the department of corrections, and the regional support networks, shall establish procedures for coordination between department field offices, institutions for mental disease, and correctional institutions, as defined in RCW 9.94.049, that result in prompt reinstatement of eligibility and speedy eligibility determinations for persons who are likely to be eligible for medical assistance services upon release from confinement. Procedures developed under this subsection must address:
     (a) Mechanisms for receiving medical assistance services applications on behalf of confined persons in anticipation of their release from confinement;
     (b) Expeditious review of applications filed by or on behalf of confined persons and, to the extent practicable, completion of the review before the person is released;
     (c) Mechanisms for providing medical assistance services identity cards to persons eligible for medical assistance services immediately upon their release from confinement; and
     (d) Coordination with the federal social security administration, through interagency agreements or otherwise, to expedite processing of applications for federal supplemental security income or social security disability benefits, including federal acceptance of applications on behalf of confined persons.
     (3) Where medical or psychiatric examinations during a person's confinement indicate that the person is disabled, the correctional institution or institution for mental diseases shall provide the department with that information for purposes of making medical assistance eligibility and enrollment determinations prior to the person's release from confinement. The department shall, to the maximum extent permitted by federal law, use the examination in making its determination whether the person is disabled and eligible for medical assistance.
     (4) For purposes of this section, "confined" or "confinement" means incarcerated in a correctional institution, as defined in RCW 9.94.049, or admitted to an institute for mental disease, as defined in 42 C.F.R. part 435, Sec. 1009 on July 24, 2005.
     (5) For purposes of this section, "likely to be eligible" means that a person:
     (a) Was enrolled in medicaid or supplemental security income or ((general assistance)) temporary assistance for unemployed recipients under chapter 74.08 RCW, or assistance for aged, blind, and disabled recipients under chapter 74.08 RCW immediately before he or she was confined and his or her enrollment was terminated during his or her confinement; or
     (b) Was enrolled in medicaid or supplemental security income or ((general assistance)) temporary assistance for unemployed recipients under chapter 74.08 RCW, or assistance for aged, blind, and disabled recipients under chapter 74.08 RCW at any time during the five years before his or her confinement, and medical or psychiatric examinations during the person's confinement indicate that the person continues to be disabled and the disability is likely to last at least twelve months following release.
     (6) The economic services administration shall adopt standardized statewide screening and application practices and forms designed to facilitate the application of a confined person who is likely to be eligible for medicaid.

Sec. 10   RCW 74.50.060 and 1989 1st ex.s. c 18 s 3 are each amended to read as follows:
     (1) The department shall establish a shelter assistance program to provide, within available funds, shelter for persons eligible under this chapter. "Shelter," "shelter support," or "shelter assistance" means a facility under contract to the department providing room and board in a supervised living arrangement, normally in a group or dormitory setting, to eligible recipients under this chapter. This may include supervised domiciliary facilities operated under the auspices of public or private agencies. No facility under contract to the department shall allow the consumption of alcoholic beverages on the premises. The department may contract with counties and cities for such shelter services. To the extent possible, the department shall not displace existing emergency shelter beds for use as shelter under this chapter. In areas of the state in which it is not feasible to develop shelters, due to low numbers of people needing shelter services, or in which sufficient numbers of shelter beds are not available, the department may provide shelter through an intensive protective payee program, unless the department grants an exception on an individual basis for less intense supervision.
     (2) Persons continuously eligible for ((the general)) temporary assistance(( -- )) for unemployable ((program)) recipients under chapter 74.08 RCW or assistance for aged, blind, and disabled recipients under chapter 74.08 RCW since July 25, 1987, who transfer to the program established by this chapter, have the option to continue their present living situation, but only through a protective payee.

NEW SECTION.  Sec. 11   RCW 74.04.0052 (Teen applicants' living situation -- Criteria -- Presumption -- Protective payee -- Adoption referral) and 1997 c 58 s 502 & 1994 c 299 s 34 are each repealed.

NEW SECTION.  Sec. 12   This act takes effect July 1, 2010.