"NEW SECTION.  Sec. 1   Intent. (1) The legislature finds that:
     (a) Persons who have a long-term disability and apply for federal supplemental security income benefits should receive assistance while their application for federal benefits is pending, with repayment from the federal government of state-funded income assistance paid through the long-term disability assistance program;
     (b) Persons who are incapacitated from gainful employment for an extended period, but who may not meet the level of severity of a long-term disability, are at increased risk of homelessness; and
     (c) Persons who are homeless and suffering from significant medical impairments, mental illness, or chemical dependency face substantial barriers to successful participation in, and completion of, needed medical or behavioral health treatment services. Stable housing increases the likelihood of compliance with and completion of treatment.
     (2) Through this act, the legislature intends to:
     (a) Terminate all components of the disability lifeline program created in 2010 and codified in RCW 74.04.005 and create new programs: (i) To provide financial grants through the long-term disability assistance program, the aged, blind, and disabled assistance program, and the pregnant women assistance program; and (ii) to provide services through the essential needs and housing support program; and
     (b) Increase opportunities to utilize limited public funding, combined with private charitable and volunteer efforts to serve persons who are recipients of the benefits provided by the new programs created under this act.

NEW SECTION.  Sec. 2   (1)(a) Effective November 1, 2011, the long-term disability assistance program shall provide financial grants to persons who:
     (i) Are recipients of disability lifeline expedited benefits on October 31, 2011, and continue to meet the eligibility requirements of (a)(ii) of this subsection; or
     (ii)(A) Are not eligible to receive federal aid assistance, other than basic food benefits transferred electronically and medical assistance;
     (B) Are likely to meet the federal supplemental security income disability standard. In making this determination, the department should give full consideration to the cumulative impact of an applicant's multiple impairments, an applicant's age, and vocational and educational history but need not duplicate the full five-step sequential review process set out in federal supplemental security income regulations. To improve access to timely disability evaluations, the department may allow mid-level practitioners, such as advance registered nurse practitioners, and licensed mental health practitioners, to conduct evaluations, with review and approval by medical practitioners;
     (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 number. If the social security 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 benefits, and the social security number shall be provided to the department upon receipt;
     (iii) Meet income and resource standards for the disability lifeline program in effect on December 31, 2010; 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. Good cause must 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, when needed outpatient drug or alcohol treatment is not available to the person in the county of his or her residence or when needed inpatient treatment is not available in a location that is reasonably accessible for the person.
     (b) The following persons are not eligible for the long-term disability assistance program:
     (i) Persons who are not able to engage in gainful employment due primarily to alcohol or drug addiction. These persons 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. This subsection may not be construed to prohibit the department from granting long-term disability assistance benefits to alcoholics and drug addicts who are incapacitated due to other physical or mental conditions that meet the eligibility criteria for the long-term disability assistance program;
     (ii) Persons who refuse or fail to cooperate in obtaining federal aid assistance, without good cause; and
     (iii) Persons for whom there has been a final determination of ineligibility for federal supplemental security income benefits.
     (c) Persons may receive long-term disability assistance benefits pending application for federal supplemental security income benefits. The monetary value of any long-term disability assistance benefit 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.
     (2) Effective November 1, 2011, the aged, blind, and disabled assistance program shall provide financial grants to persons who:
     (a) Are recipients of disability lifeline aged, blind, and disabled benefits on October 31, 2011, and continue to meet the eligibility requirements of (b) of this subsection; or
     (b)(i) Are citizens or aliens lawfully admitted for permanent residence or otherwise residing in the United States under color of law;
     (ii) Are likely to meet the federal supplemental security income disability standard. In making this determination, the department should give full consideration to the cumulative impact of an applicant's multiple impairments, an applicant's age, and vocational and educational history but need not duplicate the full five-step sequential review process set out in federal supplemental security income regulations;
     (iii) Meet the income and resource standards for the disability lifeline program in effect on December 31, 2010;
     (iv) Have not refused or failed to cooperate in obtaining federal aid assistance without good cause; and
     (v) 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 must 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, when needed outpatient drug or alcohol treatment is not available to the person in the county of his or her residence or when needed inpatient treatment is not available in a location that is reasonably accessible for the person.
     (3) Effective November 1, 2011, the pregnant women assistance program shall provide financial grants to persons who:
     (a) Are recipients of disability lifeline benefits as a pregnant woman on October 31, 2011, and continue to meet the eligibility requirements of (b) of this subsection; or
     (b)(i) Are citizens or aliens lawfully admitted for permanent residence or otherwise residing in the United States under color of law;
     (ii) Are pregnant and in need, based upon the current income and resource standards of the federal temporary assistance for needy families program, but are ineligible for federal temporary assistance for needy families benefits for a reason other than failure to cooperate in program requirements; and
     (iii) 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 must 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, when needed outpatient drug or alcohol treatment is not available to the person in the county of his or her residence or when needed inpatient treatment is not available in a location that is reasonably accessible for the person.
     (4) Effective November 1, 2011, referrals for essential needs and housing support under section 4 of this act shall be provided to persons found eligible for medical care services under RCW 74.09.035 who are not recipients of alcohol and addiction services provided under chapter 74.50 RCW.
     (5) No person may be considered an eligible individual for benefits under this section 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) The department must review the cases of all persons, except recipients of alcohol and addiction treatment under chapter 74.50 RCW, who have received medical care services for twelve months, and annually thereafter, to determine whether they are eligible for the long-term disability assistance program. In determining whether an applicant is likely to meet the eligibility requirements for the long-term disability assistance program, the department should give full consideration to the cumulative impact of an applicant's multiple impairments, age, and vocational and educational history but need not duplicate the full five-step sequential review process set out in federal supplemental security income regulations. To improve access to timely disability evaluations, the department may allow mid-level practitioners, such as advanced registered nurse practitioners and licensed mental health practitioners, to conduct evaluations, with review and approval by medical practitioners.

NEW SECTION.  Sec. 3   Funding for the essential needs and housing support program established under section 4 of this act shall be as follows: The total funding for the program shall be based on the projected medical care services caseload, adjusted for discrepancies between the grant and medical caseloads, and the estimated monthly average of the cash assistance grant that was in effect as of July 1, 2011. In subsequent fiscal biennia, the total funding for the program shall, at a minimum, retain the average per-client support level provided in the previous fiscal biennium.

NEW SECTION.  Sec. 4   A new section is added to chapter 43.185C RCW to read as follows:
     Grants to local governments and community-based organizations for essential needs and housing support. (1) The department shall distribute funds for the essential needs and housing support program established under this section in a manner consistent with the requirements of this section. The first distribution of funds must be completed by September 1, 2011. Receipt of essential needs or housing support is not an entitlement for persons found eligible for such services under section 2 of this act.
     (2) The department shall distribute funds appropriated for the essential needs and housing support program in the form of grants to designated essential needs support and housing support entities within each county using a formula based on the average number of clients residing in the county who received either disability lifeline-unemployable benefits or essential needs and support benefits in each of the three preceding fiscal years. The formula shall be applied beginning July 1, 2011, and updated annually. Between ten and fifteen percent of the funds distributed to a county must be used to provide essential needs support.
     (3) For each county, the department shall designate an essential needs support entity and a housing support entity that will begin providing these supports to essential needs and housing support program recipients on November 1, 2011. Essential needs and housing support entities are not required to provide assistance to every essential needs and housing support recipient that is referred to the local entity or who meets the priority standards in subsection (4)(c) of this section.
     (a) Each designated entity must be a local government or community-based organization, and may administer the funding for essential needs support, housing support, or both. Designated entities have the authority to subcontract with qualified entities. Upon request, and the approval of the department, two or more counties may combine resources to more effectively deliver services.
     (b) The department's designation process must include a review of proficiency in managing housing or human services programs when designating housing support entities.
     (c) Within a county, if the department directly awards separate grants to the designated housing support entity and the designated essential needs support entity, the department shall determine the amount allocated for essential needs support within the range specified in subsection (2) of this section.
     (4)(a) Essential needs and housing support entities must use funds distributed under this section as flexibly as is practicable to provide essential needs items and housing support to recipients of the essential needs and housing support program, subject to the requirements of this section. Essential needs and housing support shall not be provided in the form of cash assistance to recipients.
     (b) Benefits provided under the essential needs and housing support program shall not be provided to recipients in the form of cash assistance.
     (c) Designated housing support entities must not exceed either the: (i) Average per-client support level established in the operating budget for all clients served through their housing support program; or (ii) maximum per-client support level established in the operating budget for any individual client served through their housing support program.
     (d) In awarding housing support, the designated housing support entity shall give first priority to clients who are in stable housing, and for whom support will allow housing retention and who would be at risk of homelessness without such housing support. Second priority shall be given to clients who are receiving care coordination services through the managed health care plan that has a contract with the state to serve essential needs and housing support program recipients. Within these priorities, additional local priorities for the use of funds must be developed in the event that available resources are not sufficient to provide service to all prioritized recipients who have been referred for support.
     (e) Essential needs and housing support entities must partner with other public and private organizations to maximize the beneficial impact of funds distributed under this section, and should attempt to leverage other sources of public and private funds to serve essential needs and housing support recipients. Funds appropriated in the operating budget for essential needs and housing support must be used only to serve persons eligible to receive services under that program.
     (5) The department and each essential needs and housing support entity shall minimize the percentage of funds used for administration of the essential needs and housing support program to maximize funding available for supports.
     (6) The department shall:
     (a) Require housing support entities to enter data into the homeless client management information system;
     (b) Require essential needs support entities to report on services provided under this section;
     (c) In collaboration with the department of social and health services, submit a report annually to the relevant policy and fiscal committees of the legislature. A preliminary report shall be submitted by December 31, 2011, and must include (c)(i), (iii), and (v) of this subsection. Annual reports must be submitted beginning December 1, 2012, and must include:
     (i) A description of the actions the department has taken to achieve the objectives of this act;
     (ii) The amount of funds used by the department to administer the program;
     (iii) Information on the housing status of essential needs and housing support recipients served by housing support entities, and individuals referred for housing support by the department of social and health services, but not receiving services;
     (iv) Grantee expenditure data related to administration and services provided under this section; and
     (v) Efforts made to partner with other entities and leverage sources or public and private funds;
     (d) Review the data submitted by the designated entities, and make recommendations for program improvements and administrative efficiencies. The department has the authority to designate alternative entities as necessary due to performance or other significant issues. Such change must only be made after consultation with the department of social and health services and the impacted entity.
     (7) The department, counties, and essential needs and housing support entities are not civilly or criminally liable and may not have any penalty or cause of action of any nature arise against them related to decisions regarding: (a) The provision or lack of provision of housing or essential needs support; or (b) the type of housing arrangement supported with funds allocated under this section, when the decision was made in good faith and in the performance of the powers and duties under this section. However, this section does not prohibit legal actions against the department, county, or essential needs or housing support entity to enforce contractual duties or obligations.

NEW SECTION.  Sec. 5   A new section is added to chapter 43.185C RCW to read as follows:
     The department, in collaboration with the department of social and health services, shall develop a mechanism through which the department and local governments or community-based organizations can verify a person has been determined eligible for medical care services under RCW 74.09.035 by the department of social and health services.

Sec. 6   RCW 74.09.035 and 2011 c 284 s 3 are each amended to read as follows:
     (1) To the extent of available funds, medical care services may be provided to ((recipients of disability lifeline benefits, persons denied disability lifeline benefits under RCW 74.04.005(5)(b) or 74.04.655 who otherwise meet the requirements of RCW 74.04.005(5)(a), and recipients of alcohol and drug addiction services provided under chapter 74.50 RCW, in accordance with medical eligibility requirements established by the department.)):
     (a) Persons who:
     (i) Are 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. The standard for incapacity in this subsection, as evidenced by the ninety-day duration standard, is not intended to be as stringent as federal supplemental security income disability standards;
     (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 number. If the social security 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 benefits, and the social security number shall be provided to the department upon receipt;
     (iv) Have countable income as described in RCW 74.04.005 at or below four hundred twenty-eight dollars for a married couple or at or below three hundred thirty-nine dollars for a single individual; and
     (v) Do not have countable resources in excess of those described in RCW 74.04.005.
     (b) Persons eligible for the aged, blind, or disabled assistance program authorized in section 2(2) of this act.
     (c) Persons eligible for alcohol and drug addiction services provided under chapter 74.50 RCW, in accordance with medical eligibility requirements established by the department.
     (d) The following persons are not eligible for medical care services:
     (i) Persons who are unemployable due primarily to alcohol or drug addiction, except as provided in (c) of this subsection. These persons 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. This subsection shall not be construed to prohibit the department from granting medical care services benefits to alcoholics and drug addicts who are incapacitated due to other physical or mental conditions that meet the eligibility criteria for the disability lifeline program;
     (ii) Persons who refuse or fail to cooperate in obtaining federal aid assistance, without good cause;
     (iii) Persons who refuse or fail 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 must 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, when needed outpatient drug or alcohol treatment is not available to the person in the county of his or her residence or when needed inpatient treatment is not available in a location that is reasonably accessible for the person; and
     (iv) Persons who are 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 who are violating a condition of probation, community supervision, or parole imposed under federal or state law for a felony or gross misdemeanor conviction.
     (e) For purposes of determining whether a person is incapacitated from gainful employment under (a) of this subsection:
     (i) The department shall adopt by rule medical criteria for incapacity determinations to ensure that eligibility decisions are consistent with statutory requirements and are based on clear, objective medical information; and
     (ii) 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.
     (f) For purposes of reviewing a person's continuing eligibility and in order to remain eligible for the program, persons who have been found to have an incapacity from gainful employment must demonstrate that there has been no material improvement in their medical or mental health condition. The department may discontinue benefits when there was specific error in the prior determination that found the person eligible by reason of incapacitation.
     (2) Enrollment in medical care services may not result in expenditures that exceed the amount that has been appropriated in the operating budget. If it appears that continued enrollment will result in expenditures exceeding the appropriated level for a particular fiscal year, the department may freeze new enrollment and establish a waiting list of ((eligible)) persons who may receive benefits only when sufficient funds are available. ((Upon implementation of a federal medicaid 1115 waiver providing federal matching funds for medical care services, persons subject to termination of disability lifeline benefits under RCW 74.04.005(5)(h) remain enrolled in medical care services and persons subject to denial of disability lifeline benefits under RCW 74.04.005(5)(h) remain eligible for medical care services.
     (2))) (3) Determination of the amount, scope, and duration of medical care services shall be limited to coverage as defined by the department, except that adult dental, and routine foot care shall not be included unless there is a specific appropriation for these services.
     (((3))) (4) The department shall enter into performance-based contracts with one or more managed health care systems for the provision of medical care services ((to recipients of disability lifeline benefits)) under this section. The contract must provide for integrated delivery of medical and mental health services.
     (((4))) (5) 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.
     (((5))) (6) Residents of skilled nursing homes, intermediate care facilities, and intermediate care facilities for persons with intellectual disabilities, as that term is described by federal law, 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.
     (((6) Eligibility for medical care services shall commence with the date of certification for disability lifeline benefits or the date of eligibility for alcohol and drug addiction services provided under chapter 74.50 RCW.))
     (7) Eligibility for medical care services shall commence with the date of certification for medical services, date of eligibility for the aged, blind, or disabled assistance program provider under section 2(2) of this act, or the date or eligibility for alcohol and drug addiction services provided under chapter 74.50 RCW.

NEW SECTION.  Sec. 7   For the purposes of this chapter, unless the context indicates otherwise, the following definitions shall apply:
     (1) "Aged, blind, and disabled assistance program" means the program established under section 2 of this act.
     (2) "Applicant" means 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.
     (3) "Department" means the department of social and health services.
     (4) "Director" or "secretary" means the secretary of social and health services.
     (5) "Essential needs and housing support program" means the program established under section 4 of this act.
     (6) "Essential needs support" means personal health and hygiene items, cleaning supplies, other necessary items and transportation passes or tokens provided through an essential needs support entity established under section 4 of this act.
     (7) "Federal aid assistance" means 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.
     (8) "Housing support" means assistance provided by a designated housing support entity established under section 4 of this act to maintain existing housing, to obtain housing, or to obtain heat, electricity, natural gas, sewer, garbage, and water services.
     (9) "Income" means:
     (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.
     (10) "Long-term disability assistance program" means the program established under section 2 of this act.
     (11) "Need" means 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.
     (12) "Pregnant women assistance program" means the program established under section 2 of this act.
     (13) "Recipient" means any person receiving assistance and in addition those dependents whose needs are included in the recipient's assistance.
     (14)(a) "Resource" means 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:
     (i) A home that an applicant, recipient, or their dependents is living in, including the surrounding property;
     (ii) Household furnishings and personal effects;
     (iii) A motor vehicle, other than a motor home, used and useful having an equity value not to exceed five thousand dollars;
     (iv) A motor vehicle necessary to transport a household member with a physical disability. This exclusion is limited to one vehicle per person with a physical disability; and
     (v) 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.
     (b) Applicants for or recipients of benefits under this chapter shall have their eligibility based on resource limitations consistent with the temporary assistance for needy families program rules adopted by the department.
     (c) 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.
     (15) 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.
     (16) In the construction of words and phrases used in this chapter, 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.

Sec. 8   RCW 74.04.005 and 2010 1st sp.s. c 8 s 4 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"(( -- )) means public aid to persons in need thereof for any cause, including services, medical care, assistance grants, disbursing orders, work relief, ((disability lifeline)) benefits under sections 2 and 4 of this act, and federal aid assistance.
     (2) "Department"(( -- )) means the department of social and health services.
     (3) "County or local office"(( -- )) means 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) "((Disability lifeline)) Essential needs and housing support program" means ((a program that provides aid and support in accordance with the conditions set out in this subsection.
     (a) Aid and assistance shall be provided to persons who are not eligible to receive federal aid assistance, other than basic food benefits transferred electronically and medical assistance and meet one of the following conditions:
     (i) Are pregnant and in need, based upon the current income and resource requirements of the federal temporary assistance for needy families program; or
     (ii) Are 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. The standard for incapacity in this subsection, as evidenced by the ninety-day duration standard, is not intended to be as stringent as federal supplemental security income disability standards; and
     (A) Are citizens or aliens lawfully admitted for permanent residence or otherwise residing in the United States under color of law;
     (B) Have furnished the department their social security number. If the social security 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 benefits, and the social security number shall be provided to the department upon receipt;
     (C) 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 must 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, when needed outpatient drug or alcohol treatment is not available to the person in the county of his or her residence or when needed inpatient treatment is not available in a location that is reasonably accessible for the person; and
     (D) Have not refused or failed without good cause to participate in vocational rehabilitation services, if an assessment conducted under RCW 74.04.655 indicates that the person might benefit from such services. Good cause must be found to exist when a person's physical or mental condition, as determined by the department, prevents the person from participating in vocational rehabilitation services, or when vocational rehabilitation services are not available to the person in the county of his or her residence.
     (b)(i) Persons who initially apply and are found eligible for disability lifeline benefits based upon incapacity from gainful employment under (a) of this subsection on or after September 2, 2010, who are homeless and have been assessed as needing chemical dependency or mental health treatment or both, must agree, as a condition of eligibility for the disability lifeline program, to accept a housing voucher in lieu of a cash grant if a voucher is available. The department shall establish the dollar value of the housing voucher. The dollar value of the housing voucher may differ from the value of the cash grant. Persons receiving a housing voucher under this subsection also shall receive a cash stipend of fifty dollars per month.
     (ii) If the department of commerce has determined under RCW 43.330.175 that sufficient housing is not available, persons described in this subsection who apply for disability lifeline benefits during the time period that housing is not available shall receive a cash grant in lieu of a cash stipend and housing voucher.
     (iii) Persons who refuse to accept a housing voucher under this subsection but otherwise meet the eligibility requirements of (a) of this subsection are eligible for medical care services benefits under RCW 74.09.035, subject to the time limits in (h) of this subsection.
     (c) The following persons are not eligible for the disability lifeline program:
     (i) Persons who are unemployable due primarily to alcohol or drug addiction. These persons 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. This subsection shall not be construed to prohibit the department from granting disability lifeline benefits to alcoholics and drug addicts who are incapacitated due to other physical or mental conditions that meet the eligibility criteria for the disability lifeline program;
     (ii) Persons who refuse or fail to cooperate in obtaining federal aid assistance, without good cause.
     (d) Disability lifeline benefits shall be provided only to persons who are not members of assistance units receiving federal aid assistance, except as provided in (a) of this subsection, and who will accept available services that 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.
     (e) Persons who are likely eligible for federal supplemental security income benefits shall be moved into the disability lifeline expedited component of the disability lifeline program. Persons placed in the expedited component of the program may, if otherwise eligible, receive disability lifeline benefits pending application for federal supplemental security income benefits. The monetary value of any disability lifeline benefit 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.
     (f) For purposes of determining whether a person is incapacitated from gainful employment under (a) of this subsection:
     (i) The department shall adopt by rule medical criteria for disability lifeline incapacity determinations to ensure that eligibility decisions are consistent with statutory requirements and are based on clear, objective medical information; and
     (ii) 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) Persons receiving disability lifeline benefits 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 health condition. The department may discontinue benefits when there was specific error in the prior determination that found the person eligible by reason of incapacitation.
     (h)(i) Beginning September 1, 2010, no person who is currently receiving or becomes eligible for disability lifeline program benefits shall be eligible to receive benefits under the program for more than twenty-four months in a sixty-month period. For purposes of this subsection, months of receipt of general assistance-unemployable benefits count toward the twenty-four month limit. Months during which a person received benefits under the expedited component of the disability lifeline or general assistance program or under the aged, blind, or disabled component of the disability lifeline or general assistance program shall not be included when determining whether a person has been receiving benefits for more than twenty-four months. On or before July 1, 2010, the department must review the cases of all persons who have received disability lifeline benefits or general assistance unemployable benefits for at least twenty months as of that date. On or before September 1, 2010, the department must review the cases of all remaining persons who have received disability lifeline benefits for at least twelve months as of that date. The review should determine whether the person meets the federal supplemental security income disability standard and, if the person does not meet that standard, whether the receipt of additional services could lead to employability. If a need for additional services is identified, the department shall provide case management services, such as assistance with arranging transportation or locating stable housing, that will facilitate the person's access to needed services. A person may not be determined ineligible due to exceeding the time limit unless he or she has received a case review under this subsection finding that the person does not meet the federal supplemental security income disability standard.
     (ii) The time limits established under this subsection expire June 30, 2013.
     (i) No person may be considered an eligible individual for disability lifeline benefits 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)) the program established in section 4 of this act.
     (6) "Long-term disability ((lifeline expedited)) assistance program" means ((a component of the disability lifeline program under which persons receiving disability lifeline benefits have been determined, after examination by an appropriate health care provider, to be likely to be eligible for federal supplemental security income benefits based on medical and behavioral health evidence that meets the disability standards used for the federal supplemental security income program)) the program established under section 2 of this act.
     (7) "Aged, blind, and disabled assistance program" means the program established under section 2 of this act.
     (8) "Federal aid assistance"(( -- )) means 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.
     (((8))) (9) "Applicant"(( -- )) means 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.
     (((9))) (10) "Recipient"(( -- )) means any person receiving assistance and in addition those dependents whose needs are included in the recipient's assistance.
     (((10))) (11) "Standards of assistance"(( -- )) means the level of income required by an applicant or recipient to maintain a level of living specified by the department.
     (((11))) (12) "Resource"(( -- )) means 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 household member with a physical disability. This exclusion is limited to one vehicle per 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 ((disability lifeline)) benefits under sections 2 and 4 of this act 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.
     (((12))) (13) "Income"(( -- )) means:
     (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.
     (((13))) (14) "Need"(( -- )) means 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.
     (((14))) (15) 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.
     (((15))) (16) 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.

Sec. 9   RCW 74.50.055 and 1989 1st ex.s. c 18 s 4 are each amended to read as follows:
     (1) A person shall not be eligible for treatment services under this chapter unless he or she:
     (a) Meets the ((financial)) income and resource eligibility requirements ((contained in RCW 74.04.005)) for the medical care services program under RCW 74.09.035(1)(a)(iv) and (v); and
     (b) Is incapacitated from gainful employment, which incapacity will likely continue for a minimum of sixty days.
     (2) First priority for receipt of treatment services shall be given to pregnant women and parents of young children.
     (3) In order to rationally allocate treatment services, the department may establish by rule caseload ceilings and additional eligibility criteria, including the setting of priorities among classes of persons for the receipt of treatment services. Any such rules shall be consistent with any conditions or limitations contained in any appropriations for treatment services.

Sec. 10   RCW 70.96A.530 and 2010 1st sp.s. c 8 s 10 are each amended to read as follows:
     If an assessment by a certified chemical dependency counselor indicates a need for drug or alcohol treatment, in order to enable a person receiving ((disability lifeline)) benefits under sections 2 and 4 of this act to improve his or her health status and transition from ((disability lifeline)) those benefits to employment, or transition to federal disability benefits, the person must be given high priority for enrollment in treatment, within funds appropriated for that treatment. However, first priority for receipt of treatment services must be given to pregnant women and parents of young children. This section expires June 30, 2013. ((Persons who are terminated from disability lifeline benefits under RCW 74.04.005(5)(h) and are actively engaged in chemical dependency treatment during the month they are terminated shall be provided the opportunity to complete their current course of treatment.))

NEW SECTION.  Sec. 11   The following acts or parts of acts are each repealed:
     (1) RCW 43.330.175 (Disability lifeline housing voucher program) and 2010 1st sp.s. c 8 s 8; and
     (2) RCW 74.04.810 (Study of disability lifeline program terminations -- Report) and 2010 1st sp.s. c 8 s 11.

NEW SECTION.  Sec. 12   The code reviser shall alphabetize the subsections containing definitions in RCW 74.04.005.

NEW SECTION.  Sec. 13   Sections 1 through 3 and 7 of this act constitute a new chapter in Title 74 RCW.

NEW SECTION.  Sec. 14   Section 10 of this act expires June 30, 2013.

NEW SECTION.  Sec. 15   Except for sections 6 and 8 of this act, this act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately.

NEW SECTION.  Sec. 16   Section 6 of this act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 22, 2011.

NEW SECTION.  Sec. 17   Section 8 of this act takes effect November 1, 2011."