BILL REQ. #:  S-0494.1 

Read first time 01/23/13.   Referred to Committee on Ways & Means.

     AN ACT Relating to restoring payment rates for community residential providers and annually adjusting payment rates for community residential providers by the rate of inflation; adding a new section to chapter 71A.12 RCW; creating new sections; providing an effective date; and declaring an emergency.

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

NEW SECTION.  Sec. 1   The legislature finds that the rate of reimbursement for providers of community residential services to persons with developmental disabilities currently has no established mechanism to keep pace with inflation. Further, the legislature finds that rate reductions to providers of community residential services to persons with developmental disabilities have decreased the gap between the hourly Washington minimum wage and the entry level hourly wage for direct support staff.

NEW SECTION.  Sec. 2   A new section is added to chapter 71A.12 RCW to read as follows:
     (1) Beginning in fiscal year 2014, and in each fiscal year thereafter, the benchmark rate, the indirect client support/administrative rate, and other service rate components for providers of community residential services to persons with developmental disabilities must be adjusted by an inflation factor during the first month of each fiscal year. The inflation factor must be calculated based on the rate of change in the consumer price index for urban wage earners and clerical workers, published by the United States bureau of labor statistics, for the most recent available twelve month period. The adjustment may not be less than zero percent and may not exceed four percent.
     (2) The benchmark rate for providers of community residential services to persons with developmental disabilities must be restored to the June 2009 payment level, prior to four percent in rate reductions. On July 1, 2013, after the inflation factor adjustment has been applied, the benchmark rate must be raised by an additional two percent. On July 1, 2014, after the inflation factor adjustment has been applied, the benchmark rate must be raised by an additional two percent.
     (3) The department must review the indirect client support/administrative rate for all providers of community residential services to persons with developmental disabilities. On July 1, 2013, any indirect client support/administrative rate from a provider that falls below the standard rate, as established in this section, must be raised by the department to the indirect client support/administrative standard rate.

NEW SECTION.  Sec. 3   If specific funding for the purposes of this act, referencing this act by bill or chapter number, is not provided by June 30, 2013, in the omnibus appropriations act, this act is null and void.

NEW SECTION.  Sec. 4   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 1, 2013.