Strike everything after the enacting clause and insert the following:

"PART I

GENERAL GOVERNMENT

Sec. 101.  2017 3rd sp.s. c 1 s 101 (uncodified) is amended to read as follows:

General Fund—State Appropriation (FY 2018). . . .(($37,642,000))

      $35,492,000

General Fund—State Appropriation (FY 2019). . . .(($39,205,000))

      $37,096,000

TOTAL APPROPRIATION. . . .(($78,858,000))

     $76,868,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $27,000 of the general fund—state appropriation for fiscal year 2019 is provided solely for the tax structure reform work group. The speaker shall designate one member from each of the major caucuses in the house of representatives as a work group to facilitate public discussions throughout the state regarding Washington's tax structure. As part of this effort, the work group may hold up to seven public meetings in geographically dispersed areas of the state throughout the 2017-2019 fiscal biennium. These discussions may include but are not limited to the advantages and disadvantages of the state's current tax structure and potential options to improve the current structure for the benefit of individuals, families, and businesses in Washington state. The work group is staffed by the office of program research. The work group may report to the house of representatives finance committee and other house of representatives committees upon request of the committee chair.

Sec. 102.  2017 3rd sp.s. c 1 s 102 (uncodified) is amended to read as follows:

General Fund—State Appropriation (FY 2018). . . .(($26,369,000))

      $24,908,000

General Fund—State Appropriation (FY 2019). . . .(($29,451,000))

      $27,998,000

TOTAL APPROPRIATION. . . .(($57,723,000))

     $55,847,000

Sec. 103.  2017 3rd sp.s. c 1 s 103 (uncodified) is amended to read as follows:

General Fund—State Appropriation (FY 2018). . . .(($135,000))

      $208,000

General Fund—State Appropriation (FY 2019). . . .(($29,000))

      $341,000

Performance Audits of Government—State

Appropriation. . . .(($8,619,000))

      $8,119,000

TOTAL APPROPRIATION. . . .(($8,783,000))

     $8,668,000

The appropriations in this section are subject to the following conditions and limitations:

(1) Notwithstanding the provisions of this section, the joint legislative audit and review committee may adjust the due dates for projects included on the committee's 2017-2019 work plan as necessary to efficiently manage workload.

(2) The committee shall complete its analysis of fire suppression funding and costs for the department of natural resources and the state fire marshal. A report on the results of the analysis with any findings and recommendations shall be submitted to the appropriate committees of the legislature by December 2017.

(3) $308,000 of the performance audits of government account—state appropriation is provided solely for the implementation of chapter 303, Laws of 2017 (ESHB 1594) (public records administration).

(((5))) (4) $100,000 of the performance audits of government account—state appropriation is provided solely for an evaluation of: (a) The adequacy and effectiveness of the department of commerce office of youth homelessness performance based contracting with homelessness service providers; and (b) compliance with the performance measurement, reporting, and quality award program application requirements of chapter 43.185C RCW.

(((6))) (5) The agency is directed to use its moneys in the savings incentive account for one-time relocation, furniture, equipment, and tenant improvements costs to move to the 1063 building.

(((7))) (6)(a) $250,000 of the performance audit of government—state appropriation is provided solely for the committee to conduct a study of the employment services and community access services provided by the department of social and health services for individuals with a developmental disability. The study should explore the following topics:

(i) The costs and benefits associated with prevocational training programs;

(ii) The process of requesting and authorizing prevocational services;

(iii) The costs and benefits associated with employment programs, including a review of hours worked each month and the usage of job coaches;

(iv) The process of requesting and authorizing employment services, including a review of clients over the age of 21 who have requested service and received a denial due to a lack of funding;

(v) The costs and benefits associated with community access services; and

(vi) The process of requesting and authorizing community access services, including a review of who have been denied an exception to policy for community access services.

(b) The evaluation must solicit input from interested stakeholders to include, but not be limited to, the ARC of Washington, the developmental disabilities council, the Washington association of counties, and disability rights of Washington.

(c) The evaluation is due to the legislature by December 1, 2018.

Sec. 104.  2017 3rd sp.s. c 1 s 105 (uncodified) is amended to read as follows:

General Fund—State Appropriation (FY 2018). . . .(($10,730,000))

      $10,317,000

General Fund—State Appropriation (FY 2019). . . .(($10,254,000))

      $10,724,000

TOTAL APPROPRIATION. . . .(($20,984,000))

     $21,866,000

Sec. 105.  2017 3rd sp.s. c 1 s 106 (uncodified) is amended to read as follows:

General Fund—State Appropriation (FY 2018). . . .(($302,000))

      $288,000

General Fund—State Appropriation (FY 2019). . . .(($308,000))

      $294,000

State Health Care Authority Administrative Account—State

Appropriation. . . .$406,000

Department of Retirement Systems Expense     

Account—State Appropriation. . . .$5,110,000

TOTAL APPROPRIATION. . . .$6,126,000

Sec. 106.  2017 3rd sp.s. c 1 s 107 (uncodified) is amended to read as follows:

General Fund—State Appropriation (FY 2018). . . .(($4,936,000))

      $4,650,000

General Fund—State Appropriation (FY 2019). . . .(($5,455,000))

      $5,171,000

TOTAL APPROPRIATION. . . .(($10,391,000))

     $10,389,000

Sec. 107.  2017 3rd sp.s. c 1 s 108 (uncodified) is amended to read as follows:

General Fund—State Appropriation (FY 2018). . . .(($4,043,000))

      $3,823,000

General Fund—State Appropriation (FY 2019). . . .(($4,485,000))

      $4,267,000

TOTAL APPROPRIATION. . . .$8,528,000

Sec. 108.  2017 3rd sp.s. c 1 s 110 (uncodified) is amended to read as follows:

General Fund—State Appropriation (FY 2018). . . .(($8,046,000))

      $7,711,000

General Fund—State Appropriation (FY 2019). . . .(($8,368,000))

      $8,028,000

TOTAL APPROPRIATION. . . .(($16,414,000))

     $16,410,000

Sec. 109.  2017 3rd sp.s. c 1 s 111 (uncodified) is amended to read as follows:

General Fund—State Appropriation (FY 2018). . . .(($1,685,000))

      $1,621,000

General Fund—State Appropriation (FY 2019). . . .(($1,714,000))

      $1,649,000

TOTAL APPROPRIATION. . . .(($3,399,000))

     $3,398,000

Sec. 110.  2017 3rd sp.s. c 1 s 112 (uncodified) is amended to read as follows:

General Fund—State Appropriation (FY 2018). . . .(($1,340,000))

      $1,246,000

General Fund—State Appropriation (FY 2019). . . .(($1,236,000))

      $1,200,000

TOTAL APPROPRIATION. . . .$2,576,000

Sec. 111.  2017 3rd sp.s. c 1 s 113 (uncodified) is amended to read as follows:

General Fund—State Appropriation (FY 2018). . . .(($18,077,000))

      $17,341,000

General Fund—State Appropriation (FY 2019). . . .(($18,860,000))

      $18,109,000

TOTAL APPROPRIATION. . . .(($36,937,000))

     $36,927,000

Sec. 112.  2017 3rd sp.s. c 1 s 114 (uncodified) is amended to read as follows:

General Fund—State Appropriation (FY 2018). . . .(($56,910,000))

      $55,101,000

General Fund—State Appropriation (FY 2019). . . .(($58,751,000))

      $62,381,000

General Fund—Federal Appropriation. . . .$2,175,000

General Fund—Private/Local Appropriation. . . .$677,000

Judicial Information Systems Account—State     

Appropriation. . . .(($58,486,000))

      $61,141,000

Judicial Stabilization Trust Account—State     

Appropriation. . . .(($6,691,000))

      $4,851,000

TOTAL APPROPRIATION. . . .(($183,690,000))

     $190,906,000

The appropriations in this section are subject to the following conditions and limitations:

(1) The distributions made under this subsection and distributions from the county criminal justice assistance account made pursuant to section 801 of this act constitute appropriate reimbursement for costs for any new programs or increased level of service for purposes of RCW 43.135.060.

(2) $1,399,000 of the general fund—state appropriation for fiscal year 2018 and $1,399,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for school districts for petitions to juvenile court for truant students as provided in RCW 28A.225.030 and 28A.225.035. The administrator for the courts shall develop an interagency agreement with the superintendent of public instruction to allocate the funding provided in this subsection. Allocation of this money to school districts shall be based on the number of petitions filed. This funding includes amounts school districts may expend on the cost of serving petitions filed under RCW 28A.225.030 by certified mail or by personal service or for the performance of service of process for any hearing associated with RCW 28A.225.030.

(3)(a) $7,313,000 of the general fund—state appropriation for fiscal year 2018 and $7,313,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for distribution to county juvenile court administrators to fund the costs of processing truancy, children in need of services, and at-risk youth petitions. The administrator for the courts, in conjunction with the juvenile court administrators, shall develop an equitable funding distribution formula. The formula shall neither reward counties with higher than average per-petition processing costs nor shall it penalize counties with lower than average per-petition processing costs.

(b) Each fiscal year during the 2017-2019 fiscal biennium, each county shall report the number of petitions processed and the total actual costs of processing truancy, children in need of services, and at-risk youth petitions. Counties shall submit the reports to the administrator for the courts no later than 45 days after the end of the fiscal year. The administrator for the courts shall electronically transmit this information to the chairs and ranking minority members of the house of representatives and senate fiscal committees no later than 60 days after a fiscal year ends. These reports are deemed informational in nature and are not for the purpose of distributing funds.

(4) $12,000,000 of the judicial information systems account—state appropriation is provided solely for the continued implementation of the superior courts case management system. Of the amount appropriated, $8,300,000 is provided solely for expenditures in fiscal year 2018. The remaining appropriation of $3,700,000 is provided solely for expenditures in fiscal year 2019 and shall lapse and remain unexpended if the superior court case management system is not live and fully functional in Cowlitz, Grays Harbor, Klickitat, Mason, Pacific, and Skamania counties by July 1, 2017, and Clallum, Jefferson, Kitsap, Skagit, and Whatcom counties by January 1, 2018.

(5) (($4,339,000)) $4,216,000 of the judicial information systems account—state appropriation is provided solely for the information network hub project.

(6)(a) (($10,000,000)) $2,500,000 of the general fund—state appropriation for fiscal year 2019 and $8,077,000 of the judicial information systems account—state appropriation ((is)) are provided solely for other judicial branch information technology projects, including:

(i) The superior court case management system;

(ii) The appellate court case management system;

(iii) The courts of limited jurisdiction case management system;

(((iii))) (iv) Equipment replacement; and

(((iv))) (v) Support staff for information technology projects.

(b) Expenditures from the judicial information systems account shall not exceed available resources. The office must coordinate with the steering committee for the superior court case management system and the steering committee for the courts of limited jurisdiction case management system to prioritize expenditures for judicial branch information technology projects. For any competitive procurement using amounts appropriated, the office of the chief information officer must review the qualifications and proposed work plan of the apparently successful bidder prior to final selection and review the proposed vendor contract prior to its execution. The office shall not enter into any contract using appropriated amounts that would cause total information technology expenditures to exceed projected resources in the judicial information systems account in the 2019-2021 fiscal biennium.

(7) (($406,000)) $811,000 of the general fund—state appropriation for fiscal year 2018 and (($405,000)) $811,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for the statewide fiscal impact on Thurston county courts. The administrative office of the courts must collaborate with Thurston county to create a new fee formula that accurately represents the state's impact on Thurston county courts.

(8) $53,000 of the general fund—state appropriation for fiscal year 2018 is provided solely for implementation of chapter 272, Laws of 2017 (E2SHB 1163) (domestic violence).

(9) $61,000 of the general fund—state appropriation for fiscal year 2018 and $58,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for implementation of chapter 268, Laws of 2017 (2SHB 1402) (incapacitated persons/rights).

Sec. 113.  2017 3rd sp.s. c 1 s 115 (uncodified) is amended to read as follows:

General Fund—State Appropriation (FY 2018). . . .(($41,558,000))

      $42,129,000

General Fund—State Appropriation (FY 2019). . . .(($42,539,000))

      $43,494,000

Judicial Stabilization Trust Account—State     

Appropriation. . . .(($3,710,000))

      $3,709,000

TOTAL APPROPRIATION. . . .(($87,807,000))

     $89,610,000

The appropriations in this section are subject to the following conditions and limitations:

(1) The amounts provided include funding for expert and investigative services in death penalty personal restraint petitions.

(2) $1,101,000 of the general fund—state appropriation for fiscal year 2018 and $1,101,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for parents representation program costs related to increased parental rights termination filings from the department of social and health services permanency initiative.

(3) $900,000 of the general fund—state appropriation for fiscal year 2018 and $900,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for the purpose of improving the quality of trial court public defense services. The department must allocate these amounts so that $450,000 per fiscal year is distributed to counties, and $450,000 per fiscal year is distributed to cities, for grants under chapter 10.101 RCW.

(4) $2,384,000 of the general fund—state appropriation for fiscal year 2018 and $3,364,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for the office to complete the expansion of the parents representation program in the following counties: Adams, Douglas, Island, Lewis, Lincoln, Okanogan, San Juan, Walla Walla, and the remainder of Pierce.

(5) $490,000 of the general fund—state appropriation for fiscal year 2018 and $490,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for the parents for parents program. Funds must be used to expand services in four new sites, and maintain and improve service models for the current programs in Grays Harbor/Pacific, King, Kitsap, Pierce, Snohomish, Spokane, and Thurston/Mason counties.

(6) $432,000 of the general fund—state appropriation for fiscal year 2018 and $432,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for vendor rate increases. Of the amounts provided in this subsection, $188,000 each fiscal year is provided solely for an increase in the rate for contracted social workers. 

Sec. 114.  2017 3rd sp.s. c 1 s 116 (uncodified) is amended to read as follows:

General Fund—State Appropriation (FY 2018). . . .(($14,855,000))

      $14,833,000

General Fund—State Appropriation (FY 2019). . . .(($16,490,000))

      $17,523,000

Judicial Stabilization Trust Account—State     

Appropriation. . . .$1,463,000

TOTAL APPROPRIATION. . . .(($32,808,000))

     $33,863,000

The appropriations in this section are subject to the following conditions and limitations:

(1) An amount not to exceed $40,000 of the general fund—state appropriation for fiscal year 2018 and an amount not to exceed $40,000 of the general fund—state appropriation for fiscal year 2019 may be used to provide telephonic legal advice and assistance to otherwise eligible persons who are sixty years of age or older on matters authorized by RCW 2.53.030(2) (a) through (k) regardless of household income or asset level.

(2) $1,075,000 of the general fund—state appropriation for fiscal year 2018 and (($2,600,000)) $3,275,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for the office to partially implement the civil legal aid reinvestment plan.

Sec. 115.  2017 3rd sp.s. c 1 s 117 (uncodified) is amended to read as follows:

General Fund—State Appropriation (FY 2018). . . .(($6,406,000))

      $6,216,000

General Fund—State Appropriation (FY 2019). . . .(($5,833,000))

      $7,042,000

TOTAL APPROPRIATION. . . .(($12,239,000))

     $17,934,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $703,000 of the general fund—state appropriation for fiscal year 2018 and $703,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for the office of the education ombuds.

(2) $730,000 of the general fund—state appropriation for fiscal year 2018 is provided solely for implementation of Engrossed Second Substitute House Bill No. 1661 (child, youth, families/department). The amount of state and federal funding to be transferred from the department of social and health services to the department of children, youth, and families for the working connections child care services, administration, and staff must be included in the report required by the bill on how to incorporate the staff responsible for determining eligibility for the working connections child care program into the department of children, youth, and families. If the bill is not enacted by July 31, 2017, the amount provided in this subsection shall lapse.

Sec. 116.  2017 3rd sp.s. c 1 s 118 (uncodified) is amended to read as follows:

General Fund—State Appropriation (FY 2018). . . .(($833,000))

      $807,000

General Fund—State Appropriation (FY 2019). . . .(($859,000))

      $831,000

General Fund—Private/Local Appropriation. . . .$90,000

TOTAL APPROPRIATION. . . .$1,782,000

Sec. 117.  2017 3rd sp.s. c 1 s 119 (uncodified) is amended to read as follows:

General Fund—State Appropriation (FY 2018). . . .(($2,826,000))

      $2,696,000

General Fund—State Appropriation (FY 2019). . . .(($2,872,000))

      $3,970,000

TOTAL APPROPRIATION. . . .(($5,698,000))

     $6,926,000

Sec. 118.  2017 3rd sp.s. c 1 s 120 (uncodified) is amended to read as follows:

General Fund—State Appropriation (FY 2018). . . .(($15,131,000))

      $15,691,000

General Fund—State Appropriation (FY 2019). . . .(($13,465,000))

      $13,554,000

General Fund—Federal Appropriation. . . .$7,801,000

Public Records Efficiency, Preservation, and Access     

Account—State Appropriation. . . .(($9,223,000))

      $9,218,000

Charitable Organization Education Account—State     

Appropriation. . . .$673,000

Local Government Archives Account—State     

Appropriation. . . .(($10,946,000))

      $10,943,000

Election Account—Federal Appropriation. . . .$4,387,000

Washington State Heritage Center Account—State     

Appropriation. . . .(($10,383,000))

      $10,625,000

TOTAL APPROPRIATION. . . .(($72,009,000))

     $73,851,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $3,301,000 of the general fund—state appropriation for fiscal year 2018 is provided solely to reimburse counties for the state's share of primary and general election costs and the costs of conducting mandatory recounts on state measures. Counties shall be reimbursed only for those odd-year election costs that the secretary of state validates as eligible for reimbursement.

(2)(a) $2,932,000 of the general fund—state appropriation for fiscal year 2018 and $3,011,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for contracting with a nonprofit organization to produce gavel-to-gavel television coverage of state government deliberations and other events of statewide significance during the 2017-2019 fiscal biennium. The funding level for each year of the contract shall be based on the amount provided in this subsection. The nonprofit organization shall be required to raise contributions or commitments to make contributions, in cash or in kind, in an amount equal to forty percent of the state contribution. The office of the secretary of state may make full or partial payment once all criteria in this subsection have been satisfactorily documented.

(b) The legislature finds that the commitment of on-going funding is necessary to ensure continuous, autonomous, and independent coverage of public affairs. For that purpose, the secretary of state shall enter into a contract with the nonprofit organization to provide public affairs coverage.

(c) The nonprofit organization shall prepare an annual independent audit, an annual financial statement, and an annual report, including benchmarks that measure the success of the nonprofit organization in meeting the intent of the program.

(d) No portion of any amounts disbursed pursuant to this subsection may be used, directly or indirectly, for any of the following purposes:

(i) Attempting to influence the passage or defeat of any legislation by the legislature of the state of Washington, by any county, city, town, or other political subdivision of the state of Washington, or by the congress, or the adoption or rejection of any rule, standard, rate, or other legislative enactment of any state agency;

(ii) Making contributions reportable under chapter 42.17 RCW; or

(iii) Providing any: (A) Gift; (B) honoraria; or (C) travel, lodging, meals, or entertainment to a public officer or employee.

(3) Any reductions to funding for the Washington talking book and Braille library may not exceed in proportion any reductions taken to the funding for the library as a whole.

(4) $15,000 of the general fund—state appropriation for fiscal year 2018, $15,000 of the general fund—state appropriation for fiscal year 2019, $4,000 of the public records efficiency, preservation and access account, and $2,253,000 of the local government archives account appropriation are provided solely for the implementation of chapter 303, Laws of 2017 (ESHB 1594) (public records administration).

(5) The office of the secretary of state will enter into an agreement with the office of the attorney general to reimburse costs associated with the requirements of chapter 303, Laws of 2017.

Sec. 119.  2017 3rd sp.s. c 1 s 121 (uncodified) is amended to read as follows:

General Fund—State Appropriation (FY 2018). . . .(($289,000))

      $274,000

General Fund—State Appropriation (FY 2019). . . .(($276,000))

      $263,000

TOTAL APPROPRIATION. . . .$565,000

The appropriations in this section are subject to the following conditions and limitations: The office shall assist the department of enterprise services on providing the government-to-government training sessions for federal, state, local, and tribal government employees. The training sessions shall cover tribal historical perspectives, legal issues, tribal sovereignty, and tribal governments. Costs of the training sessions shall be recouped through a fee charged to the participants of each session. The department of enterprise services shall be responsible for all of the administrative aspects of the training, including the billing and collection of the fees for the training.

Sec. 120.  2017 3rd sp.s. c 1 s 122 (uncodified) is amended to read as follows:

General Fund—State Appropriation (FY 2018). . . .(($253,000))

      $243,000

General Fund—State Appropriation (FY 2019). . . .(($263,000))

      $253,000

TOTAL APPROPRIATION. . . .(($516,000))

     $522,000

Sec. 121.  2017 3rd sp.s. c 1 s 123 (uncodified) is amended to read as follows:

State Treasurer's Service Account—State     

Appropriation. . . .(($18,918,000))

     $19,376,000

The appropriation in this section is subject to the following conditions and limitations: $75,000 of the state treasurer's service account—state appropriation is provided solely to establish a task force on public infrastructure and a publicly-owned depository. The task force must examine the scope of financial needs for local governments for constructing public infrastructure; the feasibility of creating a publicly-owned depository to facilitate investment in, and financing of, public infrastructure systems that will increase public health and safety, and leverage the financial capital and resources of Washington state by working in partnership with financial institutions that benefit local communities, or with community-based organizations, economic development organizations, local governments, guaranty agencies, and other stakeholder groups to create jobs and economic opportunities within our state for public benefit.

(1) The task force will consist of one member from each of the two largest caucuses of the senate appointed by the president of the senate; one member from each of the two largest caucuses of the house of representatives appointed by the speaker of the house of representatives; members representing a small sized state-chartered bank, a medium sized state-chartered bank, a federally chartered bank, local governments, and four citizens with a background in financial issues or public infrastructure selected by the president of the senate and the speaker of the house of representatives; and the attorney general, the state auditor, the treasurer, and the governor, or their designees. The task force will ensure that ample opportunity for input from interested stakeholders is provided. The department of commerce, the department of financial institutions, and the treasurer must cooperate with the task force and provide information and assistance at the request of the task force.

(2) The task force will report any recommendations identified by the task force that involve statutory changes, funding recommendations, or administrative action to the legislature as draft legislation by December 1, 2017.

Sec. 122.  2017 3rd sp.s. c 1 s 124 (uncodified) is amended to read as follows:

General Fund—State Appropriation (FY 2018). . . .$28,000

General Fund—State Appropriation (FY 2019). . . .$32,000

State Auditing Services Revolving Account—State     

Appropriation. . . .(($10,219,000))

      $10,216,000

Performance Audit of Government Account—State

Appropriation. . . .(($3,019,000))

      $3,719,000

TOTAL APPROPRIATION. . . .(($13,298,000))

     $13,995,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $774,000 of the performance audit of government account—state appropriation is provided solely for the state auditor's office to conduct a performance audit of the department of health focused on the fee setting for each health profession licensed by the department. The performance audit must include, but is not limited to:

(a) A review of each health profession's process for setting application, licensure, renewal, examination, and indirect fees;

(b) A review of the costs of running each health profession program or board;

(c) An analysis of how any moneys collected as indirect charges levied on a health profession are used by the department; and

(d) A review of any department policies or procedures that have been adopted in an attempt to reduce the fee levels of any of the health professions.

(e) A final report of the performance audit must be submitted to the appropriate legislative policy and fiscal committees by December 1, 2018.

(2) $1,585,000 of the performance audit of government account—state appropriation is provided solely for staff and related costs to verify the accuracy of reported school district data submitted for state funding purposes; conduct school district program audits of state-funded public school programs; establish the specific amount of state funding adjustments whenever audit exceptions occur and the amount is not firmly established in the course of regular public school audits; and to assist the state special education safety net committee when requested.

(3) $667,000 of the performance audits of government account—state appropriation ((for fiscal year 2018)) is provided solely for the state auditor's office to conduct a performance audit of Washington charter public schools to satisfy the requirement to contract for an independent performance audit pursuant to RCW 28A.710.030(2). The final report of the performance audit must be submitted to the appropriate legislative policy committees by ((June 30)) December 31, 2018. The audit must include ((eight)) ten schools currently in ((their first year of)) operation and, subject to the availability of data, must ((address the following questions)) include, but is not limited to evaluating, the following operational and academic outcomes:

(a) Whether the charter school has a charter contract that includes performance provisions based on a performance framework that sets forth academic and operational performance indicators, measures, and metrics;

(b) Whether the charter school performance framework includes indicators, measures, and metrics for student academic proficiency, student academic growth, achievement gaps in both proficiency and growth between major student subgroups, attendance, recurrent enrollment from year to year, financial performance and sustainability, and charter school board compliance with applicable laws, rules and terms of the charter contract; and

(c) Whether the charter school performance framework includes a disaggregation of student performance data by major student subgroups, including gender, race and ethnicity, poverty status, special education status, English language learner status, and highly capable status.

Sec. 123.  2017 3rd sp.s. c 1 s 125 (uncodified) is amended to read as follows:

General Fund—State Appropriation (FY 2018). . . .(($204,000))

      $213,000

General Fund—State Appropriation (FY 2019). . . .(($205,000))

      $218,000

TOTAL APPROPRIATION. . . .(($409,000))

     $461,000

Sec. 124.  2017 3rd sp.s. c 1 s 126 (uncodified) is amended to read as follows:

General Fund—State Appropriation (FY 2018). . . .(($8,641,000))

      $7,837,000

General Fund—State Appropriation (FY 2019). . . .(($8,951,000))

      $8,234,000

General Fund—Federal Appropriation. . . .(($6,969,000))

      $8,945,000

New Motor Vehicle Arbitration Account—State     

Appropriation. . . .$1,145,000

Legal Services Revolving Account—State     

Appropriation. . . .(($245,290,000))

      $250,553,000

Tobacco Prevention and Control Account—State     

Appropriation. . . .$273,000

Medicaid Fraud Penalty Account—State Appropriation. . . .$3,526,000

Public Service Revolving Account—State     

Appropriation. . . .(($2,373,000))

      $2,724,000

Child Rescue Fund—State Appropriation. . . .(($550,000))

      $500,000

Local Government Archives Account—State Appropriation. . . .$660,000

TOTAL APPROPRIATION. . . .(($278,378,000))

     $286,003,000

The appropriations in this section are subject to the following conditions and limitations:

(1) The attorney general shall report each fiscal year on actual legal services expenditures and actual attorney staffing levels for each agency receiving legal services. The report shall be submitted to the office of financial management and the fiscal committees of the senate and house of representatives no later than ninety days after the end of each fiscal year. As part of its by agency report to the legislative fiscal committees and the office of financial management, the office of the attorney general shall include information detailing the agency's expenditures for its agency-wide overhead and a breakdown by division of division administration expenses.

(2) Prior to entering into any negotiated settlement of a claim against the state that exceeds five million dollars, the attorney general shall notify the director of financial management and the chairs of the senate committee on ways and means and the house of representatives committee on appropriations.

(3) The attorney general shall annually report to the fiscal committees of the legislature all new cy pres awards and settlements and all new accounts, disclosing their intended uses, balances, the nature of the claim or account, proposals, and intended timeframes for the expenditure of each amount. The report shall be distributed electronically and posted on the attorney general's web site. The report shall not be printed on paper or distributed physically.

(4) $353,000 of the general fund—state appropriation for fiscal year 2018 and $353,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for a grant to the Washington coalition of crime victim advocates to provide training, certification, and technical assistance for crime victim service center advocates.

(5) $92,000 of the general fund—state appropriation for fiscal year 2018 and $91,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for implementation of chapter 163, Laws of 2017 (SHB 1055) (military members/pro bono).

(6) $49,000 of the legal services revolving account—state appropriation is provided solely for implementation of chapter 268, Laws of 2017 (2SHB 1402) (incapacitated persons/rights).

(7) $276,000 of the general fund—state appropriation for fiscal year 2018 and $259,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for implementation of chapter 294, Laws of 2017 (SSB 5835) (health outcomes/pregnancy).

(8) $22,000 of the legal services revolving account—state appropriation is provided solely for implementation of chapter 295, Laws of 2017 (SHB 1258) (first responders/disability).

(9) $35,000 of the legal services revolving account—state appropriation is provided solely for implementation of chapter 249, Laws of 2017 (ESHB 1714) (nursing staffing/hospitals).

(10) $361,000 of the legal services revolving account—state appropriation and $660,000 of the local government archives account—state appropriation are provided solely for implementation of chapter 303, Laws of 2017 (ESHB 1594) (public records administration).

(11) $40,000 of the general fund—state appropriation for fiscal year 2018 is provided solely for the implementation of chapter 243, Laws of 2017 (HB 1352) (small business owners).

(12) $67,000 of the legal services revolving account—state appropriation is provided solely for the implementation of chapter 320, Laws of 2017 (SSB 5322) (dentists and third parties).

(13) $11,000 of the legal services revolving account—state appropriation is provided solely for the implementation of chapter 53, Laws of 2017 (2SHB 1120) (regulatory fairness act).

Sec. 125.  2017 3rd sp.s. c 1 s 127 (uncodified) is amended to read as follows:

General Fund—State Appropriation (FY 2018). . . .(($1,606,000))

      $1,562,000

General Fund—State Appropriation (FY 2019). . . .(($1,576,000))

      $1,706,000

TOTAL APPROPRIATION. . . .(($3,182,000))

     $3,437,000

The appropriations in this section are subject to the following conditions and limitations:

(1) In addition to caseload forecasts for common schools as defined in RCW 43.88C.010(7), during the 2017-2019 fiscal biennium the council must provide a separate forecast of enrollment for charter schools authorized by chapter 28A.710 RCW.

Sec. 126.  2017 3rd sp.s. c 1 s 128 (uncodified) is amended to read as follows:

General Fund—State Appropriation (FY 2018). . . .(($64,989,000))

      $65,978,000

General Fund—State Appropriation (FY 2019). . . .(($65,634,000))

      $75,191,000

General Fund—Federal Appropriation. . . .(($295,855,000))

      $295,861,000

General Fund—Private/Local Appropriation. . . .(($8,623,000))

      $9,026,000

Public Works Assistance Account—State     

Appropriation. . . .$8,092,000

Drinking Water Assistance Administrative     

Account—State Appropriation. . . .$508,000

Lead Paint Account—State Appropriation. . . .(($238,000))

      $464,000

Building Code Council Account—State Appropriation. . . .$15,000

Home Security Fund Account—State Appropriation. . . .(($48,400,000))

      $48,401,000

Affordable Housing for All Account—State     

Appropriation. . . .$13,867,000

Financial Fraud and Identity Theft Crimes     

Investigation and Prosecution Account—State     

Appropriation. . . .$1,974,000

Low-Income Weatherization and Structural     

Rehabilitation Assistance Account—State     

Appropriation. . . .$1,398,000

Community and Economic Development Fee Account—State     

Appropriation. . . .$4,630,000

Washington Housing Trust Account—State     

Appropriation. . . .(($12,617,000))

      $12,619,000

Prostitution Prevention and Intervention Account—     

State Appropriation. . . .$26,000

Public Facility Construction Loan Revolving     

Account—State Appropriation. . . .(($842,000))

      $843,000

Drinking Water Assistance Account—State

Appropriation. . . .$46,000

Liquor Revolving Account—State Appropriation. . . .(($5,613,000))

      $5,763,000

Energy Freedom Account—State Appropriation. . . .$6,000

Liquor Excise Tax Account—State Appropriation. . . .$665,000

Economic Development Strategic Reserve Account—State

Appropriation. . . .(($5,611,000))

      $2,651,000

Financial Services Regulation Account—State

Appropriation. . . .$468,000

TOTAL APPROPRIATION. . . .(($540,117,000))

     $550,110,000

The appropriations in this section are subject to the following conditions and limitations:

(1) Repayments of outstanding mortgage and rental assistance program loans administered by the department under RCW 43.63A.640 shall be remitted to the department, including any current revolving account balances. The department shall collect payments on outstanding loans, and deposit them into the state general fund. Repayments of funds owed under the program shall be remitted to the department according to the terms included in the original loan agreements.

(2) (($500,000)) $750,000 of the general fund—state appropriation for fiscal year 2018 and (($500,000)) $750,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for a grant to resolution Washington to building statewide capacity for alternative dispute resolution centers and dispute resolution programs that guarantee that citizens have access to low-cost resolution as an alternative to litigation.

(3) $375,000 of the general fund—state appropriation for fiscal year 2018 and $375,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for a grant to the retired senior volunteer program.

(4) The department shall administer its growth management act technical assistance and pass-through grants so that smaller cities and counties receive proportionately more assistance than larger cities or counties.

(5) $375,000 of the general fund—state appropriation for fiscal year 2018 and $375,000 of the general fund—state appropriation for fiscal year 2019 are provided solely as pass-through funding to Walla Walla Community College for its water and environmental center.

(6) (($5,602,000 of the economic development strategic reserve account state appropriation is)) $1,480,000 of the general fund—state appropriation for fiscal year 2018, $1,480,000 of the general fund—state appropriation for fiscal year 2019, and $2,642,000 of the economic development strategic reserve account—state appropriation are provided solely for associate development organizations. During the 2017-2019 fiscal biennium, the department shall consider an associate development organization's total resources when making contracting and fund allocation decisions, in addition to the schedule provided in RCW 43.330.086.

(7) $5,607,000 of the liquor revolving account—state appropriation is provided solely for the department to contract with the municipal research and services center of Washington.

(8)(a) $500,000 of the general fund—state appropriation for fiscal year 2018, $500,000 of the general fund—state appropriation for fiscal year 2019, $24,734,000 of the home security fund—state appropriation, and $8,860,000 of the affordable housing for all account—state appropriation are provided solely for the consolidated homeless grant. Of the amounts appropriated, $5,000,000 is provided solely for emergency assistance to homeless families in the temporary assistance for needy families program.

(b) The department must distribute appropriated amounts from the home security account through performance-based contracts that require, at a minimum, monthly reporting of performance and financial metrics. The contracts must require that auditable documentation for the performance and financial metrics be provided to the joint legislative audit and review committee as requested for performance audits.

(9) $700,000 of the general fund—state appropriation for fiscal year 2018 and (($700,000)) $1,436,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for the department to identify and invest in strategic growth areas, support key sectors, and align existing economic development programs and priorities. The department must consider Washington's position as the most trade-dependent state when identifying priority investments. The department must engage states and provinces in the northwest as well as associate development organizations, small business development centers, chambers of commerce, ports, and other partners to leverage the funds provided. For each dollar expended, the department must receive a one hundred percent match. The match may be provided by the department through nongeneral fund sources, or any partnering governments or organizations. Sector leads established by the department must include the industries of: (a) Tourism; (b) agriculture, wood products, and other natural resource industries; and (c) clean technology and renewable and nonrenewable energy. The department may establish these sector leads by hiring new staff, expanding the duties of current staff, or working with partner organizations and or other agencies to serve in the role of sector lead.

(10) The department is authorized to require an applicant to pay an application fee to cover the cost of reviewing the project and preparing an advisory opinion on whether a proposed electric generation project or conservation resource qualifies to meet mandatory conservation targets.

(11) Within existing resources, the department shall provide administrative and other indirect support to the developmental disabilities council.

(12) $150,000 of the general fund—state appropriation for fiscal year 2018 and $150,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for the expansion of the current long-term care ombuds program to meet the immediate needs of individuals by advocating on behalf of and protecting residents of long-term care facilities from abuse, neglect, and exploitation.

(13) Within existing resources, the department of commerce shall consult with key crime victim services stakeholders to inform decisions about the funding distribution for federal fiscal years 2017-2019 victims of crime act victim assistance funding. These stakeholders must include, at a minimum, children's advocacy centers of Washington, Washington association of prosecuting attorneys, Washington association of sheriffs and police chiefs, Washington coalition against domestic violence, Washington coalition of sexual assault programs, Washington coalition of crime victim advocates, at least one representative from a child health coalition, and other organizations as determined by the department. Funding distribution considerations shall include, but are not limited to, geographic distribution of services, underserved populations, age of victims, best practices, and the unique needs of individuals, families, youth, and children who are victims of crime.

(14) $643,000 of the liquor excise tax account—state appropriation is provided solely for the department of commerce to provide fiscal note assistance to local governments.

(15) $300,000 of the general fund—state appropriation for fiscal year 2018 and $300,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for the northwest agriculture business center.

(16) $150,000 of the general fund—state appropriation for fiscal year 2018 and $150,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for the regulatory roadmap program for the construction industry and to identify and coordinate with businesses in key industry sectors to develop additional regulatory roadmap tools.

(17) $1,000,000 of the general fund—state appropriation for fiscal year 2018 and $1,000,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for the Washington new Americans program. The department may require a cash match or in-kind contributions to be eligible for state funding.

(18) $94,000 of the general fund—state appropriation for fiscal year 2018 and $253,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for implementation of chapter 268, Laws of 2017 (2SHB 1402) (incapacitated persons/rights).

(19) $60,000 of the general fund—state appropriation for fiscal year 2018 is provided solely as a grant to the Hoh Indian tribe for critical infrastructure, including a backup electrical power generator to address recurrent power outages in the community.

(20) $100,000 of the general fund—state appropriation for fiscal year 2018 and $100,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for capacity-building grants through the Latino community fund to promote and improve education, economic empowerment, arts and culture, civic engagement, health, and environmental justice for Latino communities in Washington state.

(21) $643,000 of the general fund—state appropriation for fiscal year 2018 and $643,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for the department to contract with a private, nonprofit organization to provide developmental disability ombuds services.

(22) $39,000 of the general fund—state appropriation for fiscal year 2018 and $39,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for implementation of chapter 290, Laws of 2017 (ESHB 1109) (victims of sexual assault).

(23) $1,000,000 of the home security fund—state appropriation, $2,000,000 of the Washington housing trust account—state appropriation, and $1,000,000 of the affordable housing for all account—state appropriation are provided solely for the department of commerce for services to homeless families and youth through the Washington youth and families fund.

(24)(a) $500,000 of the general fund—state appropriation for fiscal year 2018, $500,000 of the general fund—state appropriation for fiscal year 2019, and $2,500,000 of the home security fund—state appropriation are provided solely for the office of homeless youth prevention and protection programs to:

(i) Contract with other public agency partners to test innovative program models that prevent youth from exiting public systems into homelessness; and

(ii) Support the development of an integrated services model, increase performance outcomes, and ensure providers have the necessary skills and expertise to effectively operate youth programs.

(b) Of the amounts provided in this subsection, $1,750,000 is provided solely for the department to decrease homelessness of youth under 18 years of age though increasing shelter capacity statewide with preference given to increasing the number of contracted HOPE beds and crisis residential center beds.

(c) The department must distribute appropriated amounts from the home security account through performance-based contracts that require, at a minimum, monthly reporting of performance and financial metrics. The contracts must require that auditable documentation for the performance and financial metrics be provided to the joint legislative audit and review committee as requested for performance audits.

(25) $140,000 of the general fund—state appropriation for fiscal year 2018 and $140,000 of the general fund—state appropriation for fiscal year 2019 are provided solely to create a behavioral health supportive housing administrator within the department to coordinate development of effective behavioral health housing options and services statewide to aide in the discharge of individuals from the state psychiatric hospitals. This position must work closely with the health care authority, department of social and health services, and other entities to facilitate linkages among disparate behavioral health community bed capacity-building efforts. This position must work to integrate building infrastructure capacity with ongoing supportive housing benefits, and must also develop and maintain a statewide inventory of mental health community beds by bed type.

(26)(a) $1,000,000 of the home security fund—state appropriation for fiscal year 2018 and $1,000,000 of the home security fund—state appropriation for fiscal year 2019 are provided solely to administer the grant program required in chapter 43.185C RCW, linking homeless students and their families with stable housing.

(b) The department must distribute appropriated amounts from the home security account through performance-based contracts that require, at a minimum, monthly reporting of performance and financial metrics. The contracts must require that auditable documentation for the performance and financial metrics be provided to the joint legislative audit and review committee as requested for performance audits.

(27) $990,000 of the general fund—state appropriation for fiscal year 2018 and $1,980,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for 150 community beds for individuals with a history of mental illness. Currently, there is little to no housing specific to populations with these co-occurring disorders; therefore, the department must consider how best to develop new bed capacity in combination with individualized support services, such as intensive case management and care coordination, clinical supervision, mental health, substance abuse treatment, and vocational and employment services. Case-management and care coordination services must be provided. Increased case-managed housing will help to reduce the use of jails and emergency services and will help to reduce admissions to the state psychiatric hospitals. The department must coordinate with the health care authority and the department of social and health services in establishing conditions for the awarding of these funds. The department must contract with local entities to provide a mix of (a) shared permanent supportive housing; (b) independent permanent supportive housing; and (c) low and no-barrier housing beds for people with a criminal history, substance abuse disorder, and/or mental illness.

Priority for permanent supportive housing must be given to individuals on the discharge list at the state psychiatric hospitals or in community psychiatric inpatient beds whose conditions present significant barriers to timely discharge.

(28) $557,000 of the general fund—state appropriation for fiscal year 2018 and $557,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for the department to design and administer the achieving a better life experience program.

(29) $512,000 of the general fund—state appropriation for fiscal year 2018 is provided solely to complete the requirements of the agricultural labor skills and safety grant program in chapter 43.330 RCW. This program expires July 1, 2018.

(30) $150,000 of the general fund—state appropriation for fiscal year 2018 and $150,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for the implementation of chapter 225, Laws of 2017 (SSB 5713) (skilled worker program).

(31) $50,000 of the general fund—state appropriation for fiscal year 2018 and $50,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for the wildfire project in the Wenatchee valley to provide public education on wildfire and forest health issues.

(32) $167,000 of the general fund—state appropriation for fiscal year 2018 and $167,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for community mobilization grants to safe Yakima and safe streets of Tacoma to foster community engagement through neighborhood organizing, law enforcement-community partnerships, neighborhood watch programs, youth mobilization, and business engagement.

(33)(a) $83,000 of the general fund—state appropriation for fiscal year 2018 and (($83,000)) $133,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for the department to create el nuevo camino pilot project for the purpose of addressing serious youth gang problems in midsize counties in eastern Washington. El nuevo camino pilot project must include one grant to an eligible applicant for the 2017-2019 fiscal biennium. The department shall adopt policies and procedures as necessary to administer the pilot project, including the application process, disbursement of the grant award to the selected applicant, and tracking compliance and measuring outcomes. Partners, grant recipients, prosecutors, mental health practitioners, schools, and other members of the el nuevo camino pilot project, shall ensure that programs, trainings, recruiting, and other operations for el nuevo camino pilot project prohibit discriminatory practices, including biased treatment and profiling of youth or their communities. For the purposes of this subsection, antidiscriminatory practices prohibit grant recipients or their partners from using factors such as race, ethnicity, national origin, immigration or citizenship status, age, religion, gender, gender identity, gender expression, sexual orientation, and disability in guiding or identifying affected populations.

(b) An eligible applicant:

(i) Is a county located in Washington or its designee;

(ii) Is located east of the Cascade mountain range with an estimated county population between ninety thousand and one hundred thousand as of January 1, 2017;

(iii) Has an identified gang problem;

(iv) Pledges and provides a minimum of sixty percent of matching funds over the same time period of the grant;

(v) Has established a coordinated effort with committed partners, including law enforcement, prosecutors, mental health practitioners, and schools;

(vi) Has established goals, priorities, and policies in compliance with the requirements of (c) of this subsection; and

(vii) Demonstrates a clear plan to engage in long-term antigang efforts after the conclusion of the pilot project.

(c) The grant recipient must:

(i) Work to reduce youth gang crime and violence by implementing the comprehensive gang model of the federal juvenile justice and delinquency prevention act of 1974;

(ii) Increase mental health services to unserved and underserved youth by implementing the best practice youth mental health model of the national center for mental health and juvenile justice;

(iii) Work to keep high-risk youth in school, reenroll dropouts, and improve academic performance and behavior by engaging in a grass roots team approach in schools with the most serious youth violence and mental health problems, which must include a unique and identified team in each district participating in the project;

(iv) Hire a project manager and quality assurance coordinator;

(v) Adhere to recommended quality control standards for Washington state research-based juvenile offender programs as set forth by the Washington state institute for public policy; and

(vi) Report to the department by September 1, 2019, with the following:

(A) The number of youth and adults served through the project and the types of services accessed and received;

(B) The number of youth satisfactorily completing chemical dependency treatment in the county;

(C) The estimated change in domestic violence rates;

(D) The estimated change in gang participation and gang violence;

(E) The estimated change in dropout and graduation rates;

(F) The estimated change in overall crime rates and crimes typical of gang activity;

(G) The estimated change in recidivism for youth offenders in the county; and

(H) Other information required by the department or otherwise pertinent to the pilot project.

(d) The department shall report the information from (c)(vi) of this subsection and other relevant data to the legislature and the governor by October 1, 2019.

(34)(a) During the 2017-2019 fiscal biennium, the department must revise its agreements and contracts with vendors to include a provision to require that each vendor agrees to equality among its workers by ensuring similarly employed individuals are compensated as equals as follows:

(i) Employees are similarly employed if the individuals work for the same employer, the performance of the job requires comparable skill, effort, and responsibility, and the jobs are performed under similar working conditions. Job titles alone are not determinative of whether employees are similarly employed;

(ii) Vendors may allow differentials in compensation for its workers based in good faith on any of the following:

(A) A seniority system; a merit system; a system that measures earnings by quantity or quality of production; a bona fide job-related factor or factors; or a bona fide regional difference in compensation levels.

(B) A bona fide job-related factor or factors may include, but not be limited to, education, training, or experience, that is: Consistent with business necessity; not based on or derived from a gender-based differential; and accounts for the entire differential.

(C) A bona fide regional difference in compensation level must be: Consistent with business necessity; not based on or derived from a gender-based differential; and account for the entire differential.

(b) The provision must allow for the termination of the contract if the department or department of enterprise services determines that the vendor is not in compliance with this agreement or contract term.

(c) The department must implement this provision with any new contract and at the time of renewal of any existing contract.

(35) $102,000 of the general fund—state appropriation for fiscal year 2018 and $75,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for the implementation of chapter 315, Laws of 2017 (ESB 5128) (incremental energy).

(36) $26,000 of the general fund—state appropriation for fiscal year 2018 and $12,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for the implementation of chapter 279, Laws of 2017 (SHB 1988) (vulnerable youth guardians).

(37) $468,000 of the financial services regulation account—state appropriation is provided solely for the family prosperity account program.

(38) The department is authorized to suspend issuing any nonstatutorily required grants or contracts of an amount less than $1,000,000 per year.

(39) The entire home security account appropriation in this section is provided solely for administration through performance-based contracts that require, at a minimum, monthly reporting of performance and financial metrics. The contracts must require that auditable documentation for the performance and financial metrics be provided to the joint legislative audit and review committee as requested for performance audits.

(40)(a) $250,000 of the public works assistance account—state appropriation is provided solely for the department to contract with a consultant to study strategies for increasing the competitiveness of rural businesses in securing local government contracts within their same rural county, and for providing outreach services to employers in rural communities. The consultant must:

(i) Be a 501(c)(3) nonprofit organization;

(ii) Be located in a county with a population of less than two million; and

(iii) Provide statewide business representation and expertise with relevant experience in the evaluation of rural economies.

(b) The study must include the following:

(i) An analysis of the net economic and employment impacts to rural communities of awarding local government contracts to businesses outside the rural county in comparison to awarding local government contracts to businesses based in the same rural county;

(ii) A survey of local government entities to collect relevant data to include but not be limited to: The total number and amount of contracts awarded in 2015 and 2016 by local governments in rural counties; the number and amount of contracts awarded to businesses based in rural counties in comparison to the number and amounts awarded to businesses based in nonrural counties; the number of contracts where a rural business responded to a request for proposal but was not the minimum bidder; the percentage spread between the rural business and the lowest bidder; and the number of times the local government moved to the next most qualified bidder in a request for qualification out of the total professional service contracts awarded;

(iii) A review of current regulations and best practices in other jurisdictions. The study must identify existing policy barriers, if present, and potential policy changes to increase the competitiveness of rural businesses in securing local government contracts within their same geographic region, including but not be limited to the risks and benefits of establishing a preference for local businesses for rural government contracts; and

(iv) Discussion on the implications for projects that receive federal funding.

The study must be provided to the office of financial management and fiscal committees of the legislature by December 31, 2017.

(c) The department's external relations division must expand existing outreach services offered to rural employers to include training on processes to compete effectively for public works contracts within their communities. The external relations division must receive training on contract law to better support their outreach services. The cost of the training may not exceed $10,000.

(41) $40,000 of the general fund—state appropriation for fiscal year 2018 and $40,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for the Federal Way day center to provide housing and other assistance to persons over 18 experiencing homelessness.

(42) $200,000 of the general fund—state appropriation for fiscal year 2018 and $200,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for implementation of Second Substitute Senate Bill No. 5254 (buildable lands and zoning). If this bill is not enacted by July 31, 2017, the amounts provided in this subsection shall lapse.

(43) $700,000 of the general fund—state appropriation for fiscal year 2018 and $600,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for staff and upgrades to the homeless management information system.

(44) $50,000 of the general fund—state appropriation for fiscal year 2018 is provided solely for the department to conduct a study on the current state of data center industry in Washington and whether changes to existing state policies would result in additional investment and job creation in Washington as well as advance the development of the state's technology ecosystems. The study is due to the appropriate committees of the legislature by December 1, 2017.

(45) $500,000 of the general fund—state appropriation for 2018 is provided solely for the department to formulate a statewide tourism marketing plan in collaboration with a nonprofit statewide tourism organization as provided in Substitute Senate Bill No. 5251.

(46) $80,000 of the general fund—state appropriation for fiscal year 2018 and $80,000 of the general fund—state appropriation for fiscal year 2019 is provided solely as a grant to Klickitat county for a land use planner to process a backlog of permits that have not been processed by the Columbia river gorge commission due to lack of funds.

Sec. 127.  2017 3rd sp.s. c 1 s 129 (uncodified) is amended to read as follows:

General Fund—State Appropriation (FY 2018). . . .(($850,000))

      $799,000

General Fund—State Appropriation (FY 2019). . . .(($905,000))

      $854,000

Lottery Administrative Account—State Appropriation. . . .$50,000

TOTAL APPROPRIATION. . . .$1,805,000

Sec. 128.  2017 3rd sp.s. c 1 s 130 (uncodified) is amended to read as follows:

General Fund—State Appropriation (FY 2018). . . .(($11,711,000))

      $12,572,000

General Fund—State Appropriation (FY 2019). . . .(($11,956,000))

      $12,476,000

General Fund—Federal Appropriation. . . .$39,716,000

General Fund—Private/Local Appropriation. . . .(($501,000))

      $843,000

Economic Development Strategic Reserve Account—State     

Appropriation. . . .$314,000

Personnel Service Fund—State Appropriation. . . .(($8,882,000))

      $8,888,000

Higher Education Personnel Services Account—State     

Appropriation. . . .$1,497,000

Performance Audits of Government Account—State     

Appropriation. . . .$621,000

Statewide Information Technology System Development

Revolving Account—State Appropriation. . . .(($6,503,000))

      $10,022,000

OFM Central Services—State Appropriation. . . .(($19,237,000))

      $19,308,000

TOTAL APPROPRIATION. . . .(($100,938,000))

     $108,780,000

The appropriations in this section are subject to the following conditions and limitations:

(1) The appropriations in this section represent a transfer of expenditure authority of $4,000,000 of the general fund—federal appropriation from the health care authority to the office of financial management to implement chapter 246, Laws of 2015 (all-payer health care claims database).

(2)(a) The student achievement council and all institutions of higher education eligible to participate in the state need grant shall ensure that data needed to analyze and evaluate the effectiveness of the state need grant program are promptly transmitted to the education data center so that it is available and easily accessible. The data to be reported must include but not be limited to:

(i) The number of state need grant recipients;

(ii) The number of students on the unserved waiting list of the state need grant;

(iii) Persistence and completion rates of state need grant recipients and students on the state need grant unserved waiting list, disaggregated by institutions of higher education;

(iv) State need grant recipients and students on state need grant unserved waiting list grade point averages; and

(v) State need grant program costs.

(b) The student achievement council shall submit student unit record data for the state need grant program applicants and recipients to the education data center.

(3) $149,000 of the general fund—state appropriation for fiscal year 2018 and $144,000 of the general fund—state appropriation for fiscal year 2019 are provided solely to implement chapter 172, Laws of 2017 (SHB 1741) (educator preparation data/PESB).

(4) $84,000 of the general fund—state appropriation for fiscal year 2018 and $75,000 of the general fund—state appropriation for fiscal year 2019 are provided solely to implement chapter 53, Laws of 2017 (2SHB 1120) (regulatory fairness act).

(5) The office of financial management must perform a legal and policy review of whether the lead organization of the statewide health claims database established in chapter 43.371 RCW may collect certain data from drug manufacturers and use this data to bring greater public transparency to prescription drug prices. Specifically, the review must analyze whether the organization may collect and use manufacturer's pricing data on high-cost new and existing prescription drugs, including itemized production and sales data and Canadian pricing. The office of financial management must report by December 15, 2017, to the health care committees of the legislature the results of the study and any necessary legislation to authorize the collection of pricing data and to produce public analysis and reports that help promote prescription drug transparency.

(6) $500,000 of the general fund—state appropriation for fiscal year 2018, $131,000 of the general fund—state appropriation for fiscal year 2019, and $139,000 of the personnel service account—state appropriation are provided solely for implementation of Engrossed Second Substitute House Bill No. 1661 (children, youth, families department). The cost allocation contract must include a determination of the amount of administrative funding to be transferred between appropriations in sections 223(1) and 223(2) of this act to section 222(3) of this act for the new department of children, youth, and families. If the bill is not enacted by July 31, 2017, the amounts provided in this subsection shall lapse.

(7) (($4,503,000)) $8,022,000 of the statewide information technology system development revolving account—state appropriation is provided solely for readiness activities related to the One Washington replacement project to modernize and improve administrative systems and related business processes across state government over a multi-biennia time period and this project is subject to the conditions, limitations, and review provided in section 724 of this act. The funding provided in this subsection is for conducting business warehouse planning and system integrations and contracting with a strategic partner for the design of the long-term program blueprint detailing the readiness, planning, and implementation activities related to this project. Legislative expectation is that the strategic partner selected for this design of this long-term blueprint will have proven experience in successfully managing similar efforts in other states or jurisdictions and that the ultimate project scope will integrate performance information and provide information on discrete units of costs for state governmental activities with the goal of improved management and efficiency. The office of financial management will provide the needed management support for this design effort and will ensure that state agencies fully participate in this initial design effort, including the office of chief information officer. The office of financial management will provide quarterly reports to the legislative fiscal committees and the legislative evaluation and accountability program committee. Before submitting additional funding requests for this project, the office of financial management will submit a comprehensive detailed feasibility study and financial plan for the project to the legislative evaluation and accountability program committee.

(8) $4,000,000 of the general fund—federal appropriation is provided solely for the procurement and implementation of the Washington state all payer claims database project and this project is subject to the conditions, limitations, and review provided in section 724 of this act.

(9) $140,000 of the general fund—state appropriation for fiscal year 2018 and $140,000 of the general fund—federal appropriation are provided solely for the authority to incorporate long-term inpatient care as defined in RCW 71.24.025 into the psychiatric managed care capitation risk model. The model shall be submitted to the governor and appropriate committees of the legislature by December 1, 2017. The model must integrate civil inpatient psychiatric hospital services including ninety and one hundred eighty day commitments provided in state hospitals or community settings into medicaid managed care capitation rates and nonmedicaid contracts. The model should phase-in the financial risk such that managed care organizations bear full financial risk for long-term civil inpatient psychiatric hospital commitments beginning January 2020. The model must address strategies to ensure that the state is able to maximize the state's allotment of federal disproportionate share funding.

(10) The office of financial management will convene a work group consisting of the department of social and health services and appropriate fiscal and policy staff from the house of representatives office of program research and senate committee services for the purpose of reviewing language traditionally added to section 201 in supplemental operating omnibus appropriations acts to allow the department to transfer moneys between sections of the act and to allow for moneys that are provided solely for a specified purpose to be used for other than that purpose. The work group will review the department's use of the language, develop options to reduce or eliminate the need for this language, and explore revisions to the language. The work group must also discuss alternatives to the language to achieve the shared goal of balancing expenditures to appropriation while preserving the legislature's ability to direct policy through appropriation. Alternatives should include increased use of supplemental budget decision packages, the creation of a reserve fund for unanticipated expenditures, and other measures the work group develops.

(11) Within existing resources, the labor relations section shall produce a report annually on workforce data and trends for the previous fiscal year. At a minimum, the report must include a workforce profile; information on employee compensation, including salaries and cost of overtime; and information on retention, including average length of service and workforce turnover.

Sec. 129.  2017 3rd sp.s. c 1 s 131 (uncodified) is amended to read as follows:

Administrative Hearings Revolving Account—State     

Appropriation. . . .(($38,898,000))

      $41,135,000

Sec. 130.  2017 3rd sp.s. c 1 s 132 (uncodified) is amended to read as follows:

Lottery Administrative Account—State     

Appropriation. . . .(($28,028,000))

      $28,050,000

The appropriation in this section is subject to the following conditions and limitations:

(1) No portion of this appropriation may be used for acquisition of gaming system capabilities that violate state law.

(2) Pursuant to RCW 67.70.040, the commission shall take such action necessary to reduce by $6,000,000 each fiscal year the total amount of compensation paid to licensed lottery sales agents. It is anticipated that the result of this action will reduce retail commissions to an average of 5.1 percent of sales.

NEW SECTION.  Sec. 131.  A new section is added to 2017 3rd sp.s. c 1 (uncodified) to read as follows:

Gambling Revolving Account—State. . . .$100,000

The appropriation in this section is subject to the following conditions and limitations: $100,000 of the gambling revolving account—state appropriation is provided solely for the gambling commission to contract for a study on problem gambling to determine the scope of pathological or problem gambling in the state. The gambling commission shall submit results of the study to the legislature by December 31, 2018. The study shall include, but not be limited to identifying:

(1) The prevalence of gambling-related problems among the adult and juvenile populations in Washington State;

(2) Which populations are most impacted by problem gambling;

(3) Services offered for individuals with gambling-related problems;

(4) Funding available for problem gambling programs and services; and

(5) Any deficit related to in-state problem gambling funding, services, or programs based on the calculated need determined in the study.

Sec. 132.  2017 3rd sp.s. c 1 s 133 (uncodified) is amended to read as follows:

General Fund—State Appropriation (FY 2018). . . .(($258,000))

      $255,000

General Fund—State Appropriation (FY 2019). . . .(($268,000))

      $255,000

TOTAL APPROPRIATION. . . .(($526,000))

     $536,000

Sec. 133.  2017 3rd sp.s. c 1 s 134 (uncodified) is amended to read as follows:

General Fund—State Appropriation (FY 2018). . . .(($268,000))

      $269,000

General Fund—State Appropriation (FY 2019). . . .(($254,000))

      $242,000

TOTAL APPROPRIATION. . . .(($522,000))

     $537,000

Sec. 134.  2017 3rd sp.s. c 1 s 135 (uncodified) is amended to read as follows:

Department of Retirement Systems Expense

Account—State Appropriation. . . .(($56,498,000))

      $57,921,000

Sec. 135.  2017 3rd sp.s. c 1 s 136 (uncodified) is amended to read as follows:

General Fund—State Appropriation (FY 2018). . . .(($140,954,000))

      $129,868,000

General Fund—State Appropriation (FY 2019). . . .(($138,496,000))

      $130,864,000

Timber Tax Distribution Account—State     

Appropriation. . . .(($6,772,000))

      $6,773,000

Waste Reduction/Recycling/Litter Control—State     

Appropriation. . . .$157,000

State Toxics Control Account—State Appropriation. . . .$112,000

Business License Account—State Appropriation. . . .(($28,211,000))

      $22,907,000

Performance Audits of Government Account—State

Appropriation. . . .$4,640,000

Financial Services Regulation Account—State

Appropriations. . . .$5,000,000

TOTAL APPROPRIATION. . . .(($324,342,000))

     $313,809,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $5,628,000 of the general fund—state appropriation for fiscal year 2018, $5,628,000 of the general fund—state appropriation for fiscal year 2019, and $11,257,000 of the business license account—state appropriation are provided solely for the taxpayer legacy system replacement project.

(((3))) (2) Prior to the suspension of the streamlined sales tax mitigation program established under chapter 82.14 RCW, the department must analyze if and when expected revenue gains from the provisions of sections 201 through 213 of House Bill No. 2163 will be equal to or exceed revenue losses to local taxing districts, as measured under the streamlined sales tax mitigation system from the switch to destination sourcing of sales tax. The analysis must include a comprehensive review of tax, wage, census, and economic data. The review must consider online sales tax and streamlined sales tax mitigation trends for areas with rich concentrations of warehousing distribution and manufacturing centers. The department must provide a report and recommendations to the governor and appropriate committees of the legislature by November 1, 2018. If House Bill No. 2163 (revenue) is not enacted by July 31, 2017, this subsection is void.

(((4))) (3) $8,028,000 of the general fund—state appropriation for fiscal year 2018 and $6,304,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for the implementation of House Bill No. 2163 (revenue). If the bill is not enacted by July 31, 2017, the amounts provided in this subsection shall lapse.

Sec. 136.  2017 3rd sp.s. c 1 s 137 (uncodified) is amended to read as follows:

General Fund—State Appropriation (FY 2018). . . .(($1,409,000))

      $1,387,000

General Fund—State Appropriation (FY 2019). . . .(($1,438,000))

      $1,625,000

TOTAL APPROPRIATION. . . .(($2,847,000))

     $3,174,000

Sec. 137.  2017 3rd sp.s. c 1 s 139 (uncodified) is amended to read as follows:

General Fund—Federal Appropriation. . . .$4,615,000

Insurance Commissioners Regulatory Account—State     

Appropriation. . . .(($59,548,000))

      $60,524,000

TOTAL APPROPRIATION. . . .(($64,163,000))

     $65,139,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $48,000 of the insurance commissioners regulatory account—state appropriation is provided solely for implementation of chapter 103, Laws of 2017 (EHB 1450) (title insurance rating orgs.).

(2) $12,000 of the insurance commissioners regulatory account—state appropriation is provided solely for implementation of chapter 49, Laws of 2017 (SHB 1027) (surplus line broker licenses).

Sec. 138.  2017 3rd sp.s. c 1 s 140 (uncodified) is amended to read as follows:

State Investment Board Expense Account—State     

Appropriation. . . .(($48,916,000))

      $48,908,000

Sec. 139.  2017 3rd sp.s. c 1 s 141 (uncodified) is amended to read as follows:

Dedicated Marijuana Fund—State Appropriation

(FY 2018). . . .(($10,400,000))

      $10,382,000

Dedicated Marijuana Fund—State Appropriation

(FY 2019). . . .(($9,596,000))

      $10,620,000

Liquor Revolving Account—State Appropriation. . . .(($69,578,000))

      $69,420,000

General Fund—Federal Appropriation. . . .$2,912,000

General Fund—State Appropriation (FY 2018). . . .(($372,000))

      $334,000

General Fund—State Appropriation (FY 2019). . . .(($393,000))

      $353,000

General Fund—Private/Local Appropriation. . . .$50,000

TOTAL APPROPRIATION. . . .(($93,301,000))

     $94,149,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $11,000 of the liquor revolving account—state appropriation is provided solely for the implementation of chapter 96, Laws of 2017 (E2SHB 1351) (sale of spirits, beer and wine).

(2) The liquor and cannabis board may require electronic payment of the marijuana excise tax levied by RCW 69.50.535. The liquor and cannabis board may allow a waiver to the electronic payment requirement for good cause as provided by rule.

(3) $1,420,000 of the dedicated marijuana account—state appropriation for fiscal year 2018 and $885,000 of the dedicated marijuana account—state appropriation for fiscal year 2019 are provided solely for the marijuana traceability system used to track the production, processing, and retail sale of each marijuana product as it moves through the regulated recreational and medical marketplace. The board may accept a proposal for a traceability system that is less than the amounts appropriated within this section if the proposal meets the board's requirements. The traceability system is subject to the conditions, limitations, and review provided in section 724 ((of this act)), chapter 1, Laws of 2017 3rd sp. sess.

(4) $93,000 of the general fund—state appropriation for fiscal year 2018 and $70,000 of the general fund—state appropriation for fiscal year 2019 are provided solely to implement and enforce vapor products licensing, packaging, and sales regulations pursuant to chapter 38, Laws of 2016 (ESSB 6328).

(5) Within existing resources, the state liquor and cannabis board shall establish a way by which any inspection or approval of a marijuana processor's professional closed loop systems, equipment, extraction operation, and facilities, may be performed by a qualified person or entity other than a local fire code official, in the event that a local fire code official does not perform such an inspection or approval as required by state liquor and cannabis board rule.

Sec. 140.  2017 3rd sp.s. c 1 s 142 (uncodified) is amended to read as follows:

General Fund—Private/Local Appropriation. . . .$16,464,000

Public Service Revolving Account—State     

Appropriation. . . .(($40,248,000))

      $40,240,000

Pipeline Safety Account—State Appropriation. . . .(($3,412,000))

      $3,411,000

Pipeline Safety Account—Federal Appropriation. . . .$3,072,000

TOTAL APPROPRIATION. . . .(($63,196,000))

     $63,187,000

The appropriations in this section are subject to the following conditions and limitations:

(1) By December 31, 2017, the commission shall report findings and recommendations to the energy committees of the legislature on best practices and policies for electric utilities to develop distributed energy resource plans, applying the traditional utility regulatory principles of fairness, efficiency, reliability, and revenue stability. The report must address: A review of policies and practices for distributed energy resource planning in other states, an inventory of current utility distribution planning practices and capabilities in Washington, and recommendations for using distributed energy resource planning to inform utility integrated resource plans.

(2) $2,093,000 of the public service revolving account—state appropriation is provided solely for the commission to cover the costs of moving its offices to a new location, in cooperation with the department of enterprise services.

Sec. 141.  2017 3rd sp.s. c 1 s 143 (uncodified) is amended to read as follows:

General Fund—State Appropriation (FY 2018). . . .(($7,676,000))

      $7,015,000

General Fund—State Appropriation (FY 2019). . . .(($7,910,000))

      $8,828,000

General Fund—Federal Appropriation. . . .(($118,521,000))

      $117,248,000

Enhanced 911 Account—State Appropriation. . . .(($51,857,000))

      $53,470,000

Disaster Response Account—State Appropriation. . . .(($29,433,000))

      $42,249,000

Disaster Response Account—Federal Appropriation. . . .(($81,560,000))

      $118,587,000

Military Department Rent and Lease Account—State     

Appropriation. . . .$615,000

Worker and Community Right-to-Know Account—State     

Appropriation. . . .$2,339,000

Oil Spill Prevention Account—State Appropriation. . . .$1,028,000

TOTAL APPROPRIATION. . . .(($300,939,000))

     $352,622,000

The appropriations in this section are subject to the following conditions and limitations:

(1) The military department shall submit a report to the office of financial management and the legislative fiscal committees on October 1st and February 1st of each year detailing information on the disaster response account, including: (a) The amount and type of deposits into the account; (b) the current available fund balance as of the reporting date; and (c) the projected fund balance at the end of the 2017-2019 biennium based on current revenue and expenditure patterns.

(2) $40,000,000 of the general fund—federal appropriation is provided solely for homeland security, subject to the following conditions: Any communications equipment purchased by local jurisdictions or state agencies shall be consistent with standards set by the Washington state interoperability executive committee.

(3) $100,000 of the general fund—state appropriation for fiscal year 2018 and $100,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for the conditional scholarship program pursuant to chapter 28B.103 RCW.

(4) (($5,389,000)) $1,582,000 of the general fund—state appropriation for fiscal year 2019 and $8,007,000 of the enhanced 911 account—state appropriation ((is)) are provided solely for transitioning to an internet protocol based next generation 911 network and increased network costs during the transition and hardware required for the new system. The department's activities and procurement is a major information technology project subject to oversight and review by the office of the chief information officer.

(5) $11,000,000 of the enhanced 911 account—state appropriation is provided solely for financial assistance to counties.

(6) $2,000,000 of the enhanced 911 account—state appropriation is provided solely for one-time grants to small and medium-sized, rural counties for replacement of equipment necessary to maintain 911 service after the state's transition to a next generation 911 system, including reimbursement of replacement and upgrades that have already been made.

(7) $784,000 of the disaster response account—state appropriation is provided solely for fire suppression training ((and)), equipment, and supporting costs to national guard soldiers and airmen.

(8) $38,000 of the enhanced 911 account—state appropriation is provided solely for implementation of chapter 295, Laws of 2017 (SHB 1258) (first responders/disability).

(9) $372,000 of the disaster response account—state appropriation is provided solely for implementation of chapter 312, Laws of 2017 (SSB 5046) (language of public notices).

(10) Appropriations provided to the department are sufficient to fund the administrative costs associated with implementation of chapter 173, Laws of 2017 (E2SHB 1802) (veterans/shared leave access).

(11) (($951,000)) $421,000 of the disaster response account—state appropriation is provided solely to Okanogan and Ferry counties to continue to address deficiencies within their communications infrastructure for 911 dispatch. Funding will be used to replace failing radio dispatching hardware within 911 dispatch centers; build interoperable communications between each county's dispatch center such that each can serve as a back-up to the other; and build upon the existing wireless microwave network for 911 calls, dispatch centers, and first responder radio operations.

Sec. 142.  2017 3rd sp.s. c 1 s 144 (uncodified) is amended to read as follows:

General Fund—State Appropriation (FY 2018). . . .(($2,076,000))

      $1,960,000

General Fund—State Appropriation (FY 2019). . . .(($2,251,000))

      $2,137,000

Higher Education Personnel Services Account—State     

Appropriation. . . .$1,327,000

Personnel Service Account—State Appropriation. . . .$4,032,000

TOTAL APPROPRIATION. . . .(($9,686,000))

     $9,684,000

Sec. 143.  2017 3rd sp.s. c 1 s 145 (uncodified) is amended to read as follows:

Certified Public Accountants' Account—State     

Appropriation. . . .(($2,907,000))

      $3,244,000

Sec. 144.  2017 3rd sp.s. c 1 s 147 (uncodified) is amended to read as follows:

General Fund—State Appropriation (FY 2018). . . .(($4,368,000))

      $4,364,000

General Fund—State Appropriation (FY 2019). . . .(($4,405,000))

      $4,381,000

General Fund—Private/Local Appropriation. . . .$102,000

Building Code Council Account—State Appropriation. . . .(($1,056,000))

      $1,481,000

TOTAL APPROPRIATION. . . .(($9,931,000))

     $10,328,000

The appropriations in this section are subject to the following conditions and limitations:

(1) (($4,031,000)) $3,994,000 of the general fund—state appropriation for fiscal year 2018 and (($4,082,000)) $3,974,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for the payment of facilities and services charges, utilities and contracts charges, public and historic facilities charges, and capital projects surcharges allocable to the senate, house of representatives, statute law committee, legislative support services, joint legislative systems committee, and office of support services. The department shall allocate charges attributable to these agencies among the affected revolving funds. The department shall maintain an interagency agreement with these agencies to establish performance standards, prioritization of preservation and capital improvement projects, and quality assurance provisions for the delivery of services under this subsection. The legislative agencies named in this subsection shall continue to enjoy all of the same rights of occupancy and space use on the capitol campus as historically established.

(2) In accordance with RCW 46.08.172 and 43.135.055, the department is authorized to increase parking fees in fiscal years 2018 and 2019 as necessary to meet the actual costs of conducting business.

(3) Before any agency may purchase a passenger motor vehicle as defined in RCW 43.19.560, the agency must have written approval from the director of the department of enterprise services. Agencies that are exempted from the requirement are the Washington state patrol, Washington state department of transportation, and the department of natural resources.

(4) From the fee charged to master contract vendors, the department shall transfer to the office of minority and women's business enterprises in equal monthly installments $1,500,000 in fiscal year 2018 and $1,300,000 in fiscal year 2019.

(5) The risk management system project funded through the risk management administration account created in RCW 4.92.220 is subject to the conditions, limitations, and review provided in section 724 of this act.

(6)(a) During the 2017-2019 fiscal biennium, the department must revise its master contracts with vendors, including cooperative purchasing agreements under RCW 39.26.060, to include a provision to require that each vendor agrees to equality among its workers by ensuring similarly employed individuals are compensated as equals as follows:

(i) Employees are similarly employed if the individuals work for the same employer, the performance of the job requires comparable skill, effort, and responsibility, and the jobs are performed under similar working conditions. Job titles alone are not determinative of whether employees are similarly employed;

(ii) Vendors may allow differentials in compensation for its workers based in good faith on any of the following:

(A) A seniority system; a merit system; a system that measures earnings by quantity or quality of production; a bona fide job-related factor or factors; or a bona fide regional difference in compensation levels.

(B) A bona fide job-related factor or factors may include, but not be limited to, education, training, or experience, that is: Consistent with business necessity; not based on or derived from a gender-based differential; and accounts for the entire differential.

(C) A bona fide regional difference in compensation level must be: Consistent with business necessity; not based on or derived from a gender-based differential; and account for the entire differential.

(b) The provision must allow for the termination of the contract if the public entity using the contract or agreement of the department of enterprise services determines that the vendor is not in compliance with this agreement or contract term.

(c) The department must implement this provision with any new contract and at the time of renewal of any existing contract.

(d) Any cost for the implementation of this section must be recouped from the fees charged to master contract vendors.

Sec. 145.  2017 3rd sp.s. c 1 s 149 (uncodified) is amended to read as follows:

General Fund—State Appropriation (FY 2018). . . .(($1,607,000))

      $1,570,000

General Fund—State Appropriation (FY 2019). . . .(($1,633,000))

      $1,643,000

General Fund—Federal Appropriation. . . .$2,228,000

General Fund—Private/Local Appropriation. . . .$264,000

TOTAL APPROPRIATION. . . .(($5,732,000))

     $5,841,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $103,000 of the general fund—state appropriation for fiscal year 2018 and $103,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for archaeological determinations and excavations of inadvertently discovered skeletal human remains, and removal and reinterment of such remains when necessary.

Sec. 146. 2017 3rd sp.s. c 1 s 150 (uncodified) is amended to read as follows:

General Fund—State Appropriation (FY 2018). . . .$187,000

General Fund—State Appropriation (FY 2019). . . .$188,000

Consolidated Technology Services Revolving

Account—State Appropriation . . . .(($19,136,000))

      $18,578,000

TOTAL APPROPRIATION. . . .(($19,511,000))

     $18,953,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $7,263,000 of the consolidated technology services revolving account—state appropriation is for the office of the chief information officer.

(2) (($9,443,000)) $10,668,000 of the consolidated technology services revolving account—state appropriation is for the office of cyber security.

(3) The consolidated technology services agency shall work with customer agencies using the Washington state electronic records vault (WASERV) to identify opportunities to:

(a) Reduce storage volumes and costs associated with vault records stored beyond the agencies' record retention schedules; and

(b) Assess a customized service charge as defined in chapter 304, Laws of 2017 for costs of using WASERV to prepare data compilations in response to public records requests.

(4) The consolidated technology services agency shall provide desktop support services without charging a per device fee to the following agencies: The governor's office of Indian affairs, the commission on Asian Pacific American affairs, the citizen's commission on salaries for elected officials, the commission on Hispanic affairs, and the commission on African-American affairs. The consolidated technology services agency must not withhold or reduce desktop support services provided to small agencies that had been receiving desktop support services and had not previously received appropriations provided specifically for the purpose of reimbursing the consolidated technology services agency for those services.

(5) In conjunction with the office of the chief information officer's prioritization of proposed information technology expenditures, agency budget requests for proposed information technology expenditures shall include the following: The agency's priority ranking of each information technology request; the estimated cost for the current biennium; the estimated total cost of the request over all biennia; and the expected timeline to complete the request. The office of the chief information officer and the office of financial management may request agencies to include additional information on proposed information technology expenditure requests.

(6) The consolidated technology services agency must not increase fees charged for existing services without prior approval by the office of financial management. The agency may develop fees to recover the actual cost of new infrastructure to support increased use of cloud technologies.

(7) $500,000 of the consolidated technology services revolving account—state appropriation is provided solely for the agency, in collaboration with the office of financial management, to conduct a zero-based budget review of the agency's services. Information and analysis submitted by the department for the zero-based review under this subsection shall include:

(a) A statement of the statutory basis or other basis for the creation of each program or service and the history of each program or service that is being reviewed;

(b) A description of how each program or service fits within the strategic plan and goals of the agency and an analysis of the quantified objectives of each program or service within the agency;

(c) Any available performance measures indicating the effectiveness and efficiency of each program or service;

(d) A description with supporting cost and staffing data of each program or service and the populations served by each program or service, and the level of funding and staff required to accomplish the goals of the program or service if different than the actual maintenance level;

(e) An analysis of the major costs and benefits of operating each program or service and the rationale for specific expenditure and staffing levels;

(f) An analysis estimating each program's or service's administrative and other overhead costs;

(g) An analysis of the levels of services provided;

(h) An analysis estimating the amount of funds or benefits that actually reach the intended recipients; and

(i) An analysis and recommendations for alternative service delivery models that would save money or improve service quality.

(((9))) (8) Within existing resources, the agency must provide oversight of state procurement and contracting for information technology goods and services by the department of enterprise services.

(End of part)

PART II

HUMAN SERVICES

Sec. 201.  2017 3rd sp.s. c 1 s 201 (uncodified) is amended to read as follows:

(1) The appropriations to the department of social and health services in this act shall be expended for the programs and in the amounts specified in this act. Appropriations made in this act to the department of social and health services shall initially be allotted as required by this act. Subsequent allotment modifications shall not include transfers of moneys between sections of this act except as expressly provided in this act, nor shall allotment modifications permit moneys that are provided solely for a specified purpose to be used for other than that purpose.

(2) The department of social and health services shall not initiate any services that require expenditure of state general fund moneys unless expressly authorized in this act or other law. The department may seek, receive, and spend, under RCW 43.79.260 through 43.79.282, federal moneys not anticipated in this act as long as the federal funding does not require expenditure of state moneys for the program in excess of amounts anticipated in this act. If the department receives unanticipated unrestricted federal moneys, those moneys shall be spent for services authorized in this act or in any other legislation providing appropriation authority, and an equal amount of appropriated state general fund moneys shall lapse. Upon the lapsing of any moneys under this subsection, the office of financial management shall notify the legislative fiscal committees. As used in this subsection, "unrestricted federal moneys" includes block grants and other funds that federal law does not require to be spent on specifically defined projects or matched on a formula basis by state funds.

(3) The legislature finds that medicaid payment rates, as calculated by the department pursuant to the appropriations in this act, bear a reasonable relationship to the costs incurred by efficiently and economically operated facilities for providing quality services and will be sufficient to enlist enough providers so that care and services are available to the extent that such care and services are available to the general population in the geographic area. The legislature finds that cost reports, payment data from the federal government, historical utilization, economic data, and clinical input constitute reliable data upon which to determine the payment rates.

(4) The department shall to the maximum extent practicable use the same system for delivery of spoken-language interpreter services for social services appointments as the one established for medical appointments in the health care authority. When contracting directly with an individual to deliver spoken language interpreter services, the department shall only contract with language access providers who are working at a location in the state and who are state-certified or state-authorized, except that when such a provider is not available, the department may use a language access provider who meets other certifications or standards deemed to meet state standards, including interpreters in other states.

(5) Information technology projects or investments and proposed projects or investments impacting time capture, payroll and payment processes and systems, eligibility, case management, and authorization systems within the department of social and health services are subject to technical oversight by the office of the chief information officer.

(6)(a) The department shall facilitate enrollment under the medicaid expansion for clients applying for or receiving state funded services from the department and its contractors. Prior to open enrollment, the department shall coordinate with the health care authority to provide referrals to the Washington health benefit exchange for clients that will be ineligible for medicaid.

(b) To facilitate a single point of entry across public and medical assistance programs, and to maximize the use of federal funding, the health care authority, the department of social and health services, and the health benefit exchange will coordinate efforts to expand HealthPlanfinder access to public assistance and medical eligibility staff. The department shall complete medicaid applications in the HealthPlanfinder for households receiving or applying for public assistance benefits.

(7) In accordance with RCW 71.24.380, the health care authority and the department are authorized to purchase medical and behavioral health services through integrated contracts upon request of all of the county authorities in a regional service area to become an early adopter of fully integrated purchasing of medical and behavioral health services. The department may combine and transfer such amounts appropriated under sections 204, 208, and 213 of this act as may be necessary to fund early adopter contracts. The amount of medicaid funding transferred from each program may not exceed the average per capita cost assumed in this act for individuals covered by that program, actuarially adjusted for the health condition of persons enrolled, times the number of clients enrolled. The amount of non-medicaid funding transferred from sections 204 and 208 may not exceed the amount that would have been contracted with a behavioral health organization if the county authorities had not requested to become an early adopter of fully integrated purchasing. These limits do not apply to the amounts provided in section 204(1)(s) of this act. If any funding that this act provides solely for a specific purpose is transferred under this subsection, that funding must be used consistently with the provisions and conditions for which it was provided.

(8) In accordance with RCW 71.24.380, the department is authorized to purchase mental health and substance use disorder services through integrated contracts with behavioral health organizations. The department may combine and transfer such amounts appropriated under sections 204 and 208 of this act as may be necessary to finance these behavioral health organization contracts. If any funding that this act provides solely for a specific purpose is transferred under this subsection, that funding must be used consistently with the provisions and conditions for which it was provided.

Sec. 202.  2017 3rd sp.s. c 1 s 202 (uncodified) is amended to read as follows:

General Fund—State Appropriation (FY 2018). . . .(($348,992,000))

      $346,043,000

General Fund—Federal Appropriation. . . .(($265,365,000))

      $279,194,000

General Fund—Private/Local Appropriation. . . .$1,477,000

Domestic Violence Prevention Account—State     

Appropriation. . . .$1,002,000

TOTAL APPROPRIATION. . . .(($616,836,000))

      $636,848,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $748,000 of the general fund—state appropriation for fiscal year 2018 is provided solely to contract for the operation of one pediatric interim care center. The center shall provide residential care for up to thirteen children through two years of age. Seventy-five percent of the children served by the center must be in need of special care as a result of substance abuse by their mothers. The center shall also provide on-site training to biological, adoptive, or foster parents. The center shall provide at least three months of consultation and support to the parents accepting placement of children from the center. The center may recruit new and current foster and adoptive parents for infants served by the center. The department shall not require case management as a condition of the contract.

(2) $253,000 of the general fund—state appropriation for fiscal year 2018 is provided solely for the costs of hub home foster families that provide a foster care delivery model that includes a licensed hub home. Use of the hub home model is intended to support foster parent retention, improve child outcomes, and encourage the least restrictive community placements for children in out-of-home care.

(3) $579,000 of the general fund—state appropriation for fiscal year 2018 and $55,000 of the general fund—federal appropriation are provided solely for a receiving care center east of the Cascade mountains.

(4) $990,000 of the general fund—state appropriation for fiscal year 2018 is provided solely for services provided through children's advocacy centers.

(5) $1,351,000 of the general fund—state appropriation for fiscal year 2018 is provided solely for implementation of performance-based contracts for family support and related services pursuant to RCW 74.13B.020.

(6) $9,474,000 of the general fund—state appropriation for fiscal year 2018 and $6,022,000 of the general fund—federal appropriation are provided solely for family assessment response.

(7) $94,000 of the general fund—state appropriation for fiscal year 2018 is provided solely for a contract with a child advocacy center in Spokane to provide continuum of care services for children who have experienced abuse or neglect and their families.

(8) $1,874,000 of the general fund—state appropriation for fiscal year 2018 and $560,000 of the general fund—federal appropriation are provided solely for the children's administration to reduce the caseload ratios of social workers serving children in foster care to promote decreased lengths of stay and to make progress towards achievement of the Braam settlement caseload outcome.

(9)(a) $539,000 of the general fund—state appropriation for fiscal year 2018, $328,000 of the general fund private/local appropriation, and $126,000 of the general fund—federal appropriation are provided solely for a contract with an educational advocacy provider with expertise in foster care educational outreach. The amounts in this subsection are provided solely for contracted education coordinators to assist foster children in succeeding in K-12 and higher education systems and to assure a focus on education during the department's transition to performance-based contracts. Funding must be prioritized to regions with high numbers of foster care youth, or regions where backlogs of youth that have formerly requested educational outreach services exist. The children's administration is encouraged to use private matching funds to maintain educational advocacy services.

(b) The children's administration shall contract with the office of the superintendent of public instruction, which in turn shall contract with a nongovernmental entity or entities to provide educational advocacy services pursuant to RCW 28A.300.590.

(10) The children's administration shall continue to implement policies to reduce the percentage of parents requiring supervised visitation, including clarification of the threshold for transition from supervised to unsupervised visitation prior to reunification.

(11) $111,000 of the general fund—state appropriation for fiscal year 2018 and $26,000 of the general fund—federal appropriation are provided solely for a base rate increase for licensed family child care providers. In addition, $45,000 of the general fund—state appropriation for fiscal year 2018 and $11,000 of the general fund—federal appropriation are provided solely for increasing paid professional days from three days to five days for licensed family child care providers. Amounts in this subsection are provided solely for the 2017-2019 collective bargaining agreement covering family child care providers as set forth in section 940 of this act. Amounts provided in this section are contingent upon the enactment of Senate Bill No. 5969 (transparency in public employee collective bargaining). If the bill is not enacted by July 31, 2017, the appropriation in this subsection shall lapse.

(12) $159,000 of the general fund—state appropriation for fiscal year 2018 and $65,000 of the general fund—federal appropriation are provided solely to implement chapter 265, Laws of 2017 (SHB 1867) (extended foster care).

(13) $100,000 of the general fund—state appropriation for fiscal year 2018 is provided solely for a contract with a national nonprofit organization to, in partnership with private matching funds, subcontract with a community organization for specialized, enhanced adoption placement services for legally free children in state custody. The contract must supplement, but not supplant, the work of the children's administration to secure permanent adoptive homes for children.

(14) $375,000 of the general fund—state appropriation for fiscal year 2018 and $56,000 of the general fund—federal appropriation are provided solely for the children's administration to develop, implement, and expand strategies to improve the capacity, reliability, and effectiveness of contracted visitation services for children in temporary out-of-home care and their parents and siblings. Strategies may include, but are not limited to, increasing mileage reimbursement for providers, offering transportation-only contract options, and mechanisms to reduce the level of parent-child supervision when doing so is in the best interest of the child. The children's administration must submit an analysis of the strategies and associated outcomes no later than October 1, 2018.

(15) $63,000 of the general fund—state appropriation for fiscal year 2018 and $19,000 of the general fund—federal appropriation are provided solely for implementation of Engrossed Second Substitute House Bill No. 1661 (child, youth, families/department). If the bill is not enacted by July 31, 2017, the amounts provided in this subsection shall lapse.

(16) The children's administration is encouraged to control exceptional reimbursement decisions so that the child's needs are met without excessive costs.

(17) $839,000 of the general fund—state appropriation for fiscal year 2018 and $160,000 of the general fund—federal appropriation are provided solely for a six percent base rate increase for child care center providers, effective September 1, 2017.

(18) $1,230,000 of the general fund—state appropriation for fiscal year 2018 and $78,000 of the general fund—federal appropriation are provided solely to increase the travel reimbursement for in-home service providers.

(19) $160,000 of the general fund—state appropriation for fiscal year 2018 and $3,000 of the general fund—federal appropriation are provided solely to implement chapter 207, Laws of 2017 (E2SHB 1819) (paperwork requirements).

(20) $25,000 of the general fund—state appropriation for fiscal year 2018 is provided solely for an entity in Yakima county to provide advocacy and support services to children in foster care.

(21) $203,000 of the general fund—state appropriation for fiscal year 2018 is provided solely for the department to conduct biennial inspections and certifications of facilities, both overnight and day shelters, that serve those who are under 18 years of age and are homeless.

(22) $863,000 of the general fund—state appropriation for fiscal year 2018 and $573,000 of the general fund—federal appropriation are provided solely to implement Engrossed Substitute Senate Bill No. 5890 (foster care and adoption). Within the amounts provided in this subsection, $366,000 of the general fund—state appropriation for fiscal year 2018 and $174,000 of the general fund—federal appropriation are provided solely for short-term care for licensed foster families. If the bill is not enacted by July 31, 2017, the amounts provided in this subsection shall lapse.

Sec. 203.  2017 3rd sp.s. c 1 s 203 (uncodified) is amended to read as follows:

General Fund—State Appropriation (FY 2018). . . .(($95,885,000))

      $91,281,000

General Fund—State Appropriation (FY 2019). . . .(($97,123,000))

      $94,061,000

General Fund—Federal Appropriation. . . .$3,464,000

General Fund—Private/Local Appropriation. . . .$1,985,000

Washington Auto Theft Prevention Authority Account—     

State Appropriation. . . .$196,000

TOTAL APPROPRIATION. . . .(($198,653,000))

      $199,708,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $331,000 of the general fund—state appropriation for fiscal year 2018 and $331,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for deposit in the county criminal justice assistance account for costs to the criminal justice system associated with the implementation of chapter 338, Laws of 1997 (juvenile code revisions). The amounts provided in this subsection are intended to provide funding for county adult court costs associated with the implementation of chapter 338, Laws of 1997 and shall be distributed in accordance with RCW 82.14.310.

(2) $2,841,000 of the general fund—state appropriation for fiscal year 2018 and $2,841,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for grants to county juvenile courts for the following juvenile justice programs identified by the Washington state institute for public policy (institute) in its report: "Inventory of Evidence-based, Research-based, and Promising Practices for Prevention and Intervention Services for Children and Juveniles in the Child Welfare, Juvenile Justice, and Mental Health Systems." Additional funding for this purpose is provided through an interagency agreement with the health care authority. County juvenile courts shall apply to the juvenile rehabilitation administration for funding for program-specific participation and the administration shall provide grants to the courts consistent with the per-participant treatment costs identified by the institute.

(3) $1,537,000 of the general fund—state appropriation for fiscal year 2018 and $1,537,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for expansion of the following juvenile justice treatments and therapies in juvenile rehabilitation administration programs identified by the Washington state institute for public policy in its report: "Inventory of Evidence-based, Research-based, and Promising Practices for Prevention and Intervention Services for Children and Juveniles in the Child Welfare, Juvenile Justice, and Mental Health Systems." The administration may concentrate delivery of these treatments and therapies at a limited number of programs to deliver the treatments in a cost-effective manner.

(4)(a) $6,198,000 of the general fund—state appropriation for fiscal year 2018 and $6,198,000 of the general fund—state appropriation for fiscal year 2019 are provided solely to implement evidence- and research-based programs through community juvenile accountability grants, administration of the grants, and evaluations of programs funded by the grants. In addition to funding provided in this subsection, funding to implement alcohol and substance abuse treatment programs for locally committed offenders is provided through an interagency agreement with the health care authority.

(b) The juvenile rehabilitation administration shall administer a block grant to county juvenile courts for the purpose of serving youth as defined in RCW 13.40.510(4)(a) in the county juvenile justice system. Funds dedicated to the block grant include: Consolidated juvenile service (CJS) funds, community juvenile accountability act (CJAA) grants, chemical dependency/mental health disposition alternative (CDDA), and suspended disposition alternative (SDA). The juvenile rehabilitation administration shall follow the following formula and must prioritize evidence-based programs and disposition alternatives and take into account juvenile courts program-eligible youth in conjunction with the number of youth served in each approved evidence-based program or disposition alternative: (i) Thirty-seven and one-half percent for the at-risk population of youth ten to seventeen years old; (ii) fifteen percent for the assessment of low, moderate, and high-risk youth; (iii) twenty-five percent for evidence-based program participation; (iv) seventeen and one-half percent for minority populations; (v) three percent for the chemical dependency and mental health disposition alternative; and (vi) two percent for the suspended dispositional alternatives. Funding for the special sex offender disposition alternative (SSODA) shall not be included in the block grant, but allocated on the average daily population in juvenile courts. Funding for the evidence-based expansion grants shall be excluded from the block grant formula. Funds may be used for promising practices when approved by the juvenile rehabilitation administration and juvenile courts, through the community juvenile accountability act committee, based on the criteria established in consultation with Washington state institute for public policy and the juvenile courts.

(c) If Second Substitute House Bill No. 1280 (referred and diverted youth) is enacted, then the administration must implement a stop-loss policy when allocating funding under (b) of this subsection in the 2017-2019 fiscal biennium. Under the stop-loss policy, funding formula changes may not result in a funding loss for any juvenile court of more than two percent from one year to the next. The committee in (d) of this subsection must establish a minimum base level of funding for juvenile courts with lower numbers of at-risk youth age 10 – 17. The administration must report to the legislature by December 1, ((2018)) 2019, about how funding is used for referred youth and the impact of that use on overall use of funding. If the bill is not enacted by July 31, ((2017)) 2018, this subsection is null and void.

(d) The juvenile rehabilitation administration and the juvenile courts shall establish a block grant funding formula oversight committee with equal representation from the juvenile rehabilitation administration and the juvenile courts. The purpose of this committee is to assess the ongoing implementation of the block grant funding formula, utilizing data-driven decision making and the most current available information. The committee will be co-chaired by the juvenile rehabilitation administration and the juvenile courts, who will also have the ability to change members of the committee as needed to achieve its purpose. The committee may make changes to the formula categories in (b) of this subsection if it determines the changes will increase statewide service delivery or effectiveness of evidence-based program or disposition alternative resulting in increased cost/benefit savings to the state, including long-term cost/benefit savings. The committee must also consider these outcomes in determining when evidence-based expansion or special sex offender disposition alternative funds should be included in the block grant or left separate.

(e) The juvenile courts and administrative office of the courts must collect and distribute information and provide access to the data systems to the juvenile rehabilitation administration and the Washington state institute for public policy related to program and outcome data. The juvenile rehabilitation administration and the juvenile courts must work collaboratively to develop program outcomes that reinforce the greatest cost/benefit to the state in the implementation of evidence-based practices and disposition alternatives.

(5) $98,000 of the general fund—state appropriation for fiscal year 2018 and $98,000 of the general fund—state appropriation for fiscal year 2019 are provided solely to the juvenile block grant funding formula oversight committee described in subsection (4)(d) of this section to contract with research entities to: (a) Assist juvenile justice programs identified as promising practices or research-based in undergoing the research necessary to demonstrate that the program is evidence-based; and (b) establish an annual, county-level evaluation of existing evidence-based juvenile justice programs.

(6) $557,000 of the general fund—state appropriation for fiscal year 2018 and $557,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for funding of the teamchild project.

(7) $283,000 of the general fund—state appropriation for fiscal year 2018 and $283,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for the juvenile detention alternatives initiative.

(8) $500,000 of the general fund—state appropriation for fiscal year 2018 and $500,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for a grant program focused on criminal street gang prevention and intervention. The juvenile rehabilitation administration may award grants under this subsection. The juvenile rehabilitation administration shall give priority to applicants who have demonstrated the greatest problems with criminal street gangs. Applicants composed of, at a minimum, one or more local governmental entities and one or more nonprofit, nongovernmental organizations that have a documented history of creating and administering effective criminal street gang prevention and intervention programs may apply for funding under this subsection. Each entity receiving funds must report to the juvenile rehabilitation administration on the number and types of youth served, the services provided, and the impact of those services on the youth and the community.

(9) The juvenile rehabilitation institutions may use funding appropriated in this subsection to purchase goods ((and)), supplies, and services through hospital group purchasing organizations when it is cost-effective to do so.

(10) $75,000 of the general fund—state appropriation for fiscal year 2018 is provided solely for the department to coordinate the examination of data associated with juvenile gang and firearm offenses. The review of data must include information from the administrative office of the courts, the office of the superintendent of public instruction, the office of financial management—education research data center, the Washington association of sheriffs and police chiefs, the caseload forecast council, and the department of corrections. For the purpose of carrying out the data review, named organizations are authorized to share data to include details of criminal arrest and conviction data. The department shall report to the governor and the appropriate legislative committees by February 1, 2018, with any recommendations for public policy that increases public safety.

Sec. 204.  2017 3rd sp.s. c 1 s 204 (uncodified) is amended to read as follows:

(1) COMMUNITY SERVICES/BEHAVIORAL HEALTH ORGANIZATIONS

General Fund—State Appropriation (FY 2018). . . .(($391,457,000))

      $381,760,000

General Fund—Federal Appropriation. . . .(($1,021,705,000))

      $481,439,000

General Fund—Private/Local Appropriation. . . .(($17,864,000))

      $8,932,000

Dedicated Marijuana Account—State Appropriation

(FY 2018). . . .$3,684,000

TOTAL APPROPRIATION. . . .(($1,847,502,000))

      $875,854,000

The appropriations in this subsection are subject to the following conditions and limitations:

(a) For the purposes of this subsection, amounts provided for behavioral health organizations shall also be available for the health care authority to contract with entities that assume the responsibilities of behavioral health organizations in regions in which the health care authority is purchasing medical and behavioral health services through fully integrated contracts pursuant to RCW 71.24.380.

(b) $6,590,000 of the general fund—state appropriation for fiscal year 2018((, $6,590,000 of the general fund—state appropriation for fiscal year 2019,)) and (($7,620,000)) $3,810,000 of the general fund—federal appropriation are provided solely for the department and behavioral health organizations to continue to contract for implementation of high-intensity programs for assertive community treatment (PACT) teams. In determining the proportion of medicaid and nonmedicaid funding provided to behavioral health organizations with PACT teams, the department shall consider the differences between behavioral health organizations in the percentages of services and other costs associated with the teams that are not reimbursable under medicaid. The department may allow behavioral health organizations which have nonmedicaid reimbursable costs that are higher than the nonmedicaid allocation they receive under this section to supplement these funds with local dollars or funds received under (((g))) (f) of this subsection. The department and behavioral health organizations shall maintain consistency with all essential elements of the PACT evidence-based practice model in programs funded under this section.

(c) From the general fund—state appropriations in this subsection, the department shall assure that behavioral health organizations reimburse the department of social and health services aging and long term support administration for the general fund—state cost of medicaid personal care services that enrolled behavioral health organization consumers use because of their psychiatric disability.

(d) (($3,520,000)) $1,760,000 of the general fund—federal appropriation is provided solely for the department to maintain a pilot project to put peer bridging staff into each behavioral health organization as part of the state psychiatric liaison teams to promote continuity of service as individuals return to their communities. The department must collect data and submit a report to the office of financial management and the appropriate committees of the legislature on the impact of peer staff on state hospital discharges and community placements by December 1, 2017.

(e) (($6,858,000 of the general fund—state appropriation for fiscal year 2019 and $4,023,000 of the general fund—federal appropriation are provided solely for new crisis triage or stabilization centers. The department must seek proposals from behavioral health organizations for the use of these funds based on regional priorities. Services in these facilities may include crisis stabilization and intervention, individual counseling, peer support, medication management, education, and referral assistance. The department shall monitor each center's effectiveness at lowering the rate of state psychiatric hospital admissions.

(f) $15,862,000)) $11,405,000 of the general fund—state appropriation for fiscal year 2018 is provided solely to assist behavioral health organizations with the costs of providing services to medicaid clients receiving services in psychiatric facilities classified as institutions of mental diseases. The department must distribute these amounts proportionate to the number of bed days for medicaid clients in institutions for mental diseases that were excluded from behavioral health organization fiscal year 2018 capitation rates because they exceeded the amounts allowed under federal regulations. The department must also use these amounts to directly pay for costs that are ineligible for medicaid reimbursement in institutions of mental disease facilities for American Indian and Alaska Natives who opt to receive behavioral health services on a fee for service basis. The amounts used for these individuals must be reduced from the allocation of the behavioral health organization where the individual resides. If a behavioral health organization receives more funding through this subsection than is needed to pay for the cost of their medicaid clients in institutions for mental diseases, they must use the remainder of the amounts to provide other services not covered under the medicaid program. The department must apply for a waiver from the center for medicaid and medicare services to allow for the full cost of stays in institutions of mental diseases to be included in fiscal year 2019 behavioral health organization capitation rates. The department may tailor the fiscal year 2019 waiver to specific populations for which the center for medicaid and medicare services has indicated they are likely to approve and work to further expand the waiver to other populations in fiscal year 2020. The department must submit a report on the status of the waiver to the office of financial management and the appropriate committees of the legislature by December 1, 2017.

(((g))) (f) $81,930,000 of the general fund—state appropriation for fiscal year 2018 ((and $81,930,000 of the general fund—state appropriation for fiscal year 2019 are)) is provided solely for persons and services not covered by the medicaid program. To the extent possible, levels of behavioral health organization spending shall be maintained in the following priority order: Crisis and commitment services; community inpatient services; and residential care services, including personal care and emergency housing assistance. These amounts must be distributed to behavioral health organizations proportionate to the fiscal year 2017 allocation of flexible nonmedicaid funds. The department must include the following language in medicaid contracts with behavioral health organizations unless they are provided formal notification from the center for medicaid and medicare services that the language will result in the loss of federal medicaid participation: "The contractor may voluntarily provide services that are in addition to those covered under the state plan, although the cost of these services cannot be included when determining payment rates unless including these costs are specifically allowed under federal law or an approved waiver."

(((h))) (g) The department is authorized to continue to contract directly, rather than through contracts with behavioral health organizations for children's long-term inpatient facility services.

(((i))) (h) $1,125,000 of the general fund—state appropriation for fiscal year 2018 ((and $1,125,000 of the general fund—state appropriation for fiscal year 2019 are)) is provided solely for the Spokane county behavioral health organization to implement services to reduce utilization and the census at eastern state hospital. Such services shall include:

(A) High intensity treatment team for persons who are high utilizers of psychiatric inpatient services, including those with co-occurring disorders and other special needs;

(B) Crisis outreach and diversion services to stabilize in the community individuals in crisis who are at risk of requiring inpatient care or jail services;

(C) Mental health services provided in nursing facilities to individuals with dementia, and consultation to facility staff treating those individuals; and

(D) Services at the sixteen-bed evaluation and treatment facility.

At least annually, the Spokane county behavioral health organization shall assess the effectiveness of these services in reducing utilization at eastern state hospital, identify services that are not optimally effective, and modify those services to improve their effectiveness.

(((j))) (i) $1,204,000 of the general fund—state appropriation for fiscal year 2018 ((and $1,204,000 of the general fund—state appropriation for fiscal year 2019 are)) is provided solely to reimburse Pierce and Spokane counties for the cost of conducting 180-day commitment hearings at the state psychiatric hospitals.

(((k))) (j) Behavioral health organizations may use local funds to earn additional federal medicaid match, provided the locally matched rate does not exceed the upper-bound of their federally allowable rate range, and provided that the enhanced funding is used only to provide medicaid state plan or waiver services to medicaid clients. Additionally, behavioral health organizations may use a portion of the state funds allocated in accordance with (g) of this subsection to earn additional medicaid match, but only to the extent that the application of such funds to medicaid services does not diminish the level of crisis and commitment, community inpatient, residential care, and outpatient services presently available to persons not eligible for medicaid.

(((l))) (k) $2,291,000 of the general fund—state appropriation for fiscal year 2018 ((and $2,291,000 of the general fund—state appropriation for fiscal year 2019 are)) is provided solely for mental health services for mentally ill offenders while confined in a county or city jail and for facilitating access to programs that offer mental health services upon release from confinement. The department must collect information from the behavioral health organizations on their plan for using these funds, the numbers of individuals served, and the types of services provided and submit a report to the office of financial management and the appropriate fiscal committees of the legislature by December 1st of each year of the biennium.

(((m))) (l) Within the amounts appropriated in this section, funding is provided for the department to develop and phase in intensive mental health services for high needs youth consistent with the settlement agreement in T.R. v. Dreyfus and Porter.

(((n))) (m) The department must establish minimum and maximum funding levels for all reserves allowed under behavioral health organization contracts and insert contract language that clearly states the requirements and limitations. The department must monitor and ensure that behavioral health organization reserves do not exceed maximum levels. The department must monitor behavioral health organization revenue and expenditure reports and must require a behavioral health organization to submit a corrective action plan on how it will spend its excess reserves within a reasonable period of time, when its reported reserves exceed maximum levels established under the contract. The department must review and approve such plans and monitor to ensure compliance. If the department determines that a behavioral health organization has failed to provide an adequate excess reserve corrective action plan or is not complying with an approved plan, the department must reduce payments to the behavioral health organization in accordance with remedial actions provisions included in the contract. These reductions in payments must continue until the department determines that the behavioral health organization has come into substantial compliance with an approved excess reserve corrective action plan.

(((o))) (n) $2,309,000 of the general fund—state appropriation for fiscal year 2018((, $3,079,000 of the general fund—state appropriation for fiscal year 2019,)) and (($5,061,000)) $2,169,000 of the general fund—federal appropriation are provided solely for the department to increase rates for community hospitals that provide a minimum of 200 medicaid psychiatric inpatient days. The department must increase both medicaid and nonmedicaid psychiatric per-diem reimbursement rates for these providers within these amounts. The amounts in this subsection include funding for additional hold harmless payments resulting from the rate increase. The department shall prioritize increases for hospitals not currently paid based on provider specific costs using a similar methodology used to set rate for existing inpatient facilities and the latest available cost report information. Rate increases for providers must be set so as not to exceed the amounts provided within this subsection. The rate increase related to nonmedicaid clients must be done to maintain the provider at the same percentage as currently required under WAC 182-550-4800.

(((p))) (o) $100,000 of the general fund—state appropriation for fiscal year 2018 ((and $100,000 of the general fund—state appropriation for fiscal year 2019 are)) is provided solely for the department to collaborate with tribal governments and develop a plan for establishing an evaluation and treatment facility that will specialize in providing care specifically to the American Indian and Alaska Native population. The plan must include options for maximizing federal participation and ((ensuring)), ensure that utilization will be based on medical necessity, and identify a specific geographic location where a tribal evaluation and treatment facility will be built.

(((q))) (p) $1,466,000 of the general fund—state appropriation for fiscal year 2018((, $7,103,000 of the general fund—state appropriation for fiscal year 2019,)) and (($9,715,000)) $1,663,000 of the general fund—federal appropriation are provided solely for the department to contract with community hospitals or freestanding evaluation and treatment centers to provide up to forty-eight long-term inpatient care beds as defined in RCW 71.24.025. The department must seek proposals and contract directly for these services rather than contracting through behavioral health organizations. The department must coordinate with the department of social and health services in developing the contract requirements, selecting contractors, and establishing processes for identifying patients that will be admitted to these facilities. The department must not use any of the amounts provided under this subsection for contracts with facilities that are subject to federal funding restrictions that apply to institutions of mental diseases, unless they have received a waiver that allows for full federal participation in these facilities.

(s))) (q) $4,983,000 of the general fund—state appropriation for fiscal year 2018((, $6,744,000 of the general fund—state appropriation for fiscal year 2019,)) and (($25,365,000)) $10,849,000 of the general fund—federal appropriation are provided solely for the department to increase medicaid capitation payments for behavioral health organizations. The department must work with the actuaries responsible for certifying behavioral health capitation rates to adjust average salary assumptions in order to implement this increase. In developing further updates for medicaid managed care rates for behavioral health services, the department must include and make available all applicable documents and analysis to legislative staff from the fiscal committees throughout the process. The department must require the actuaries to develop and submit rate ranges for each behavioral health organization prior to certification of specific rates.

(((t))) (r) The number of beds allocated for use by behavioral health organizations at eastern state hospital shall be 192 per day. The number of nonforensic beds allocated for use by behavioral health organizations at western state hospital shall be 557 per day. In fiscal year 2019, the department must reduce the number of beds allocated for use by behavioral health organizations at western state hospital by 30 beds to allow for the repurposing of a civil ward at western state hospital to provide forensic services. The contracted beds provided under (((q))) (p) of this subsection shall be allocated to the behavioral health organizations in lieu of beds at the state hospitals and be incorporated in their allocation of state hospital patient days of care for the purposes of calculating reimbursements pursuant to RCW 71.24.310. It is the intent of the legislature to continue the policy of expanding community based alternatives for long term civil commitment services that allow for state hospital beds to be prioritized for forensic patients.

(((u))) (s) $11,405,000 of the general fund—state appropriation for fiscal year 2018((, $11,405,000 of the general fund—state appropriation for fiscal year 2019,)) and (($17,680,000)) $8,840,000 of the general fund—federal appropriation are provided solely to maintain enhancements of community mental health services. The department must contract these funds for the operation of community programs in which the department determines there is a need for capacity that allows individuals to be diverted or transitioned from the state hospitals including but not limited to: (i) Community hospital or free standing evaluation and treatment services providing short-term detention and commitment services under the involuntary treatment act to be located in the geographic areas of the King behavioral health organization, the Spokane behavioral health organization outside of Spokane county, and the Thurston Mason behavioral health organization; (ii) one new full program of an assertive community treatment team in the King behavioral health organization and two new half programs of assertive community treatment teams in the Spokane behavioral health organization and the Pierce behavioral health organization; and (iii) three new recovery support services programs in the Great Rivers behavioral health organization, the greater Columbia behavioral health organization, and the north sound behavioral health organization. In contracting for community evaluation and treatment services, the department may not use these resources in facilities that meet the criteria to be classified under federal law as institutions for mental diseases. If the department is unable to come to a contract agreement with a designated behavioral health organization for any of the services identified above, it may consider contracting for that service in another region that has the need for such service.

(((v))) (t) $200,000 of the general fund—state appropriation for fiscal year 2018 ((and $1,296,000 of the general fund—state appropriation for fiscal year 2019 are)) is provided solely for clubhouse programs. ((Of this amount, $400,000 must be used for support of the Spokane clubhouse program and the remaining funds must be used for support of new clubhouse programs.)) The department must develop options and cost estimates for implementation of clubhouse programs statewide through a medicaid state plan amendment or a medicaid waiver and submit a report to the office of financial management and the appropriate committees of the legislature by December 1, 2018.

(((w))) (u) $212,000 of the general fund—state appropriation for fiscal year 2018 ((and $213,000 of the general fund—state appropriation for fiscal year 2019 are)) is provided solely to fund one pilot project in Pierce county and one in Yakima county to promote increased utilization of assisted outpatient treatment programs. The department shall require two behavioral health organizations to contract with local government to establish the necessary infrastructure for the programs. The department, in collaboration with the health care authority, shall provide a report by October 15, 2018, to the office of financial management and the appropriate fiscal and policy committees of the legislature to include the number of individuals served, outcomes to include reduced use of inpatient treatment and state hospital stays, and recommendations for further implementation based on lessons learned and best practices identified by the pilot projects.

(((x))) (v) The department, in collaboration with the health care authority, shall work to ensure that a single platform provider credentialing system is implemented. The authority and department shall ensure that appropriate cost offsets and cost avoidance are assumed for reduced staff time required for provider credentialing activity and reductions in improper billing activity when implementing provider credentialing systems.

(2) INSTITUTIONAL SERVICES

General Fund—State Appropriation (FY 2018). . . .(($286,936,000))

      $330,214,000

General Fund—State Appropriation (FY 2019). . . .(($277,823,000))

      $271,907,000

General Fund—Federal Appropriation. . . .(($148,093,000))

      $181,895,000

General Fund—Private/Local Appropriation. . . .(($52,630,000))

      $61,282,000

TOTAL APPROPRIATION. . . .(($765,482,000))

      $880,044,000

The appropriations in this subsection are subject to the following conditions and limitations:

(a) The state psychiatric hospitals may use funds appropriated in this subsection to purchase goods ((and)), supplies, and services through hospital group purchasing organizations when it is cost-effective to do so.

(b) $311,000 of the general fund—state appropriation for fiscal year 2018 and $310,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for a community partnership between western state hospital and the city of Lakewood to support community policing efforts in the Lakewood community surrounding western state hospital. The amounts provided in this subsection (2)(b) are for the salaries, benefits, supplies, and equipment for one full-time investigator, one full-time police officer, and one full-time community service officer at the city of Lakewood. The department must collect data from the city of Lakewood on the use of the funds and the number of calls responded to by the community policing program and submit a report with this information to the office of financial management and the appropriate fiscal committees of the legislature each December of the fiscal biennium.

(c) $45,000 of the general fund—state appropriation for fiscal year 2018 and $45,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for payment to the city of Lakewood for police services provided by the city at western state hospital and adjacent areas.

(d) $44,000 of the general fund—state appropriation for fiscal year 2018 and $19,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for payment to the city of Medical Lake for police services provided by the city at eastern state hospital and adjacent areas. The city must develop a proposal and estimated costs for developing a community policing program in the area surrounding eastern state hospital and submit the proposal to the department by September 30, ((2017)) 2018. The city must provide current and historical data for police services to eastern state hospital and adjacent areas which justify funding for a community policing program and continued funding for base police services and a community policing program.

(e) (($25,053,000)) $20,883,000 of the general fund—state appropriation for fiscal year 2018 and (($25,847,000)) $33,558,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for implementation of efforts to improve the timeliness of competency restoration services pursuant to chapter 5, Laws of 2015 (SSB 5889) (timeliness of competency treatment and evaluation services). These amounts must be used to maintain and further increase the number of forensic beds at western state hospital and eastern state hospital. Pursuant to chapter 7, Laws of 2015 1st sp. sess. (2E2SSB 5177) (timeliness of competency treatment and evaluation services), the department may contract some of these amounts for services at alternative locations if the secretary determines that there is a need.

(f) (($3,261,000)) $3,928,000 of the general fund—state appropriation for fiscal year 2018 and (($3,261,000)) $4,249,000 of the general fund—state appropriation for fiscal year 2019 are provided solely to maintain and further increase implementation of efforts to improve the timeliness of competency evaluation services for individuals who are in local jails pursuant to chapter 5, Laws of 2015 (SSB 5889) (timeliness of competency treatment and evaluation services). This funding must be used solely to maintain increases in the number of staff providing competency evaluation services.

(g) $135,000 of the general fund—state appropriation for fiscal year 2018 and $135,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for the department to hire an on-site safety compliance officer, stationed at Western State Hospital, to provide oversight and accountability of the hospital's response to safety concerns regarding the hospital's work environment.

(h) $20,234,000 of the general fund—state appropriation for fiscal year 2018 and (($20,234,000)) $32,424,000 of the general fund—state appropriation for fiscal year 2019 are provided solely to meet the requirements of the systems improvement agreement with the centers for medicare and medicaid services as outlined in seven conditions of participation and to maintain federal funding. The department shall specifically account for all spending related to the agreement and reconcile it back to the original funding plan, adjusted to reflect changes in amounts provided for fiscal year 2019. Changes of more than ten percent in any area of the spending plan must be submitted to the office of financial management for approval. The department must submit a financial analysis to the office of financial management and the appropriate committees of the legislature which compares current staffing levels at eastern and western state hospitals, at the ward level, with the specific staffing levels recommended in the state hospitals' clinical model analysis project report submitted by OTB Solutions in 2016. To the extent that the financial analysis includes any differential in staffing from what was recommended in the report, the department must clearly identify these differences and the associated costs. The department must submit the financial analysis by September 1, 2017.

(i) Within these amounts, the department must hire chemical dependency professionals to provide integrated substance use disorder and mental health treatment at the state psychiatric hospitals.

(j) $1,000 of the general fund—state appropriation for fiscal year 2018 and $2,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for the implementation of Senate Bill No. 5118 (personal needs allowance). If the bill is not enacted by July 31, 2017, the amounts provided in this subsection shall lapse.

(3) SPECIAL PROJECTS

General Fund—State Appropriation (FY 2018). . . .(($514,000))

      $486,000

General Fund—Federal Appropriation. . . .(($25,852,000))

      $3,148,000

TOTAL APPROPRIATION. . . .(($26,874,000))

      $3,662,000

The appropriations in this subsection are subject to the following conditions and limitations:

(((a))) $446,000 of the general fund—state appropriation for fiscal year 2018((, $446,000 of the general fund—state appropriation for fiscal year 2019,)) and (($178,000)) $89,000 of the general fund—federal appropriation are provided solely for the University of Washington's evidence-based practice institute which supports the identification, evaluation, and implementation of evidence-based or promising practices. The institute must work with the department to develop a plan to seek private, federal, or other grant funding in order to reduce the need for state general funds. The department must collect information from the institute on the use of these funds and submit a report to the office of financial management and the appropriate fiscal committees of the legislature by December 1st of each year of the biennium.

(4) PROGRAM SUPPORT

General Fund—State Appropriation (FY 2018). . . .(($10,175,000))

      $9,265,000

General Fund—State Appropriation (FY 2019). . . .(($9,543,000))

      $2,979,000

General Fund—Federal Appropriation. . . .(($12,046,000))

      $8,310,000

General Fund—Private/Local Appropriation. . . .(($502,000))

      $251,000

TOTAL APPROPRIATION. . . .(($32,266,000))

      $21,331,000

The appropriations in this subsection are subject to the following conditions and limitations:

(a) The department must complete an update of the state quality strategy required under federal managed care regulations and submit to the center for medicaid and medicare services by October 1, 2017. The department must provide a report to the office of financial management and the appropriate committees of the legislature by December 1, 2017, which includes the following: (i) A copy of the quality strategy submitted to the center for medicaid and medicare services; (ii) identification of all performance measures that are currently being measured for behavioral health organizations, and managed care organizations and the variations in performance among these entities; (iii) identification of any performance measures that are included in behavioral health organization and managed care organization 2018 contracts and whether these measures are connected to payment; and (iv) identification of any performance measures planned for incorporation of behavioral health organization and managed care organization 2019 contracts and whether these measures will be connected to payment during that contract period.

(b) $62,000 of the general fund—state appropriation for fiscal year 2018 and $41,000 of the general fund—federal appropriation are provided solely for the implementation of chapter 207, Laws of 2017 (E2SHB 1819) (children's mental health).

(c) In accordance with RCW 43.20B.110, 43.135.055, and 71.24.035, the department is authorized to adopt license and certification fees in fiscal year((s)) 2018 ((and 2019)) to support the costs of the regulatory program. The department's fee schedule shall have differential rates for providers with proof of accreditation from organizations that the department has determined to have substantially equivalent standards to those of the department, including but not limited to the joint commission on accreditation of health care organizations, the commission on accreditation of rehabilitation facilities, and the council on accreditation. To reflect the reduced costs associated with regulation of accredited programs, the department's fees for organizations with such proof of accreditation must reflect the lower costs of licensing for these programs than for other organizations which are not accredited.

Sec. 205.  2017 3rd sp.s. c 1 s 205 (uncodified) is amended to read as follows:

(1) COMMUNITY SERVICES

General Fund—State Appropriation (FY 2018). . . .(($612,748,000))

      $601,597,000

General Fund—State Appropriation (FY 2019). . . .(($662,252,000))

      $664,035,000

General Fund—Federal Appropriation. . . .(($1,301,629,000))

      $1,302,433,000

General Fund—Private/Local Appropriation. . . .(($534,000))

      $2,407,000

TOTAL APPROPRIATION. . . .(($2,577,163,000))

      $2,577,344,000

The appropriations in this subsection are subject to the following conditions and limitations:

(a) Individuals receiving services as supplemental security income (SSI) state supplemental payments shall not become eligible for medical assistance under RCW 74.09.510 due solely to the receipt of SSI state supplemental payments.

(b) In accordance with RCW 18.51.050, 18.20.050, 70.128.060, and 43.135.055, the department is authorized to increase nursing facility, assisted living facility, and adult family home fees as necessary to fully support the actual costs of conducting the licensure, inspection, and regulatory programs. The license fees may not exceed the department's annual licensing and oversight activity costs and shall include the department's cost of paying providers for the amount of the license fee attributed to medicaid clients.

(i) The current annual renewal license fee for adult family homes shall be $225 per bed beginning in fiscal year 2018 and $225 per bed beginning in fiscal year 2019. A processing fee of $2,750 shall be charged to each adult family home when the home is initially licensed. This fee is nonrefundable. A processing fee of $700 shall be charged when adult family home providers file a change of ownership application.

(ii) The current annual renewal license fee for assisted living facilities shall be $106 per bed beginning in fiscal year 2018 and (($106)) $116 per bed beginning in fiscal year 2019.

(iii) The current annual renewal license fee for nursing facilities shall be $359 per bed beginning in fiscal year 2018 and $359 per bed beginning in fiscal year 2019.

(c) $7,142,000 of the general fund—state appropriation for fiscal year 2018, $18,249,000 of the general fund—state appropriation for fiscal year 2019, and $27,336,000 of the general fund—federal appropriation are provided solely for the implementation of the agreement reached between the governor and the service employees international union healthcare 775nw under the provisions of chapters 74.39A and 41.56 RCW for the 2017-2019 fiscal biennium. Funding is contingent upon the enactment of Senate Bill No. 5969 (transparency in public employee collective bargaining). If the bill is not enacted by July 31, 2017, the appropriation in this subsection shall lapse.

(d) $787,000 of the general fund—state appropriation for fiscal year 2018, $2,183,000 of the general fund—state appropriation for fiscal year 2019, and $3,714,000 of the general fund—federal appropriation are provided solely for the homecare agency parity impacts of the agreement between the governor and the service employees international union healthcare 775nw. Funding is contingent upon the enactment of Senate Bill No. 5969 (transparency in public employee collective bargaining). If the bill is not enacted by July 31, 2017, the appropriation in this subsection shall lapse.

(e) The department may authorize a one-time waiver of all or any portion of the licensing and processing fees required under RCW 70.128.060 in any case in which the department determines that an adult family home is being relicensed because of exceptional circumstances, such as death or incapacity of a provider, and that to require the full payment of the licensing and processing fees would present a hardship to the applicant. In these situations the department is also granted the authority to waive the required residential administrator training for a period of 120 days if necessary to ensure continuity of care during the relicensing process.

(f) Community residential cost reports that are submitted by or on behalf of contracted agency providers are required to include information about agency staffing including health insurance, wages, number of positions, and turnover.

(g) $650,000 of the general fund—state appropriation for fiscal year 2018, $650,000 of the general fund—state appropriation for fiscal year 2019, and $800,000 of the general fund—federal appropriation are provided solely for the development and implementation of eight enhanced respite beds across the state for children. These services are intended to provide families and caregivers with a break in caregiving, the opportunity for behavioral stabilization of the child, and the ability to partner with the state in the development of an individualized service plan that allows the child to remain in his or her family home. The department must provide the legislature with a respite utilization report in January of each year that provides information about the number of children who have used enhanced respite in the preceding year, as well as the location and number of days per month that each respite bed was occupied.

(h) $900,000 of the general fund—state appropriation for fiscal year 2018 and $900,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for the development and implementation of eight community respite beds across the state for adults. These services are intended to provide families and caregivers with a break in caregiving and the opportunity for stabilization of the individual in a community-based setting as an alternative to using a residential habilitation center to provide planned or emergent respite. The department must provide the legislature with a respite utilization report by January of each year that provides information about the number of individuals who have used community respite in the preceding year, as well as the location and number of days per month that each respite bed was occupied.

(i) $100,000 of the general fund—state appropriation for fiscal year 2018, $95,000 of the general fund—state appropriation for fiscal year 2019, and $195,000 of the general fund—federal appropriation are provided solely for discharge case managers stationed at the state psychiatric hospitals. Discharge case managers will transition clients ready for hospital discharge into less restrictive alternative community placements. The transition of clients ready for discharge will free up bed capacity at the state psychiatric hospitals.

(j) $1,239,000 of the general fund—state appropriation for fiscal year 2018, $2,055,000 of the general fund—state appropriation for fiscal year 2019, and $3,218,000 of the general fund—federal appropriation are provided solely to create new community alternative placement beds that prioritize the transition of clients who are ready for discharge from the state psychiatric hospitals, but who have additional long-term care or developmental disability needs.

(i) Community alternative placement beds include enhanced service facility beds, adult family home beds, skilled nursing facility beds, shared supportive housing beds, state operated living alternative beds, and assisted living facility beds.

(ii) Each client must receive an individualized assessment prior to leaving one of the state psychiatric hospitals. The individualized assessment must identify and authorize personal care, nursing care, behavioral health stabilization, physical therapy, or other necessary services to meet the unique needs of each client. It is the expectation that, in most cases, staffing ratios in all community alternative placement options described in (j)(i) of this subsection will need to increase to meet the needs of clients leaving the state psychiatric hospitals. If specialized training is necessary to meet the needs of a client before he or she enters a community placement, then the person centered service plan must also identify and authorize this training.

(iii) When reviewing placement options, the department must consider the safety of other residents, as well as the safety of staff, in a facility. An initial evaluation of each placement, including any documented safety concerns, must occur within thirty days of a client leaving one of the state psychiatric hospitals and entering one of the community placement options described in (j)(i) of this subsection. At a minimum, the department must perform two additional evaluations of each placement during the first year that a client has lived in the facility.

(iv) During fiscal year 2018, in a presentation to the select committee on quality improvement in state hospitals, the department must describe the process of fielding and subsequently investigating complaints of abuse, neglect, and exploitation within the community alternative placement options described in (j)(i) of this subsection. At a minimum, the presentation must include data about the number of complaints, and the nature of complaints, over the preceding five fiscal years.

(v) During fiscal year 2019, in a presentation to the select committee on quality improvement in state hospitals, the department must provide an update about clients placed out of the state psychiatric hospitals into the community alternative placement options described in (j)(i) of this subsection. At a minimum, for each setting, the presentation must include data about the number of placements, average daily rate, complaints fielded, and complaints investigated. The presentation must also include information about modifications, including the placement of clients into alternate settings, that occurred due to the evaluations required under (j)(iii) of this subsection.

In developing bed capacity, the department shall consider the complex needs of individuals waiting for discharge from the state psychiatric hospitals.

(k) $738,000 of the general fund—state appropriation for fiscal year 2018, $1,963,000 of the general fund—state appropriation for fiscal year 2019, and $2,701,000 of the general fund—federal appropriation are provided solely for expanding the number of clients receiving services under the basic plus medicaid waiver. Approximately six hundred additional clients are anticipated to graduate from high school during the 2017-2019 fiscal biennium and will receive employment services under this expansion.

(l) $14,127,000 of the general fund—state appropriation for fiscal year 2018, $25,428,000 of the general fund—state appropriation for fiscal year 2019, and $39,554,000 of the general fund—federal appropriation are provided solely to increase the benchmark rate for community residential service providers offering supported living, group home, and licensed staff residential services to individuals with development disabilities. The amounts in this subsection (1)(l) include funding to increase the benchmark rate by the following amounts:

(i) $1.25 per hour effective July 1, 2017, and;

(ii) An additional $1.00 per hour effective July 1, 2018.

The amounts provided in this subsection must be used to improve the recruitment and retention of quality direct care staff to better protect the health and safety of clients with developmental disabilities.

(m) Respite personal care provided by individual providers to developmental disabilities administration clients, as authorized by the department and accessed by clients through a medicaid waiver, must be funded in maintenance level of the operating budget on the basis of actual and forecasted client utilization.

(n) $4,000 of the general fund—state appropriation for fiscal year 2018, $11,000 of the general fund—state appropriation for fiscal year 2019, and $13,000 of the general fund—federal appropriation are provided solely to implement chapter 270, Laws of 2017 (SB 5118) (personal needs allowance).

(o) $1,716,000 of the general fund—state appropriation for fiscal year 2018, $3,493,000 of the general fund—state appropriation for fiscal year 2019, and $4,267,000 of the general fund—federal appropriation are provided solely for a targeted vendor rate increase to contracted client service providers.

(i) Within the amounts provided in this subsection, $1,674,000 of the general fund—state appropriation for fiscal year 2018, $3,424,000 of the general fund—state appropriation for fiscal year 2019, and $4,126,000 of the general fund—federal appropriation are provided solely for a vendor rate increase of two percent in fiscal year 2018 and an additional two percent in fiscal year 2019 for all contracted vendors with the exception of nursing home providers, the program of all-inclusive care for the elderly, nurse delegators, community residential service providers, individual providers, agency providers, and adult family homes.

(ii) Within the amounts provided in this subsection, $42,000 of the general fund—state appropriation for fiscal year 2018, $69,000 of the general fund—state appropriation for fiscal year 2019, and $141,000 of the general fund—federal appropriation are provided solely to increase vendor rates for adult residential care and enhanced adult residential care in the 2017-2019 fiscal biennium up to the statewide minimum wage established in Initiative Measure No. 1433.

(p) $51,000 of the general fund—state appropriation for fiscal year 2018, $51,000 of the general fund—state appropriation for fiscal year 2019, and $102,000 of the general fund—federal appropriation are provided solely to increase the daily rate for private duty nursing in adult family homes by $63.77.

(q) $371,000 of the general fund—state appropriation for fiscal year 2018, $445,000 of the general fund—state appropriation for fiscal year 2019, and $1,069,000 of the general fund—federal appropriation are provided solely for increasing the hourly rate for nurse delegators from $32.96 to $45.32 effective September 1, 2017.

(r) $212,000 of the general fund—state appropriation for fiscal year 2018 and $269,000 of the general fund—federal appropriation are provided solely to implement Senate Bill No. . . . (S-2907.2). If the bill is not enacted by July 31, 2017, the amounts provided in this subsection shall lapse.

(s) $2,199,000 of the general fund—state appropriation for fiscal year 2018, $2,878,000 of the general fund—state appropriation for fiscal year 2019, and $6,388,000 of the general fund—federal appropriation are provided solely for the implementation of an agreement reached between the governor and the adult family home council under the provisions of chapter 41.56 RCW for the 2017-2019 fiscal biennium. Funding is contingent upon the enactment of Senate Bill No. 5969 (transparency in public employee collective bargaining). If the bill is not enacted by July 31, 2017, the amounts provided in this subsection shall lapse.

(2) INSTITUTIONAL SERVICES

General Fund—State Appropriation (FY 2018). . . .(($104,159,000))

      $99,642,000

General Fund—State Appropriation (FY 2019). . . .(($106,818,000))

      $106,874,000

General Fund—Federal Appropriation. . . .(($195,757,000))

      $203,719,000

General Fund—Private/Local Appropriation. . . .(($25,041,000))

      $27,041,000

TOTAL APPROPRIATION. . . .(($431,775,000))

      $449,717,000

The appropriations in this subsection are subject to the following conditions and limitations:

(a) Individuals receiving services as supplemental security income (SSI) state supplemental payments shall not become eligible for medical assistance under RCW 74.09.510 due solely to the receipt of SSI state supplemental payments.

(b) $495,000 of the general fund—state appropriation for fiscal year 2018 and $495,000 of the general fund—state appropriation for fiscal year 2019 are for the department to fulfill its contracts with the school districts under chapter 28A.190 RCW to provide transportation, building space, and other support services as are reasonably necessary to support the educational programs of students living in residential habilitation centers.

(c) $2,978,000 of the general fund—state appropriation for fiscal year 2018, $2,978,000 of the general fund—state appropriation for fiscal year 2019, and $5,956,000 of the general fund—federal appropriation are for additional staff to ensure compliance with centers for medicare and medicaid services requirements for habilitation, nursing care, staff safety, and client safety at the residential habilitation centers.

(d) The residential habilitation centers may use funds appropriated in this subsection to purchase goods ((and)), supplies, and services through hospital group purchasing organizations when it is cost-effective to do so.

(e) $2,000 of the general fund—state appropriation for fiscal year 2018, $5,000 of the general fund—state appropriation for fiscal year 2019, and $5,000 of the general fund—federal appropriation are provided solely to implement chapter 270, Laws of 2017 (SB 5118) (personal needs allowance).

(3) PROGRAM SUPPORT

General Fund—State Appropriation (FY 2018). . . .(($2,469,000))

      $2,351,000

General Fund—State Appropriation (FY 2019). . . .(($2,531,000))

      $2,417,000

General Fund—Federal Appropriation. . . .(($2,946,000))

      $2,986,000

TOTAL APPROPRIATION. . . .(($7,946,000))

      $8,024,000

(4) SPECIAL PROJECTS

General Fund—State Appropriation (FY 2018). . . .(($64,000))

      $55,000

General Fund—State Appropriation (FY 2019). . . .(($64,000))

      $62,000

General Fund—Federal Appropriation. . . .$1,092,000

TOTAL APPROPRIATION. . . .$1,220,000

Sec. 206.  2017 3rd sp.s. c 1 s 206 (uncodified) is amended to read as follows:

General Fund—State Appropriation (FY 2018). . . .(($1,099,017,000))

      $1,077,282,000

General Fund—State Appropriation (FY 2019). . . .(($1,196,263,000))

      $1,208,737,000

General Fund—Federal Appropriation. . . .(($2,839,653,000))

      $2,845,278,000

General Fund—Private/Local Appropriation. . . .(($33,572,000))

      $37,639,000

Traumatic Brain Injury Account—State Appropriation. . . .$4,540,000

Skilled Nursing Facility Safety Net Trust Account—     

State Appropriation. . . .$133,360,000

TOTAL APPROPRIATION. . . .(($5,306,405,000))

      $5,320,001,000

The appropriations in this section are subject to the following conditions and limitations:

(1)(a) For purposes of implementing chapter 74.46 RCW, the weighted average nursing facility payment rate shall not exceed (($201.39)) $200.47 for fiscal year 2018 and shall not exceed (($209.35)) $216.64 for fiscal year 2019.

(b) The department shall provide a medicaid rate add-on to reimburse the medicaid share of the skilled nursing facility safety net assessment as a medicaid allowable cost. The nursing facility safety net rate add-on may not be included in the calculation of the annual statewide weighted average nursing facility payment rate.

(2) In accordance with RCW 18.51.050, 18.20.050, 70.128.060, and 43.135.055, the department is authorized to increase nursing facility, assisted living facility, and adult family home fees as necessary to fully support the actual costs of conducting the licensure, inspection, and regulatory programs. The license fees may not exceed the department's annual licensing and oversight activity costs and shall include the department's cost of paying providers for the amount of the license fee attributed to medicaid clients.

(a) The current annual renewal license fee for adult family homes shall be $225 per bed beginning in fiscal year 2018 and $225 per bed beginning in fiscal year 2019. A processing fee of $2,750 shall be charged to each adult family home when the home is initially licensed. This fee is nonrefundable. A processing fee of $700 shall be charged when adult family home providers file a change of ownership application.

(b) The current annual renewal license fee for assisted living facilities shall be $106 per bed beginning in fiscal year 2018 and (($106)) $116 per bed beginning in fiscal year 2019.

(c) The current annual renewal license fee for nursing facilities shall be $359 per bed beginning in fiscal year 2018 and $359 per bed beginning in fiscal year 2019.

(3) The department is authorized to place long-term care clients residing in nursing homes and paid for with state only funds into less restrictive community care settings while continuing to meet the client's care needs.

(4) $1,858,000 of the general fund—state appropriation for fiscal year 2018 and $1,857,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for operation of the volunteer services program. Funding shall be prioritized towards serving populations traditionally served by long-term care services to include senior citizens and persons with disabilities.

(5) $14,674,000 of the general fund—state appropriation for fiscal year 2018, $37,239,000 of the general fund—state appropriation for fiscal year 2019, and $55,716,000 of the general fund—federal appropriation are provided solely for the implementation of the agreement reached between the governor and the service employees international union healthcare 775nw under the provisions of chapters 74.39A and 41.56 RCW for the 2017-2019 fiscal biennium. Funding is contingent upon the enactment of Senate Bill No. 5969 (transparency in public employee collective bargaining). If the bill is not enacted by July 31, 2017, the appropriation in this subsection shall lapse.

(6) $4,833,000 of the general fund—state appropriation for fiscal year 2018, $13,413,000 of the general fund—state appropriation for fiscal year 2019, and $22,812,000 of the general fund—federal appropriation are provided solely for the homecare agency parity impacts of the agreement between the governor and the service employees international union healthcare 775nw. Funding is contingent upon the enactment of Senate Bill No. 5969 (transparency in public employee collective bargaining). If the bill is not enacted by July 31, 2017, the appropriation in this subsection shall lapse.

(7) $5,094,000 of the general fund—state appropriation for fiscal year 2018 and $5,094,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for services and support to individuals who are deaf, hard of hearing, or deaf-blind.

(8) The department may authorize a one-time waiver of all or any portion of the licensing and processing fees required under RCW 70.128.060 in any case in which the department determines that an adult family home is being relicensed because of exceptional circumstances, such as death or incapacity of a provider, and that to require the full payment of the licensing and processing fees would present a hardship to the applicant. In these situations the department is also granted the authority to waive the required residential administrator training for a period of 120 days if necessary to ensure continuity of care during the relicensing process.

(9) In accordance with RCW 18.390.030, the biennial registration fee for continuing care retirement communities shall be $1,889 for each facility.

(10) $234,000 of the general fund—state appropriation for fiscal year 2018 and (($234,000)) $479,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for the kinship navigator program in the Colville Indian reservation, Yakama Nation, and other tribal areas.

(11) $42,000 of the general fund—state appropriation for fiscal year 2018, $127,000 of the general fund—state appropriation for fiscal year 2019, and $169,000 of the general fund—federal appropriation are provided solely to implement chapter 270, Laws of 2017 (SB 5118) (personal needs allowance).

(12) Within available funds, the aging and long term support administration must maintain a unit within adult protective services that specializes in the investigation of financial abuse allegations and self-neglect allegations.

(13) Within amounts appropriated in this subsection, the department shall assist the legislature to continue the work of the joint legislative executive committee on planning for aging and disability issues.

(a) A joint legislative executive committee on aging and disability is continued, with members as provided in this subsection.

(i) Four members of the senate, with the leaders of the two largest caucuses each appointing two members, and four members of the house of representatives, with the leaders of the two largest caucuses each appointing two members;

(ii) A member from the office of the governor, appointed by the governor;

(iii) The secretary of the department of social and health services or his or her designee;

(iv) The director of the health care authority or his or her designee;

(v) A member from disability rights Washington and a member from the office of long-term care ombuds;

(vi) The insurance commissioner or his or her designee, who shall serve as an ex officio member; and

(vii) Other agency directors or designees as necessary.

(b) The committee must make recommendations and continue to identify key strategic actions to prepare for the aging of the population in Washington, including state budget and policy options, by conducting at least, but not limited to, the following tasks:

(i) Identify strategies to better serve the health care needs of an aging population and people with disabilities to promote healthy living and palliative care planning;

(ii) Identify strategies and policy options to create financing mechanisms for long-term service and supports that allow individuals and families to meet their needs for service;

(iii) Identify policies to promote financial security in retirement, support people who wish to stay in the workplace longer, and expand the availability of workplace retirement savings plans;

(iv) Identify ways to promote advance planning and advance care directives and implementation strategies for the Bree collaborative palliative care and related guidelines;

(v) Identify ways to meet the needs of the aging demographic impacted by reduced federal support;

(vi) Identify ways to protect the rights of vulnerable adults through assisted decision-making and guardianship and other relevant vulnerable adult protections;

(vii) Identify options for promoting client safety through residential care services and consider methods of protecting older people and people with disabilities from physical abuse and financial exploitation;

(viii) Identify other policy options and recommendations to help communities adapt to the aging demographic in planning for housing, land use, and transportation; and

(ix) Identify ways to support individuals with developmental disabilities with long-term care needs who are enrolled members of a federally recognized Indian tribe, or residing in the household of an enrolled members of a federally recognized Indian tribe, and are receiving care from a family member.

(c) At least one committee meeting must be devoted to the exploration of legislation that would allow family members to provide personal care services to persons with developmental disabilities or long-term care needs under a voluntary consumer-directed medicaid service program. During the meeting, the committee should hear testimony from as many impacted parties as possible, including clients, providers, advocacy groups, and staff from state agencies. Testimony should explore program design, program oversight, necessary statutory changes, barriers to implementation, fiscal estimates, and timeline for implementation.

(d) Staff support for the committee shall be provided by the office of program research, senate committee services, the office of financial management, and the department of social and health services.

(e) Within existing appropriations, the cost of meetings must be paid jointly by the senate, house of representatives, and the office of financial management. Joint committee expenditures are subject to approval by the senate facilities and operations committee and the house of representatives executive rules committee, or their successor committees. The joint committee members may be reimbursed for travel expenses as authorized under RCW 43.03.050 and 43.03.060, and chapter 44.04 RCW as appropriate. Advisory committee members may not receive compensation or reimbursement for travel and expenses.

(14)(a) The department of social and health services must facilitate a stakeholder work group consisting of assisted living provider associations and the state long-term care ombuds in a collaborative effort to redesign the medicaid payment methodology for contracted assisted living, adult residential care, and enhanced adult residential care. The department must submit a report with the final work group recommendations to the appropriate legislative committees by November 30, 2017. A proposed timeline for implementation of the new methodology must be included in the report. The new methodology must:

(i) Adhere to the standards of an acuity-based payment system as originally intended by the legislature, and the department will rely on the time study conducted in 2003 in establishing the acuity scale;

(ii) Create a standardized methodology that supports a reasonable medicaid payment that promotes access, choice, and quality;

(iii) Incorporate metrics such as medians, lids, floors, and other options that provide flexibility to adjust to economic conditions while maintaining the integrity of the methodology;

(iv) Be supported by relevant, reliable, verifiable, and independent data to the extent possible; and

(v) To the extent possible, repurpose and streamline data sources and modeling that the aging and long-term support administration uses for other rate-setting processes.

(b) In developing payment metrics for medicaid-covered services, staff and service requirements must be reviewed for assisted living, adult residential care, and enhanced adult residential care as described in chapters 74.39A and 18.20 RCW. At a minimum, the proposed rate methodology must include a component that recognizes staffing for intermittent nursing and personal care services. Service area adjustments based on population density must be reviewed and compared with other options to recognize high-cost areas. The most recent and complete wage data available through the bureau of labor statistics must also be included for review and consideration. The methodology work group must consider operational requirements and indirect services in developing the model. The work group must include a rate component that recognizes statutory and regulatory physical plant requirements. The work group must review and consider physical plant requirements for assisted living as described in chapter 51.50 RCW. A fair rental valuation must be reviewed and considered as an option for the capital component. The recognition of food for medicaid residents must also be included in the work group considerations. The department's current methodology to address room and board requirements, and the appropriateness of the continued use of the 2003 time study and whether it can be reasonably adjusted or whether a new time study should be conducted, must be reviewed and considered by the work group.

(15) Within amounts appropriated in this section, the department must pay medicaid nursing facility payment rates for public hospital district providers in rural communities as defined under chapter 70.44 RCW that are no less than June 30, 2016, reimbursement levels. This action is intended to assure continued access to essential services in rural communities.

(16) $5,370,000 of the general fund—state appropriation for fiscal year 2018, $10,199,000 of the general fund—state appropriation for fiscal year 2019, and $18,346,000 of the general fund—federal appropriation are provided solely for a targeted vendor rate increase to contracted client service providers.

(a) Within the amounts provided in this subsection, $2,763,000 of the general fund—state appropriation for fiscal year 2018, $5,741,000 of the general fund—state appropriation for fiscal year 2019, and $9,775,000 of the general fund—federal appropriation are provided solely for a vendor rate increase of two percent in fiscal year 2018 and an additional two percent in fiscal year 2019 for all contracted vendors with the exception of nursing home providers, the program of all-inclusive care for the elderly, nurse delegators, community residential service providers, individual providers, agency providers, and adult family homes.

(b) Within the amounts provided in this subsection, $2,607,000 of the general fund—state appropriation for fiscal year 2018, $4,458,000 of the general fund—state appropriation for fiscal year 2019, and $8,571,000 of the general fund—federal appropriation are provided solely to increase vendor rates for nursing homes, assisted living facilities including adult residential care and enhanced adult residential care, adult day health and adult day care providers, and home care agency administration in the 2017-2019 fiscal biennium up to the statewide minimum wage established in Initiative Measure No. 1433.

(17) $4,815,000 of the general fund—state appropriation for fiscal year 2018, $8,527,000 of the general fund—state appropriation for fiscal year 2019, and $12,277,000 of the general fund—federal appropriation are provided solely to create new community alternative placement beds that prioritize the transition of clients who are ready for discharge from the state psychiatric hospitals, but who have additional long-term care or developmental disability needs.

(a) Community alternative placement beds include enhanced service facility beds, adult family home beds, skilled nursing facility beds, shared supportive housing beds, state operated living alternative beds, and assisted living facility beds.

(b) Each client must receive an individualized assessment prior to leaving one of the state psychiatric hospitals. The individualized assessment must identify and authorize personal care, nursing care, behavioral health stabilization, physical therapy, or other necessary services to meet the unique needs of each client. It is the expectation that, in most cases, staffing ratios in all community alternative placement options described in (a) of this subsection will need to increase to meet the needs of clients leaving the state psychiatric hospitals. If specialized training is necessary to meet the needs of a client before he or she enters a community placement, then the person centered service plan must also identify and authorize this training.

(c) When reviewing placement options, the department must consider the safety of other residents, as well as the safety of staff, in a facility. An initial evaluation of each placement, including any documented safety concerns, must occur within thirty days of a client leaving one of the state psychiatric hospitals and entering one of the community placement options described in (a) of this subsection. At a minimum, the department must perform two additional evaluations of each placement during the first year that a client has lived in the facility.

(d) During fiscal year 2018, in a presentation to the select committee on quality improvement in state hospitals, the department must describe the process of fielding and subsequently investigating complaints of abuse, neglect, and exploitation within the community alternative placement options described in (a) of this subsection. At a minimum, the presentation must include data about the number of complaints, and the nature of complaints, over the preceding five fiscal years.

(e) During fiscal year 2019, in a presentation to the select committee on quality improvement in state hospitals, the department must provide an update about clients placed out of the state psychiatric hospitals into the community alternative placement options described in (a) of this subsection. At a minimum, for each setting, the presentation must include data about the number of placements, average daily rate, complaints fielded, and complaints investigated. The presentation must also include information about modifications, including the placement of clients into alternate settings, that occurred due to the evaluations required under (c) of this subsection.

In developing bed capacity, the department shall consider the complex needs of individuals waiting for discharge from the state psychiatric hospitals.

(18) $315,000 of the general fund—state appropriation for fiscal year 2018, $315,000 of the general fund—state appropriation for fiscal year 2019, and $630,000 of the general fund—federal appropriation are provided solely for discharge case managers stationed at the state psychiatric hospitals. Discharge case managers will transition clients ready for hospital discharge into less restrictive alternative community placements. The transition of clients ready for discharge will free up bed capacity at the state psychiatric hospitals.

(19) $135,000 of the general fund—state appropriation for fiscal year 2018, $135,000 of the general fund—state appropriation for fiscal year 2019, and $270,000 of the general fund—federal appropriation are provided solely for financial service specialists stationed at the state psychiatric hospitals. Financial service specialists will help to transition clients ready for hospital discharge into alternative community placements. The transition of clients ready for discharge will free up bed capacity at the state hospitals.

(20) $5,007,000 of the general fund—state appropriation for fiscal year 2018, $5,143,000 of the general fund—state appropriation for fiscal year 2019, and $10,154,000 of the general fund—federal appropriation are provided solely to implement chapter 286, Laws of 2017 (SB 5715) (nursing home payments).

(21) $750,000 of the general fund—state appropriation for fiscal year 2018 and $750,000 of the general fund—state appropriation for fiscal year 2019 are provided solely to implement chapter 287, Laws of 2017 (SB 5736) (nutrition programs).

(22) $183,000 of the general fund—state appropriation for fiscal year 2018, $92,000 of the general fund—state appropriation for fiscal year 2019, and $2,479,000 of the general fund—federal appropriation are provided solely to finish the programming necessary to give the department the ability to pay individual provider overtime when hours over 40 hours per week are authorized for payment and are subject to the conditions, limitations, and review provided in section 724 of this act.

(23) $229,000 of the general fund—state appropriation for fiscal year 2018, $229,000 of the general fund—state appropriation for fiscal year 2019, and $458,000 of the general fund—federal appropriation are provided solely to increase the daily rate for private duty nursing in adult family homes by $63.77.

(24) $246,000 of the general fund—state appropriation for fiscal year 2018 and $313,000 of the general fund—federal appropriation are provided solely to implement Senate Bill No. . . . (S-2907.2). If the bill is not enacted by July 31, 2017, the amounts provided in this subsection shall lapse.

(25)(a) No more than $41,388,000 of the general fund—federal appropriation may be expended for tailored support for older adults and medicaid alternative care described in initiative 2 of the medicaid transformation demonstration waiver under healthier Washington. The department shall not increase general fund—state expenditures on this initiative. The secretary in collaboration with the director of the health care authority shall report to the joint select committee on health care oversight no less than quarterly on financial and health outcomes. The secretary in cooperation with the director shall also report to the fiscal committees of the legislature all of the expenditures of this subsection and shall provide such fiscal data in the time, manner, and form requested by the legislative fiscal committees.

(b) No more than $2,200,000 of the general fund—federal appropriation may be expended for supported housing and employment services described in initiative 3a and 3b of the medicaid transformation demonstration waiver under healthier Washington. Under this initiative, the department and the health care authority shall ensure that allowable and necessary services are provided to eligible clients as identified by the department or its providers third party administrator. The department and the authority in consultation with the medicaid forecast work group shall ensure that reasonable reimbursements are established for services deemed necessary within an identified limit per individual. The department shall not increase general fund—state expenditures under this initiative. The secretary in cooperation with the director shall report to the joint select committee on health care oversight no less than quarterly on financial and health outcomes. The secretary in cooperation with the director shall also report to the fiscal committees of the legislature all of the expenditures of this subsection and shall provide such fiscal data in the time, manner, and form requested by the legislative fiscal committees.

(26) $351,000 of the general fund—state appropriation for fiscal year 2018, $421,000 of the general fund—state appropriation for fiscal year 2019, and $1,012,000 of the general fund—federal appropriation are provided solely for increasing the hourly rate for nurse delegators from $32.96 to $45.32 effective September 1, 2017.

(27) $10,017,000 of the general fund—state appropriation for fiscal year 2018, $13,111,000 of the general fund—state appropriation for fiscal year 2019, and $29,104,000 of the general fund—federal appropriation are provided solely for the implementation of an agreement reached between the governor and the adult family home council under the provisions of chapter 41.56 RCW for the 2017-2019 fiscal biennium. Funding is contingent upon the enactment of Senate Bill No. 5969 (transparency in public employee collective bargaining). If the bill is not enacted by July 31, 2017, the amounts provided in this subsection shall lapse.

Sec. 207.  2017 3rd sp.s. c 1 s 207 (uncodified) is amended to read as follows:

General Fund—State Appropriation (FY 2018). . . .(($396,063,000))

      $364,376,000

General Fund—State Appropriation (FY 2019). . . .(($415,638,000))

      $378,511,000

General Fund—Federal Appropriation. . . .(($1,421,095,000))

      $1,445,306,000

General Fund—Private/Local Appropriation. . . .$5,144,000

Administrative Contingency Account—State

Appropriation. . . .$5,400,000

TOTAL APPROPRIATION. . . .(($2,243,340,000))

      $2,228,001,000

The appropriations in this section are subject to the following conditions and limitations:

(1)(a) (($155,022,000)) $127,164,000 of the general fund—state appropriation for fiscal year 2018, (($160,136,000)) $128,881,000 of the general fund—state appropriation for fiscal year 2019, $836,761,000 of the general fund—federal appropriation, ((and)) $5,400,000 of the administrative contingency account—state appropriation, and $8,155,000 of the pension funding stabilization account—state appropriation are provided solely for all components of the WorkFirst program. Within the amounts provided for the WorkFirst program, the department may provide assistance using state-only funds for families eligible for temporary assistance for needy families. The department must create a WorkFirst budget structure that allows for transparent tracking of budget units and subunits of expenditures where these units and subunits are mutually exclusive from other department budget units. The budget structure must include budget units for the following: Cash assistance, child care, WorkFirst activities, and administration of the program. Within these budget units, the department must develop program index codes for specific activities and develop allotments and track expenditures using these codes. The department shall report to the office of financial management and the relevant fiscal and policy committees of the legislature prior to adopting a structure change.

(b) (($267,057,000)) $261,925,000 of the amounts in (a) of this subsection are provided solely for assistance to clients, including grants, diversion cash assistance, and additional diversion emergency assistance including but not limited to assistance authorized under RCW 74.08A.210. The department may use state funds to provide support to working families that are eligible for temporary assistance for needy families but otherwise not receiving cash assistance. Within amounts provided in (b) of this subsection, $1,622,000 of the general fund—state appropriation for fiscal year 2019 is provided solely for implementation of Engrossed Substitute Senate Bill No. 5890 (foster care and adoption). If the bill is not enacted by July 31, 2017, the amount provided in this subsection shall lapse. Of the amounts provided in this subsection (1)(b), $10,565,000 of the general fund—state appropriation for fiscal year 2019 is provided solely for the department to increase the grant standard by eight percent.

(c) (($168,005,000)) $160,490,000 of the amounts in (a) of this subsection are provided solely for WorkFirst job search, education and training activities, barrier removal services, limited English proficiency services, and tribal assistance under RCW 74.08A.040. The department must allocate this funding based on client outcomes and cost effectiveness measures. Amounts provided in (c) of this subsection include funding for implementation of chapter 156, Laws of 2017 (2SSB 5347) (WorkFirst "work activity"). Within amounts provided in (c) of this subsection, the department shall implement the working family support program. The department shall adopt rules to take effect July 31, 2017, to limit the working family support program at 10,000 households.

(((i))) $1,700,000 of the funds appropriated in (c) of this subsection are provided solely for enhanced transportation assistance provided that the department prioritize the use of these funds for the recipients most in need of financial assistance to facilitate their return to work. The department must not utilize these funds to supplant repayment arrangements that are currently in place to facilitate the reinstatement of drivers' licenses.

(d)(i) (($501,608,000)) $478,555,000 of the amounts in (a) of this subsection are provided solely for the working connections child care program under RCW 43.215.135. In order to not exceed the appropriated amount, the department shall manage the program so that the average monthly caseload does not exceed 33,000 households and the department shall give prioritized access into the program according to the following order:

(A) Families applying for or receiving temporary assistance for needy families (TANF);

(B) TANF families curing sanction;

(C) Foster children;

(D) Families that include a child with special needs;

(E) Families in which a parent of a child in care is a minor who is not living with a parent or guardian and who is a full-time student in a high school that has a school-sponsored on-site child care center;

(F) Families with a child residing with a biological parent or guardian who have received child protective services, child welfare services, or a family assessment response from the department in the past six months, and has received a referral for child care as part of the family's case management.

(G) Families that received subsidies within the last thirty days and:

(I) Have reapplied for subsidies; and

(II) Have household income of two hundred percent federal poverty level or below; and

(H) All other eligible families.

(ii) The department, within existing appropriations, must ensure quality control measures for the working connections child care program by maximizing the use of information technology systems and the development or modification of the application and standard operating procedures to ensure that cases are:

(A) Appropriately and accurately processed; and

(B) Routinely monitored for eligibility in a manner that is similar to processes and systems currently in place for regular monitoring in other public assistance programs. Eligibility criteria routinely monitored must include, at a minimum:

(I) Participation in work or other approved activities;

(II) Household composition; and

(III) Maximum number of subsidized child care hours authorized.

The department must submit a preliminary report by December 1, 2017, and a final report by December 1, 2018, to the governor and the appropriate fiscal and policy committees of the legislature detailing the specific actions taken to implement this subsection.

(iii) Of the amounts provided in (d) of this subsection, $4,620,000 of the appropriation for fiscal year 2018 and $4,792,000 of the appropriation for fiscal year 2019 are provided for a base rate increase, a rate increase for Family Friend and Neighbor providers, covering an increase for health insurance premiums, and increasing paid professional development days from three days to five days. This funding is for the 2017-2019 collective bargaining agreement covering family child care providers as set forth in section 940 of this act.

(iv) Of the amounts provided in (d) of this subsection, $8,547,000 of the general fund—state appropriation for fiscal year 2018 and $10,438,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for subsidy base rate increases for child care center providers.

(e) $34,248,000 of the general fund—federal appropriation is provided solely for child welfare services within the department of children, youth, and families.

(f) (($170,442,000)) $171,143,000 of the amounts in (1)(a) of this section are provided solely for WorkFirst and working connections child care administration and overhead. $127,000 of the funds appropriated in this subsection for fiscal year 2019 are provided solely for implementation of chapter 9, Laws of 2017 3rd sp. sess. (working connections child care).

(g) The amounts in subsections (1)(b) through (e) of this section shall be expended for the programs and in the amounts specified. However, the department may transfer up to 10 percent of funding between subsections (1)(b) through (f) of this section. The department shall provide notification prior to any transfer to the office of financial management and to the appropriate legislative committees and the legislative-executive WorkFirst oversight task force. The approval of the director of financial management is required prior to any transfer under this subsection.

(h) Each calendar quarter, the department shall provide a maintenance of effort and participation rate tracking report for temporary assistance for needy families to the office of financial management, the appropriate policy and fiscal committees of the legislature, and the legislative-executive WorkFirst oversight task force. The report must detail the following information for temporary assistance for needy families:

(i) An overview of federal rules related to maintenance of effort, excess maintenance of effort, participation rates for temporary assistance for needy families, and the child care development fund as it pertains to maintenance of effort and participation rates;

(ii) Countable maintenance of effort and excess maintenance of effort, by source, provided for the previous federal fiscal year;

(iii) Countable maintenance of effort and excess maintenance of effort, by source, for the current fiscal year, including changes in countable maintenance of effort from the previous year;

(iv) The status of reportable federal participation rate requirements, including any impact of excess maintenance of effort on participation targets;

(v) Potential new sources of maintenance of effort and progress to obtain additional maintenance of effort; and

(vi) A two-year projection for meeting federal block grant and contingency fund maintenance of effort, participation targets, and future reportable federal participation rate requirements.

(i) In the 2017-2019 fiscal biennium, it is the intent of the legislature to provide appropriations from the state general fund for the purposes of (b) through (f) of this subsection if the department does not receive additional federal temporary assistance for needy families contingency funds in each fiscal year as assumed in the budget outlook.

(2) $1,657,000 of the general fund—state appropriation for fiscal year 2018 and $1,657,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for naturalization services.

(3) $2,366,000 of the general fund—state appropriation for fiscal year 2018 is provided solely for employment services for refugees and immigrants, of which $1,774,000 is provided solely for the department to pass through to statewide refugee and immigrant assistance organizations for limited English proficiency pathway services; and $2,366,000 of the general fund—state appropriation for fiscal year 2019 is provided solely for employment services for refugees and immigrants, of which $1,774,000 is provided solely for the department to pass through to statewide refugee and immigrant assistance organizations for limited English proficiency pathway services.

(4) On ((December)) January 1, 2017, and annually thereafter, the department must report to the governor and the legislature on all sources of funding available for both refugee and immigrant services and naturalization services during the current fiscal year and the amounts expended to date by service type and funding source. The report must also include the number of clients served and outcome data for the clients.

(5) To ensure expenditures remain within available funds appropriated in this section, the legislature establishes the benefit under the state food assistance program, pursuant to RCW 74.08A.120, to be one hundred percent of the federal supplemental nutrition assistance program benefit amount.

(6) The department shall review clients receiving services through the aged, blind, or disabled assistance program, to determine whether they would benefit from assistance in becoming naturalized citizens, and thus be eligible to receive federal supplemental security income benefits. Those cases shall be given high priority for naturalization funding through the department.

(7) (($433,000)) $856,000 of the general fund—state appropriation for fiscal year 2018, (($451,000)) $2,494,000 of the general fund—state appropriation for fiscal year 2019, and (($6,451,000)) $17,203,000 of the general fund—federal appropriation are provided solely for ESAR Architectural Development and are subject to the conditions, limitations, and review provided in section 724 of this act.

(8) The department shall continue the interagency agreement with the department of veterans' affairs to establish a process for referral of veterans who may be eligible for veterans' services. This agreement must include out-stationing department of veterans' affairs staff in selected community service office locations in King and Pierce counties to facilitate applications for veterans' services.

(9) $750,000 of the general fund—state appropriation for fiscal year 2018 and $750,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for operational support of the Washington information network 211 organization.

(10) $90,000 of the general fund—state appropriation for fiscal year 2018, $8,000 of the general fund—state appropriation for fiscal year 2019, and $36,000 of the general fund—federal appropriation are provided solely for implementation of chapter 270, Laws of 2017 (SB 5118) (personal needs allowance).

(11) (($127,000 of the general fund—state appropriation for fiscal year 2019 is provided solely for implementation of Substitute House Bill No. 1624 (working connections child care). If the bill is not enacted by July 31, 2017, the amount provided in this subsection shall lapse.)) $438,000 of the general fund—state appropriation for fiscal year 2019 is provided solely for the implementation of Engrossed Substitute House Bill No. 1831 (public assistance/resources). If the bill is not enacted by June 30, 2018, the amount provided in this subsection shall lapse.

Sec. 208.  2017 3rd sp.s. c 1 s 208 (uncodified) is amended to read as follows:

General Fund—State Appropriation (FY 2018). . . .(($78,842,000))

      $96,763,000

General Fund—Federal Appropriation. . . .(($575,249,000))

      $301,240,000

General Fund—Private/Local Appropriation. . . .(($20,211,000))

      $10,101,000

Criminal Justice Treatment Account—State     

Appropriation. . . .(($12,978,000))

      $6,488,000

Problem Gambling Account—State Appropriation. . . .(($1,453,000))

      $725,000

Dedicated Marijuana Account—State Appropriation

(FY 2018). . . .$24,802,000

TOTAL APPROPRIATION. . . .(($809,645,000))

      $440,383,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $3,278,000 of the dedicated marijuana account—state appropriation for fiscal year 2018 ((and $3,278,000 of the dedicated marijuana account—state appropriation for fiscal year 2019)) are provided solely for a memorandum of understanding with the department of social and health services juvenile rehabilitation administration to provide substance abuse treatment programs for juvenile offenders. Of the amounts provided in this subsection:

(a) $1,130,000 of the dedicated marijuana account—state appropriation for fiscal year 2018 ((and $1,130,000 of the dedicated marijuana account—state appropriation for fiscal year 2019 are)) is provided solely for alcohol and substance abuse treatment programs for locally committed offenders. The juvenile rehabilitation administration shall award these funds as described in section 203(4) of this act.

(b) $282,000 of the dedicated marijuana account—state appropriation for fiscal year ((2017 and $282,000 of the dedicated marijuana account—state appropriation for fiscal year 2019 are)) 2018 is provided solely for the expansion of evidence-based treatments and therapies as described in section 203(2) of this act.

(2) During the 2017-19 fiscal biennium, any amounts provided in this section that are used for case management services for pregnant and parenting women must be contracted directly between the department and providers rather than through contracts with behavioral health organizations.

(3) Within the amounts appropriated in this section, the department may contract with the University of Washington and community-based providers for the provision of the parent-child assistance program or other specialized chemical dependency case management providers for pregnant, post-partum, and parenting women. For all contractors: (i) Service and other outcome data must be provided to the department by request; and (ii) indirect charges for administering the program shall not exceed ten percent of the total contract amount.

(((4) $3,500,000)) $1,750,000 of the general fund—federal appropriation (from the substance abuse prevention and treatment federal block grant) is provided solely for the continued funding of existing county drug and alcohol use prevention programs.

(5) $200,000 of the dedicated marijuana account—state appropriation for fiscal year 2018 ((and $200,000 of the dedicated marijuana account—state appropriation for fiscal year 2019 are)) is provided solely for a contract with the Washington state institute for public policy to conduct cost-benefit evaluations of the implementation of chapter 3, Laws of 2013 (Initiative Measure No. 502).

(6) $500,000 of the dedicated marijuana account—state appropriation for fiscal year 2018 ((and $500,000 of the dedicated marijuana account—state appropriation for fiscal year 2019 are)) is provided solely to design and administer the Washington state healthy youth survey and the Washington state young adult behavioral health survey.

(7) $396,000 of the dedicated marijuana account—state appropriation for fiscal year 2018 ((and $396,000 of the dedicated marijuana account—state appropriation for fiscal year 2019 are)) is provided solely for maintaining increased services to pregnant and parenting women provided through the parent child assistance program.

(8) $250,000 of the dedicated marijuana account—state appropriation for fiscal year 2018 ((and $250,000 of the dedicated marijuana account—state appropriation for fiscal year 2019 are)) is provided solely for a grant to the office of superintendent of public instruction to provide life skills training to children and youth in schools that are in high needs communities.

(9) $386,000 of the dedicated marijuana account—state appropriation for fiscal year 2018 ((and $386,000 of the dedicated marijuana account—state appropriation for fiscal year 2019 are)) is provided solely to maintain increased prevention and treatment services provided by tribes to children and youth.

(10) $2,684,000 of the dedicated marijuana account—state appropriation for fiscal year 2018((, $2,684,000 of the dedicated marijuana account—state appropriation for fiscal year 2019,)) and (($1,900,000)) $950,000 of the general fund—federal appropriation are provided solely to maintain increased residential treatment services for children and youth.

(11) $250,000 of the dedicated marijuana account—state appropriation for fiscal year 2018 ((and $250,000 of the dedicated marijuana account—state appropriation for fiscal year 2019 are)) is provided solely for training and technical assistance for the implementation of evidence based, research based, and promising programs which prevent or reduce substance use disorders.

(12) $2,434,000 of the dedicated marijuana account—state appropriation for fiscal year 2018 ((and $2,434,000 of the dedicated marijuana account—state appropriation for fiscal year 2019 are)) is provided solely for expenditure into the home visiting services account.

(13) $2,500,000 of the dedicated marijuana account—state appropriation for fiscal year 2018 ((and $2,500,000 of the dedicated marijuana account—state appropriation for fiscal year 2019 are)) is provided solely for grants to community-based programs that provide prevention services or activities to youth, including programs for school-based resource officers. These funds must be utilized in accordance with RCW 69.50.540.

(14) Within the amounts provided in this section, behavioral health organizations must provide outpatient chemical dependency treatment for offenders enrolled in the medicaid program who are supervised by the department of corrections pursuant to a term of community supervision. Contracts with behavioral health organizations must require that behavioral health organizations include in their provider network specialized expertise in the provision of manualized, evidence-based chemical dependency treatment services for offenders. The department of corrections and the department must develop a memorandum of understanding for department of corrections offenders on active supervision who are medicaid eligible and meet medical necessity for outpatient substance use disorder treatment. The agreement will ensure that treatment services provided are coordinated, do not result in duplication of services, and maintain access and quality of care for the individuals being served. The department must provide all necessary data, access, and reports to the department of corrections for all department of corrections offenders that receive medicaid paid services.

(15) (($1,125,000)) $563,000 of the general fund—federal appropriation is provided solely for the department to develop a memorandum of understanding with the department of health for implementation of chapter 297, Laws of 2017 (ESHB 1427) (opioid treatment programs). The department must use these amounts to reimburse the department of health for costs incurred through the implementation of the bill.

(16) $891,000 of the general fund—state appropriation for fiscal year 2018((, $2,580,000 of the general fund—state appropriation for fiscal year 2019,)) and (($2,755,000)) $435,000 of the general fund—federal appropriation are provided solely for the development and operation of two secure detoxification facilities. The department must not use any of these amounts for services in facilities that are subject to federal funding restrictions that apply to institutions for mental diseases, unless they have received a waiver that allows for full federal participation in these facilities.

(17) (($1,000,000)) $500,000 of the criminal justice treatment account—state appropriation is provided solely to maintain increased funding for substance abuse treatment and support services for offenders and support of drug courts.

(18) The department must review the treatment services provided by the behavioral health organizations (BHO) to individuals supervised by the department of corrections in the community. In reviewing, the department shall compile data specific to BHOs and in the aggregate for access to services, timeliness, number of referrals from the department of corrections, and number of individuals served. The department will consult with the department of corrections and must report to the governor and the appropriate legislative committees no later than November 30, 2017, the transition of services from the department of corrections to the BHOs and identify barriers to access and services for community supervised individuals and provide recommendations for improved services to this population.

(19) $100,000 of the general fund—state appropriation for fiscal year 2018 ((and $100,000 of the general fund—state appropriation for fiscal year 2019 are)) is provided solely for parenting education services focused on pregnant and parenting women.

(20) Within existing appropriations, the department shall prioritize the prevention and treatment of intravenous opiate-based drug use.

(21) In accordance with RCW 70.96A.090, 71.24.035, 43.20B.110, and 43.135.055, the department is authorized to adopt fees for the review and approval of mental health and substance use disorder treatment programs in fiscal ((years)) year 2018 ((and 2019)) as necessary to support the costs of the regulatory program. The department's fee schedule shall have differential rates for providers with proof of accreditation from organizations that the department has determined to have substantially equivalent standards to those of the department, including but not limited to the joint commission on accreditation of health care organizations, the commission on accreditation of rehabilitation facilities, and the council on accreditation. To reflect the reduced costs associated with regulation of accredited programs, the department's fees for organizations with such proof of accreditation must reflect the lower cost of licensing for these programs than for other organizations which are not accredited. To the extent that the fees charged in fiscal year 2018 are not expected to fully cover the cost of the program, the department must submit a report to the office of financial management and the appropriate fiscal committees of the legislature identifying what further increases would be required and the differential impact on providers. This report must be submitted by December 1, 2017.

Sec. 209.  2017 3rd sp.s. c 1 s 209 (uncodified) is amended to read as follows:

General Fund—State Appropriation (FY 2018). . . .(($14,899,000))

      $13,890,000

General Fund—State Appropriation (FY 2019). . . .(($15,603,000))

      $14,594,000

General Fund—Federal Appropriation. . . .(($97,328,000))

      $109,730,000

TOTAL APPROPRIATION. . . .(($127,830,000))

      $140,238,000

Sec. 210.  2017 3rd sp.s. c 1 s 210 (uncodified) is amended to read as follows:

General Fund—State Appropriation (FY 2018). . . .(($45,488,000))

      $46,202,000

General Fund—State Appropriation (FY 2019). . . .(($46,173,000))

      $47,375,000

TOTAL APPROPRIATION. . . .(($91,661,000))

      $98,435,000

The appropriations in this section are subject to the following conditions and limitations: The special commitment center may use funds appropriated in this subsection to purchase goods ((and)), supplies, and services through hospital group purchasing organizations when it is cost-effective to do so.

Sec. 211.  2017 3rd sp.s. c 1 s 211 (uncodified) is amended to read as follows:

General Fund—State Appropriation (FY 2018). . . .(($36,681,000))

      $33,757,000

General Fund—State Appropriation (FY 2019). . . .(($30,791,000))

      $31,754,000

General Fund—Federal Appropriation. . . .(($39,963,000))

      $44,783,000

TOTAL APPROPRIATION. . . .(($108,089,000))

      $116,541,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $300,000 of the general fund—state appropriation for fiscal year 2018 and (($300,000)) $500,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for a Washington state mentoring organization to continue its public-private partnerships to provide technical assistance and training to mentoring programs that serve at-risk youth.

(2) Within amounts appropriated in this section, the department shall provide to the department of health, where available, the following data for all nutrition assistance programs funded by the United States department of agriculture and administered by the department. The department must provide the report for the preceding federal fiscal year by February 1, 2018, and February 1, 2019. The report must provide:

(a) The number of people in Washington who are eligible for the program;

(b) The number of people in Washington who participated in the program;

(c) The average annual participation rate in the program;

(d) Participation rates by geographic distribution; and

(e) The annual federal funding of the program in Washington.

(3) $1,216,000 of the general fund—state appropriation for fiscal year 2019 and $515,000 of the general fund—federal appropriation are provided solely for the implementation of Engrossed Second Substitute House Bill No. 1661 (child, youth, families department). If the bill is not enacted by July 31, 2017, the amount provided in this subsection shall lapse.

(4) $81,000 of the general fund—state appropriation for fiscal year 2018, $86,000 of the general fund—state appropriation for fiscal year 2019, and $167,000 of the general fund—federal appropriation are provided solely for the implementation of an agreement reached between the governor and the Washington federation of state employees for the language access providers under the provisions of chapter 41.56 RCW for the 2017-2019 fiscal biennium. Funding is contingent upon the enactment of Senate Bill No. 5969 (transparency in public employee collective bargaining). If the bill is not enacted by July 31, 2017, the amounts provided is this subsection shall lapse.

Sec. 212.  2017 3rd sp.s. c 1 s 212 (uncodified) is amended to read as follows:

General Fund—State Appropriation (FY 2018). . . .(($81,319,000))

      $82,017,000

General Fund—State Appropriation (FY 2019). . . .(($43,380,000))

      $42,354,000

General Fund—Federal Appropriation. . . .(($57,578,000))

      $57,287,000

TOTAL APPROPRIATION. . . .(($182,277,000))

      $181,658,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $39,000 of the general fund—state appropriation for fiscal year 2018 and $11,000 of the general fund—federal appropriation are provided solely for the implementation of Engrossed Second Substitute House Bill No. 1661 (child, youth, families department). If the bill is not enacted by July 31, 2017, the amounts provided in this subsection shall lapse.

(2) $12,000 of the general fund—state appropriation for fiscal year 2018, $12,000 of the general fund—state appropriation for fiscal year 2019, and $24,000 of the general fund—federal appropriation are provided solely for the implementation of chapter 268, Laws of 2017 (2SHB 1402) (incapacitated persons/rights).

Sec. 213.  2017 3rd sp.s. c 1 s 213 (uncodified) is amended to read as follows:

During the 2017-2019 fiscal biennium, the health care authority shall provide support and data as required by the office of the state actuary in providing the legislature with health care actuarial analysis, including providing any information in the possession of the health care authority or available to the health care authority through contracts with providers, plans, insurers, consultants, or any other entities contracting with the health care authority.

Information technology projects or investments and proposed projects or investments impacting time capture, payroll and payment processes and systems, eligibility, case management, and authorization systems within the health care authority are subject to technical oversight by the office of the chief information officer.

The health care authority shall not initiate any services that require expenditure of state general fund moneys unless expressly authorized in this act or other law. The health care authority may seek, receive, and spend, under RCW 43.79.260 through 43.79.282, federal moneys not anticipated in this act as long as the federal funding does not require expenditure of state moneys for the program in excess of amounts anticipated in this act. If the health care authority receives unanticipated unrestricted federal moneys, those moneys shall be spent for services authorized in this act or in any other legislation providing appropriation authority, and an equal amount of appropriated state general fund moneys shall lapse. Upon the lapsing of any moneys under this subsection, the office of financial management shall notify the legislative fiscal committees. As used in this subsection, "unrestricted federal moneys" includes block grants and other funds that federal law does not require to be spent on specifically defined projects or matched on a formula basis by state funds.

(1) MEDICAL ASSISTANCE

General Fund—State Appropriation (FY 2018) . . . .(($2,065,747,000))

      $2,024,873,000

General Fund—State Appropriation (FY 2019). . . .(($2,114,943,000))

      $2,083,021,000

General Fund—Federal Appropriation. . . .(($11,503,815,000))

      $11,823,270,000

General Fund—Private/Local Appropriation. . . .(($232,300,000))

      $204,427,000

Emergency Medical Services and Trauma Care Systems

Trust Account—State Appropriation. . . .$15,086,000

Hospital Safety Net Assessment Account—State

Appropriation. . . .(($725,012,000))

      $693,099,000

Medicaid Fraud Penalty Account—State Appropriation. . . .$28,163,000

Medical Aid Account—State Appropriation. . . .$528,000

Dedicated Marijuana Account—State Appropriation

(FY 2018). . . .(($16,205,000))

      $17,616,000

Dedicated Marijuana Account—State Appropriation

(FY 2019). . . .(($17,039,000))

      $18,396,000

TOTAL APPROPRIATION. . . .(($16,718,845,000))

      $16,913,017,000

The appropriations in this section are subject to the following conditions and limitations:

(a) $256,645,000 of the general fund—state appropriation for fiscal year 2018 and $264,704,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for the authority to implement a single, standard medicaid preferred drug list to be used by all contracted medicaid managed health care systems, on or before January 1, 2018. The preferred drug list shall be developed in consultation with all contracted managed health care systems and the state pharmacy and therapeutics committee or drug utilization review board and shall further the goals and objectives of the medicaid program. The list shall be designed to maximize federal rebates and supplemental rebates and ensure access to clinically effective and appropriate drug therapies under each class. Entities eligible for 340B drug pricing shall continue to operate under their current pricing agreement, unless otherwise required by federal laws or regulations. The authority may utilize external consultants with expertise in evidence-based drug class reviews, pharmacy benefit management, and purchasing to assist with the completion of this development and implementation. The authority shall require each managed care organization that has contracted with the authority to provide care to medicaid beneficiaries to use the established preferred drug list; and shall prohibit each managed care organization and any of its agents from negotiating or collecting rebates for any medications listed in the state's medicaid single preferred drug list whether preferred or nonpreferred. To assist in the implementation of the single preferred drug list, contracted medicaid managed health care systems shall provide the authority drug-specific financial information in a format and frequency determined by the authority to include the actual amounts paid to pharmacies for prescription drugs dispensed to covered individuals compared to the cost invoiced to the health plan and individual rebates collected for prescription drugs dispensed to medicaid members. Information disclosed to the authority by the manufacturer pursuant to this provision shall only be used for the purposes of developing and implementing a single, standard state preferred drug list in accordance with this provision. The authority, medicaid managed care organizations, and all other parties shall maintain the confidentiality of drug-specific financial and other proprietary information and such information shall not be subject to the Washington public records act. The authority shall provide a report to the governor and appropriate committees of the legislature by November 15, 2018, and by November 15, 2019, including a comparison of the amount spent in the previous two fiscal years to expenditures under the new system by, at a minimum, fund source, total expenditure, drug class, and top twenty-five drugs. The data provided to the authority shall be aggregated in any report by the authority, the legislature, or the office of financial management so as not to disclose the proprietary or confidential drug-specific information, or the proprietary or confidential information that directly or indirectly identifies financial information linked to a single manufacturer. It is the intent of the legislature to revisit this policy in subsequent biennia to determine whether it is in the best interest of the state.

(b) (($118,813,000)) $113,356,000 of the general fund—state appropriation for fiscal year 2018 and (($120,265,000)) $140,578,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for ((holding)) managed care capitation ((rates flat at calendar year 2017 levels in state fiscal years and calendar years 2018 and 2019)) payments.

(c) $122,244,000 of the general fund—state appropriation for fiscal year 2018 and $116,038,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for the authority through the competitive procurement process, to contract with licensed dental health plans or managed health care plans on a prepaid or fixed-sum risk basis to provide carved-out managed dental care services on a statewide basis that will result in greater efficiency and will facilitate better access and oral health outcomes for medicaid enrollees. Except in areas where only a single plan is available, the authority must contract with at least two plans. The authority shall include in the contracts: (i) Quarterly reporting requirements to include medicaid utilization and encounter data by current dental technology (CDT) code; (ii) a direction to increase the dental provider network; (iii) a commitment to retain innovative programs that improve access and care such as the access to baby and child dentistry program; (iv) a program to reduce emergency room use for dental purposes; (v) a requirement to ensure that dental care is being coordinated with the primary care provider of the patient to ensure integrated care; (vi) a provision that no less than eighty-five percent of the contracting fee be used to directly offset the cost of providing direct patient care as opposed to administrative costs; and (vii) a provision to ensure the contracting fee shall be sufficient to compensate county health departments and federally qualified health centers for dental patient care. The plan(s) awarded this contract must absorb all start-up costs associated with moving the program from fee-for-service to managed care and shall commit to achieving an overall savings to the program based on 2016 fee-for-service experience. In order to comply with state insurance underwriting standards, the authority shall ensure that savings offered by dental plans are actuarially sound. Starting January 31, 2019, and every year thereafter through December 2024, the authority shall submit an annual report to the governor and the appropriate committees of the legislature detailing how the contracted entities have met the requirements of the contract. The report shall include specific information to include utilization, how the contracted entities have increased their dental provider networks, how the emergency room use for dental purposes has been reduced, and how dental care has been integrated with patients' primary care providers. If after the end of five years the data reported does not demonstrate sufficient progress to address the stated contracted goals, the legislature will reevaluate whether carved-out dental managed care needs to be replaced with a different delivery model. The authority is authorized to seek any necessary state plan amendments or federal waivers to implement this subsection. Additional dental program savings achieved by the plans beyond those assumed in the 2017-2019 omnibus appropriations act will be used to increase dental provider reimbursement rates.

(d) (($1,540,849,000 of the general fund—state appropriation for fiscal year 2018 and $1,585,513,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for medicaid services and the medicaid program. However,)) By October 30, 2018, the authority shall report to the governor and the appropriate committees of the legislature anticipated savings related to reduction in dental emergency department visits and utilization once managed care dental coverage begins.

(f) The authority shall not accept or expend any federal funds received under a medicaid transformation waiver under healthier Washington except as described in (((e) and (f))) (g) and (h) of this subsection until specifically approved and appropriated by the legislature. To ensure compliance with legislative directive budget requirements and terms and conditions of the waiver, the authority shall implement the waiver and reporting requirements with oversight from the office of financial management. The legislature finds that appropriate management of the innovation waiver requires better analytic capability, transparency, consistency, timeliness, accuracy, and lack of redundancy with other established measures and that the patient must be considered first and foremost in the implementation and execution of the demonstration waiver. In order to effectuate these goals, the authority shall: (i) Require the Dr. Robert Bree collaborative and the health technology assessment program to reduce the administrative burden upon providers by only requiring performance measures that are nonduplicative of other nationally established measures. The joint select committee on health care oversight will evaluate the measures chosen by the collaborative and the health technology assessment program for effectiveness and appropriateness; (ii) develop a patient satisfaction survey with the goal to gather information about whether it was beneficial for the patient to use the center of excellence location in exchange for additional out-of-pocket savings; (iii) ensure patients and health care providers have significant input into the implementation of the demonstration waiver, in order to ensure improved patient health outcomes; and (iv) in cooperation with the department of social and health services, consult with and provide notification of work on applications for federal waivers, including details on waiver duration, financial implications, and potential future impacts on the state budget, to the joint select committee on health care oversight prior to submitting waivers for federal approval. By federal standard, the medicaid transformation demonstration waiver shall not exceed the duration originally granted by the centers for medicare and medicaid services and any programs created or funded by this waiver do not create an entitlement.

(((e))) (g) No more than (($479,600,000)) $486,683,000 of the general fund—federal appropriation and no more than (($154,289,000)) $129,103,000 of the general fund—local appropriation may be expended for transformation through accountable communities of health described in initiative 1 of the medicaid transformation demonstration wavier under healthier Washington, including preventing youth drug use, opioid prevention and treatment, and physical and behavioral health integration. Under this initiative, the authority shall take into account local input regarding community needs. In order to ensure transparency to the appropriate fiscal committees of the legislature, the authority shall provide fiscal staff of the legislature query ability into any database of the fiscal intermediary that authority staff would be authorized to access. The authority shall not increase general fund—state expenditures under this initiative. The director shall report to the joint select committee on health care oversight no less than quarterly, and include details for each accountable community of health, on the financial status and measurable health outcomes. The director shall also report to the fiscal committees of the legislature all of the expenditures under this subsection and shall provide such fiscal data in the time, manner, and form requested by the legislative fiscal committees. By December 15, 2019, the authority in collaboration with each accountable community of health shall demonstrate how it will be self-sustaining by the end of the demonstration waiver period, including sources of outside funding, and provide this reporting to the joint select committee on health care oversight. If by the third year of the demonstration waiver there are not measurable, improved patient outcomes and financial returns, the Washington state institute for public policy will conduct an audit of the accountable communities of health, in addition to the process set in place through the independent evaluation required by the agreement with centers for medicare and medicaid services. Prior to the 2018 legislative session, the human services, health care, and judiciary committees of the legislature will convene a joint work session to review models in the delivery system and the impacts on medical liability. The work sessions should include integrated delivery models with multiple health care providers and medical malpractice insurance carriers.

(((f))) (h) No more than (($42,584,000)) $38,425,000 of the general fund—federal appropriation may be expended for supported housing and employment services described in initiative 3a and 3b of the medicaid transformation demonstration waiver under healthier Washington. Under this initiative, the authority and the department of social and health services shall ensure that allowable and necessary services are provided to eligible clients as identified by the department or its third party administrator. The authority and the department in consultation with the medicaid forecast work group, shall ensure that reasonable reimbursements are established for services deemed necessary within an identified limit per individual. The authority shall not increase general fund—state expenditures under this initiative. The director shall report to the joint select committee on health care oversight no less than quarterly on financial and health outcomes. The director shall also report to the fiscal committees of the legislature all of the expenditures of this subsection and shall provide such fiscal data in the time, manner, and form requested by the legislative fiscal committees.

(((g))) (i) Sufficient amounts are appropriated in this subsection to implement the medicaid expansion as defined in the social security act, section 1902(a)(10)(A)(i)(VIII).

(((h))) (j) The legislature finds that medicaid payment rates, as calculated by the health care authority pursuant to the appropriations in this act, bear a reasonable relationship to the costs incurred by efficiently and economically operated facilities for providing quality services and will be sufficient to enlist enough providers so that care and services are available to the extent that such care and services are available to the general population in the geographic area. The legislature finds that the cost reports, payment data from the federal government, historical utilization, economic data, and clinical input constitute reliable data upon which to determine the payment rates.

(((i))) (k) Based on quarterly expenditure reports and caseload forecasts, if the health care authority estimates that expenditures for the medical assistance program will exceed the appropriations, the health care authority shall take steps including but not limited to reduction of rates or elimination of optional services to reduce expenditures so that total program costs do not exceed the annual appropriation authority.

(((j))) (l) In determining financial eligibility for medicaid-funded services, the health care authority is authorized to disregard recoveries by Holocaust survivors of insurance proceeds or other assets, as defined in RCW 48.104.030.

(((k))) (m) The legislature affirms that it is in the state's interest for Harborview medical center to remain an economically viable component of the state's health care system.

(((l))) (n) When a person is ineligible for medicaid solely by reason of residence in an institution for mental diseases, the health care authority shall provide the person with the same benefits as he or she would receive if eligible for medicaid, using state-only funds to the extent necessary.

(((m))) (o) $4,261,000 of the general fund—state appropriation for fiscal year 2018, $4,261,000 of the general fund—state appropriation for fiscal year 2019, and $8,522,000 of the general fund—federal appropriation are provided solely for low-income disproportionate share hospital payments.

(((n))) (p) Within the amounts appropriated in this section, the health care authority shall provide disproportionate share hospital payments to hospitals that provide services to children in the children's health program who are not eligible for services under Title XIX or XXI of the federal social security act due to their citizenship status.

(((o))) (q) $6,000,000 of the general fund—federal appropriation is provided solely for supplemental payments to nursing homes operated by public hospital districts. The public hospital district shall be responsible for providing the required nonfederal match for the supplemental payment, and the payments shall not exceed the maximum allowable under federal rules. It is the legislature's intent that the payments shall be supplemental to and shall not in any way offset or reduce the payments calculated and provided in accordance with part E of chapter 74.46 RCW. It is the legislature's further intent that costs otherwise allowable for rate-setting and settlement against payments under chapter 74.46 RCW shall not be disallowed solely because such costs have been paid by revenues retained by the nursing home from these supplemental payments. The supplemental payments are subject to retrospective interim and final cost settlements based on the nursing homes' as-filed and final medicare cost reports. The timing of the interim and final cost settlements shall be at the health care authority's discretion. During either the interim cost settlement or the final cost settlement, the health care authority shall recoup from the public hospital districts the supplemental payments that exceed the medicaid cost limit and/or the medicare upper payment limit. The health care authority shall apply federal rules for identifying the eligible incurred medicaid costs and the medicare upper payment limit.

(((p))) (r) The health care authority shall continue the inpatient hospital certified public expenditures program for the 2017-2019 fiscal biennium. The program shall apply to all public hospitals, including those owned or operated by the state, except those classified as critical access hospitals or state psychiatric institutions. The health care authority shall submit reports to the governor and legislature by November 1, 2017, and by November 1, 2018, that evaluate whether savings continue to exceed costs for this program. If the certified public expenditures (CPE) program in its current form is no longer cost-effective to maintain, the health care authority shall submit a report to the governor and legislature detailing cost-effective alternative uses of local, state, and federal resources as a replacement for this program. During fiscal year 2018 and fiscal year 2019, hospitals in the program shall be paid and shall retain one hundred percent of the federal portion of the allowable hospital cost for each medicaid inpatient fee-for-service claim payable by medical assistance and one hundred percent of the federal portion of the maximum disproportionate share hospital payment allowable under federal regulations. Inpatient medicaid payments shall be established using an allowable methodology that approximates the cost of claims submitted by the hospitals. Payments made to each hospital in the program in each fiscal year of the biennium shall be compared to a baseline amount. The baseline amount will be determined by the total of (i) the inpatient claim payment amounts that would have been paid during the fiscal year had the hospital not been in the CPE program based on the reimbursement rates developed, implemented, and consistent with policies approved in the 2017-2019 biennial operating appropriations act and in effect on July 1, 2015, (ii) one-half of the indigent assistance disproportionate share hospital payment amounts paid to and retained by each hospital during fiscal year 2005, and (iii) all of the other disproportionate share hospital payment amounts paid to and retained by each hospital during fiscal year 2005 to the extent the same disproportionate share hospital programs exist in the 2017-2019 fiscal biennium. If payments during the fiscal year exceed the hospital's baseline amount, no additional payments will be made to the hospital except the federal portion of allowable disproportionate share hospital payments for which the hospital can certify allowable match. If payments during the fiscal year are less than the baseline amount, the hospital will be paid a state grant equal to the difference between payments during the fiscal year and the applicable baseline amount. Payment of the state grant shall be made in the applicable fiscal year and distributed in monthly payments. The grants will be recalculated and redistributed as the baseline is updated during the fiscal year. The grant payments are subject to an interim settlement within eleven months after the end of the fiscal year. A final settlement shall be performed. To the extent that either settlement determines that a hospital has received funds in excess of what it would have received as described in this subsection, the hospital must repay the excess amounts to the state when requested. (($10,575,000)) $359,000 of the general fund—state appropriation for fiscal year 2018 and (($13,185,000)) $361,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for state grants for the participating hospitals.

(((q))) (s) The health care authority shall seek public-private partnerships and federal funds that are or may become available to provide on-going support for outreach and education efforts under the federal children's health insurance program reauthorization act of 2009.

(((r))) (t) The health care authority shall target funding for maternity support services towards pregnant women with factors that lead to higher rates of poor birth outcomes, including hypertension, a preterm or low birth weight birth in the most recent previous birth, a cognitive deficit or developmental disability, substance abuse, severe mental illness, unhealthy weight or failure to gain weight, tobacco use, or African American or Native American race. The health care authority shall prioritize evidence-based practices for delivery of maternity support services. To the extent practicable, the health care authority shall develop a mechanism to increase federal funding for maternity support services by leveraging local public funding for those services.

(((s))) (u) The authority shall submit reports to the governor and the legislature by September 15, 2018, and no later than September 15, 2019, that delineate the number of individuals in medicaid managed care, by carrier, age, gender, and eligibility category, receiving preventative services and vaccinations. The reports should include baseline and benchmark information from the previous two fiscal years and should be inclusive of, but not limited to, services recommended under the United States preventative services task force, advisory committee on immunization practices, early and periodic screening, diagnostic, and treatment (EPSDT) guidelines, and other relevant preventative and vaccination medicaid guidelines and requirements.

(((t))) (v) Managed care contracts must incorporate accountability measures that monitor patient health and improved health outcomes, and shall include an expectation that each patient receive a wellness examination that documents the baseline health status and allows for monitoring of health improvements and outcome measures.

(((u))) (w) Sufficient amounts are appropriated in this section for the authority to provide an adult dental benefit.

(((v))) (x) The health care authority shall coordinate with the department of social and health services to provide referrals to the Washington health benefit exchange for clients that will be ineligible for medicaid.

(((w))) (y) To facilitate a single point of entry across public and medical assistance programs, and to maximize the use of federal funding, the health care authority, the department of social and health services, and the health benefit exchange will coordinate efforts to expand HealthPlanfinder access to public assistance and medical eligibility staff. The health care authority shall complete medicaid applications in the HealthPlanfinder for households receiving or applying for medical assistance benefits.

(((x))) (z) $90,000 of the general fund—state appropriation for fiscal year 2018, $90,000 of the general fund—state appropriation for fiscal year 2019, and $180,000 of the general fund—federal appropriation are provided solely to continue operation by a nonprofit organization of a toll-free hotline that assists families to learn about and enroll in the apple health for kids program.

(((y))) (aa) The appropriations in this section reflect savings and efficiencies by transferring children receiving medical care provided through fee-for-service to medical care provided through managed care.

(((z))) (bb) Within the amounts appropriated in this section, the authority shall reimburse for primary care services provided by naturopathic physicians.

(((aa))) (cc) Within the amounts appropriated in this section, the authority shall continue to provide coverage for pregnant teens that qualify under existing pregnancy medical programs, but whose eligibility for pregnancy related services would otherwise end due to the application of the new modified adjusted gross income eligibility standard.

(((bb))) (dd) Sufficient amounts are appropriated in this section to remove the mental health visit limit and to provide the shingles vaccine and screening, brief intervention, and referral to treatment benefits that are available in the medicaid alternative benefit plan in the classic medicaid benefit plan.

(((cc))) (ee) The authority shall use revenue appropriated from the dedicated marijuana fund for contracts with community health centers under RCW 69.50.540 in lieu of general fund—state payments to community health centers for services provided to medical assistance clients, and it is the intent of the legislature that this policy will be continued in subsequent fiscal biennia.

(((dd))) (ff) $127,000 of the general fund—state appropriation for fiscal year 2018 and $1,144,000 of the general fund—federal appropriation are provided solely to the ProviderOne provider overtime project and are subject to the conditions, limitations, and review provided in section 724 of this act.

(((ee))) (gg) $175,000 of the general fund—state appropriation for fiscal year 2018 and $825,000 of the general fund—federal appropriation are provided solely to the ProviderOne CORE operating rules project and are subject to the conditions, limitations, and review provided in section 724 of this act.

(((ff) $2,200,000)) (hh) $1,483,000 of the general fund—state appropriation for fiscal year 2018 ((and $2,701,000)), $1,594,000 of the general fund—state appropriation for fiscal year 2019, and $1,509,000 of the general fund—federal appropriation are provided ((solely)) for a rate increase effective July 1, 2018 and performance payments to reward successful beneficiary engagement in the health homes program for ((dual eligible)) fee-for-service enrollees and these are the maximum amounts in each fiscal year the authority may expend for this purpose.

(((gg))) (ii) $450,000 of the general fund—state appropriation for fiscal year 2018, $450,000 of the general fund—state appropriation for fiscal year 2019, and $1,058,000 of the general fund—federal appropriation are provided solely for the authority to hire ten nurse case managers to coordinate medically assisted treatment and movements to medical homes for those being treated for opioid use disorder. Nurses shall be located in areas and provider settings with the highest concentration of opioid use disorder patients.

(((hh))) (jj) Sufficient amounts are appropriated in this section for the authority to provide a collaborative care benefit beginning July 1, 2017.

(((ii))) (kk) The authority and the department of social and health services shall convene a work group consisting of representatives of skilled nursing facilities, adult family homes, assisted living facilities, managers of in-home long-term care, hospitals, and managed health care systems. The work group shall identify barriers that may prevent skilled nursing facilities from accepting and admitting clients from acute care hospitals in a timely and appropriate manner. The work group shall consider what additional resources are needed to allow for faster transfers of enrollees, including those with complex needs. By December 1, 2017, the authority shall report the work group's findings to the governor and the appropriate committees of the legislature.

(((jj))) (ll) Within the amounts appropriated within this section, the authority shall implement the plan to show how improved access to home health nursing reduces potentially preventable readmissions, increases access to care, reduces hospital length of stay, and prevents overall hospital admissions for clients receiving private duty nursing, medically intensive care, or home health benefits as described in their report to the legislature dated December 15, 2016, entitled home health nursing. The authority shall report to the governor and appropriate committees of the legislature by December 31, 2017, information regarding the effect of the ten dollar rate increases for skilled nursing care delivered via private duty nursing or home health nursing, and how the rate changes impacted the utilization and cost of emergency room visits, reduced the length of stay for initial hospital admissions, and reduced utilization and costs of preventable hospital readmissions. The report will quantify potential cost saving opportunities that may exist through improved access to private duty and home health nursing statewide.

(((kk))) (mm) Within the amounts appropriated within this section, beginning July 1, 2017, the authority must increase facility fees to birth centers to the amount listed on page two of their report to the legislature dated October 15, 2016, entitled reimbursement for births performed at birth centers. This increased rate is applicable in both a fee for service setting and is the minimum allowable rate in a managed care setting. The authority shall report to the governor and appropriate committees of the legislature by October 15, 2018, updated information regarding access to care, improvements to the Cesarean section rate, and savings outcomes for utilizing birth centers as an alternative to hospitals.

(((ll))) (nn) Beginning no later than January 1, 2018, for any service eligible under the medicaid state plan for encounter payments, managed care organizations at the request of a rural health clinic shall pay the full published encounter rate directly to the clinic. At no time will a managed care organization be at risk for or have any right to the supplemental portion of the claim. Payments will be reconciled on at least an annual basis between the managed care organization and the authority, with final review and approval by the authority. By September 31, 2017, the authority shall report to the legislature on its progress implementing this subsection.

(((mm))) (oo) Within the amounts appropriated in this section, and in consultation with appropriate parties, including the rural health clinic association of Washington and the centers for medicare and medicaid services, by December 1, 2017, the authority shall submit a report to the governor and appropriate committees of the legislature evaluating legislative and administrative options to reduce or eliminate any amounts owed by rural health clinics under the payment reconciliation process established in the medicaid state plan.

(((nn))) (pp) $500,000 of the general fund—state appropriation for fiscal year 2019 and $500,000 of the general fund—federal appropriation are provided solely for the authority to implement the oral health connections pilot project in ((Yakima, Adams,)) Spokane, Thurston, and Cowlitz counties. The authority shall work in collaboration with Washington dental service foundation to jointly develop and implement the program. The purpose of the three-year pilot is to test the effect that enhanced dental benefits for adult medicaid clients with diabetes and pregnant women have on access to dental care, health outcomes, and medical care costs. The authority must model the pilot on the access to baby and child dentistry program. The pilot program must include enhanced reimbursement rates for participating dental providers, including denturists licensed under chapter 18.30 RCW, and an increase in the allowable number of periodontal treatments to up to four per calendar year. Diabetic or pregnant adult medicaid clients who are receiving dental care within the pilot region(s), regardless of location of the service within the pilot region(s), are eligible for the increased number of periodontal treatments. The Washington dental service foundation shall partner with the authority and provide wraparound services to link patients to care. The authority and Washington dental service foundation shall jointly develop the program. The authority and foundation shall provide a joint progress report to the appropriate committees of the legislature on December 1, 2017, and December 1, 2018.

(((oo))) (qq) Sufficient amounts are appropriated in this section to increase the daily rate by $155.20 for skilled nursing performed by licensed practical nurses and registered nurses who serve medically intensive children's program clients who reside in a group home setting.

(((pp))) (rr) During the 2017-2019 fiscal biennium, the authority must revise its agreements and contracts with vendors to include a provision to require that each vendor agrees to equality among its workers by ensuring similarly employed individuals are compensated as equals as follows:

(i) Employees are similarly employed if the individuals work for the same employer, the performance of the job requires comparable skill, effort, and responsibility, and the jobs are performed under similar working conditions. Job titles alone are not determinative of whether employees are similarly employed;

(ii) Vendors may allow differentials in compensation for its workers based in good faith on any of the following:

(A) A seniority system; a merit system; a system that measures earnings by quantity or quality of production; a bona fide job-related factor or factors; or a bona fide regional difference in compensation levels.

(B) A bona fide job-related factor or factors may include, but not be limited to, education, training, or experience, that is: Consistent with business necessity; not based on or derived from a gender-based differential; and accounts for the entire differential.

(C) A bona fide regional difference in compensation level must be: Consistent with business necessity; not based on or derived from a gender-based differential; and account for the entire differential.

(iii) The provision must allow for the termination of the contract if the authority or department of enterprise services determines that the vendor is not in compliance with this agreement or contract term.

(iv) The authority must implement this provision with any new contract and at the time of renewal of any existing contract.

(((qq))) (ss) $100,000 of the general fund—state appropriation for fiscal year 2018 and $100,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for a pilot program for treatment of inmates at the Snohomish county jail who are undergoing detoxification from heroin and other opioids and for connecting those individuals with treatment providers in the community upon their release.

(((rr))) (tt) $6,487,000 of the general fund—state appropriation for fiscal year 2018 and $1,340,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for the physical health care costs of medicaid clients receiving services in facilities classified as institutions for mental diseases for longer than 15 days in a calendar month. The authority must apply for a waiver from the center for medicare and medicaid services to allow for the full cost of stays in institutions for mental diseases to be included in managed care rates beginning on July 1, 2018. The authority must submit a report on the status of the waiver to the office of financial management and the appropriate committees of the legislature by December 1, 2017.

(((ss))) (uu) The authority shall evaluate adding a tele-pyschiatry consultation benefit for medicaid covered individuals. The authority shall submit a report with the cost associated with adding such a benefit to the governor and appropriate committees of the legislature by October 1, 2017.

(((tt))) (vv) $33,000 of the general fund—state appropriation for fiscal year 2018, (($7,000 of the state health care authority administrative account—state appropriation,)) and $42,000 of the general fund—federal appropriation are provided solely for the bleeding disorder collaborative for care.

(((uu))) (ww) $304,000 of the general fund—state appropriation for fiscal year 2018, $304,000 of the general fund—state appropriation for fiscal year 2019, and $608,000 of the general fund—federal appropriation are provided solely for the authority to contract with the University of Washington tele-pain pain management program and pain management call center to advance primary care provider knowledge of complex pain management issues, including opioid addiction.

(((vv))) (xx) $165,000 of the general fund—state appropriation for fiscal year 2018, $329,000 of the general fund—state appropriation for fiscal year 2019, and $604,000 of the general fund—federal appropriation are provided solely for implementation of chapter 202, Laws of 2017 (Engrossed Second Substitute House Bill No. 1713) (children's mental health).

(((ww))) (yy) $1,813,000 of the general fund—state appropriation for fiscal year 2018, $3,764,000 of the general fund—state appropriation for fiscal year 2019, and $12,930,000 of the general fund—federal appropriation are provided solely for implementation of chapter 110, Laws of 2017 (Second Substitute House Bill No. 1338) (state health insurance pool).

(((xx) $347,000)) (zz) $69,000 of the general fund—state appropriation for fiscal year 2018, (($839,000)) $1,118,000 of the general fund—state appropriation for fiscal year 2019, and $943,000 of the general fund—federal appropriation are provided solely for implementation of chapter 198, Laws of 2017 (Substitute House Bill No. 1520) (hospital payment methodology).

(((yy))) (aaa) Sufficient amounts are appropriated in this section for the implementation of chapter 273, Laws of 2017 (Engrossed Second Substitute House Bill No. 1358) (community asst. referral programs).

(((zz))) (bbb) $69,000 of the general fund—state appropriation for fiscal year 2018, $560,000 of the general fund—state appropriation for fiscal year 2019, and $308,000 of the general fund—federal appropriation are provided solely for the authority to implement, operate, and maintain a provider credentialing system and are subject to the conditions, limitations, and review provided in section 724 of this act. The authority, in collaboration with the department of health, department of corrections, department of social and health services, the public employees' benefits board, and the department of labor and industries, shall work to ensure that a single platform provider credentialing system is implemented. The authority, departments, and board shall ensure that appropriate cost offsets and cost avoidance are assumed for reduced staff time required for provider credentialing activity and reductions in improper billing activity when implementing provider credentialing systems. The authority must enter into agreements with the department of labor and industries and the public employees' benefits board to pay their share of the costs of implementing and operating a new provider credentialing system. The authority shall submit a report to the office of financial management and appropriate committees of the legislature outlining projected cost savings and cost avoidance no later than December 1, 2018.

(2) PUBLIC EMPLOYEES' BENEFITS BOARD AND EMPLOYEE BENEFITS PROGRAMS

State Health Care Authority Administration Account—

State Appropriation. . . .(($42,061,000))

      $63,221,000

The appropriation in this subsection is subject to the following conditions and limitations:

(a) The authority and the public employees' benefits board shall consult with the Washington state institute for public policy on the cost-effectiveness of the wellness plan and any changes to the plan that can be made to increase the health care efficiency of the wellness plan. The authority shall report its findings to the governor and the appropriate committees of the legislature by October 15, 2018.

(b) The authority and the public employees' benefits board shall ensure that procurement for employee health benefits during the 2019-2021 fiscal biennium is consistent with the funding limitations provided in part 9 of this act.

(c) $236,000 of the state health care authority administration account—state appropriation for fiscal year 2018 and $236,000 of the state health care authority administration account—state appropriation for fiscal year 2019 are provided solely to the affordable care act employer shared responsibility project and are subject to the conditions, limitations, and review provided in section 724 of this act.

(d) All savings resulting from reduced claim costs or other factors identified after December 31, 2016, must be reserved for funding employee health benefits in the 2019-2021 fiscal biennium. Any changes to benefits, including covered prescription drugs, must be approved by the public employees' benefits board. Upon procuring benefits for calendar years 2018 and 2019, the public employees' benefits board shall: (1) Not consider any changes to benefits, including prescription drugs, without considering comprehensive analysis of the cost of those changes; and (2) not adopt a package of benefits and premiums that results in a projected unrestricted reserve funding level lower than was projected under the assumptions made prior to procurement. For this purpose, assumptions means projections about the levels of future claims, costs, enrollment and other factors, prior to any changes in benefits. The certificates of coverage agreed to by the health care authority for calendar years 2018 and 2019 must ensure that no increases in coverage of prescription drugs, services, or other benefits may occur prior to approval by the public employees' benefits board at the time of procurement of benefits for the ensuing calendar year. The public employees' benefits board may, within the funds provided, adopt a virtual diabetes prevention program and adjust the waiting period for dental crown replacement in the Uniform dental program to align with the dental managed care plans.

(e) Within the amounts appropriated within this section, the authority, in consultation with one Washington within the office of financial management, the office of the chief information officer, and other state agencies with statewide payroll or benefit systems, shall prepare a report describing options for the replacement of the Pay 1 information technology system. The report shall evaluate the potential costs, benefits, and feasibility of integrating the functions currently performed by Pay 1 into an existing or new statewide system, as well for a stand-alone system. The report shall also update the business and system requirements documents previously developed for a Pay 1 replacement system. This report shall be provided to the governor and appropriate committees of the legislature by September 30, 2018.

(f) (($8,000,000)) $28,730,000 of the health care authority administrative account—state appropriation is provided solely for implementation of the school employees' benefits board until the new board commences provision of benefits on January 1, 2020. This expenditure shall be reimbursed to the health care authority administrative account from the newly created school employees' insurance administrative account after January 1, 2020.

(g) The public employees' benefits board, in collaboration with the authority, shall work to ensure that a single platform provider credentialing system is implemented. The authority and the board shall ensure that appropriate cost offsets and cost avoidance are assumed for reduced staff time required for provider credentialing activity and reductions in improper billing activity when implementing provider credentialing systems. The board must enter into an agreement with the authority to pay its share of the costs of implementing and operating a new provider credentialing system.

(3) SCHOOL EMPLOYEES' BENEFITS BOARD

(4) HEALTH BENEFIT EXCHANGE

General Fund—State Appropriation (FY 2018). . . .$5,184,000

General Fund—State Appropriation (FY 2019). . . .(($5,184,000))

      $5,701,000

General Fund—Federal Appropriation. . . .(($52,837,000))

      $53,892,000

Health Benefit Exchange Account—State Appropriation. . . .(($56,736,000))

      $59,385,000

TOTAL APPROPRIATION. . . .(($119,941,000))

      $124,162,000

The appropriations in this subsection are subject to the following conditions and limitations:

(a) The receipt and use of medicaid funds provided to the health benefit exchange from the health care authority are subject to compliance with state and federal regulations and policies governing the Washington apple health programs, including timely and proper application, eligibility, and enrollment procedures.

(b)(i) By July 15th and January 15th of each year, the authority shall make a payment of one-half the general fund—state appropriation and one-half the health benefit exchange account—state appropriation to the exchange.

(ii) For the 2017-2019 biennium, for the purpose of annually calculating issuer assessments, exchange operational costs may include up to three months of additional operating costs.

(iii) The exchange shall monitor actual to projected revenues and make necessary adjustments in expenditures or carrier assessments to ensure expenditures do not exceed actual revenues.

(iv) Payments made from general fund—state appropriation and health benefit exchange account—state appropriation shall be available for expenditure for no longer than the period of the appropriation from which it was made. When the actual cost of materials and services have been fully determined, and in no event later than the lapsing of the appropriation, any unexpended balance of the payment shall be returned to the authority for credit to the fund or account from which it was made, and under no condition shall expenditures exceed actual revenue.

Sec. 214.  2017 3rd sp.s. c 1 s 214 (uncodified) is amended to read as follows:

General Fund—State Appropriation (FY 2018) . . . .(($2,317,000))

      $2,298,000

General Fund—State Appropriation (FY 2019) . . . .(($2,359,000))

      $2,330,000

General Fund—Federal Appropriation . . . .$2,427,000

TOTAL APPROPRIATION. . . .(($7,103,000))

     $7,245,000

Sec. 215.  2017 3rd sp.s. c 1 s 215 (uncodified) is amended to read as follows:

Worker and Community Right-to-Know Account—State

Appropriation . . . .$10,000

Accident Account—State Appropriation . . . .(($22,437,000))

      $22,434,000

Medical Aid Account—State Appropriation . . . .(($22,438,000))

      $22,435,000

TOTAL APPROPRIATION. . . .(($44,885,000))

     $44,879,000

Sec. 216.  2017 3rd sp.s. c 1 s 216 (uncodified) is amended to read as follows:

General Fund—State Appropriation (FY 2018) . . . .(($21,703,000))

      $21,662,000

General Fund—State Appropriation (FY 2019) . . . .(($20,705,000))

      $23,170,000

General Fund—Private/Local Appropriation . . . .(($5,905,000))

      $6,785,000

Death Investigations Account—State Appropriation . . . .$148,000

Municipal Criminal Justice Assistance Account—State

Appropriation . . . .$460,000

Washington Auto Theft Prevention Authority Account—State

Appropriation . . . .$8,167,000

24/7 Sobriety Account—State Appropriation . . . .(($30,000))

      $20,000

TOTAL APPROPRIATION. . . .(($57,118,000))

     $60,872,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $5,000,000 of the general fund—state appropriation for fiscal year 2018 and $5,000,000 of the general fund—state appropriation for fiscal year 2019, are provided to the Washington association of sheriffs and police chiefs solely to verify the address and residency of registered sex offenders and kidnapping offenders under RCW 9A.44.130. The association may use no more than $50,000 per fiscal year of the amounts provided on program management activities.

(2) $1,284,000 of the general fund—state appropriation for fiscal year 2018 and (($1,283,000)) $1,712,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for seventy-five percent of the costs of providing six additional statewide basic law enforcement trainings in ((each)) fiscal year 2018, and eight additional statewide basic law enforcement trainings in fiscal year 2019. The criminal justice training commission must schedule its funded classes to minimize wait times throughout each fiscal year and meet statutory wait time requirements.

(3) (($745,000)) $791,520 of the general fund—local appropriation is provided solely to purchase ammunition for the basic law enforcement academy. Jurisdictions shall reimburse to the criminal justice training commission the costs of ammunition, based on the average cost of ammunition per cadet, for cadets that they enroll in the basic law enforcement academy.

(4) The criminal justice training commission may not run a basic law enforcement academy class of fewer than 30 students.

(5) $100,000 of the general fund—state appropriation for fiscal year 2018 and $100,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for a school safety program. The commission, in collaboration with the school safety center advisory committee, shall provide the school safety training for all school administrators and school safety personnel hired after the effective date of this section.

(6) $96,000 of the general fund—state appropriation for fiscal year 2018 and $96,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for the school safety center within the commission. The safety center shall act as an information dissemination and resource center when an incident occurs in a school district in Washington or in another state, coordinate activities relating to school safety, and review and approve manuals and curricula used for school safety models and training. Through an interagency agreement, the commission shall provide funding for the office of the superintendent of public instruction to continue to develop and maintain a school safety information web site. The school safety center advisory committee shall develop and revise the training program, using the best practices in school safety, for all school safety personnel. The commission shall provide research-related programs in school safety and security issues beneficial to both law enforcement and schools.

(7) $146,000 of the general fund—state appropriation for fiscal year 2018 and $146,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for the costs of providing statewide advanced driving training with the use of a driving simulator.

(8) $679,000 of the general fund—state appropriation for fiscal year 2018 and $587,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for implementation of chapter 261, Laws of 2017 (SHB 1501) (attempts to obtain firearms).

(9) $57,000 of the general fund—state appropriation for fiscal year 2018 is provided solely for implementation of chapter 295, Laws of 2017 (SHB 1258) (first responders/disability).

(10) $198,000 of the general fund—state appropriation for fiscal year 2018 and $414,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for implementation of chapter 290, Laws of 2017 (ESHB 1109) (victims of sexual assault).

(11) $117,000 of the general fund—state appropriation for fiscal year 2018, $117,000 of the general fund—state appropriation for fiscal year 2019, and $1,000,000 of the Washington auto theft prevention account—state appropriation are provided solely for the first responder building mapping information system.

(12) $595,000 of the general fund—state appropriation for fiscal year 2018 and $595,000 of the general fund—state appropriation for fiscal year 2019 are provided solely to continue crisis intervention training required in chapter 87, Laws of 2015.

(13) $250,000 of the general fund—state appropriation for fiscal year 2018 and $250,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for the criminal justice training commission to deliver research-based programs to instruct, guide, and support local law enforcement agencies in fostering the "guardian philosophy" of policing, which emphasizes de-escalating conflicts and reducing the use of force.

(14) $429,000 of the general fund—state appropriation for fiscal year 2018 and $429,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for expenditure into the nonappropriated Washington internet crimes against children account for the implementation of chapter 84, Laws of 2015.

(15) $842,000 of the general fund—state appropriation for fiscal year 2018 and $353,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for the purpose of creating and funding on an ongoing basis the: (a) Updating and providing of basic and in-service training for peace officers and corrections officers that emphasizes de-escalation and use of less lethal force; and (b) creation and provision of an evidence-based leadership development program, in partnership with Microsoft, that trains, equips, and supports law enforcement leaders using research-based strategies to reduce crime and improve public trust.

(16) $100,000 of the general fund—state appropriation for fiscal year 2018 and $100,000 of the general fund—state appropriation for fiscal year 2019 are provided solely to the Washington association of sheriffs and police chiefs to fund pilot projects in Benton county to support local law enforcement education for law enforcement, medical professionals, first responders, courts, educators, and others to raise awareness and identifying warning signs of human trafficking. Any educational opportunities created through the pilot projects in Benton county may provide access for adjacent counties if resources and availability permits.

(17) $500,000 of the general fund—state appropriation for fiscal year 2018 is provided solely to the Washington association of sheriffs and police chiefs to administer statewide training in the use of the Washington state gang database, established in compliance with RCW 43.43.762, and provide grant funding to ensure agencies enter appropriate and reliable data into the database. The training shall develop professionals with regional responsibilities for database administration throughout the state.

Sec. 217.  2017 3rd sp.s. c 1 s 217 (uncodified) is amended to read as follows:

General Fund—State Appropriation (FY 2018) . . . .(($7,671,000))

      $6,511,000

General Fund—State Appropriation (FY 2019) . . . .(($8,897,000))

      $7,838,000

General Fund—Federal Appropriation . . . .$11,876,000

Asbestos Account—State Appropriation . . . .$527,000

Electrical License Account—State Appropriation . . . .(($52,100,000))

      $53,851,000

Farm Labor Contractor Account—State Appropriation . . . .$28,000

Worker and Community Right-to-Know Account—State

Appropriation . . . .$993,000

Public Works Administration Account—State

Appropriation . . . .(($6,303,000))

      $8,529,000

Manufactured Home Installation Training

Account—State Appropriation . . . .$378,000

Accident Account—State Appropriation . . . .(($320,314,000))

      $321,179,000

Accident Account—Federal Appropriation . . . .$16,765,000

Medical Aid Account—State Appropriation . . . .(($333,053,000))

      $333,862,000

Medical Aid Account—Federal Appropriation . . . .$3,739,000

Plumbing Certificate Account—State Appropriation . . . .$1,882,000

Pressure Systems Safety Account—State Appropriation . . . .$4,442,000

Construction Registration Inspection Account—State

Appropriation. . . .(($19,128,000))

      $20,706,000

TOTAL APPROPRIATION. . . .(($788,096,000))

     $794,541,000

The appropriations in this section are subject to the following conditions and limitations:

(((3))) (1) $123,000 of the accident account—state appropriation and $22,000 of the medical aid—state appropriation are provided solely for implementation of chapter 150, Laws of 2017 (House Bill No. 1906) (farm internship).

(((4))) (2) The department, in collaboration with the health care authority, shall work to ensure that a single platform provider credentialing system is implemented. The authority and department shall ensure that appropriate cost offsets and cost avoidance are assumed for reduced staff time required for provider credentialing activity and reductions in improper billing activity when implementing provider credentialing systems. The department must enter into an agreement with the health care authority to pay its share of the costs of implementing and operating a new provider credentialing system.

(((5) $6,124,000)) (3) $5,802,000 of the accident account—state appropriation and (($5,989,000)) $5,676,000 of the medical aid account—state appropriation are provided solely for business transformation projects and are subject to the conditions, limitations, and review provided in section 724 of this act.

(((6))) (4) $19,128,000 of the construction registration inspection account—state appropriation is provided solely to implement House Bill No. 1716 (construction inspection account). If the bill is not enacted by July 31, 2017, the amounts provided in this subsection shall lapse.

(((7))) (5) $2,000,000 of the accident account—state appropriation and $2,000,000 of the medical account—state appropriation are provided solely for a contract with a workforce institute to provide supplemental instruction for information technology apprentices. Funds spent for this purpose must be matched by an equal amount of funding from the information technology industry members, except small and mid-sized employers. Up to $2,000,000 may be spent to provide supplemental instruction for apprentices at small and mid-sized businesses. "Small and mid-sized employers" means those that have fewer than one hundred employees or have less than five percent net profitability.

Sec. 218.  2017 3rd sp.s. c 1 s 218 (uncodified) is amended to read as follows:

(1) HEADQUARTERS

General Fund—State Appropriation (FY 2018) . . . .(($2,004,000))

      $1,911,000

General Fund—State Appropriation (FY 2019) . . . .(($1,997,000))

      $1,905,000

Charitable, Educational, Penal, and Reformatory

Institutions Account—State Appropriation . . . .$10,000

TOTAL APPROPRIATION. . . .$4,011,000

The appropriations in this subsection are subject to the following conditions and limitations: $85,000 of the general fund—state appropriation for fiscal year 2018 and $84,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for the implementation of chapter 173, Laws of 2017 (ESSB 1802) (veterans' shared leave pool).

(2) FIELD SERVICES

General Fund—State Appropriation (FY 2018) . . . .(($6,220,000))

      $6,074,000

General Fund—State Appropriation (FY 2019) . . . .(($6,278,000))

      $6,329,000

General Fund—Federal Appropriation . . . .$3,751,000

General Fund—Private/Local Appropriation . . . .$4,799,000

Veteran Estate Management Account—Private/Local

Appropriation . . . .$666,000

TOTAL APPROPRIATION. . . .(($21,714,000))

     $22,062,000

The appropriations in this subsection are subject to the following conditions and limitations:

(a) $300,000 of the general fund—state appropriation for fiscal year 2018 and $300,000 of the general fund—state appropriation for fiscal year 2019 are provided solely to provide crisis and emergency relief and education, training, and employment assistance to veterans and their families in their communities through the veterans innovation program.

(b) $200,000 of the general fund—state appropriation for fiscal year 2018 and $200,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for the implementation of chapter 192, Laws of 2017 (SB 5849) (veterans' services).

(c) $110,000 of the general fund—state appropriation for fiscal year 2018 and $110,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for the expansion of the veterans conservation corps by fifteen paid internships.

(3) INSTITUTIONAL SERVICES

General Fund—State Appropriation (FY 2018) . . . .(($2,105,000))

      $10,925,000

General Fund—State Appropriation (FY 2019) . . . .(($2,307,000))

      $6,500,000

General Fund—Federal Appropriation . . . .(($93,767,000))

      $84,905,000

General Fund—Private/Local Appropriation . . . .(($35,687,000))

      $28,269,000

TOTAL APPROPRIATION. . . .(($133,866,000))

     $132,061,000

Sec. 219.  2017 3rd sp.s. c 1 s 219 (uncodified) is amended to read as follows:

General Fund—State Appropriation (FY 2018) . . . .(($71,759,000))

      $70,937,000

General Fund—State Appropriation (FY 2019) . . . .(($72,148,000))

      $80,780,000

General Fund—Federal Appropriation . . . .(($550,186,000))

      $550,304,000

General Fund—Private/Local Appropriation . . . .(($185,189,000))

      $186,886,000

Hospital Data Collection Account—State Appropriation . . . .$348,000

Health Professions Account—State Appropriation . . . .(($129,629,000))

      $132,368,000

Aquatic Lands Enhancement Account—State Appropriation . . . .$623,000

Emergency Medical Services and Trauma Care Systems

Trust Account—State Appropriation . . . .$9,247,000

Safe Drinking Water Account—State Appropriation . . . .(($5,678,000))

      $5,676,000

Drinking Water Assistance Account—Federal

Appropriation . . . .(($16,016,000))

      $16,006,000

Waterworks Operator Certification—State Appropriation . . . .(($1,671,000))

      $1,839,000

Drinking Water Assistance Administrative Account—State

Appropriation . . . .$372,000

Site Closure Account—State Appropriation . . . .$169,000

Biotoxin Account—State Appropriation . . . .(($1,972,000))

      $1,971,000

State Toxics Control Account—State Appropriation . . . .(($4,259,000))

      $4,258,000

Medicaid Fraud Penalty Account—State Appropriation . . . .$938,000

Medical Test Site Licensure Account—State

Appropriation . . . .$2,594,000

Youth Tobacco and Vapor Products Prevention Account—State

Appropriation . . . .(($4,963,000))

      $3,363,000

Dedicated Marijuana Account—State Appropriation

(FY 2018). . . .$9,761,000

Dedicated Marijuana Account—State Appropriation

(FY 2019). . . .$9,766,000

Public Health Supplemental Account—Private/Local

Appropriation . . . .$3,248,000

Accident Account—State Appropriation . . . .$344,000

Medical Aid Account—State Appropriation . . . .$53,000

Suicide-Safer Homes Project Account—State Appropriation. . . .$50,000

TOTAL APPROPRIATION. . . .(($1,080,983,000))

     $1,095,722,000

The appropriations in this section are subject to the following conditions and limitations:

(1) The department of health shall not initiate any services that will require expenditure of state general fund moneys unless expressly authorized in this act or other law. The department of health and the state board of health shall not implement any new or amended rules pertaining to primary and secondary school facilities until the rules and a final cost estimate have been presented to the legislature, and the legislature has formally funded implementation of the rules through the omnibus appropriations act or by statute. The department may seek, receive, and spend, under RCW 43.79.260 through 43.79.282, federal moneys not anticipated in this act as long as the federal funding does not require expenditure of state moneys for the program in excess of amounts anticipated in this act. If the department receives unanticipated unrestricted federal moneys, those moneys shall be spent for services authorized in this act or in any other legislation that provides appropriation authority, and an equal amount of appropriated state moneys shall lapse. Upon the lapsing of any moneys under this subsection, the office of financial management shall notify the legislative fiscal committees. As used in this subsection, "unrestricted federal moneys" includes block grants and other funds that federal law does not require to be spent on specifically defined projects or matched on a formula basis by state funds.

(2) During the 2017-2019 fiscal biennium, each person subject to RCW 43.70.110(3)(c) is required to pay only one surcharge of up to twenty-five dollars annually for the purposes of RCW 43.70.112, regardless of how many professional licenses the person holds.

(3) In accordance with RCW 43.20B.110, 43.135.055, and 71.24.035, the department is authorized to adopt license and certification fees in fiscal years 2018 and 2019 to support the costs of the regulatory program. The department's fee schedule shall have differential rates for providers with proof of accreditation from organizations that the department has determined to have substantially equivalent standards to those of the department, including but not limited to the joint commission on accreditation of health care organizations, the commission on accreditation of rehabilitation facilities, and the council on accreditation. To reflect the reduced costs associated with regulation of accredited programs, the department's fees for organizations with such proof of accreditation must reflect the lower costs of licensing for these programs than for other organizations which are not accredited.

(4)(a) $5,000,000 of the general fund—state appropriation for fiscal year 2018 and $5,000,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for the department to support the local health jurisdictions to improve their ability to address (i) communicable disease monitoring and prevention and (ii) chronic disease and injury prevention. The department and representatives of local health jurisdictions must work together to arrive at a mutually acceptable allocation and distribution of funds and to determine the best accountability measures to ensure efficient and effective use of funds, emphasizing the use of shared services.

(b) By December 31, 2017, the department shall provide a preliminary report, and by November 30, 2018, a final report, to the appropriate committees of the legislature regarding:

(i) The allocation of funding, as provided in this subsection, to the local health jurisdictions;

(ii) Steps taken by the local health jurisdictions that received funding to improve communicable disease monitoring and prevention and chronic disease and injury prevention;

(iii) An assessment of the effectiveness of the steps taken by local health jurisdictions and the criteria measured; and

(iv) Any recommendations for future models for service delivery to address communicable and chronic diseases.

(5)(a) $1,000,000 of the general fund—state appropriation for fiscal year 2018 and $1,000,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for the department, as part of foundational public health services, to implement strategies to control the spread of communicable diseases and other health threats. These strategies may include updating or replacing equipment in the state public health laboratory; addressing health inequities among state residents; reporting on the root cause analyses of adverse events at medical facilities; performing critical activities to prevent adverse health consequences of hepatitis C; or assessing information technology system consolidation and modernization opportunities for statewide public health data systems.

(b) By November 30, 2018, the department shall develop a statewide governmental public health improvement plan and provide it to the appropriate committees of the legislature.

(6) $26,000 of the general fund—state appropriation for fiscal year 2018 and $10,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for the implementation of chapter 295, Laws of 2017 (SHB 1258) (first responders/disability).

(7) Within amounts appropriated in this section, funding is provided to implement chapter 312, Laws of 2017 (SSB 5046) (language of public notices).

(8) $39,000 of the general fund—local appropriation is provided solely for the implementation of chapter 249, Laws of 2017 (ESHB 1714) (nurse staffing plans).

(9) $27,000 of the health professions account—state appropriation and $50,000 of the Suicide-Safer Homes Project account are provided solely for the implementation of chapter 262, Laws of 2017 (E2SHB 1612) (reducing access to lethal means).

(10) $269,000 of the health professions account—state appropriation is provided solely for the implementation of chapter 297, Laws of 2017 (ESHB 1427) (opioid treatment program).

(11) $350,000 of the general fund—state appropriation for fiscal year 2018 and $350,000 of the general fund—state appropriation for fiscal year 2019 are provided to the department solely to cover costs of providing increased capacity under existing contracts with suicide prevention lines to respond to calls to the national suicide prevention lifeline.

(12) $40,000 of the general fund—state appropriation for fiscal year 2018 and (($40,000)) $90,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for the midwifery licensure and regulatory program to supplement revenue from fees. The department shall charge no more than five hundred twenty-five dollars annually for new or renewed licenses for the midwifery program.

(13)(a) Within amounts appropriated in this section, the department, in consultation with advocacy groups and experts that focus on hunger and poverty issues, shall produce a report regarding ongoing nutrition assistance programs funded by the United States department of agriculture and administered in Washington state. The report must be a compilation, by program, of data already collected by the department of social and health services, the department of health, the office of the superintendent of public instruction, and the Washington state department of agriculture, and it must include, where available, but is not limited to:

(i) The number of people in Washington who are eligible for the program;

(ii) The number of people in Washington who participated in the program;

(iii) The average annual participation rate in the program;

(iv) Participation rates by geographic distribution; and

(v) The annual federal funding of the program in Washington.

(b) The department shall report to the appropriate committees of the legislature and to the governor. An initial report is due by April 30, 2018, and a second report is due by April 30, 2019.

(14) Information technology projects or investments and proposed projects or investments impacting time capture, payroll and payment processes and systems eligibility, case management, and authorization systems within the department of health are subject to technical oversight by the office of the state chief information officer.

(15) $2,604,000 of the health professions account—state appropriation is provided solely for the medical quality assurance commission to address increased workload.

(16) $896,000 of the health professions account—state appropriation is provided solely for the pharmacy commission to improve research and communication to pharmacies regarding the development and implementation of new and changing rules.

(17) $9,000,000 of the general fund—federal appropriation is provided solely for the department to implement projects and activities during the 2017-2019 fiscal biennium that are designed to improve the health and well-being of individuals living with human immunodeficiency virus, including:

(a) A health disparity project to increase access to dental, mental health, and housing services for populations that have historically experienced limited access to needed services, including Latino individuals in central Washington;

(b) A project to establish a peer-to-peer network for individuals living with human immunodeficiency virus. Trained navigators will work to link individuals living with human immunodeficiency virus to medical care, housing support, training, and other needed services;

(c) A project to expand the MAX clinic within Harborview hospital to serve an increased number of high-need clients and establishing a MAX clinic to serve high-need clients in Pierce county. This project shall also provide statewide training for staff of the department, of local health jurisdictions, and of providers of services for persons with human immunodeficiency virus;

(d) The development of a single eligibility portal to allow statewide usage and streamlined case management for individuals who are living with human immunodeficiency virus and receiving public health services; and

(e) An assessment and evaluation of the effectiveness of each of the projects outlined in subsections (a) through (d) of this subsection.

(18) $6,096,000 of the general fund—local appropriation is provided solely for the department to target its efforts in the HIV early intervention program toward populations with health disparities.

(19) $1,118,000 of the general fund—local appropriation is provided solely for equipment, testing supplies, and materials necessary to add x-linked adrenoleukodystrophy to the mandatory newborn screening panel. The department is authorized to increase the newborn screening fee by $8.10.

(20) $1,500,000 of the general fund—state appropriation for fiscal year 2018 and $1,500,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for:

(a) Increased screening, case management, and an electronic data reporting system to identify children who are at the highest risk of having elevated levels of lead in their blood, prioritizing children who live in areas where the risk is highest; and

(b) Sampling and testing of drinking water and water fixtures in public schools. The department, in collaboration with the educational service districts, must prioritize testing within elementary schools where drinking water and water fixtures have not been tested for contaminants at any time, and elementary schools where drinking water and water fixtures have not been tested within the past three years. Consistent with the United States environmental protection agency's manual, "3Ts for Reducing Lead in Drinking Water in Schools—Revised Technical Guidance," the department must develop guidance and testing protocols for the lead action level for drinking water and for testing drinking water and drinking water fixtures in public and private schools. The guidance must include:

(i) Actions to take if test results exceed the federal action level or public drinking water standard;

(ii) Recommendations to schools on prioritizing fixture replacement, and options for further reducing lead, including replacement of fixtures or use of certified filters when results are below the federal action level for schools, but exceed the maximum level recommended by the American Academy of Pediatrics; and

(iii) Recommendations for communicating test results and risk to parents and the community, including that there is no safe level of lead in water and that action may be warranted even if levels are below the action level.

(21) $277,000 of the general fund—local appropriation is provided solely to implement chapter 207, Laws of 2017 (E2SHB 1819) (children's mental health).

(22) $130,000 of the general fund—state appropriation for fiscal year 2018 and $130,000 of the general fund—state appropriation for fiscal year 2019 are provided solely to increase the funding for the breast, cervical, and colon health program administered by the department.

(23) Within the amounts appropriated in this section, and in accordance with RCW 43.20B.110 and 70.41.100, the department shall set fees to include the full costs of the performance of inspections pursuant to RCW 70.41.080.

(24) Within the amounts appropriated in this section, and in accordance with RCW 43.70.110 and 71.12.470, the department shall set fees to include the full costs of the performance of inspections pursuant to RCW 71.12.485.

(25) (($250,000)) $100,000 of the general fund—state appropriation for fiscal year 2018 and (($250,000)) $400,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for the department to contract with a nongovernmental entity that has experience in adapting global health strategies to underserved communities for a pilot program to develop strategies to address health disparities in rural communities. The program should engage marginalized communities in order to identify barriers and social determinants that most impact health, including access to housing and food and economic stability. The department must report to the legislature by ((December 1, 2018)) June 30, 2019, regarding identified barriers and any recommendations for interventions.

(26) $27,000 of the general fund—state appropriation for fiscal year 2018 and $16,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for the implementation of chapter 273, Laws of 2017 (E2SHB 1358) (community assistance referral programs).

(27) $224,000 of the health professions account—state appropriation is provided solely for the implementation of chapter 320, Laws of 2017 (SSB 5322) (dentists and third parties).

(28) $93,000 of the health professions account—state appropriation is provided solely for the implementation of chapter 101, Laws of 2017 (ESHB 1431) (osteopathic medicine and surgery).

(29) $82,000 of the general fund—local appropriation is provided solely for the implementation of chapter 263, Laws of 2017 (SSB 5152) (pediatric transitional care).

(30) $25,000 of the general fund—state appropriation for fiscal year 2018 is provided solely for the department to prepare and submit a report about the certificate of need program to the governor and the appropriate fiscal and policy committees of the legislature by October 1, 2017. By health care setting, for each of the preceding ten fiscal years, the report must show the total number of applications, the total number of accepted applications, the total number of beds requested, the total number of beds approved, and a summary of the most common reasons for declining an application. The report must include suggestions for modifying the program to increase the number of successful applications. At least one suggestion must address the goal of adding psychiatric beds within hospitals.

(31) The department, in collaboration with the health care authority, shall work to ensure that a single platform provider credentialing system is implemented. The authority and department shall ensure that appropriate cost offsets and cost avoidance are assumed for reduced staff time required for provider credentialing activity and reductions in improper billing activity when implementing provider credentialing systems.

(32) $28,000 of the general fund—state appropriation for fiscal year 2018 and $28,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for staffing capacity at the department to support a performance audit of the fee-setting process for each health profession licensed by the department.

(33) The appropriations in this section include sufficient funding for the implementation of chapter 294, Laws of 2017 (SSB 5835) (health outcomes/pregnancy).

Sec. 220.  2017 3rd sp.s. c 1 s 220 (uncodified) is amended to read as follows:

(1) ADMINISTRATION AND SUPPORT SERVICES

General Fund—State Appropriation (FY 2018) . . . .(($64,492,000))

      $61,281,000

General Fund—State Appropriation (FY 2019) . . . .(($64,219,000))

      $61,541,000

TOTAL APPROPRIATION. . . .(($128,711,000))

     $130,824,000

The appropriations in this subsection are subject to the following conditions and limitations:

(a) $35,000 of the general fund—state appropriation for fiscal year 2018 and $35,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for the support of a statewide council on mentally ill offenders that includes as its members representatives of community-based mental health treatment programs, current or former judicial officers, and directors and commanders of city and county jails and state prison facilities. The council will investigate and promote cost-effective approaches to meeting the long-term needs of adults and juveniles with mental disorders who have a history of offending or who are at-risk of offending, including their mental health, physiological, housing, employment, and job training needs.

(b)(i) During the 2017-2019 fiscal biennium, the department must revise its agreements and contracts with vendors to include a provision to require that each vendor agrees to equality among its workers by ensuring similarly employed individuals are compensated as equals as follows:

(A) Employees are similarly employed if the individuals work for the same employer, the performance of the job requires comparable skill, effort, and responsibility, and the jobs are performed under similar working conditions. Job titles alone are not determinative of whether employees are similarly employed;

(B) Vendors may allow differentials in compensation for its workers based in good faith on any of the following:

(I) A seniority system; a merit system; a system that measures earnings by quantity or quality of production; a bona fide job-related factor or factors; or a bona fide regional difference in compensation levels.

(II) A bona fide job-related factor or factors may include, but not be limited to, education, training, or experience, that is: Consistent with business necessity; not based on or derived from a gender-based differential; and accounts for the entire differential.

(III) A bona fide regional difference in compensation level must be: Consistent with business necessity; not based on or derived from a gender-based differential; and account for the entire differential.

(ii) The provision must allow for the termination of the contract if the department or department of enterprise services determines that the vendor is not in compliance with this agreement or contract term.

(iii) The department must implement this provision with any new contract and at the time of renewal of any existing contract.

(c) $865,000 of the general fund—state appropriation for fiscal year 2018 and $587,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for information technology business solutions and are subject to the conditions, limitations, and review provided in section 724 of this act.

(d) The department, in collaboration with the health care authority, shall work to ensure that a single platform provider credentialing system is implemented. The authority and department shall ensure that appropriate cost offsets and cost avoidance are assumed for reduced staff time required for provider credentialing activity and reductions in improper billing activity when implementing provider credentialing systems.

(2) CORRECTIONAL OPERATIONS

General Fund—State Appropriation (FY 2018) . . . .(($541,061,000))

      $499,134,000

General Fund—State Appropriation (FY 2019) . . . .(($562,878,000))

      $518,049,000

General Fund—Federal Appropriation . . . .$818,000

Washington Auto Theft Prevention Authority Account—State

Appropriation . . . .(($4,608,000))

      $4,597,000

TOTAL APPROPRIATION. . . .(($1,109,365,000))

     $1,085,429,000

The appropriations in this subsection are subject to the following conditions and limitations:

(a) The department may contract for beds statewide to the extent that it is at no net cost to the department. The department shall calculate and report the average cost per offender per day, inclusive of all services, on an annual basis for a facility that is representative of average medium or lower offender costs. The duration of the contracts may be for up to four years. The department shall not pay a rate greater than $85 per day per offender for all costs associated with the offender while in the local correctional facility to include programming and health care costs, or the equivalent of $85 per day per bed including programming and health care costs for full units. The capacity provided at local correctional facilities must be for offenders whom the department of corrections defines as medium or lower security offenders. Programming provided for inmates held in local jurisdictions is included in the rate, and details regarding the type and amount of programming, and any conditions regarding transferring offenders must be negotiated with the department as part of any contract. Local jurisdictions must provide health care to offenders that meet standards set by the department. The local jail must provide all medical care including unexpected emergent care. The department must utilize a screening process to ensure that offenders with existing extraordinary medical/mental health needs are not transferred to local jail facilities. If extraordinary medical conditions develop for an inmate while at a jail facility, the jail may transfer the offender back to the department, subject to terms of the negotiated agreement. Health care costs incurred prior to transfer are the responsibility of the jail.

(b) $501,000 of the general fund—state appropriation for fiscal year 2018 and $501,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for the department to maintain the facility, property, and assets at the institution formerly known as the maple lane school in Rochester.

(c) $1,379,000 of the general fund—state appropriation for fiscal year 2018, and $1,379,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for the department to contract for the use of inmate bed capacity in lieu of prison beds operated by the state to meet prison capacity needs.

(d) (($250,000 of the general fund—state appropriation for fiscal year 2018 and)) $250,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for the department to enter into an agreement to purchase electricity for the Monroe correctional complex from a ((sawmill waste cogeneration system that is connected to a lumber mill that employs at least 150 people. The agreement cannot increase the total cost for the purchase of electricity for the entire complex)) source located in Snohomish county that is fueled using commercial or industrial waste from an on-site lumber mill that employs at least 150 people.

(e) Within the amounts appropriated in this section, funding is provided to implement chapter 335, Laws of 2017 (SB 5037) (DUI 4th offense/felony).

(f) The appropriations in this section include sufficient funding for the implementation of chapter 226, Laws of 2017 (HB 1153) (vulnerable persons/crimes).

(g) ((The appropriations in this section include sufficient funding for the implementation of Senate Bill No. 5934 (concerning convicted persons).

(i))) Within the amounts appropriated in this section, the department of corrections must review the use of full body scanners at state correctional facilities for women to reduce the frequency of strip and body cavity searches and report with recommendations to the governor and the appropriate legislative committees by November 15, 2017. The report must address the cost of technology, installation, and maintenance; the benefits to personnel and inmates; information regarding accumulated exposure to radiation; and general guidelines for implementation at a pilot facility.

(3) COMMUNITY SUPERVISION

General Fund—State Appropriation (FY 2018) . . . .(($181,670,000))

      $179,455,000

General Fund—State Appropriation (FY 2019) . . . .(($187,807,000))

      $192,507,000

General Fund—Federal Appropriation . . . .(($2,368,000))

      $2,902,000

TOTAL APPROPRIATION. . . .(($371,845,000))

     $387,655,000

The appropriations in this subsection are subject to the following conditions and limitations:

(a) The department of corrections shall contract with local and tribal governments for the provision of jail capacity to house offenders who violate the terms of their community supervision. A contract shall not have a cost of incarceration in excess of $85 per day per offender. A contract shall not have a year-to-year increase in excess of three percent per year. The contracts may include rates for the medical care of offenders which exceed the daily cost of incarceration and the limitation on year-to-year increases, provided that medical payments conform to the department's offender health plan and pharmacy formulary, and all off-site medical expenses are preapproved by department utilization management staff.

(b) The department shall engage in ongoing mitigation strategies to reduce the costs associated with community supervision violators, including improvements in data collection and reporting and alternatives to short-term confinement for low-level violators.

(c) By January 1, 2018, the department of corrections shall provide a report to the office of financial management and the appropriate fiscal and policy committees of the legislature to include a review of the department's policies and procedures related to swift and certain sanctioning, and identification of legal decisions that impact caseload and operations. The report shall include recommendations for improving public and staff safety while decreasing recidivism through improved alignment of the department's policies and procedures with current best practices concerning swift and certain sanctioning. The report shall include a review of department practices, legal decisions that impact caseload and operations, an analysis of current best practices in other jurisdictions that have adopted swift and certain sanctioning, and recommendations to improve the department's practices and procedures.

(d) Within the amounts appropriated in this section, funding is provided to implement chapter 335, Laws of 2017 (SB 5037) (DUI 4th offense/felony).

(4) CORRECTIONAL INDUSTRIES

General Fund—State Appropriation (FY 2018) . . . .(($5,985,000))

      $6,278,000

General Fund—State Appropriation (FY 2019) . . . .(($6,085,000))

      $5,979,000

TOTAL APPROPRIATION. . . .(($12,070,000))

      $12,767,000

(5) INTERAGENCY PAYMENTS

General Fund—State Appropriation (FY 2018) . . . .(($44,091,000))

      $44,810,000

General Fund—State Appropriation (FY 2019) . . . .(($41,176,000))

      $42,200,000

TOTAL APPROPRIATION. . . .(($85,267,000))

      $87,010,000

(6) OFFENDER CHANGE

General Fund—State Appropriation (FY 2018) . . . .(($55,170,000))

      $54,590,000

General Fund—State Appropriation (FY 2019) . . . .(($56,426,000))

      $57,465,000

TOTAL APPROPRIATION. . . .(($111,596,000))

     $116,489,000

The appropriations in this subsection are subject to the following conditions and limitations:

(a) The department of corrections shall use funds appropriated in this subsection (6) for offender programming. The department shall develop and implement a written comprehensive plan for offender programming that prioritizes programs which follow the risk-needs-responsivity model, are evidence-based, and have measurable outcomes. The department is authorized to discontinue ineffective programs and to repurpose underspent funds according to the priorities in the written plan.

(b) The department shall submit a report by December 1, 2018, to the appropriate committees of the legislature regarding the department's compliance with this subsection. The report must: (i) Include a summary of the comprehensive plan; (ii) analyze state funds allocated to cognitive behavioral change programs and reentry specific programs, including percentages and amounts of funds used in evidence-based practices and the number of people being served; (iii) identify discontinued and newly implemented cognitive behavioral change programs and reentry specific programs, including information used by the department in evaluating the effectiveness of discontinued and implemented programs; and (iv) provide recommendations to improve program outcomes, including recommended strategies, deadlines, and funding.

(c) Within the amounts appropriated in this section, funding is provided to implement chapter 335, Laws of 2017 (SB 5037) (DUI 4th offense/felony).

(7) HEALTH CARE SERVICES

General Fund—State Appropriation (FY 2018). . . .(($128,680,000))

      $144,271,000

General Fund—State Appropriation (FY 2019). . . .(($127,782,000))

      $147,270,000

TOTAL APPROPRIATION. . . .(($256,462,000))

     $291,541,000

The appropriations in this subsection are subject to the following conditions and limitations: The state prison medical facilities may use funds appropriated in this subsection to purchase goods ((and)), supplies, and services through hospital or other group purchasing organizations when it is cost effective to do so.

Sec. 221.  2017 3rd sp.s. c 1 s 221 (uncodified) is amended to read as follows:

General Fund—State Appropriation (FY 2018) . . . .(($2,478,000))

      $2,451,000

General Fund—State Appropriation (FY 2019) . . . .(($2,525,000))

      $2,567,000

General Fund—Federal Appropriation . . . .(($25,276,00))

      $25,282,000

General Fund—Private/Local Appropriation . . . .$60,000

TOTAL APPROPRIATION. . . .(($30,339,000))

     $30,533,000

Sec. 222.  2017 3rd sp.s. c 1 s 222 (uncodified) is amended to read as follows:

General Fund—Federal Appropriation . . . .(($216,993,000))

      $209,391,000

General Fund—Private/Local Appropriation . . . .(($35,426,000))

      $35,416,000

Unemployment Compensation Administration Account—Federal

Appropriation . . . .(($270,643,000))

      $267,890,000

Administrative Contingency Account—State

Appropriation . . . .(($20,386,000))

      $20,136,000

Employment Service Administrative Account—State

Appropriation . . . .(($53,555,000))

      $53,543,000

Family and Medical Leave Insurance Account—State

Appropriation. . . .$82,000,000

TOTAL APPROPRIATION. . . .(($679,003,000))

     $668,411,000

The appropriations in this subsection are subject to the following conditions and limitations:

(1) The department is directed to maximize the use of federal funds. The department must update its budget annually to align expenditures with anticipated changes in projected revenues.

(2) $4,152,000 of the unemployment compensation administration account—federal appropriation is provided solely to the unemployment tax and benefits systems and is subject to the conditions, limitations, and review provided in section 724 of this act.

(3) $82,000,000 of the family and medical leave insurance account—state appropriation is provided solely for implementation of Substitute House Bill No. 1116 (family and medical leave insurance), Senate Bill No. 5975 (paid family and medical leave), or Senate Bill No. 5032 (family and medical leave insurance). If none of the bills are enacted by July 31, 2017, the amount provided in this subsection shall lapse.

Sec. 223.  2017 3rd sp.s. c 1 s 223 (uncodified) is amended to read as follows:

(1) CHILDREN AND FAMILIES SERVICES PROGRAM

General Fund—State Appropriation (FY 2019). . . .(($366,467,000))

      $364,464,000

General Fund—Federal Appropriation. . . .(($236,770,000))

      $246,342,000

General Fund—Private/Local Appropriation. . . .$1,477,000

Domestic Violence Prevention Account—State     

Appropriation. . . .$1,002,000

TOTAL APPROPRIATION. . . .(($605,716,000))

     $627,261,000

The appropriations in this section are subject to the following conditions and limitations:

(a) $748,000 of the general fund—state appropriation for fiscal year 2019 is provided solely to contract for the operation of one pediatric interim care center. The center shall provide residential care for up to thirteen children through two years of age. Seventy-five percent of the children served by the center must be in need of special care as a result of substance abuse by their mothers. The center shall also provide on-site training to biological, adoptive, or foster parents. The center shall provide at least three months of consultation and support to the parents accepting placement of children from the center. The center may recruit new and current foster and adoptive parents for infants served by the center. The department shall not require case management as a condition of the contract.

(b) $253,000 of the general fund—state appropriation for fiscal year 2019 is provided solely for the costs of hub home foster families that provide a foster care delivery model that includes a licensed hub home. Use of the hub home model is intended to support foster parent retention, improve child outcomes, and encourage the least restrictive community placements for children in out-of-home care.

(c) $579,000 of the general fund—state appropriation for fiscal year 2019 and $55,000 of the general fund—federal appropriation are provided solely for a receiving care center east of the Cascade mountains.

(d) $990,000 of the general fund—state appropriation for fiscal year 2019 is provided solely for services provided through children's advocacy centers.

(e) $1,351,000 of the general fund—state appropriation for fiscal year 2019 is provided solely for implementation of performance-based contracts for family support and related services pursuant to RCW 74.13B.020.

(f) $7,173,000 of the general fund—state appropriation for fiscal year 2019 and $6,022,000 of the general fund—federal appropriation are provided solely for family assessment response. Amounts appropriated in this subsection are sufficient to implement Substitute House Bill No. 2449 or Substitute Senate Bill No. 6309 (family assessment response).

(g) $94,000 of the general fund—state appropriation for fiscal year 2019 is provided solely for a contract with a child advocacy center in Spokane to provide continuum of care services for children who have experienced abuse or neglect and their families.

(h) $2,933,000 of the general fund—state appropriation for fiscal year 2019 and $876,000 of the general fund—federal appropriation are provided solely for the department to reduce the caseload ratios of social workers serving children in foster care to promote decreased lengths of stay and to make progress towards achievement of the Braam settlement caseload outcome.

(i)(A) $540,000 of the general fund—state appropriation for fiscal year 2019, $328,000 of the general fund private/local appropriation, and $126,000 of the general fund—federal appropriation are provided solely for a contract with an educational advocacy provider with expertise in foster care educational outreach. The amounts in this subsection are provided solely for contracted education coordinators to assist foster children in succeeding in K-12 and higher education systems and to assure a focus on education during the department's transition to performance-based contracts. Funding must be prioritized to regions with high numbers of foster care youth, or regions where backlogs of youth that have formerly requested educational outreach services exist. The department is encouraged to use private matching funds to maintain educational advocacy services.

(B) The department shall contract with the office of the superintendent of public instruction, which in turn shall contract with a nongovernmental entity or entities to provide educational advocacy services pursuant to RCW 28A.300.590.

(j) The department shall continue to implement policies to reduce the percentage of parents requiring supervised visitation, including clarification of the threshold for transition from supervised to unsupervised visitation prior to reunification.

(k) $111,000 of the general fund—state appropriation for fiscal year 2019 and $26,000 of the general fund—federal appropriation are provided solely for a base rate increase for licensed family child care providers. In addition, $45,000 of the general fund—state appropriation for fiscal year 2019 and $11,000 of the general fund—federal appropriation are provided solely for increasing paid professional days from three days to five days for licensed family child care providers. Amounts in this subsection are provided solely for the 2017-2019 collective bargaining agreement covering family child care providers as set forth in section 940 of this act. Amounts provided in this subsection are contingent on the enactment of Senate Bill No. 5969 (transparency in public employee collective bargaining). If the bill is not enacted by July 31, 2017, the amounts provided in this subsection (k) shall lapse.

(l) $321,000 of the general fund—state appropriation for fiscal year 2019 and $133,000 of the general fund—federal appropriation are provided solely to implement chapter 265, Laws of 2017 (SHB 1867) (ext. foster care transitions).

(m) $400,000 of the general fund—state appropriation for fiscal year 2019 is provided solely for a contract with a national nonprofit organization to, in partnership with private matching funds, subcontract with a community organization for specialized, enhanced adoption placement services for legally free children in state custody. The contract must supplement, but not supplant, the work of the department to secure permanent adoptive homes for children.

(n) $375,000 of the general fund—state appropriation for fiscal year 2019 and $56,000 of the general fund—federal appropriation are provided solely for the department to develop, implement, and expand strategies to improve the capacity, reliability, and effectiveness of contracted visitation services for children in temporary out-of-home care and their parents and siblings. Strategies may include, but are not limited to, increasing mileage reimbursement for providers, offering transportation-only contract options, and mechanisms to reduce the level of parent-child supervision when doing so is in the best interest of the child. The department must submit an analysis of the strategies and associated outcomes no later than October 1, 2018.

(o) (($3,600,000 of the general fund—state appropriation for fiscal year 2019 is provided solely for state supplemental payments for the state maintenance of effort requirement to qualify for medicaid federal financial participation.)) For purposes of meeting the state's maintenance of effort for the state supplemental payment program, the department of children, youth, and families shall track and report to the department of social and health services the monthly state supplemental payment amounts attributable to foster care children who meet eligibility requirements specified in the state supplemental payment state plan. Such expenditures must equal at least $3,100,000 annually and may not be claimed toward any other federal maintenance of effort requirement. Annual state supplemental payment expenditure targets must continue to be established by the department of social and health services. Attributable amounts must be communicated by the department of children, youth, and families to the department of social and health services on a monthly basis.

(p) $1,018,000 of the general fund—state appropriation for fiscal year 2019 and $195,000 of the general fund—federal appropriation are provided solely for a six percent base rate increase for child care center providers, effective September 1, 2017.

(q) $1,230,000 of the general fund—state appropriation for fiscal year 2019 and $78,000 of the general fund—federal appropriation are provided solely to increase the travel reimbursement for in-home service providers.

(r) The department is encouraged to control exceptional reimbursement decisions so that the child's needs are met without excessive costs.

(s) $1,342,000 of the general fund—state appropriation for fiscal year 2019 and $959,000 of the general fund—federal appropriation are provided solely to implement Engrossed Substitute Senate Bill No. 5890 (foster care and adoption). Within the amounts provided in this section, $366,000 of the general fund—state appropriation for fiscal year 2019 and $174,000 of the general fund—federal appropriation are provided solely for short-term care for licensed foster families. If the bill is not enacted by July 31, 2017, the amounts provided in this subsection shall lapse.

(t) $197,000 of the general fund—state appropriation for fiscal year 2019 is provided solely for the department to conduct biennial inspections and certifications of facilities, both overnight and day shelters, that serve those who are under 18 years old and are homeless.

(2) EARLY LEARNING PROGRAM

General Fund—State Appropriation (FY 2019) . . . .(($126,721,000))

      $127,579,000

General Fund—Federal Appropriation . . . .$148,179,000

Education Legacy Trust Account—State Appropriation . . . .$14,192,000

Home Visiting Services Account—State Appropriation . . . .(($3,191,000))

      $5,490,000

Home Visiting Services Account—Federal

Appropriation . . . .$11,708,000

WA Opportunity Pathways Account—State Appropriation . . . .$40,000,000

TOTAL APPROPRIATION. . . .(($343,991,000))

      $347,616,000

The appropriations in this section are subject to the following conditions and limitations:

(a) $67,938,000 of the general fund—state appropriation for fiscal year 2019, $12,125,000 of the education legacy trust account—state appropriation, and $40,000,000 of the opportunity pathways account appropriation are provided solely for the early childhood education and assistance program. These amounts shall support at least 13,491 slots in fiscal year 2019.

(b) $200,000 of the general fund—state appropriation for fiscal year 2019 is provided solely to develop and provide culturally relevant supports for parents, family, and other caregivers.

(c)(i) The department is the lead agency for and recipient of the federal child care and development fund grant. Amounts within this grant shall be used to fund child care licensing, quality initiatives, agency administration, and other costs associated with child care subsidies. The department shall transfer a portion of this grant to the department of social and health services to fund the child care subsidies paid by the department of social and health services on behalf of the department.

(d)(i) (($76,650,000)) $77,253,000 of the general fund—federal appropriation is provided solely for the working connections child care program under RCW 43.215.135. In order to not exceed the appropriated amount, the department shall manage the program so that the average monthly caseload does not exceed 33,000 households. The department shall give prioritized access into the program according to the following order:

(A) Families applying for or receiving temporary assistance for needy families (TANF);

(B) TANF families curing sanction;

(C) Foster children;

(D) Families that include a child with special needs;

(E) Families in which a parent of a child in care is a minor who is not living with a parent or guardian and who is a full-time student in a high school that has a school-sponsored on-site child care center;

(F) Families with a child residing with a biological parent or guardian who have received child protective services, child welfare services, or a family assessment response from the department in the past six months, and has received a referral for child care as part of the family's case management;

(G) Families that received subsidies within the last thirty days and:

(I) Have reapplied for subsidies; and

(II) Have household income of two hundred percent federal poverty level or below; and

(H) All other eligible families.

(ii) The department, in collaboration with the department of social and health services, must submit a final report by December 1, 2018, to the governor and the appropriate fiscal and policy committees of the legislature on quality control measures for the working connections child care program. The report must include:

(A) A detailed narrative of the procurement and implementation of an improved time and attendance system, including a detailed accounting of the costs of procurement and implementation;

(B) A comprehensive description of all processes, including computer algorithms and additional rule development, that the department and the department of social and health services plan to establish prior to and after full implementation of the time and attendance system. At a minimum, processes must be designed to:

(I) Ensure the department's auditing efforts are informed by regular and continuous alerts of the potential for overpayments;

(II) Avoid overpayments to the maximum extent possible and expediently recover overpayments that have occurred;

(III) Withhold payment from providers when necessary to incentivize receipt of the necessary documentation to complete an audit;

(IV) Establish methods for reducing future payments or establishing repayment plans in order to recover any overpayments;

(V) Sanction providers, including termination of eligibility, who commit intentional program violations or fail to comply with program requirements, including compliance with any established repayment plans; and

(VI) Consider pursuit of prosecution in cases with fraudulent activity; and

(C) A description of the process by which fraud is identified and how fraud investigations are prioritized and expedited.

(iii) Beginning July 1, 2018, and annually thereafter, the department, in collaboration with the department of social and health services, must report to the governor and the appropriate fiscal and policy committees of the legislature on the status of overpayments in the working connections child care program. The report must include the following information for the previous fiscal year:

(A) A summary of the number of overpayments that occurred;

(B) The reason for each overpayment;

(C) The total cost of overpayments;

(D) A comparison to overpayments that occurred in the past two preceding fiscal years; and

(E) Any planned modifications to internal processes that will take place in the coming fiscal year to further reduce the occurrence of overpayments.

(e) Within available amounts, the department in consultation with the office of financial management and the department of social and health services shall report enrollments and active caseload for the working connections child care program to the legislative fiscal committees and the legislative-executive WorkFirst oversight task force on an agreed upon schedule. The report shall also identify the number of cases participating in both temporary assistance for needy families and working connections child care. The department must also report on the number of children served through contracted slots.

(f) $1,560,000 of the general fund—state appropriation for fiscal year 2019 and $6,712,000 of the general fund—federal appropriation are provided solely for the seasonal child care program. If federal sequestration cuts are realized, cuts to the seasonal child care program must be proportional to other federal reductions made within the department.

(g) (($2,522,000)) $4,674,000 of the general fund—state appropriation for fiscal year 2019 is provided solely for the early childhood intervention prevention services (ECLIPSE) program. The department shall contract for ECLIPSE services to provide therapeutic child care and other specialized treatment services to abused, neglected, at-risk, and/or drug-affected children. Priority for services shall be given to children referred from the department.

(h) (($45,359,000)) $42,706,000 of the general fund—state appropriation for fiscal year 2019 and $13,954,000 of the general fund—federal appropriation are provided solely to maintain the requirements set forth in chapter 7, Laws of 2015, 3rd sp. sess. The department shall place a ten percent administrative overhead cap on any contract entered into with the University of Washington. In its annual report to the governor and the legislature, the department shall report the total amount of funds spent on the quality rating and improvements system and the total amount of funds spent on degree incentives, scholarships, and tuition reimbursements. Of the amounts provided in this subsection (h), $577,000 of the general fund—state appropriation for fiscal year 2019 is provided solely for a six percent base rate increase for child care center providers.

(i) $1,728,000 of the general fund—state appropriation for fiscal year 2019 is provided solely for reducing barriers for low-income providers to participate in the early achievers program.

(j) $300,000 of the general fund—state appropriation for fiscal year 2019 is provided solely for a contract with a nonprofit entity experienced in the provision of promoting early literacy for children through pediatric office visits.

(k) $2,000,000 of the education legacy trust account—state appropriation is provided solely for early intervention assessment and services.

(l) $3,445,000 of the general fund—federal appropriation for fiscal year 2019 is provided solely for the department to procure a time and attendance system and are subject to the conditions, limitations, and review provided in section 724 of this act.

(m) Information technology projects or investments and proposed projects or investments impacting time capture, payroll and payment processes and systems, eligibility, case management and authorization systems within the department are subject to technical oversight by the office of the chief information officer. The department must collaborate with the office of the chief information officer to develop a strategic business and technology architecture plan for a child care attendance and billing system that supports a statewide architecture.

(n)(i)(A) The department is required to provide to the education research and data center, housed at the office of financial management, data on all state-funded early childhood programs. These programs include the early support for infants and toddlers, early childhood education and assistance program (ECEAP), and the working connections and seasonal subsidized childcare programs including license exempt facilities or family, friend, and neighbor care. The data provided by the department to the education research data center must include information on children who participate in these programs, including their name and date of birth, and dates the child received services at a particular facility.

(B) ECEAP early learning professionals must enter any new qualifications into the department's professional development registry starting in the 2015-16 school year, and every school year thereafter. By October 2017, and every October thereafter, the department must provide updated ECEAP early learning professional data to the education research data center.

(C) The department must request federally funded head start programs to voluntarily provide data to the department and the education research data center that is equivalent to what is being provided for state-funded programs.

(D) The education research and data center must provide an updated report on early childhood program participation and K-12 outcomes to the house of representatives appropriations committee and the senate ways and means committee using available data by March 2018 for the school year ending in 2017.

(ii) The department, in consultation with the department of social and health services, must withhold payment for services to early childhood programs that do not report on the name, date of birth, and the dates a child received services at a particular facility.

(o) The department shall work with state and local law enforcement, federally recognized tribal governments, and tribal law enforcement to develop a process for expediting fingerprinting and data collection necessary to conduct background checks for tribal early learning and child care providers.

(p) $2,651,000 of the general fund—state appropriation for fiscal year 2019 is provided solely for the 2017-2019 collective bargaining agreement covering family child care providers as set forth in section 940 of this act. Amounts provided in this subsection (p) are contingent upon the enactment of Senate Bill No. 5969 (transparency in public employee collective bargaining). If the bill is not enacted by July 31, 2017, the amount provided in this subsection shall lapse. Of the amounts provided in this subsection:

(i) $273,000 is for a base rate increase;

(ii) $55,000 is for increasing paid professional development days from three days to five days;

(iii) $1,708,000 is for the family child care providers 501(c)(3) organization for the substitute pool, training and quality improvement support services, and administration;

(iv) $114,000 is for increasing licensing incentive payments; and

(v) $500,000 is for needs based grants.

(q) $175,000 of the general fund—state appropriation for fiscal year 2019 is provided solely for the department to contract with a nonprofit entity that provides quality improvement services to participants in the early achievers program to implement a community-based training module that supports licensed child care providers who have been rated in early achievers and who are specifically interested in serving children in the early childhood education and assistance program. The module must be functionally translated into Spanish and Somali. The module must prepare trainees to administer all aspects of the early childhood education and assistance program for eligible children in their licensed program and must be offered to 105 child care providers to serve children eligible for the early childhood education and assistance program by June 30, 2019.

(r) $219,000 of the general fund—state appropriation for fiscal year 2019 is provided solely for implementation of chapter 236, Laws of 2017 (SHB 1445) (dual language in early learning & K-12).

(s) $100,000 of the general fund—state appropriation for fiscal year 2019 is provided solely for implementation of chapter 202, Laws of 2017 (E2SHB 1713) (children's mental health).

(t) $317,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for implementation of chapter 162, Laws of 2017 (SSB 5357) (outdoor early learning programs).

(3) PROGRAM SUPPORT

General Fund—State Appropriation (FY 2019) . . . .(($50,448,000))

      $50,598,000

General Fund—Federal Appropriation. . . .$15,928,000

TOTAL APPROPRIATION. . . .(($66,376,000))

      $66,526,000

The appropriations in this subsection are subject to the following conditions and limitations:

(a) The appropriations provided in this subsection are provided solely for implementation of Engrossed Second Substitute House Bill No. 1661 (child, youth, families department). If the bill is not enacted by July 31, 2017, the amount provided in this subsection shall lapse.

(b)(i) During the 2017-2019 fiscal biennium, the department must revise its agreements and contracts with vendors to include a provision to require that each vendor agrees to equality among its workers by ensuring similarly employed individuals are compensated as equals as follows:

(A) Employees are similarly employed if the individuals work for the same employer, the performance of the job requires comparable skill, effort, and responsibility, and the jobs are performed under similar working conditions. Job titles alone are not determinative of whether employees are similarly employed;

(B) Vendors may allow differentials in compensation for its workers based in good faith on any of the following:

(I) A seniority system; a merit system; a system that measures earnings by quantity or quality of production; a bona fide job-related factor or factors; or a bona fide regional difference in compensation levels.

(II) A bona fide job-related factor or factors may include, but not be limited to, education, training, or experience, that is: Consistent with business necessity; not based on or derived from a gender-based differential; and accounts for the entire differential.

(III) A bona fide regional difference in compensation level must be: Consistent with business necessity; not based on or derived from a gender-based differential; and account for the entire differential.

(ii) The provision must allow for the termination of the contract if the department or department of enterprise services determines that the vendor is not in compliance with this agreement or contract term.

(iii) The department must implement this provision with any new contract and at the time of renewal of any existing contract.

(End of part)

PART III

NATURAL RESOURCES

Sec. 301.  2017 3rd sp.s. c 1 s 301 (uncodified) is amended to read as follows:

General Fund—State Appropriation (FY 2018) . . . .(($485,000))

      $462,000

General Fund—State Appropriation (FY 2019) . . . .(($507,000))

      $483,000

General Fund—Federal Appropriation . . . .$32,000

General Fund—Private/Local Appropriation . . . .(($960,000))

      $959,000

TOTAL APPROPRIATION. . . .(($1,984,000))

     $1,982,000

Sec. 302.  2017 3rd sp.s. c 1 s 302 (uncodified) is amended to read as follows:

General Fund—State Appropriation (FY 2018) . . . .(($20,877,000))

      $19,672,000

General Fund—State Appropriation (FY 2019) . . . .(($21,411,000))

      $24,465,000

General Fund—Federal Appropriation . . . .$106,575,000

General Fund—Private/Local Appropriation . . . .$23,028,000

Reclamation Account—State Appropriation . . . .$4,106,000

Flood Control Assistance Account—State Appropriation . . . .$2,175,000

State Emergency Water Projects Revolving Account—State

Appropriation . . . .$40,000

Waste Reduction/Recycling/Litter Control—State

Appropriation . . . .(($13,736,000))

      $14,035,000

State Drought Preparedness Account—State Appropriation . . . .$204,000

State and Local Improvements Revolving Account (Water

Supply Facilities)—State Appropriation . . . .$164,000

Aquatic Algae Control Account—State Appropriation . . . .$522,000

Water Rights Tracking System Account—State Appropriation . . . .$47,000

Site Closure Account—State Appropriation . . . .$582,000

Wood Stove Education and Enforcement Account—State

Appropriation . . . .$560,000

Worker and Community Right-to-Know Account—State

Appropriation . . . .$1,872,000

Water Rights Processing Account—State Appropriation . . . .$39,000

State Toxics Control Account—State Appropriation . . . .(($147,806,000))

      $149,117,000

State Toxics Control Account—Private/Local

Appropriation . . . .$499,000

Local Toxics Control Account—State Appropriation . . . .(($4,845,000))

      $4,869,000

Water Quality Permit Account—State Appropriation . . . .(($44,119,000))

      $44,421,000

Underground Storage Tank Account—State Appropriation . . . .(($3,635,000))

      $3,666,000

Biosolids Permit Account—State Appropriation . . . .$2,207,000

Environmental Legacy Stewardship Account—State

Appropriation . . . .(($41,259,000))

      $41,440,000

Hazardous Waste Assistance Account—State

Appropriation . . . .(($6,466,000))

      $6,599,000

Radioactive Mixed Waste Account—State Appropriation . . . .(($18,170,000))

      $18,436,000

Air Pollution Control Account—State Appropriation . . . .(($3,437,000))

      $3,650,000

Oil Spill Prevention Account—State Appropriation . . . .(($8,469,000))

      $8,606,000

Air Operating Permit Account—State Appropriation . . . .(($3,787,000))

      $3,819,000

Freshwater Aquatic Weeds Account—State Appropriation . . . .$1,460,000

Oil Spill Response Account—State Appropriation . . . .$7,076,000

Water Pollution Control Revolving Administration

Account—State Appropriation . . . .$3,601,000

TOTAL APPROPRIATION. . . .(($492,774,000))

     $500,656,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $170,000 of the oil spill prevention account—state appropriation is provided solely for a contract with the University of Washington's sea grant program to continue an educational program targeted to small spills from commercial fishing vessels, ferries, cruise ships, ports, and marinas.

(((3))) (2) $15,000,000 of the general fund—state appropriation for fiscal year 2018 and $15,000,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for activities within the water resources program.

(((4))) (3) $228,000 of the general fund—state appropriation for fiscal year 2018 and $227,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for the department to grant to the northwest straits commission to distribute equally among the seven Puget Sound marine resource committees.

(((5))) (4) Within existing resources, the department of ecology must engage stakeholders in a revision of WSR 13-22-073, rule amendments to chapter 173-350 WAC, to revise the proposed rule and submit a report to the senate local government and energy, environment, and telecommunications committees and the house of representatives local government and environment committees by September 1, 2017. The report must include a summary of areas of consensus and dispute, proposed resolution of disputes, a list of engaged stakeholders, a proposed timeline for potential rule adoption, and the most recent draft of proposed amendment language, if any.

Sec. 303.  2017 3rd sp.s. c 1 s 303 (uncodified) is amended to read as follows:

General Fund—State Appropriation (FY 2018) . . . .(($9,645,000))

      $8,993,000

General Fund—State Appropriation (FY 2019) . . . .(($9,945,000))

      $9,288,000

General Fund—Federal Appropriation . . . .$6,981,000

Winter Recreation Program Account—State Appropriation . . . .$3,293,000

ORV and Nonhighway Vehicle Account—State Appropriation . . . .(($232,000))

      $392,000

Snowmobile Account—State Appropriation . . . .$5,633,000

Aquatic Lands Enhancement Account—State Appropriation . . . .$367,000

Recreation Access Pass Account—State Appropriation. . . .$50,000

Parks Renewal and Stewardship Account—State

Appropriation . . . .(($124,759,000))

      $125,374,000

Parks Renewal and Stewardship Account—Private/Local

Appropriation . . . .(($318,000))

      $420,000

TOTAL APPROPRIATION. . . .(($162,723,000))

     $162,289,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $129,000 of the general fund—state appropriation for fiscal year 2018 and $129,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for a grant for the operation of the Northwest weather and avalanche center.

(2) $100,000 of the general fund—state appropriation for fiscal year 2018 and $100,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for the commission to pay assessments charged by local improvement districts.

(3) $700,000 of the parks renewal and stewardship account—state appropriation is provided solely for the commission to replace 32 existing automated pay stations and to install 38 additional automated pay stations within state parks.

(4) (($500,000 of the outdoor education and recreation account—state appropriation is provided solely for the commission to partner with organizations that have at least one veteran on staff in implementation of the no child left inside program.)) Of the amounts that the commission spends on the no child left inside program, $500,000 must be used to partner with organizations that have at least one veteran on staff.

(5) $50,000 of the recreation access pass account—state appropriation is provided solely for the commission, using its authority under RCW 79A.05.055(3) and in partnership with the department of fish and wildlife and the department of natural resources, to coordinate a process to develop options and recommendations to improve consistency, equity, and simplicity in recreational access fee systems while accounting for the fiscal health and stability of public land management. The process must be collaborative and include other relevant agencies and appropriate stakeholders. The commission must contract with the William D. Ruckelshaus Center or another neutral third party to facilitate meetings and discussions with parties involved in the process and provide a report to the appropriate committees of the legislature by December 1, 2017. The process must analyze and make recommendations on:

(a) Opportunities for federal and state recreational permit fee coordination, including the potential for developing a system that allows a single pass to provide access to federal and state lands;

(b) Opportunities to enhance consistency in the way state and federal recreational access fees apply to various types of recreational users, including those that travel to public lands by motor vehicle, boat, bicycle, foot, or another method; and

(c) Opportunities to develop a comprehensive and consistent statewide approach to recreational fee discounts and exemptions to social and other groups including, but not limited to, disabled persons, seniors, disabled veterans, foster families, low-income residents, and volunteers. This analysis must examine the cost of such a program, and should consider how recreational fee discounts fit into the broader set of benefits provided by the state to these social groups. This includes a review of the efficacy, purpose, and cost of existing recreational fee discounts and exemptions, as well as opportunities for new or modified social group discounts and exemptions. The department of veterans affairs and the department of social and health services must be included in this portion of the process.

Sec. 304.  2017 3rd sp.s. c 1 s 304 (uncodified) is amended to read as follows:

General Fund—State Appropriation (FY 2018) . . . .(($1,441,000))

      $1,401,000

General Fund—State Appropriation (FY 2019) . . . .(($1,398,000))

      $1,483,000

General Fund—Federal Appropriation . . . .$3,646,000

General Fund—Private/Local Appropriation . . . .$24,000

Aquatic Lands Enhancement Account—State Appropriation . . . .$495,000

Firearms Range Account—State Appropriation . . . .$37,000

Recreation Resources Account—State Appropriation . . . .(($3,615,000))

      $3,614,000

NOVA Program Account—State Appropriation . . . .$1,054,000

TOTAL APPROPRIATION. . . .(($11,710,000))

     $11,834,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $156,000 of the general fund—state appropriation for fiscal year 2018 and $156,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for the board to grant to the Nisqually River Foundation for implementation of the Nisqually watershed stewardship plan.

(2) $375,000 of the general fund—state appropriation for fiscal year 2018 and $375,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for the salmon recovery funding board to grant to the Hood Canal coordinating council for the sole purpose of conducting an ecosystem impact assessment on the Hood Canal. The assessment is to study any causal relationship between the Hood Canal bridge and migrating steelhead and salmon.

Sec. 305.  2017 3rd sp.s. c 1 s 305 (uncodified) is amended to read as follows:

General Fund—State Appropriation (FY 2018) . . . .(($2,318,000))

      $2,190,000

General Fund—State Appropriation (FY 2019) . . . .(($2,375,000))

      $2,247,000

TOTAL APPROPRIATION. . . .(($4,693,000))

     $4,692,000

Sec. 306.  2017 3rd sp.s. c 1 s 306 (uncodified) is amended to read as follows:

General Fund—State Appropriation (FY 2018) . . . .(($7,301,000))

      $7,074,000

General Fund—State Appropriation (FY 2019) . . . .(($7,264,000))

      $7,321,000

General Fund—Federal Appropriation . . . .$2,301,000

Public Works Assistance Account—State Appropriation. . . .$7,620,000

State Toxics Control Account—State Appropriation . . . .$1,000,000

TOTAL APPROPRIATION. . . .(($25,486,000))

     $25,570,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $7,602,000 of the public works assistance account—state appropriation is provided solely for implementation of the voluntary stewardship program. This amount may not be used to fund agency indirect and administrative expenses.

(2)(a) $50,000 of the general fund—state appropriation for fiscal year 2018 is provided solely for the commission to convene and facilitate a food policy forum. The director of the commission is responsible for appointing participating members of the food policy forum in consultation with the director of the department of agriculture. In making appointments, the director of the commission must attempt to ensure a diversity of knowledge, experience, and perspectives by building on the representation established by the food system roundtable initiated by executive order No. 10-02.

(b) In addition to members appointed by the director of the state conservation commission, four legislators may serve on the food policy forum in an ex officio capacity. Legislative participants must be appointed as follows:

(i) The speaker of the house of representatives shall appoint one member from each of the two largest caucuses of the house of representatives; and

(ii) The president of the senate shall appoint one member from each of the two largest caucuses of the senate.

(c) The commission shall coordinate with the office of farmland preservation and the department of agriculture to avoid duplication of effort. The commission must report to the appropriate committees of the legislature, consistent with RCW 43.01.036, with the forum's recommendations by October 31, 2018.

(3) (($375,000)) $275,000 of the general fund—state appropriation for fiscal year 2018 and (($375,000)) $475,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for grants and technical assistance. Of the amounts provided in this subsection, (($125,000 in each fiscal year is)) $25,000 in fiscal year 2018 and $225,000 in fiscal year 2019 are provided solely for activities related to water quality improvements and fecal coliform DNA speciation statewide.

Sec. 307.  2017 3rd sp.s. c 1 s 307 (uncodified) is amended to read as follows:

General Fund—State Appropriation (FY 2018) . . . .(($46,860,000))

      $45,527,000

General Fund—State Appropriation (FY 2019) . . . .(($46,483,000))

      $47,227,000

General Fund—Federal Appropriation . . . .(($118,809,000))

      $130,476,000

General Fund—Private/Local Appropriation . . . .(($63,920,000))

      $63,988,000

ORV and Nonhighway Vehicle Account—State Appropriation . . . .(($437,000))

      $699,000

Aquatic Lands Enhancement Account—State

Appropriation . . . .$10,460,000

Recreational Fisheries Enhancement—State

Appropriation . . . .(($3,084,000))

      $3,122,000

Warm Water Game Fish Account—State Appropriation . . . .(($2,773,000))

      $2,668,000

Eastern Washington Pheasant Enhancement Account—State

Appropriation . . . .$675,000

State Wildlife Account—State Appropriation . . . .(($118,033,000))

      $117,951,000

Special Wildlife Account—State Appropriation . . . .(($71,000))

      $3,234,000

Special Wildlife Account—Federal Appropriation . . . .$505,000

Special Wildlife Account—Private/Local Appropriation . . . .$3,576,000

Wildlife Rehabilitation Account—State Appropriation . . . .$361,000

Ballast Water Management Account—State Appropriation. . . .$10,000

Hydraulic Project Approval Account—State Appropriation . . . .(($690,000))

      $31,000

Environmental Legacy Stewardship Account—State

Appropriation . . . .$2,765,000

Regional Fisheries Enhancement Salmonid Recovery Account—

Federal Appropriation . . . .$5,001,000

Oil Spill Prevention Account—State Appropriation . . . .$1,122,000

Oyster Reserve Land Account—State Appropriation . . . .$527,000

Performance Audits of Government Account—State

Appropriation. . . .$325,000

Aquatic Invasive Species Management Account—State

Appropriation. . . .$1,658,000

TOTAL APPROPRIATION. . . .(($428,145,000))

     $447,086,000

The appropriations in this section are subject to the following conditions and limitations:

(1) (($467,000)) $67,000 of the general fund—state appropriation for fiscal year 2018 and $467,000 of the general fund—state appropriation for fiscal year 2019 are provided solely to pay for emergency fire suppression costs. These amounts may not be used to fund agency indirect and administrative expenses.

(2) $1,098,000 of the general fund—state appropriation for fiscal year 2018 and $1,098,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for payments in lieu of real property taxes to counties that elect to receive the payments for department-owned game lands within the county.

(3) $415,000 of the general fund—state appropriation for fiscal year 2018, $415,000 of the general fund—state appropriation for fiscal year 2019, and $440,000 of the general fund—federal appropriation are provided solely for county assessments.

(4) Prior to submitting its 2019-2021 biennial operating and capital budget requests related to state fish hatcheries to the office of financial management, the department shall contract with the hatchery scientific review group (HSRG) to review the proposed requests. This review shall: (a) Determine if the proposed requests are consistent with HSRG recommendations; (b) prioritize the components of the requests based on their contributions to protecting wild salmonid stocks and meeting the recommendations of the HSRG; and (c) evaluate whether the proposed requests are being made in the most cost-effective manner. The department shall provide a copy of the HSRG review to the office of financial management with its agency budget proposal.

(5) $400,000 of the general fund—state appropriation for fiscal year 2018 and $400,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for a state match to support the Puget Sound nearshore partnership between the department and the United States army corps of engineers. Prior to implementation of any Puget Sound nearshore ecosystem restoration projects in Whatcom county, the department must consult with and seek, to the maximum extent practicable, consensus on those projects among appropriate landowners, federally recognized Indian tribes, agencies, and community and interest groups.

(6) Within the amounts appropriated in this section, the department shall identify additional opportunities for partnerships in order to keep fish hatcheries operational. Such partnerships shall aim to maintain fish production and salmon recovery with less reliance on state operating funds.

(7) $525,000 of the general fund—state appropriation for fiscal year 2018 and (($425,000)) $525,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for training for a work unit to engage and empower diverse stakeholders in decisions about fish and wildlife, ((and)) the continued conflict transformation with the wolf advisory group, and for cost share partnerships with livestock owners and the use of range riders to reduce the potential for depredation of livestock from wolves. The department shall cooperate with the department of agriculture to shift the responsibility of implementing cost-sharing contracts with livestock producers to use nonlethal actions to minimize livestock loss from wolves and other carnivores to the department of agriculture.

(8) $1,259,000 of the state wildlife account—state appropriation is provided solely for the fish program, including implementation of Substitute House Bill No. 1597 (commercial fishing). If the bill is not enacted by July 31, 2017, the amount provided in this subsection shall lapse.

(9) $1,630,000 of the aquatic invasive species management account, $600,000 of the general fund—federal appropriation, $62,000 of the state wildlife account—state appropriation, and $10,000 of the ballast water management account—state appropriation are provided solely for activities related to aquatic invasive species, including implementation of Substitute House Bill No. 1429 or Substitute Senate Bill No. 5303 (aquatic invasive species). If neither bill is enacted by July 31, 2017, the amounts provided in this subsection shall lapse.

(10) Within amounts provided in this section, the department must consult with affected tribes and landowners in Skagit county to develop and implement a plan designed to address elk-related agricultural damage and vehicular collisions by using all available and appropriate methods including, but not limited to, cooperative fencing projects and harvest in order to minimize elk numbers on private lands and maximize the number of elk located on state and federal lands. The plan must be implemented by September 1, 2018.

(11) Within the appropriations of this section, the department shall initiate outreach with recreational fishing stakeholders so that recreational fishing guide and non-guided angler data can be collected and analyzed to evaluate changes in the structure of guide licensing, with the objectives of: (a) Improving the fishing experience and ensuring equitable opportunity for both guided and non-guided river anglers, (b) managing fishing pressure to protect wild steelhead and other species; and (c) ensuring that recreational fish guiding remains a sustainable economic contributor to rural economies. The department shall convene public meetings in the North Olympic Peninsula and Klickitat River areas, and may include other areas of the state, and shall provide the appropriate standing committees of the legislature a summary of its findings, by December 31, 2017.

(12) (($450,000 of the general fund—state appropriation for fiscal year 2018 and $450,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for the department to grant to the regional fisheries enhancement groups.

(13)))(a) $5,500,000 of the general fund—state appropriation for fiscal year 2018, $5,500,000 of the general fund—state appropriation for fiscal year 2019, and $325,000 of the performance audits of government account—state appropriation are provided solely as one-time funding to support the department in response to its budget shortfall. Of the amounts provided in this subsection, $450,000 of the general fund—state appropriation for fiscal year 2018 and $450,000 of the general fund—state appropriation for fiscal year 2019 are provided solely for the department to grant to the regional fisheries enhancement groups. In order to address this shortfall on a long-term basis, the department must develop a plan for balancing projected revenue and expenditures and improving the efficiency and effectiveness of agency operations, including:

(i) Expenditure reduction options that maximize administrative and organizational efficiencies and savings, while avoiding hatchery closures and minimizing impacts to fisheries and hunting opportunities; and

(ii) Additional revenue options and an associated outreach plan designed to ensure that the public, stakeholders, the commission, and legislators have the opportunity to understand and impact the design of the revenue options.

(iii) The range of options created under (a)(i) and (ii) of this subsection must be prioritized by impact on achieving financial stability, impact on the public and fisheries and hunting opportunities, and on timeliness and ability to achieve intended outcomes.

(b) In consultation with the office of financial management, the department must consult with an outside management consultant to evaluate and implement efficiencies to the agency's operations and management practices. Specific areas of evaluation must include:

(i) Potential inconsistencies and increased costs associated with the decentralized nature of organizational authority and operations;

(ii) The department's budgeting and accounting processes, including work done at the central, program, and region levels, with specific focus on efficiencies to be gained by centralized budget control;

(iii) Executive management, program management, and regional management structures, specifically addressing accountability.

(c) In carrying out these planning requirements, the department must provide quarterly updates to the commission, office of financial management, and appropriate legislative committees. The department must provide a final summary of its process and plan by ((May)) September 1, 2018.