AN ACT Relating to the family independence program; amending RCW 43.19.1901; adding a new chapter to Title 74 RCW; and providing an expiration date.

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

NEW SECTION. Sec. 1. SHORT TITLE. This chapter may be cited as the family independence program.

NEW SECTION. Sec. 2. INTENT. The legislature hereby establishes as state policy the goal of economic independence for employable adults receiving public assistance, through employment, training, and education. The legislature finds that children living in families with incomes below the needs standard have reduced opportunities for physical and intellectual development. A family's economic future is frequently not improved by the current program. The legislature recognizes that additional governmental and private-sector efforts, with emphasis on education, training, and work opportunities, are required.

Therefore, in order to break the cycle of poverty and dependence, a family independence program is established. Participating families are to receive benefits under this program at no less than they would otherwise have been entitled to receive.

It is the intent of the legislature to maintain the existing partnership between state and federal government and that this program remain part of the federal welfare entitlement program. The legislature seeks federal authority for a five-year demonstration project and recognizes that waivers and congressional action may be required to achieve our purpose. The legislature does not seek a block grant approach to welfare.

In establishing employment goals for welfare recipients, the legislature recognizes the substantial participation in the workforce of women with preschool children, and the difficulty in reentering employment after long absences.

The objectives of this chapter are to assure that: The maximum number of recipients of public assistance become independent and self-sustaining through employment; financial incentives be available to recipients participating in education, training, and work programs; the number of children growing up in poverty be substantially reduced; and unemployable recipients be afforded a basic level of financial and medical assistance consistent with the state' financial capabilities.

NEW SECTION. Sec. 3. DEFINITIONS. Unless the context requires to the contrary, the definitions in this section apply throughout this chapter.

(1) "Benchmark standard" is the basic monthly level of cash benefits, established according to family size, which equals the state's payment standard under the aid to families with dependent children program, plus an amount not less than the full cash equivalent of food stamps for which any family of such size would otherwise be eligible.

(2) "Department" means the department of social and health services.

(3) "Enrollee" means the head(s) of household of a family eligible to receive financial assistance or other services under the family independence program.

(4) "Executive committee" or "committee" means the family independence program executive committee, authorized by and subject to the provisions of this chapter, to develop policy, procedure, program standards, data collection and information systems for family independence programs, including making budget allocations, setting incentive rates within appropriated funds, setting cost-sharing requirements for child care and medical services, and making related financial reports under chapter 43.88 RCW.

(5) "Family independence program services" include but are not limited to job creation, employment, work programs, training, education, family planning services, income and medical support, parent education, child care, and training in family responsibility and family management skills.

(6) "Food stamps" means the food purchase benefit available through the United States department of agriculture.

(7) "Gross income" means the total income of an enrollee from earnings, cash assistance, and incentive benefit payments.

(8) "Incentive benefit payments" means those additional benefits payable to enrollees due to their participation in education, training, or work programs.

(9) "Maximum income levels" are those levels of income and cash benefits, both benchmark and incentive, which the state establishes as the maximum level of total gross cash income for persons to continue to receive cash benefits.

(10) "Medical benefits" or "medicaid" are categorically or medically needy medical benefits provided in accordance with Title XIX of the federal social security act. Eligibility and scope of medical benefits under this chapter shall incorporate any hereinafter enacted changes in the medicaid program under Title XIX of the federal social security act.

(11) "Noncash benefits" includes benefits such as child care and medicaid where the family receives a service in lieu of a cash payment related to the purposes of the family independence program.

(12) "Payment standard" is equal to the standard of need or a lesser amount if rateable reductions or grant maximums are established by the legislature. Standard of need shall be based on periodic studies of actual living costs and generally recognized inflation indices and shall include reasonable allowances for shelter, fuel, food, transportation, clothing, household maintenance, and necessary incidentals. The standard of need may take into account the economies of joint living arrangements, but there shall not be proration of any portion of assistance grants unless the amount of the payment standard is equal to the standard of need.

(13) "Subsidized employment" means employment for which the family independence program has provided the employer the financial resources, in whole or in part, to compensate an enrollee for the performance of work.

(14) "Unsubsidized employment" means employment for which the family independence program has not provided the employer the financial resources to compensate an enrollee for the performance of work.

NEW SECTION. Sec. 4. ELIGIBILITY FOR BENEFITS. (1) Upon implementation of the family independence program, all applicants for public assistance shall be enrolled in the family independence program and shall be eligible to receive financial and medical benefits under the following criteria:

(a) A person who is a "dependent child" as defined in 42 U.S.C. Sec. 606(a) or 42 U.S.C. Sec. 607(a), the caretaker relative(s) with whom the dependent child resides, or a pregnant woman as defined in 42 U.S.C. Sec. 606(b); and

(b) A person whose resources do not exceed those established by the United States department of health and human services at 45 C.F.R. Sec. 233.20(a)(3)(i)(B); and

(c) A person whose income does not exceed the benchmark standard plus appropriate incentive benefit payments established in accordance with this chapter. However, subject to subsection (2) of this section and section 15 of this act, the department may limit family independence program eligibility to exclude those new applicants whose monthly income would render them ineligible for aid to families with dependent children benefits under the payment level in effect at the time of the application. For the purposes of this subsection, a new applicant is a person who has not been a recipient of aid to families with dependent children or an enrollee for ninety days prior to application.

(2) Subject to the availability of funds for family independence program benefits, the department may expand eligibility to authorize family independence program benefits for additional categories of persons, but the department shall ensure that no person who would be eligible for benefits under the program requirements in place in this state as of January 1, 1988, pursuant to Titles IV-A and XIX of the federal social security act shall be denied financial or medical benefits under this chapter.

NEW SECTION. Sec. 5. FAMILY INDEPENDENCE PROGRAM‑-EXECUTIVE COMMITTEE‑-ADVISORY COMMITTEE‑-RECORDS‑-QUORUM‑-COMPENSATION AND TRAVEL EXPENSES. (1) The family independence program executive committee is hereby established.

(2) The executive committee shall consist of five members as follows: The secretary of social and health services, the commissioner of the employment security department, the senior official from each of those agencies who is responsible for the family independence program, and an official of the office of financial management.

(3) The executive committee shall appoint and consult with a geographically balanced advisory committee of not less than ten nor more than twenty members broadly representative of business, labor, education, community, enrollee, civic groups, and the public at large. At least one-third of the membership shall be composed of community and enrollee representatives. The advisory committee members shall serve terms of four years. In addition, the speaker of the house of representatives and the president of the senate shall appoint a member of each caucus of the legislature to the advisory committee.

The initial terms of the advisory committee members shall be staggered in a manner determined by the executive committee. In the event of a vacancy on the advisory committee due to death, resignation, or removal of one of the advisory committee members, and upon the expiration of the term of any member, the executive committee shall appoint a successor for a term expiring on the fourth anniversary of the successor's date of the appointment, except that vacancies in a position appointed by a legislative officer shall be filled by that officer. Advisory committee members may be reimbursed for travel expenses as provided in RCW 43.03.050 and 43.03.060.

(4) If any one of the state offices on the executive committee is abolished, the resulting vacancy on the executive committee shall be filled by the state officer who shall succeed substantially to the power and duties of the abolished office.

(5) The secretary of social and health services shall serve as chairperson of the executive committee. The commissioner of the employment security department shall serve as vice-chairperson. The executive committee shall appoint a secretary who need not be a member of the executive committee.

(6) The secretary of the executive committee shall keep a record of the proceedings of the committee meetings.

(7) Three members of the executive committee constitute a quorum. The executive committee may act on the basis of motions. Motions shall be adopted upon the affirmative vote of a majority of a quorum of members present at any meeting of the executive committee. A vacancy in the membership of the committee does not impair the power of the committee to act under this chapter. However, in the case of a vacancy in one of the offices which constitutes the membership of the committee, the individual acting in the capacity of that officer shall also act as a member of the committee.

(8) The executive committee shall consult with the advisory committee on significant matters before taking action on such matters. The meetings of the executive committee are subject to chapter 42.30 RCW, the open public meetings act.

NEW SECTION. Sec. 6. POWERS AND DUTIES. (1) The executive committee shall direct the appropriate state agencies, subject to the provisions of this chapter and consistent with available funds, to do the following in order to accomplish the purposes of this chapter:

(a) To carry out job development activities, subsidize employment in public, private, volunteer, and nonprofit agencies, and provide training funds for enrollees prior to and during employment;

(b) To carry out training and education activities as set forth in section 7 of this act;

(c) To allow enrollees, consistent with available appropriations, to receive the incentive benefit payments while attending higher education and vocational institutions;

(d) To fund other related family services, including, but not limited to, child care services for enrollees who participate in the education, training, and work programs authorized by the executive committee;

(e) To receive federal and state funds for the family independence program and to otherwise manage the program so as to operate within legislatively determined funding limitations. However, the executive committee has no authority to alter the benchmark standard established by the legislature;

(f) To mandate the participation of enrollees in registration and assessment activities unless persons meet the exemption criteria set forth in subsection (1)(g)(iv) of this section;

(g) To mandate the participation of enrollees in education, training, or work activities, subject to the following:

(i) There shall be no mandatory participation of enrollees in education, training, or work activities during the first two years after implementation of this chapter;

(ii) Participation in training or work activities shall be mandatory unless the executive committee, after the first two years of operating the program, evaluates the effectiveness of a voluntary approach and determines that a mandatory participation requirement is not necessary. The evaluation shall include the availability of training and job resources in relation to the number of enrollees participating;

(iii) If mandatory participation is suspended, it may be suspended by rule on a county or regional basis, but may be retained for a discrete group of enrollees;

(iv) When participation in work and training requirements becomes mandatory, the following persons are exempt from the mandatory participation requirement:

(A) One parent with a child under six months of age in the home;

(B) Persons under sixteen years of age or over sixty-four years of age;

(D) Persons who are incapacitated, temporarily ill, or are needed at home to care for an impaired person;

(E) A person who is in the third trimester of pregnancy; and

(F) A person who has not yet been individually notified in writing of the requirement to participate in registration, assessment, work, or training requirements or the expiration of his or her exempt status.

(h) To suspend and reinstate, based upon periodic review, the mandatory requirement as affected by the availability of training and job resources;

(i) To determine the level and types of program benefits and incentive benefit payments in accordance with this chapter, together with specific administrative requirements to be met by program enrollees;

(j) To authorize other individuals served under aid to families with dependent children‑-regular and employable to voluntarily seek enrollee status;

(k) To establish rules for the treatment of earnings and unearned income by enrollees as set forth in section 15 of this act;

(l) To establish sanctions consistent with section 13(3) of this act which may be applied to enrollees and the conditions under which program benefits may be reduced or terminated;

(m) To establish due process procedures as set forth in section 9 of this act;

(n) To establish the conditions under which child care and other related social services, including parent education and counseling, will be provided;

(o) To provide child care without cost to enrollees whose income is below the maximum authorized income level;

(p) To establish copayment requirements for noncash benefits as set forth in section 8 of this act;

(q) To establish the conditions and terms, and to enter into contracts, under which public, private, and not-for-profit sector jobs will be created and financed by the executive committee and the circumstances under which training for employees or potential employees of public, private, and for-profit employers will be subsidized through the family independence program;

(r) To establish the terms and provisions under which training and job development services may be extended to the absent parent(s) of the children of enrollees;

(s) To establish the frequency and method for redetermining eligibility;

(t) To undertake the acquisition of all such services authorized in this chapter on an exempt basis, as provided in RCW 43.19.1901, from the public bid requirements of RCW 43.19.190 through 43.19.200;

(u) To establish a schedule by geographic area for implementation of the family independence program. Until the family independence program is implemented in a particular geographic area, applicants in that area shall continue to be eligible for benefits under the aid to families with dependent children program and shall have a right to convert to the family independence program when it is available in that area;

(v) To investigate and consider the use of private nonprofit entities for job placement services; and

(w) To determine methods of administration and do all other things necessary to carry out the purposes of this chapter.

(2) The executive committee with assistance from the appropriate agencies shall promulgate rules in accordance with chapter 34.04 RCW in order to accomplish the purposes of this chapter. Policy decisions of the executive committee that require rule-making shall not be final until the adoption of the necessary rules.

NEW SECTION. Sec. 7. TRAINING AND EDUCATION ACTIVITIES. (1) The department of social and health services and the employment security department shall provide education and training opportunities to enrollees when appropriate, pursuant to the employability plan required in section 16 of this act, and shall emphasize efforts which prepare enrollees for long-term unsubsidized employment and economic independence. This shall include opportunities for: (a) Enrollees who seek to pursue basic remedial education, such as completion of general equivalency diploma, adult basic education, and English proficiency training; (b) enrollees who seek vocational or skills training through on-the-job training or enrollment in a skills training or vocational training program, including those programs at a vocational training institute or community college; and (c) enrollees seeking higher education, including community college and four-year college degrees.

(2) Pursuant to this section, the department shall adopt rules setting forth criteria for determinations of appropriate training and education programs for an enrollee. Determinations of an appropriate training and education plan shall be solely based upon factors relevant to the individual's assessment, including skills, financial needs, work history, abilities, interests, and limitations, and to the labor market assessment, including the anticipated availability of employment in the desired field of training or education and wage level of employment in the field.

(3) Within available funds, the department shall provide for payment of support services including child care and family independence program benefits at the benefit incentive level for education and training as set forth in section 13 of this act to support appropriate training and education programs of enrollees. When the department has approved the funding of such payments for individual's appropriate training or education plan, such funding shall continue, subject to an annual review, for the duration of the individual's participation in the approved training or education program. The executive committee shall establish by rule criteria for funding of appropriate training and education programs.

NEW SECTION. Sec. 8. DUE PROCESS PROCEDURES. The executive committee shall direct the department of social and health services and the employment security department to adopt rules providing due process of law protections to applicants for and recipients of family independence program benefits. The requirements shall confer protections no less than those which the federal statutes and regulations confer on participants in the food stamp, aid to families with dependent children, and work incentive programs. The protections shall include, but are not limited to, the following:

(1) The departments shall provide adequate advance written notice to applicants or enrollees of any agency action to deny, award, reduce, terminate, increase, or suspend benefits or to change the manner or form of payment or of any agency action requiring the enrollee to take any action. Adequate notice includes a statement of what action the agency intends to take, the reasons for the intended agency action, the specific rules supporting the action, an explanation of the individual's right to request an administrative fair hearing, how to request one, and the circumstances under which assistance is continued pending such a hearing if requested.

(2) Advance notice must be mailed to enrollees at least ten days prior to the date on which the proposed action would become effective.

(3) An applicant or enrollee aggrieved by an action or decision of the departments, including requiring or denying participation in a work, training, or education activity, has the right to request a fair hearing to be conducted by the office of administrative hearings in accordance with chapters 34.12 and 34.04 RCW. The aggrieved person is entitled to all fair hearing rights provided under RCW 74.08.070 and to the right of judicial review therefrom as provided in RCW 74.08.080.

(4) When an enrollee requests a hearing during the advance notice period, the departments shall not implement the challenged action until a written decision is rendered after a hearing. The advance notice period is the period prior to the effective date of the proposed action or ten days from the date of adequate written notice, whichever is later. Any assistance received pending a hearing or hearing decision may be considered to be an overpayment if the decision is against the enrollee.

(5) Financial, food stamp, and medical assistance shall be furnished to eligible individuals in a timely manner and shall be continued regularly to all eligible individuals until they are found to be ineligible. Applications should be disposed of as soon as possible in accordance with 7 C.F.R. Sec. 273.2 and 45 C.F.R. Sec. 206.10 and no later than thirty days from the date of application unless good cause applies.

NEW SECTION. Sec. 9. NONCASH BENEFITS AND REQUIRED FINANCIAL PARTICIPATION. (1) When an enrollee ceases to receive family independence program cash benefits as a result of increased earnings, the enrollee shall be eligible to receive family independence program noncash child care and medical benefits for a period of one year following the cessation of family independence program cash eligibility.

(2) The executive committee may authorize the department to require financial participation based on income of the enrollee in the cost of the family independence program noncash benefits, but such financial participation requirement shall not exceed twenty-five percent of the cost of the noncash benefit or twenty-five percent of the amount by which the family's income exceeds the maximum income level, whichever is less.

(3) No person may be required to participate in the cost of medical benefits if the person would have been eligible for medicaid benefits at no additional cost under the medically needy income levels or the program requirements in effect as of January 1, 1988.

NEW SECTION. Sec. 10. LIMITATIONS ON SUBSIDIZED AND UNSUBSIDIZED EMPLOYMENT POSITIONS. (1) Enrollees referred to subsidized and unsubsidized employment positions established pursuant to this chapter shall not be considered employees of the executive committee or the state solely because of their status as enrollees in the family independence program. Enrollees in subsidized and unsubsidized employment positions established pursuant to this chapter shall be considered employees of the agency or employer sponsoring their employment. Enrollees in such subsidized and unsubsidized positions shall receive and enjoy the following protections and benefits of the sponsoring employer including, but not limited to, worker's compensation, old age and survivors health insurance, protections of a collective bargaining agreement, sick leave, retirement, medical benefits, vacation leave, and hours of work. Enrollees in such subsidized and unsubsidized positions shall also be covered for purpose of unemployment compensation, notwithstanding RCW 50.44.040(5) to the contrary.

(2) Subsidized and unsubsidized positions under this chapter to which enrollees are referred shall not be created as a result of, nor result in, any of the following:

(a) Displacement of currently employed workers or authorized positions, for the purpose of employing enrollees, including partial displacement such as reduction in hours of nonovertime work, wages, or other employment benefits;

(b) The filling of subsidized and unsubsidized positions that would otherwise be a promotional opportunity;

(c) The filling of a subsidized or unsubsidized position before compliance with applicable personnel procedures and collective bargaining agreements, including in the instance of subsidized jobs the written concurrence from any affected union representative organization;

(d) The filling of a subsidized or unsubsidized position created by a reduction in work force or change of employers;

(e) A strike, lockout, or other bona fide labor dispute, or a violation of any existing collective bargaining agreement between employees and employers;

(f) Decertification of any bargaining unit;

(g) Creation of a new classification that has the intent or effect of subverting the intent of this section.

(3) Enrollees in subsidized and unsubsidized employment shall not continue participation at a place of employment that is involved in a strike, lockout, or other bona fide labor dispute.

(4) The employment security department shall establish a dispute-resolution process for resolving disagreements arising from this section or other employment-related sections of this chapter.

NEW SECTION. Sec. 11. COMPENSATION FOR ENROLLEES. The executive committee shall direct that no enrollee shall be referred to subsidized or unsubsidized employment in which the enrollee would be paid at a rate less than the highest of the following:

(1) The minimum wage set out in section 6 (a)(1) of the fair labor standards act of 1938, as amended, or as established by state law;

(2) The prevailing rate of pay for persons employed in similar occupations by the same employer;

(3) The minimum entrance rate for inexperienced workers in the same occupation with the employer or, if the occupation is new to the employer, the prevailing entrance rate for the occupation among other employers in the area or community, or the applicable minimum rate required by an applicable bargaining agreement; or

(4) The prevailing rate established in accordance with the Davis-Bacon act, as amended, or the service contract act, as amended, for enrollees working in occupations covered by the applicable acts.

NEW SECTION. Sec. 12. REPORT. The executive committee shall submit a child care plan, which may include creative solutions to assist enrollees in making child-care arrangements, and an employment plan to the legislature by January 1, 1988. The executive committee, in consultation with the superintendent of public instruction, shall submit a plan to the legislature by January 1, 1988, setting forth methods for assisting high school students who are parents or pregnant to remain in school and complete their high school education.

The executive committee shall report annually to the governor and the appropriate committees of the legislature, and the executive committee shall make suggestions for such legislative action as it deems necessary.

NEW SECTION. Sec. 13. BENCHMARK STANDARD AND INCENTIVE BENEFIT PAYMENTS. (1) The legislature shall determine the benchmark standard for enrollees. The legislature may adjust the benchmark standard periodically.

(2) Enrollees shall receive cash assistance which, when added to other income, provides total income not less than the benchmark standard set by the legislature. Enrollees participating in work, education, or training programs shall receive incentive benefit payments which, when added to other income, provides gross income not less than the levels which shall be set as follows:

(a) One hundred five percent of the benchmark standard and in no event less than eighty percent of the net standard of need for enrollees participating in training or education programs;

(b) One hundred fifteen percent of the benchmark standard and in no event less than ninety percent of the net standard of need for enrollees working half time, but the department may authorize a higher incentive benefit payment level for enrollees working part time; and

(c) One hundred thirty-five percent of the benchmark standard and in no event less than the net standard of need for enrollees working full time.

(3) Family independence program cash benefits shall not be available to meet the needs of enrollees for whom participation in the work and training components of the family independence program is mandatory and who refuse without good cause to participate in such programs. However, medical benefits for such sanctioned individuals and payments on behalf of the other members of the family shall be provided. In such cases, payments to the remaining family members may be in the form of protective payee payments unless, after reasonable efforts, the state is unable to locate an appropriate protective payee, in which case the sanctioned individual can be the payee for the remaining family members. A participant under such sanction is eligible for the full benchmark plus appropriate incentive benefit level once he or she participates.

(4) The department, at the direction of the executive committee, may increase or decrease the incentive benefit payment levels based on the availability of funds.

NEW SECTION. Sec. 14. CURRENT PROGRAM BENEFITS ASSURED. No applicant for or recipient of family independence program benefits shall receive less financial assistance in family independence program benefits than the sum of the aid for families with dependent children cash benefits and the cash equivalent of food stamp benefits the applicant would have received under the program requirements of the federal law and under the benefit levels in place as of January 1, 1988, as adjusted to reflect all increases in the federal food stamp benefit amounts and in the Washington state payment standard for aid to families with dependent children. Funds provided to the state under Title IV-A of the federal social security act and under the federal food stamp program shall be used first to make payments at one hundred percent of the benchmark level to all enrollees of the family independence program in accordance with the state plan, as well as to all recipients of aid to families with dependent children. Any remaining funds provided by the federal government may be used at the state's discretion for incentive payments and services to either enrollees or recipients of aid to families with dependent children in accordance with the purposes of this chapter.

NEW SECTION. Sec. 15. DETERMINING FINANCIAL NEED AND TREATMENT OF INCOME. The department shall establish rules for the determination of financial need and the treatment of income of enrollees consistent with this section.

(1) Income and resources shall be reasonably evaluated and cannot be considered available to an applicant or recipient unless actually available.

(2) The following shall be excluded as income in family independence program eligibility and need determinations: The value of medical benefits, child care, higher education benefits, earned income tax credit, income tax refunds, any housing subsidy, energy assistance, the earnings of a child, retroactive family independence program benefits, the first fifty dollars per month of the current child support obligation received by a family, and any benefit or moneys that any provision of federal law in effect on January 1, 1988, excludes from being considered income for eligibility for aid to families with dependent children or food stamps or other exclusions which Congress may hereafter enact.

(3) The executive committee may direct the department to establish methods for evaluating what portion of income is considered gross income for persons whose income is earned over a longer period of time than the period in which it is received and for measuring the gross income of self-employed persons.

NEW SECTION. Sec. 16. ENROLLEE PARTICIPATION. (1) All enrollees shall register for work, training, and education activities unless they are exempt.

(2) All registrants shall receive an assessment to evaluate the appropriate work, education, or training options for that individual.

(3) For those enrollees who seek to pursue work, training, and education activities, and for those enrollees who are required in accordance with this chapter to so participate, the state agencies and the enrollee shall jointly develop an employability plan which sets forth the participation activity or sequence of activities and the available supportive services. In some instances, the plan may require additional assessment. The plan is subject to the approval of the state agencies. An enrollee may seek a modification of the employability plan, or an administrative review if mutual agreement cannot be achieved.

(4) Appropriate child care and other social services shall be available to enable an enrollee to participate in work, training, or education activities.

(5) Prior to the determination that a mandatory enrollee has refused to cooperate, efforts must be made at conciliation of the dispute consistent with 45 C.F.R. Sec. 224.63.

(6) The agencies shall adopt rules setting forth criteria that provide good cause for an enrollee's refusal to participate in or accept a specific assignment of proposed work, education, or training activities. The criteria shall include, but need not be limited to, the following:

(a) No suitable child care is available without cost to the enrollee;

(b) The assignment is not within the scope of the enrollee's employability plan;

(d) The distance of the assignment from the enrollee's home makes participation impracticable;

(e) The assignment would result in a loss of income to the enrollee's family;

(f) Exigent personal or family circumstances would interfere with successful participation in the assignment;

(g) The assignment involves conditions which are in violation of applicable health and safety regulations;

(h) The assignment would interrupt a program in process at the undergraduate or vocational level which is reasonably expected to result in economic self-sufficiency; or

(i) The best interests of a child or children in the family would be served by the parent providing full or part-time care in the home due to the particular personal or family circumstances of the enrollee's family.

NEW SECTION. Sec. 17. IMPLEMENTATION OF PROGRAM. (1) The family independence program shall not be implemented before February 28, 1988, and shall not be implemented until specifically authorized by the legislature, including ratification of the plan pursuant to subsection (4) of this section. However, upon the effective date of this section, the executive committee shall be appointed and shall carry out those functions necessary to plan for the implementation of the family independence program, including securing federal approval.

(2) The governor shall report to the legislature at least once each quarter of 1987 on the progress of the executive committee's efforts to secure federal approval of the family independence program.

(3)(a) The governor shall seek congressional action on any federal legislation necessary to implement this chapter. The governor shall seek legislation that provides that any program under this chapter shall be a demonstration project which remains within the federal aid to families with dependent children system under Title IV of the federal social security act.

(b) Any agreements with the federal government necessary to implement the family independence program shall provide that any program under this chapter shall be a demonstration project which remains within the federal aid to families with dependent children system under Title IV of the federal social security act. Such agreements shall provide for waivers from the federal aid to families with dependent children system only to the extent necessary, in the discretion of the governor, to implement this chapter.

(4) If all agreements between the state and federal governments which are necessary to implement the family independence program have been completed before February 1, 1988, a plan outlining such agreements shall be submitted to the legislature no later than February 7, 1988. Copies of all such agreements and any proposed changes to state statute shall be submitted to the legislature with the plan. The plan shall become effective only upon ratification by the legislature.

(5) If all agreements between the state and federal governments necessary to implement the family independence program have not been completed by February 1, 1988, an implementation plan including any proposed agreements shall be submitted to the legislature. After review of such plan, the legislature may authorize any affected departments to enter into agreements that are in all material respects consistent with the implementation plan. The executive committee may proceed with implementation of the family independence program if all necessary agreements are obtained.

(6) Any agreements with the federal government pursuant to this chapter shall provide that such agreements may be canceled by the state or federal government upon six months' notice or immediately upon mutual agreement. If the agreements are canceled, those enrollees in the family independence program who are eligible for the aid to families with dependent children, medicaid, and the food stamp programs shall be converted to those programs.

(7) Subject to the approval of the executive committee, the department of social and health services and the employment security department shall enter into an interagency agreement for carrying out appropriate administrative functions and purposes as required with respect to the family independence program to be undertaken in this state.

NEW SECTION. Sec. 18. REFERENCE TO OTHER LAWS. Unless the language specifically states to the contrary, any reference in this chapter to a provision or requirement of federal law or regulations refers to that provision as of January 1, 1988.

NEW SECTION. Sec. 19. CAPTIONS. Section captions as used in this chapter do not constitute any part of the law.

Sec. 20. Section 1, chapter 104, Laws of 1967 ex. sess. as amended by section 102, chapter 3, Laws of 1983 and RCW 43.19.1901 are each amended to read as follows:

The term "purchase" as used in RCW 43.19.190 through 43.19.200, and as they may hereafter be amended, shall include leasing or renting: PROVIDED, That the purchasing, leasing or renting of electronic data processing equipment shall not be included in the term "purchasing" if and when such transactions are otherwise expressly provided for by law.

The acquisition of job services and all other services for the family independence program under chapter 74.--!sc ,1RCW (sections 1 through 19 of this 1987 act) shall not be included in the term "purchasing" under this chapter.

NEW SECTION. Sec. 21. Sections 1 through 19 of this act shall constitute a new chapter in Title 74 RCW.

NEW SECTION. Sec. 22. Sections 1 through 19 of this act shall expire on June 30, 1989, unless extended by law.

NEW SECTION. Sec. 23. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.