In developing the program set forth in *RCW
74.08.550, the department shall, to the extent possible, and consistent with federal law, enlist the services of persons receiving grants under the provisions of chapter
74.08 RCW and chapter
74.12 RCW to carry out the services enumerated under **RCW
74.08.541. To this end, the department shall establish appropriate rules and regulations designed to determine eligibility for employment under this section, as well as regulations designed to notify persons receiving such grants of eligibility for such employment. The department shall further establish a system of compensation to persons employed under the provisions of this section which provides that any grants they receive under chapter
74.08 RCW or chapter
74.12 RCW shall be diminished by such percentage of the compensation received under this section as the department shall establish by rules and regulations.