BILL REQ. #:  S-2862.2 



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SENATE BILL 5938
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State of Washington62nd Legislature2011 Regular Session

By Senators Hargrove and Zarelli

Read first time 04/14/11.   Referred to Committee on Ways & Means.



     AN ACT Relating to the disability lifeline programs; amending RCW 74.04.005, 43.330.175, and 43.185C.060; reenacting and amending RCW 74.09.035 and 43.84.092; adding new sections to chapter 74.04 RCW; creating a new section; providing an effective date; and declaring an emergency.

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

NEW SECTION.  Sec. 1   A new section is added to chapter 74.04 RCW to read as follows:
     (1) The disability lifeline expedited program may provide aid and support in accordance with the conditions set out in this subsection.
     (a) Aid and support may be provided to persons who are not eligible to receive federal aid assistance, other than basic food benefits transferred electronically and medical assistance, and meet one of the following conditions:
     (i) Are pregnant and in need, based upon the current income and resource requirements of the federal temporary assistance for needy families program; or
     (ii) Are likely to qualify for federal supplemental security income benefits based on medical and behavioral health evidence that appears to meet the disability standards used for the federal supplemental security income program, based upon an examination by an appropriate health care provider. In determining whether an applicant is likely to meet the disability standards of the federal supplemental security income program, the department should give full consideration to the cumulative impact of an applicant's multiple impairments, an applicant's age, and his or her vocational and educational history. To improve access to timely evaluations, the department should allow mid-level practitioners, such as advanced registered nurse practitioners and licensed mental health practitioners, to conduct evaluations, with review and approval by medical practitioners. The process should be sufficient to indicate a likelihood of whether a person would meet the federal supplemental security income disability standard; and
     (A) Are citizens or aliens lawfully admitted for permanent residence or otherwise residing in the United States under color of law;
     (B) Have furnished the department his or her social security number. If the social security number cannot be furnished because it has not been issued or is not known, the applicant shall apply for a number prior to authorization of benefits, and the applicant shall provide the social security number to the department upon receipt;
     (C) Meet income and resource standards established by the department, consistent with any standards established by the legislature in the biennial omnibus appropriations act; and
     (D) Have not refused or failed without good cause to participate in drug or alcohol treatment if an assessment by a certified chemical dependency counselor indicates a need for such treatment. Good cause must be found to exist when a person's physical or mental condition, as determined by the department, prevents the person from participating in drug or alcohol dependency treatment, when needed outpatient drug or alcohol treatment is not available to the person in the county of his or her residence or when needed inpatient treatment is not available in a location that is reasonably accessible for the person.
     (b) The following persons are not eligible for the disability lifeline expedited program:
     (i) Persons who are unemployable due primarily to alcohol or drug addiction. These persons shall be referred to appropriate assessment, treatment, shelter, or supplemental security income referral services as authorized under chapter 74.50 RCW. Referrals shall be made at the time of application or at the time of eligibility review. This subsection shall not be construed to prohibit the department from granting disability lifeline expedited benefits to alcoholics and drug addicts who are incapacitated due to other physical or mental conditions that meet the eligibility criteria for the disability lifeline expedited program;
     (ii) Persons who refuse or fail to cooperate in obtaining federal aid assistance, without good cause.
     (c) Persons may receive disability lifeline expedited benefits pending application for federal supplemental security income benefits. The monetary value of any disability lifeline expedited benefit that is subsequently duplicated by the person's receipt of supplemental security income for the same period shall be considered a debt due the state and shall by operation of law be subject to recovery through all available legal remedies.
     (d) No person may be considered an eligible individual for disability lifeline expedited benefits with respect to any month if during that month the person:
     (i) Is fleeing to avoid prosecution of, or to avoid custody or confinement for conviction of, a felony, or an attempt to commit a felony, under the laws of the state of Washington or the place from which the person flees; or
     (ii) Is violating a condition of probation, community supervision, or parole imposed under federal or state law for a felony or gross misdemeanor conviction.
     (e) For purposes of this subsection (1), "aid and support" means as follows:
     (i) For persons who are homeless persons as defined in RCW 43.185C.010(9), a housing voucher and a monthly stipend, the amount of each to be established in the biennial omnibus appropriations act; or
     (ii) For persons who are not homeless persons, a monthly stipend, the amount of which shall be determined in the biennial omnibus appropriations act.
     (2) The disability lifeline aged, blind, and disabled program shall provide aid and support to persons who are citizens or aliens lawfully admitted for permanent residence or otherwise residing in the United States under color of law, meet the age, blindness, or disability standards of the federal supplemental security income program but are ineligible for federal supplemental security income benefits for a reason other than failure to cooperate with program requirements.

NEW SECTION.  Sec. 2   A new section is added to chapter 74.04 RCW to read as follows:
     The disability lifeline unemployable program is established to provide support services in accordance with the conditions set out in this section. Nothing in this section creates an entitlement to receipt of support services for those persons who meet the eligibility standards under this section.
     (1) To the extent of available funding and as provided in the biennial omnibus appropriations act, the following persons are eligible to receive medical care services under RCW 74.09.035 and disability lifeline unemployable support services:
     (a) Persons who are not eligible to receive aid and support under the disability lifeline expedited or aged, blind, and disabled programs under section 1 of this act, or federal aid assistance, other than basic food benefits transferred electronically and medical assistance, and are incapacitated from gainful employment by reason of bodily or mental infirmity that will likely continue for a minimum of ninety days as determined by the department. The standard for incapacity in this subsection, as evidenced by the ninety-day duration standard, is not intended to be as stringent as federal supplemental security income disability standards;
     (b) Are citizens or aliens lawfully admitted for permanent residence or otherwise residing in the United States under color of law;
     (c) Have furnished the department their social security number. If the social security number cannot be furnished because it has not been issued or is not known, the applicant shall apply for a number prior to authorization of benefits, and shall provide the department with the social security number upon receipt; and
     (d) Meet income and resource standards established by the department, consistent with any standards established by the legislature in the biennial omnibus appropriations act.
     (2) To the extent of available funding and as provided in the biennial omnibus appropriations act, each person found eligible under subsection (1) of this section will be enrolled in disability lifeline medical services and, if homeless, provided a referral to the department of commerce for assistance in meeting the person's housing needs.
     (3) The following persons are not eligible for disability lifeline unemployable support services:
     (a) Persons who are unemployable due primarily to alcohol or drug addiction. These persons shall be referred to appropriate assessment, treatment, shelter, or supplemental security income referral services as authorized under chapter 74.50 RCW. Referrals shall be made at the time of application or at the time of eligibility review. This subsection shall not be construed to prohibit the department from granting disability lifeline unemployable support services to alcoholics and drug addicts who are incapacitated due to other physical or mental conditions that meet the eligibility criteria for the disability lifeline - unemployable program; and
     (b) Persons who refuse or fail to cooperate in obtaining federal aid assistance, without good cause.
     (4) For purposes of determining whether a person is incapacitated from gainful employment under (a) of this subsection:
     (a) The department shall adopt by rule medical criteria for incapacity determinations to ensure that eligibility decisions are consistent with statutory requirements and are based on clear, objective medical information; and
     (b) The process implementing the medical criteria shall involve consideration of opinions of the treating or consulting physicians or health care professionals regarding incapacity, and any eligibility decision which rejects an uncontroverted medical opinion must set forth clear and convincing reasons for doing so.
     (5) For purposes of reviewing a person's continuing eligibility, persons receiving disability lifeline unemployable support services based upon a finding of incapacity from gainful employment who remain otherwise eligible must demonstrate that there has been no material improvement in their medical or mental health condition. The department may discontinue support services when there was specific error in the prior determination that found the person eligible by reason of incapacitation.

Sec. 3   RCW 74.09.035 and 2010 1st sp.s. c 8 s 29 and 2010 c 94 s 22 are each reenacted and amended to read as follows:
     (1) To the extent of available funds and as directed in the biennial omnibus appropriations act, medical care services may be provided to ((recipients of disability lifeline benefits, persons denied disability lifeline benefits under RCW 74.04.005(5)(b) or 74.04.655 who otherwise meet the requirements of RCW 74.04.005(5)(a),)):
     (a) Persons who meet the eligibility requirements of section 2(1) (a), (b), and (c) of this act;
and
     (b) Recipients of alcohol and drug addiction services provided under chapter 74.50 RCW, in accordance with medical eligibility requirements established by the department. ((To the extent authorized in the operating budget, upon implementation of a federal medicaid 1115 waiver providing federal matching funds for medical care services, these services also may be provided to persons who have been terminated from disability lifeline benefits under RCW 74.04.005(5)(h).)) Enrollment in medical care services may not result in expenditures that exceed the amount that has been appropriated in the biennial omnibus appropriations act. If it appears that continued enrollment will result in expenditures exceeding the appropriated level for a particular fiscal year, the department shall freeze new enrollment and establish a waiting list of eligible persons who may receive benefits only when sufficient funds are available.
     (2) Determination of the amount, scope, and duration of medical care services shall be limited to coverage as defined by the department, except that adult dental, and routine foot care shall not be included unless there is a specific appropriation for these services.
     (3) The department shall enter into performance-based contracts with one or more managed health care systems for the provision of medical care services to recipients of disability lifeline benefits. The contract must provide for integrated delivery of medical and mental health services.
     (4) The department shall establish standards of assistance and resource and income exemptions, which may include deductibles and co-insurance provisions. In addition, the department may include a prohibition against the voluntary assignment of property or cash for the purpose of qualifying for assistance.
     (5) Residents of skilled nursing homes, intermediate care facilities, and intermediate care facilities for persons with intellectual disabilities, as that term is described by federal law, who are eligible for medical care services shall be provided medical services to the same extent as provided to those persons eligible under the medical assistance program.
     (6) ((Payments made by the department under this program shall be the limit of expenditures for medical care services solely from state funds.
     (7)
)) Eligibility for medical care services shall commence with the date of certification for disability lifeline benefits under section 2(1) of this act or the date of eligibility for alcohol and drug addiction services provided under chapter 74.50 RCW.

Sec. 4   RCW 74.04.005 and 2010 1st sp.s. c 8 s 4 are each amended to read as follows:
     For the purposes of this title, unless the context indicates otherwise, the following definitions shall apply:
     (1) "Public assistance" or "assistance" -- Public aid to persons in need thereof for any cause, including services, medical care, assistance grants, disbursing orders, work relief, disability lifeline benefits and federal aid assistance.
     (2) "Department" -- The department of social and health services.
     (3) "County or local office" -- The administrative office for one or more counties or designated service areas.
     (4) "Director" or "secretary" means the secretary of social and health services.
     (5) "Disability lifeline - unemployable program" means ((a program that provides aid and support in accordance with the conditions set out in this subsection.
     (a) Aid and assistance shall be provided to persons who are not eligible to receive federal aid assistance, other than basic food benefits transferred electronically and medical assistance and meet one of the following conditions:
     (i) Are pregnant and in need, based upon the current income and resource requirements of the federal temporary assistance for needy families program; or
     (ii) Are incapacitated from gainful employment by reason of bodily or mental infirmity that will likely continue for a minimum of ninety days as determined by the department. The standard for incapacity in this subsection, as evidenced by the ninety-day duration standard, is not intended to be as stringent as federal supplemental security income disability standards; and
     (A) Are citizens or aliens lawfully admitted for permanent residence or otherwise residing in the United States under color of law;
     (B) Have furnished the department their social security number. If the social security number cannot be furnished because it has not been issued or is not known, an application for a number shall be made prior to authorization of benefits, and the social security number shall be provided to the department upon receipt;
     (C) Have not refused or failed without good cause to participate in drug or alcohol treatment if an assessment by a certified chemical dependency counselor indicates a need for such treatment. Good cause must be found to exist when a person's physical or mental condition, as determined by the department, prevents the person from participating in drug or alcohol dependency treatment, when needed outpatient drug or alcohol treatment is not available to the person in the county of his or her residence or when needed inpatient treatment is not available in a location that is reasonably accessible for the person; and
     (D) Have not refused or failed without good cause to participate in vocational rehabilitation services, if an assessment conducted under RCW 74.04.655 indicates that the person might benefit from such services. Good cause must be found to exist when a person's physical or mental condition, as determined by the department, prevents the person from participating in vocational rehabilitation services, or when vocational rehabilitation services are not available to the person in the county of his or her residence.
     (b)(i) Persons who initially apply and are found eligible for disability lifeline benefits based upon incapacity from gainful employment under (a) of this subsection on or after September 2, 2010, who are homeless and have been assessed as needing chemical dependency or mental health treatment or both, must agree, as a condition of eligibility for the disability lifeline program, to accept a housing voucher in lieu of a cash grant if a voucher is available. The department shall establish the dollar value of the housing voucher. The dollar value of the housing voucher may differ from the value of the cash grant. Persons receiving a housing voucher under this subsection also shall receive a cash stipend of fifty dollars per month.
     (ii) If the department of commerce has determined under RCW 43.330.175 that sufficient housing is not available, persons described in this subsection who apply for disability lifeline benefits during the time period that housing is not available shall receive a cash grant in lieu of a cash stipend and housing voucher.
     (iii) Persons who refuse to accept a housing voucher under this subsection but otherwise meet the eligibility requirements of (a) of this subsection are eligible for medical care services benefits under RCW 74.09.035, subject to the time limits in (h) of this subsection.
     (c) The following persons are not eligible for the disability lifeline program:
     (i) Persons who are unemployable due primarily to alcohol or drug addiction. These persons shall be referred to appropriate assessment, treatment, shelter, or supplemental security income referral services as authorized under chapter 74.50 RCW. Referrals shall be made at the time of application or at the time of eligibility review. This subsection shall not be construed to prohibit the department from granting disability lifeline benefits to alcoholics and drug addicts who are incapacitated due to other physical or mental conditions that meet the eligibility criteria for the disability lifeline program;
     (ii) Persons who refuse or fail to cooperate in obtaining federal aid assistance, without good cause.
     (d) Disability lifeline benefits shall be provided only to persons who are not members of assistance units receiving federal aid assistance, except as provided in (a) of this subsection, and who will accept available services that can reasonably be expected to enable the person to work or reduce the need for assistance unless there is good cause to refuse. Failure to accept such services shall result in termination until the person agrees to cooperate in accepting such services and subject to the following maximum periods of ineligibility after reapplication:
     (i) First failure: One week;
     (ii) Second failure within six months: One month;
     (iii) Third and subsequent failure within one year: Two months.
     (e) Persons who are likely eligible for federal supplemental security income benefits shall be moved into the disability lifeline expedited component of the disability lifeline program. Persons placed in the expedited component of the program may, if otherwise eligible, receive disability lifeline benefits pending application for federal supplemental security income benefits. The monetary value of any disability lifeline benefit that is subsequently duplicated by the person's receipt of supplemental security income for the same period shall be considered a debt due the state and shall by operation of law be subject to recovery through all available legal remedies.
     (f) For purposes of determining whether a person is incapacitated from gainful employment under (a) of this subsection:
     (i) The department shall adopt by rule medical criteria for disability lifeline incapacity determinations to ensure that eligibility decisions are consistent with statutory requirements and are based on clear, objective medical information; and
     (ii) The process implementing the medical criteria shall involve consideration of opinions of the treating or consulting physicians or health care professionals regarding incapacity, and any eligibility decision which rejects uncontroverted medical opinion must set forth clear and convincing reasons for doing so.
     (g) Persons receiving disability lifeline benefits based upon a finding of incapacity from gainful employment who remain otherwise eligible shall have their benefits discontinued unless the recipient demonstrates no material improvement in their medical or mental health condition. The department may discontinue benefits when there was specific error in the prior determination that found the person eligible by reason of incapacitation.
     (h)(i) Beginning September 1, 2010, no person who is currently receiving or becomes eligible for disability lifeline program benefits shall be eligible to receive benefits under the program for more than twenty-four months in a sixty-month period. For purposes of this subsection, months of receipt of general assistance-unemployable benefits count toward the twenty-four month limit. Months during which a person received benefits under the expedited component of the disability lifeline or general assistance program or under the aged, blind, or disabled component of the disability lifeline or general assistance program shall not be included when determining whether a person has been receiving benefits for more than twenty-four months. On or before July 1, 2010, the department must review the cases of all persons who have received disability lifeline benefits or general assistance unemployable benefits for at least twenty months as of that date. On or before September 1, 2010, the department must review the cases of all remaining persons who have received disability lifeline benefits for at least twelve months as of that date. The review should determine whether the person meets the federal supplemental security income disability standard and, if the person does not meet that standard, whether the receipt of additional services could lead to employability. If a need for additional services is identified, the department shall provide case management services, such as assistance with arranging transportation or locating stable housing, that will facilitate the person's access to needed services. A person may not be determined ineligible due to exceeding the time limit unless he or she has received a case review under this subsection finding that the person does not meet the federal supplemental security income disability standard.
     (ii) The time limits established under this subsection expire June 30, 2013.
     (i) No person may be considered an eligible individual for disability lifeline benefits with respect to any month if during that month the person:
     (i) Is fleeing to avoid prosecution of, or to avoid custody or confinement for conviction of, a felony, or an attempt to commit a felony, under the laws of the state of Washington or the place from which the person flees; or
     (ii) Is violating a condition of probation, community supervision, or parole imposed under federal or state law for a felony or gross misdemeanor conviction
)) the program established in section 2 of this act.
     (6) "Disability lifeline expedited" means ((a component of the disability lifeline program under which persons receiving disability lifeline benefits have been determined, after examination by an appropriate health care provider, to be likely to be eligible for federal supplemental security income benefits based on medical and behavioral health evidence that meets the disability standards used for the federal supplemental security income program.
     (7)
)) the program established under section 1 of this act.
     (7) "Disability lifeline aged, blind, and disabled" means the program established under section 1 of this act.
     (8)
"Federal aid assistance" -- The specific categories of assistance for which provision is made in any federal law existing or hereafter passed by which payments are made from the federal government to the state in aid or in respect to payment by the state for public assistance rendered to any category of needy persons for which provision for federal funds or aid may from time to time be made, or a federally administered needs-based program.
     (((8))) (9) "Applicant" -- Any person who has made a request, or on behalf of whom a request has been made, to any county or local office for assistance.
     (((9))) (10) "Recipient" -- Any person receiving assistance and in addition those dependents whose needs are included in the recipient's assistance.
     (((10))) (11) "Standards of assistance" -- The level of income required by an applicant or recipient to maintain a level of living specified by the department.
     (((11))) (12) "Resource" -- Any asset, tangible or intangible, owned by or available to the applicant at the time of application, which can be applied toward meeting the applicant's need, either directly or by conversion into money or its equivalent. The department may by rule designate resources that an applicant may retain and not be ineligible for public assistance because of such resources. Exempt resources shall include, but are not limited to:
     (a) A home that an applicant, recipient, or their dependents is living in, including the surrounding property;
     (b) Household furnishings and personal effects;
     (c) A motor vehicle, other than a motor home, used and useful having an equity value not to exceed five thousand dollars;
     (d) A motor vehicle necessary to transport a household member with a physical disability. This exclusion is limited to one vehicle per person with a physical disability;
     (e) All other resources, including any excess of values exempted, not to exceed one thousand dollars or other limit as set by the department, to be consistent with limitations on resources and exemptions necessary for federal aid assistance. The department shall also allow recipients of temporary assistance for needy families to exempt savings accounts with combined balances of up to an additional three thousand dollars;
     (f) Applicants for or recipients of disability lifeline benefits shall have their eligibility based on resource limitations consistent with the temporary assistance for needy families program rules adopted by the department; and
     (g) If an applicant for or recipient of public assistance possesses property and belongings in excess of the ceiling value, such value shall be used in determining the need of the applicant or recipient, except that: (i) The department may exempt resources or income when the income and resources are determined necessary to the applicant's or recipient's restoration to independence, to decrease the need for public assistance, or to aid in rehabilitating the applicant or recipient or a dependent of the applicant or recipient; and (ii) the department may provide grant assistance for a period not to exceed nine months from the date the agreement is signed pursuant to this section to persons who are otherwise ineligible because of excess real property owned by such persons when they are making a good faith effort to dispose of that property: PROVIDED, That:
     (A) The applicant or recipient signs an agreement to repay the lesser of the amount of aid received or the net proceeds of such sale;
     (B) If the owner of the excess property ceases to make good faith efforts to sell the property, the entire amount of assistance may become an overpayment and a debt due the state and may be recovered pursuant to RCW 43.20B.630;
     (C) Applicants and recipients are advised of their right to a fair hearing and afforded the opportunity to challenge a decision that good faith efforts to sell have ceased, prior to assessment of an overpayment under this section; and
     (D) At the time assistance is authorized, the department files a lien without a sum certain on the specific property.
     (((12))) (13) "Income" -- (a) All appreciable gains in real or personal property (cash or kind) or other assets, which are received by or become available for use and enjoyment by an applicant or recipient during the month of application or after applying for or receiving public assistance. The department may by rule and regulation exempt income received by an applicant for or recipient of public assistance which can be used by him or her to decrease his or her need for public assistance or to aid in rehabilitating him or her or his or her dependents, but such exemption shall not, unless otherwise provided in this title, exceed the exemptions of resources granted under this chapter to an applicant for public assistance. In addition, for cash assistance the department may disregard income pursuant to RCW 74.08A.230 and 74.12.350.
     (b) If, under applicable federal requirements, the state has the option of considering property in the form of lump sum compensatory awards or related settlements received by an applicant or recipient as income or as a resource, the department shall consider such property to be a resource.
     (((13))) (14) "Need" -- The difference between the applicant's or recipient's standards of assistance for himself or herself and the dependent members of his or her family, as measured by the standards of the department, and value of all nonexempt resources and nonexempt income received by or available to the applicant or recipient and the dependent members of his or her family.
     (((14))) (15) For purposes of determining eligibility for public assistance and participation levels in the cost of medical care, the department shall exempt restitution payments made to people of Japanese and Aleut ancestry pursuant to the Civil Liberties Act of 1988 and the Aleutian and Pribilof Island Restitution Act passed by congress, P.L. 100-383, including all income and resources derived therefrom.
     (((15))) (16) In the construction of words and phrases used in this title, the singular number shall include the plural, the masculine gender shall include both the feminine and neuter genders and the present tense shall include the past and future tenses, unless the context thereof shall clearly indicate to the contrary.

NEW SECTION.  Sec. 5   Nothing in this act shall be construed to affect the hearing rights of any person who filed an appeal related to actions taken under the security lifeline act of 2010, chapter 8, Laws of 2010 1st sp. sess., prior to the effective date of this section.

Sec. 6   RCW 43.330.175 and 2010 1st sp.s. c 8 s 8 are each amended to read as follows:
     (((1))) To address the housing issues faced by the disability lifeline applicants in ((RCW 74.04.005(5)(b))) sections 1 and 2 of this act, the department of commerce and the department of social and health services shall jointly develop a housing voucher program. The departments also shall develop housing resources to be used by the applicants ((in RCW 74.04.005(5)(b))). To the greatest extent possible, the housing resources shall follow the supportive housing model. The department of commerce shall administer the housing voucher program and shall:
     (((a))) (1) Identify the current supply of private and public housing including acquisition and rental of existing housing stock;
     (((b))) (2) Develop funding strategies for the development of housing resources; and
     (((c))) (3) Design the voucher program to maximize the ability of the department of social and health services to recover federal funding.
     (((2) If the department of commerce determines that the housing supply is inadequate to meet the need for those applicants qualifying for housing vouchers under RCW 74.04.005(5)(b), those applicants shall instead receive a cash grant administered by the department of social and health services. Upon the department of commerce's determination that the housing supply is adequate to meet the needs of the applicants in RCW 74.04.005(5)(b), housing vouchers rather than cash grants shall be issued to these applicants who apply on or after the department's determination.
     (3) The department of commerce and the department of social and health services shall evaluate the impact of the use of housing vouchers under this section and report to the governor and relevant policy and fiscal committees of the legislature by November 30, 2012, on the following items:
     (a) The supply, affordability, appropriateness, and use of stable housing;
     (b) The following outcomes for persons receiving disability lifeline housing vouchers:
     (i) Participation in and completion of chemical dependency or mental health treatment;
     (ii) Contact with law enforcement, including arrest and conviction data;
     (iii) Use of emergency room services; and
     (iv) Involuntary commitment under chapter 71.05 RCW.
))

Sec. 7   RCW 43.185C.060 and 2007 c 427 s 6 are each amended to read as follows:
     The home security fund account is created in the state treasury, subject to appropriation. The state's portion of the surcharge established in RCW 36.22.179 and 36.22.1791 must be deposited in the account. A priority for expenditures from the account ((may)) shall be ((used only)) for homeless recipients of disability lifeline -unemployable. Expenditures from the account may also be used for homeless housing programs as described in this chapter.

NEW SECTION.  Sec. 8   A new section is added to chapter 74.04 RCW to read as follows:
     The disability lifeline account is created in the custody of the state treasurer. Expenditures from the account may be used only for assisting disability lifeline clients with housing issues. The account is subject to appropriation and to the allotment procedures under chapter 43.88 RCW.

Sec. 9   RCW 43.84.092 and 2010 1st sp.s. c 30 s 20, 2010 1st sp.s. c 9 s 7, 2010 c 248 s 6, 2010 c 222 s 5, 2010 c 162 s 6, and 2010 c 145 s 11 are each reenacted and amended to read as follows:
     (1) All earnings of investments of surplus balances in the state treasury shall be deposited to the treasury income account, which account is hereby established in the state treasury.
     (2) The treasury income account shall be utilized to pay or receive funds associated with federal programs as required by the federal cash management improvement act of 1990. The treasury income account is subject in all respects to chapter 43.88 RCW, but no appropriation is required for refunds or allocations of interest earnings required by the cash management improvement act. Refunds of interest to the federal treasury required under the cash management improvement act fall under RCW 43.88.180 and shall not require appropriation. The office of financial management shall determine the amounts due to or from the federal government pursuant to the cash management improvement act. The office of financial management may direct transfers of funds between accounts as deemed necessary to implement the provisions of the cash management improvement act, and this subsection. Refunds or allocations shall occur prior to the distributions of earnings set forth in subsection (4) of this section.
     (3) Except for the provisions of RCW 43.84.160, the treasury income account may be utilized for the payment of purchased banking services on behalf of treasury funds including, but not limited to, depository, safekeeping, and disbursement functions for the state treasury and affected state agencies. The treasury income account is subject in all respects to chapter 43.88 RCW, but no appropriation is required for payments to financial institutions. Payments shall occur prior to distribution of earnings set forth in subsection (4) of this section.
     (4) Monthly, the state treasurer shall distribute the earnings credited to the treasury income account. The state treasurer shall credit the general fund with all the earnings credited to the treasury income account except:
     (a) The following accounts and funds shall receive their proportionate share of earnings based upon each account's and fund's average daily balance for the period: The aeronautics account, the aircraft search and rescue account, the budget stabilization account, the capitol building construction account, the Cedar River channel construction and operation account, the Central Washington University capital projects account, the charitable, educational, penal and reformatory institutions account, the cleanup settlement account, the Columbia river basin water supply development account, the common school construction fund, the county arterial preservation account, the county criminal justice assistance account, the county sales and use tax equalization account, the deferred compensation administrative account, the deferred compensation principal account, the department of licensing services account, the department of retirement systems expense account, the developmental disabilities community trust account, the drinking water assistance account, the drinking water assistance administrative account, the drinking water assistance repayment account, the Eastern Washington University capital projects account, the education construction fund, the education legacy trust account, the election account, the energy freedom account, the energy recovery act account, the essential rail assistance account, The Evergreen State College capital projects account, the federal forest revolving account, the ferry bond retirement fund, the freight congestion relief account, the freight mobility investment account, the freight mobility multimodal account, the grade crossing protective fund, the public health services account, the health system capacity account, the high capacity transportation account, the state higher education construction account, the higher education construction account, the highway bond retirement fund, the highway infrastructure account, the highway safety account, the high occupancy toll lanes operations account, the hospital safety net assessment fund, the industrial insurance premium refund account, the judges' retirement account, the judicial retirement administrative account, the judicial retirement principal account, the disability lifeline account, the local leasehold excise tax account, the local real estate excise tax account, the local sales and use tax account, the marine resources stewardship trust account, the medical aid account, the mobile home park relocation fund, the motor vehicle fund, the motorcycle safety education account, the multiagency permitting team account, the multimodal transportation account, the municipal criminal justice assistance account, the municipal sales and use tax equalization account, the natural resources deposit account, the oyster reserve land account, the pension funding stabilization account, the perpetual surveillance and maintenance account, the public employees' retirement system plan 1 account, the public employees' retirement system combined plan 2 and plan 3 account, the public facilities construction loan revolving account beginning July 1, 2004, the public health supplemental account, the public transportation systems account, the public works assistance account, the Puget Sound capital construction account, the Puget Sound ferry operations account, the Puyallup tribal settlement account, the real estate appraiser commission account, the recreational vehicle account, the regional mobility grant program account, the resource management cost account, the rural arterial trust account, the rural Washington loan fund, the site closure account, the small city pavement and sidewalk account, the special category C account, the special wildlife account, the state employees' insurance account, the state employees' insurance reserve account, the state investment board expense account, the state investment board commingled trust fund accounts, the state patrol highway account, the state route number 520 civil penalties account, the state route number 520 corridor account, the supplemental pension account, the Tacoma Narrows toll bridge account, the teachers' retirement system plan 1 account, the teachers' retirement system combined plan 2 and plan 3 account, the tobacco prevention and control account, the tobacco settlement account, the transportation 2003 account (nickel account), the transportation equipment fund, the transportation fund, the transportation improvement account, the transportation improvement board bond retirement account, the transportation infrastructure account, the transportation partnership account, the traumatic brain injury account, the tuition recovery trust fund, the University of Washington bond retirement fund, the University of Washington building account, the urban arterial trust account, the volunteer firefighters' and reserve officers' relief and pension principal fund, the volunteer firefighters' and reserve officers' administrative fund, the Washington judicial retirement system account, the Washington law enforcement officers' and firefighters' system plan 1 retirement account, the Washington law enforcement officers' and firefighters' system plan 2 retirement account, the Washington public safety employees' plan 2 retirement account, the Washington school employees' retirement system combined plan 2 and 3 account, the Washington state health insurance pool account, the Washington state patrol retirement account, the Washington State University building account, the Washington State University bond retirement fund, the water pollution control revolving fund, and the Western Washington University capital projects account. Earnings derived from investing balances of the agricultural permanent fund, the normal school permanent fund, the permanent common school fund, the scientific permanent fund, and the state university permanent fund shall be allocated to their respective beneficiary accounts.
     (b) Any state agency that has independent authority over accounts or funds not statutorily required to be held in the state treasury that deposits funds into a fund or account in the state treasury pursuant to an agreement with the office of the state treasurer shall receive its proportionate share of earnings based upon each account's or fund's average daily balance for the period.
     (5) In conformance with Article II, section 37 of the state Constitution, no treasury accounts or funds shall be allocated earnings without the specific affirmative directive of this section.

NEW SECTION.  Sec. 10   This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 1, 2011.

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