The bill adds a new section to chapter 74.39A RCW that requires the department to update the supported living cost report template to comply with federal law and to facilitate addressing the direct support professional (DSP) workforce shortage. The updated template must collect detailed staffing and compensation data, including full-time equivalent and headcount by staff type, annual weighted average base hourly wages by staff type, detailed employer-paid benefit amounts (medical, dental, vision, life insurance, retirement contributions, and paid time off by type), and disaggregated revenue line items including revenue by client tier and non‑Medicaid revenue. The bill creates a supported living work group with specified membership and duties to develop Medicaid rate recommendations intended to promote equitable compensation for DSPs and to consider requirements on how providers must use the instructional support services rate to improve compensation. The work group may recommend penalties for providers who fail to demonstrate compliance. The department may consult with the work group, contract with a private entity for data analysis, provide administrative and logistical support, and must issue a final report to the appropriate legislative committees by December 1, 2026. The department must complete the template update by July 1, 2026, and the new section expires September 1, 2028. The bill defines “direct support professional” and “supported living provider” for the purposes of the new section. This is a procedural and reporting law change that creates a new statutory section, establishes a work group and reporting requirements, and directs data collection and rate recommendation development; it does not itself set specific rate amounts or detailed enforcement mechanisms. Important context is missing from the provided text: the specific department named in the bill is not identified, the new section number is not given, key terms such as “instruction and support services staff,” “specialist staff,” and “client tier” are not defined here, the method for selecting certain referenced providers is unspecified, the union named is not identified, and details about how any recommended penalties would be implemented or enforced are not included.

If enacted, the bill will force a major upgrade to the supported living cost report: providers will need to supply detailed counts (FTE and headcount) by staff type, weighted average base hourly wages, a full breakdown of employer-paid benefits and paid time off, and revenue disaggregated by client tier and non‑Medicaid sources into a new template by July 1, 2026. That information will feed a newly created work group (with provider, worker, union, and advocacy representation) and possibly outside data analysis, and the work group must produce Medicaid rate and compensation-use recommendations by December 1, 2026 that could include penalties for providers who fail to follow the recommendations. The parties most affected are supported living providers, who will face added reporting responsibilities and likely higher administrative costs and scrutiny of how rate revenues are used; direct support professionals, who are the focus of proposed wage and benefit investment recommendations and may see changes if the legislature acts on the work group’s report; and the unnamed state department, which must update the template, support the work group, and may contract for analysis. Key details are unclear from the text provided: the specific department responsible, precise definitions of staff types and client tiers, how the top-five providers are selected, and how any penalties would be implemented or enforced.