This bill amends existing law (RCW 72.72.030 and 72.72.040) and creates a new "institutional impact account" in the state treasury. It establishes a reimbursement program under which the Secretary of Children, Youth, and Families and the Secretary of Corrections must reimburse political subdivisions, to the extent funds are available in that account, for documented criminal-justice costs directly caused by crimes committed by offenders residing in institutions under their agencies' jurisdiction. Reimbursements are limited to law enforcement, prosecutorial, judicial, and jail facilities costs that are documented as strictly related to the offender's criminal activity. The bill makes procedural changes requiring both secretaries to promulgate rules under chapter 34.05 RCW for their reimbursement processes and requires the Office of Financial Management to promulgate rules and set county-specific reimbursement rates. OFM rates must be based on the last closed state fiscal year: average hourly cost in each county for law enforcement, prosecutorial, and judicial rates, and average daily bed rate in each county for jail facilities. The bill also requires the secretaries to repromulgate rules to conform with the act and states that reimbursement will not be made where another provision of state law provides otherwise. The text provided does not define key terms such as "institution" or "political subdivisions," does not describe the institutional impact account's funding sources or administration, and does not include procedures, timelines, documentation standards, dispute resolution, or deadlines for rulemaking. These omissions make certain operational details and eligibility criteria unclear from the extracted text.

If enacted, the state will create an "institutional impact account" that local governments can tap for documented law enforcement, prosecutorial, judicial, and jail costs caused by crimes committed by people living in certain state institutions, with reimbursements paid by the secretaries of Children, Youth and Families and Corrections only when money is available and not otherwise covered by other law. The Office of Financial Management will set county-by-county reimbursement rates using the most recently closed fiscal year, so counties with institutions will have specific per-hour and per-bed rates to expect, but payments are not guaranteed and eligible costs must be strictly documented. The groups most affected are county governments, local police, prosecutors, courts, and jails, which may get partial relief for some crime-related costs but will need to track and document expenses and may face new administrative work to apply; the two state agencies and OFM will have new rulemaking and rate-setting duties. Important details are missing here—what counts as an "institution," which local entities qualify as "political subdivisions," how the account is funded or capped, and the timing and process for submitting claims—so local officials cannot rely on steady or complete reimbursement until those specifics are provided.