Requires the children's administration within the department of social and health services to collaborate with community partners in one demonstration region to jointly develop a plan for implementation of a core set of performance-based contracts to provide an array of evidence-based and promising prevention and early intervention services to children and families who are at risk for an out-of-home placement or the filing of a dependency petition.   Official Text and Analysis.

To expand the focus of the reform goals and performance contracting to include intervention services and programs to achieve more timely permanency for children who do enter foster care, including reducing the length of stay in care and attending to children who are waiting for adoption; and increases the number of demonstration regions from one to two.

To require that the details of a reinvestment strategy in the demonstration regions be presented to the Legislature by November 30, 2009. References to the January 1, 2010, implementation of the reinvestment strategy are removed.

To strike all all provisions of the original bill. The amended bill directs the implementation of performance-based contracting in two demonstration sites beginning January 1, 2011, rather than mandating the contracting out of all child welfare services statewide by 2014. A Performance Contracting Oversight Committee is established to provide oversight, guidance, structure, and to develop the criteria for the contracts. The amended bill also requires development of a proposal for the reinvestment of savings from reduced foster care caseloads.

To add to the intent section that the changes from performance-based contract should also result in reducing racial disproportionality in the child welfare system. Adds to the membership of the Child Welfare Transformation Advisory Committee a member of the Washington Racial Disproportionality Advisory Committee. Requires Children's Administration to add language to performance-based contracts that supervising agencies will provide culturally competent services. Adds the extent to which racial disproportionalities were decreased to the outcomes that WSIPP must review.

Offers a striking amendment to improve the safety and welfare of children.

Directs the Department of Social and Health Services (DSHS) to convert all existing contracts for child welfare services into performance-based contracts by January 1, 2011. Establishes a Child Welfare Transformation Design Committee to select two demonstration sites and develop performance measures and criteria for contracting out of child welfare case management services. Directs the Committee to to report to the Legislative Children's Oversight Committee and the Governor quarterly from June 2009 through June 2012, and semi-annually from June 2012 through January 2015. Requires the Committee to develop a transition plan to achieve full implementation of contracting for all child welfare services in the demonstration sites by June 30, 2012. Makes several requirements of other agencies such as the Attorney General's office, the Washington State Institute for Public Policy, among others. Vetoed sections 1,14 & 19 due to overly broad generalizations that would result in unintended entitlements.