State Veterans Home Adult Day Health Care Improvement Act of 2017 (Sec. 2) This bill directs the Department of Veterans Affairs (VA) to enter into an agreement with each state home to pay for medical supervision model adult day health care for a veteran for whom the home is not receiving VA nursing home care payments. Such payment shall constitute payment in full for such care. The veteran must need such care either specifically for a service-connected disability, or, if not specifically for one, the veteran must have a service-connected disability rated 70% or more. The payment rate under each VA-state home agreement for a veteran shall be established through regulations prescribed by the VA to adequately reimburse the home for the care, including necessary transportation expenses. Such rate shall not take effect until 30 days after the date on which the regulations are published in the Federal Register. Until such time, the initial rate shall equal 65% of the payment that the VA would otherwise pay to the state home if the veteran were receiving nursing home care. "Medical supervision model adult day health care" means adult day health care that includes the coordination of physician services, dental services, nursing services, the administration of drugs, and such other requirements as the VA may determine.