Chapter 0328 - 471R - S Ver of SB1515

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 11-292, Arizona Revised Statutes, is amended to read:

START_STATUTE11-292. Medical care; definition

A. The board of supervisors, subject to the applicable provisions of title 42, chapter 17, articles 2 and 3, shall include in its annual budget an amount equal to fifty per cent of the amount budgeted by the county board of supervisors or the amount expended, whichever is less, for the hospitalization and medical care of the indigent sick pursuant to this article for fiscal year 1980‑1981, except for Yuma and La Paz counties. The contribution amounts of those counties shall be equal to the amount Yuma county would have made pursuant to this subsection if a division had not occurred apportioned between the counties. The office of the auditor general shall determine the amount Yuma county would otherwise have included if a division had not occurred and shall then determine the contribution amounts of Yuma and La Paz counties based on the proportionate share of the estimated population in these counties as of July 1, 1982.

B. For fiscal year 1994‑1995, and for each fiscal year thereafter, the state treasurer shall withhold an amount sufficient to meet the county portion of the nonfederal costs of providing long‑term care system services, pursuant to title 36, chapter 29, article 2, excluding services to the developmentally disabled, from monies otherwise payable to the county under section 42‑5029, subsection D, paragraph 2. This amount and the state portion of the nonfederal costs shall be specified in the annual appropriation for the maintenance and operation of the Arizona health care cost containment system. For fiscal years 1994‑1995, 1995‑1996 and 1996‑1997, monies shall be withheld from each county based on the following percentages derived from a state auditor general's certified audit of fiscal year 1987‑1988 county long‑term care and home health care expenditures, except that amounts withheld shall be adjusted to reflect amounts paid by counties pursuant to section 36‑2952:

1. Apache: 0.22%

2. Cochise: 2.49%

3. Coconino: 0.66%

4. Gila: 2.56%

5. Graham: 0.64%

6. Greenlee: 0.34%

7. La Paz: 0.34%

8. Maricopa: 56.55%

9. Mohave: 2.73%

10. Navajo: 0.91%

11. Pima: 20.55%

12. Pinal: 5.09%

13. Santa Cruz: 1.05%

14. Yavapai: 3.12%

15. Yuma: 2.75%

C. In each fiscal year, of the total amount that is specified in the annual appropriation as the nonfederal portion of the cost of providing long‑term care services, excluding services to the developmentally disabled, and that represents an increase from the amount that was specified in the annual appropriation for the prior fiscal year, the state shall pay fifty per cent of the increase. The remaining nonfederal portion of the costs shall be apportioned among the counties according to the proportion that each county's net nonfederal expenditures for long‑term care services, excluding services to the developmentally disabled, bears to the total nonfederal expenditure for all counties two fiscal years earlier, with the following adjustments in the following order:

1. If the resulting net county contribution when expressed as an imputed property tax rate per one hundred dollars of net assessed value exceeds ninety cents, the county's contribution shall be reduced so that the imputed property tax rate equals ninety cents and the difference shall be paid by the state.

2. Any county with a native American population that represents at least twenty per cent of the county's total population according to the most recent United States decennial census shall contribute an amount equal to the prior fiscal year's contribution plus fifty per cent of the difference between the prior year's contribution were it calculated using the percentage in subsection B of this section and the current year's contribution as if its share of the total nonfederal portion of the long‑term care costs had been calculated using the percentage prescribed in subsection B of this section and the state shall pay any difference from the amount otherwise required by this subsection.

3. If, after making the adjustments in this subsection, a county would contribute more than if its contribution were calculated using the percentage prescribed in subsection B of this section multiplied by the total nonfederal costs of long‑term care services, excluding services to the developmentally disabled, the county's contribution shall be reduced to the sum of its prior year's contribution plus fifty per cent of the difference between the prior year's contribution were it calculated using the percentage in subsection B of this section and the current year's contribution as if its share of the total nonfederal portion of long‑term care costs had been calculated using the percentage prescribed in subsection B of this section and the state shall pay any difference from the amount otherwise required by this subsection.

D. The director of the Arizona health care cost containment system administration shall notify each county of the amount determined pursuant to subsection A of this section to be included in its annual budget no later than May 1 of each year.

E. If a county does not provide funding as specified in subsection A of this section, the state treasurer shall subtract the amount owed to the Arizona health care cost containment system fund by the county from any payments required to be made by the state treasurer to that county pursuant to section 42‑5029, subsection D, paragraph 2, plus interest on that amount pursuant to section 44‑1201 retroactive to the first day the funding was due. If the monies the state treasurer withholds are insufficient to meet that county's funding requirement as specified in subsection A of this section, the state treasurer shall withhold from any other monies payable to that county from whatever state funding source is available an amount necessary to fulfill that county's requirement. The state treasurer shall not withhold distributions from the highway user revenue fund pursuant to title 28, chapter 18, article 2.

F. Each month payment of an amount equal to one‑twelfth of the total amount determined pursuant to subsection A of this section shall be made to the state treasurer. Beginning October 1, 1989, payment of this amount shall be made to the state treasurer on or before the fifth day of each month. Upon request from the director of the Arizona health care cost containment system administration, the state treasurer shall require that up to three months' payments be made in advance, if necessary.

G. The state treasurer shall deposit the amounts paid pursuant to subsection F of this section and amounts withheld pursuant to subsection E of this section in the Arizona health care cost containment system fund established pursuant to section 36‑2913.

H. If payments made pursuant to subsection F of this section exceed the amount required to meet the costs incurred by the Arizona health care cost containment system for the hospitalization and medical care of a person who is defined as an eligible person pursuant to section 36‑2901, paragraph 6, subdivision (a), the director of the Arizona health care cost containment system administration may instruct the state treasurer either to reduce remaining payments to be paid pursuant to this section by a specified amount or to provide to the counties specified amounts from the Arizona health care cost containment system fund.

I. The amount of the county contribution to the Arizona health care cost containment system fund established in section 36‑2913 shall not exceed thirty‑three per cent of the amount that the system administration expended in the county for fiscal year 1983‑1984. For the purposes of this subsection, system administration expenditures in a county for fiscal year 1983‑1984 are the total capitation and fee for service amounts paid by the system administration to providers in a county before February 1, 1986 for services rendered during fiscal year 1983‑1984 to persons eligible for the system.

J. The state treasurer shall deposit amounts withheld pursuant to subsection E of this section in the Arizona health care cost containment system fund established by section 36‑2913.

K. The state treasurer shall deposit the monies withheld from the counties and contributed by the state pursuant to subsection B of this section in the long‑term care system fund established by section 36‑2913, in twelve equal monthly installments. The monthly installments shall be deposited in the fund by the state treasurer by the fourth working day of each month.

L. By July 1 or within sixty days after enactment of the annual appropriation for the maintenance and operation of the Arizona health care cost containment system, whichever is later, and after consulting with the joint legislative budget committee and the governor's office of strategic planning and budgeting, the state treasurer shall notify each county of the amount to be withheld pursuant to subsection B of this section.

M. If the monies deposited in the long‑term care system fund pursuant to subsection K of this section are insufficient to meet the funding requirement as specified in the annual appropriation for the maintenance and operation of the Arizona health care cost containment system pursuant to subsection B of this section, the state treasurer shall withhold from any other monies payable to that county from any available state funding source, other than the highway user revenue fund, the amount required to fulfill fifty per cent of the funding requirement and shall deposit the monies in the long‑term care system fund. The state shall pay the remaining fifty per cent of the funding requirement.

N. If any monies in the funds for the purpose of title 36, chapter 29, article 2 remain unexpended at the end of the fiscal year, the director of the Arizona health care cost containment system administration shall specify to the state treasurer the amount to be withdrawn from the long‑term care system fund. Of the amount specified, the state treasurer shall distribute fifty per cent to the counties pursuant to subsection B or C of this section. The remaining fifty per cent shall be distributed to the state.

O. The board of supervisors of a county that is a program contractor pursuant to section 36‑2940 shall include in its annual budget, subject to title 42, chapter 17, articles 2 and 3, monies received from the Arizona health care cost containment system fund and long‑term care system fund for the purposes of title 36, chapter 29, article 2.

P. Notwithstanding any law to the contrary, beginning in fiscal year 2002‑2003 2005-2006 and in each fiscal year thereafter, the state treasurer shall withhold a total of five million two million three hundred ninety-five thousand four hundred dollars for the county contribution for the administrative costs of implementing sections 36‑2901.01 and 36‑2901.04 beginning with the second monthly distribution of transaction privilege tax revenues otherwise distributable after subtracting any amounts withheld for the county long‑term care contribution. Beginning in fiscal year 2002‑2003 2006-2007, the state treasurer shall adjust the amount withheld according to the annual changes in the GDP price deflator and as calculated by the joint legislative budget committee staff. Beginning in fiscal year 2003‑2004 2006‑2007, the joint legislative budget committee shall calculate an additional adjustment of the allocation required by this subsection based on changes in the population as reported by the department of economic security. For the purposes of this subsection "GDP price deflator" has the same meaning prescribed in section 41‑563. Each county's annual contribution is as follows:

1. Apache, 1.342 3.296 per cent.

2. Cochise, 2.503 6.148 per cent.

3. Coconino, 2.469 6.065 per cent.

4. Gila, 1.014 2.491 per cent.

5. Graham, 0.721 1.7110 per cent.

6. Greenlee, 0.185 0.455 per cent.

7. La Paz, 0.384 0.9430 per cent.

8. Maricopa, 59.289 per cent.

9. 8. Mohave, 2.882 7.079 per cent.

10. 9. Navajo, 1.889 4.640 per cent.

11. 10. Pima, 17.167 42.168 per cent.

12. 11. Pinal, 3.359 8.251 per cent.

13. 12. Santa Cruz, 0.794 1.950 per cent.

14. 13. Yavapai, 3.173 7.794 per cent.

15. 14. Yuma, 2.829 6.949 per cent.

Q. The state treasurer shall deposit the amounts paid pursuant to subsection P of this section in the budget neutrality compliance fund established by section 36‑2928.

R. For the purposes of this section, "net assessed value" includes the values used to determine voluntary contributions collected pursuant to title 9, chapter 4, article 3 and title 48, chapter 1, article 8.END_STATUTE

Sec. 2. Title 36, chapter 29, article 1, Arizona Revised Statutes, is amended by adding section 36-2905.02, to read:

START_STATUTE36-2905.02. Inpatient reimbursement; rural hospitals; definition

A. If monies are appropriated for rural hospitals, the Arizona health care cost containment system administration shall request the centers for medicare and medicaid services to approve federal matching medicaid funding for the purposes specified in this section.

B. The administration shall distribute the available monies to increase inpatient reimbursement for qualifying rural hospitals. At no time shall the reimbursement exceed the cost of providing care. The administration may make supplemental payments to qualifying rural hospitals based on utilization or adjust tier rates, established pursuant to section 36-2903.01, subsection H, for qualifying rural hospitals. No adjustments to inpatient reimbursement under section 36-2903.01, subsection H to hospitals other than rural hospitals may be made as a result of this section.

C. For the purposes of this section, "rural hospital" means either:

1. A health care institution that is licensed as an acute care hospital, that has one hundred or fewer beds and that is located in a county with a population of less than five hundred thousand persons.

2. A health care institution that is licensed as a critical access hospital. END_STATUTE

Sec. 3. Title 41, chapter 7, article 12, Arizona Revised Statutes, is amended by adding section 41-1291.01, to read:

START_STATUTE41-1291.01. Joint legislative committee on adoption promotion

A. The joint legislative committee on adoption promotion is established consisting of the following members:

1. Two members of the senate who are from different political parties and who are appointed by the president of the senate. These members shall serve as nonvoting advisory members. the president of the senate shall select one of these members to serve as cochairperson of the committee.

2. Two members of the house of representatives who are from different political parties and who are appointed by the speaker of the house of representatives. These members shall serve as nonvoting advisory members. the speaker of the house of representatives shall select one of these members to serve as cochairperson of the committee.

3. The director of the department of economic security or the director's designee.

4. One member of a marketing firm who is appointed by the speaker of the house of representatives.

5. One foster parent who is in the process, or has already completed, the process of adopting a foster child through the department of economic security and who is appointed by the president of the senate.

6. A representative of a faith based organization that has a mission statement that includes placing foster children into adoptive homes who is appointed by the president of the senate.

7. An attorney who is licensed to practice law in this state, who specializes in adoption law and who is appointed by the speaker of the house of representatives.

8. A member of the foster care review board established by section 8‑515.04 who is appointed by the president of the senate.

9. A court appointed special advocate pursuant to section 8‑523 who is appointed by the speaker of the house of representatives.

10. Two experts in the field of adoption who also specialize in the placement of foster children into adoptive homes, one of whom is appointed by the president of the senate and one of whom is appointed by the speaker of the house of representatives.

B. The joint legislative committee on adoption promotion shall:

1. Review ways this state currently uses monies to promote the adoption of foster children who have a case plan of adoption.

2. Examine the practices and outreach efforts this state has undergone in the past and make recommendations to improve their effectiveness.

3. Review adoption processes in order to identify obstacles.

4. Provide recommendations to the department of economic security and to the joint legislative budget committee on ways this state may promote the adoption of foster children who have a case plan of adoption.

5. Make recommendations to the department of economic security and to the joint legislative budget committee on ways to spend the annual federal temporary assistance to needy families monies that are designated for outreach for prospective adoption of foster children.

C. The department of economic security shall provide staff support for this committee. END_STATUTE

Sec. 4. Section 41-2031, Arizona Revised Statutes, is amended to read:

START_STATUTE41-2031. Marriage and communication skills commission; membership; duties; staff; definition

A. The marriage and communication skills commission is established consisting of the following members who serve at the pleasure of the appointing person:

1. Two members of the senate who are from different political parties and who are appointed by the president of the senate. These members serve as advisory members. The president of the senate shall select one member to cochair the commission.

2. Two members of the house of representatives who are from different political parties and who are appointed by the speaker of the house of representatives. These members serve as advisory members. The speaker of the house of representatives shall select one member to cochair the commission.

3. The governor or the governor's designee.

4. The director of the department of economic security or the director's designee.

5. One member of the news media who is appointed by the speaker of the house of representatives.

6. An expert in the field of marriage and family education and counseling who is licensed to practice medicine or psychology in this state, who specializes in marriage counseling and who is appointed by the president of the senate.

7. An attorney who is licensed to practice law in this state, who specializes in family law related education and who is appointed by the governor.

B. The marriage and communication skills commission shall:

1. Review plans submitted to the department by the applicant community‑based organizations for participation in the marriage and communication skills program and shall recommend community‑based organizations that are eligible to receive funding pursuant to section 41‑2032.

2. Review renewal applications from participating community‑based organizations and make recommendations to the department.

3. Develop, update and distribute free of charge to marriage license applicants a handbook that includes information about the importance of communication, shared parental responsibility for children, child support responsibilities, alimony, domestic violence, child abuse and neglect, court process for divorce, community resources for parents who are divorced or separated, community resources for children of parents who are divorced or separated and marriage education courses that are available in each county.

4. Evaluate the program and beginning on November 1, 2001 report annually by November to the governor, the president of the senate, the speaker of the house of representatives and the joint legislative audit committee. The commission shall provide a copy of the report to the secretary of state and the department of Arizona state library, archives and public records.

5. Recommend qualifying criteria for married or cohabitating parents persons who apply to the department of economic security for a voucher to attend a marriage skills training course.

C. The department of economic security shall provide staff and support services to the commission.

D. For purposes of this section, "advisory member" means a member who advises the commission but who is not eligible to vote and is not a member for the purposes of determining a quorum. END_STATUTE

Sec. 5. Section 41-2032, Arizona Revised Statutes, is amended to read:

START_STATUTE41-2032. Community‑based marriage and communication skills program; fund; program termination

A. A community‑based organization may apply to participate or may complete an application to continue in the marriage and communication program as provided in this section for any fiscal year by submitting by April 15 a program proposal or an application to continue the program to the department. The department shall approve applicants after reviewing recommendations made by the marriage and communication skills commission established by section 41‑2031. New applicants are restricted to unencumbered monies that have been appropriated in previous fiscal years or monies appropriated to expand the program.

B. A program proposal shall contain:

1. A plan for implementing a marriage and communication skills program or a plan that demonstrates the existence of a marriage and communication skills program.

2. A plan to adopt a marriage and communication skills curriculum that emphasizes relationship skills, including communication and negotiation skills that are necessary to resolve common relationship problems.

3. A description of any model curricula that the community‑based organization plans to use to provide marriage and communication skills. Any model curricula used by a community‑based organization pursuant to this section shall not discuss or encourage unlawful behavior.

4. A plan to incorporate discussions of family law and domestic violence issues into the curriculum and marriage license options, including covenant marriage options.

C. A community‑based marriage and communication skills program fund is established consisting of legislative appropriations. The department of economic security shall administer the fund and not more than five per cent shall be used for administrative costs. The department of economic security shall distribute monies to the community‑based organizations whose plans have been recommended by the marriage and parenting communication skills commission. Monies in the fund are exempt from the provisions of section 35‑190 relating to the lapsing of appropriations and are continuously appropriated.

D. Community‑based organizations shall spend monies received under the program to implement approved plans.

E. The program established by this article ends on July 1, 2005 September 1, 2009 pursuant to section 41‑3102. END_STATUTE

Sec. 6. Title 41, chapter 14, article 6, Arizona Revised Statutes, is amended by adding section 41-2033, to read:

START_STATUTE41-2033. Community based relationship skills high school pilot program; program termination

A. School districts may apply to participate or may complete an application to continue in the community based relationship skills high school pilot program as provided in this section for any fiscal year by submitting by April 15 a program proposal or an application to continue the program to the marriage and communication skills commission established by section 41-2031. The marriage and communication skills commission shall submit the approved applications to the department. The department shall approve applications submitted by the marriage and communication skills commission established by section 41-2031. New applicants are restricted to unencumbered monies that have been appropriated in previous fiscal years or monies appropriated to expand the program.

B. A program proposal shall contain:

1. A plan for implementing a relationship skills program or a plan that demonstrates the existence of a relationship skills program.

2. A plan to adopt a relationship skills curriculum that emphasizes relationship skills, including communication and negotiation skills, domestic violence prevention and marriage preparation.

3. A description of any model curricula that the school district plans to provide relationship skills. A curriculum shall not provide information for or promote marriages that violate section 25-101.

D. School districts shall spend monies received under this program to implement the approved plans.

E. the program established by this section ends on September 1, 2009, pursuant to section 41-3102. END_STATUTE

Sec. 7. Section 42-5252, Arizona Revised Statutes, is amended to read:

START_STATUTE42-5252. Levy of tax

A. A tax is levied on every provider in an amount as follows:

1. For the fiscal years beginning from and after June 30, 2001 and ending before July 1, 2006, thirty‑seven cents per month for each activated wire and wireless service account for the purpose of financing emergency telecommunication services.

2. For fiscal year 2006‑2007, twenty‑eight cents per month for each activated wire and wireless service account for the purpose of financing emergency telecommunication services.

3. For the fiscal years beginning from and after June 30, 2007, twenty cents per month for each activated wire and wireless service account for the purpose of financing emergency telecommunication services.

4. 0.68 per cent of the provider's gross proceeds of sales or gross income derived from the business of providing exchange access services for the purpose of financing telecommunication devices for the deaf and the severely hearing and speech impaired under the program established pursuant to section 36‑1947.

5. 0.18 0.25 per cent of the provider's gross proceeds of sales or gross income derived from the business of providing exchange access services for the purpose of financing the Arizona poison control system. These monies shall be deposited in the poison control fund administered by the department of health services and are subject to legislative appropriation.

6. 0.23 0.16 per cent of the provider's gross proceeds of sales or gross income derived from the business of providing exchange access services for the purpose of financing the operating expenses of the Arizona state schools for the deaf and the blind pursuant to section 15‑1306.

7. 0.01 per cent of the provider's gross proceeds of sales or gross income derived from the business of providing exchange access services for the purpose of financing the teratogen information program at the university of Arizona. These monies shall be deposited in the teratogen information program fund administered by the university of Arizona health sciences center.

B. Each provider shall state on the invoice to customers a separate line item stating the amount of tax levied pursuant to subsection A of this section.

C. Unless the context otherwise requires, article 1 of this chapter governs the administration of the tax imposed under this section. END_STATUTE

Sec. 8. Section 46-207, Arizona Revised Statutes, is amended to read:

START_STATUTE46-207. Grant plus income; uniform assistance plan; amount of assistance

A. In no event shall assistance paid any recipient under this title be an amount which, when added to income from all other sources, causes the total of income and grant to exceed the need of the recipient under uniform assistance plans for each program as determined by the state department, except that the provisions of this subsection shall not apply to the optional state supplemental payments program authorized in section 46-252 or temporary assistance for needy families prescribed in section 46-292.

B. If the total monies available for payment of assistance grants are not sufficient to meet the maximum amount for which each applicant or recipient is eligible by law, the department shall notify the joint legislative budget committee of the insufficiency of monies and shall make recommendations on how to overcome the insufficiency. The department shall not recommend reductions of an equal amount from every grant in each category of assistance, but shall take into consideration the needs of the applicants or recipients, and shall recommend the reductions necessary by specifying the percentage of budgeted needs which may be met within the maximums established in accordance with subsection A of this section. The department shall make the adjustments determined by the joint legislative budget committee.

C. In determining the amount of assistance which a recipient or applicant may receive under this title, the department shall include all income and resources from every source of the person claiming such aid, except that which is required to be disregarded as defined in department rule or by other provisions of this title, and shall consider and take into account earning capacity, living conditions and all facts and circumstances surrounding such person.

D. For assistance granted pursuant to section 46-292, the department shall include a shelter cost factor. For purposes of determining assistance payments with this shelter cost factor, the department shall reduce the federal poverty level used in its calculation of payments by thirty‑seven per cent if the person is not paying, or is not obligated to pay, shelter costs on his place of residence.END_STATUTE

Sec. 9. Repeal

Section 46-252, Arizona Revised Statutes, is repealed.

Sec. 10. Section 46-731, Arizona Revised Statutes, is amended to read:

START_STATUTE46-731. Utility assistance fund; purposes; administration; nonreversion; reimbursement for administrative costs; definitions

A. A utility assistance fund is established to provide eligible recipients with assistance in making utility deposits and owner repairs or replacement of utility related appliances or systems. The department shall administer the fund. Monies in the utility assistance fund shall not exceed one million dollars. Any amount in excess of one million dollars shall be deposited in the state general fund. Eligible recipients are individuals who are in crisis situations requiring utility repair, deposit assistance or replacement of utility appliances or systems, who have a household income at or below one hundred twenty-five per cent of the poverty level or who are sixty years of age or older or handicapped and who have a household income at or below one hundred fifty per cent of the poverty level. The need for replacement of utility related appliances or systems shall be related to a documented crisis situation. Replacement of utility related appliances is limited to situations in which repair costs exceed replacement cost or an appliance is found to be inoperable with repairs. For the purposes of this subsection, the poverty level is as determined by the United States office of management and budget and reported in the federal register.

B. A deposit, including any interest on the deposit, that is made by a subscriber with a utility to secure payment or any amount that is paid in advance for utility services to be furnished, less any lawful deductions or any amount held by a utility that the utility has been ordered to refund by a court or administrative agency, and that remains unclaimed by the subscriber for more than two years after the termination of the services for which the deposit or advance payment was made, or for more than two years after the refund becomes payable and distribution occurs pursuant to the final order of the court or administrative agency that has jurisdiction to establish the terms and conditions of the refund, is presumed abandoned and shall be transmitted annually to the department of revenue for deposit in the utility assistance fund. Any utility that delivers these refund payments to the department of revenue in good faith is relieved of all liability to the extent of any refund payment delivered for any claim then existing or that thereafter may arise or be made in respect to the property. This subsection does not apply to any refund subject to section 44‑302, subsection A, paragraph 11 or to any refund that the court or agency order provides will be held by a person other than the utility.

C. The director shall provide the use of the utility assistance fund monies to designated community action or other agencies currently providing energy assistance that in the judgment of the director offer assistance services to individuals who are eligible under subsection A of this section to receive assistance under this article. The utility assistance fund monies shall be coordinated with all other state and federal energy assistance programs. An amount of not more than ten per cent of the fund monies may be designated for sewer and water system repairs. The director shall not disburse an amount of more than thirty‑five per cent of all monies to the agencies during any quarter.

D. The agencies selected by the director shall disburse monies for payment of utility deposits by checks payable to the utility. These payments may be made in a batch process or transmitted electronically. The agencies selected by the director shall disburse monies for the payment of owner utility repairs and replacements by checks payable to the repairer or replacement entity on behalf of the client on satisfactory completion of the work. The client shall indicate in writing that the repairs and replacements have been completed before payment is made.

E. The department of revenue shall annually report to the department of economic security the amounts the utility assistance fund receives from each utility that requires a fee to be deposited in order to receive its services. The department of economic security shall report these amounts to the agencies.

F. Refunds by the utilities for deposits made by the utility assistance fund shall be transmitted to the department of revenue for deposit in the fund. These refunds are subject to the established tariffs, rules and procedures of the utilities.

G. The utilities, the department and the designated community action or other agencies currently providing energy assistance shall inform the public of the utility assistance fund.

H. Except as provided in subsection A of this section, Monies in the utility assistance fund do not revert to the state general fund.

I. An amount of not more than two per cent of the utility assistance fund monies, not to exceed twenty thousand dollars in any fiscal year, may be used by the department and an amount of not more than eight per cent of the fund monies, not to exceed eighty thousand dollars in any fiscal year, may be used by the agencies to reimburse them for their administrative costs in providing services under this article.

J. Monies that are deposited in the utility assistance fund pursuant to subsection B of this section shall be used only for the purposes of this section and shall not be transferred to another fund for any other purpose.

J. K. For the purposes of this section:

1. "Crisis situations" includes a substantial loss or reduction of income, unexpected emergency expenses, a health related emergency or no income in the household. The director may adopt rules that set forth other crisis situations.

2. "Utility" means a person that, for public use, transmits, sells, delivers or furnishes electricity, water, gas, sewer or telecommunications services. END_STATUTE

Sec. 11. Section 46-803, Arizona Revised Statutes, is amended to read:

START_STATUTE46-803. Eligibility for child care assistance

A. The department shall provide child care assistance to eligible families who are attempting to achieve independence from the cash assistance program and who need child care assistance in support of and as specified in their personal responsibility agreement pursuant to chapters 1 and 2 of this title.

B. The department shall provide child care assistance to eligible families who are transitioning off of cash assistance due to increased earnings or child support income in order to accept or maintain employment. Eligible families must request this assistance within six months after the cash assistance case closure. Child care assistance may be provided for up to twenty‑four months after the case closure and shall cease whenever the family income exceeds one hundred sixty‑five per cent of the federal poverty level.

C. The department shall provide child care assistance to eligible families who are diverted from cash assistance pursuant to section 46‑298 in order to obtain or maintain employment. Child care assistance may be provided for up to twenty‑four months after the case closure and shall cease whenever the family income exceeds one hundred sixty‑five per cent of the federal poverty level.

D. The department may provide child care assistance to support eligible families with incomes of one hundred sixty‑five per cent or less of the federal poverty level to accept or maintain employment. Priority for this child care assistance shall be given to families with incomes of one hundred per cent or less of the federal poverty level.

E. The department may provide child care assistance to families referred by child protective services and to children in foster care pursuant to title 8, chapter 5 to support child protection.

F. The department may provide child care assistance to special circumstance families whose incomes are one hundred sixty‑five per cent or less of the federal poverty level and who are unable to provide child care for a portion of a twenty‑four hour day due to a crisis situation of domestic violence or homelessness, or a physical, mental, emotional or medical condition, participation in a drug treatment or drug rehabilitation program or court ordered community service. Priority for this child care assistance shall be given to families with incomes of one hundred per cent or less of the federal poverty level.

G. In lieu of the employment activity required in subsection B, C or D of this section, the department may allow eligible families with teenaged custodial parents under twenty years of age to complete a high school diploma or its equivalent or engage in remedial education activities reasonably related to employment goals.

H. The department may provide supplemental child care assistance for department approved education and training activities if the eligible parent, legal guardian or caretaker relative is working at least a monthly average of twenty hours per week and this education and training are reasonably related to employment goals. The eligible parent, legal guardian or caretaker relative must demonstrate satisfactory progress in the education or training activity.

I. Beginning March 12, 2003, the department shall establish waiting lists for child care assistance and prioritize child care assistance for different eligibility categories in order to manage within appropriated and available monies. Priority of children on the waiting list shall start with those families at one hundred per cent of the federal poverty level and continue with each successive ten per cent increase in the federal poverty level until the maximum allowable federal poverty level of one hundred sixty‑five per cent. priority shall be given regardless of time spent on the waiting list.

J. The department shall establish criteria for denying, reducing or terminating child care assistance that include:

1. Whether there is a parent, legal guardian or caretaker relative available to care for the child.

2. Financial or programmatic eligibility changes or ineligibility.

3. Failure to cooperate with the requirements of the department to determine or redetermine eligibility.

4. Hours of child care need that fall within the child's compulsory academic school hours.

5. Reasonably accessible and available publicly funded early childhood education programs.

6. Whether an otherwise eligible family has been sanctioned and cash assistance has been terminated pursuant to chapter 2 of this title.

7. Other circumstances of a similar nature.

8. Whether sufficient monies exist for the assistance.

K. Families receiving child care assistance under subsection D or F of this section are also subject to the following requirements for such child care assistance:

1. Each child is limited to no more than sixty cumulative months of child care assistance. The department may provide an extension if the family can prove that the family is making efforts to improve skills and move towards self-sufficiency.

2. Families are limited to no more than six children receiving child care assistance.

3. Copayments shall be imposed for all children receiving child care assistance. Copayments for each child may be higher for the first child in child care than for additional children in child care.

K. L. The department shall review each case at least once a year to evaluate eligibility for child care assistance.

L. M. Notwithstanding section 35‑173, monies appropriated for the purposes of this section shall not be used for any other purpose without the approval of the joint legislative budget committee.

N. The department shall refer all child care subsidy recipients to child support enforcement and to local workforce services and provide information on the earned income tax credit. END_STATUTE

Sec. 12. Section 46-805, Arizona Revised Statutes, is amended to read:

START_STATUTE46-805. Child care assistance; rates

A. The department shall establish payment rates for child care assistance. Payment rates shall provide for equal access for eligible families to comparable child care services provided to families who are not eligible to receive child care assistance.

B. Beginning on July 1, 1998, payment rates shall be identical in form for all child care assistance.

C. The department may pay different levels of child care assistance according to the category of child care provider, age of children, geographic area, level of national accreditation, varying child care costs for children with special needs or other circumstances to meet the child care needs of eligible families.

D. The department shall establish a sliding fee scale and formula for determining child care assistance based on:

1. Income and earnings of the family.

2. Family size.

3. Number of children receiving child care assistance.

4. Child support to other minor dependent children of the parent living outside the family unit.

5. Income and earnings of a family member who is at least eighteen years of age and who is residing in the home with a parent who is receiving child care assistance, if the family member claims any member of a family unit applying for assistance as a dependent on a federal or state income tax return.

6. Income and earnings of a nonfamily member who is at least eighteen years of age and who is residing in the HOME OF and cohabiting with a parent who is receiving child care assistance if the cohabiting nonfamily member claims any member of a family unit applying for assistance as a dependent on a federal or state income tax return.

5. 7. Other factors of a similar nature.

E. All child care providers shall remain in good standing with licensing and certification laws and adopted rules. END_STATUTE

Sec. 13. County acute care contribution; fiscal year 2005-2006

A. Notwithstanding section 11-292, Arizona Revised Statutes, as amended by this act, for fiscal year 2005-2006 for the provision of hospitalization and medical care, the counties shall contribute the following amounts:

1. Apache $ 268,800

2. Cochise 2,214,800

3. Coconino 742,900

4. Gila 1,413,200

5. Graham 536,200

6. Greenlee 190,700

7. La Paz 212,100

8. Maricopa 31,959,200

9. Mohave 1,237,700

10. Navajo 310,800

11. Pima 14,951,800

12. Pinal 2,715,600

13. Santa Cruz 482,800

14. Yavapai 1,427,800

15. Yuma 1,325,100

B. If a county does not provide funding as specified in subsection A of this section, the state treasurer shall subtract the amount owed by the county to the Arizona health care cost containment system and long-term care system funds established by section 36-2913, Arizona Revised Statutes, from any payments required to be made by the state treasurer to that county pursuant to section 42-5029, subsection D, paragraph 2, Arizona Revised Statutes, plus interest on that amount pursuant to section 44-1201, Arizona Revised Statutes, retroactive to the first day the funding was due. If the monies the state treasurer withholds are insufficient to meet that county's funding requirements as specified in subsection A of this section, the state treasurer shall withhold from any other monies payable to that county from whatever state funding source is available an amount necessary to fulfill that county's requirement. The state treasurer shall not withhold distributions from the highway user revenue fund pursuant to title 28, chapter 18, article 2, Arizona Revised Statutes.

C. Payment of an amount equal to one-twelfth of the total amount determined pursuant to subsection A of this section shall be made to the state treasurer on or before the fifth day of each month. On request from the director of the Arizona health care cost containment system administration, the state treasurer shall require that up to three months' payments be made in advance, if necessary.

D. The state treasurer shall deposit the amounts paid pursuant to subsection C of this section and amounts withheld pursuant to subsection B of this section in the Arizona health care cost containment system and long-term care system funds established by section 36-2913, Arizona Revised Statutes.

E. If payments made pursuant to subsection C of this section exceed the amount required to meet the costs incurred by the Arizona health care cost containment system for the hospitalization and medical care of those persons defined as an eligible person pursuant to section 36-2901, paragraph 6, subdivisions (a), (b) and (c), Arizona Revised Statutes, the director of the Arizona health care cost containment system administration may instruct the state treasurer either to reduce remaining payments to be paid pursuant to this section by a specified amount or to provide to the counties specified amounts from the Arizona health care cost containment system and long-term care system funds.

F. It is the intent of the legislature that the Maricopa county contribution pursuant to subsection A of this section shall be reduced in each subsequent year according to the changes in the GDP price deflator. For the purposes of this subsection, "GDP price deflator" has the same meaning prescribed in section 41-563, Arizona Revised Statutes.

Sec. 14. Hospitalization and medical care contribution; fiscal year 2005-2006

A. Notwithstanding any other law, for fiscal year 2005-2006, beginning with the second monthly distribution of transaction privilege tax revenues, the state treasurer shall withhold the following amounts from state transaction privilege tax revenues otherwise distributable, after any amounts withheld for the county long-term care contribution or the county administration contribution pursuant to section 11-292, subsection P, Arizona Revised Statutes, as amended by this act, for deposit in the Arizona health care cost containment system fund established by section 36-2913, Arizona Revised Statutes, for the provision of hospitalization and medical care:

1. Apache $87,300

2. Cochise $162,700

3. Coconino $160,500

4. Gila $65,900

5. Graham $46,800

6. Greenlee $12,000

7. La Paz $24,900

8. Mohave $187,400

9. Navajo $122,800

10. Pima $1,115,900

11. Pinal $218,300

12. Santa Cruz $51,600

13. Yavapai $206,200

14. Yuma $183,900

B. If a county does not provide funding as specified in subsection A of this section, the state treasurer shall subtract the amount owed by the county to the Arizona health care cost containment system fund from any payments required to be made by the state treasurer to that county pursuant to section 42-5029, subsection D, paragraph 2, Arizona Revised Statutes, plus interest on that amount pursuant to section 44-1201, Arizona Revised Statutes, retroactive to the first day the funding was due. If the monies the state treasurer withholds are insufficient to meet that county's funding requirement as specified in subsection A of this section, the state treasurer shall withhold from any other monies payable to that county from whatever state funding source is available an amount necessary to fulfill that county's requirement. The state treasurer shall not withhold distributions from the highway user revenue fund pursuant to title 28, chapter 18, article 2, Arizona Revised Statutes.

C. Payment of an amount equal to one-twelfth of the total monies prescribed pursuant to subsection A of this section shall be made to the state treasurer on or before the fifth day of each month. On request from the director of the Arizona health care cost containment system administration, the state treasurer shall require that up to three months' payments be made in advance, if necessary.

D. The state treasurer shall deposit the monies paid pursuant to subsection C of this section in the Arizona health care cost containment system fund established by section 36-2913, Arizona Revised Statutes.

E. In fiscal year 2005-2006, the sum of $2,646,200 withheld pursuant to subsection A or B of this section, as applicable, is allocated for the county acute care contribution for the provision of hospitalization and medical care services administered by the Arizona health care cost containment system administration.

Sec. 15. Withholding state shared revenues; fiscal year 2005‑2006

A. Based on the distribution of disproportionate share funding to county operated hospitals made pursuant to section 36-2903.01, subsection P, Arizona Revised Statutes, for fiscal year 2005-2006, the staff director of the joint legislative budget committee shall compute amounts to be withheld from transaction privilege tax revenues for counties with a population of at least one million five hundred thousand persons pursuant to subsection B of this section.

B. Notwithstanding section 42-5029, subsection D, paragraph 2, Arizona Revised Statutes, beginning with the first monthly distribution of transaction privilege tax revenues and at the direction of the governor, the state treasurer shall withhold an amount totaling $63,366,600 from state transaction privilege tax revenues otherwise distributable, after any amounts withheld for the county long-term care contribution for fiscal year 2005-2006 from counties with a population of at least one million five hundred thousand persons. Amounts withheld from individual counties under this subsection shall be determined pursuant to subsection A of this section.

C. In addition to the amount specified in subsection B of this section, the state treasurer may also withhold transaction privilege tax revenues in fiscal year 2006-2007 if amounts withheld pursuant to subsection B of this section for fiscal year 2005-2006 are insufficient.

D. If changes in federal policies regarding the disproportionate share funding to county operated hospitals reduces payment levels below the amount specified in the fiscal year 2005-2006 general appropriations act, the governor, after consultation with chairpersons of the house and senate appropriations committees, may direct the state treasurer to suspend withholdings of transaction privilege tax revenues specified in subsection B of this section to accommodate the federal policy change.

Sec. 16. County expenditure limitations; disproportionate share; fiscal year 2005-2006 adjustment formula

A. As a result of the transfer of funding for disproportionate share health services, as provided in this act, from the counties to the state and federal governments for fiscal year 1991-1992 through fiscal year 2005-2006 the economic estimates commission shall decrease the base limit of each county in which the county hospital receives state and federal disproportionate share payments in fiscal year 2005-2006 as follows:

1. Divide the amount of the state and federal disproportionate share payments received by the county hospital in fiscal year 2005-2006 by the GDP price deflator, as defined in section 41-563, Arizona Revised Statutes, for the same fiscal year used to calculate expenditure limitations for fiscal year 2005-2006 and multiply the resulting quotient by the GDP price deflator determined for fiscal year 1979-1980.

2. Divide the amount determined in paragraph 1 for fiscal year 2005‑2006 by the population of the county, as defined in article IX, section 20, subsection (3), paragraph (f), Constitution of Arizona, for the same fiscal year used to calculate expenditure limitations for fiscal year 2005‑2006 and multiply the resulting quotient by the population of the county for fiscal year 1979-1980.

B. The economic estimates commission shall adjust the county expenditure limitations for fiscal year 2005-2006 based on this section. The calculation shall use the same base limit of $161,290,737 for Maricopa county for the purpose of determining the adjustment.

Sec. 17. County expenditure limitations; disproportionate share; fiscal year 2006-2007

As a result of the elimination of the transfer of funding for disproportionate share hospital services from the counties to the state and federal governments beginning with fiscal year 2006-2007, the county expenditure limitations shall be adjusted beginning with fiscal year 2006‑2007. The economic estimates commission shall increase the base limit of each county by the amount the base limit was decreased for fiscal year 2005‑2006 pursuant to this act.

Sec. 18. Child care eligibility levels; report

Notwithstanding section 46-803, Arizona Revised Statutes, for fiscal year 2005-2006, the department of economic security may reduce maximum income eligibility levels for child care assistance in order to manage within appropriated and available monies. The department shall notify the joint legislative budget committee of any change in maximum income eligibility levels for child care within fifteen days after implementing that change.

Sec. 19. Competency restoration treatment; city and county reimbursement; fiscal year 2005-2006; deposit; tax withholding

A. Notwithstanding section 13-4512, Arizona Revised Statutes, for cities and counties, if the state pays the costs of a defendant's inpatient competency restoration treatment pursuant to section 13-4512, Arizona Revised Statutes, the city or county shall reimburse the department of health services for eighty-six per cent of these costs for fiscal year 2005-2006 except for those counties with populations of less than eight hundred thousand persons who shall pay fifty per cent of these costs for fiscal year 2005-2006. The department shall deposit the monies, pursuant to sections 35‑146 and 35‑147, Arizona Revised Statutes, in the Arizona state hospital fund established by section 36-545.08, Arizona Revised Statutes.

B. Each city and county shall make the reimbursements for these costs as specified in subsection A of this section within thirty days after a request by the department. If the city or county does not make the reimbursement, the superintendent of the Arizona state hospital shall notify the state treasurer of the amount owed and the treasurer shall withhold the amount, including any additional interest as provided in section 42-1123, Arizona Revised Statutes, from any transaction privilege tax distributions to the city or county. The treasurer shall deposit the withholdings, pursuant to sections 35-146 and 35-147, Arizona Revised Statutes, in the Arizona state hospital fund established by section 36-545.08, Arizona Revised Statutes.

Sec. 20. Suicide prevention program; suspension

Notwithstanding section 36-3415, Arizona Revised Statutes, the department of health services shall not operate a suicide prevention program in fiscal year 2005-2006 unless new federal monies that do not require state matching monies are received for the operation of the program.

Sec. 21. Children's health insurance program; parents eligibility; fiscal year 2005-2006

A. Notwithstanding any other law, for fiscal year 2005-2006, a parent of a child who is eligible for or enrolled in the children's health insurance program or a parent who has a child enrolled under title 36, chapter 29, article 1, Arizona Revised Statutes, but who would be eligible for the children's health insurance program is eligible for the children's health insurance program as defined in title 36, chapter 29, article 4, Arizona Revised Statutes, and may apply for eligibility based on an income that does not exceed two hundred per cent of the federal poverty level.

B. In determining eligibility pursuant to subsection A of this section, the administration shall apply other eligibility requirements pursuant to sections 36-2981 and 36-2983, Arizona Revised Statutes, and to rules adopted by the administration. If the parent is determined eligible pursuant to this section, all other requirements established by the administration by rule, including premium payment requirements and available services, in title 36, chapter 29, article 4, Arizona Revised Statutes, apply.

Sec. 22. ALTCS; county contributions

Notwithstanding section 11-292, Arizona Revised Statutes, as amended by this act, county contributions for the Arizona long-term care system for fiscal year 2005-2006 are as follows:

1. Apache, $526,300.

2. Cochise, $5,774,700.

3. Coconino, $1,579,000.

4. Gila, $3,044,000.

5. Graham, $963,300.

6. Greenlee, $126,600.

7. La Paz, $792,500.

8. Maricopa, $130,003,100.

9. Mohave, $7,328,700.

10. Navajo, $2,177,000.

11. Pima, $41,127,000.

12. Pinal, $9,676,600.

13. Santa Cruz, $2,098,800.

14. Yavapai, $7,464,200.

15. Yuma, $6,056,300.

Sec. 23. Arizona state hospital; private operation

A. Notwithstanding any law to the contrary, pursuant to requests for proposals, the department of health services may enter into a five year contract with a private entity to administer the Arizona state hospital and deliver client services. The contract shall allow the department to renew the contract for two subsequent renewal periods of not more than five years each and shall prescribe the circumstances under which the department may terminate the contract before the end of a five year period. The department may issue separate requests for proposals for criminal, civil, juvenile and adult population categories in the state hospital.

B. The contract shall include the following requirements:

1. The contractor must successfully attain performance goals prescribed by the department and the joint legislative budget committee relating to improvement of the state hospital's administration and delivery of client services.

2. The contractor shall not use subcontractors or subsidiaries to deliver services prescribed in the contract.

C. To be considered for an award of a contract, the contractor must demonstrate that it has:

1. The qualifications, operations and management experience and experienced personnel necessary to carry out the terms of the contract.

2. The ability to comply with applicable standards and any specific court order, if required.

3. A demonstrated history of successful operation and management of secure behavioral health facilities.

4. A demonstrated history of successful delivery of behavioral health services.

D. The contractor must agree:

1. That this state may cancel the contract at any time after the first year of operation, without penalty to this state, on ninety days' written notice.

2. To be in compliance at all times with all corrective action plans that are in effect at the time the contract is entered into or that are subsequently entered into by this state and the center for medicare and medicaid services.

3. To comply with all medicare certification requirements.

E. A contract may provide for annual contract price or cost adjustments, except that any adjustments may be made only once each year effective on the anniversary of the effective date of the contract. If any adjustment is made pursuant to the terms of the contract, it must be applied to the total payments made to the contractor for the previous contract year and shall not exceed the per cent of change in the average consumer price index as published by the United States department of labor, bureau of labor statistics between that figure for the latest calendar year and the next previous calendar year. Any price or cost adjustments different than those authorized in this subsection may be made only if the legislature specifically authorizes the adjustments and appropriates monies for that purpose, if required.

F. The department shall not award a contract unless:

1. It receives an acceptable proposal pursuant to any request for proposals. For the purposes of this paragraph, "acceptable proposal" means a proposal that substantially meets all of the requirements or conditions prescribed in this section and that meets all of the requirements in the request for proposals.

2. The proposal offers cost savings to this state based on the standard cost comparison model approved by the joint legislative budget committee.

3. The proposal offers a level and quality of services that equal or exceed those that would be provided by this state.

4. The contractor provides audited financial statements for the previous five years, or for each of the years the contractor has been in operation, if fewer than five years, and provides other financial information as requested.

5. The contractor provides an adequate plan of insurance, specifically including coverage or insurance for civil rights claims and liabilities as approved by the risk management division of the department of administration.

6. The contractor agrees to be liable for the costs of any emergency, public safety or security services provided to the contractor by this state or any political subdivision of this state and to reimburse this state or any political subdivision of this state for the cost of those services.

G. The sovereign immunity of this state does not apply to the contractor. Neither the contractor nor the insurer of the contractor may plead the defense of sovereign immunity in any action arising out of the performance of the contract.

H. The contract terms are subject to prior review by the joint legislative budget committee before placement of any advertisement that solicits a response to a request for proposals. Any proposed modification or amendment to the contract is subject to prior review by the joint legislative budget committee.

I. During its first year of operation, the contracting entity shall submit monthly reports to the department and the joint legislative budget committee as prescribed by the department. Thereafter, the contracting entity shall submit quarterly reports to the department and the joint legislative budget committee as prescribed by the department.

J. At the end of the fourth year of the contract, an independent evaluator selected by the department shall conduct and complete a performance review to determine if the contracting entity has met the goals specified in the contract. The independent evaluator shall submit a report of its findings to the governor, the president of the senate, the speaker of the house of representatives and the joint legislative budget committee on or before May 1, 2010 and shall provide a copy of its report to the secretary of state and the director of the Arizona state library, archives and public records.

K. The department shall make a good faith attempt to place all state hospital personnel who are under the state personnel system on the effective date of the contract entered into pursuant to this section and who are not offered continued employment by the contracting entity.

L. All appropriated monies that remain unexpended and unencumbered on the effective date of the contract entered into pursuant to this section revert to the state general fund.

M. The department of health services shall report to the joint legislative budget committee by July 1, 2006 on whether the department intends to privatize the state hospital. If the department intends to privatize the state hospital, the report shall contain a time frame for issuing a request for proposals. If the department decides against privatizing the state hospital, the report shall include the department's rationale for not doing so.

Sec. 24. Auditor general review; healthcare group

By March 1, 2006, the auditor general shall conduct a special audit as defined in section 41-1278, Arizona Revised Statutes, of the healthcare group program administered by the Arizona health care cost containment system. The audit shall include an examination of the administrative costs of the program, whether the program's financial reserves are adequate compared to what private health insurance providers are required to maintain and whether provisions requiring employer groups to be without health insurance for one hundred eighty days before enrollment in healthcare group are being enforced. The auditor general shall submit copies of the audits to the governor, the president of the senate, the speaker of the house of representatives, the secretary of state and the director of the Arizona state library, archives and public records.

Sec. 25. AHCCCS; report on outlier reimbursement

By November 15, 2005, the Arizona health care cost containment system shall report to the joint legislative budget committee on the methodology used to reimburse hospitals for outlier inpatient costs pursuant to section 36-2903.01, subsection H, paragraph 10, Arizona Revised Statutes, the total reimbursements made in fiscal year 2004-2005 pursuant to that section by county and by health care facility or provider, or both, information detailing the lengths of stay and the types of services reimbursed pursuant to that section and the portion of total inpatient reimbursements that qualify as outliers. The report shall also examine whether any services are being reimbursed pursuant to section 36-2903.01, subsection H, paragraph 10, Arizona Revised Statutes, that were not originally intended to qualify as outliers.

Sec. 26. Child care eligibility; assistance; applicability; legislative intent

It is the intent of the legislature that the eligibility changes in sections 46-803 and 46-805, Arizona Revised Statutes, as amended by this act, be applied prospectively on the effective date of this act. Clients currently receiving assistance shall not be exempt from the eligibility changes but shall have them applied starting on the effective date of this act.

Sec. 27. Acute care; redetermination; selected population; report

A. Notwithstanding any other law, for fiscal year 2005-2006, the Arizona health care cost containment system administration shall determine continued eligibility for acute care services every six months for any adult who is at least twenty-one years of age and who is being redetermined for temporary assistance for needy families cash benefits in the department of economic security.

B. Acute care redeterminations pursuant to subsection A shall start on the effective date of this act and shall occur simultaneously with redetermination for temporary assistance for needy families cash benefits.

C. The administration shall report to the president of the senate, the speaker of the house of representatives and the joint legislative budget committee by February 10, 2006 on the effects through January of changing the redetermination period for the population described in subsection A. The report shall include the number of redetermination letters sent out, the number of redetermination interviews conducted and the number of redetermination interviews resulting in continued acute care benefits.