SB1315 - 492R

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

Section 1. Section 36-882, Arizona Revised Statutes, is amended to read:

START_STATUTE36-882. License; posting; transfer prohibited; fees; provisional license; renewal

A. A child care facility shall not receive any child for care, supervision or training unless the facility is licensed by the department of health services.

B. An application for a license shall be made on a written or electronic form prescribed by the department and shall include:

1. Information required by the department for the proper administration of this chapter and rules adopted pursuant to this chapter.

2. The name and business or residential address of each controlling person.

3. An affirmation by the applicant that no controlling person has been denied a certificate to operate a child care group home or a license to operate a child care facility for the care of children in this state or another state or has had a license to operate a child care facility or a certificate to operate a child care group home revoked for reasons that relate to the endangerment of the health and safety of children.

C. An application for an initial license shall include:

1. The form that is required pursuant to section 36-883.02, subsection C and that is completed by the applicant.

2. A copy of a valid fingerprint clearance card issued to the applicant pursuant to section 41-1758.07.

3. If the applicant's facility is located within one-fourth mile of any agricultural land, the names and addresses of the owners and lessees of the agricultural land and a copy of the agreement required pursuant to subsection D of this section.

D. The department shall deny any license that affects agricultural land regulated pursuant to section 3‑365, except that the owner of the agricultural land may agree to comply with the buffer zone requirements of section 3‑365. If the owner agrees in writing to comply with the buffer zone requirements and records the agreement in the office of the county recorder as a restrictive covenant running with the title to the land, the department may license the child care facility to be located within the affected buffer zone. The agreement may include any stipulations regarding the child care facility, including conditions for future expansion of the facility and changes in the operational status of the facility that will result in a breach of the agreement. This subsection shall not apply to the issuance or renewal of a license for a child care facility located in the same location for which a child care facility license was previously issued.

E. On receipt of an application for an initial license, the department shall inspect the applicant's physical space, activities and standards of care. If the department determines that the applicant and the applicant's facility are in substantial compliance with this chapter and rules adopted pursuant to this chapter and the applicant agrees to carry out a plan acceptable to the department to eliminate any deficiencies, the department shall issue an initial license to the applicant.

F. The director, by rule, may establish and collect nonrefundable fees an annual licensure fee for child care facilities for initial and renewal license applications and a fee for late filing of applications. Beginning January 1, 2010, ninety per cent of the fees collected pursuant to this section shall be deposited, pursuant to sections 35‑146 and 35‑147, in the health services licensing fund established by section 36‑414 and ten per cent of the fees collected pursuant to this section shall be deposited, pursuant to sections 35‑146 and 35‑147, in the state general fund.

G. A license is valid for three years from the date of issuance unless it is subsequently revoked or suspended or the licensee does not pay the licensure fee and shall specify the following:

1. The name of the applicant.

2. The exact address where the applicant will locate the facility.

3. The maximum number and age limitations of children that shall be cared for at any one time.

4. The classification of services that the facility is licensed to provide.

H. The department may issue a provisional license, not to exceed six months, to an applicant or a licensed child care facility if:

1. The facility changes director.

2. The department determines that an applicant for an initial license or a licensed child care facility is not in substantial compliance with this chapter and rules adopted pursuant to this chapter and the immediate interests of children, families and the general public are best served if the child care facility or the applicant is given an opportunity to correct deficiencies.

I. A provisional license shall state the reason for the provisional status.

J. On the expiration of a provisional license, the department shall issue a regular license for the remainder of the license period if the department determines that the licensee and the child care facility are in substantial compliance with this chapter and rules adopted pursuant to this chapter and the applicant agrees to carry out a plan acceptable to the department to eliminate any deficiencies.

K. Except as provided in section 36-893, subsection A, on receipt of a renewal application that complies with this chapter and rules adopted pursuant to this chapter, the department shall issue a renewal license to the child care facility.

L. K. The licensee shall notify the department in writing within ten days of any change in the child care facility's director.

M. L. The license is not transferable from person to person and is valid only for the quarters occupied at the time of issuance.

N. M. The license shall be conspicuously posted in the child care facility.

O. N. The licensee shall conspicuously post a schedule of fees charged for services and the established policy for a refund of fees for services not rendered.

P. O. The licensee shall keep current department inspection reports at the child care facility and shall make them available to parents on request. The licensee shall conspicuously post a notice that identifies the location where these inspection reports are available for review.

Q. P. The department of health services shall notify the department of public safety if the department of health services receives credible evidence that a licensee who possesses a valid fingerprint clearance card either:

1. Is arrested for or charged with an offense listed in section 41‑1758.07, subsection B.

2. Falsified information on any form required by section 36-883.02.

Q. Licensees may pay licensure fees by installment payments based on procedures established by the department.

R. The department shall review its actual costs to administer this article at least once every two years. If the department determines that its administrative costs are significantly lower than the fees it has collected pursuant to this section, it shall adjust fees and may refund or credit the overpayment to licensees. Fee reductions are exempt from the rule making requirements of title 41, chapter 6. END_STATUTE

Sec. 2. Section 36-897.01, Arizona Revised Statutes, is amended to read:

START_STATUTE36-897.01. Certification; application; fees; rules; fingerprinting; renewal

A. A child care group home shall be certified by the department. An application for a certificate shall be made on a written or electronic form prescribed by the department and shall contain all information required by the department.

B. If a child care group home is within one‑fourth mile of agriculture land, the application shall include the names and addresses of the owners and lessees of any agricultural land within one‑fourth mile of the facility. Within ten days after receipt of an application for a certificate, the department shall notify the owners and lessees of agricultural land as listed on the application. The department shall deny a certificate that affects agricultural land regulated pursuant to section 3‑365, except that the owner of the agricultural land may agree to comply with the buffer zone requirements of section 3‑365. If the owner agrees in writing to comply with the buffer zone requirements and records the agreement in the office of the county recorder as a restrictive covenant running with the title to the land, the department may issue a certificate to the child care group home to be located within the affected buffer zone. The agreement may include any stipulations regarding the child care group home, including conditions for future expansion of the facility and changes in the operational status of the facility that will result in a breach of the agreement. This subsection applies to the renewal of a certificate for a child care group home located in the same location if the child care group home certificate was not previously issued under this subsection.

C. The director, by rule, may establish and collect nonrefundable fees an annual certification fee for child care group homes for initial and renewal certificate applications and for a late filing fees fee. Beginning January 1, 2010, ninety per cent of the fees collected pursuant to this section shall be deposited, pursuant to sections 35‑146 and 35‑147, in the health services licensing fund established by section 36‑414 and ten per cent of the fees collected pursuant to this section shall be deposited, pursuant to sections 35‑146 and 35‑147, in the state general fund.

D. The department shall issue an initial certificate if the department determines that the applicant and the applicant's child care group home are in substantial compliance with the requirements of this article and department rules and the facility agrees to carry out a plan acceptable to the director to eliminate any deficiencies.

E. A certificate is valid for three years unless it is revoked or suspended or the licensee does not pay the licensure fee and may be renewed for successive three‑year periods annually by submitting a renewal application the annual certification fee as prescribed by the department and submitting a nonrefundable renewal application fee established pursuant to subsection C of this section. An applicant for renewal who fails to submit the application forty‑five days before the expiration of the certificate is subject to a late filing fee established pursuant to subsection C of this section.

F. In order to ensure that the equipment and services of a child care group home and the good character of an applicant are conducive to the welfare of children, the department by rule shall establish the criteria for granting, denying, suspending and revoking a certificate.

G. The director shall adopt rules and prescribe forms as may be necessary for the proper administration and enforcement of this article.

H. The certificate shall be conspicuously posted in the child care group home for viewing by parents and the public.

I. Current department inspection reports shall be kept at the child care group home and shall be made available to parents on request.

J. A certificate is not transferable and is valid only for the location occupied at the time it is issued.

K. An application for an initial certificate shall include:

1. The form that is required pursuant to section 36-897.03, subsection B and that is completed by the applicant.

2. A copy of a valid fingerprint clearance card issued to the applicant pursuant to section 41-1758.07.

L. Except as provided in section 36-897.10, subsection A, on receipt of a renewal application that complies with this chapter and rules adopted pursuant to this chapter, the department shall issue a renewal certificate to the child care group home.

M. L. The department of health services shall notify the department of public safety if the department of health services receives credible evidence that a person who possesses a valid fingerprint clearance card either:

1. Is arrested for or charged with an offense listed in section 41‑1758.07, subsection B.

2. Falsified information on any form required by section 36-897.03.

M. Certificate holders may pay fees by installment payments based on procedures established by the department.

N. The department shall review its actual costs to administer this article at least once every two years. If the department determines that its administrative costs are significantly lower than the fees it has collected pursuant to this section, it shall adjust fees and may refund or credit the overpayment to certificate holders. Fee reductions are exempt from the rule making requirements of title 41, chapter 6. END_STATUTE

Sec. 3. Child care programs; study; report

A. The department of health services shall conduct a study of its specific costs to administer title 36, chapter 7.1, Arizona Revised Statutes. The study shall identify costs specific to the following areas relating to child care facilities and child care group homes:

1. The licensure and certification process.

2. Inspections.

3. Complaints.

4. Enforcement.

5. Training.

6. Technical assistance.

7. Consumer assistance.

B. The study shall analyze how these costs are related to the type and size of facilities and shall identify any other related costs that are included in licensure and certification fees.

C. In conducting its study, the department shall consult with representatives of facilities that are licensed and certified pursuant to title 36, chapter 7.1, Arizona Revised Statutes.

D. The study shall assess the efficiency of the department's regulation of child care facilities and child care group homes and develop recommendations to improve the efficiency and cost-effectiveness of its regulation without jeopardizing the health and safety of children.

E. The department shall submit a written report of the study's findings and recommendations to the governor, the speaker of the house of representatives and the president of the senate on or before April 1, 2011. The department shall provide a copy of its report to the secretary of state.

F. On or before October 1, 2010, the department shall adopt rules to streamline its regulation of facilities pursuant to section 36‑883, Arizona Revised Statutes.

G. The department shall adjust fees based on the findings of its study and the rules adopted pursuant to subsection F of this section.

Sec. 4. Payment of annual fees

A. A licensed child care facility that pays fees for a license that becomes effective on or after January 1, 2010, and before the effective date of this act shall pay annual fees beginning January 1, 2012. A licensed child care facility that pays fees for a license that became effective before January 1, 2010, shall pay annual fees pursuant to the requirements of section 36-882, Arizona Revised Statutes, as amended by this act.

B. A certified child care group home that pays fees for a certificate that becomes effective on or after January 1, 2010, and before the effective date of this act shall pay annual fees beginning January 1, 2012. A certified child care group home that pays fees for a certificate that became effective before January 1, 2010, shall pay annual fees pursuant to the requirements of section 36-897.01, Arizona Revised Statutes, as amended by this act.

Sec. 5. Exemption from rule making

For the purposes of this act, the department of health services is exempt from the rule making requirements of title 41, chapter 6, Arizona Revised Statutes, for one year after the effective date of this act.