SB1112 - 541R

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

Section 1. Section 36-1201, Arizona Revised Statutes, is amended to read:

START_STATUTE36-1201. Juvenile group homes; service contracts; registry; definitions

A. State agencies that contract directly with group homes or regional behavioral health authorities that, as part of their contracts with the department of health services, subcontract with group homes shall require in each contract awarded, renewed or amended the following minimum provisions:

1. The group home shall provide a safe, clean and humane environment for the residents.

2. The group home is responsible for the supervision of the residents while in the group home environment or while residents are engaged in any off‑site activities organized or sponsored by and under the direct supervision and control of the group home or affiliated with the group home.

3. All group home contractors shall be licensed by either the department of health services, the department of child safety or the department of economic security.

4. The award of a group home contract from an appropriate contracting authority is not a guarantee that children will be placed at the group home.

5. A license violation by the group home that is not corrected pursuant to this section may also be considered a contract violation.

6. State agencies and regional behavioral health authorities may share information regarding group home contractors. The shared information shall not include information that personally identifies residents of group homes.

7. The following contract remedies:

(a) A schedule of financial sanctions in an amount of up to five hundred dollars $500 per violation that the contracting authority, after completing an investigation, may assess against the group home contractor for a substantiated contract violation relating to the health, care or safety of a resident or the safety of a neighbor. A financial sanction may be imposed for a contract violation related to the safety of a neighbor only if the conduct that constitutes the violation would be sufficient to form the basis for a civil cause of action for damages on the part of the neighbor whether or not such a civil action has been filed. These sanctions may be imposed by either deducting the amount of the sanction from any payment due or withholding future payments. The deduction or withholding may occur after any hearing available to the contractor.

(b) The contracting authority's right to remove residents from the group home or suspend new placements to the group home until the contracting violation is corrected.

8. Within ten business days after the contracting authority receives a complaint relating to a group home the contracting authority shall notify the group home provider and either initiate an investigation or refer the investigation to the licensing authority. If any complaint concerns an immediate threat to the health and safety of a child, the complaint shall be immediately referred to the licensing authority. If the contracting authority determines that a violation has occurred, it shall:

(a) Notify all other contracting authorities of the violation.

(b) Coordinate a corrective action plan consistent with the severity of the violation.

9. If a licensing deficiency is not corrected in a timely manner to the satisfaction of the licensing authority, the contracting authority may cancel the contract immediately on notice to the group home and may remove the residents.

10. A person may bring a complaint against any state agency that violates this section pursuant to title 41, chapter 6, article 6 or 10, as applicable. In addition to any costs or fees awarded to a person resulting from a complaint of a violation of this section, the agency shall revert the sum of five thousand dollars $5,000 from its general fund operating appropriation to the state treasurer for deposit in the state general fund for each violation that is upheld by an administrative law judge or hearing officer. The legislature shall appropriate monies that revert under this section to a similar program that provides direct services to children.

B. When a licensing authority has determined that a license violation has occurred or is occurring, the licensing authority shall notify the appropriate contracting authority of the licensing violation.

C. A group home's record of contract violations and licensing violations may be considered by any contracting authority when it evaluates any request for proposals.

D. The department of health services shall establish a central registry of juvenile group homes licensed by this state. Each agency that is subject to the requirements of this section shall provide updated information for the registry to the department of health services every six months. The registry shall include the following information regarding each group home:

1. The location of the group home, including satellite facilities.

2. The number of residents at the group home and its satellite facilities.

3. The current, updated emergency contacts for the group home and its satellite facilities.

4. The current, updated contacts for the group home's licensing authority.

E. If the municipality in which a group home is located requests the department of health services to provide information from the registry, the department shall provide the information every six months to the municipality.

F. For the purposes of this article:

1. "Contract violation" means a licensing violation or a failure of the group home to comply with those provisions of its contract relating to subsection A, paragraphs 1, 2 and 3 of this section.

2. "Contracting authority" means a regional behavioral health authority or the state agency or its division, office, section, bureau or program that is responsible for the administration and monitoring of contracts with group homes.

3. "Group home" means a residential facility that is licensed to serve more than four minors at any one time, that is licensed by the department of health services pursuant to chapter 4 of this title or section 36‑591, subsection B or by the department of child safety pursuant to title 8, chapter 4, article 4 and that provides services pursuant to a contract for minors determined to be dependent as defined in section 8‑201 or delinquent or incorrigible pursuant to section 8‑341, or for minors with developmental disabilities, mental health or substance abuse needs. Group home does not include hospitals, nursing homes, child crisis and domestic violence shelters, adult homes, foster homes, facilities subject to any transient occupancy tax or behavioral health service agencies that provide twenty‑four hour or continuous physician availability.

4. "Licensing authority" means the state agency or its division, office, section, bureau or program that is responsible for licensing group homes.

5. "Licensing violation" means a determination by the licensing authority that the group home is not in compliance with licensing requirements as prescribed in statute or rule.

6. "Neighbor" means a person residing within a one‑quarter mile radius of the group home.

7. "Resident" means any person who is placed in a group home pursuant to a contract with a contracting authority. END_STATUTE