SB1471 - 541R

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

Section 1. Section 36-405, Arizona Revised Statutes, is amended to read:

START_STATUTE36-405. Powers and duties of the director

A. The director shall adopt rules to establish minimum standards and requirements for the construction, modification and licensure of health care institutions necessary to ensure the public health, safety and welfare. The standards and requirements shall relate to the construction, equipment, sanitation, staffing for medical, nursing and personal care services, and recordkeeping pertaining to the administration of medical, nursing, behavioral health and personal care services, in accordance with generally accepted practices of health care. The director shall use the current standards adopted by the joint commission on accreditation of hospitals and the commission on accreditation of the American osteopathic association or those adopted by any recognized accreditation organization approved by the department as guidelines in prescribing minimum standards and requirements under this section.

B. The director, by rule, may:

1. Classify and subclassify health care institutions according to character, size, range of services provided, medical or dental specialty offered, duration of care and standard of patient care required for the purposes of licensure. Classes of health care institutions may include hospitals, infirmaries, outpatient treatment centers, health screening services centers and residential care facilities, including secure behavioral health residential facilities. Whenever the director reasonably deems distinctions in rules and standards to be appropriate among different classes or subclasses of health care institutions, the director may make such distinctions.

2. Prescribe standards for determining a health care institution's substantial compliance with licensure requirements.

3. Prescribe the criteria for the licensure inspection process.

4. Prescribe standards for the selection of health care-related demonstration projects.

5. Establish nonrefundable application and licensing fees for health care institutions, including a grace period and a fee for the late payment of licensing fees, and fees for architectural plans and specifications reviews.

6. Establish a process for the department to notify a licensee of the licensee's licensing fee due date.

7. Establish a process for a licensee to request a different licensing fee due date, including any limits on the number of requests by the licensee.

C. The director, by rule, shall adopt licensing provisions that facilitate the colocation and integration of outpatient treatment centers that provide medical, nursing and health‑related services with behavioral health services consistent with article 3.1 of this chapter.

D. Ninety percent 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 percent of the fees collected pursuant to this section shall be deposited, pursuant to sections 35‑146 and 35‑147, in the state general fund.

E. Subsection B, paragraph 5 of this section does not apply to a health care institution operated by a state agency pursuant to state or federal law or to adult foster care residential settings. END_STATUTE

Sec. 2. Section 41-3955, Arizona Revised Statutes, is amended to read:

START_STATUTE41-3955. Housing trust fund; purpose; annual report

A. The housing trust fund is established, and the director shall administer the fund. The fund consists of:

1. Monies from unclaimed property deposited in the fund pursuant to section 44‑313. ,

2. Monies transferred pursuant to section 35‑751. and

3. Tax collections from nonresident sales of real property located in this state deposited pursuant to section 42‑1116, subsection B, paragraph 6, subdivision (c). Up to $10,000,000 of the monies deposited pursuant to this paragraph shall be used exclusively for capital projects, housing, rental assistance and services for homeless youth and families and shall supplement, and not supplant, homeless youth and family funding from other potential sources. Monies deposited pursuant to this paragraph in excess of $10,000,000 may be used by the department for other projects and programs.

4. Investment earnings.

B. On notice from the department, the state treasurer shall invest and divest monies in the fund as provided by section 35‑313, and monies earned from investment shall be credited to the fund.

C. Fund monies shall be spent on approval of the department for developing projects and programs connected with providing housing opportunities for low and moderate income households and for housing affordability programs. Pursuant to section 44‑313, subsection A, a portion of fund monies shall be used exclusively for housing in rural areas.

D. In approving the expenditure of monies, the director shall give priority to funding projects that provide for operating, constructing or renovating facilities for housing for low income low‑income families and that provide housing and shelter to families that have children.

E. The director shall report annually to the legislature on the status of the housing trust fund. The report shall include a summary of facilities for which funding was provided during the preceding fiscal year and shall show the cost and geographic location of each facility and the number of individuals benefiting from the operation, construction or renovation of the facility. The report shall be submitted to the president of the senate and the speaker of the house of representatives, and a copy provided to the secretary of state, no later than September 1 of each year.

F. Monies in the housing trust fund are exempt from the provisions of section 35‑190 relating to lapsing of appropriations.

G. An amount not to exceed ten percent of the housing trust fund monies may be appropriated annually by the legislature to the department for administrative costs in providing services relating to the housing trust fund.

H. For any construction project financed by the department pursuant to this section, the department shall notify a city, town, county or tribal government that a project is planned for its jurisdiction and, before proceeding, shall seek comment from the governing body of the city, town, county or tribal government or an official authorized by the governing body of the city, town, county or tribal government. The department shall not interfere with or attempt to override the local jurisdiction's planning, zoning or land use regulations. END_STATUTE

Sec. 3. Section 41-3955.01, Arizona Revised Statutes, is amended to read:

START_STATUTE41-3955.01. Seriously mentally ill housing trust fund; purpose; report

A. The seriously mentally ill housing trust fund is established. The director of the Arizona health care cost containment system administration shall administer the fund. The fund consists of:

1. Monies received pursuant to section 44‑313. and

2. Tax collections from nonresident sales of real property located in this state deposited pursuant to section 42‑1116, Subsection B, paragraph 6, subdivision (b).

3. Investment earnings.

B. On notice from the director of the Arizona health care cost containment system administration, the state treasurer shall invest and divest monies in the fund as provided by section 35‑313, and monies earned from investment shall be credited to the fund.

C. Except as provided in subsection D of this section, fund monies shall be spent on approval of the Arizona health care cost containment system administration solely for housing projects for seriously mentally ill persons.

D. fund monies deposited pursuant to subsection A, paragraph 2 of this section may be spent for seriously mentally ill persons in the following settings:

1. A community living home that is for persons who hold their own leases and that has embedded in-home support to meet the individualized needs of the person and up to twenty-four hours of support and supervision as indicated by the person's individual treatment plan.

2. A behavioral health residential facility that:

(a) Is licensed by the department of health services.

(b) Provides in‑house wraparound services and secure twenty‑four‑hour on-site support, treatment and supervision by staff with behavioral health training for persons who have serious mental illness of sufficient severity as to require assistance to live in the community and who are subject to a plan of care that is ordered by a mental health court, a mental health division of the probate court, a criminal court as part of a plea agreement or judgment and conviction or a court as part of guardianship proceedings or that is part of a diversion agreement entered into with a law enforcement agency.

D. E. The director of the Arizona health care cost containment system administration shall report annually to the legislature on the status of the seriously mentally ill housing trust fund. The report shall include a summary of facilities for which funding was provided during the preceding fiscal year and shall show the cost and geographic location of each facility and the number of individuals benefiting from the operation, construction or renovation of the facility. The report shall be submitted to the president of the senate and the speaker of the house of representatives no, and a copy provided to the secretary of state, not later than September 1 of each year.

E. F. Monies in the seriously mentally ill housing trust fund are exempt from the provisions of section 35‑190 relating to lapsing of appropriations.

F. G. An amount not to exceed ten percent of the seriously mentally ill housing trust fund monies may be appropriated annually by the legislature to the Arizona health care cost containment system for administrative costs in providing services relating to the seriously mentally ill housing trust fund.

G. H. For any construction project financed by the Arizona health care cost containment system administration pursuant to this section, the administration shall notify a city, town, county or tribal government that a project is planned for its jurisdiction and, before proceeding, shall seek comment from the governing body of the city, town, county or tribal government or an official authorized by the governing body of the city, town, county or tribal government. The Arizona health care cost containment system administration shall not interfere with or attempt to override the local jurisdiction's planning, zoning or land use regulations. END_STATUTE

Sec. 4. Section 42-1116, Arizona Revised Statutes, is amended to read:

START_STATUTE42-1116. Disposition of tax revenues

A. The department of revenue shall promptly deposit, pursuant to sections 35‑146 and 35‑147, all monies it collects from the taxes administered pursuant to this article except the telecommunication services excise tax, separately accounting for each type of tax and each tax classification within each type of tax. At the same time the department of revenue shall also furnish copies of the transmittal schedules to the director of the department of administration.

B. Except as provided by subsection C of this section, the department shall deposit all monies and remittances received under this section to the credit of the following specific funds and accounts:

1. Amounts sufficient to meet the requirements for tax refunds to the tax refund account established by section 42‑1117.

2. Amounts sufficient to meet the requirements of urban revenue sharing to the urban revenue sharing fund established by section 43‑206.

3. Amounts collected pursuant to chapter 5, articles 1 and 5 of this title to the transaction privilege and severance tax clearing account established by section 42‑5029.

4. Amounts sufficient to meet the requirements of section 42‑3104 to the corrections fund.

5. Amounts sufficient to meet the requirements of section 49‑282, subsection B relating to the water quality assurance revolving fund.

6. Amounts collected from nonresident sales of real property located in this state as follows:

(a) $5,000,000 to the state general fund. the legislature may annually appropriate an amount not to exceed one percent of the monies collected from nonresident sales of real property in this state to the department for administrative costs in providing services relating to nonresident real estate sales.

(b) After the distribution made pursuant to subdivision (a) of this paragraph, $2,000,000 to the seriously mentally ill housing trust fund established by section 41‑3955.01.

(c) After the distributions made pursuant to subdivisions (a) and (b) of this paragraph, any remaining monies to the housing trust fund established by section 41‑3955.

6. 7. All remaining monies to the state general fund.

C. From the monies and remittances received under this section, each month beginning July 2001 the state treasurer shall transmit to the tourism and sports authority, established by title 5, chapter 8, for deposit in its facility revenue clearing account established by section 5‑834 one‑twelfth of the amount reported by the department pursuant to section 43‑209. END_STATUTE

Sec. 5. Title 43, chapter 3, article 1, Arizona Revised Statutes, is amended by adding section 43-312, to read:

START_STATUTE43-312. Information return of sales; nonresident real estate transactions

A. A person licensed under section 6‑813 to conduct escrow business for the purchase and sale of real property located in this state shall file an information return of sales of real property located in this state that are reported pursuant to federal reporting requirements under section 6045(e) of the internal revenue code.

B. The information return required by this section shall be filed on or before the thirty‑first day of March with respect to sales of real property located in this state that is closed on or before December 31 of the preceding calendar year.

C. The information return shall be filed using the same form and format of the return filed with the internal revenue service under section 6045(e) of the internal revenue code.END_STATUTE

Sec. 6. Seriously mentally ill residential setting; program study

The Arizona health care cost containment system administration shall issue a request for proposals for a third‑party entity to conduct a program study that measures the outcomes of seriously mentally ill residents in each setting described by section 41-3955.01, subsection D, Arizona Revised Statutes, as amended by this act, for a twelve-month period. The program study shall include an analysis of costs and effectiveness of the services provided in each setting that takes into consideration the encounters of the seriously mentally ill residents related to inpatient care, emergency department visits, hospitalization, civil commitment proceedings, incarceration, homelessness, employment, community engagement, encounters with police and fire personnel, including petitioning and contact with crisis centers, citation in lieu of detention, jail bookings and other contact with first responders.

Sec. 7. Department of health services; rules; exemption from rulemaking

A. On or before January 1, 2020, the director of the department of health services shall adopt rules to allow a behavioral health residential facility to be a secure facility if the behavioral health residential facility is the least restrictive environment that meets the resident's treatment needs and the resident is an incapacitated person as defined in section 14-5101, Arizona Revised Statutes, and is either ordered by the court or part of a post-conviction or pretrial diversion agreement to a secure behavioral health residential facility. The director may use the assisted living facility rules as guidelines in determining standards for a secure residential facility.

B. The department of health services is exempt from the rulemaking requirements of title 41, chapter 6, Arizona Revised Statutes, for one year after the effective date of this act. The department shall provide the public an opportunity to comment on the proposed rules.

Sec. 8. Effective date

This act is effective for taxable years beginning from and after December 31, 2019.