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ARIZONA STATE SENATE
Fifty-Fourth Legislature, First Regular Session
AMENDED
homeless youth; families; funding sources
Purpose
Distributes monies received from non-resident real estate sales to the state General Fund (GF), the Seriously Mentally Ill Housing Trust Fund (SMIHTF) and the Housing Trust Fund (HTF) for homeless youth and families.
Background
The HTF was established to pay expenses related to the provision of affordable housing opportunities for low-income and moderate-income families. The appropriated portion pays for administrative expenses and may not exceed 10 percent of HTF monies. The non-appropriated portion of the HTF is used for the operation, construction and renovation of housing facilities for low-income households.
The HTF receives a $2.5 million annual unclaimed property deposit after the first $2 million in unclaimed property revenues are distributed to the Department of Health Services (DHS) SMIHTF. The HTF also receives monies from loan repayments and interest from the State Treasurer. Fees are also redirected from the Arizona Industrial Development Authority's Single‑family Mortgage Program to the HTF.
There is a positive anticipated fiscal impact to the state GF associated with this legislation.
Provisions
1. Requires that monies collected from nonresident sales of real property located in Arizona be distributed as follows:
a) $5 million to the state GF;
b) $2 million to the SMIHTF, after the distribution to the state GF; and
c) any monies remaining after the above distributions to the HTF.
2. Includes secure behavioral health residential facilities in the healthcare institutions that the Director of DHS may classify.
3. Includes in the monies that make up the HTF and the SMIHTF, tax collections from nonresident sales of real property located in Arizona.
4. Requires that up to $10 million of the distribution to the HTF from nonresident sales of real property be used exclusively for capital projects, housing, housing rental assistance and services for homeless youth and families.
5. Requires that these monies supplement, and not supplant, homeless youth and family funding from other potential sources.
6. Allows monies in excess of $10 million deposited in the HTF to be used by the Arizona Department of Housing for other projects and programs.
7. Allows SMIHTF monies to be spent for seriously mentally ill (SMI) persons in the following settings:
a) a
community living home for persons who hold their own leases and that has
embedded
in-home support to meet individualized needs and up to 24 hours of support and
supervision as indicated by the person's individual treatment plan; and
b) a behavioral health residential facility that is licensed by DHS and provides in-house wraparound services and secure 24-hour on-site support, treatment and supervision by staff with behavioral health training.
8. Requires a licensed escrow agent to file with the Arizona Department of Revenue (ADOR) an information return of sales of real property located in Arizona that are reported pursuant to federal reporting requirements under the Internal Revenue Code (IRC).
9. Requires the information return to be filed on or before the 31st day of March with respect to sale of real property that is closed on or before December 31 of the preceding calendar year.
10. Requires the information return to be filed using the same form and format of the form required by the IRC.
11. Requires the Director of the Arizona Health Care Cost Containment System (AHCCCS) to send its annual report on the status of the SMIHTF to the Secretary of State, in addition to existing distributions.
12. Requires AHCCCS to issue a request for proposals for a third-party entity to conduct a program study that measures the outcomes of SMI residents in each setting, for a 12‑month period. Includes requirements of the program study.
13. Requires the Director of DHS, on or before January 1, 2020, to 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, is an incapacitated person, and is either ordered by the court or part of a post-conviction or pretrial diversion agreement.
14. Exempts DHS from rulemaking requirements.
15. Requires DHS to provide the public an opportunity to comment on proposed rules.
16. Makes technical and conforming changes.
17. Becomes effective for taxable years beginning on January 1, 2020.
Amendments Adopted by Committee
· Changes the mechanism for collection of monies by ADOR to a reporting requirement.
Amendments Adopted by Committee of the Whole
1. Allows tax collections from nonresident sales to be deposited to the SMIHTF for community living homes for persons who hold their own leases and wraparound facilities that are licensed by DHS and provide secure 24-hour on-site support.
2. Specifies that amounts collected from nonresident sales shall be distributed as follows:
a) $5 million to the state GF (allows an appropriation of not to exceed one percent of the monies to ADOR for administrative costs);
b) $2 million to the SMIHTF; and
c) any remaining monies to the HTF.
3. Strikes previous language requiring withholding of funds by ADOR.
4. Requires the escrow agent to file an information return of sales before March 31 using the same form and format as Internal Revenue Service requirements.
5. Requires AHCCCS to issue a request for proposals for a third-party entity to conduct a program study that measures the outcomes of SMI residents in each setting. The program study shall include a cost-benefit analysis of the services provided in each setting.
6. Requires the Director of DHS to adopt rules to allow a behavioral health residential facility to be a secure facility if the facility is the least restrictive environment that meets the resident’s treatment needs.
7. Exempts DHS from rulemaking requirements for one year.
8. Requires DHS to provide the public an opportunity to comment on the proposed rules.
Senate Action
APPROP 2/26/19 DPA 8-0-1
3rd Read 3/14/19 27-3-0
Prepared by Senate Research
March 15, 2019
CS/kja