HB2755 - 541R

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

Section 1. Title 8, chapter 4, article 4, Arizona Revised Statutes, is amended by adding section 8-530.02, to read:

START_STATUTE8-530.02. Child welfare; joint annual report

On or before February 1 each year, the Arizona early childhood development and health board and the department shall jointly report to the joint legislative budget committee on their collaborative efforts to address child welfare issues of common concern during the prior year. The report shall include information about the level of coordination among the department, the Arizona early childhood development and health board and community groups to promote the well‑being of children and families that are identified in reports of abuse or neglect. END_STATUTE

Sec. 2. Section 25-528, Arizona Revised Statutes, is amended to read:

START_STATUTE25-528. Title IV-D recipients; fee

A. If a recipient of title IV‑D services receives at least five hundred dollars $550 of support in a federal fiscal year and the recipient has never received assistance under a state or tribal title IV‑A program, the department shall charge an annual fee of twenty‑five dollars as prescribed in 42 United States Code section 654(6)(B)(ii), in effect on January 1, 2019, to the recipient of title IV‑D services. The department shall retain the fee from future collections of support once the threshold of five hundred dollars $550 has been met. If, after the threshold of five hundred dollars $550 has been met, no further support collections are received or less than twenty‑five dollars $35 is received, the department may charge the fee to the recipient of services after notice advising the recipient of the deadline for payment of the fee. If the recipient does not pay the fee by the deadline, the department may retain the fee from future collections of support.

B. Notwithstanding subsection A of this section, if a foreign country has requested enforcement of a support order in any title IV‑D case, the department shall charge the annual fee of twenty-five dollars prescribed in subsection A of this section to the obligor.

C. The department shall transmit to the federal government its portion of each fee withheld pursuant to subsections A and B of this section and shall deposit, pursuant to sections 35‑146 and 35‑147, the remainder in a child support enforcement administration fund. END_STATUTE

Sec. 3. Section 36-2960, Arizona Revised Statutes, is amended to read:

START_STATUTE36-2960. Persons with developmental disabilities; cost‑effectiveness study rate; report

A. The department shall annually determine the cost‑effective cost‑effectiveness study rate for persons who are receiving developmental disability services pursuant to chapter 5.1 of this title and provide that rate to the Arizona health care cost containment system administration. On or before June 15 of each year, the department shall report to the joint legislative budget committee the cost‑effective cost‑effectiveness study rate for persons receiving developmental disability services that was determined for the subsequent fiscal year.

B. The legislature shall annually adjust, according to the average annual percentage change in the metropolitan Phoenix-Mesa consumer price index published by the United States department of labor, bureau of labor statistics, the appropriation made in the previous fiscal year to the department of economic security to provide services for persons with developmental disabilities whose service costs exceed the current cost‑effective study rate. END_STATUTE

Sec. 4. 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 monies from unclaimed property deposited in the fund pursuant to section 44‑313, monies transferred pursuant to section 35‑751 and 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. Except as provided in subsection D of this section, 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. Fund monies may be spent on constructing or renovating facilities and on housing assistance, including support services, for persons who have been determined to be seriously mentally ill and to be chronically resistant to treatment.

D. E. For the purposes of subsection C of this section, 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. F. 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 also include the number of individuals who benefit from housing assistance pursuant to subsection D of this section. 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.

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

G. H. 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. I. 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. 5. 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 after a time period specified in rule by the department once the family income exceeds one hundred sixty‑five percent of the federal poverty level but remains below eighty‑five percent of the state median income. If the family income exceeds eighty‑five percent of the state median income, child care assistance shall cease on notification by the department.

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 after a time period specified in rule by the department once the family income exceeds one hundred sixty‑five percent of the federal poverty level but remains below eighty‑five percent of the state median income. If the family income exceeds eighty‑five percent of the state median income, child care assistance shall cease on notification by the department.

D. The department may provide child care assistance to support eligible families with incomes of one hundred sixty‑five percent or less of the federal poverty level at the time of application to accept or maintain employment. Child care assistance shall cease after a time period specified in rule by the department once the family income exceeds one hundred sixty‑five percent of the federal poverty level but remains below eighty‑five percent of the state median income. If the family income exceeds eighty‑five percent of the state median income, child care assistance shall cease on notification by the department. Priority for this child care assistance shall be given to families with incomes of one hundred percent or less of the federal poverty level.

E. The department may provide child care assistance to families referred by the department of child safety and to children in foster care pursuant to title 8, chapter 4 to support child protection.

F. The department may provide child care assistance to special circumstance families whose incomes are one hundred sixty‑five percent or less of the federal poverty level at the time of application and who are unable to provide child care for a portion of a twenty‑four hour 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 court‑ordered community restitution. Child care assistance shall cease after a time period specified in rule by the department once the family income exceeds one hundred sixty‑five percent of the federal poverty level but remains below eighty‑five percent of the state median income. If the family income exceeds eighty‑five percent of the state median income, child care assistance shall cease on notification by the department. Priority for this child care assistance shall be given to families with incomes of one hundred percent or less of the federal poverty level.

G. Notwithstanding any other provision of this section, the department 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 assistance within fifteen days after implementing the change.

G. H. 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. I. The department may provide supplemental child care assistance for department approved 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 the 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. J. 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 percent of the federal poverty level and continue with each successive ten percent increase in the federal poverty level until the maximum allowable federal poverty level of one hundred sixty‑five percent. Priority shall be given regardless of time spent on the waiting list.

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

1. Each child is limited to no not 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 not 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.

L. M. The department shall review each case no not more than once a year to evaluate eligibility for child care assistance.

M. N. The department shall report on December 31 and June 30 of each year to the joint legislative budget committee the total number of families who applied for child care assistance and the total number of families who were denied assistance under this section because the parents, legal guardians or caretaker relatives who applied for assistance were not citizens or legal residents of the United States or were not otherwise lawfully present in the United States.

N. O. This section shall be enforced without regard to race, religion, gender, ethnicity or national origin.

O. P. 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. 6. Department of economic security; special administration fund; fiscal year 2019-2020

Notwithstanding section 23‑706, Arizona Revised Statutes, the department of economic security may use the amount appropriated to the department in fiscal year 2019‑2020 from the special administration fund established by section 23‑705, Arizona Revised Statutes, for domestic violence prevention and cost‑effectiveness study client services.

Sec. 7. Department of economic security; drug testing; TANF cash benefits recipients

During fiscal year 2019‑2020, the department of economic security shall screen and test each adult recipient who is otherwise eligible for temporary assistance for needy families cash benefits and who the department has reasonable cause to believe engages in the illegal use of controlled substances. Any recipient who is found to have tested positive for the use of a controlled substance that was not prescribed for the recipient by a licensed health care provider is ineligible to receive benefits for a period of one year.