SB1710 - 561R

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

Section 1. Section 3-607, Arizona Revised Statutes, is amended to read:

START_STATUTE3-607. Annual licenses; inspections; revocation; fees; exceptions

A. A person shall not operate a milk distributing plant or a manufacturing milk processing plant, engage in the business of producer-distributor or producer-manufacturer, or engage in the business of selling at wholesale milk or dairy products, or both, without a license. This section does not require:

1. An Arizona dairy farm producing raw milk for sale to be processed to secure a license to operate.

2. A retailer or wholesaler to secure a license from the division to convert a pasteurized mix into frozen dessert.

3. A food establishment regulated by the department of health services to secure a license from the division to manufacture frozen desserts using pasteurized milk or pasteurized milk-based products if the frozen dessert is manufactured and sold at the same food establishment for consumption on the premises and the food establishment has submitted a plan for approval to the regulatory authority under title 36 demonstrating that the manufacturing process complies with the rules adopted pursuant to section 36-136, subsection I H, including pasteurization as defined in rule. The division or the regulatory authority under title 36 may require a food establishment that manufactures frozen desserts using pasteurized milk or pasteurized milk-based products to provide samples of the frozen dessert to verify that the frozen dessert is pasteurized.

B. An application for a license shall be in writing in the form the associate director prescribes and shall be accompanied by the required filing fee. On receipt of an application, the associate director or an authorized representative shall examine the premises in which the applicant proposes to do business, and if it appears that the applicant has complied with all provisions of law, the license shall be issued.

C. After issuance of the first annual license, a license may be issued on inspection of the premises and payment not later than February 1 of each year of the required fee. The inspection shall be made by the associate director or an authorized representative to determine whether the premises are maintained in compliance with law. A written report of the inspection shall be filed in the division office. An annual license is valid for the period beginning January 1 and ending December 31 of each year, and a license that is not renewed on or before February 1 of each year is void.

D. An application for a license to produce grade A milk for human consumption shall be made in the manner prescribed by subsections A and B of this section. The license shall be valid until revoked for failure to comply with the provisions of this article relating to the production of milk. The associate director may suspend a license pending correction of deficiencies that violate this article. If the identified deficiencies are not corrected within a reasonable time after the licensee is notified, the associate director may proceed to revoke the license. Notice of a pending revocation shall be in writing, stating the cause, and setting a time during which the licensee may correct the cause for revocation. If the cause for revocation is not corrected within the time specified, the associate director, after a hearing and three days' notice of intention, may revoke the license. The director shall review the associate director's action on request of any person adversely affected by the action. A person holding a permit issued by a governmental agency operating outside of this state whose requirements are substantially the same as the requirements of this state shall be deemed to have a license meeting the requirements of this article, provided the facilities have first been inspected and approved also by a resident Arizona inspector, if in the opinion of the associate director such an inspection should be made. Any expense incurred for such an inspection shall be at the expense of the licensee.

E. Fees shall be paid as follows:

1. For a license or renewal of a license to operate a milk distributing plant or business, $50.

2. For a license or renewal of a license to operate a manufacturing milk processing plant, $50.

3. For a license or renewal of a license to engage in the business of producer-distributor or producer-manufacturer, $25.

4. For a license or renewal of a license to engage in the business of selling at wholesale milk or dairy products, or both, $25.

F. The associate director or dairy inspectors are authorized to inspect premises affected by this article and located outside of this state, and they shall receive subsistence and travel expenses in the amount provided for state officers, which shall be paid to the inspector by the owner of the premises inspected.

G. This section does not apply to a producer of raw milk.END_STATUTE

Sec. 2. Section 11-812, Arizona Revised Statutes, is amended to read:

START_STATUTE11-812. Restriction on regulation; exceptions; aggregate mining regulation; definitions

A. Nothing contained in Any ordinance authorized by this chapter shall not:

1. Affect existing uses of property or the right to its continued use or the reasonable repair or alteration of the property for the purpose for which used at the time the ordinance affecting the property takes effect.

2. Prevent, restrict or otherwise regulate the use or occupation of land or improvements for railroad, mining, metallurgical, grazing or general agricultural purposes, if the tract concerned is five or more contiguous commercial acres. For the purposes of this paragraph:

(a) "General agricultural purposes" includes agritourism as defined in section 3-111, but does not include any of the following:

(i) Food establishments that are under the authority of the department of health services pursuant to section 36-136, subsection I H and that are associated with an agritourism business.

(ii) Rodeo events that are open to the general public and that sell tickets for admission. For the purposes of this item, rodeo events do not include generally accepted agricultural practices associated with livestock and equine operations.

(iii) The cultivation of cannabis as defined in section 13-3401 or marijuana as defined in section 13-3401 or 36-2801.

(b) "Mining" has the same meaning prescribed in section 27-301.

3. Prevent, restrict or otherwise regulate the use or occupation of land or improvements for agricultural composting, if the tract is five or more contiguous commercial acres. An agricultural composting operation shall notify in writing the board of supervisors and the nearest fire department of the location of the composting operation. If the nearest fire department is located in a city, town or fire district where the agricultural composting is not located, the agricultural composting operation shall also notify in writing the fire district in which the operation is located. Agricultural composting is subject to sections 3-112 and 49-141. For the purposes of this paragraph, "agricultural composting" has the same meaning prescribed in section 9-462.01, subsection G.

4. Prevent, restrict or otherwise regulate the otherwise lawful discharge of a firearm or air gun or use of archery equipment on a private lot or parcel of land that is not open to the public on a commercial or membership basis.

B. A nonconforming business use within a district may expand if the expansion does not exceed one hundred per cent percent of the area of the original business.

C. For the purposes of subsection A, paragraph 2 of this section, mining does not include aggregate mining operations in an aggregate mining operations zoning district established pursuant to this section. The board of supervisors of any county with a population of more than two million persons shall designate and establish the boundaries of an aggregate mining operations zoning district on the petition of at least one hundred persons who reside within one-half mile of an existing aggregate mining operation. In addition, the board of supervisors of any county may establish, in its discretion and on the board's initiative, one or more aggregate mining operations zoning districts. Aggregate mining operations zoning districts may only be located in areas that are inventoried and mapped as areas of known reserves or in areas with existing aggregate mining operations. Subject to subsections E and F of this section, a county and the state mine inspector may jointly adopt, as internal administrative regulations, reasonable aggregate mining operations zoning district standards limited to permitted uses, procedures for approval of property development plans and site development standards for dust control, height regulations, setbacks, days and hours of operation, off-street parking, screening, noise, vibration and air pollution control, signs, roadway access lanes, arterial highway protection and property reclamation for which aggregate mining operations are not otherwise subject to federal, state or local regulation or a governmental contractual obligation. Regulations jointly adopted pursuant to this subsection by the county and the state mine inspector shall not prohibit the activities included in the definition of mine pursuant to section 27-301, paragraph 8 or duplicate, conflict with or be more stringent than applicable federal, state or local laws.

D. The board of supervisors of any county that establishes an aggregate mining operations zoning district shall appoint an aggregate mining operations recommendation committee for the district. The committee consists of not more than seven operators, or representatives of operators, of active aggregate mining operations in any district within the county and an equal number of private citizens, who are not operators, who are not employed by operators and who do not represent operators, residing within three miles of the boundaries of aggregate mining operations or a proposed aggregate mining operation in the district for which the committee is established. The initial members appointed to the committee shall be deemed the primary members, and the board of supervisors shall appoint not more than five alternate members who represent operators and shall appoint not more than five alternate members who are private citizens. Alternate members may serve at meetings of the committee when a primary member is unable to attend. An aggregate mining operator may serve on more than one committee in the same county. The board of supervisors shall determine the length of terms of members of the committee and shall stagger the initial appointments so that not all members' terms expire at the same time. Members of the committee who no longer qualify for membership as provided by this subsection are subject to removal and replacement by the board of supervisors. The committee shall elect a member who is an aggregate mining operator to serve as chairperson for the first year in which the committee is created. For each year thereafter, the chairperson shall be elected by the members of the committee with a member who is a private citizen and a member who is an aggregate mining operator serving as chairperson in alternate years. The committee is subject to the open meeting requirements of title 38, chapter 3, article 3.1.

E. Within ninety days after an aggregate mining operations recommendation committee is established, the committee shall notify all existing aggregate mining operators in the district of the application of this section and title 27, chapter 3, article 6 to the aggregate mining operation. In addition, the committee shall:

1. By a majority vote of all members, make recommendations to the board of supervisors for aggregate mining zoning districts and administrative regulations as provided in this section. The board of supervisors may adopt or reject the recommendations but may not make any modifications to the recommendations unless the modification is approved by a majority of the members of the recommendation committee.

2. Serve as a forum for mediation of disputes between members of the public and aggregate mining owners or operators. If the committee is unable to resolve a dispute, the committee shall transmit the matter to the state mine inspector, with written findings and recommendations, for further action.

3. Hear written complaints filed with the state mine inspector regarding alleged material deviations from approved community notices for aggregate mining operations and make written recommendations to the state mine inspector pursuant to section 27-446.

F. Any administrative regulations adopted by a board of supervisors pursuant to this section are not effective until the regulations are approved by the state mine inspector. The inspector may disapprove the administrative regulations adopted by the board of supervisors only if they duplicate, conflict with or are more stringent than applicable federal, state or local laws, rules or regulations. If the inspector disapproves the administrative regulations, the inspector must provide written reasons for the disapproval. The inspector shall not make any modification to the administrative regulations as adopted by the board of supervisors unless the modification is approved by a majority of the members of the board of supervisors.

G. A person or entity is subject to this chapter if the use or occupation of land or improvements by the person or entity consists of or includes changing, remanufacturing or treating human sewage or sludge for distribution or resale. These activities are not exempt from this chapter under subsection A, paragraph 2 of this section.

H. A county shall not require as a condition for a permit or for any approval, or otherwise cause, an owner or possessor of property to waive the right to continue an existing nonconforming outdoor advertising use or structure without acquiring the use or structure by purchase or condemnation and paying just compensation unless the county, at its option, allows the use or structure to be relocated to a comparable site in the county with the same or a similar zoning classification, or to another site in the county acceptable to both the county and the owner of the use or structure, and the use or structure is relocated to the other site. The county shall pay for relocating the outdoor advertising use or structure including the cost of removing and constructing the new use or structure that is at least the same size and height. This subsection does not apply to county rezoning of property at the request of the property owner to a more intensive zoning district.

I. For the purposes of this section:

1. "Aggregate" has the same meaning prescribed in section 27-441.

2. "Aggregate mining" has the same meaning prescribed in section 27-441.

3. "Aggregate mining operation" means property that is owned, operated or managed by the same person for aggregate mining.

4. "Operators" means persons who are actively engaged in aggregate mining operations within the zoning district or proposed zoning district and who have given notice to the state mine inspector pursuant to section 27-303. END_STATUTE

Sec. 3. Section 23-618.01, Arizona Revised Statutes, is amended to read:

START_STATUTE23-618.01. Definition of hospital

"Hospital" means an institution which that has been licensed, certified, or approved by the Arizona state department of health services as a hospital. END_STATUTE

Sec. 4. Repeal

Section 36-103.01, Arizona Revised Statutes, is repealed.

Sec. 5. Section 36-132, Arizona Revised Statutes, is amended to read:

START_STATUTE36-132. Department of health services; functions; contracts

A. The department, in addition to other powers and duties vested in it by law, shall:

1. Protect the health of the people of the state.

2. Promote the development, maintenance, efficiency and effectiveness of local health departments or districts of sufficient population and area that they can be sustained with reasonable economy and efficient administration, provide technical consultation and assistance to local health departments or districts, provide financial assistance to local health departments or districts and services that meet minimum standards of personnel and performance and in accordance with a plan and budget submitted by the local health department or districts to the department for approval, and recommend the qualifications of all personnel.

3. Collect, preserve, tabulate and interpret all information required by law in reference to births, deaths and all vital facts, and obtain, collect and preserve information relating to the health of the people of this state and the prevention of diseases as may be useful in the discharge of functions of the department not in conflict with chapter 3 of this title and sections 36-693, 36-694 and 39-122.

4. Operate such sanitariums, hospitals or other facilities assigned to the department by law or by the governor.

5. Conduct a statewide program of health education relevant to the powers and duties of the department, prepare educational materials and disseminate information as to conditions affecting health, including basic information for the promotion of to promote good health on the part of individuals and communities, and prepare and disseminate technical information concerning public health to the health professions, local health officials and hospitals. In cooperation with the department of education, the department of health services shall prepare and disseminate materials and give technical assistance for the purpose of education of educating children in hygiene, sanitation and personal and public health, and provide consultation and assistance in community organization to counties, communities and groups of people.

6. Administer or supervise a program of public health nursing, prescribe the minimum qualifications of all public health nurses engaged in official public health work, and encourage and aid in coordinating local public health nursing services.

7. Encourage and aid in coordinating local programs concerning control of preventable diseases in accordance with statewide plans that shall be formulated by the department.

8. Encourage and aid in coordinating local programs concerning maternal and child health, including midwifery, antepartum and postpartum care, infant and preschool health and the health of schoolchildren, including special fields such as the prevention of blindness and conservation of sight and hearing.

9. Encourage and aid in the coordination of coordinating local programs concerning nutrition of the people of this state.

10. Encourage, administer and provide dental health care services and aid in coordinating local programs concerning dental public health, in cooperation with the Arizona dental association. The department may bill and receive payment for costs associated with providing dental health care services and shall deposit the monies in the oral health fund established by section 36-138.

11. Establish and maintain adequate serological, bacteriological, parasitological, entomological and chemical laboratories with qualified assistants and facilities necessary for routine examinations and analyses and for investigations and research in matters affecting public health.

12. Supervise, inspect and enforce the rules concerning the operation of public bathing places and public and semipublic swimming pools adopted pursuant to section 36-136, subsection I H, paragraph 10.

13. Take all actions necessary or appropriate to ensure that bottled water sold to the public and water used to process, store, handle, serve and transport food and drink are free from filth, disease-causing substances and organisms and unwholesome, poisonous, deleterious or other foreign substances. All state agencies and local health agencies involved with water quality shall provide to the department any assistance requested by the director to ensure that this paragraph is effectuated.

14. Enforce the state food, caustic alkali and acid laws in accordance with chapter 2, article 2 of this title, chapter 8, article 1 of this title and chapter 9, article 4 of this title, and collaborate in the enforcement of enforcing the federal food, drug, and cosmetic act (52 Stat. 1040; 21 United States Code sections 1 through 905).

15. Recruit and train personnel for state, local and district health departments.

16. Conduct continuing evaluations of state, local and district public health programs, study and appraise state health problems and develop broad plans for use by the department and for recommendation to other agencies, professions and local health departments for the best solution of these problems.

17. License and regulate health care institutions according to chapter 4 of this title.

18. Issue or direct the issuance of licenses and permits required by law.

19. Participate in the state civil defense program and develop the necessary organization and facilities to meet wartime or other disasters.

20. Subject to the availability of monies, develop and administer programs in perinatal health care, including:

(a) Screening in early pregnancy for detecting high-risk conditions.

(b) Comprehensive prenatal health care.

(d) Perinatal consultation, including transportation of the pregnant woman to a perinatal care center when medically indicated.

(e) Perinatal education oriented toward professionals and consumers, focusing on early detection and adequate intervention to avert premature labor and delivery.

21. License and regulate the health and safety of group homes for persons with developmental disabilities. The department shall issue a license to an accredited facility for a period of the accreditation, except that no a licensing period shall not be longer than three years. The department is authorized to conduct an inspection of an accredited facility to ensure that the facility meets health and safety licensure standards. The results of the accreditation survey shall be public information. A copy of the final accreditation report shall be filed with the department of health services. For the purposes of this paragraph, "accredited" means accredited by a nationally recognized accreditation organization.

B. The department may accept from the state or federal government, or any agency of the state or federal government, and from private donors, trusts, foundations or eleemosynary corporations or organizations grants or donations for or in aid of the construction or maintenance of any program, project, research or facility authorized by this title, or in aid of the extension or enforcement of any program, project or facility authorized, regulated or prohibited by this title, and enter into contracts with the federal government, or an agency of the federal government, and with private donors, trusts, foundations or eleemosynary corporations or organizations, to carry out such purposes. All monies made available under this section are special project grants. The department may also expend these monies to further applicable scientific research within this state.

C. The department, in establishing fees authorized by this section, shall comply with title 41, chapter 6. The department shall not set a fee at more than the department's cost of providing the service for which the fee is charged. State agencies are exempt from all fees imposed pursuant to this section.

D. The department may enter into contracts with organizations that perform nonrenal organ transplant operations and organizations that primarily assist in the management of end-stage renal disease and related problems to provide, as payors of last resort, prescription medications necessary to supplement treatment and transportation to and from treatment facilities. The contracts may provide for department payment of administrative costs it specifically authorizes. END_STATUTE

Sec. 6. Section 36-136, Arizona Revised Statutes, is amended to read:

START_STATUTE36-136. Powers and duties of director; compensation of personnel; rules; definitions

A. The director shall:

1. Be the executive officer of the department of health services and the state registrar of vital statistics but shall not receive compensation for services as registrar.

2. Perform all duties necessary to carry out the functions and responsibilities of the department.

3. Prescribe the organization of the department. The director shall appoint or remove personnel as necessary for the efficient work of the department and shall prescribe the duties of all personnel. The director may abolish any office or position in the department that the director believes is unnecessary.

4. Administer and enforce the laws relating to health and sanitation and the rules of the department.

5. Provide for the examination of any premises if the director has reasonable cause to believe that on the premises there exists a violation of any health law or rule of this state.

6. Exercise general supervision over all matters relating to sanitation and health throughout this state. When in the opinion of the director it is necessary or advisable, a sanitary survey of the whole or of any part of this state shall be made. The director may enter, examine and survey any source and means of water supply, sewage disposal plant, sewerage system, prison, public or private place of detention, asylum, hospital, school, public building, private institution, factory, workshop, tenement, public washroom, public restroom, public toilet and toilet facility, public eating room and restaurant, dairy, milk plant or food manufacturing or processing plant, and any premises in which the director has reason to believe there exists a violation of any health law or rule of this state that the director has the duty to administer.

7. Prepare sanitary and public health rules.

8. Perform other duties prescribed by law.

B. If the director has reasonable cause to believe that there exists a violation of any health law or rule of this state, the director may inspect any person or property in transportation through this state, and any car, boat, train, trailer, airplane or other vehicle in which that person or property is transported, and may enforce detention or disinfection as reasonably necessary for the public health if there exists a violation of any health law or rule.

C. The director, after consultation with the department of administration, may take all necessary steps to enhance the highest and best use of the state hospital property, including contracting with third parties to provide services, entering into short-term lease agreements with third parties to occupy or renovate existing buildings and entering into long-term lease agreements to develop the land and buildings. The director shall deposit any monies collected from contracts and lease agreements entered into pursuant to this subsection in the Arizona state hospital charitable trust fund established by section 36-218. At least thirty days before issuing a request for proposals pursuant to this subsection, the department of health services shall hold a public hearing to receive community and provider input regarding the highest and best use of the state hospital property related to the request for proposals. The department shall report to the joint committee on capital review on the terms, conditions and purpose of any lease or sublease agreement entered into pursuant to this subsection relating to state hospital lands or buildings or the disposition of real property pursuant to this subsection, including state hospital lands or buildings, and the fiscal impact on the department and any revenues generated by the agreement. Any lease or sublease agreement entered into pursuant to this subsection relating to state hospital lands or buildings or the disposition of real property pursuant to this subsection, including state hospital lands or buildings, must be reviewed by the joint committee on capital review.

D. C. The director may deputize, in writing, any qualified officer or employee in the department to do or perform on the director's behalf any act the director is by law empowered to do or charged with the responsibility of doing.

E. D. The director may delegate to a local health department, county environmental department or public health services district any functions, powers or duties that the director believes can be competently, efficiently and properly performed by the local health department, county environmental department or public health services district if:

1. The director or superintendent of the local health agency department, environmental agency department or public health services district is willing to accept the delegation and agrees to perform or exercise the functions, powers and duties conferred in accordance with the standards of performance established by the director of the department of health services.

2. Monies appropriated or otherwise made available to the department for distribution to or division among counties or public health services districts for local health work may be allocated or reallocated in a manner designed to ensure the accomplishment of recognized local public health activities and delegated functions, powers and duties in accordance with applicable standards of performance. If in the director's opinion there is cause, the director may terminate all or a part of any delegation and may reallocate all or a part of any funds monies that may have been conditioned on the further performance of the functions, powers or duties conferred.

F. E. The compensation of all personnel shall be as determined pursuant to section 38-611.

G. F. The director may make and amend rules necessary for the proper administration and enforcement of the laws relating to the public health.

H. G. Notwithstanding subsection I H, paragraph 1 of this section, the director may define and prescribe emergency measures for detecting, reporting, preventing and controlling communicable or infectious diseases or conditions if the director has reasonable cause to believe that a serious threat to public health and welfare exists. Emergency measures are effective for not longer than eighteen months.

I. H. The director, by rule, shall:

1. Define and prescribe reasonably necessary measures for detecting, reporting, preventing and controlling communicable and preventable diseases. The rules shall declare certain diseases reportable. The rules shall prescribe measures, including isolation or quarantine, that are reasonably required to prevent the occurrence of, or to seek early detection and alleviation of, disability, insofar as possible, from communicable or preventable diseases. The rules shall include reasonably necessary measures to control animal diseases that are transmittable to humans.

2. Define and prescribe reasonably necessary measures, in addition to those prescribed by law, regarding the preparation, embalming, cremation, interment, disinterment and transportation of dead human bodies and the conduct of funerals, relating to and restricted to communicable diseases and regarding the removal, transportation, cremation, interment or disinterment of any dead human body.

3. Define and prescribe reasonably necessary procedures that are not inconsistent with law in regard to the use and accessibility of vital records, delayed birth registration and the completion, change and amendment of vital records.

4. Except as relating to the beneficial use of wildlife meat by public institutions and charitable organizations pursuant to title 17, prescribe reasonably necessary measures to ensure that all food or drink, including meat and meat products and milk and milk products sold at the retail level, provided for human consumption is free from unwholesome, poisonous or other foreign substances and filth, insects or disease-causing organisms. The rules shall prescribe reasonably necessary measures governing the production, processing, labeling, storing, handling, serving and transportation of these products. The rules shall prescribe minimum standards for the sanitary facilities and conditions that shall be maintained in any warehouse, restaurant or other premises, except a meat packing meatpacking plant, slaughterhouse, wholesale meat processing plant, dairy product manufacturing plant or trade product manufacturing plant. The rules shall prescribe minimum standards for any truck or other vehicle in which food or drink is produced, processed, stored, handled, served or transported. The rules shall provide for the inspection and licensing of premises and vehicles so used, and for abatement as public nuisances of any premises or vehicles that do not comply with the rules and minimum standards. The rules shall provide an exemption relating to food or drink that is:

(a) Served at a noncommercial social event such as a potluck.

(b) Prepared at a cooking school that is conducted in an owner-occupied home.

(c) Not potentially hazardous and prepared in a kitchen of a private home for occasional sale or distribution for noncommercial purposes.

(d) Prepared or served at an employee-conducted function that lasts less than four hours and is not regularly scheduled, such as an employee recognition, an employee fundraising or an employee social event.

(e) Offered at a child care facility and limited to commercially prepackaged food that is not potentially hazardous and whole fruits and vegetables that are washed and cut on-site for immediate consumption.

(f) Offered at locations that sell only commercially prepackaged food or drink that is not potentially hazardous.

(g) A cottage food product that is not potentially hazardous or a time or temperature control for safety food and that is prepared in a kitchen of a private home for commercial purposes, including fruit jams and jellies, dry mixes made with ingredients from approved sources, honey, dry pasta and roasted nuts. Cottage food products must be packaged at home with an attached label that clearly states the name and registration number of the food preparer, lists all the ingredients in the product and the product's production date and includes the following statement: "This product was produced in a home kitchen that may process common food allergens and is not subject to public health inspection." If the product was made in a facility for individuals with developmental disabilities, the label must also disclose that fact. The person preparing the food or supervising the food preparation must complete a food handler training course from an accredited program and maintain active certification. The food preparer must register with an online registry established by the department pursuant to paragraph 13 of this subsection. The food preparer must display the preparer's certificate of registration when operating as a temporary food establishment. For the purposes of this subdivision, "not potentially hazardous" means cottage food products that meet the requirements of the food code published by the United States food and drug administration, as modified and incorporated by reference by the department by rule.

(h) A whole fruit or vegetable grown in a public school garden that is washed and cut on-site for immediate consumption.

(i) Produce in a packing or holding facility that is subject to the United States food and drug administration produce safety rule (21 Code of Federal Regulations part 112) as administered by the Arizona department of agriculture pursuant to title 3, chapter 3, article 4.1. For the purposes of this subdivision, "holding", "packing" and "produce" have the same meanings prescribed in section 3-525.

(j) Spirituous liquor produced on the premises licensed by the department of liquor licenses and control. This exemption includes both of the following:

(i) The area in which production and manufacturing of spirituous liquor occurs, as defined in an active basic permit on file with the United States alcohol and tobacco tax and trade bureau.

(ii) The area licensed by the department of liquor licenses and control as a microbrewery, farm winery or craft distiller that is open to the public and serves spirituous liquor and commercially prepackaged food, crackers or pretzels for consumption on the premises. A producer of spirituous liquor may not provide, allow or expose for common use any cup, glass or other receptacle used for drinking purposes. For the purposes of this item, "common use" means the use of a drinking receptacle for drinking purposes by or for more than one person without the receptacle being thoroughly cleansed and sanitized between consecutive uses by methods prescribed by or acceptable to the department.

5. Prescribe reasonably necessary measures to ensure that all meat and meat products for human consumption handled at the retail level are delivered in a manner and from sources approved by the Arizona department of agriculture and are free from unwholesome, poisonous or other foreign substances and filth, insects or disease-causing organisms. The rules shall prescribe standards for sanitary facilities to be used in identity, storage identifying, storing, handling and sale of selling all meat and meat products sold at the retail level.

6. Prescribe reasonably necessary measures regarding production, processing, labeling, handling, serving and transportation of bottled water to ensure that all bottled drinking water distributed for human consumption is free from unwholesome, poisonous, deleterious or other foreign substances and filth or disease-causing organisms. The rules shall prescribe minimum standards for the sanitary facilities and conditions that shall be maintained at any source of water, bottling plant and truck or vehicle in which bottled water is produced, processed, stored or transported and shall provide for inspection and certification of bottled drinking water sources, plants, processes and transportation and for abatement as a public nuisance of any water supply, label, premises, equipment, process or vehicle that does not comply with the minimum standards. The rules shall prescribe minimum standards for bacteriological, physical and chemical quality for bottled water and for the submission of submitting samples at intervals prescribed in the standards.

7. Define and prescribe reasonably necessary measures governing ice production, handling, storing and distribution to ensure that all ice sold or distributed for human consumption or for preserving or storing food for human consumption is free from unwholesome, poisonous, deleterious or other foreign substances and filth or disease-causing organisms. The rules shall prescribe minimum standards for the sanitary facilities and conditions and the quality of ice that shall be maintained at any ice plant, storage and truck or vehicle in which ice is produced, stored, handled or transported and shall provide for inspection and licensing of the premises and vehicles, and for abatement as public nuisances of ice, premises, equipment, processes or vehicles that do not comply with the minimum standards.

8. Define and prescribe reasonably necessary measures concerning sewage and excreta disposal, garbage and trash collection, storage and disposal, and water supply for recreational and summer camps, campgrounds, motels, tourist courts, trailer coach parks and hotels. The rules shall prescribe minimum standards for preparing food in community kitchens, adequacy of excreta disposal, garbage and trash collection, storage and disposal and water supply for recreational and summer camps, campgrounds, motels, tourist courts, trailer coach parks and hotels and shall provide for inspection of these premises and for abatement as public nuisances of any premises or facilities that do not comply with the rules. Primitive camp and picnic grounds offered by this state or a political subdivision of this state are exempt from rules adopted pursuant to this paragraph but are subject to approval by a county health department under sanitary regulations adopted pursuant to section 36-183.02. Rules adopted pursuant to this paragraph do not apply to two or fewer recreational vehicles as defined in section 33-2102 that are not park models or park trailers, that are parked on owner-occupied residential property for less than sixty days and for which no rent or other compensation is paid. For the purposes of this paragraph, "primitive camp and picnic grounds" means camp and picnic grounds that are remote in nature and without accessibility to public infrastructure such as water, electricity and sewer.

9. Define and prescribe reasonably necessary measures concerning the sewage and excreta disposal, garbage and trash collection, storage and disposal, water supply and food preparation of all public schools. The rules shall prescribe minimum standards for sanitary conditions that shall be maintained in any public school and shall provide for inspection of these premises and facilities and for abatement as public nuisances of any premises that do not comply with the minimum standards.

10. Prescribe reasonably necessary measures to prevent pollution of water used in public or semipublic swimming pools and bathing places and to prevent deleterious health conditions at these places. The rules shall prescribe minimum standards for sanitary conditions that shall be maintained at any public or semipublic swimming pool or bathing place and shall provide for inspection of these premises and for abatement as public nuisances of any premises and facilities that do not comply with the minimum standards. The rules shall be developed in cooperation with the director of the department of environmental quality and shall be consistent with the rules adopted by the director of the department of environmental quality pursuant to section 49-104, subsection B, paragraph 12.

11. Prescribe reasonably necessary measures to keep confidential information relating to diagnostic findings and treatment of patients, as well as information relating to contacts, suspects and associates of communicable disease patients. In no event shall Confidential information may not be made available for political or commercial purposes.

12. Prescribe reasonably necessary measures regarding human immunodeficiency virus testing as a means to control the transmission of that virus, including the designation of anonymous test sites as dictated by current epidemiologic and scientific evidence.

13. Establish an online registry of food preparers that are authorized to prepare cottage food products for commercial purposes pursuant to paragraph 4 of this subsection. A registered food preparer shall renew the registration every three years and shall provide to the department updated registration information within thirty days after any change.

14. Prescribe an exclusion for fetal demise cases from the standardized survey known as "the hospital consumer assessment of healthcare providers and systems".

J. I. The rules adopted under the authority conferred by this section shall be observed throughout the this state and shall be enforced by each local board of health or public health services district, but this section does not limit the right of any local board of health or county board of supervisors to adopt ordinances and rules as authorized by law within its jurisdiction, provided that if the ordinances and rules do not conflict with state law and are equal to or more restrictive than the rules of the director.

K. J. The powers and duties prescribed by this section do not apply in instances in which regulatory powers and duties relating to public health are vested by the legislature in any other state board, commission, agency or instrumentality, except that with regard to the regulation of meat and meat products, the department of health services and the Arizona department of agriculture within the area delegated to each shall adopt rules that are not in conflict.

L. K. The director, in establishing fees authorized by this section, shall comply with title 41, chapter 6. The department shall not set a fee at more than the department's cost of providing the service for which the fee is charged. State agencies are exempt from all fees imposed pursuant to this section.

M. L. After consultation with the state superintendent of public instruction, the director shall prescribe the criteria the department shall use in deciding whether or not to notify a local school district that a pupil in the district has tested positive for the human immunodeficiency virus antibody. The director shall prescribe the procedure by which the department shall notify a school district if, pursuant to these criteria, the department determines that notification is warranted in a particular situation. This procedure shall include a requirement that before notification the department shall determine to its satisfaction that the district has an appropriate policy relating to nondiscrimination of the infected pupil and confidentiality of test results and that proper educational counseling has been or will be provided to staff and pupils.

N. M. Until the department adopts exemptions by rule as required by subsection I H, paragraph 4, subdivision (f) of this section, food and drink are exempt from the rules prescribed in subsection I H of this section if offered at locations that sell only commercially prepackaged food or drink that is not potentially hazardous, without a limitation on its display area.

O. N. Until the department adopts exemptions by rule as required by subsection I H, paragraph 4, subdivision (h) of this section, a whole fruit or vegetable grown in a public school garden that is washed and cut on-site for immediate consumption is exempt from the rules prescribed in subsection I H of this section.

P. O. Until the department adopts an exclusion by rule as required by subsection I H, paragraph 14 of this section, the standardized survey known as "the hospital consumer assessment of healthcare providers and systems" may not include patients who experience a fetal demise.

Q. P. Until the department adopts exemptions by rule as required by subsection I H, paragraph 4, subdivision (j) of this section, spirituous liquor and commercially prepackaged food, crackers or pretzels that meet the requirements of subsection I H, paragraph 4, subdivision (j) of this section are exempt from the rules prescribed in subsection I H of this section.

R. Q. For the purposes of this section:

1. "Cottage food product":

(a) Means a food that is not potentially hazardous or a time or temperature control for safety food as defined by the department in rule and that is prepared in a home kitchen by an individual who is registered with the department.

(b) Does not include foods that require refrigeration, perishable baked goods, salsas, sauces, fermented and pickled foods, meat, fish and shellfish products, beverages, acidified food products, nut butters or other reduced-oxygen packaged products.

2. "Fetal demise" means a fetal death that occurs or is confirmed in a licensed hospital. Fetal demise does not include an abortion as defined in section 36-2151. END_STATUTE

Sec. 7. Section 36-137, Arizona Revised Statutes, is amended to read:

START_STATUTE36-137. Annual report of director

The director shall submit annually to the governor, the president of the senate and the speaker of the house of representatives a copy of the annual report setting forth:

1. The condition of public health in the this state.

2. The activities of the department during the preceding fiscal year.

3. The work done in each county.

4. The character and extent of all diseases reported.

5. The expenditures of the department and of each county or district health department.

6. Recommendations the director deems advisable for protection of the public health.

7. The financial statement of the affairs of the Arizona state hospital.

8. 7. The operations and administration of the program of service for children with a physical disability or who are suffering from conditions that lead to a physical disability. END_STATUTE

Sec. 8. Section 36-201, Arizona Revised Statutes, is amended to read:

START_STATUTE36-201. Definitions

In this article, unless the context otherwise requires:

1. "Chief medical officer" means the chief medical officer of the state hospital.

2. "Department" means the department of health services.

3. 2. "Director" means the director of the department of health services state hospital.

4. 3. "Employee" means an officer or employee of the state hospital.

4. "Governing board" means the state hospital governing board.

5. "State hospital" means the Arizona state hospital.

6. "Superintendent" means the superintendent of the state hospital.END_STATUTE

Sec. 9. Section 36-202, Arizona Revised Statutes, is amended to read:

START_STATUTE36-202. Arizona state hospital; purpose; facilities and equipment

A. A state hospital shall be maintained for the care and treatment of persons with mental disorders and persons with other personality disorders or emotional conditions who will benefit from care and treatment. Admissions to the state hospital shall be in accordance with law. The state hospital shall admit patients based on clinical need for treatment and may not place any limit on admission based on a patient's county of residence. The hospital shall be called the Arizona state hospital.

B. Subject to legislative appropriation, the state hospital may provide services to persons suffering from alcoholism and to persons suffering from drug abuse.

C. The state hospital shall have adequate facilities and equipment for enlightened and scientific treatment of nervous and mental diseases in accordance with approved methods of mental therapeutics. The facilities shall include, among other things:

1. Facilities for medical and psychiatric treatment with special attention to occupational therapy and other special therapies.

2. Facilities for proper segregation and care of child patients.

3. Facilities for recreation and physical training.

4. An institutional library for the use of patients.

5. A properly equipped dental department.

6. A properly equipped laboratory and x-ray department.

7. A patient tracking system approved by the director that monitors individual progress on an inpatient basis and ensures suitable aftercare placement.

D. The state hospital shall be under the charge and control of the governing board and the director of the department of health services, pursuant to this article. END_STATUTE

Sec. 10. Section 36-202.01, Arizona Revised Statutes, is amended to read:

START_STATUTE36-202.01. Admission of juveniles to state hospital

The Arizona state hospital shall collect census data for juvenile treatment programs to establish maximum capacity and the allocation formula required pursuant to section 36-206, subsection D. The Arizona state hospital is not required to provide services to juveniles that exceed the funded capacity. If the Arizona state hospital reaches its funded capacity for juveniles, the superintendent of the state hospital director shall establish a waiting list for admission based on the date of the commitment or treatment order. END_STATUTE

Sec. 11. Section 36-203, Arizona Revised Statutes, is amended to read:

START_STATUTE36-203. Persons with intellectual disabilities; admission to state hospital; governing board duties

A. The department of health services governing board shall develop and provide, in coordination with the department of economic security, specialized treatment programs for persons with an intellectual disability who have been admitted to the state hospital. The department of health services governing board may contract with the department of economic security in providing these programs.

B. The department governing board, to the extent practicable, shall provide separate areas at the state hospital for persons who are diagnosed with intellectual disabilities and, to the extent practicable, shall provide that treatment programs developed pursuant to subsection A of this section are separate from treatment programs for other patients and for separate use of facilities by persons who are diagnosed with intellectual disabilities.

C. The department of health services governing board, on request of a parent or guardian of a minor with an intellectual disability or the guardian of an adult with an intellectual disability or on the request of an adult with an intellectual disability, shall notify the department of economic security before the release of that person from the state hospital and request that the department of economic security provide placement evaluation and case management services for that person. The evaluation shall consider the person's needs for housing, day programs, employment training, employment and support services.

D. The department governing board, on the application of a parent or guardian of a minor with an intellectual disability or the guardian of an adult with an intellectual disability or on the request of an adult with an intellectual disability, when the person has been authorized for discharge from the state hospital, may provide interim care and custody for that person pending the availability of intellectual disability programs and services in accordance with section 36-556. END_STATUTE

Sec. 12. Section 36-204, Arizona Revised Statutes, is amended to read:

START_STATUTE36-204. Duties of director

The director shall:

1. Adopt rules for inpatient services that ensure proper review of treatment and discharge plans, arrangement for aftercare placements, transfer of medical records and assistance with medications.

2. If deemed advisable, establish a nurses' training school in connection with the state hospital, which shall be under the supervision of the superintendent.

3. Prescribe forms of complaints, certificates of mental illness and commitments.

4. Adopt rules for the commitment of committing mentally ill persons that are not inconsistent with provisions of law.

5. Adopt rules for the administration of administering the state hospital and to carry out the purposes of this article. END_STATUTE

Sec. 13. Section 36-205, Arizona Revised Statutes, is amended to read:

START_STATUTE36-205. Director of state hospital; appointment; compensation; qualifications; chief medical officer

A. There shall be a superintendent the director of the state hospital who shall be appointed by and under the supervision of the director governing board. The director is the chief administrative officer of the state hospital.

B. The compensation to be paid to the superintendent director shall be determined pursuant to section 38-611.

C. The superintendent shall be removed governing board may remove the director only for cause.

D. The superintendent director shall have the following qualifications:

1. Administrative experience in the private sector.

2. An educational background that prepares the superintendent director for the administrative responsibilities assigned to the position.

3. Mental health-related experience in both an institutional and community setting.

E. The superintendent director, with the approval of the director governing board, shall appoint a chief medical officer of the state hospital who is a physician and who is licensed pursuant to title 32, chapter 13 or 17. The chief medical officer shall have not less than at least three years' experience in the treatment of treating psychiatric disorders and shall be board-certified in psychiatry by the board of psychiatry and neurology. The chief medical officer is eligible for compensation pursuant to section 38-611. The chief medical officer is responsible for the clinical administration of the hospital and shall report directly to the superintendent director. END_STATUTE

Sec. 14. Title 36, chapter 2, article 1, Arizona Revised Statutes, is amended by adding sections 36-205.01 and 36-205.02, to read:

START_STATUTE36-205.01. State hospital governing board; membership; appointments; duties; emergency members; compensation

A. The state hospital governing board is established consisting of five members who are appointed by the governor pursuant to section 38-211. Not more than three members may be of the same political party, and not more than three members may be residents of the same county. Members of the governing board shall:

1. Have at least one of the following qualifications:

(a) Held an executive level position at a psychiatric or acute care hospital.

(b) administrative experience in a behavioral health facility.

(d) Administrative experience at a health plan that provides behavioral health services.

2. Before appointment by the governor, submit a full set of fingerprints to the governor for the purpose of obtaining a state and federal criminal records check pursuant to section 41-1750 and Public Law 92-544. the department of public safety may exchange this fingerprint data with the federal bureau of investigation.

3. Not have any familial relationship with a patient in any of the facilities located on the grounds of the state hospital.

4. Not be a party to or represent any party in any current pending litigation against the state hospital or any of its employees.

5. Not be on either the United States department of health and human services office of inspector general's list of excluded individuals and entities or the United States general services administration's system for award management database.

6. Not be currently employed by, or otherwise associated with, another psychiatric or behavioral entity that may refer patients for admission to the state hospital.

7. not have had a license or certification revoked or suspended by any health profession licensing board.

B. Governing board Appointments are for a term of five years and expire on the third Monday in JANUARY of the appropriate year. The chairperson of the independent oversight committee at the ARizona state hospital established pursuant to section 41-3803 shall serve as a nonvoting member of the governing board and is not counted for the purpose of determining if a quorum is present. The governing board shall meet at least once every month.

C. Each governing board member:

1. Shall sign an agreement to comply with all confidentiality requirements of matters that come before the governing board.

2. May not have any official communication with state hospital patients or the patients' families outside of meetings of the governing board, unless authorized by the governing board.

3. Is subject to the provisions of title 38, chapter 3, article 8 relating to conflict of interest, shall sign a conflict of interest statement that identifies and discloses any potential conflict of interest and may not participate, in any manner, in any matter in which the governing board member has a conflict of interest. For the purposes of this paragraph, "conflict of interest" means the ownership and control of any health care delivery organization that is corporately and functionally related to the state hospital.

4. May not vote on any measure in which the governing board member or a family member or partner of the governing board member has a pecuniary interest.

5. May not miss more than one meeting within a six-month period.

D. The governor may remove a governing board member only for cause. A board member who is removed for cause must be provided written notice and an opportunity to respond. The governor may remove a governing board member based on written findings that specify the reason for removal.

E. If the governing board does not have enough members to take official action, the fOLLOWING state employees in the following order shall serve as emergency members of the governing board:

1. The director of the department of health services or the director's designee.

2. The director of the Arizona health care cost containment system or the director's designee.

3. The director of the department of veterans' services or the director's designee.

4. The director of the department of economic security.

5. The chief medical officer or medical director from the following agencies in the following order:

(a) The department of health services.

(b) The department of veterans' services.

F. the governing board shall administer The laws of this state relating to the state hospital.

G. The members of the governing board are eligible to receive compensation not to exceed $200 per day for each day spent in the discharge of their duties and all expenses necessarily and properly incurred in attending meetings.END_STATUTE

START_STATUTE36-205.02. Governing board; duties

In accordance with state licensing rules, the regulations of the centers for medicare and medicaid services and the joint commission's accreditation standards, the governing board shall:

1. Review, modify as necessary and adopt the Arizona state hospital governing board bylaws at least every two years.

2. In consultation with the director, set goals for the state hospital and for achieving those goals.

3. Advise the director regarding facilities, maintenance, staffing, programs, services and policies.

4. Ensure compliance with standards for patients' rights.

5. Review and approve budget requests for the annual budget.

6. Assist in educating the community concerning the role of the state hospital.

7. Ensure that the state hospital coordinates services, programs and policies between the state hospital and community mental health care programs and facilities, including admission, discharge and aftercare.

8. Review and approve contracts for the use of state hospital facilities for other programs, services and agencies.

9. Ensure that all governing board members are provided with an orientation to the state hospital.

10. Provide for ongoing, effective communication between the governing board, the state hospital administration and the state hospital medical staff.

11. Ensure full disclosure of ownership and control of the state hospital as required by statute and related accrediting and oversight agencies.

12. Participate in accreditation, certification and licensure processes, and be available to attend summation and exit conferences.

13. Evaluate the state hospital's performance annually in relation to its vision, mission and goals.

14. Review and approve the quality assurance and performance improvement plan and institutional plan and budget at least annually.

15. Evaluate and modify, as necessary, the staffing acuity plan at least annually.

16. Ensure full implementation of the state hospital's quality assurance and performance improvement plan and provide feedback to the state hospital's departments and teams regarding improvement activities.

17. Request information as needed to monitor the status of individual projects.

18. Review all state hospital reports.

19. Review and approve the state hospital medical staff bylaws and the medical staff rules and regulations to address self-governance and ensure that the medical staff is accountable to the governing board for the quality of medical care, treatment and services.

20. Perform all functions and duties required for governance by the joint commission, the centers for medicare and medicaid services and the department of health services for state licensure.

21. Review reports of contractor performance for direct care patient services at least annually.

22. Authorize, approve and support the state hospital medical staff by:

(a) Reviewing credentials and approving or denying individual privileges.

(b) Approving individuals for medical staff membership after considering the recommendations of the existing medical staff.

(c) Ensuring that the criteria for selection are individual character, competence, training, experience and judgment and that staff membership or professional privileges in the state hospital are not accepted depending solely on certification, fellowship or membership in a specialty body or society.

(d) Rendering the final determination concerning individual credentials and privileges.

(e) Prescribing the procedures by which membership of the medical staff may be terminated.

(f) Prescribing fair hearing procedures at the medical executive committee level.

(g) Providing for appeals of medical executive committee credentialing and privileging decisions to the governing board.

23. Consult directly with the state hospital chief medical officer periodically on matters related to the quality of medical care provided to state hospital patients.

24. Ensure that systems are in place and operational at the state hospital for tracking all infection surveillance, prevention and control and antibiotic use activities in order to demonstrate the implementation, success and sustainability of such activities.

25. Ensure that all hospital-acquired infections and other infectious diseases identified by the infection prevention and control program as well as antibiotic use issues identified by the antibiotic stewardship program are addressed in collaboration with state hospital quality assurance and performance improvement leadership.END_STATUTE

Sec. 15. Section 36-206, Arizona Revised Statutes, is amended to read:

START_STATUTE36-206. Duties of director; deputies; cost estimate; program assessment; funded capacity and allocation formula

A. The director has charge of the state hospital and the superintendent shall supervise and direct its activities. , subject to the provisions of law and approval of the director. The superintendent is directly responsible to the director for carrying out the purposes for which the hospital is maintained. Subject to the approval of the director, The superintendent director may deputize any qualified officer of the state hospital to do or perform any act the superintendent director is empowered to do or is charged with the responsibility of doing by law.

B. The superintendent in December each year the director shall estimate the probable daily per capita cost of treatment treating and maintenance of maintaining each category of patients for the next ensuing year as determined in accordance with standard accounting practices. the director shall provide a statement of the estimate shall be provided to the director governing board in January of the following year.

C. The superintendent director, on request, shall provide to the director governing board a clinical assessment of the state hospital's programs.

D. On or before August 1 of each year, the director shall establish maximum funded capacity and a percentage allocation formula for forensic and civil bed capacity at the Arizona state hospital based on census data collected pursuant to sections 13-3992, 13-4512, 36-202.01 and 36-503.03. By on or before June 1 of each year, the director shall solicit and consider the recommendations of representatives of the county board of supervisors, the Arizona prosecuting attorneys' advisory council and the superior court when establishing this formula. In addition to establishing the formula, the director, the county board of supervisors, the Arizona prosecuting attorneys' advisory council and the superior court shall develop a contingency plan for the placement of placing patients subject to sections 13-3992, 13-4512, 36-202.01 and 36-503.03 in times of emergency and other unforeseen circumstances. The director shall notify the governing board, the governor, the president of the senate, the speaker of the house of representatives and the chairperson of each county board of supervisors of the funded capacity and allocation formula for the current fiscal year. Thirty days before the notification of the forensic and civil bed funded capacity formula, the director shall provide this information to the representatives of the county board of supervisors, the Arizona prosecuting attorneys' advisory council and the superior court for comment. The director shall include these comments when issuing the formula. END_STATUTE

Sec. 16. Section 36-208, Arizona Revised Statutes, is amended to read:

START_STATUTE36-208. Employees; discharges; report; compensation

A. Except as otherwise provided by this article, the director shall employ all employees of the state hospital. The director may employ necessary medical consultants on recommendation of the superintendent. The director may permit allow members of the medical staff to act as consultants in psychiatry.

B. Subject to the laws of this state governing state personnel administration, the superintendent director may discharge an employee for cause. An employee so discharged, on request, may have the reasons for the discharge reviewed and determined by the director governing board. The superintendent director shall file a written report with the director governing board of each discharge setting forth the reasons for the discharge.

C. The compensation of employees of the state hospital shall be as determined pursuant to section 38-611. END_STATUTE

Sec. 17. Section 36-209, Arizona Revised Statutes, is amended to read:

START_STATUTE36-209. Reporting requirements; director; governing board

A. At such a time as the director governing board designates, the superintendent director shall submit to the director governing board a report of the activities of the state hospital during the preceding fiscal year, including:

1. The number of patients received, conditionally discharged and discharged and voluntary patients treated.

2. The methods of treatment used and the results.

3. The total number, including the number of such persons who were committed on a voluntary and involuntary basis, of seriously mentally ill patients as defined in section 36-550 and the place to which each person was discharged.

4. Census data for treatment programs pursuant to sections 13-3992, 13-4512, 36-202.01 and 36-503.03.

5. A complete employment and personnel record.

6. The condition of existing equipment.

7. Recommendations for improvement of improving the institution state hospital.

8. Other matters required by the director governing board or deemed advisable by the superintendent director to present a complete description of the condition and activities of the state hospital.

B. Not later than the fifteenth day of each month, the director governing board shall prepare in duplicate a financial statement of the affairs of the state hospital, including:

1. The amounts appropriated for the current fiscal year for operation, maintenance and improvement.

2. The amount expended spent during the preceding calendar month.

3. The balance on hand.

4. The estimated expenditures for the current month.

5. An inventory report.

C. The original report and statements required by this section shall be filed with and retained as records of the director governing board and duplicates filed with the director of the department of administration.

D. At such a time as the director governing board designates, the superintendent director of the state hospital shall submit to the director governing board a financial statement of the affairs of the state hospital during the preceding fiscal year in a form prescribed by the director of the department of administration.

E. By on or before October 1 of each year, the director governing board shall submit to the governor a comprehensive report of the activities of the state hospital during the preceding fiscal year, which shall include the annual reports of the superintendent director, and shall contain:

1. An account of the work done.

2. Recommendations for improvements.

3. Financial statements that clearly reflect the origin and disposition of all monies that have come into the hands of the director governing board or an employee through appropriations or otherwise.

F. The director governing board shall make such supplemental reports as the governor or the legislature requests.

G. The annual report prescribed by subsection E of this section shall be published for the information of the public, and five copies shall be delivered to the chief clerk of the house of representatives and the secretary of the senate, respectively, who shall keep them on file for the use of the members of each house. END_STATUTE

Sec. 18. Section 36-210, Arizona Revised Statutes, is amended to read:

START_STATUTE36-210. Expenditures

A. This article does not give the director or any employee authority to create a debt or obligation in excess of the amount appropriated by the legislature to carry out its the provisions of this article. If monies are not appropriated to carry out the purpose of this article, the director governing board shall submit recommendations to the legislature, with a statement of the cost when an improvement is requested.

B. Except as provided by subsection D of this section, the director of the department of administration shall not issue a warrant for expenditures by the state hospital in excess of for more than the estimate contained in the monthly financial statement unless the superintendent director of the state hospital submits a written request that is approved in writing by the director of the department of health services governing board and that states the reasons for the request. The director of the department of administration shall not issue warrants in excess of for more than the amount available for the current quarter.

C. If a patient in the state hospital requires a health care service that the state hospital or a facility or provider contracted by the state hospital cannot provide, the department of health services governing board shall pay approved claims from a facility or provider that provides these required services as follows:

1. For inpatient and outpatient hospital services, the this state shall reimburse at a level that does not exceed the reimbursement methodology established in section 36-2903.01, subsection G.

2. For health and medical services, the this state shall reimburse providers at a level that does not exceed the capped fee-for-service schedule that is adopted by the Arizona health care cost containment system administration pursuant to chapter 29, article 1 of this title and that is in effect at the time the service is delivered.

D. Monies appropriated for capital investment may be expended spent at any time during the fiscal period for which the monies are appropriated as directed by the director governing board. END_STATUTE

Sec. 19. Section 36-212, Arizona Revised Statutes, is amended to read:

START_STATUTE36-212. Maximum security area required

The superintendent director, under the direction of the director governing board, shall equip, staff and supervise the operation of an area consisting of one or more separate buildings on the state hospital grounds in Phoenix to be designated a maximum security area. The superintendent director shall designate which patients shall be confined within a the maximum security area, which shall be equipped, staffed and maintained in order to provide treatment and necessary supervision to prevent the patients from leaving the area without authorization. END_STATUTE

Sec. 20. Section 36-213, Arizona Revised Statutes, is amended to read:

START_STATUTE36-213. Store and canteen; outside entity; rental and service charges; state hospital donations fund

A. The superintendent director, with the approval of the director governing board, may set aside and designate any space on the grounds of the state hospital that is not needed for other authorized purposes for the establishment and maintenance of to establish and maintain store and canteen facilities for the sale of to sell candies, cigarettes, food, nonalcoholic beverages, sundries and other articles to patients and employees and for the benefit of the patients of the state hospital.

B. The superintendent director, with the approval of the director governing board, may contract with an outside firm, individual or agency to lease and operate the store and canteen facilities. The outside firm, individual or agency shall provide a bond in an amount set by the superintendent director with the approval of the director governing board. The facilities shall be conducted subject to the rules and regulations of the department of the governing board, and rental and service charges shall be established by the superintendent director, with the approval of the director governing board, as will to reimburse the state hospital for the cost thereof of the store and canteen facilities.

C. The state hospital donations fund is established for the benefit of the patients of the state hospital. The director shall administer the fund. The fund is continuously appropriated. The fund consists of any profits derived from the operation of such the store and canteen facilities, after reimbursement to the state hospital, shall be deposited in the department of health services donations fund created by authority of section 36-132, subsection B and any other donations received by the governing board for the benefit of the patients of the state hospital. The monies may be expended spent as the director directs for the benefit of the patients of the state hospital. The provisions of Title 35, chapter 1 do does not apply to the monies in the fund. END_STATUTE

Sec. 21. Repeal

Section 36-214, Arizona Revised Statutes, is repealed.

Sec. 22. Section 36-216, Arizona Revised Statutes, is amended to read:

START_STATUTE36-216. Budget request; proposed budget

A. The department governing board shall present a budget request that includes all information on the potential availability of other monies, including federal monies, that may be used in the following fiscal year to fund the state hospital.

B. The budget request presented pursuant to subsection A of this section shall include a proposed budget for the state hospital, with a specific amount of the total budget estimated to be used for patients who are seriously mentally ill.

C. Monies appropriated to the department governing board for the state hospital programs, fees generated by the department governing board for these programs and grants and gifts to the department governing board shall be maintained in the appropriate fund to pay program and administrative costs. The administrative costs of each program shall be separately identified in the accounting records of the department governing board. END_STATUTE

Sec. 23. Section 36-217, Arizona Revised Statutes, is amended to read:

START_STATUTE36-217. Annual report; patient health information

A. On or before January 1 of each year, the director shall submit to the governor, the speaker of the house of representatives and the president of the senate a financial and programmatic report on the state hospital for the preceding fiscal year. In addition to information that the department governing board deems relevant, this report shall include all of the following information:

1. All revenues and expenditures of the state hospital, including specific identification of administrative costs for and the number of patients served at the state hospital.

2. A breakdown of the patients served at each facility at the state hospital, including information on the following:

(a) Gender.

(b) Race.

(d) Legal status.

(e) County of origin.

(f) Program type.

(g) Census by unit.

(h) Primary diagnosis of each by category.

(i) Length of stay.

3. Admissions by civil commitment, including the number of admissions and discharges, the time between the request for each admission and the date of the admission or denial of the admission and aggregate data for reason of denial by category.

4. Data collected from the state hospital's safety plan, including all of the following:

(a) The number and type of all assaults by category, with sexual assaults reported as a separate category.

(b) The number of assaults reported to law enforcement, regulatory agencies and accreditation agencies.

5. An update on the establishment of a psychiatric center of excellence.

B. This section does not require the release of individually identifiable health information of any specific patient. END_STATUTE

Sec. 24. Section 36-218, Arizona Revised Statutes, is amended to read:

START_STATUTE36-218. Arizona state hospital charitable trust fund

The Arizona state hospital charitable trust fund is established consisting of monies collected from contracts and lease agreements entered into pursuant to section 36-136, subsection C 36-220. The director shall administer the fund. Monies in the fund are continuously appropriated and may be spent for the benefit of persons with mental illness in this state. Monies in the fund do not revert to the state general fund at the end of a fiscal year. END_STATUTE

Sec. 25. Title 36, chapter 2, article 1, Arizona Revised Statutes, is amended by adding section 36-220, to read:

START_STATUTE36-220. State hospital property; contracts and lease agreements; deposits; public hearing; report

A. The director, after consultation with the department of administration, may take all necessary steps to enhance the highest and best use of the state hospital property, including contracting with third parties to provide services, entering into short-term lease agreements with third parties to occupy or renovate existing buildings and entering into long-term lease agreements to develop the land and buildings. The director shall deposit any monies collected from contracts and lease agreements entered into pursuant to this section in the Arizona state hospital charitable trust fund established by section 36-218.

B. At least thirty days before issuing a request for proposals pursuant to this section, the governing board shall hold a public hearing to receive community and provider input regarding the highest and best use of the state hospital property related to the request for proposals. The governing board shall report to the joint committee on capital review on the terms, conditions and purpose of any lease or sublease agreement entered into pursuant to this section relating to state hospital lands or buildings or the disposition of real property pursuant to this section, including state hospital lands or buildings, and the fiscal impact on the governing board and any revenues generated by the agreement. Any lease or sublease agreement entered into pursuant to this section relating to state hospital lands or buildings or the disposition of real property pursuant to this section, including state hospital lands or buildings, must be reviewed by the joint committee on capital review.END_STATUTE

Sec. 26. Section 36-501, Arizona Revised Statutes, is amended to read:

START_STATUTE36-501. Definitions

In this chapter, unless the context otherwise requires:

1. "Administration" means the Arizona health care cost containment system administration.

2. "Admitting officer" means a psychiatrist or other physician or psychiatric and mental health nurse practitioner with experience in performing psychiatric examinations who has been designated as an admitting officer of the evaluation agency by the person in charge of the evaluation agency.

3. "Authorized transporter" means a transportation entity that is contracted with a city, town or county to provide services pursuant to this chapter and that is either:

(a) An ambulance service that holds a valid certificate of necessity.

(b) A transportation provider authorized by this state to provide safe behavioral health transportation for individuals requiring transportation pursuant to this chapter.

4. "Chief medical officer" means the chief medical officer under the supervision of the superintendent director of the state hospital.

5. "Contraindicated" means that access is reasonably likely to endanger the life or physical safety of the patient or another person.

6. "Court" means the superior court in the county in this state in which the patient resides or was found before screening or emergency admission under this title.

7. "Criminal history" means police reports, lists of prior arrests and convictions, criminal case pleadings and court orders, including a determination that the person has been found incompetent to stand trial pursuant to section 13-4510.

8. "Danger to others" means that the judgment of a person who has a mental disorder is so impaired that the person is unable to understand the person's need for treatment and as a result of the person's mental disorder the person's continued behavior can reasonably be expected, on the basis of competent medical opinion, to result in serious physical harm.

9. "Danger to self":

(a) Means behavior that, as a result of a mental disorder:

(i) Constitutes a danger of inflicting serious physical harm on oneself, including attempted suicide or the serious threat thereof, if the threat is such that, when considered in the light of its context and in light of the individual's previous acts, it is substantially supportive of an expectation that the threat will be carried out.

(ii) Without hospitalization will result in serious physical harm or serious illness to the person.

(b) Does not include behavior that establishes only the condition of having a grave disability.

10. "Department" means the department of health services.

11. "Detention" means the taking into custody of a patient or proposed patient.

12. "Director" means the director of the administration.

13. "Evaluation" means:

(a) A professional multidisciplinary analysis that may include firsthand observations or remote observations by interactive audiovisual media and that is based on data describing the person's identity, biography and medical, psychological and social conditions carried out by a group of persons consisting of not less than the following:

(i) Two licensed physicians who are qualified psychiatrists, if possible, or at least experienced in psychiatric matters, and who shall examine and report their findings independently. The person against whom a petition has been filed shall be notified that the person may select one of the physicians. A psychiatric resident in a training program approved by the American medical association or by the American osteopathic association may examine the person in place of one of the psychiatrists if the resident is supervised in the examination and preparation of the affidavit and testimony in court by a qualified psychiatrist appointed to assist in the resident's training, and if the supervising psychiatrist is available for discussion with the attorneys for all parties and for court appearance and testimony if requested by the court or any of the attorneys.

(ii) Two other individuals, one of whom, if available, is a psychologist and in any event a social worker familiar with mental health and human services that may be available placement alternatives appropriate for treatment. An evaluation may be conducted on an inpatient basis, an outpatient basis or a combination of both, and every reasonable attempt shall be made to conduct the evaluation in any language preferred by the person.

(b) A physical examination that is consistent with the existing standards of care and that is performed by one of the evaluating physicians or by or under the supervision of a physician who is licensed pursuant to title 32, chapter 13 or 17 or a registered nurse practitioner who is licensed pursuant to title 32, chapter 15 if the results of that examination are reviewed or augmented by one of the evaluating physicians.

14. "Evaluation agency" means a health care agency that is licensed by the department and that has been approved pursuant to this title, providing those services required of such agency by this chapter.

15. "Family member" means a spouse, parent, adult child, adult sibling or other blood relative of a person undergoing treatment or evaluation pursuant to this chapter.

16. "Grave disability" means a condition evidenced by behavior in which a person, as a result of a mental disorder, is likely to come to serious physical harm or serious illness because the person is unable to provide for the person's own basic physical needs.

17. "Health care decision maker" has the same meaning prescribed in section 12-2801.

18. "Health care entity" means a health care provider, the department, the administration or a regional behavioral health authority that is under contract with the administration.

19. "Health care provider" means a health care institution as defined in section 36-401 that is licensed as a behavioral health provider pursuant to department rules or a mental health provider.

20. "Independent evaluator" means a licensed physician, psychiatric and mental health nurse practitioner or psychologist who is selected by the person to be evaluated or by such person's attorney.

21. "Informed consent" means a voluntary decision following presentation of all facts necessary to form the basis of an intelligent consent by the patient or guardian with no minimizing of known dangers of any procedures.

22. "Least restrictive treatment alternative" means the treatment plan and setting that infringe in the least possible degree with the patient's right to liberty and that are consistent with providing needed treatment in a safe and humane manner.

23. "Licensed physician" means any medical doctor or doctor of osteopathy who is either:

(a) Licensed in this state.

(b) A full-time hospital physician licensed in another state and serving on the staff of a hospital operated or licensed by the United States government.

24. "Medical director of an evaluation agency" means a psychiatrist, or other licensed physician experienced in psychiatric matters, who is designated in writing by the governing body of the agency as the person in charge of the medical services of the agency for the purposes of this chapter and may include the chief medical officer of the state hospital.

25. "Medical director of a mental health treatment agency" means a psychiatrist, or other licensed physician experienced in psychiatric matters, who is designated in writing by the governing body of the agency as the person in charge of the medical services of the agency for the purposes of this chapter and includes the chief medical officer of the state hospital.

26. "Mental disorder" means a substantial disorder of the person's emotional processes, thought, cognition or memory. Mental disorder is distinguished from:

(a) Conditions that are primarily those of drug abuse, alcoholism or intellectual disability, unless, in addition to one or more of these conditions, the person has a mental disorder.

(b) The declining mental abilities that directly accompany impending death.

(c) Character and personality disorders characterized by lifelong and deeply ingrained antisocial behavior patterns, including sexual behaviors that are abnormal and prohibited by statute unless the behavior results from a mental disorder.

27. "Mental health provider" means any physician or provider of mental health or behavioral health services who is involved in evaluating, caring for, treating or rehabilitating a patient.

28. "Mental health treatment agency" means the state hospital or a health care agency that is licensed by the department and that provides those services that are required of the agency by this chapter.

29. "Outpatient treatment" or "combined inpatient and outpatient treatment" means any treatment program not requiring continuous inpatient hospitalization.

30. "Outpatient treatment plan" means a treatment plan that does not require continuous inpatient hospitalization.

31. "Patient" means any person who is undergoing examination, evaluation or behavioral or mental health treatment under this chapter.

32. "Peace officers" means sheriffs of counties, constables, marshals and policemen of cities and towns.

33. "Persistent or acute disability" means a severe mental disorder that meets all the following criteria:

(a) Significantly impairs judgment, reason, behavior or capacity to recognize reality.

(b) If not treated, has a substantial probability of causing the person to suffer or continue to suffer severe and abnormal mental, emotional or physical harm.

(c) Substantially impairs the person's capacity to make an informed decision regarding treatment, and this impairment causes the person to be incapable of understanding and expressing an understanding of the advantages and disadvantages of accepting treatment and understanding and expressing an understanding of the alternatives to the particular treatment offered after the advantages, disadvantages and alternatives are explained to that person.

(d) Has a reasonable prospect of being treatable by outpatient, inpatient or combined inpatient and outpatient treatment.

34. "Prepetition screening" means the review of each application requesting court-ordered evaluation, including an investigation of facts alleged in the application, an interview with each applicant and an interview, if possible, with the proposed patient. The purpose of the interview with the proposed patient is to assess the problem, explain the application and, when indicated, attempt to persuade the proposed patient to receive, on a voluntary basis, evaluation or other services.

35. "Prescribed form" means a form established by a court or the rules of the administration in accordance with the laws of this state.

36. "Professional" means a physician who is licensed pursuant to title 32, chapter 13 or 17, a psychologist who is licensed pursuant to title 32, chapter 19.1 or a psychiatric and mental health nurse practitioner who is certified pursuant to title 32, chapter 15.

37. "Proposed patient" means a person for whom an application for evaluation has been made or a petition for court-ordered evaluation has been filed.

38. "Prosecuting agency" means the county attorney, attorney general or city attorney who applied or petitioned for an evaluation or treatment pursuant to this chapter.

39. "Psychiatric and mental health nurse practitioner" means a registered nurse practitioner as defined in section 32-1601 who has completed an adult or family psychiatric and mental health nurse practitioner program and who is certified as an adult or family psychiatric and mental health nurse practitioner by the state board of nursing.

40. "Psychiatrist" means a licensed physician who has completed three years of graduate training in psychiatry in a program approved by the American medical association or the American osteopathic association.

41. "Psychologist" means a person who is licensed under title 32, chapter 19.1 and who is experienced in the practice of clinical psychology.

42. "Records" means all communications that are recorded in any form or medium and that relate to patient examination, evaluation or behavioral or mental health treatment. Records include medical records that are prepared by a health care provider or other providers. Records do not include:

(a) Materials that are prepared in connection with utilization review, peer review or quality assurance activities, including records that a health care provider prepares pursuant to section 36-441, 36-445, 36-2402 or 36-2917.

(b) Recorded telephone and radio calls to and from a publicly operated emergency dispatch office relating to requests for emergency services or reports of suspected criminal activity.

43. "Regional behavioral health authority" has the same meaning prescribed in section 36-3401.

44. "Screening agency" means a health care agency that is licensed by the department and that provides those services required of such agency by this chapter.

45. "Social worker" means a person who has completed two years of graduate training in social work in a program approved by the council of social work education and who has experience in mental health.

46. "State hospital" means the Arizona state hospital.

47. "Superintendent" means the superintendent of the state hospital. END_STATUTE

Sec. 27. Section 36-502.01, Arizona Revised Statutes, is amended to read:

START_STATUTE36-502.01. Director of the state hospital; powers and duties; rules; expenditure limit

A. The director of the department state hospital shall make rules that include standards for the state hospital when providing services as an evaluation agency or mental health agency and shall prescribe forms as may be necessary for the proper administration and enforcement of those responsibilities. The rules shall be applicable to patients admitted to, evaluated by or treated in the state hospital as set forth in this chapter and shall provide for periodic inspections of the state hospital.

B. The director of the department state hospital shall make rules concerning the admission of patients to the state hospital and the transfer of patients between the state hospital and other mental health treatment agencies. A patient undergoing court-ordered treatment may be transferred between the state hospital and another mental health treatment agency in accordance with the rules of the director of the department state hospital, subject to the approval of the court. The director of the department state hospital shall consult with the director of the administration on rules relating to transfers to and from the state hospital and other mental health treatment agencies.

C. The director of the department state hospital may make rules concerning leaves, visits and absences of patients from the state hospital.

D. The total amount of state monies that may be spent in any fiscal year by the department state hospital governing board for mental health services pursuant to this chapter may not exceed the amount appropriated or authorized by section 35-173 for that purpose. This chapter does not impose a duty on an officer, agent or employee of this state to discharge a responsibility or create any right in a person or group if the discharge or right would require an expenditure of state monies in excess of the expenditure authorized by legislative appropriation for that specific purpose. END_STATUTE

Sec. 28. Section 36-541, Arizona Revised Statutes, is amended to read:

START_STATUTE36-541. Mandatory local treatment; placement at state hospital

A. A patient who is ordered by a court to undergo treatment and who is not hospitalized in the state hospital at the time of the order shall undergo treatment for at least twenty-five days in a local mental health treatment agency that is geographically convenient for the patient before being hospitalized in the state hospital. This section does not apply if the court finds, at a hearing on court-ordered treatment, that the patient's present condition and history demonstrate that the patient will not benefit from the required period of treatment in a local mental health treatment agency or that the state hospital provides a program that is specific to the needs of the patient and is unavailable in the local mental health treatment agency, or when there is no local mental health treatment agency readily available to the patient. Such a finding shall be based at least on the annual written description by the state hospital of programs and services available and appropriate written reports from the medical director of the local mental health treatment agency. The patient may be immediately hospitalized at the state hospital whenever the court determines that this section does not apply.

B. A patient who is ordered by a court to undergo treatment may be admitted for treatment if the patient is accepted by the superintendent of the state hospital for treatment at the state hospital or if the court orders placement at the state hospital pursuant to subsection A or C of this section.

C. During any period of court-ordered treatment, the medical director of the local mental health treatment agency assigned to supervise and administer the patient's treatment program may file a motion requesting the court to amend the treatment order to place the patient for treatment at the state hospital. After a hearing, if the court finds that the patient's present condition and history demonstrate that the patient will not benefit from a continued period of treatment in or by a local mental health treatment agency, either as an inpatient or an outpatient, or that the state hospital provides a program that is specific to the needs of the patient and is unavailable in a local mental health treatment agency, and that the least restrictive placement to meet the needs of the patient for the foreseeable future is placement in the state hospital and there is a legally available funded bed in the state hospital, the court may amend the original treatment order authorizing the placement of the patient at the state hospital pursuant to section 36-540, subsection A, paragraph 2 or 3. Within five days after receiving notice from the court, the superintendent shall notify the court whether a bed is available in the state hospital. END_STATUTE

Sec. 29. Section 36-545.01, Arizona Revised Statutes, is amended to read:

START_STATUTE36-545.01. Costs and expenses; patient ability to pay; power and duty of court; acceptance of other benefits; per capita cost limit; conservatorship; parental liability; lien; enforcement

A. When a patient is admitted to the state hospital for court-ordered treatment pursuant to article 5 of this chapter or pursuant to section 13-3992, the business manager of the state hospital shall inquire into the ability of the patient to pay the costs of examination, maintenance and treatment. The business manager shall file with the clerk of the court a written report of the manager's findings and the basis of those findings.

B. If the patient is able to pay all or any portion of the charges, the court shall order the payment of patient to pay the amount the patient can afford of the per capita cost for examination, treatment and maintenance as estimated by the superintendent director of the state hospital. The court, on petition of an interested person and at a hearing of which all concerned parties have received notice, may increase or decrease the maintenance charge payable by the patient or the patient's estate.

C. Notwithstanding subsection B of this section, any federal, state, public or private medical benefits that are payable to the state hospital where the patient is receiving care and treatment or that are payable to the patient may be accepted by the state hospital without a court order, except that the state hospital shall not accept any benefits that alone or in addition to any amounts payable pursuant to subsection B of this section exceed the per capita cost for the patient.

D. The court, if necessary, may appoint a conservator of the patient to carry out this section. If a conservator is appointed, the clerk of the court shall file a certificate so stating. All proceedings relating to that conservatorship shall be had as provided by law for conservators of estates. The conservator shall pay the amount ordered by the court pursuant to subsection B of this section.

E. If the patient is a minor, the business manager of the state hospital shall inquire into the ability of the minor's parents to bear charges pursuant to this section. All obligations, charges and liens that may be imposed on a patient pursuant to this section shall be imposed on the minor's parents if it is determined that the parents have the ability to pay.

F. The charges fixed by the court as provided by this section and ordered paid by the patient or the patient's estate, on filing with the county recorder, become a lien on the property of the patient or the patient's estate.

G. The county attorney of each county, on an order of a judge of the superior court, shall enforce the lien and collect the charges from the person ordered to pay if the charges become delinquent.

H. Costs of examination, treatment and maintenance shall not be charged to any patient found by a court of competent jurisdiction to be unlawfully detained.

I. Notwithstanding section 36-545.02, the department state hospital governing board shall deposit, pursuant to sections 35-146 and 35-147, monies collected through contracts entered into pursuant to section 36-3410 in the Arizona state hospital fund established by section 36-545.08. The department state hospital governing board shall use these monies for the treatment of to treat patients at the state hospital or for the placement of to place clients in the community. END_STATUTE

Sec. 30. Section 36-545.08, Arizona Revised Statutes, is amended to read:

START_STATUTE36-545.08. Arizona state hospital fund; accounts; purpose

A. The Arizona state hospital fund is established for the purposes prescribed in section 36-545.01, subsection I. The department of health services director of the state hospital shall administer the fund. The fund consists of the following:

1. Monies reimbursed by the federal government under title XIX of the social security act for services provided at the state hospital.

2. Monies collected pursuant to section 36-3410 for services to clients at the state hospital.

3. Monies collected from counties for the cost of a defendant's inpatient competency restoration treatment.

B. The department director of the state hospital shall deposit monies collected pursuant to subsection A of this section into three separate accounts.

C. Monies in the fund deposited under subsection A, paragraphs 1 and 3 of this section are subject to legislative appropriation and are designated for state hospital operations. Monies in the fund deposited under subsection A, paragraph 2 of this section are a continuing appropriation and are exempt from the provisions of section 35-190 relating to lapsing of appropriations. Monies in the fund deposited under subsection A, paragraph 3 of this section remaining that remain unexpended and unencumbered at the end of the fiscal year revert to the state general fund. Monies in the fund deposited under subsection A, paragraph 1 of this section are exempt from the provisions of section 35-190 relating to lapsing of appropriations. END_STATUTE

Sec. 31. Section 36-1672, Arizona Revised Statutes, is amended to read:

START_STATUTE36-1672. Local programs

A. The department is authorized to develop and conduct local programs for the prevention, detection to prevent, detect and treatment of treat lead-based paint poisoning, subject to legislative appropriation. Such authorization shall include:

1. Developing educational programs intended to communicate the health danger and prevalence of lead-based paint poisoning among children to parents, educators and local health officials.

2. Development Developing and carrying out of community testing programs designed to detect incidence of lead poisoning due to lead-based paint and other sources among community residents and to ensure prompt medical treatment for such afflicted individuals.

B. The director may delegate to any local agency the authority to conduct the local program within the local agency's jurisdiction as provided in section 36-136, subsection E D. END_STATUTE

Sec. 32. Section 49-104, Arizona Revised Statutes, is amended to read:

START_STATUTE49-104. Powers and duties of the department and director

A. The department shall:

1. Formulate policies, plans and programs to implement this title to protect the environment.

2. Stimulate and encourage all local, state, regional and federal governmental agencies and all private persons and enterprises that have similar and related objectives and purposes, cooperate with those agencies, persons and enterprises and correlate department plans, programs and operations with those of the agencies, persons and enterprises.

3. Conduct research on its own initiative or at the request of the governor, the legislature or state or local agencies pertaining to any department objectives.

4. Provide information and advice on request of any local, state or federal agencies and private persons and business enterprises on matters within the scope of the department.

5. Consult with and make recommendations to the governor and the legislature on all matters concerning department objectives.

6. Promote and coordinate the management of air resources to ensure their protection, enhancement and balanced utilization consistent with the environmental policy of this state.

7. Promote and coordinate the protection and enhancement of the quality of water resources consistent with the environmental policy of this state.

8. Encourage industrial, commercial, residential and community development that maximizes environmental benefits and minimizes the effects of less desirable environmental conditions.

9. Ensure the preservation and enhancement of natural beauty and man-made scenic qualities.

10. Provide for the prevention and abatement of all water and air pollution including that related to particulates, gases, dust, vapors, noise, radiation, odor, nutrients and heated liquids in accordance with article 3 of this chapter and chapters 2 and 3 of this title.

11. Promote and recommend methods for the recovery, recycling and reuse or, if recycling is not possible, the disposal of solid wastes consistent with sound health, scenic and environmental quality policies. The department shall report annually on its revenues and expenditures relating to the solid and hazardous waste programs overseen or administered by the department.

12. Prevent pollution through the regulation of the storage, handling and transportation of solids, liquids and gases that may cause or contribute to pollution.

13. Promote the restoration and reclamation of degraded or despoiled areas and natural resources.

14. Participate in the state civil defense program and develop the necessary organization and facilities to meet wartime or other disasters.

15. Cooperate with the Arizona-Mexico commission in the governor's office and with researchers at universities in this state to collect data and conduct projects in the United States and Mexico on issues that are within the scope of the department's duties and that relate to quality of life, trade and economic development in this state in a manner that will help the Arizona-Mexico commission to assess and enhance the economic competitiveness of this state and of the Arizona-Mexico region.

16. Unless specifically authorized by the legislature, ensure that state laws, rules, standards, permits, variances and orders are adopted and construed to be consistent with and no not more stringent than the corresponding federal law that addresses the same subject matter. This paragraph does not adversely affect standards adopted by an Indian tribe under federal law.

17. Provide administrative and staff support for the oil and gas conservation commission.

B. The department, through the director, shall:

1. Contract for the services of outside advisers, consultants and aides reasonably necessary or desirable to enable the department to adequately perform its duties.

2. Contract and incur obligations reasonably necessary or desirable within the general scope of department activities and operations to enable the department to adequately perform its duties.

3. Utilize Use any medium of communication, publication and exhibition when disseminating information, advertising and publicity in any field of its purposes, objectives or duties.

4. Adopt procedural rules that are necessary to implement the authority granted under this title, but that are not inconsistent with other provisions of this title.

5. Contract with other agencies, including laboratories, in furthering any department program.

6. Use monies, facilities or services to provide matching contributions under federal or other programs that further the objectives and programs of the department.

7. Accept gifts, grants, matching monies or direct payments from public or private agencies or private persons and enterprises for department services and publications and to conduct programs that are consistent with the general purposes and objectives of this chapter. Monies received pursuant to this paragraph shall be deposited in the department fund corresponding to the service, publication or program provided.

8. Provide for the examination of any premises if the director has reasonable cause to believe that a violation of any environmental law or rule exists or is being committed on the premises. The director shall give the owner or operator the opportunity for its representative to accompany the director on an examination of those premises. Within forty-five days after the date of the examination, the department shall provide to the owner or operator a copy of any report produced as a result of any examination of the premises.

9. Supervise sanitary engineering facilities and projects in this state, authority for which is vested in the department, and own or lease land on which sanitary engineering facilities are located, and operate the facilities, if the director determines that owning, leasing or operating is necessary for the public health, safety or welfare.

10. Adopt and enforce rules relating to approving design documents for constructing, improving and operating sanitary engineering and other facilities for disposing of solid, liquid or gaseous deleterious matter.

11. Define and prescribe reasonably necessary rules regarding the water supply, sewage disposal and garbage collection and disposal for subdivisions. The rules shall:

(a) Provide for minimum sanitary facilities to be installed in the subdivision and may require that water systems plan for future needs and be of adequate size and capacity to deliver specified minimum quantities of drinking water and to treat all sewage.

(b) Provide that the design documents showing or describing the water supply, sewage disposal and garbage collection facilities be submitted with a fee to the department for review and that no lots in any subdivision be offered for sale before compliance with the standards and rules has been demonstrated by approval of the design documents by the department.

12. Prescribe reasonably necessary measures to prevent pollution of water used in public or semipublic swimming pools and bathing places and to prevent deleterious conditions at those places. The rules shall prescribe minimum standards for the design of and for sanitary conditions at any public or semipublic swimming pool or bathing place and provide for abatement as public nuisances of premises and facilities that do not comply with the minimum standards. The rules shall be developed in cooperation with the director of the department of health services and shall be consistent with the rules adopted by the director of the department of health services pursuant to section 36-136, subsection I H, paragraph 10.

13. Prescribe reasonable rules regarding sewage collection, treatment, disposal and reclamation systems to prevent the transmission of sewage borne or insect borne diseases. The rules shall:

(a) Prescribe minimum standards for the design of sewage collection systems and treatment, disposal and reclamation systems and for operating the systems.

(b) Provide for inspecting the premises, systems and installations and for abating as a public nuisance any collection system, process, treatment plant, disposal system or reclamation system that does not comply with the minimum standards.

(c) Require that design documents for all sewage collection systems, sewage collection system extensions, treatment plants, processes, devices, equipment, disposal systems, on-site wastewater treatment facilities and reclamation systems be submitted with a fee for review to the department and may require that the design documents anticipate and provide for future sewage treatment needs.

(d) Require that construction, reconstruction, installation or initiation of any sewage collection system, sewage collection system extension, treatment plant, process, device, equipment, disposal system, on-site wastewater treatment facility or reclamation system conform with applicable requirements.

14. Prescribe reasonably necessary rules regarding excreta storage, handling, treatment, transportation and disposal. The rules may:

(a) Prescribe minimum standards for human excreta storage, handling, treatment, transportation and disposal and shall provide for inspection of premises, processes and vehicles and for abating as public nuisances any premises, processes or vehicles that do not comply with the minimum standards.

(b) Provide that vehicles transporting human excreta from privies, septic tanks, cesspools and other treatment processes shall be licensed by the department subject to compliance with the rules. The department may require payment of a fee as a condition of licensure. The department may establish by rule a fee as a condition of licensure, including a maximum fee. As part of the rulemaking process, there must be public notice and comment and a review of the rule by the joint legislative budget committee. The department shall not increase that fee by rule without specific statutory authority for the increase. The fees shall be deposited, pursuant to sections 35-146 and 35-147, in the solid waste fee fund established by section 49-881.

15. Perform the responsibilities of implementing and maintaining a data automation management system to support the reporting requirements of title III of the superfund amendments and reauthorization act of 1986 (P.L. 99-499) and article 2 of this chapter.

16. Approve remediation levels pursuant to article 4 of this chapter.

17. Establish or revise fees by rule pursuant to the authority granted under title 44, chapter 9, article 8 and chapters 4 and 5 of this title for the department to adequately perform its duties. All fees shall be fairly assessed and impose the least burden and cost to the parties subject to the fees. In establishing or revising fees, the department shall base the fees on:

(a) The direct and indirect costs of the department's relevant duties, including employee salaries and benefits, professional and outside services, equipment, in-state travel and other necessary operational expenses directly related to issuing licenses as defined in title 41, chapter 6 and enforcing the requirements of the applicable regulatory program.

(b) The availability of other funds for the duties performed.

(d) The fees charged for similar duties performed by the department, other agencies and the private sector.

18. Appoint a person with a background in oil and gas conservation to act on behalf of the oil and gas conservation commission and administer and enforce the applicable provisions of title 27, chapter 4 relating to the oil and gas conservation commission.

C. The department may:

1. Charge fees to cover the costs of all permits and inspections it performs to ensure compliance with rules adopted under section 49-203, except that state agencies are exempt from paying those fees that are not associated with the dredge and fill permit program established pursuant to chapter 2, article 3.2 of this title. For services provided under the dredge and fill permit program, a state agency shall pay either:

(a) The fees established by the department under the dredge and fill permit program.

(b) The reasonable cost of services provided by the department pursuant to an interagency service agreement.

2. Monies collected pursuant to this subsection shall be deposited, pursuant to sections 35-146 and 35-147, in the water quality fee fund established by section 49-210.

3. Contract with private consultants for the purposes of assisting the department in reviewing applications for licenses, permits or other authorizations to determine whether an applicant meets the criteria for issuance of the license, permit or other authorization. If the department contracts with a consultant under this paragraph, an applicant may request that the department expedite the application review by requesting that the department use the services of the consultant and by agreeing to pay the department the costs of the consultant's services. Notwithstanding any other law, monies paid by applicants for expedited reviews pursuant to this paragraph are appropriated to the department for use in paying consultants for services.

D. The director may:

1. If the director has reasonable cause to believe that a violation of any environmental law or rule exists or is being committed, inspect any person or property in transit through this state and any vehicle in which the person or property is being transported and detain or disinfect the person, property or vehicle as reasonably necessary to protect the environment if a violation exists.

2. Authorize in writing any qualified officer or employee in the department to perform any act that the director is authorized or required to do by law. END_STATUTE

Sec. 33. Initial terms of members of the state hospital governing board

A. Notwithstanding section 36-205.01, Arizona Revised Statutes, as added by this act, the initial terms of members of the state hospital governing board are:

1. One term ending January 1, 2027.

2. Two terms ending January 1, 2028.

B. The governor shall make all subsequent appointments as prescribed by statute.

Sec. 34. Succession; transfer; effect

A. As provided by this act, the state hospital governing board succeeds to the authority, powers, duties and responsibilities of the department of health services relating to the Arizona state hospital.

B. This act does not alter the effect of any actions that were taken or impair the valid obligations of the department of health services relating to the Arizona state hospital in existence before January 1, 2025.

C. Administrative rules and orders that were adopted by the department of health services relating to the Arizona state hospital continue in effect until superseded by administrative action by the state hospital governing board.

D. All administrative matters, contracts and judicial and quasi-judicial actions, whether completed, pending or in process, of the department of health services relating to the Arizona state hospital on January 1, 2025 are transferred to and retain the same status with the state hospital governing board.

E. All certificates, licenses, registrations, permits and other indicia of qualification and authority that were issued by the department of health services relating to the Arizona state hospital retain their validity for the duration of their terms of validity as provided by law.

F. All equipment, records, furnishings and other property, all data and investigative findings, all obligations and all appropriated monies that remain unexpended and unencumbered on January 1, 2025 of the department of health services relating to the Arizona state hospital are transferred to the state hospital governing board.

G. All personnel who are under the state personnel system and employed by the department of health services relating to the Arizona state hospital are transferred to comparable positions and pay classifications in the respective administrative units of the state hospital governing board on January 1, 2025.

Sec. 35. Conforming legislation

The legislative council staff shall prepare proposed legislation conforming the Arizona Revised Statutes to the provisions of this act for consideration in the fifty-sixth legislature, second regular session.

Sec. 36. Effective date

This act is effective from and after December 31, 2024.