HB2827 - 562R

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

Section 1. Title 36, chapter 4, article 2, Arizona Revised Statutes, is amended by adding section 36-425.10, to read:

START_STATUTE36-425.10. Certified recovery residences; licensure; definition

A. The director shall license certified recovery residences to provide clinical and peer-led recovery services in this state.

B. For the purposes of this section, "certified recovery residence" means a residential care institution that is both licensed by the department and certified by a national accrediting body for recovery residences to provide clinical and peer-led recovery services. END_STATUTE

Sec. 2. Section 36-2061, Arizona Revised Statutes, is amended to read:

START_STATUTE36-2061. Definitions

In this article, unless the context otherwise requires:

1. "Certifying organization" means an organization that certifies homes as sober living homes, and that is affiliated with a national organization recognized by the department and whose primary function is to improve access to and the quality of sober living residences through standards, education, research and advocacy.

2. "Medication-assisted treatment" means the use of pharmacological medications that are approved by the United States food and drug administration, in combination with counseling and behavioral therapies, to provide a whole patient approach to the treatment of treating substance use disorders.

3. "Sober living home":

(a) Means any premises, place or building that provides alcohol-free or drug-free housing and that:

(a) (i) Promotes independent living and life skills development.

(b) (ii) May provide activities that are directed primarily toward recovery from substance use disorders.

(c) (iii) Provides a supervised, monitored or peer-led setting to a group of unrelated individuals who are recovering from substance use disorders.

(d) (iv) Does not provide any medical or clinical services or medication administration on-site, except for verification of abstinence.

(b) Does not include a health care institution as defined in section 36-401 or certified recovery residence as defined in section 36-425.10. END_STATUTE

Sec. 3. Section 36-2062, Arizona Revised Statutes, is amended to read:

START_STATUTE36-2062. Licensure; standards; use of title; violations; civil penalties

A. The director shall adopt rules to establish minimum standards and requirements for the licensure of sober living homes in this state necessary to ensure the public health, safety and welfare. The director may use the current standards adopted by any recognized national organization approved by the department as guidelines in prescribing the minimum standards and requirements under this subsection. The standards shall include:

1. A requirement that each sober living home to develop policies and procedures to allow individuals who are on medication-assisted treatment to continue to receive this treatment while living in the sober living home.

2. Consistent and fair practices for drug and alcohol testing, including frequency, that promote the residents' recovery.

3. Policies and procedures for the residence to maintain an environment that promotes the safety of the surrounding neighborhood and the community at large.

4. Policies and procedures for discharge planning of persons living in the residence that do not negatively impact the surrounding community.

5. A good neighbor policy to address neighborhood concerns and complaints.

6. A requirement that the operator of each sober living home have available for emergency personnel an up-to-date list of current medications and medical conditions of each person living in the home.

7. A policy that ensures residents are informed of all sober living home rules, residency requirements and resident agreements.

8. Policies and procedures for the management of managing all monies received and spent by the sober living home in accordance with standard accounting practices, including monies received from residents of the sober living home.

9. A requirement that each sober living home post a statement of resident rights that includes the right to file a complaint about the residence or provider and information about how to file a complaint.

10. Policies that promote recovery by requiring residents to participate in treatment, self-help groups or other recovery supports.

11. Policies requiring abstinence from alcohol and illicit drugs.

12. Procedures regarding the appropriate use and security of medication by a resident.

13. Policies regarding the maintenance of sober living homes, including the installation of functioning smoke detectors, carbon monoxide detectors and fire extinguishers and compliance with local fire codes applicable to comparable dwellings occupied by single families.

14. Policies and procedures that prohibit a sober living home owner, employee or administrator from requiring a resident to sign any document for the purpose of relinquishing the resident's public assistance benefits, including medical assistance benefits, cash assistance and supplemental nutrition assistance program benefits.

15. Policies and procedures for managing complaints about sober living homes.

16. Requirements for the notification of notifying a family member or other emergency contact designated by a resident under certain circumstances, including death due to an overdose.

B. The licensure of a sober living home under this article is for one year. A person operating a sober living home or a facility, building or structure in this state using a name that includes the phrase "sober living" or any other word or phrase that would lead the public to believe that the facility is a licensed sober living home that has failed to attain or maintain licensure of the sober living home shall pay a civil penalty of up to one thousand dollars not more than $1,000, plus an amount of not more than $300 per resident or bed in the sober living home, facility, building or structure for each violation.

C. To receive and maintain licensure, a sober living home must comply with all federal, state and local laws, including the Americans with disabilities act of 1990.

D. A treatment facility that is licensed by the department for the treatment of to treat substance use disorders and that has one or more sober living homes on the same campus as the facility's program shall obtain licensure for each sober living home pursuant to this article.

E. Once the director adopts the minimum standards as required in subsection A of this section, a person may not establish, conduct or maintain in this state a sober living home unless that person holds a current and valid license issued by the department or is certified as prescribed in section 36-2064. The license is valid only for the establishment, operation and maintenance of the sober living home. The licensee may not:

1. Imply by advertising, or directory listing or otherwise imply that the licensee is authorized to perform services more specialized or of a higher degree of care than is authorized by this article and the underlying adopted rules for sober living homes.

2. Transfer or assign the license. A license is valid only for the premises occupied by the sober living home at the time of its issuance.

F. Any business or entity that represents or advertises itself as supporting drug or alcohol recovery and that is not licensed pursuant to this article or chapter 4 of this title shall disclose in all advertisements, business documents, digital media and publicity materials whether it is licensed or unlicensed. The department shall establish a complaint process for enforcing this subsection. The director may assess civil penalties as prescribed in subsection B of this section for a violation of this subsection.

G. If a licensed health care institution is affiliated with an unlicensed sober living home or other facility, building or structure found to be engaging in fraudulent, abusive or misleading practices, the health care institution is subject to civil penalties pursuant to section 36-431.01 up to and including license suspension or revocation.

H. Each day a violation OCCURS under this section constitutes a separate violation. END_STATUTE

Sec. 4. Section 36-2063, Arizona Revised Statutes, is amended to read:

START_STATUTE36-2063. Licensure; application; inspection; fees; investigation; civil penalty; sanctions

A. On receipt of a properly completed application for a sober living home license, the director shall conduct an inspection of the sober living home. If an application for a license is submitted due to a planned change of ownership, the director shall determine the need for an inspection of the sober living home. Based on the results of the inspection and after the submission of the applicable licensing fee, the director shall either deny the license or issue a regular or provisional license. A license issued by the department shall be posted in a conspicuous location in the sober living home.

B. The director shall issue a license if the director determines that an applicant and the sober living home for which the license is sought substantially comply with the requirements of this article and rules adopted pursuant to this article and the applicant agrees to carry out a plan acceptable to the director to eliminate any deficiencies.

C. The director shall annually inspect the premises of the sober living home and investigate the qualifications of the applicant to ascertain whether the applicant and the sober living home are in substantial compliance with the requirements of this article and the rules adopted pursuant to this article.

A. D. The department shall establish fees for initial licensure and license renewal and a fee for the late payment of licensing fees that includes a grace period. The department shall deposit, pursuant to sections 35-146 and 35-147, ninety percent of the fees collected pursuant to this section in the health services licensing fund established by section 36-414 and ten percent of the fees collected pursuant to this section in the state general fund.

B. E. On a determination by the director that there is reasonable cause to believe a sober living home is not adhering to the licensing requirements of this article, the director and any duly designated employee or agent of the director may enter on and into the premises of any sober living home that is licensed or required to be licensed pursuant to this article at any reasonable time for the purpose of determining the state of compliance with this article, the rules adopted pursuant to this article and local fire ordinances or rules. Any application for licensure under this article constitutes permission for and complete acquiescence in any entry or inspection of the premises during the pendency of the application and, if licensed, during the term of the license. If an inspection reveals that the sober living home is not adhering to the licensing requirements established pursuant to this article, the director may take action authorized by this article. Any sober living home whose license has been suspended or revoked in accordance with this article is subject to inspection on application for relicensure or reinstatement of license.

C. F. Except as provided in section 36-2062, the director may impose a civil penalty on a person that violates this article or the rules adopted pursuant to this article in an amount of not more than five hundred dollars $500 for each violation. Each day that a violation occurs constitutes a separate violation. The director may issue a notice that includes the proposed amount of the civil penalty assessment. If a person requests a hearing to appeal an assessment, the director may not take further action to enforce and collect the assessment until the hearing process is complete. The director shall impose a civil penalty only for those days for which the violation has been documented by the department.

D. G. The department may impose sanctions and commence disciplinary actions against a licensed sober living home, including revoking the license. A license may not be suspended or revoked under this article without affording the licensee notice and an opportunity for a hearing as provided in title 41, chapter 6, article 10.

E. H. The department may contract with a third party to assist the department with licensure and inspections. END_STATUTE

Sec. 5. Repeal

Section 36-2064, Arizona Revised Statutes, is repealed.

Sec. 6. Section 36-2065, Arizona Revised Statutes, is amended to read:

START_STATUTE36-2065. Referrals; licensed sober living homes

Beginning January 1, 2019 on the effective date of this amendment to this section:

1. A state agency or a state-contracted vendor that directs substance abuse treatment shall refer a person only to a certified or licensed sober living home.

2. Only a certified or licensed sober living home may be eligible for federal or state funding to deliver sober living home services in this state.

3. Persons whose substance abuse treatment is funded with federal or state monies may be referred only to a certified or licensed sober living home.

4. A state or county court shall give first consideration to a certified or licensed sober living home when making residential recommendations for individuals under its supervision.

5. A health care institution that provides substance abuse treatment and that is licensed by the department shall refer a patient or client only to a certified or licensed sober living home.

6. A behavioral health provider who is licensed pursuant to title 32, chapter 33 shall refer a patient or client only to a certified or licensed sober living home. END_STATUTE

Sec. 7. Section 36-2066, Arizona Revised Statutes, is amended to read:

START_STATUTE36-2066. Posting; confidential information; exceptions

A. The department shall post on its public website the name and telephone number of each certified and licensed sober living home and shall update the list quarterly. The department may not disclose the address of a certified or licensed sober living home except to a local jurisdiction for zoning purposes, on the request of any of the following:

1. The owner of the property or sober living home.

2. A local jurisdiction or state agency that has demonstrated a bona fide statutory or ADMINISTRATIVE need for the address.

3. Local law enforcement and or emergency personnel in furtherance of bona fide law ENFORCEMENT or emergency activities.

B. An address that is disclosed pursuant to subsection A, paragraph 2 or 3 of this section may not be further disclosed except when necessary for the purpose of coordinating or otherwise sharing data for bona fide law enforcement, emergency, statutory or administrative activities.

C. A sober living home's address is not a public record and is not subject to title 39, chapter 1, article 2. END_STATUTE

Sec. 8. Exemption for rulemaking

Notwithstanding any other law, for the purposes of this act, the department of health services is exempt from the rulemaking requirements of title 41, chapters 6 and 6.1, Arizona Revised Statutes, until July 1, 2025.