Reference Title: developmental disabilities; transfer transition

AN ACT
AMENDING SECTION 36-551, ARIZONA REVISED STATUTES; AMENDING SECTIONS 36-553, 36-554 AND 36-572, ARIZONA REVISED STATUTES; REPEALING SECTIONS 36-591 THROUGH 36-595, ARIZONA REVISED STATUTES; AMENDING TITLE 36, CHAPTER 5.1, ARTICLE 3, ARIZONA REVISED STATUTES, BY ADDING NEW SECTIONS 36-591 THROUGH 36-595 AND SECTIONS 36-595.01 AND 36-595.02; REPEALING SECTION 41-2997.11, ARIZONA REVISED STATUTES; AMENDING TITLE 41, CHAPTER 27, ARTICLE 2, ARIZONA REVISED STATUTES, BY ADDING SECTION 41-3001.05; RELATING TO DEVELOPMENTAL DISABILITIES.

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

Section 1. Section 36-551, Arizona Revised Statutes, is amended to read:

36-551 . Definitions

In this chapter, unless the context otherwise requires:

1. "Adaptive behavior" means the effectiveness or degree to which the individual meets the standards of personal independence and social responsibility expected of the person's age and cultural group.

2. "Adult developmental home" means a residential setting in a family home that IN WHICH THE CARE, PHYSICAL CUSTODY AND SUPERVISION OF THE ADULT CLIENT ARE THE RESPONSIBILITY, UNDER A TWENTY-FOUR HOUR CARE MODEL, OF THE LICENSEE WHO, IN THAT CAPACITY, IS NOT AN EMPLOYEE OF THE DIVISION OR OF A SERVICE PROVIDER AND THE HOME provides the following services to for a group of siblings or up to three adults with developmental disabilities:

(a) Room and board.

(b) Habilitation.

(c) Appropriate personal care.

(d) Appropriate supervision.

3. "ADULT HOUSEHOLD MEMBER" MEANS A PERSON WHO IS AT LEAST EIGHTEEN YEARS OF AGE AND WHO RESIDES IN AN ADULT DEVELOPMENTAL HOME, CHILD DEVELOPMENTAL FOSTER HOME, SECURE SETTING OR HOME AND COMMUNITY BASED SERVICE SETTING FOR AT LEAST THIRTY DAYS OR WHO RESIDES IN THE HOUSEHOLD THROUGHOUT THE YEAR FOR MORE THAN A CUMULATIVE TOTAL OF THIRTY DAYS.

3. 4. "Advisory council" means the developmental disabilities advisory council.

4. 5. "Arizona training program facility" means a state operated institution for developmentally disabled clients of the department.

5. 6. "Attributable to mental retardation, epilepsy, cerebral palsy or autism" means that there is a causal relationship between the presence of an impairing condition and the developmental disability.

6. 7. "Autism" means a condition characterized by severe disorders in communication and behavior resulting in limited ability to communicate, understand, learn and participate in social relationships.

7. 8. "Case manager" means a person who coordinates the implementation of the individual program plan of goals, objectives and appropriate services for persons with developmental disabilities.

8. 9. "Case management" means coordinating the assistance needed by persons with developmental disabilities and their families in order to ensure that persons with developmental disabilities attain their maximum potential for independence, productivity and integration into the community.

9. 10. "Cerebral palsy" means a permanently disabling condition resulting from damage to the developing brain which may occur before, after or during birth and results in loss or impairment of control over voluntary muscles.

10. 11. "Child developmental foster home" means a residential setting in a family home that IN WHICH THE CARE, PHYSICAL CUSTODY AND SUPERVISION OF THE CHILD ARE THE RESPONSIBILITY, UNDER A TWENTY-FOUR HOUR CARE MODEL, OF THE LICENSEE WHO SERVES AS THE FOSTER PARENT OF THE CHILD IN THE HOME SETTING AND WHO, IN THAT CAPACITY, IS NOT AN EMPLOYEE OF THE DIVISION OR OF A SERVICE PROVIDER AND THE HOME provides the following services to FOR A GROUP OF SIBLINGS OR up to three children with developmental disabilities:

(a) Room and board.

(b) Habilitation.

(c) Appropriate personal care.

(d) Appropriate supervision.

11. 12. "Client" means a person receiving developmental disabilities services from the department.

12. 13. "Community residential setting" means a child developmental foster home, an adult developmental home , OR a secure setting or a residential living arrangement of any type for developmentally disabled persons operated OR CONTRACTED by the department , or by a profit or non-profit agency supervised or financially supported by the department, in which developmentally disabled PERSONS WITH DEVELOPMENTAL DISABILITIES live , AND ARE PROVIDED with appropriate supervision of the clients by the agency SERVICE PROVIDER responsible for the operation of the residential setting.

13. 14. "Consent" means voluntary informed consent. Consent is voluntary if not given as the result of coercion or undue influence. Consent is informed if the person giving the consent has been informed of and comprehends the nature, purpose, consequences, risks and benefits of the alternatives to the procedure, and has been informed and comprehends that withholding or withdrawal of consent will not prejudice the future provision of care and services to the client. In cases of unusual or hazardous treatment procedures performed pursuant to section 36-561, subsection A, experimental research, organ transplantation and non-therapeutic surgery, consent is informed if, in addition to the foregoing, the person giving the consent has been informed of and comprehends the method to be used in the proposed procedure.

15. "DAILY HABILITATION" MEANS HABILITATION AS DEFINED IN THIS SECTION EXCEPT THAT THE METHOD OF PAYMENT IS FOR ONE UNIT PER RESIDENTIAL DAY.

14. 16. "Department" means the department of economic security.

15. 17. "Developmental disability" means either a strongly demonstrated potential that a child under the age of six years is developmentally disabled or will become developmentally disabled, as determined by a test performed pursuant to section 36-694 or by other appropriate tests, or a severe, chronic disability which:

(a) Is attributable to mental retardation, cerebral palsy, epilepsy or autism.

(b) Is manifest before age eighteen.

(c) Is likely to continue indefinitely.

(d) Results in substantial functional limitations in three or more of the following areas of major life activity:

(i) Self-care.

(ii) Receptive and expressive language.

(iii) Learning.

(iv) Mobility.

(v) Self-direction.

(vi) Capacity for independent living.

(vii) Economic self-sufficiency.

(e) Reflects the need for a combination and sequence of individually planned or coordinated special, interdisciplinary or generic care, treatment or other services which are of lifelong or extended duration.

16. 18. "Director" means the director of the department of economic security.

17. 19. "Division" means the division of developmental disabilities in the department of economic security.

18. 20. "Epilepsy" means a neurological condition characterized by abnormal electrical-chemical discharge in the brain. This discharge is manifested in various forms of physical activities called seizures.

21. "GROUP HOME" MEANS A RESIDENTIAL SETTING FOR NOT MORE THAN SIX PERSONS WITH DEVELOPMENTAL DISABILITIES THAT IS OPERATED BY A SERVICE PROVIDER UNDER CONTRACT WITH THE DIVISION AND THAT PROVIDES, IN A SHARED LIVING ENVIRONMENT, ROOM AND BOARD AND DAILY HABILITATION. GROUP HOME DOES NOT INCLUDE AN ADULT DEVELOPMENTAL HOME, A CHILD DEVELOPMENTAL FOSTER HOME, SECURE SETTING OR AN INTERMEDIATE CARE FACILITY FOR THE MENTALLY RETARDED.

19. 22. "Guardian" means the person who, under court order, is the guardian of the person of another, but shall APPOINTED TO FULFILL THE POWERS AND DUTIES PRESCRIBED IN SECTION 14-5312. GUARDIAN DOES not include a guardian pursuant to section 36-547.

20. 23. "Habilitation" means the process by which an individual is assisted to acquire and maintain those life skills which enable the person to cope more effectively with the demands of his person and environment and to raise the level of his physical, mental and social efficiency.

21. 24. "Indigent" means a developmentally disabled person whose estate or parent is unable to bear the full cost of maintaining or providing services for such person in a developmental disabilities program.

22. 25. "Individual program plan" means a written statement of services to be provided to a person with developmental disabilities, including habilitation goals and objectives, which is developed following initial placement evaluation and revised after periodic evaluations.

26. "INTERMEDIATE CARE FACILITY FOR THE MENTALLY RETARDED" MEANS A FACILITY THAT PRIMARILY PROVIDES HEALTH AND REHABILITATIVE SERVICES TO PERSONS WITH DEVELOPMENTAL DISABILITIES THAT ARE ABOVE THE SERVICE LEVEL OF ROOM AND BOARD, SUPERVISORY CARE SERVICES OR PERSONAL CARE SERVICES AS DEFINED IN SECTION 36-401 BUT THAT ARE LESS INTENSIVE THAN SKILLED NURSING SERVICES.

23. 27. "Large group setting" means a setting which in addition to residential care provides support services such as therapy, recreation and transportation to seven or more developmentally disabled persons who require intensive supervision.

24. 28. "Least restrictive alternative" means an available program or facility which THAT fosters independent living and , which is the least confining for the client's condition and where service and treatment are provided in the least intrusive manner reasonably and humanely appropriate to the individual's needs.

25. 29. "Likely to continue indefinitely" means that the developmental disability has a reasonable likelihood of continuing for a protracted period of time , or for life.

26. 30. "Manifested before age eighteen" means that the disability must be apparent and have a substantially limiting effect on a person's functioning prior to age eighteen.

27. 31. "Medically needy resident" has the same meaning as provided PRESCRIBED in section 36-2905.

28. 32. "Mental retardation" means a condition involving subaverage general intellectual functioning and existing concurrently with deficits in adaptive behavior manifested before age eighteen.

29. 33. "Physician" means a person licensed to practice pursuant to title 32, chapter 13 or 17.

30. 34. "Placement evaluation" means an interview and evaluation of a developmentally disabled person and a review of the person's prior medical and program histories to determine the appropriate developmental disability programs and services for such THE person and recommendations for specific program placements for such THE person.

31. 35. "Psychologist" means a person licensed pursuant to title 32, chapter 19.1.

32. 36. "Respite services" means services which THAT provide a short-term or long-term interval of rest or relief to the care provider of a developmentally disabled person.

33. 37. "Responsible person" means the parent or guardian of a developmentally disabled minor, the guardian of a developmentally disabled adult or a developmentally disabled adult who is a client or an applicant for whom no guardian has been appointed.

38. "SECURE FACILITY" MEANS A FACILITY THAT IS LICENSED AND MONITORED BY THE DIVISION, THAT IS DESIGNED TO PROVIDE BOTH RESIDENTIAL AND PROGRAM SERVICES WITHIN THE FACILITY AND THAT IS OPERATED TO PREVENT CLIENTS FROM LEAVING BECAUSE OF THE DANGER THEY MAY PRESENT TO THEMSELVES AND THE COMMUNITY.

39. "SERVICE PROVIDER" MEANS A PERSON OR AGENCY THAT PROVIDES SERVICES TO CLIENTS PURSUANT TO A CONTRACT OR SERVICE AGREEMENT WITH THE DIVISION.

34. 40. "State operated service center" means a state owned or leased facility which THAT is operated by the department and which THAT shall provide PROVIDES temporary residential care and space for child and adult services which shall include respite care, crisis intervention and diagnostic evaluation.

35. 41. "Subaverage general intellectual functioning" means measured intelligence on standardized psychometric instruments of two or more standard deviations below the mean for the tests used.

36. 42. "Substantial functional limitation" means a limitation so severe that extraordinary assistance from other people, programs, services or mechanical devices is required to assist the person in performing appropriate major life activities.

37. 43. "Supervision" means the process by which the activities of an individual with developmental disabilities are directed, influenced or monitored.

Sec. 2. Section 36-553, Arizona Revised Statutes, is amended to read:

36-553 . Developmental disabilities advisory council; membership; duties

A. The developmental disabilities advisory council is established consisting of the following twelve members:

1. One parent or guardian of a child who is under the age of eighteen years and who is developmentally disabled.

2. One parent or guardian of a child who is eighteen years of age or older and who is developmentally disabled.

3. One member of the private sector who represents an agency that is licensed to provide licensed residential services to the developmentally disabled.

4. One member of the private sector who represents an agency that is licensed to provide licensed nonresidential services to the developmentally disabled.

5. One person with a developmental disability.

6. Two members each representing a different developmental disability advocacy organization.

7. One member from the designated protection and advocacy organization.

8. The director of the Arizona health care cost containment system administration or the director's designee. This person is a nonvoting member.

9. The assistant director of the division of developmental disabilities. This person is a nonvoting member.

10. One member from the governor's council on developmental disabilities.

11. One member representing foster parents of children with developmental disabilities.

B. The governor shall appoint all voting members. Voting members and their families shall not be employees of the department of economic security. In making these appointments the governor shall select at least five members who are clients, guardians, parents or other family members of persons with developmental disabilities. One of these five voting members shall represent a person who is eligible for long-term care services pursuant to chapter 29, article 2 of this title. The governor shall also consider geographic representation in making these appointments.

C. Council members APPOINTED PURSUANT TO SUBSECTION A, PARAGRAPHS 1 THROUGH 7 AND 11 OF THIS SECTION shall serve staggered three year terms. Beginning the effective date of this section SEPTEMBER 30, 1992 , no members may serve more than two full terms. A vacancy occurring on the council shall be filled by the governor appointing another qualified person to serve the remainder of the term.

D. The council chairman shall be chosen annually by a majority vote of the council. A majority of voting council members constitutes a quorum.

E. The council shall meet at least four times each year.

F. Council members are not eligible to receive compensation, but council members APPOINTED PURSUANT TO SUBSECTION A, PARAGRAPHS 1 THROUGH 7 AND 11 OF THIS SECTION are eligible to receive reimbursement of expenses pursuant to title 38, chapter 4, article 2.

G. The council shall review and make recommendations to the division regarding:

1. Coordinating and integrating services provided by state agencies and providers that have contracted with state agencies to provide developmental disability programs.

2. The health, safety, welfare and legal rights of persons with developmental disabilities.

3. Implementing the state plan.

4. Establishing and reviewing division policies and programs.

5. Annual rate setting methodology.

6. Assessing the division's annual needs.

7. Selecting the assistant director of the division.

8. Monitoring the division's annual budget.

9. THE SALE OR LEASE OF THE REAL PROPERTY AND IMPROVEMENTS ON THE REAL PROPERTY FORMERLY USED BY THE DEPARTMENT OF ECONOMIC SECURITY FOR THE ARIZONA TRAINING PROGRAM IN PHOENIX.

H. THE COUNCIL SHALL OVERSEE AND APPROVE EXPENDITURES OF MONIES FROM THE DEVELOPMENTALLY DISABLED CLIENT SERVICES TRUST FUND ESTABLISHED IN SECTION 36-572 FOLLOWING EXPENDITURE GUIDELINES ESTABLISHED BY THE COUNCIL.

H. I. The council shall provide the public with an opportunity to address the council at regularly publicized meetings.

I. J. The council shall submit an annual report of activities to the director, the governor, the president of the senate and the speaker of the house of representatives by December 31 of each year.

J. K. The department shall make meeting space available to the developmental disabilities advisory council at locations and times convenient to the council and shall provide secretarial and other staff support.

Sec. 3. Section 36-554, Arizona Revised Statutes, is amended to read:

36-554 . Powers and duties of director

A. The director shall:

1. Be responsible for developing and annually revising a statewide plan and initiating statewide programs and service for the developmentally disabled in locations where such THE programs and services are necessary, which shall include:

(a) Child services, which may include infant stimulation, developmental training for pre-school children and special education at Arizona training program facilities for school-age, developmentally disabled children residing at Arizona training program facilities who do not attend public school.

(b) Adult services, in coordination with the vocational rehabilitation services of the department, which may include but not be limited to job training and training and adjustment services, job development and placement, sheltered employment and other nonvocational day activity services for adults.

(c) Residential services, including various community residential settings, Arizona training program facilities and state operated service centers which provide varying levels of supervision in accordance with the developmental disability levels of the persons placed at such settings, facilities or centers. The department shall contract with private profit or nonprofit agencies to provide appropriate residential settings for developmentally disabled persons which provide for regular assistance and supervision of such persons and which provide varied developmental disability programs and services on or near the community residential setting.

(d) Resource services, which may include comprehensive evaluation services, information and referral services and outpatient rehabilitation and social development services. The department in providing developmental disability programs and services shall whenever practicable utilize qualified private contractors. In selecting private contractors, the department shall utilize those contractors which can clearly demonstrate an ability to perform such contract in accordance with standards and specifications adopted by the department.

2. Establish standards, provide technical assistance, and supervise all developmental disability programs and services operated by or supported by the department.

3. Coordinate the planning and implementation of developmental disability programs and activities, institutional and community, of all state agencies, provided this shall not be construed as depriving other state agencies of jurisdiction over, or the right to plan for, control, and operate programs that pertain to developmental disability programs but that fall within the primary jurisdiction of such other state agencies.

4. Periodically assess the effectiveness of the quality assurance system as required by 42 Code of Federal Regulations section 434.34 as it pertains to developmental disabilities programs.

5. License community residential settings pursuant to this chapter.

6. Develop rules establishing a procedure for handling complaints about community residential settings.

7. Inform in writing every parent or guardian of a developmentally disabled client residing at or transferring to a community residential setting of the complaint handling procedure.

8. As new community residential settings are developed over a period of time, reduce the clientele at Arizona training program facilities to those developmentally disabled persons who are required to be in Arizona training program facilities because the community lacks an appropriate community residential setting that meets their individual needs or whose parents or legal guardians want them in an Arizona training program facility.

9. Recommend compatible uses for Arizona training program facilities to the developmental disabilities oversight committee for its review.

10. 9. In conjunction with the division, individuals with developmental disabilities and their families, advocates, community members and service providers, develop, enhance and support environments that enable individuals with developmental disabilities to achieve and maintain physical well-being, personal and professional satisfaction, participation as family and community members and safety from abuse and exploitation.

11. 10. Do all other things reasonably necessary and proper to carry out his or her THE duties and the provisions of this chapter.

12. 11. Adopt rules regarding procurement procedures similar to those found in title 41, chapter 23.

B. Programs and services offered pursuant to subsection A, paragraph 1 of this section shall be provided in cooperation with public and private resources that can best meet the needs of developmentally disabled persons and that are located in the community and in proximity to the persons being served.

C. The director may:

1. Establish nonresidential outpatient programs for placement evaluation, care, treatment and training of developmentally disabled persons residing in the community who are not eligible for public school programs, and who do not have access to other state supported programs providing equivalent services.

2. Develop cooperative programs with other state departments and agencies, political subdivisions of the state, and private agencies concerned with and providing services for the developmentally disabled.

3. Contract for the purchase of services with other state and local governmental or private agencies. Such agencies are authorized to accept and expend funds received pursuant to such contracts.

4. Stimulate research by public and private agencies, institutions of higher learning, and hospitals in the interest of the prevention of developmental disabilities and improved methods of care and training for the developmentally disabled.

5. Apply for, accept, receive, hold in trust or use in accordance with the terms of the grant or agreement any public or private funds or properties, real or personal, granted or transferred to it for any purpose authorized by this chapter.

6. Make and amend rules from time to time as deemed necessary for the proper administration of programs and services for the treatment of developmentally disabled persons, for the admission of developmentally disabled persons to such THE programs and services and to carry out the purposes of this chapter.

Sec. 4. Section 36-572, Arizona Revised Statutes, is amended to read:

36-572 . Developmentally disabled client services trust fund

A. A developmentally disabled client services trust fund is established.

B. The fund consists of the proceeds of the sale or lease of the real property and buildings and improvements on the real property used by the department of economic security for the Arizona training program at Phoenix.

C. The proceeds of the sale or lease shall be deposited immediately with the state treasurer to be placed in the developmentally disabled client services trust fund. The developmentally disabled client services trust fund is separate and apart from all other funds.

D. Monies in the developmentally disabled client services trust fund may only be spent for client services provided by the department of economic security and with the approval of the developmental disabilities oversight committee ADVISORY COUNCIL . Those clients on the department's developmental disabilities waiting list shall also be included in these services as far as possible.

E. Expenditures from the developmentally disabled client services trust fund for the previous year shall be reported to the legislature in the course of the department of economic security's annual budget request. The trust fund shall not be a factor to influence or diminish the annual appropriation to the department for client services.

F. All monies in the developmentally disabled client services trust fund shall be invested by the state treasurer pursuant to section 35-313. The state treasurer shall annually report to the developmental disabilities oversight committee ADVISORY COUNCIL on the disposition of the fund.

G. It is the intent of the legislature that Interest or other income derived from the developmentally disabled client services trust fund shall be used to enhance the services presently available to the developmentally disabled and to extend such services to developmentally disabled persons not presently served. It is not the intent of the legislature that Interest or other income derived from the developmentally disabled client services trust fund SHALL NOT be used to supplant general fund appropriations for developmental disabilities programs.

Sec. 5. Repeal

Sections 36-591 through 36-595 , Arizona Revised Statutes, are repealed.

Sec. 6. Title 36, chapter 5.1, article 3, Arizona Revised Statutes, is amended by adding new sections 36-591 through 36-595 and sections 36-595.01 and 36-595.02, to read:

36-591 . Licensing; applicability

A. AN ADULT DEVELOPMENTAL HOME, CHILD DEVELOPMENTAL FOSTER HOME OR SECURE FACILITY SHALL BE LICENSED PURSUANT TO THIS ARTICLE.

B. GROUP HOMES, EXCEPT FOR THOSE DESCRIBED IN SUBSECTION E OF THIS SECTION SHALL BE LICENSED FOR HEALTH AND SAFETY OF THE FACILITY BY THE DEPARTMENT OF HEALTH SERVICES PURSUANT TO SECTION 36-132.

C. THE DIVISION SHALL NOTIFY THE DEPARTMENT OF HEALTH SERVICES OF:

1. SERVICE PROVIDERS WHO ENTER INTO CONTRACTS WITH THE DIVISION FOR GROUP HOMES.

2. ANY VIOLATION OF HEALTH AND SAFETY STANDARDS OBSERVED DURING MONITORING VISITS.

D. THE DEPARTMENT OF HEALTH SERVICES SHALL IMMEDIATELY NOTIFY THE DIVISION:

1. WHEN A GROUP HOME LICENSE HAS BEEN DENIED, SUSPENDED OR REVOKED.

2. OF ANY OTHER LICENSING ACTION TAKEN ON A GROUP HOME BY THE DEPARTMENT OF HEALTH SERVICES.

3. OF SUBSTANTIATED COMPLAINTS REGARDING HEALTH AND SAFETY.

E. THE DIVISION SHALL ENSURE THAT STATE OPERATED RESIDENTIAL SETTINGS THAT ARE OWNED OR LEASED FACILITIES OPERATED BY THE DIVISION MEET THE SAME STANDARDS AS GROUP HOMES UNLESS THEY ARE CERTIFIED AS AN INTERMEDIATE CARE FACILITY FOR THE MENTALLY RETARDED PURSUANT TO 42 CODE OF FEDERAL REGULATIONS SECTION 483.400.

F. AN INTERMEDIATE CARE FACILITY FOR THE MENTALLY RETARDED IS NOT REQUIRED TO BE LICENSED IF IT IS CERTIFIED PURSUANT TO 42 CODE OF FEDERAL REGULATIONS SECTION 483.400.

36-592 . Adult developmental homes; child developmental foster homes; secure facilities; licensing requirements

A. AN APPLICANT FOR AN ADULT DEVELOPMENTAL HOME, CHILD DEVELOPMENTAL FOSTER HOME OR SECURE FACILITY LICENSE SHALL SUBMIT AN APPLICATION ON A FORM PRESCRIBED BY THE DEPARTMENT.

B. BEFORE ISSUING A LICENSE TO AN APPLICANT THE DEPARTMENT SHALL INVESTIGATE THE ACTIVITIES AND STANDARDS OF CARE WITHIN THE SETTING, THE FINANCIAL STABILITY OF THE APPLICANT, THE CHARACTER AND TRAINING OF THE APPLICANT AND THE ADEQUACY OF SERVICES. THE DEPARTMENT BY RULE SHALL ESTABLISH STANDARDS FOR LICENSURE.

C. EACH LICENSE SHALL STATE IN GENERAL TERMS THE KIND OF SETTING THE LICENSEE IS AUTHORIZED TO OPERATE AND SHALL PRESCRIBE THE NUMBER, AGES AND SEX OF CLIENTS.

D. A LICENSEE WHO HOLDS AN ADULT DEVELOPMENTAL HOME, CHILD DEVELOPMENTAL FOSTER HOME OR SECURE FACILITY LICENSE SHALL:

1. COMPLY WITH APPLICABLE HEALTH, SAFETY AND SANITATION CODES OR STANDARDS AND DOCUMENT ITS COMPLIANCE.

2. FILE REPORTS AS PRESCRIBED BY THE DEPARTMENT.

3. ALLOW THE DEPARTMENT TO INSPECT OR MONITOR ITS SERVICES AND FACILITY AND THE FACILITY'S BOOKS AND RECORDS.

4. COMPLY WITH RULES ADOPTED BY THE DEPARTMENT.

5. PROVIDE FOR THE HEALTH, SAFETY AND WELFARE OF ITS CLIENTS.

E. A LICENSE EXPIRES ONE YEAR FROM THE DATE OF ISSUANCE.

F. FOR EACH ADULT DEVELOPMENTAL HOME, CHILD DEVELOPMENTAL FOSTER HOME AND SECURE FACILITY, THE DEPARTMENT SHALL:

1. CONDUCT AN ANNUAL HOME VISIT.

2. MONITOR THE SETTINGS FOR COMPLIANCE WITH DEPARTMENT RULES AT LEAST TWO TIMES PER YEAR.

36-593 . Adult developmental homes; child developmental foster homes; secure facilities; provisional licenses

A. THE DEPARTMENT MAY ISSUE A PROVISIONAL LICENSE TO AN APPLICANT OR LICENSEE WHO IS TEMPORARILY UNABLE TO CONFORM TO STANDARDS OF CARE ESTABLISHED BY THE DEPARTMENT IF THE DEFICIENCIES CAN BE REMEDIED WITHIN SIX MONTHS.

B. A PROVISIONAL LICENSE IS VALID FOR SIX MONTHS AND SHALL NOT BE RENEWED.

C. THE DEPARTMENT SHALL NOT ISSUE A PROVISIONAL LICENSE IF CONDITIONS EXIST THAT COULD ENDANGER THE HEALTH AND SAFETY OF CLIENTS RESIDING IN THE SETTING.

D. IF THE DEPARTMENT DETERMINES THAT THE APPLICANT OR LICENSEE MEETS THE STANDARDS ESTABLISHED BY THE DEPARTMENT, IT SHALL ISSUE A REGULAR LICENSE. THE REGULAR LICENSE IS VALID FOR ONE YEAR FROM THE DATE THE DEPARTMENT ISSUED THE PROVISIONAL LICENSE.

36-594 . Denial, suspension or revocation of license

THE DEPARTMENT MAY DENY, SUSPEND OR REVOKE A LICENSE PURSUANT TO TITLE 41, CHAPTER 6 FOR ANY ONE OR A COMBINATION OF THE FOLLOWING:

1. AN APPLICANT OR LICENSEE VIOLATES THIS CHAPTER, RULES ADOPTED PURSUANT TO THIS CHAPTER, FEDERAL OR STATE STATUTES OR CITY OR COUNTY ORDINANCES OR CODES.

2. AN APPLICANT OR LICENSEE REFUSES TO COOPERATE IN OBTAINING OR PROVIDING INFORMATION THE DEPARTMENT DEEMS NECESSARY TO DETERMINE IF THE DEPARTMENT'S STANDARDS HAVE BEEN MET.

3. AN EMPLOYEE, APPLICANT, LICENSEE OR ADULT HOUSEHOLD MEMBER OF AN ADULT DEVELOPMENTAL HOME, CHILD DEVELOPMENTAL FOSTER HOME OR SECURE FACILITY HAS BEEN CONVICTED OF, HAS BEEN FOUND BY A COURT TO HAVE COMMITTED OR IS REASONABLY BELIEVED TO HAVE COMMITTED A SEX OFFENSE, A DRUG RELATED OFFENSE, A THEFT RELATED OFFENSE, A VIOLENCE RELATED OFFENSE, CHILD ABUSE, CHILD NEGLECT, CONTRIBUTING TO THE DELINQUENCY OF A MINOR OR ABUSE OR NEGLECT OF A VULNERABLE ADULT. FOR THE PURPOSES OF THIS PARAGRAPH, "VULNERABLE ADULT" HAS THE SAME MEANING PRESCRIBED IN SECTION 13-3623.

4. AN APPLICANT OR LICENSEE MATERIALLY MISREPRESENTS OR WILFULLY FAILS TO DISCLOSE INFORMATION TO THE DEPARTMENT RELATING TO THE APPLICANT'S OR LICENSEE'S QUALIFICATIONS, EXPERIENCE OR PERFORMANCE OF RESPONSIBILITIES.

5. THE DEPARTMENT DETERMINES, USING CRITERIA ESTABLISHED IN STATUTE OR RULE, THAT AN APPLICANT OR LICENSEE IS UNABLE OR UNWILLING TO MEET THE PHYSICAL OR EMOTIONAL NEEDS OF CLIENTS.

36-595 . Programmatic and contractual monitoring

A. THE DEPARTMENT OF ECONOMIC SECURITY SHALL PERFORM PROGRAMMATIC AND CONTRACTUAL MONITORING OF THE SERVICES IT PROVIDES OR FOR WHICH IT CONTRACTS.

B. THE DEPARTMENT OF HEALTH SERVICES MAY DENY, SUSPEND OR REVOKE A LICENSE FOR A VIOLATION OF THIS ARTICLE OR DEPARTMENT RULES. AT LEAST THIRTY DAYS BEFORE THE DEPARTMENT DENIES, REVOKES OR SUSPENDS A LICENSE IT SHALL MAIL THE APPLICANT OR LICENSEE A NOTICE OF THAT PERSON'S RIGHT TO A HEARING. THE DEPARTMENT SHALL ISSUE THIS NOTICE BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED. THE NOTICE SHALL STATE THE HEARING DATE AND THE FACTS CONSTITUTING THE REASONS FOR THE DEPARTMENT'S ACTION AND SHALL CITE THE SPECIFIC STATUTE OR RULE VIOLATED.

C. IF THE PERSON DOES NOT RESPOND TO THE WRITTEN NOTICE, THE DEPARTMENT OF HEALTH SERVICES, AT THE EXPIRATION OF THE TIME FIXED IN THE NOTICE, SHALL TAKE THE ACTION PRESCRIBED IN THE NOTICE. IF THE PERSON, WITHIN THE PERIOD FIXED IN THE NOTICE, CONFORMS THE APPLICATION OR THE OPERATION OF THE FACILITY TO THE APPLICABLE STATUTE OR RULE, THE DEPARTMENT MAY GRANT THE LICENSE OR WITHDRAW THE NOTICE OF SUSPENSION OR REVOCATION.

36-595.01 . Access to facilities

A GROUP HOME SHALL ALLOW THE FOLLOWING TO INSPECT THE FACILITY AT REASONABLE TIMES:

1. PARENTS AND GUARDIANS OF FACILITY RESIDENTS.

2. MEMBERS OF THE DEVELOPMENTAL DISABILITIES ADVISORY COUNCIL.

3. MEMBERS OF RECOGNIZED, ESTABLISHED GROUPS THAT ADVOCATE FOR THE DEVELOPMENTALLY DISABLED.

36-595.02 . Investigation of complaints

THE DEPARTMENT SHALL RECEIVE REPORTS OF COMPLAINTS ABOUT SERVICES PROVIDED BY THE DEPARTMENT AND MAY REFER THOSE REPORTS TO LICENSING, CONTRACTING OR PROGRAM AUTHORITIES, OR LAW ENFORCEMENT.

Sec. 7. Repeal

Section 41-2997.11 , Arizona Revised Statutes, is repealed.

Sec. 8. Title 41, chapter 27, article 2, is amended by adding section 41-3001.05, to read:

41-3001.05 . Developmental disabilities advisory council; termination July 1, 2001

A. THE DEVELOPMENTAL DISABILITIES ADVISORY COUNCIL TERMINATES ON JULY 1, 2001.

B. TITLE 36, CHAPTER 5.1, ARTICLE 1 IS REPEALED ON JANUARY 1, 2002.

Sec. 9. Purpose

The purpose of the developmental disabilities advisory council is to review the actions of and make recommendations to the department of health services and the division of developmental disabilities in the department of economic security.

Sec. 10. Disclosure of agency responsibilities; rules

The department of health services and the department of economic security shall adopt compatible rules that prescribe the procedure by which each agency shall fully disclose to the public and licensees which agency is responsible for what licensing and monitoring activity related to the regulation of services to persons with developmental disabilities.

Sec. 11. Joint legislative committee on case management for the developmentally disabled; membership; duties

A. The joint legislative committee on case management for the developmentally disabled is established consisting of the following members:

1. Three members of the senate, who are appointed by the president of the senate, not more than two of whom shall be members of the same political party. The president shall designate one member as the committee cochairperson.

2. Three members of the house of representatives, who are appointed by the speaker of the house of representatives, not more than two of whom shall be members of the same political party. The speaker shall designate one member as the committee cochairperson.

3. Three parents of children with developmental disabilities. One shall be appointed by the governor, one by the president of the senate and one by the speaker of the house of representatives.

4. One member of the governor's council on developmental disabilities, who is appointed by the governor.

5. One parent of a developmentally disabled child with chronic illness, who is appointed by the president of the senate.

6. One member of a statewide developmental disabilities parent advocacy group, who is appointed by the speaker of the house of representatives.

7. The assistant director of the division of developmental disabilities in the department of economic security.

8. A member of an organization of developmental disability providers that has a contract with the state, who is appointed by the speaker of the house of representatives.

B. The joint legislative study committee shall:

1. Develop a comprehensive plan for implementing changes to the existing method of providing case management services to developmentally disabled children and adults in this state. The plan shall:

(a) Be designed to provide consumer choice for persons with developmental disabilities and their families.

(b) Include provisions for intake and assessment, coordination of service plans, case monitoring and advocacy.

(c) Contain clearly defined options for persons with developmental disabilities and their families that include service coordination by private providers or state employees.

(d) Provide for continuous involvement of persons with developmental disabilities and their families in the assessment, planning, evaluation of services, quality assurance and monitoring components of the program.

(e) Encourage contractual agreements with providers that support and implement a family-centered approach to the delivery of services to persons with developmental disabilities.

2. Develop the training, qualifications and a clearly defined model for parents of developmentally disabled children to qualify as case managers.

3. Recommend support services that will benefit persons with developmental disabilities and their families, including advocacy training for family members.

4. Examine the issues of privatized case management, including training, certification or accreditation of case managers, and make recommendations regarding their effectiveness and efficiency.

5. Take public testimony on each of the above referenced items.

6. Complete its review and make recommendations on or before December 1, 1997 to the governor, president of the senate, speaker of the house of representatives, the chairman of the senate family services committee, the chairman of the house of representatives human services committee, the director of the department of economic security, the secretary of state and the director of the department of library, archives and public records.

C. Committee members are not eligible to receive compensation but members appointed pursuant to subsection A, paragraphs 3, 4, 5 and 6 are eligible to receive reimbursement of expenses pursuant to title 38, chapter 4, article 2, Arizona Revised Statutes.

D. Appropriate legislative research staff shall provide research, support and technical assistance to the committee.

Sec. 12. Delayed repeal

Section 11 of this act is repealed from and after December 31, 1998.

APPROVED BY THE GOVERNOR APRIL 24, 1997.

FILED IN THE OFFICE OF THE SECRETARY OF STATE APRIL 24, 1997.