House of Representatives

SB 1067

child care facilities; ownership; disclosure

Sponsors: Senators Gerard: Hartley

DPA	Committee on Health
x	Caucus and COW
	As Passed the House

SB 1067 requires child care facilities operating as corporations to submit a list of all controlling persons to the Department of Health Services.

History

Current statute does not require child care facilities operating as corporations to submit a list of controlling persons to the Department of Health Services (DHS). When a license is revoked, if DHS has no record of the controlling persons, they can form a new corporation and open another facility without the knowledge of DHS. SB 1067 defines controlling person and requires prescribed information about controlling persons be included in the statutorily required child care facility license, which is obtained from DHS.

Provisions

· Defines controlling person to be a person who:

Ø Has the power to direct the management and policies of a licensee.

Ø Has direct or indirect ownership, the power to vote at least 10 per cent of outstanding voting securities, or the control of director elections.

Ø Is the general or limited partner who holds at least 10 per cent of the voting rights.

Ø Is the President, CEO, Vice President, a member of the board of directors, is an officer, an incorporator or an agent of anyone owning at least 10 per cent of the voting securities.

Ø Holds 10 per cent or more of the liabilities.

· Adds to the information required on a child care facility license the name, birth date, and address of all controlling persons for that facility.

· Requires a licensee to be a U.S. citizen or a legal resident alien who is a resident of Arizona and prescribes qualifications that corporations and partnerships must follow.

· Prohibits DHS from issuing or renewing a license if a complete list of controlling persons is not on file.

· Requires the applicant or licensee to notify DHS within 10 days of any changes in controlling persons.

· Requires each applicant or licensee to authorize an agent to act on their behalf to receive information from DHS. The agent must be a controlling person, a resident of Arizona and either a U.S. citizen or a legal resident alien.

SB 1067 was amended in Health Committee as follows:

· Eliminates members of the board, vice-presidents and officers from the definition of controlling persons.

· Requires the license and renewal applications to include the business or residential address of each controlling person and an affirmation that no controlling person has been denied or lost a license or certificate to operate a child care facility for reasons that relate to the endangerment of the health and safety of children.

· Removes from the license the names, birth dates and addresses of controlling persons.

· Requires a licensee to be a citizen of the United States and Arizona. Partnerships shall have at least one partner who meets residency requirements.

· Increases the timeframe for notifying DHS of changes in the controlling persons from ten to thirty days.

· Makes technical changes.

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· 44th Legislature

· Second Regular Session 2 March 19, 2001

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