ARIZONA STATE SENATE
Phoenix, Arizona
child care facilities;
ownership; disclosure
Purpose
Requires a child care
facility, operating as a corporation, to provide the Department of Health
Services (DHS) with information on all controlling persons.
Background
Currently, statute does not
require a child care facility operating as a corporation to provide DHS with a
list of controlling persons. In a case where DHS takes action against a child
care facility, the same controlling person(s) could form a new entity for the
purpose of opening a new child care facility. For example, within the last six
years, the Office of Child Care Licensure in DHS has taken enforcement action –
revocation or denial – on eight child care facilities for health and safety
violations. Of the eight, five licenses were either revoked or denied.
According to DHS, each of these controlling persons reopened a child care
facility within a short period of time.
Although DHS has entered
into stipulation agreements with these facilities, two of them have violated
their agreements, in part or in total. DHS has requested S.B. 1067 in an
attempt to protect the health and safety of children in child care facilities
by requiring a licensee or applicant for licensure to file a list of
controlling persons with the Department.
There are no costs to the
general fund associated with the provisions of this measure.
Provisions
1. Adds to the list of information on a child care facility license or renewal application the name, birth date and address of each controlling person and an affirmation that no controlling person has been denied or lost a certificate or license to operate a child care facility as a result of endangering the safety of children.
2. Defines “controlling person”.
3. Requires each licensee to be a resident of this state and a citizen of the U.S. or a legal resident alien.
4. Stipulates qualifications for corporations and partnerships.
5. Prohibits DHS from issuing or renewing a license unless a list of controlling persons is on file with DHS.
6. Requires an application or licensee to notify DHS within thirty days after the election of any new officer or director or of any change in the controlling persons.
7. Requires each new officer, director or owner to provide DHS with an address and affirmation that the applicant has not been denied or lost a certificate or license to operate a child care facility as a result of endangering the health and safety of children.
8. Requires each applicant or licensee to designate an agent to receive communications from DHS, and to file and sign documents.
9. Requires the agent to be a controlling person, a U.S. citizen of legal resident and a resident of the state.
10. Makes conforming changes.
11. Provides for a general effective date.
Amendments
Adopted by the House of Representatives
1. Narrows the definition of "controlling person" by removing:
a. A person who can direct or cause the direction of management and policies of an applicant or licensee.
b. Vice-presidents, officers and members of the board of directors from the definition of "controlling person."
2. Removes the name, birth date and address of each controlling person from a child care facility license.
3. Increases the time frame, from 10 days to 30 days, for an applicant or licensee to notify DHS after the election of any new officer or director or of any change in the controlling persons.
4. Replaces the requirement for each new officer, director or owner to provide information as requested by DHS with a requirement to provide an address and an affirmation that the applicant has not been denied or lost a certificate or license to operate a child care facility as a result of endangering the health and safety of children.
5. Contains conforming and technical changes.
Senate Action House
Action
HEA 1/16/01 DP 8-0-0-0 HEA 3/19/01 DPA 8-0-0-2-0
3rd Read 1/24/01 29-0-1-0 CED 4/2/01 DP 8-0-0-2-0
Final Read 4/16/01 26-0-4 3rd Read 4/9/01 58-0-2-0
Signed by the Governor 4/19/01
Chapter 152
Prepared by Senate Staff
May 15, 2001