Arizona 2024 Regular Session

Arizona Senate Bill SB1604 Compare Versions

Only one version of the bill is available at this time.

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1	1	REFERENCE TITLE: sober living; residential care; penalties State of Arizona Senate Fifty-sixth Legislature Second Regular Session 2024 SB 1604 Introduced by Senator Hatathlie An Act amending sections 36-414, 36-431.01 and 36-431.02, Arizona Revised Statutes; amending title 36, chapter 4, article 2, Arizona Revised Statutes, by adding section 36-431.03; amending section 36-2063, Arizona Revised Statutes; relating to residential care. (TEXT OF BILL BEGINS ON NEXT PAGE)
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9	9	REFERENCE TITLE: sober living; residential care; penalties
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14	14	REFERENCE TITLE: sober living; residential care; penalties
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64	64	An Act
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68	68	amending sections 36-414, 36-431.01 and 36-431.02, Arizona Revised Statutes; amending title 36, chapter 4, article 2, Arizona Revised Statutes, by adding section 36-431.03; amending section 36-2063, Arizona Revised Statutes; relating to residential care.
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78	78	Be it enacted by the Legislature of the State of Arizona: Section 1. Section 36-414, Arizona Revised Statutes, is amended to read: START_STATUTE36-414. Health services licensing fund; exemption A. The health services licensing fund is established consisting of monies deposited pursuant to sections 30-654, 32-1308, 32-2805, 36-405, 36-431.01, 36-765.05, 36-766.06, 36-851.01, 36-882, 36-897.01, and 36-1903 and 36-2063. The department of health services shall administer the fund. B. Monies in the fund are subject to legislative appropriation. C. Monies in the fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations. END_STATUTE Sec. 2. Section 36-431.01, Arizona Revised Statutes, is amended to read: START_STATUTE36-431.01. Civil penalties; violations; classification; enforcement; use of monies A. The director may shall assess a civil penalty against a person who violates this chapter or a rule adopted pursuant to this chapter in an amount of not to exceed five hundred dollars at least $5,000 and not more than $10,000 for each violation. Each day that a violation occurs constitutes a separate violation. B. The director may shall issue a notice of assessment that shall include the proposed amount of the assessment. A person may appeal the assessment by requesting a hearing pursuant to title 41, chapter 6, article 10. When an assessment is appealed, the director shall take no further action to enforce and collect the assessment until after the hearing. C. In determining the amount of the civil penalty pursuant to subsection A of this section, the department shall consider the following: 1. Repeated violations of statutes or rules. 2. Patterns of noncompliance. 3. Types of violations. 4. The severity of violations. 5. The potential for and occurrences of actual harm. 6. Threats to health and safety. 7. The number of persons affected by the violations. 8. The number of violations. 9. The size of the facility. 10. The length of time that the violations have been occurring. 11. The number of injuries caused. 12. The severity of the injuries caused. 13. The number of deaths caused. 14. The cause of deaths. D. Pursuant to interagency agreement specified in section 36-409, the director may shall assess a civil penalty, including interest, in accordance with 42 United States Code section 1396r. A person may appeal this assessment by requesting a hearing before the director in accordance with subsection B of this section. Civil penalty amounts may be established by rules adopted by the director that conform to guidelines or regulations adopted by the secretary of the United States department of health and human services pursuant to 42 United States Code section 1396r. E. Actions to enforce the collection of penalties assessed pursuant to subsections A and D of this section shall be brought by the attorney general or the county attorney in the name of the state in the justice court or the superior court in the county in which the violation occurred. F. Penalties assessed under subsection D of this section are in addition to and not in limitation of other penalties imposed pursuant to this chapter. All civil penalties and interest assessed pursuant to subsection D of this section shall be deposited, pursuant to sections 35-146 and 35-147, in the nursing care institution resident protection revolving fund established by section 36-431.02. The director shall use these monies for the purposes prescribed by 42 United States Code section 1396r, including payment for the costs of relocation of residents to other facilities, maintenance of operation of a facility pending correction of the deficiencies or closure and reimbursement of residents for personal monies lost. G. A residential care institution that operates in this state without a license in violation of this chapter is guilty of a class 6 felony and the director shall assess a civil penalty of at least $5,000 and not more than $10,000 for each violation. Each day the residential care institution operates without a license is a separate violation. G. h. The department shall transmit deposit penalties assessed under subsection A of this section to in the state general fund following funds as follows: 1. Eighty percent in the indigenous peoples protection revolving fund established by section 36-431.03. 2. five percent in the health services licensing fund established by section 36-414. The department shall use the monies deposited in the health services licensing fund pursuant to this paragraph for inspections and enforcement relating to residential care institutions. 3. fifteen percent in the nursing care institution resident protection revolving fund established by section 36-431.02. END_STATUTE Sec. 3. Section 36-431.02, Arizona Revised Statutes, is amended to read: START_STATUTE36-431.02. Nursing care institution resident protection revolving fund; use; nonreversion A. The nursing care institution resident protection revolving fund is established. The fund consists of monies received from civil penalties collected by the director pursuant to section 36-431.01, subsection D. B. The director shall use monies in the fund for the purposes prescribed in section 36-431.01, subsection F, subject to legislative appropriation. C. Monies in the fund are exempt from the provisions of section 35-190 relating to the lapsing of appropriations.END_STATUTE Sec. 4. Title 36, chapter 4, article 2, Arizona Revised Statutes, is amended by adding section 36-431.03, to read: START_STATUTE36-431.03. Indigenous peoples protection revolving fund A. The indigenous peoples protection revolving fund is established to support resiliency and healing of indigenous peoples in this state. the fund consists of monies deposited pursuant to section 36-431.01. Monies in the fund are continuously appropriated and are exempt from the provisions of section 35-190 relating to the lapsing of appropriations. The director shall administer the fund. B. The monies in the fund shall be used annually as follows: 1. Forty percent shall be transferred to tribal colleges in this state for programming in social work and behavioral health. 2. Twenty percent shall provide restitution payments for families of deceased victims of this state's behavioral health system and sober living homes. Each family of a deceased victim shall receive a minimum of $3,000 and the repatriation of the victim's human remains and expenses. 3. Forty percent shall be distributed to tribal communities for behavioral health treatment services and programs or residential homes, including behavioral health residential facilities, sober living homes and transitional homes.END_STATUTE Sec. 5. Section 36-2063, Arizona Revised Statutes, is amended to read: START_STATUTE36-2063. Fees; licensure; inspections; investigation; violation; classification; civil penalty; sanctions A. 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. 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 shall 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 shall take action authorized by this article. C. 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 the license. If a sober living home license is revoked in this state or any other state, the licensee of the sober living home whose license was revoked may not reapply for any license issued pursuant to this title for a period of at least five years. D. A sober living home that operates in this state without a license in violation of this article is guilty of a class 6 felony and the director shall assess a civil penalty of at least $5,000 and not more than $10,000 for each violation. Each day the sober living home operates without a license is a separate violation. C. E. The director may shall impose a civil penalty on a person that violates this article or the rules adopted pursuant to this article in an amount of at least $5,000 and not more than five hundred dollars $10,000 for each violation. Each day that a violation occurs constitutes a separate violation. The director may shall 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. F. 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. G. The department may contract with a third party to assist the department with licensure and inspections. END_STATUTE Sec. 6. Rulemaking exemption 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, through June 30, 2025.
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80	80	Be it enacted by the Legislature of the State of Arizona:
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82	82	Section 1. Section 36-414, Arizona Revised Statutes, is amended to read:
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84	84	START_STATUTE36-414. Health services licensing fund; exemption
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86	86	A. The health services licensing fund is established consisting of monies deposited pursuant to sections 30-654, 32-1308, 32-2805, 36-405, 36-431.01, 36-765.05, 36-766.06, 36-851.01, 36-882, 36-897.01, and 36-1903 and 36-2063. The department of health services shall administer the fund.
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88	88	B. Monies in the fund are subject to legislative appropriation.
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90	90	C. Monies in the fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations. END_STATUTE
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92	92	Sec. 2. Section 36-431.01, Arizona Revised Statutes, is amended to read:
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94	94	START_STATUTE36-431.01. Civil penalties; violations; classification; enforcement; use of monies
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96	96	A. The director may shall assess a civil penalty against a person who violates this chapter or a rule adopted pursuant to this chapter in an amount of not to exceed five hundred dollars at least $5,000 and not more than $10,000 for each violation. Each day that a violation occurs constitutes a separate violation.
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98	98	B. The director may shall issue a notice of assessment that shall include the proposed amount of the assessment. A person may appeal the assessment by requesting a hearing pursuant to title 41, chapter 6, article 10. When an assessment is appealed, the director shall take no further action to enforce and collect the assessment until after the hearing.
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100	100	C. In determining the amount of the civil penalty pursuant to subsection A of this section, the department shall consider the following:
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102	102	1. Repeated violations of statutes or rules.
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104	104	2. Patterns of noncompliance.
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106	106	3. Types of violations.
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108	108	4. The severity of violations.
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110	110	5. The potential for and occurrences of actual harm.
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112	112	6. Threats to health and safety.
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114	114	7. The number of persons affected by the violations.
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116	116	8. The number of violations.
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118	118	9. The size of the facility.
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120	120	10. The length of time that the violations have been occurring.
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122	122	11. The number of injuries caused.
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124	124	12. The severity of the injuries caused.
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126	126	13. The number of deaths caused.
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128	128	14. The cause of deaths.
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130	130	D. Pursuant to interagency agreement specified in section 36-409, the director may shall assess a civil penalty, including interest, in accordance with 42 United States Code section 1396r. A person may appeal this assessment by requesting a hearing before the director in accordance with subsection B of this section. Civil penalty amounts may be established by rules adopted by the director that conform to guidelines or regulations adopted by the secretary of the United States department of health and human services pursuant to 42 United States Code section 1396r.
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132	132	E. Actions to enforce the collection of penalties assessed pursuant to subsections A and D of this section shall be brought by the attorney general or the county attorney in the name of the state in the justice court or the superior court in the county in which the violation occurred.
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134	134	F. Penalties assessed under subsection D of this section are in addition to and not in limitation of other penalties imposed pursuant to this chapter. All civil penalties and interest assessed pursuant to subsection D of this section shall be deposited, pursuant to sections 35-146 and 35-147, in the nursing care institution resident protection revolving fund established by section 36-431.02. The director shall use these monies for the purposes prescribed by 42 United States Code section 1396r, including payment for the costs of relocation of residents to other facilities, maintenance of operation of a facility pending correction of the deficiencies or closure and reimbursement of residents for personal monies lost.
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136	136	G. A residential care institution that operates in this state without a license in violation of this chapter is guilty of a class 6 felony and the director shall assess a civil penalty of at least $5,000 and not more than $10,000 for each violation. Each day the residential care institution operates without a license is a separate violation.
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138	138	G. h. The department shall transmit deposit penalties assessed under subsection A of this section to in the state general fund following funds as follows:
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140	140	1. Eighty percent in the indigenous peoples protection revolving fund established by section 36-431.03.
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142	142	2. five percent in the health services licensing fund established by section 36-414. The department shall use the monies deposited in the health services licensing fund pursuant to this paragraph for inspections and enforcement relating to residential care institutions.
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144	144	3. fifteen percent in the nursing care institution resident protection revolving fund established by section 36-431.02. END_STATUTE
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146	146	Sec. 3. Section 36-431.02, Arizona Revised Statutes, is amended to read:
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148	148	START_STATUTE36-431.02. Nursing care institution resident protection revolving fund; use; nonreversion
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150	150	A. The nursing care institution resident protection revolving fund is established. The fund consists of monies received from civil penalties collected by the director pursuant to section 36-431.01, subsection D.
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152	152	B. The director shall use monies in the fund for the purposes prescribed in section 36-431.01, subsection F, subject to legislative appropriation.
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154	154	C. Monies in the fund are exempt from the provisions of section 35-190 relating to the lapsing of appropriations.END_STATUTE
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156	156	Sec. 4. Title 36, chapter 4, article 2, Arizona Revised Statutes, is amended by adding section 36-431.03, to read:
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158	158	START_STATUTE36-431.03. Indigenous peoples protection revolving fund
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160	160	A. The indigenous peoples protection revolving fund is established to support resiliency and healing of indigenous peoples in this state. the fund consists of monies deposited pursuant to section 36-431.01. Monies in the fund are continuously appropriated and are exempt from the provisions of section 35-190 relating to the lapsing of appropriations. The director shall administer the fund.
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162	162	B. The monies in the fund shall be used annually as follows:
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164	164	1. Forty percent shall be transferred to tribal colleges in this state for programming in social work and behavioral health.
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166	166	2. Twenty percent shall provide restitution payments for families of deceased victims of this state's behavioral health system and sober living homes. Each family of a deceased victim shall receive a minimum of $3,000 and the repatriation of the victim's human remains and expenses.
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168	168	3. Forty percent shall be distributed to tribal communities for behavioral health treatment services and programs or residential homes, including behavioral health residential facilities, sober living homes and transitional homes.END_STATUTE
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170	170	Sec. 5. Section 36-2063, Arizona Revised Statutes, is amended to read:
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172	172	START_STATUTE36-2063. Fees; licensure; inspections; investigation; violation; classification; civil penalty; sanctions
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174	174	A. 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.
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176	176	B. 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 shall 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 shall take action authorized by this article.
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178	178	C. 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 the license. If a sober living home license is revoked in this state or any other state, the licensee of the sober living home whose license was revoked may not reapply for any license issued pursuant to this title for a period of at least five years.
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180	180	D. A sober living home that operates in this state without a license in violation of this article is guilty of a class 6 felony and the director shall assess a civil penalty of at least $5,000 and not more than $10,000 for each violation. Each day the sober living home operates without a license is a separate violation.
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182	182	C. E. The director may shall impose a civil penalty on a person that violates this article or the rules adopted pursuant to this article in an amount of at least $5,000 and not more than five hundred dollars $10,000 for each violation. Each day that a violation occurs constitutes a separate violation. The director may shall 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.
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184	184	D. F. 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.
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186	186	E. G. The department may contract with a third party to assist the department with licensure and inspections. END_STATUTE
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188	188	Sec. 6. Rulemaking exemption
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190	190	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, through June 30, 2025.