House Engrossed pregnancy centers; grant program State of Arizona House of Representatives Fifty-seventh Legislature First Regular Session 2025 HOUSE BILL 2216 AN ACT Amending title 36, Arizona Revised Statutes, by adding chapter 42; relating to health care. (TEXT OF BILL BEGINS ON NEXT PAGE)
House Engrossed pregnancy centers; grant program
State of Arizona House of Representatives Fifty-seventh Legislature First Regular Session 2025
HOUSE BILL 2216
House Engrossed
pregnancy centers; grant program
State of Arizona
House of Representatives
Fifty-seventh Legislature
First Regular Session
2025
HOUSE BILL 2216
AN ACT
Amending title 36, Arizona Revised Statutes, by adding chapter 42; relating to health care.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona: Section 1. Title 36, Arizona Revised Statutes, is amended by adding chapter 42, to read: CHAPTER 42 PREGNANCY CENTERS ARTICLE 1. POSITIVE ALTERNATIVES FOR PREGNANCY AND PARENTING GRANT PROGRAM START_STATUTE36-4201. Definitions in this article, unless the context otherwise requires: 1. "Attending physician" means the physician who has primary responsibility at the time of reference for treating and caring for the client. 2. "Client" means a person who seeks or receives pregnancy support services. 3. "Contract management agency" or "agency" means a nongovernmental charitable organization in this state that is a 501(c)(3) tax-exempt organization under the Internal Revenue Code of 1986 and whose mission and practice is to promote alternatives to abortion services at no cost. 4. "Department" means the department of health services. 5. "Direct client service provider" or "provider" means a nonprofit organization that has a contractual relationship with the contract management agency and that provides direct pregnancy support services to clients at no cost. 6. "Pregnancy support services" means services that encourage childbirth instead of voluntary termination of pregnancy and that assist pregnant women or women who believe they may be pregnant to choose childbirth whether they intend to parent or select adoption for the child. 7. "Program" means the positive alternatives for pregnancy and parenting grant program established by this article. END_STATUTE START_STATUTE36-4202. Positive alternatives for pregnancy and parenting grant program; contract management agencies A. The positive alternatives for pregnancy and parenting grant program is established in the department. The purpose of the program is to develop a statewide effort that promotes healthy pregnancies and childbirth by awarding grants to nonprofit organizations that provide pregnancy support services. In addition to any legislative appropriations, the department may accept and spend gifts, grants and donations for the purposes of the program. Any monies received by the DDEPARTMENT for the program may be used only for the purposes of the program. B. The department shall oversee the program and is authorized to contract with a contract management agency to administer the program. The total annual administrative costs of the program for both the ddepartment and the contract management agency may not exceed ten percent of the awarded grants for that year. The contract management agency shall do at least the following: 1. establish a grant application process. 2. Evaluate grant applications and make recommendations to the department. 3. Communicate acceptance or denial of grant applications to direct client service providers. 4. Monitor compliance of direct client service providers with the terms and conditions of grants awarded. 5. Maintain records for each grant applicant and RECIPIENT. 6. Coordinate activities and correspondence between the department and direct client service providers. END_STATUTE START_STATUTE36-4203. Program services The program shall fund services that include providing the following: 1. Medical care and information, including pregnancy tests, sexually transmitted infection tests, other health screenings, ultrasound services, prenatal care and birth classes and planning. 2. Nutritional services and education. 3. Housing, education and employment assistance during pregnancy and for up to one year following a birth. 4. Adoption education, planning and services. 5. Child care assistance if necessary for the client to receive pregnancy support services. 6. Parenting education and support services for up to one year following a birth. 7. Material items that are supportive of pregnancy and childbirth, including cribs, car seats, clothing and formula and other safety devices. 8. Information regarding health care benefits, including available medicaid coverage for the client for pregnancy care that provides health coverage for the client's child at birth. END_STATUTE START_STATUTE36-4204. Program grants; awards; expenditures; prohibition; exception A. PRogram grants shall be awarded annually on a competitive basis to direct client service providers that display competent experience in providing at least five of the services listed in section 36-4203 pursuant to the guidelines and criteria established pursuant to this article. B. The department, with input from the contract management agency, shall determine the maximum grant amount to be awarded to each direct client service provider. Grant amounts may not exceed eighty-five percent of the annual revenue for the prior year of any provider. C. The grant agreement entered into between the contract management agency and a direct client service provider shall stipulate that the grant be used to provide any pregnancy support services at the discretion of the direct client service provider. The agreement shall further stipulate that the direct client service provider may not perform, promote or act as a referral for an abortion, except as otherwise provided in section 36-4205, subsection a, paragraph 9, and that grant monies may not be spent on or used to promote political or religious purposes, including counseling or written materials. This subsection does not prohibit any direct client service provider from promoting or spending nongrant monies on a political or religious purpose. END_STATUTE START_STATUTE36-4205. Grants; provider qualifications; requirements; reporting; confidentiality A. To be considered for a grant under this article, each direct client service provider shall: 1. Be a nonprofit organization incorporated in this state with a tax-exempt status pursuant to Section 501(c)(3) of the Internal Revenue Code of 1986. 2. Have a primary mission of promoting healthy pregnancy and childbirth. 3. Have a system of financial accountability consistent with generally accepted accounting principles, including an annual budget. 4. Have a board that hires and supervises a director who manages the organization's operations. 5. Have provided pregnancy support services for at least one year before applying for a grant. 6. at a minimum, Offer pregnancy tests and counseling for women who are or may be experiencing unplanned pregnancies. 7. Provide confidential and free pregnancy support services. 8. Provide each pregnant client with accurate information on the developmental characteristics of babies and unborn children, including offering printed materials on fetal development and the assistance that is available following a birth. 9. Ensure that grant monies awarded pursuant to this article are not used to: (a) Encourage or affirmatively counsel a client to have an abortion unless the client's attending physician diagnoses a condition that makes an abortion necessary to prevent the woman's death. (b) provide the woman an abortion. (c) directly refer the woman to an abortion provider for an abortion. 10. Maintain confidentiality of all data, files and records of clients related to the services provided and in compliance with state and federal laws. B. The department shall publish the direct client service provider criteria on its website. C. Each direct client service provider shall maintain accurate records and report data to the agency annually on forms and in the manner required by the department. Reports shall include the number of the direct client service provider's clients who: 1. Used the direct client service provider's pregnancy support services. 2. Are or were pregnant. 3. Chose childbirth after receiving pregnancy support services. 4. Chose adoption after receiving pregnancy support services. 5. Chose abortion after receiving pregnancy support services. D. Each provider may be required to provide other information and data at the discretion of the department. E. The department, the contract management agency and each direct client service provider shall maintain confidentiality of all data, files and records of clients related to the services provided under this article pursuant to federal and state laws related to privacy of medical records, including requirements under the health insurance portability and accountability act (45 Code of Federal Regulations section 164.524). END_STATUTE START_STATUTE36-4206. Annual audit; annual report A. Each direct client service provider shall cause an annual audit to be conducted by an independent certified public accountant within one hundred twenty days after the end of the contract management agency's fiscal year verifying that the direct client service provider is in compliance with all requirements of this article and any other requirements of the department. The results of the audits shall be provided to the department annually. B. On or before september 1 of each year, the department shall report to the governor, the speaker of the house of representatives and the president of the senate, and shall provide a copy of the report to the secretary of state, the following information for the immediately preceding fiscal year: 1. The amount of any gifts, grants or donations received for the program. 2. The total amount of program expenses and the amount of monies awarded as grants to direct client service providers. 3. The results of the audits conducted pursuant to subsection A of this section. END_STATUTE
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 36, Arizona Revised Statutes, is amended by adding chapter 42, to read:
CHAPTER 42
PREGNANCY CENTERS
ARTICLE 1. POSITIVE ALTERNATIVES FOR PREGNANCY
AND PARENTING GRANT PROGRAM
START_STATUTE36-4201. Definitions
in this article, unless the context otherwise requires:
1. "Attending physician" means the physician who has primary responsibility at the time of reference for treating and caring for the client.
2. "Client" means a person who seeks or receives pregnancy support services.
3. "Contract management agency" or "agency" means a nongovernmental charitable organization in this state that is a 501(c)(3) tax-exempt organization under the Internal Revenue Code of 1986 and whose mission and practice is to promote alternatives to abortion services at no cost.
4. "Department" means the department of health services.
5. "Direct client service provider" or "provider" means a nonprofit organization that has a contractual relationship with the contract management agency and that provides direct pregnancy support services to clients at no cost.
6. "Pregnancy support services" means services that encourage childbirth instead of voluntary termination of pregnancy and that assist pregnant women or women who believe they may be pregnant to choose childbirth whether they intend to parent or select adoption for the child.
7. "Program" means the positive alternatives for pregnancy and parenting grant program established by this article. END_STATUTE
START_STATUTE36-4202. Positive alternatives for pregnancy and parenting grant program; contract management agencies
A. The positive alternatives for pregnancy and parenting grant program is established in the department. The purpose of the program is to develop a statewide effort that promotes healthy pregnancies and childbirth by awarding grants to nonprofit organizations that provide pregnancy support services. In addition to any legislative appropriations, the department may accept and spend gifts, grants and donations for the purposes of the program. Any monies received by the DDEPARTMENT for the program may be used only for the purposes of the program.
B. The department shall oversee the program and is authorized to contract with a contract management agency to administer the program. The total annual administrative costs of the program for both the ddepartment and the contract management agency may not exceed ten percent of the awarded grants for that year. The contract management agency shall do at least the following:
1. establish a grant application process.
2. Evaluate grant applications and make recommendations to the department.
3. Communicate acceptance or denial of grant applications to direct client service providers.
4. Monitor compliance of direct client service providers with the terms and conditions of grants awarded.
5. Maintain records for each grant applicant and RECIPIENT.
6. Coordinate activities and correspondence between the department and direct client service providers. END_STATUTE
START_STATUTE36-4203. Program services
The program shall fund services that include providing the following:
1. Medical care and information, including pregnancy tests, sexually transmitted infection tests, other health screenings, ultrasound services, prenatal care and birth classes and planning.
2. Nutritional services and education.
3. Housing, education and employment assistance during pregnancy and for up to one year following a birth.
4. Adoption education, planning and services.
5. Child care assistance if necessary for the client to receive pregnancy support services.
6. Parenting education and support services for up to one year following a birth.
7. Material items that are supportive of pregnancy and childbirth, including cribs, car seats, clothing and formula and other safety devices.
8. Information regarding health care benefits, including available medicaid coverage for the client for pregnancy care that provides health coverage for the client's child at birth. END_STATUTE
START_STATUTE36-4204. Program grants; awards; expenditures; prohibition; exception
A. PRogram grants shall be awarded annually on a competitive basis to direct client service providers that display competent experience in providing at least five of the services listed in section 36-4203 pursuant to the guidelines and criteria established pursuant to this article.
B. The department, with input from the contract management agency, shall determine the maximum grant amount to be awarded to each direct client service provider. Grant amounts may not exceed eighty-five percent of the annual revenue for the prior year of any provider.
C. The grant agreement entered into between the contract management agency and a direct client service provider shall stipulate that the grant be used to provide any pregnancy support services at the discretion of the direct client service provider. The agreement shall further stipulate that the direct client service provider may not perform, promote or act as a referral for an abortion, except as otherwise provided in section 36-4205, subsection a, paragraph 9, and that grant monies may not be spent on or used to promote political or religious purposes, including counseling or written materials. This subsection does not prohibit any direct client service provider from promoting or spending nongrant monies on a political or religious purpose. END_STATUTE
START_STATUTE36-4205. Grants; provider qualifications; requirements; reporting; confidentiality
A. To be considered for a grant under this article, each direct client service provider shall:
1. Be a nonprofit organization incorporated in this state with a tax-exempt status pursuant to Section 501(c)(3) of the Internal Revenue Code of 1986.
2. Have a primary mission of promoting healthy pregnancy and childbirth.
3. Have a system of financial accountability consistent with generally accepted accounting principles, including an annual budget.
4. Have a board that hires and supervises a director who manages the organization's operations.
5. Have provided pregnancy support services for at least one year before applying for a grant.
6. at a minimum, Offer pregnancy tests and counseling for women who are or may be experiencing unplanned pregnancies.
7. Provide confidential and free pregnancy support services.
8. Provide each pregnant client with accurate information on the developmental characteristics of babies and unborn children, including offering printed materials on fetal development and the assistance that is available following a birth.
9. Ensure that grant monies awarded pursuant to this article are not used to:
(a) Encourage or affirmatively counsel a client to have an abortion unless the client's attending physician diagnoses a condition that makes an abortion necessary to prevent the woman's death.
(b) provide the woman an abortion.
(c) directly refer the woman to an abortion provider for an abortion.
10. Maintain confidentiality of all data, files and records of clients related to the services provided and in compliance with state and federal laws.
B. The department shall publish the direct client service provider criteria on its website.
C. Each direct client service provider shall maintain accurate records and report data to the agency annually on forms and in the manner required by the department. Reports shall include the number of the direct client service provider's clients who:
1. Used the direct client service provider's pregnancy support services.
2. Are or were pregnant.
3. Chose childbirth after receiving pregnancy support services.
4. Chose adoption after receiving pregnancy support services.
5. Chose abortion after receiving pregnancy support services.
D. Each provider may be required to provide other information and data at the discretion of the department.
E. The department, the contract management agency and each direct client service provider shall maintain confidentiality of all data, files and records of clients related to the services provided under this article pursuant to federal and state laws related to privacy of medical records, including requirements under the health insurance portability and accountability act (45 Code of Federal Regulations section 164.524). END_STATUTE
START_STATUTE36-4206. Annual audit; annual report
A. Each direct client service provider shall cause an annual audit to be conducted by an independent certified public accountant within one hundred twenty days after the end of the contract management agency's fiscal year verifying that the direct client service provider is in compliance with all requirements of this article and any other requirements of the department. The results of the audits shall be provided to the department annually.
B. On or before september 1 of each year, the department shall report to the governor, the speaker of the house of representatives and the president of the senate, and shall provide a copy of the report to the secretary of state, the following information for the immediately preceding fiscal year:
1. The amount of any gifts, grants or donations received for the program.
2. The total amount of program expenses and the amount of monies awarded as grants to direct client service providers.
3. The results of the audits conducted pursuant to subsection A of this section. END_STATUTE