REFERENCE TITLE: group home monitoring program State of Arizona Senate Fifty-seventh Legislature First Regular Session 2025 SB 1356 Introduced by Senator Dunn An Act amending sections 36-573 and 36-595.03, Arizona Revised Statutes; repealing Laws 2022, chapter 316, section 4; relating to developmental disabilities. (TEXT OF BILL BEGINS ON NEXT PAGE) REFERENCE TITLE: group home monitoring program State of Arizona Senate Fifty-seventh Legislature First Regular Session 2025 SB 1356 Introduced by Senator Dunn REFERENCE TITLE: group home monitoring program State of Arizona Senate Fifty-seventh Legislature First Regular Session 2025 SB 1356 Introduced by Senator Dunn An Act amending sections 36-573 and 36-595.03, Arizona Revised Statutes; repealing Laws 2022, chapter 316, section 4; relating to developmental disabilities. (TEXT OF BILL BEGINS ON NEXT PAGE) Be it enacted by the Legislature of the State of Arizona: Section 1. Section 36-573, Arizona Revised Statutes, is amended to read: START_STATUTE36-573. Annual report; group home incident reports; contracts On or before January 1, 2024 and each year thereafter, the department of economic security shall provide an annual report to the chairpersons of the health and human services committees of the senate and the house of representatives, or their successor committees, the directors of the Arizona health care cost containment system and the department of health services and the designated entity conducting the developmental disabilities group home monitoring pilot program pursuant to section 36-595.03 and shall provide a copy of the report to the secretary of state. The report shall include at least the following information: 1. The number of incident reports that were received from group homes in the preceding two years: (a) Categorized by level of severity. (b) That resulted in any type of contract sanction. (c) That involved medication errors. The report shall include the total number of times medication was distributed to clients. (d) That resulted in changes to a behavioral treatment plan. (e) That required additional staff training mandated by the division after review of the incident report. (f) That involved law enforcement. (g) Aggregated by service provider and individual group home without identifying the specific location or name of the home. 2. With respect to group home contracts and expenditures: (a) The number of group home contracts by service provider. (b) For each group home contract, the annual amount the division paid the service provider for the group home services provided. (c) The cost per client by service provider. (d) The number of any type of contract sanction broken down by reason for the sanction. (e) The number of service providers from whom the division recouped payments for group home services in the preceding year for medicaid fraud. 3. The number of medicaid fraud investigations of service providers of group home services. END_STATUTE Sec. 2. Section 36-595.03, Arizona Revised Statutes, is amended to read: START_STATUTE36-595.03. Developmental disabilities group home monitoring program; clients with complex needs; designated entity duties; expedited referral system; reporting requirements; definition A. The developmental disabilities group home monitoring pilot program is established in the department. The department shall oversee the pilot program for three years and contract and collaborate with the entity that has been designated by this state to operate the protection and advocacy system for persons with developmental disabilities in this state pursuant to the developmental disabilities assistance and bill of rights act of 2000 (42 United States Code sections 15041 through 15045) to conduct the pilot program. B. The scope of the pilot program shall require the designated entity, at a minimum, to shall do all of the following beginning January 1, 2023 2026: 1. Monitor in person the group homes that provide services to clients with complex needs to determine, at a minimum, whether: (a) The client with complex needs receives the services identified in the client's person-centered service plan of the client with complex needs, including medication monitoring and habilitation treatment, as applicable. (b) The provision of services identified in the person-centered service plan of the client with complex needs has been effective in addressing the client's complex needs. (c) The services have Each behavior treatment plan that is in place is compliant with department rules and has resulted in a reduction in behaviors that interfered with the ability of the client with complex needs to live safely in the community. (d) All physical interventions used by the group home staff have complied with the behavioral treatment plan of the client with complex needs and applicable state laws. 2. Investigate quality of care complaints received by the designated entity pursuant to subsection C of this section concerning any group home funded by the department. (d) Each group home is compliant with applicable incident reporting policies, including documenting and reporting physical interventions and any other emergency measures taken. 2. Complete group home investigations for monitoring reviews that identified significant compliance or quality of care concerns. Investigations shall include notifying and collaborating with the division on additional follow-up to ensure that compliance standards are met and sustained. 3. Compile a comprehensive report of all observations and outcomes during the preceding year. C. On or before January 1, 2023 2026, the department shall establish an expedited referral system to ensure that copies of all quality of care complaints are forwarded to the designated entity for investigation review and analysis pursuant to this section. The department shall identify quality of care complaints related to abuse, neglect and client safety as priorities for investigation. If the designated entity substantiates an allegation in a quality of care complaint, the information shall be provided to the department, which shall share the allegation with the service provider, and the independent oversight committee on persons with developmental disabilities established by section 41-3801. D. The department shall: 1. Educate service providers on the requirements of the developmental disabilities group home monitoring pilot program and the role of the designated entity. 2. Provide the designated entity with ACCESS to all necessary information to verify service provider compliance. E. On or before December 31, 2025 and each December 31 thereafter, the designated entity shall report to the governor, the president of the senate and the speaker of the house of representatives, and provide a copy of the report to the secretary of state and the independent oversight committee on persons with developmental disabilities established by section 41-3801, regarding the observations and outcomes of the pilot program, including systemic issues that were identified, the quality of services provided to persons with developmental disabilities who have complex needs in this state and any recommendations for service improvements. On a quarterly basis, the department shall report to the designated entity the actions taken in response to the identified issues and recommendations received from the designated entity and the results of those actions. The department shall post this report on the department's public website. F. For the purposes of this section, "client with complex needs" means a client with dual disorders, including psychiatric disorders and developmental disabilities, who engages in behaviors that are disruptive, socially inappropriate or harmful or dangerous to self or others, that interfere with functioning and quality of life or that may cause destruction of property. END_STATUTE Sec. 3. Repeal Laws 2022, chapter 316, section 4 is repealed. Be it enacted by the Legislature of the State of Arizona: Section 1. Section 36-573, Arizona Revised Statutes, is amended to read: START_STATUTE36-573. Annual report; group home incident reports; contracts On or before January 1, 2024 and each year thereafter, the department of economic security shall provide an annual report to the chairpersons of the health and human services committees of the senate and the house of representatives, or their successor committees, the directors of the Arizona health care cost containment system and the department of health services and the designated entity conducting the developmental disabilities group home monitoring pilot program pursuant to section 36-595.03 and shall provide a copy of the report to the secretary of state. The report shall include at least the following information: 1. The number of incident reports that were received from group homes in the preceding two years: (a) Categorized by level of severity. (b) That resulted in any type of contract sanction. (c) That involved medication errors. The report shall include the total number of times medication was distributed to clients. (d) That resulted in changes to a behavioral treatment plan. (e) That required additional staff training mandated by the division after review of the incident report. (f) That involved law enforcement. (g) Aggregated by service provider and individual group home without identifying the specific location or name of the home. 2. With respect to group home contracts and expenditures: (a) The number of group home contracts by service provider. (b) For each group home contract, the annual amount the division paid the service provider for the group home services provided. (c) The cost per client by service provider. (d) The number of any type of contract sanction broken down by reason for the sanction. (e) The number of service providers from whom the division recouped payments for group home services in the preceding year for medicaid fraud. 3. The number of medicaid fraud investigations of service providers of group home services. END_STATUTE Sec. 2. Section 36-595.03, Arizona Revised Statutes, is amended to read: START_STATUTE36-595.03. Developmental disabilities group home monitoring program; clients with complex needs; designated entity duties; expedited referral system; reporting requirements; definition A. The developmental disabilities group home monitoring pilot program is established in the department. The department shall oversee the pilot program for three years and contract and collaborate with the entity that has been designated by this state to operate the protection and advocacy system for persons with developmental disabilities in this state pursuant to the developmental disabilities assistance and bill of rights act of 2000 (42 United States Code sections 15041 through 15045) to conduct the pilot program. B. The scope of the pilot program shall require the designated entity, at a minimum, to shall do all of the following beginning January 1, 2023 2026: 1. Monitor in person the group homes that provide services to clients with complex needs to determine, at a minimum, whether: (a) The client with complex needs receives the services identified in the client's person-centered service plan of the client with complex needs, including medication monitoring and habilitation treatment, as applicable. (b) The provision of services identified in the person-centered service plan of the client with complex needs has been effective in addressing the client's complex needs. (c) The services have Each behavior treatment plan that is in place is compliant with department rules and has resulted in a reduction in behaviors that interfered with the ability of the client with complex needs to live safely in the community. (d) All physical interventions used by the group home staff have complied with the behavioral treatment plan of the client with complex needs and applicable state laws. 2. Investigate quality of care complaints received by the designated entity pursuant to subsection C of this section concerning any group home funded by the department. (d) Each group home is compliant with applicable incident reporting policies, including documenting and reporting physical interventions and any other emergency measures taken. 2. Complete group home investigations for monitoring reviews that identified significant compliance or quality of care concerns. Investigations shall include notifying and collaborating with the division on additional follow-up to ensure that compliance standards are met and sustained. 3. Compile a comprehensive report of all observations and outcomes during the preceding year. C. On or before January 1, 2023 2026, the department shall establish an expedited referral system to ensure that copies of all quality of care complaints are forwarded to the designated entity for investigation review and analysis pursuant to this section. The department shall identify quality of care complaints related to abuse, neglect and client safety as priorities for investigation. If the designated entity substantiates an allegation in a quality of care complaint, the information shall be provided to the department, which shall share the allegation with the service provider, and the independent oversight committee on persons with developmental disabilities established by section 41-3801. D. The department shall: 1. Educate service providers on the requirements of the developmental disabilities group home monitoring pilot program and the role of the designated entity. 2. Provide the designated entity with ACCESS to all necessary information to verify service provider compliance. E. On or before December 31, 2025 and each December 31 thereafter, the designated entity shall report to the governor, the president of the senate and the speaker of the house of representatives, and provide a copy of the report to the secretary of state and the independent oversight committee on persons with developmental disabilities established by section 41-3801, regarding the observations and outcomes of the pilot program, including systemic issues that were identified, the quality of services provided to persons with developmental disabilities who have complex needs in this state and any recommendations for service improvements. On a quarterly basis, the department shall report to the designated entity the actions taken in response to the identified issues and recommendations received from the designated entity and the results of those actions. The department shall post this report on the department's public website. F. For the purposes of this section, "client with complex needs" means a client with dual disorders, including psychiatric disorders and developmental disabilities, who engages in behaviors that are disruptive, socially inappropriate or harmful or dangerous to self or others, that interfere with functioning and quality of life or that may cause destruction of property. END_STATUTE Sec. 3. Repeal Laws 2022, chapter 316, section 4 is repealed.