House Engrossed Senate Bill group home monitoring program State of Arizona Senate Fifty-seventh Legislature First Regular Session 2025 SENATE BILL 1356 An Act amending sections 36-573 and 36-595.03, Arizona Revised Statutes; amending Laws 2022, chapter 316, section 4; relating to developmental disabilities. (TEXT OF BILL BEGINS ON NEXT PAGE)
House Engrossed Senate Bill group home monitoring program
State of Arizona Senate Fifty-seventh Legislature First Regular Session 2025
SENATE BILL 1356
House Engrossed Senate Bill
group home monitoring program
State of Arizona
Senate
Fifty-seventh Legislature
First Regular Session
2025
SENATE BILL 1356
An Act
amending sections 36-573 and 36-595.03, Arizona Revised Statutes; amending 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; program review; definition A. The developmental disabilities group home monitoring pilot program is established in the department. Subject to available appropriations, the department shall oversee the pilot program for three years and contract 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 resulted in a reduction in A behavior treatment plan is in place, is compliant with department rules and has had a positive impact on 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. 2. Use a monitoring tool to assess whether the following criteria were satisfied: (a) The client with complex needs received the physical health and behavioral health services that the client requires as outlined by the client's health care providers and person-centered service plan, including regular physical activity with modification for the client's physical disability, if any. (b) The client with complex needs had the client's dietary requirements met, including compliance with all dietary orders from the client's health care providers. (c) The food provided in the group home met generally accepted dietary standards and guidelines for healthy Americans in accordance with the United States department of agriculture dietary guidelines. (d) The guardian of the client with complex needs and the client, as applicable, were included in all decisions made regarding the client and informed of any changes to the client's regular activities or daily routine. (e) Group home direct care staff demonstraTED the knowledge and skills required to meet the medical and behavioral health care needs of the client with complex needs as outlined in the client's person-centered service plan and behavior treatment plan, if applicable. (f) The client with complex needs had access to and used all prescribed adaptive equipment. (g) Group home direct care staff worked with the behavioral health providers serving the client with complex needs as allowed by the client or client's guardian and as outlined in the client's person-centered service plan and behavior treatment plan, if applicable. (h) The group home of the client with complex needs COMPLIED with applicable incident reporting policies, including documenting and reporting physical interventions and any other emergency measures taken. 3. Complete follow-up monitoring reviews for group homes that were monitored pursuant to paragraph 1 of this subsection and that the DESIGNATED entity identified as having significant quality of care concerns. 3. 4. Compile and complete both of the following: (a) Monthly reports to the department detailing the results of all monitoring from the previous month, including identified systemic issues and recommendations for improvement. (b) A comprehensive annual 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 incident reports, quality of care complaints, investigation records and client service requests for each group home monitored pursuant to subsection B, paragraph 1 of this section 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 identifies concerns during its follow-up monitoring reviews, 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 complete the monitoring requirements pursuant to subsection B of this section. 3. Provide the designated entity with quarterly written reports responding to the issues identified in the designated entity's monthly reports from the previous quarter, including identifying the actions taken in response to the identified systemic issues and recommendations received from the designated entity. 4. Publish on the department's public website all of the following: (a) All of the designated entity's monthly and annual reports pursuant to subsection B, paragraph 4 of this section. (b) All quarterly reports from the department pursuant to paragraph 4 of this subsection. (c) The monitoring tool and related instructions used by the designated entity to monitor group homes pursuant to this section. E. On or before December 31, 2025 January 15, 2026 and each January 15 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. F. On or before January 1, 2030, the health and human services committees, or their successor committees, in the senate and the house of representatives shall: 1. Review the reports submitted pursuant to subsection E of this section and the department's responses pursuant to subsection D, paragraph 3 of this section to the designated entity's monthly reports, including observations and outcomes of the program, systemic issues that were identified, the quality of services provided to persons with developmental disabilities who have complex needs in this state, any recommendations for service improvements and actions taken by the department. 2. Determine whether the program should be continued, modified or discontinued. F. G. For the purposes of this section, "client with complex needs" or "client" 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. Laws 2022, chapter 316, section 4 is amended to read: Sec. 4. Delayed repeal Section 36-595.03, Arizona Revised Statutes, as added amended by this act, is repealed from and after December 31, 2026 2030.
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; program review; definition
A. The developmental disabilities group home monitoring pilot program is established in the department. Subject to available appropriations, the department shall oversee the pilot program for three years and contract 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 resulted in a reduction in A behavior treatment plan is in place, is compliant with department rules and has had a positive impact on 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.
2. Use a monitoring tool to assess whether the following criteria were satisfied:
(a) The client with complex needs received the physical health and behavioral health services that the client requires as outlined by the client's health care providers and person-centered service plan, including regular physical activity with modification for the client's physical disability, if any.
(b) The client with complex needs had the client's dietary requirements met, including compliance with all dietary orders from the client's health care providers.
(c) The food provided in the group home met generally accepted dietary standards and guidelines for healthy Americans in accordance with the United States department of agriculture dietary guidelines.
(d) The guardian of the client with complex needs and the client, as applicable, were included in all decisions made regarding the client and informed of any changes to the client's regular activities or daily routine.
(e) Group home direct care staff demonstraTED the knowledge and skills required to meet the medical and behavioral health care needs of the client with complex needs as outlined in the client's person-centered service plan and behavior treatment plan, if applicable.
(f) The client with complex needs had access to and used all prescribed adaptive equipment.
(g) Group home direct care staff worked with the behavioral health providers serving the client with complex needs as allowed by the client or client's guardian and as outlined in the client's person-centered service plan and behavior treatment plan, if applicable.
(h) The group home of the client with complex needs COMPLIED with applicable incident reporting policies, including documenting and reporting physical interventions and any other emergency measures taken.
3. Complete follow-up monitoring reviews for group homes that were monitored pursuant to paragraph 1 of this subsection and that the DESIGNATED entity identified as having significant quality of care concerns.
3. 4. Compile and complete both of the following:
(a) Monthly reports to the department detailing the results of all monitoring from the previous month, including identified systemic issues and recommendations for improvement.
(b) A comprehensive annual 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 incident reports, quality of care complaints, investigation records and client service requests for each group home monitored pursuant to subsection B, paragraph 1 of this section 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 identifies concerns during its follow-up monitoring reviews, 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 complete the monitoring requirements pursuant to subsection B of this section.
3. Provide the designated entity with quarterly written reports responding to the issues identified in the designated entity's monthly reports from the previous quarter, including identifying the actions taken in response to the identified systemic issues and recommendations received from the designated entity.
4. Publish on the department's public website all of the following:
(a) All of the designated entity's monthly and annual reports pursuant to subsection B, paragraph 4 of this section.
(b) All quarterly reports from the department pursuant to paragraph 4 of this subsection.
(c) The monitoring tool and related instructions used by the designated entity to monitor group homes pursuant to this section.
E. On or before December 31, 2025 January 15, 2026 and each January 15 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.
F. On or before January 1, 2030, the health and human services committees, or their successor committees, in the senate and the house of representatives shall:
1. Review the reports submitted pursuant to subsection E of this section and the department's responses pursuant to subsection D, paragraph 3 of this section to the designated entity's monthly reports, including observations and outcomes of the program, systemic issues that were identified, the quality of services provided to persons with developmental disabilities who have complex needs in this state, any recommendations for service improvements and actions taken by the department.
2. Determine whether the program should be continued, modified or discontinued.
F. G. For the purposes of this section, "client with complex needs" or "client" 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. Laws 2022, chapter 316, section 4 is amended to read:
Sec. 4. Delayed repeal
Section 36-595.03, Arizona Revised Statutes, as added amended by this act, is repealed from and after December 31, 2026 2030.