SB 1537
Initials AG Page 1 Caucus & COW
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature
First Regular Session
Senate: HHS DP 5-0-2-0 | 3rd Read 22-5-3-0
House: HHS DP 8-2-1-1
SB 1537: transitional housing; reentry programs; licensure
Sponsor: Senator Carroll, LD 28
Caucus & COW
Overview
Creates a regulatory framework for the licensing and operation of transitional housing
facilities to provide temporary living arrangements and basic living necessities to individuals
transitioning from incarceration to independent living.
History
Under current law, the Arizona Department of Health Services (DHS) is responsible for the
licensure and regulation of Arizona health care institutions. These institutions are defined as
every place, institution, building or agency, whether organized for profit or not, that provides
facilities with medical, nursing, behavioral health, health screening, supervisory care,
personal care, directed care or any other health-related services, including home health
agencies, outdoor behavioral health care programs and hospice service agencies. DHS
responsibilities include but are not limited to: 1) promoting the development, maintenance,
efficiency and effectiveness of local health departments or districts; 2) conducting a statewide
health education program; 3) conducting continual evaluations of state, local and district
public health programs; and 4) licensing and regulating health care institutions (A.R.S. §§
36-132 and 36-401).
Statute requires the Department of Corrections (DOC) to: 1) establish a transition program
that provides eligible inmates with transition services in the community for up to 90 days; 2)
administer the transition program and contract with private or nonprofit entities to provide
eligible inmates with transition services; and 3) procure transition services. The rules for
implementation of the transition program include: 1) eligibility criteria for inmates; 2) a
requirement that each contracted entity train mentors or certify the mentors are trained; 3)
a requirement that services offered to an inmate include psychoeducational counseling and
case management services; and 4) a requirement that an inmate may only be released to the
transition program after the victim has been provided notice and an opportunity to be heard.
DOC must: 1) conduct annual studies on recidivism rates for inmates who receive transition
services; 2) evaluate inmates and provide the information to the contracted entity; 3) submit
a report of its recidivism findings that contains prescribed information; and 4) provide
information about transition services to all inmates who may be eligible. An inmate must
meet the following criteria to be eligible for transition services: 1) not be convicted of sexual
offenses or violent crimes as outlined; 2) not have any felony detainers; 3) agree in writing to
provide specific information after the inmate is released to be used for recidivism reports; 4)
have made satisfactory progress by complying with all programming on the inmate's
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individualized corrections plan; 5) be classified as minimum or medium custody; and 6) not
have been found in violation of any major violent rule during the inmate's current period of
incarceration or in violation of any other major rule within the previous six months (A.R.S. §
31-281).
Provisions
DHS Minimum Standards for Transitional Housing Facilities
1. Requires the DHS Director to adopt rules to establish minimum standards and
requirements for the licensure of transitional housing facilities in Arizona as necessary
to ensure the public health, safety and welfare. (Sec. 3)
2. Requires DHS's minimum standards for transitional housing facilities to include:
a) a requirement that each transitional housing facility develop policies and procedures
to promote reentry of individuals into society after incarceration by requiring
participation in treatment, self-help groups or other community support;
b) a requirement that each transitional housing facility develop policies and procedures
to allow individuals or are on medication or medication-assisted treatment to continue
to receive the medication or treatment while living in the facility;
c) a requirement that each transitional housing facility post a statement of individual
rights that includes the right to file a complaint about the transitional housing facility
or provider and information about how to file a complaint; and
d) requirements for notifying an individual’s family member or other emergency contact
as designated by the individual under certain circumstances, including death. (Sec. 3)
3. Requires DHS's minimum standards for transitional housing facilities to include policies
and procedures:
a) requiring abstinence from alcohol and illicit drugs;
b) ensuring individuals are informed of all transitional housing facility rules and
agreements;
c) requiring residents to complete a housing agreement outlining the rules of the living
arrangement within the transitional housing facility, including the length of stay and
reasons the individual can be discharged from the facility;
d) requiring transitional housing facilities to maintain an environment that promotes
the safety of the surrounding neighborhood and the community at large;
e) for discharge planning of persons living in the transitional housing facility that do not
negatively impact the surrounding community;
f) for a good neighbor policy to address neighborhood concerns and complaints;
g) for the maintenance of transitional housing facilities, including the installation of
functioning smoke detectors, carbon monoxide detectors and fire extinguishers and
compliance with local fire codes;
h) prohibiting a transitional housing facility owner, employee or administrator from
requiring and individual to sign any document for purposes of relinquishing the
individual’s public assistance benefits, including medical assistance benefits, cash
assistance and supplemental nutrition assistance program benefits; and
i) managing complaints about transitional housing facilities. (Sec. 3)
4. Subjects a person or organization operating a transitional housing facility without
attaining or maintaining licensure to a civil penalty of up to $1,000. (Sec. 3)
5. Requires a transitional housing facility to comply with all federal, state and local laws to
receive and maintain licensure. (Sec. 3) SB 1537
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6. Permits treatment facilities that are licensed by DHS to treat behavioral health, mental
health, substance use or co-occurring disorders to be located on the same campus as a
transitional housing facility. (Sec. 3)
7. Requires the transitional housing facility to be separately licensed. (Sec. 3)
8. Prohibits, after the adoption of related DHS rules, a person or organization from
establishing or maintaining a transitional housing facility unless that person or
organization holds a current and valid license. (Sec. 3)
9. Declares a transitional housing facility license valid only for the establishment, operation
and maintenance of a transitional housing facility. (Sec. 3)
10. Prohibits a transitional housing facility licensee from implying by advertising or directory
listing that the licensee is authorized to perform services that are more specialized or of
a higher degree of care than is otherwise authorized by law for transitional housing
facilities. (Sec. 3)
11. Prohibits a transitional housing facility licensee from transferring or assigning the
license. (Sec. 3)
12. Specifies that a transitional housing facility license is valid only for the premises occupied
by the transitional housing facility at the time of issuance. (Sec. 3)
13. Directs DHS to establish by rule annual continuing education and training requirements
for employees, volunteers and contractors who work in a transitional housing facility.
(Sec. 3)
Fees
14. Requires the DHS Director to establish fees for initial and annual licensure and the late
payment of licensing fees, including a grace period. (Sec. 3)
15. Directs DHS to deposit 90% of the fees collected from the licensure of transitional housing
facilities in the Health Services Licensing Fund and 10% to be deposited in the state
General Fund. (Sec. 1, 3)
16. Stipulates that transitional housing facility licenses do not expire and remain valid
unless:
a) DHS subsequently revokes or suspends the license; or
b) the license is voided because the licensee did not pay the licensing fee, civil penalties
or provider agreement fees before the due date or did not enter into an agreement
with DHS before the relevant due date and pay all outstanding fees or civil penalties.
(Sec. 3)
Inspections
17. Directs DHS to conduct annual inspections to verify transitional housing facility
compliance with related statutes and DHS rules. (Sec. 3)
18. Permits the DHS Director or their designee, upon a determination that there is
reasonable cause to believe a transitional housing facility is not adhering to licensure, to
enter the premises of the facility at any reasonable time for purposes of determining
compliance with statute, DHS rules and local fire ordinances or rules. (Sec. 3)
19. Stipulates that a transitional housing facility license application 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 licensure. (Sec. 3) SB 1537
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20. Allows the DHS Director to act against a transitional housing facility found not to be in
adherence with licensing requirements. (Sec. 3)
21. Subjects any transitional housing facility whose license has been revoked or suspended
to inspection on application for relicensure or reinstatement. (Sec. 3)
22. Prohibits a transitional housing facility from reapplying for any license for a period of five
years if the license was revoked in Arizona or another state. (Sec. 3)
23. Permits DHS to contract with a third-party to assist with transitional housing facility
licensure and inspections. (Sec. 3)
Civil Penalties
24. Subjects a transitional housing facility that knowingly operates in Arizona without a
license to a class 6 felony and a daily civil penalty of no more than $1,000 for each
violation. (Sec. 3)
25. Constitutes each day the transitional housing facility operates without a license as a
separate violation. (Sec. 3)
26. Allows the Director to impose a daily civil penalty on a person that violates transitional
housing facility statutes or rules in an amount of up to $1,000 for each violation. (Sec. 3)
27. Constitutes each day that a violation occurs as a separate violation. (Sec. 3)
28. Requires the DHS Director to issue a notice including the proposed amount of the penalty
assessment. (Sec. 3)
29. Prohibits the DHS Director from taking action to enforce and collect an assessment on
any person who requests an appeal hearing on the assessment until the hearing process
is complete. (Sec. 3)
30. Instructs the DHS Director to impose a civil penalty only for days in which a violation
was documented by DHS. (Sec. 3)
31. Permits DHS to impose sanctions and commence disciplinary actions against a licensed
transitional housing facility, including revoking the license. (Sec. 3)
32. Forbids a transitional housing facility license from being suspended or revoked without
affording the licensee notice and an opportunity for a hearing. (Sec. 3)
Notification Requirements
33. Directs transitional housing facility staff to notify DHS, in a DHS-provided format,
immediately and no more than one business day after:
a) the death of an individual residing in the facility, if statutorily required, including
whether the death may have been drug related;
b) a sex-related crime may have been committed at the facility; or
c) any other incident specified by DHS rules. (Sec. 3)
34. Prohibits transitional housing facility staff from having a personal or intimate
relationship with any individual residing in the facility. (Sec. 3)
35. Requires transitional housing facility staff to contact law enforcement if informed that an
individual residing in the facility may have been involved in a sex-related crime. (Sec. 3) SB 1537
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36. Tasks transitional housing facility licensees to ensure that any individual residing in the
facility that is required to register as a sex offender does so within the statutorily required
time frame after admission to the facility. (Sec. 3)
Miscellaneous
37. Excludes transitional housing facilities from the definition of sober living home. (Sec. 2)
38. Directs DHS to post the following information on its website for each licensed transitional
housing facility in Arizona, to be updated quarterly:
a) the name and telephone number;
b) the license number;
c) the local jurisdiction business license number; and
d) licensure status. (Sec. 3)
39. Defines terms. (Sec. 3)
40. Makes technical and conforming changes. (Sec. 1-2)