ARIZONA HOUSE OF REPRESENTATIVES Forty-ninth Legislature - First Regular Session MAJORITY CAUCUS CALENDAR March 17, 2009, 10:45AM HHR1 *Please Note Time Change to 10:45 I. Opening Remarks by Speaker Kirk Adams II. Presentation on Statutory Extension of Teacher Contract Period by Dawn Wallace III. Discussion of Bills: Bill Number Short Title Committee Date Action Committee on Appropriations Analyst: Mike Huckins Assistant: Daniel Plumhoff Intern: Calvin Bovee HB 2495 in-state tuition; veterans SPONSOR: FLEMING APPROP 3/4 DP (11-0-0-2-0) Committee on Banking and Insurance Analyst: Stacy Weltsch Intern: Azra Hafizovic HB 2513 reverse mortgages SPONSOR: KONOPNICKI BI 3/2 DP (8-0-0-0-0) HB 2425 state treasurer; management fees SPONSOR: KAVANAGH BI 2/23 DP (7-0-0-1-0) APPROP 2/25 DP (10-0-0-3-0) Committee on Commerce Analyst: Dianna Clay O’Dell Assistant: Brooke Olguin Intern: Maureen Howell HB 2503 contractors' recovery fund; person injured SPONSOR: MCCOMISH COM 2/18 DPA (4-1-0-3-0) Committee on Education Analyst: Jennifer Anderson Intern: Cassondra Warney HB 2011 provisional community college districts; bonding SPONSOR: KONOPNICKI ED 2/23 DPA (9-0-0-1-0) WM 3/2 DP (7-1-0-0-0) HB 2013 community colleges; nonresidents; reimbursement SPONSOR: KONOPNICKI ED 3/2 DP (10-0-0-0-0) APPROP 3/11 DP (12-0-0-1-0) HB 2031 schools; contractors; fingerprint clearance cards SPONSOR: KAVANAGH ED 2/16 DPA (10-0-0-0-0) HB 2120 school districts; bonds; purposes. SPONSOR: BOONE ED 2/16 DPA (9-0-1-0-0) WM 3/11 DP (6-2-0-0-0) HB 2251 school district overexpenditures; correction. SPONSOR: PRATT ED 1/22 DP (10-0-0-0-0) APPROP 3/11 DP (11-1-0-1-0) HB 2463 school districts; accounting responsibility; threshold SPONSOR: PRATT ED 2/16 DP (9-0-0-1-0) HB 2525 TAPBI programs; schools SPONSOR: HENDRIX ED 2/23 DP (8-0-0-2-0) Committee on Environment Analyst: Justin Riches Intern: Josh Conver HB 2424 illegal dumping; penalties SPONSOR: MCGUIRE ENV 2/17 DPA (8-0-0-0-0) JUD 2/26 DPA (8-0-0-0-0) Committee on Government Analyst: Michelle Hindman Assistant: Zach Tretton Intern: Laurel Johnson HB 2019 state personnel; technical correction (GOV S/E: state nickname) SPONSOR: CRUMP GOV 3/3 DPA/SE (9-0-0-0-0) HB 2034 technical correction; ambulances (GOV S/E: planned communities; authority over roadways) SPONSOR: BARTO GOV 3/3 DPA/SE (8-1-0-0-0) HB 2105 reviser's technical corrections; 2009 SPONSOR: CRUMP GOV 1/27 DP (7-0-0-1-0) Committee on Health and Human Services Analyst: Dan Brown Intern: Thomas Desmaris HB 2158 adult immunization information system SPONSOR: BARTO HHS 2/25 DP (7-0-0-2-0) HB 2159 board of podiatry examiners; continuation SPONSOR: BARTO HHS 2/25 DP (6-0-0-3-0) HB 2160 chiropractic practice SPONSOR: BARTO HHS 2/11 DPA (8-1-0-0-0) BI 2/23 DPA (7-0-0-1-0) HB 2237 AHCCCS; verification of eligibility SPONSOR: SEEL HHS 2/18 DPA (6-2-1-0-0) HB 2558 insurance; cancer treatment; medical references SPONSOR: ASH HHS 3/4 DP (8-0-0-1-0) Committee on Judiciary Analyst: Kristine Stoddard Intern: Robert Stout HB 2568 unlawful use of building; marijuana SPONSOR: DRIGGS JUD 2/26 DP (8-0-0-0-0) Committee on Military Affairs and Public Safety Analyst: Thomas Adkins Intern: Scott Handler HB 2439 concealed weapons permit; safety course SPONSOR: KAVANAGH MAPS 3/4 DPA (6-0-0-2-0) HB 2450 honorary diplomas; war veterans SPONSOR: WEIERS JP MAPS 2/25 DP (8-0-0-0-0) HCR 2034 repeal business personal property tax (MAPS S/E: state veterans' cemetery; Tucson) SPONSOR: GOWAN MAPS 3/4 DPA/SE (7-0-0-1-0) Committee on Public Employees, Retirement and Entitlement Reform Analyst: Stacy Weltsch Intern: Azra Hafizovic HB 2007 CORP; return to work SPONSOR: KONOPNICKI PERER 1/20 DP (6-0-0-2-0) APPROP 2/11 DP (12-0-0-1-0) Committee on Transportation and Infrastructure Analyst: Ingrid Garvey Intern: Laureen Stadle HB 2530 reckless driving; prior convictions SPONSOR: ASH TI 3/5 DP (8-0-0-0-0) Committee on Water and Energy Analyst: Rene Guillen Intern: Becky Rubenstrunk HB 2352 aquifer protection permits; natural gas SPONSOR: MASON WE 2/19 DPA (5-3-0-0-0) Committee on Ways and Means Analyst: Kitty Decker Intern: Matt Stone HB 2368 property valuation; equalization calendar SPONSOR: MURPHY WM 3/2 DP (8-0-0-0-0) HB 2007 CORP; return to work Sponsor: Representative Konopnicki DPCommittee on Public Employees, Retirement and Entitlement Reform XCaucus and COW House Engrossed HB 2007 allows a retired member to return to work while still receiving a pension so long as the member returns at least 12 months after retirement and returns in a position involving substantial direct inmate contact. History Created by the legislature in 1986, the Corrections Officer Retirement Plan’s (CORP) is one of three plans administered by the Public Safety Personnel Retirement System (PSPRS). It is designed to meet the special needs of personnel engaged in the prison environment. Normal retirement commences after the member completes 20 years of service, the member attains age 62 with 10 or more years of service or the sum of the member’s age and years of credited service equals at least 80 points. The monthly pension amount is determined by years of credited service multiplied by a factor of 2.5 percent multiplied by the average monthly salary. The legislature passed HB 2482 in 2006, which allowed retired CORP members to return to work in designated positions while still drawing their pensions so long as the employment occurred at least 90 days after retirement and involved substantial direct inmate contact. Those members were also prohibited from contributing to the fund and from accruing credited service. However, that provision was repealed on June 30, 2008. This bill will allow those members to continue working. Provisions · Permits a retired member to be employed by an employer in a designated position while continuing to receive a pension if the employment occurs at least 12 months after retirement and if the employment involves substantial direct inmate contact. · Prohibits the member from contributing to the fund and accruing credited service. · Allows members who retired under a 2006 return to work window to continue working in a designated position under that law. ?? ???? ?? Return to the table of contents HB 2011 provisional community college districts; bonding Sponsor: Representative Konopnicki DPACommittee on Education DPCommittee on Ways & Means XCaucus and COW House Engrossed HB 2011 allows a provisional community college district to issue bonds, subject to voter approval, for capital outlay purposes. History The Arizona community college system includes ten community college districts offering courses in all fifteen counties of the state. With the exception of the Yuma/La Paz district, each district consists of a single county. Gila County operates as a provisional community college district, which is similar to an established district but lacks the authority to award degrees or receive state equalization aid. Apache, Greenlee, and Santa Cruz counties do not have community college districts within their geographic boundaries. The Legislature is required to pay 50 percent of the total cost, not to exceed $1M, for capital outlay for an initial campus in a newly formed community college district, and for additional campuses, subject to review by the Joint Legislative Budget Committee, in existing districts (A.R.S. § 15-1463). Provisional community college districts are prohibited from receiving a state contribution for capital outlay for initial or additional campuses (A.R.S. 15-1409). Community college districts are funded through three separate formulas: Operating State Aid, Capital Outlay State Aid, and Equalization Aid. Provisional community college districts only receive Operating and Capital Outlay State Aid. The Capital Outlay State Aid formula provides per capita funding to community college districts based on the district’s size and the most recent years’ actual audited full-time student enrollment (FTSE). For districts with less than 5,000 FTSE, the statutory formula provides $210 per FTSE. Districts with more than 5,000 FTSE receive $160 per FTSE (A.R.S. § 15-1464). In addition to Capital Outlay State Aid, regular community college districts may also issue bonds, subject to voter approval, for capital outlay purposes. Bond proceeds may be used to purchase land, purchase, erect, remodel, or complete buildings, and purchase equipment and facilities for educational or auxiliary purposes of the community college district. The total amount of the bonds issued cannot exceed 15 percent of the taxable property in the district (A.R.S. § 15-1465). Provisional community colleges do not currently have statutory authority to issue bonds. Provisions · Authorizes a provisional community college district to issue bonds, subject to voter approval, for capital outlay purposes. · Stipulates that the total amount of bonds issued cannot exceed an unspecified percent of the taxable property in the county where the provisional community college district is located. · Makes technical changes. Amendments Education · Gives provisional community college districts the same authority of issuing bonds as community college districts. · Makes conforming and technical changes. ?? ???? ?? Return to the table of contents HB 2013 community colleges; nonresidents; reimbursement Sponsor: Representative Konopnicki DPCommittee on Education DPCommittee on Appropriations XCaucus and COW House Engrossed HB 2013 allows a county and a community college district to specify the reimbursement due to the community college district for nonresident students without an intergovernmental agreement (IGA) if the county pays part of the reimbursement with in-kind contributions. History The Arizona community college system includes ten community college districts offering courses in all fifteen counties of the state. With the exception of the Yuma/La Paz district, each district consists of a single county. Gila County operates as a provisional community college district, which is similar to an established district but lacks the authority to award degrees or receive state equalization aid. Apache, Greenlee, and Santa Cruz do not have community college districts within their geographic boundaries. The students who reside in these “unorganized” counties may enroll in and attend courses offered by the established community college districts. The students’ county of residence is required to reimburse the district of attendance. For students who attend classes offered by the community college district within the unorganized county, the amount of reimbursement must be specified by an IGA. For students from an unorganized county attending courses within an established community college district, the amount of reimbursement is based on a statutory formula (A.R.S. § 15-1469). The Joint Legislative Budget Committee (JLBC) staff uses data reported from the community college districts to calculate the reimbursement using the following three-step formula: 1) Net operating expenses – state operating aid = Net Operating Cost. 2) Net operating cost / prior year full-time student equivalent (FTSE) = Net Operating Cost per FTSE. 3) Net operating cost per FTSE x the average number of unorganized county FTSE = Payment Due to the community college district. JLBC annually notifies each community college district and the board of supervisors of each unorganized county of the amount of reimbursement due to each district for the budget year. Provisions · Eliminates the requirement for a county and community college district to negotiate an IGA to determine the amount of reimbursement due if the reimbursement is reduced by the value of in-kind contributions. · Makes technical and conforming changes. ?? ???? ?? Return to the table of contents HB 2019 state personnel; technical correction Sponsor: Representative Crump DPAS/ECommittee on Government XCaucus and COW House Engrossed HB 2019 makes technical corrections to state personnel statutes. Proposed Strike-Everything Amendment The proposed strike-everything amendment to HB 2019 designates “The Grand Canyon State” as the official Arizona state nickname. History Arizona Revised Statutes Title 41, Chapter 4.1, Article 5 prescribes the following as official state emblems: · State fossil: Petrified wood, or araucarioxylon arizonicum. · State bird: The cactus wren, otherwise known as Coues' cactus wren or heleodytes brunneicapillus couesi (Sharpe). · State flower: The pure white waxy flower of the cereus giganteus (giant cactus) or Saguaro. · State tree: The Palo Verde (genera cercidium). · State neckwear: The Bola tie. · State gemstone: Turquoise. · State animals: The ringtail or bassariscus astutus, the Arizona ridgenose rattlesnake or crotalus willardi, the Arizona trout or salmon apache and the Arizona tree frog or hyla eximia shall be known respectively as the state mammal, reptile, fish and amphibian. · State butterfly: The papilionidae papilio multicaudata, two-tailed swallowtail. Provisions · Establishes “The Grand Canyon State” as the official Arizona state nickname. Amendments Committee on Government · The proposed strike-everything amendment was adopted. HB 2031 schools; contractors; fingerprint clearance cards Sponsor: Representative Kavanagh DPACommittee on Education XCaucus and COW House Engrossed HB 2031 requires contractors, subcontractors, vendors, or any of their employees to have a valid fingerprint clearance card if they provide services on a regular basis on school property. History All certified school personnel who engage in classroom instruction or have direct contact with students are required to have a valid fingerprint clearance card. All other school personnel are required to undergo a criminal records check (A.R.S. § 15-512). The Records and Identification Bureau (Bureau) is an agency within the Department of Public Safety (DPS) that collects and analyzes criminal history background information to determine the suitability of applicants as required by state and federal laws. The Bureau also manages the Arizona Automated Fingerprint Identification System (AFIS). AFIS is an image processing system that assists the Bureau in processing arrest fingerprint records received from all Arizona law enforcement agencies. All fingerprints collected within AFIS are sent to a collection pool used for criminal records checks. In performing a criminal records check, the Bureau sends a set of fingerprints submitted by the applicant to the Federal Bureau of Investigation (FBI) where they are checked against stored criminal records. The Bureau then checks the applicant’s name, date of birth, and social security number against DPS records for matching information. If matching records are found, the applicant’s fingerprints are run through AFIS to verify the record applies to the applicant in question. The results from both the FBI and DPS are returned to the agency that requested the criminal records check and that agency makes its own employment eligibility determination. Fingerprints obtained from an applicant for the purpose of performing a criminal records check are not retained in AFIS. The fingerprints of an applicant seeking a fingerprint clearance card are also sent to the FBI. Additionally, they are entered into AFIS by the Bureau and checked against stored records in AFIS for any matches. If the person’s records contain one or more of the precluding offenses listed in statute, DPS will not issue a fingerprint clearance card and will notify the agency that licenses or employs the person (A.R.S. § 41-1758.03). The fingerprints of all fingerprint clearance card applicants are retained in AFIS and any time the same prints are entered into the system by an Arizona law enforcement agency (police, sheriff, etc.) the system flags the prints. A report of all flags in the system is printed by the Bureau every morning. If a person’s fingerprint clearance card is flagged, the card is immediately suspended and DPS must notify the proper agency or employer. A school employee or applicant who is arrested for or charged with any of the non-appealable (precluding) offenses listed in statute under the fingerprint clearance card requirements is required to immediately report the arrest or charge to their supervisor or potential employer. If the person fails to make this report, he or she is guilty of unprofessional conduct and must be immediately dismissed or excluded from potential employment. A person who is employed by a school and convicted of any of the non-appealable offenses must notify his or her employer and DPS of the conviction and surrender his or her fingerprint clearance card and any certificates issued by the Department of Education (A.R.S. § 15-550). Laws enacted in 2008 require contractors, subcontractors, vendors, or any of their employees who provide services on a regular basis (at least five times a month) on school property to undergo a criminal records check. A school district is allowed to pass the cost of the records check on to the contractor, subcontractor, vendor, or the employee. Additionally, school districts are required to adopt policies that may exempt persons who are not likely to have direct, unsupervised contact with pupils from the records check requirement (A.R.S. § 15-512). Provisions · Stipulates that contractors, subcontractors, vendors, or any of their employees who are contracted to provide services on school property on a regular basis must have a valid fingerprint clearance card. · Makes technical changes. Amendments · Provides charter schools with the same immunity from liability school districts receive if they properly implement requirements related to the fingerprinting of staff. · Directs school districts to adopt policies by December 31, 2009 regarding the fingerprint clearance cards, which may exempt persons who are not likely to have direct, unsupervised contact with students. · Defines school property. · Notwithstands due process procedures for school personnel who are guilty of unprofessional conduct for failing to immediately report if they are arrested or charged with one of the non-appealable offenses listed in Title 41 under the fingerprint clearance card eligibility requirements. · Makes technical and conforming changes. ?? ???? ?? Return to the table of contents HB 2034 technical correction; ambulances Sponsor: Representative Barto DPAS/ECommittee on Government XCaucus and COW House Engrossed HB 2034 makes a technical correction. A strike-everything amendment will be offered on HB 2034 which denies a homeowners’ association (HOA) the authority to regulate any roadway, easement, or other area dedicated to a governmental entity. History of the strike-everything amendment Title 33, Chapters 9 and 16, Arizona Revised Statutes (A.R.S.), outline the regulatory requirements for condominiums and Planned Communities (single-family homes) respectively, and are commonly known as homeowners’ associations. The covenants, conditions and restrictions (CC&Rs) provide direction to the HOA, and a board of directors (board) duly elected by the membership varies accordingly. Statute requires the board to manage the activities of the HOA including adopting and amending bylaws/rules, requirements for casting votes, holding open meetings, hiring and discharging managing agents and imposing and receiving fees, fines and assessments. The HOA’s board is responsible for maintenance, repair and replacement of the common elements within the association, as well as imposing penalties for violations of bylaws and rules. A.R.S. § 33-1803 defines an association as a nonprofit corporation or unincorporated association of owners created pursuant to a declaration to own and operate portions of a planned community and that has the power under the declaration to assess association members to pay the costs and expenses incurred in the performance of the association’s obligations under the declaration. In some cases, when a planned community is being built, the developer will construct common areas as well infrastructure for the community. The HOA of the planned community is given jurisdiction by the governing documents over the private roadways within the planned community. Provisions of the strike-everything amendment · Stipulates that an HOA does not have the authority to regulate any roadway, easement or other area where the ownership has been dedicated to, or is otherwise under the legal authority of, a governmental entity. · Clarifies that an HOA only has jurisdiction over roadways, easements and other areas under its ownership. Amendments Committee on Government · The strike-everything amendment was adopted. ?? ???? ?? Return to the table of contents HB 2039 technical correction; public health Sponsor: Representative Barto DPACommittee on Health and Human Services XCaucus and COW House Engrossed HB 2039 makes a technical correction. Summary of the proposed strike-everything amendment The proposed strike-everything amendment requires the medical director of a mental health treatment agency to provide notice to the prosecuting agency’s office regarding the release of a patient undergoing court-ordered treatment, within ten days of the anticipated release. History Pursuant to Arizona Revised Statutes (A.R.S.) § 13-605, if a court desires more information about a defendant’s mental condition, it may commit the defendant to a psychiatric facility for evaluation for up to ninety days. The facility is then required to submit a report and recommendations to the court. A.R.S. § 13-606 allows the court to order the defendant to undergo treatment if it believes the defendant exhibits symptoms of mental disorder. According to A.R.S. § 36-541.01, a patient ordered by the court to undergo treatment may be released before the expiration date of the court-ordered treatment if, in the opinion of the medical director of the mental health treatment facility, the patient is no longer a danger to others or to self, or is no longer acutely or gravely disabled. Current law also requires that prior to the release of a patient undergoing court-ordered treatment, the medical director of the mental health treatment agency notify the presiding judge of the court that ordered the treatment, and any relative or victim of the patient who has filed a demand for notice, of his or her intention to release the patient. Provisions · Requires the medical director of a mental health treatment agency to notify the prosecuting agency’s office if criminal charges against a patient are dismissed, if a civil commitment order expires, is terminated, or is denied, or if the patient is discharged to outpatient treatment. · Stipulates that the medical director shall provide this notice by mail at least ten days before the anticipated date of expiration, termination, or discharge, and as soon as reasonably possible after a petition is denied. Amendments Health and Human Services: · The strike-everything amendment was adopted. ?? ???? ?? Return to the table of contents HB 2105 reviser’s technical corrections; 2009 Sponsor: Representative Crump DPCommittee on Government XCaucus and COW House Engrossed HB 2105 makes non-substantive technical changes to conflicting statutes. History Each year Legislative Council prepares a reviser’s technical corrections bill for the consideration of the Legislature, which corrects defective and/or conflicting statutory text from previous legislative enactments. Traditionally, the chairman of the House or Senate Government Committee sponsors the bill. Provisions · Makes numerous technical changes to existing statutory conflicts. · Provides numerous retroactive effective dates. ?? ???? ?? Return to the table of contents HB 2120 school districts; bonds; purposes Sponsor: Representative Boone DPACommittee on Education DPCommittee on Ways and Means XCaucus and COW House Engrossed HB 2120 allows a school district to expend Class B bond proceeds for furniture, equipment, and technology. History Class B bonds are general obligation bonds approved by a vote of the qualified electors of a school district (A.R.S. § 15-101). Class B bonds may be issued to purchase or lease land, build or renovate schools, improve school grounds, or purchase pupil transportation vehicles (A.R.S. § 15-491). Currently, a school district is prohibited from issuing Class B bonds for soft capital items, computer hardware, or other items whose useful life is less than five years or less than the average useful life of the bonds issued. An elementary or high school district cannot issue Class B bonds in an aggregate amount exceeding more than five percent of the district’s taxable secondary property or $1,500 per pupil, whichever is greater. A unified district cannot issue Class B bonds in an aggregate amount exceeding ten percent of the district’s taxable secondary property or $1,500 per pupil, whichever is greater (A.R.S. § 15-1021). Capital funding is provided for school districts through the capital outlay revenue limit (CORL) and soft capital allocation in the school finance formula. The CORL is based on a per-pupil amount currently set at $225.76 for pupils in kindergarten through grade 8 and $267.94 for pupils in grade 9 through 12, which is then weighted based on grade levels (the per-pupil amount is greater for schools with less than 100 pupils). In addition, high schools receive $69.68 per pupil under the CORL formula for the purchase of textbooks (A.R.S. § 15-961). Soft capital funds are also based on a per-pupil amount currently set at $225. Soft capital funds can only be used for short-term capital items that are required to meet academic adequacy standards such as technology, textbooks, library resources, instructional aids, pupil transportation vehicles, furniture, and equipment (A.R.S. § 15-962). Known as a capital override, the voters of a school district can authorize an increase to the district’s capital outlay budget for a maximum period of seven years. There is no limit to the amount of increase which is generally paid through a secondary property tax. The override may be used for any capital outlay purpose, such as building improvements, furniture and equipment (including computer technology and software), textbooks, and transportation equipment. When requesting an override, a school district is required to publish a publicity pamphlet detailing each proposed capital improvement and the associated tax rate to fund the improvement. Provisions · Permits a school district to issue Class B bonds for furniture, equipment, and technology if the useful life of the items exceeds the average duration of the bonds issued. · Makes technical and conforming changes. Amendments Education · Removes language related to the limits prescribed for bonds and references current statutory language prohibiting the use of bonds for items whose useful life is less than five years or less than the average life of the bonds issued. ?? ???? ?? Return to the table of contents HB 2158 adult immunization information system Sponsor: Representative Barto DPCommittee on Health and Human Services XCaucus and COW House Engrossed HB 2158 establishes an adult immunization information system (System) under the Department of Health Services (DHS), and gives health care professionals the option of reporting adult immunization information to the DHS for inclusion in the system, and allows patients to request that their information not be disclosed. History Arizona Revised Statutes (A.R.S.) § 36-135 requires health care professionals to report to the DHS about all immunizations they administer to children in Arizona. They must make reports at least monthly, and provide the following information for each vaccine administered: The health care professional’s name, business address, and business phone number. The child’s name, address, social security number, gender, date of birth, and mother’s maiden name. The type of vaccine administered and the date it was administered. The DHS collects this information in an electronic registry called the Arizona State Immunization Information System (ASIIS). The DHS is authorized to release identifying information from the ASIIS to a child’s health care professional, parent, guardian, health care service organization, the Arizona Health Care Cost Containment System (AHCCCS), and certain school officials. The DHS may also release nonidentifying summary statistics based on ASIIS data for public use. A.R.S. § 36-135 further provides that identifying information in the ASIIS is confidential, and prescribes penalties for agencies and health care professionals that disclose such information or otherwise violate regulations related to the ASIIS. A parent or guardian may also request that a child’s immunization information be withheld from the ASIIS altogether. Provisions · Establishes the System to collect, store, analyze, release, and report adult immunization data, and to collect, store, and release titers and other measures of protection against vaccine-preventable diseases. · Permits a health care professional licensed to provide immunizations to report the following information to the DHS: The health care professional’s name, business address, and business phone number. The patient’s first name, middle initial, and last name. The patient’s date of birth, address, sex, and social security number, if known and not confidential. The type of vaccine administered and the date it was administered. The type of vaccine-preventable titer or measure collected, the date it was collected, and the results. · Allows health care professionals to submit this information weekly or monthly, by computer, or by another method prescribed by the DHS. · Limits the parties to which the DHS can release this information to the following: · The patient’s health care professional, guardian or health care insurer. · The AHCCCS and its providers. · Any other person for a specified purpose, as prescribed by the DHS by rule. · Stipulates that a health care insurer can use information released to it from the System only for quality assurance purposes, and explicitly prohibits insurers from using this information for rating purposes. · Provides that the DHS may release non-identifying information for summary statistics. · Stipulates that identifying information in the System is confidential, and prohibits anyone authorized to receive such information from disclosing it to any other person. · Specifies that a cause of action is not created against a health care professional who provides immunization information to the System in good faith, and is not subject to criminal liability. · Provides that it is a class 3 misdemeanor for a person or agency authorized to receive immunization information to disclose that information to any other person. · Requires the DHS to provide a form allowing an adult patient’s information to be withheld from all persons, including those authorized to receive information through the System. · Defines health care insurer. ?? ???? ?? Return to the table of contents HB 2159 board of podiatry examiners; continuation Sponsor: Representative Barto DPCommittee on Health and Human Services XCaucus and COW House Engrossed HB 2159 continues the Arizona State Board of Podiatry Examiners (Board) until July 1, 2011. History Arizona Revised Statutes (A.R.S) § 32-802 establishes that the Board consists of five individuals appointed to serve for five years terms. Three of the Board members must have been living and practicing podiatry in Arizona for at least two years. The two additional members are lay persons. The Board is responsible for licensing podiatrists in Arizona, investigating complaints made against podiatrists, and acting upon their investigations. A.R.S. § 32-801 defines podiatry as the diagnosis or medical, surgical, mechanical, manipulative or electrical treatment of ailments of the human foot and leg, but does not include amputation of the foot, toe or leg nor administration of an anesthetic other than local. According to the Board, there are 364 licensed podiatrists in Arizona. A.R.S. § 41-3009.01 terminates the Board on July 1, 2009. Provisions · Repeals statute related to the termination of the Board. · Continues the Board until July 1, 2011. · Contains a purpose clause. · Includes a retroactivity date of July 1, 2009. ?? ???? ?? Return to the table of contents HB 2160 chiropractic practice Sponsor: Representative Barto DPACommittee on Health and Human Services DPACommittee on Banking and Insurance XCaucus and COW House Engrossed HB 2160 modifies the language specifying what types of treatment a chiropractor may engage in. History Arizona Revised Statutes § 32-925 states that a doctor of chiropractic is a portal of entry health care provider who engages in the practice of health care that includes treatment by adjustment of the spine or bodily articulations, and those procedures complementary to the adjustment including physiotherapy, orthopedic supports, and acupuncture. Provisions · Adds physical medicine modalities and therapeutic procedures to the list of treatments a chiropractor may provide. · Removes physiotherapy from the list of treatments a chiropractor may provide. · Clarifies that chiropractors may provide treatment related to neuromuscular skeletal disorders and may prescribe orthopedic supports. Amendments Committee on Health and Human Services · Defines physical medicine modalities and therapeutic procedures. Committee on Banking and Insurance · Explains that chiropractors who are certified in a specialty before the effective date of the amendment are deemed to be certified in physical medicine modalities and therapeutic procedures. · Makes technical and conforming changes. ?? ???? ?? Return to the table of contents HB 2237 AHCCCS; verification of eligibility Sponsor: Representative Seel DPACommittee on Health and Human Services XCaucus and COW House Engrossed HB 2237 requires Arizona Health Care Cost Containment System (AHCCCS) employees to verify the eligibility of applicants through the Systematic Alien Verification for Entitlements (SAVE) Program, and includes related provisions. History The AHCCCS administers programs related to the provision of health care services to persons who meet certain eligibility requirements, including acute-care and long-term care programs, as well as supplemental assistance for Medicare beneficiaries. Arizona Revised Statutes § 36-2903.03 requires a person applying for eligibility for services provided by the AHCCCS to provide verification of U.S. citizenship or documented verification of qualified alien status as required by federal law or regulation. The SAVE Program is administered by the U.S. Department of Homeland Security and is available to aid benefit granting agency workers in determining a non-citizen applicant’s immigration status. It does not make determinations regarding a non-citizen applicant’s eligibility for a specific benefit. Provisions · Eliminates the requirement that applicants for services provided by the AHCCCS shall provide verification of U.S. citizenship or documented verification of qualified alien status, and instead requires employees of the AHCCCS to verify applicants immigration status through the SAVE Program. · Allows a person who is denied services to appeal that decision. · Directs state agencies and political subdivisions to provide AHCCCS employees with any information the employees request to verify the immigration status of an applicant. · States that AHCCCS employees must submit a written report to federal immigration authorities for any violations of immigration law they discover, and stipulates that an employee who does not report as required is guilty of a class 2 misdemeanor. · Specifies that if the supervisor of an employee at the AHCCCS knew of the employee’s failure to report as required, the supervisor is also guilty of a class 2 misdemeanor. · Stipulates that these requirements shall be enforced without regard to race, religion, gender, ethnicity, or national origin. · Allows any resident of Arizona to bring suit against the AHCCCS for violations of these requirements, and requires that courts give preference to such actions over other civil actions that are pending in those courts. · Indicates that these requirements do not apply to services that cannot be denied on the basis of a person’s immigration status. Amendments Health and Human Services: · Restores the stricken language regarding existing citizenship verification requirements. · Includes a list of acceptable forms of identification that may be used to verify citizenship or qualified alien status. · Eliminates provisions related to employees having to report to the federal government and the associated penalties for failing to do so. · Eliminates the provisions related to giving residents of Arizona the standing to sue the AHCCCS, and the provision requiring the courts to give priority to those suits. ?? ???? ?? Return to the table of contents HB 2251 school district overexpenditures; correction Sponsor: Representative Pratt DPCommittee on Education DPCommittee on Appropriations XCaucus and COW House Engrossed HB 2251 grants the Santa Cruz Valley Union High School District (District) a five-year payback period beginning in FY 10 for overexpenditures committed by the District from FY 03 through FY 07. History If the Superintendent of Public Instruction (SPI) determines that the calculation of state aid for a school district within the previous three years does not conform with statutory requirements, the SPI is required to reduce state aid to the district in the current year or in the budget year in order to correct the errors. In the case of a hardship to the school district, the SPI may allow the school district to correct errors over a two-year period (A.R.S. § 15-915). As reported by the District’s Superintendent, the District carried negative fund balances in 25 of the District’s 63 active funds in previous fiscal years. Most of the funds with negative balances related to federal grants. A school district is allowed to operate with negative balances in any federal or state grant fund, but if the fund has a negative balance at the end of the fiscal year, sufficient expenditures must be transferred from the district’s maintenance and operation (M&O) fund (A.R.S. § 15-996). These transfers were not made by the District in the appropriate fiscal years. The negative fund balances were reported to the District by the Pinal County School Superintendent’s Office in March of 2008. Correcting these negative balances resulted in an overexpenditure by the District of approximately $312,000, about 8% of the District’s current M&O budget. The Governing Board of the District submitted a request to the SPI in December of 2008 for a two-year payback period to correct the overexpenditure. HB 2251 will allow the District to repay the amount over a five-year period beginning in FY 10. Provisions · Permits the Santa Cruz Valley Union High School District to repay overexpenditures from FY 03 to FY 07 in equal installments over a five-year period beginning in FY 10. · Requires the District to pay interest at a rate determined by the SPI in addition to the monies required to be repaid. ?? ???? ?? Return to the table of contents HB 2352 aquifer protection permits; natural gas Sponsor: Representative Mason DPACommittee on Water and Energy xCaucus and COW House Engrossed HB 2352 adds certain class II injection wells to the list of facilities exempted from the Aquifer Protection Permit (APP) requirement. History Injection wells discharge liquid byproducts in deep, underground porous rock. Class II wells inject fluids associated with oil and natural gas production. The majority of the liquid that is released is a salt water (brine) solution. In order to prevent contamination, class II wells inject brine deep underground. Arizona has several large salt basins. As part of the natural gas storage process, these basins are injected with water in order to make brine. The brine is then removed and injected into a reservoir that is already unsuitable for drinking water. The removal of the brine creates a cavern in which pressurized natural gas can be stored. An APP issued by the Arizona Department of Water Quality is required if one owns or operates a facility that releases pollutants directly into an aquifer, onto the land surface, or in between an aquifer and the land. Currently, injection wells are considered a polluting facility, along with ten other facility types. The Safe Drinking Water Act (SDWA) was passed by Congress in 1974 in order to protect the nation’s drinking water. SDWA allows the United States Environmental Protection Agency to set health standards pertaining to natural and man-made water contaminants. Wells must comply with both the SDWA and Title 40 Code of Federal Regulations (CFR) Part 144, which controls underground injection. Provisions · Designates class II injection wells as exempt from aquifer protection permits if the well is being used in connection with natural gas storage and is subject to federal regulation under the Safe Drinking Water Act and 40 CFR part144. · Makes technical changes. Amendments Committee on Water and Energy · Adds class I injection wells to the list of facilities exempted from the Aquifer Protection Permit. ?? ???? ?? Return to the table of contents HB 2357 public education; students' religious liberties Sponsor: Representative Crandall DPCommittee on Education XCaucus and COW House Engrossed HB 2357 prohibits a public educational institution from discriminating against students or parents on the basis of a religious viewpoint or expression. History Arizona statute asserts that free exercise of religion is a fundamental right that applies even if laws, rules, or other government actions are facially neutral. Additionally, government is prohibited from substantially burdening a person’s exercise of religion, with certain exceptions (A.R.S. § 41-1493.01). For these purposes, government is defined as the state and any agency or political subdivision of the state, including a school district (A.R.S. § 41-1493). The Federal Equal Access Act stipulates that it is unlawful for any public high school to discriminate against, or deny equal access or fair opportunity to students who wish to conduct a meeting within a limited open forum on the basis of religious, political, philosophical, or other speech at such meetings. A limited open forum means an offering or opportunity provided by the school for one or more noncurriculum-related groups of students to meet on the premises during noninstructional time (20 U.S.C. § 4071). Arizona law extends the right to conduct noncurriculum-related group meetings to students in grades seven and eight. In order for a school to be deemed as providing a fair opportunity to these students, school policies must adhere to the following requirements: meetings must be voluntary, student-initiated, and not sponsored by any school or government entity; employees of school and government entities present at religious meetings may not participate; meetings cannot interfere with the orderly conduct of the school; and persons present who are not employed by the school district are not allowed to direct, conduct, control, or regularly attend the meetings (A.R.S. § 15-720). Provisions · Sipulates that a public educational institution cannot discriminate against students or parents on the basis of a religious viewpoint or expression. · Permits prayer or engagement in religious activities or expression to the same extent that non-religious activities and expression are permitted. · Allows students to wear clothing, jewelry, and other apparel that displays religious messages or symbols to the same extent that other clothing, jewelry, and apparel that display messages or symbols are permitted. · States that coursework requiring a student’s viewpoint must be evaluated on ordinary academic standards of substance and relevance and cannot be penalized or rewarded based on religious content or a religious viewpoint. · Prohibits this act from being construed to: · Authorize the state or its political subdivisions to require participation in prayer or other religious activities or violate any person’s Constitutional rights. · Limit the ability of a public educational institution or its agent to maintain order and discipline on campus or protect the safety of students and faculty. · Requires a public educational institution to adopt and implement a policy regarding compliance with this act and with requirements related to conducting meetings as outlined in A.R.S. § 15-720. · Allows this bill to be cited as “The Students’ Religious Liberties Act.” · Defines public educational institution. · Contains a severability clause. ?? ???? ?? Return to the table of contents HB 2368 property valuation; equalization calendar Sponsor: Representative Murphy DPCommittee on Ways & Means XCaucus and COW House Engrossed HB 2368 provides more time for county Assessors to submit values to the Department of Revenue (DOR) for equalization reviews. History The DOR adopts a schedule of valuing property in several counties every year that is consistent with DOR guidelines. Currently county assessors have until December 15th of the year proceeding the valuation year to provide valuation data. If they do not complete this requirement the DOR uses the latest available data. Equalization orders are issued by the DOR with the purpose of correcting property valuations between counties. The DOR shall issue an equalization order no later than January 15th of the valuation year to the county Assessor. Once an equalization order is sent the Governor, the President of the Senate and the Speaker of the House must all be notified by certified mail. The county assessor who receives an equalization order may appeal the order to the state Board of Equalization before February 15th. The county Assessor issues a Notice of Value (NOV) to each property owner before March 1st of each year. The NOV has to be submitted in writing to the property owner, and the county Assessor has to certify with the Board of Supervisors and the DOR that the notices were mailed. The director of the DOR can extend the final date for mailing notices beyond March 1st of 30 days for extenuating circumstances. Provisions · Provides the county Assessor until January 15th of the valuation year to submit values to DOR for equalization reviews. · Allows the DOR to issue the equalization order no later than February 15th instead of January 15th. · Allows the county Assessor to appeal the equalization order by March 1st instead of February 15th. · Allows the county Assessor to issue a NOV to property owners by March 15th of the property’s full cash value and limited value instead of March 1st. · Allows the director of the DOR to extend the final date for mailing notices beyond March 15th for extenuating circumstances, and extend the date for no more than 15 days from this date if the assessor cannot issue notices because of pending appeals to the state board of equalization. ?? ???? ?? Return to the table of contents HB 2424 illegal dumping; penalties Sponsor: Representative McGuire DPACommittee on Environment DPACommittee on Judiciary XCaucus and COW House Engrossed HB 2424 establishes requirements and penalties relating to the removal of trash and other debris from private or public property. History Arizona law requires the governing body of a city, town, or county to compel the owner, lessee, or occupant of property to remove trash or other debris which constitutes a hazard to public health. Many cities and counties in Arizona report that illegal dumping is a problem. In 2008, the city of Sierra Vista cleaned up 5 tons of illegally dumped trash. The city of Mesa spent $160,000 in 2006 to clean up illegal dumping sites, mainly in alleys. Currently, any person, firm, or corporation that places any trash or other debris on any private or public property not owned or under the control of the person, firm, or corporation is guilty of a class 2 misdemeanor for criminal littering and is required to pay all costs associated with removing the trash. HB 2424 expands the penalties for those persons in violation of the rules pertaining to trash removal to include class 1 misdemeanor, liability for all disposal costs, and a civil penalty of $1,800. Half of the civil penalty will be deposited in the general fund for the county in which the violation occurred. Guilty persons retain ownership of all dumped or abandoned trash until it is removed from the victim’s property and the guilty party must provide the city, town, or county with a receipt from a disposal facility as evidence that the trash no longer occupies the victim’s property. HB 2424 also provides an appeals process for victims who receive notices and assessments for the removal of trash issued by the city, town, or county. If ownership of trash or debris cannot be determined, no civil penalty will be assessed to the property owner; however, the owner will still be responsible for the removal of the trash or debris. Provisions · Increases the penalty to a class 1 misdemeanor and a $1,800 fine for any persons found guilty of the placement of trash on property not owned or controlled by that person, with the following conditions: If the violation occurs in an incorporated city or town, the penalty may be a civil violation, rather than a misdemeanor, and 50 percent of the fine is placed in the general fund for that city or town to clean future occurrences of illegal dumping; If the violation occurs on county land, 50 percent of the fine goes to the Solid Waste Fee Fund, as established by A.R.S. §49-881; Violators are liable for all assessments and costs incurred during the removal and disposal of trash; Violators must provide the city, town, or county with a receipt from a trash removal facility as proof that the trash has been disposed of properly; Violators retain ownership of all trash placed on state or federal land until the trash is removed. · Specifies that property owners are entitled to an appeals process where appropriate documentation can be presented to determine that the owner is not the originator of the trash and should be cleared of all civil penalties. · Adds a $2,500 fine payable by those parties found guilty of criminal littering or polluting, with half of the money to be deposited in the county’s general fund for the purposes of cleaning illegal dumping sites. · Increases the penalty for criminal littering to a class 1 misdemeanor for trash in volumes less than 300 pounds or 100 cubic feet. · Specifies that any assessment recorded after August 6, 1999 is prior and superior to all other liens. · Modifies the definition of property to include real property and all buildings located on real property. · Removes corporations or associations operating or maintaining thoroughfares from the definition of occupant. · Makes technical and conforming changes. Amendments Environment · Requires counties to deposit 50 percent of any assessed fine in the general fund for the purposes of illegal dumping cleanup. · Makes technical and conforming changes. Judiciary · Removes the requirement that the provision for appeal include appropriate documentation of the quantity, nature or specificity of the trash and the ability for the civil penalty to be waived if ownership of the trash cannot be determined. · Limits the requirement that violators keep ownership of all trash placed on state or federal land to land that is more than 40 acres. · Requires 50 percent fines paid for violations that occur on county land to be deposited in the general fund of the county in which the fine was assessed, rather than the Solid Waste Fee Fund, for the purposes of illegal dumping cleanup. · Makes technical and conforming changes. ?? ???? ?? Return to the table of contents HB2425 state treasurer; management fees Sponsor: Representative Kavanagh DPCommittee on Banking and Insurance DPCommittee on Appropriations XCaucus and COW House Engrossed HB2425 decreases management fees and changes the manner in which the State Treasurer receives its appropriated operating budget. History The State Treasurer (Treasurer) is one of six statewide elected officials. A person elected to the office of Treasurer may only serve up to two, four-year terms. The Treasurer is the state government’s chief financial officer, manages Arizona’s annual state revenues, directs the State’s banking services and manages Arizona’s investment portfolio. The Treasurer serves as the state government’s banking director. The Treasurer’s Office authorizes payments and must balance accounts. The Treasurer maintains a separate accounting system to provide checks and balances for the state accounting system. In addition, the Treasurer distributes investment earnings to the proper funds. The Treasurer’s Office has state banking services contracts with Arizona banks to process the state’s receipts and disbursements, handles money and security transfers, reports on the state’s accounts, balances and payment activities, and provides other related banking services. The Treasurer also determines the amount of funds that are not needed for current operating expenses. These funds are then invested in various ways, including into interest-bearing deposits in Arizona banks, U.S. Treasury and Federal agency securities, asset backed securities, banker’s acceptances, corporate notes, and equities. The Treasurer’s Office manages a balance of nearly $11.8 billion in fixed income and equity investments in 26 investment pools. The three major sources of these monies are: state taxes, fees, and other revenues; Local Government Investment Deposits; and State Land Trust Endowment Funds. Local governments have the option of investing money with the Treasurer. The Treasurer’s Office operates a Local Government Investment Pool (LGIP), which provides professional short-term investment services for a variety of public entities. The fair value balance of LGIP as of September 2008 was $3,262,563,000. The Local Government Investment Pool-Government (LGIP-GOV) functions under the same administrative rules as LGIP, except that the pool investments are limited to securities that carry the full faith and credit of the U.S. government. The fair balance value of LGIP-GOV as of September 2008 was $2,531,703,000. The local government deposits are voluntary. Provisions · Decreases the management fee from twelve-hundredths of one percent or less to six-hundredths of one per cent or less from the rate of earnings calculated on investment pools other than Permanent Endowment Funds. · Designates the management fee to the operating budget appropriated to the State Treasurer’s office each fiscal year. · Requires excess management fees collected each month to be deposited into the State General Fund. ?? ???? ?? Return to the table of contents HB 2439 concealed weapons permit; safety course Sponsors: Representatives Kavanagh, Ash, Barnes, et al. DPACommittee on Military Affairs and Public Safety XCaucus and COW House Engrossed HB 2439 exempts persons who meet specified criteria from completing the required firearms safety training program needed to obtain a permit to carry a concealed weapon (CCW). History Arizona is one of 48 states that require private individuals to obtain a CCW permit in order to carry a concealed weapon. Laws 1994, Chapter 109, Section 4 created the Arizona CCW program, which is administered by the Department of Public Safety (DPS). A person must meet the following criteria to be issued a CCW permit: · Be a resident of Arizona or a citizen of the United States · Be at least 21 years of age. · Not be under indictment for or be convicted of a felony. · Not suffer from mental illness and not have been adjudicated mentally incompetent or committed to a mental institution. · Not be unlawfully present in the United States. Additionally, the person must complete a firearms safety training program that is approved by DPS, unless one of the following conditions applies: · The person is an active duty county detention officer and who has been weapons certified by the officer's employing agency. · The person is an active duty Arizona Peace Officer Standards and Training Board certified or federally credentialed peace officer or who is honorably retired as a federal, state or local peace officer with a minimum of ten years of service. · The person is an honorably retired law enforcement officer who is issued a certificate of firearms proficiency from DPS. The person must also submit fingerprints for a criminal history check and pay the $60 permit fee. Once issued, the CCW permit is valid for five years. Provisions · Exempts the following people from the firearm safety training program required to obtain a CCW: · Persons honorably retired as a federal, state or local peace officer with a minimum of five years of service. · Community correctional officers, special investigators and Arizona Department of Corrections correctional officers. · Persons who have met all of the following requirements (Alternative Requirements): · Have completed a three hour training course on a pass or fail basis which addresses legal issues relating to the use of deadly force. · Has provided proof of one the following: · Completion of any National Rifle Association pistol course. · Completion of any pistol related firearms safety or training course at least eight hours long that is available to the general public and offered by law enforcement, a junior college, a college, a private or a public institution or organization or a firearms training school, institute or academy located in the U.S. · Completion of any law enforcement firearms safety or training course or class for security guards, investigators, special deputies or any division or subdivision of law enforcement or security enforcement. · Current military service or an honorable discharge from any service. · Participation in an organized shooting competition which shows the person holds a competitive ranking and demonstrates firearms proficiency at or above DPS standards. · Possession of a valid CCW, pistol or firearm permit issued by another state or political subdivision that required training or testing. · Completion of a law enforcement agency course that allows the person to carry a firearm for official police duties. · Completion of any firearms safety course approved by DPS. · Makes technical and conforming changes. Amendments Committee on Military Affairs and Public Safety · Requires persons using the Alternative Requirements to get verification of their experience from a qualified instructor. · Increases the length of the pass/fail training course in the Alternative Requirements from three to four hours. · Specifies that the pass/fail training course in the Alternative Requirements must cover the following topics: · Legal issues relating to the use of deadly force. · Mental conditioning for the use of deadly force. · Judgmental shooting. · Reduces the length of a college course used to meet the Alternative Requirements from eight to four hours. · Makes a technical and conforming change. ?? ???? ?? Return to the table of contents HB 2450 honorary diplomas; war veterans Sponsor: Representative Weiers JP DPCommittee on Military Affairs and Public Safety XCaucus and COW House Engrossed HB 2450 modifies the requirements for veterans seeking an honorary high school diploma from the State Board of Education (SBE). History Currently, A.R.S. § 15-203 requires the SBE to adopt rules in effect until December 31, 2006 that provide for the presentation of an honorary high school diploma to a person who has never obtained a high school diploma and who meets each of the following requirements: · Is at least sixty-five years of age. · Currently resides in Arizona. · Provides documented evidence from the Arizona Department of Veterans' Services (DVS) that the person enlisted in the armed forces of the United States before completing high school in a public or private school. · Was honorably discharged from service with the armed forces of the United States. Provisions · Removes current statute regarding adopting rules for the presentation of honorary diplomas to eligible veterans. · Requires the SBE to adopt rules to provide honorary high school diplomas to persons who have never obtained a high school diploma and who: · Currently reside in Arizona. · Provide documented evidence from DVS that the person is a veteran of WWI, WWII, the Korean Conflict, or the Vietnam Conflict. ?? ???? ?? Return to the table of contents HB 2463 school districts; accounting responsibility; threshold Sponsor: Representative Pratt DPCommittee on Education XCaucus and COW House Engrossed HB 2463 allows all school districts to apply to the State Board of Education (SBE) to assume accounting responsibility separate from the county school superintendent. History The Office of the Auditor General (OAG), in conjunction with the Arizona Department of Education, is required to prescribe a Uniform System of Financial Records (USFR) to be used by all school districts (A.R.S. § 15-271). The amount of state aid appropriated by the Legislature to school districts is apportioned to each county based on the state aid entitlement for the school districts located in that county (A.R.S. § 15-973). In order for a school district to make payments from a fund, the district must submit a voucher to the county school superintendent who draws a warrant on the county treasurer for all necessary expenses against the fund. The county school superintendent must draw the warrants in the order in which the vouchers were filed, and cannot draw a warrant for expenditures whose purpose is not included in the school district’s budget, or for expenditures in excess of the amount budgeted (A.R.S. § 15-304). Currently, a school district with a student count of more than 4,000 pupils may submit a request to the SBE to assume accounting responsibility and operate with full independence from the county school superintendent. The application submitted to the SBE must detail an accounting responsibility plan that documents administrative and internal accounting controls to achieve compliance with the USFR and include a compilation of resources required to implement accounting responsibility. Before submitting an application to the SBE requesting accounting responsibility, the school district must apply to the OAG for an evaluation that includes a review of the most recent financial statements audited by an independent certified public accountant (CPA), the most recent report on internal control, and a compliance and financial records questionnaire prepared by an independent CPA or a procedural review completed by the OAG. After the completion of the evaluation, the OAG may recommend approval or denial of accounting responsibility to the SBE (A.R.S. § 15-914.01). A school district approved for accounting responsibility must contract annually with an independent CPA for a financial and compliance audit. Based on the audit findings, the OAG may reevaluate schools districts to determine compliance with the USFR. Any school district that fails to maintain accounting standards as provided by the USFR and is found to be in noncompliance with the USFR by the SBE is not eligible to have independent accounting responsibility (A.R.S. § 15-914.01). Provisions · Permits any school district to apply to the SBE for accounting responsibility independent of the county school superintendent. · Makes technical changes. ?? ???? ?? Return to the table of contents HB 2495 in-state tuition; veterans Sponsor: Representative Fleming W/DCommittee on Education DPCommittee on Appropriations XCaucus and COW House Engrossed HB 2495 provides in-state student status for tuition purposes at any public university or community college in Arizona for a veteran who was honorably discharged while serving at a military installation in Arizona. History Except as otherwise provided by statute, a person is not entitled to classification as an in-state student at a public university or community college in Arizona until the person is domiciled in this state for one year. Domicile is defined as a person’s true, fixed, and permanent home and place of habitation (A.R.S. § 15-1801). The Legislature has provided several exceptions to the domicile requirement, three of which allow the following military personnel to be classified as an in-state student: 1) a member of the Armed Forces of the United States, their spouse, or their dependent, if they are stationed in Arizona pursuant to military orders; 2) a member of the Armed Forces, their spouse, or their dependent, if they are stationed outside of Arizona, but claimed Arizona as their legal residence for the previous 12 months; and 3) a veteran who was honorably discharged from the Armed Forces, their spouse, or their dependent, if they claimed Arizona as their legal residence for 12 consecutive months prior to the discharge, demonstrate evidence of intent to establish a domicile, filed an Arizona resident income tax return in the prior tax year, and physically relocated to Arizona following their discharge (A.R.S. § 15-1802). Fiscal Impact The General Fund (GF) impact of this bill is uncertain because it would depend on how many veterans responded to the new incentives created by the bill. To the extent that it reduces tuition collections from current students, the bill would reduce that fund source. Additionally, if the bill creates greater incentive to attend a university or community college, there would be a cost to the GF as increased enrollment generates additional state funding. The Arizona Department of Veterans’ Services (DVS) estimates there are about 600,000 veterans currently residing in Arizona. However, DVS does not track the number of veterans who reside in Arizona after they have been honorably discharged from an Arizona military installation. Provisions · Classifies a person who was honorably discharged from an Arizona military installation, regardless of the length of time the person was domiciled in Arizona, as an in-state student for tuition purposes at any public university or community college in Arizona. ?? ???? ?? Return to the table of contents HB 2503 contractors' recovery fund; person injured Sponsor: Representative McComish DPACommittee on Commerce XCaucus and COW House Engrossed HB 2503 expands those qualified to collect from the Residential Contractors’ Recovery Fund. History The Arizona State Registrar of Contractors was established as a regulatory agency in 1931 by the Arizona State Legislature. The agency's mission is to promote quality construction by Arizona contractors through a licensing and regulatory system designed to protect the health, safety and welfare of the public. In July of 1981, the Residential Contractors' Recovery Fund (Recovery Fund) was established for the purpose of reimbursing homeowners for improper workmanship by residential licensed contractors. A person injured as defined by A.R.S. § 32-1131 can recover losses incurred due to poor workmanship or non-performance by a licensed residential contractor. Any contractor applying for a license or license renewal must contribute to the Recovery Fund. The Recovery Fund is available to any owner of residential real property which is classified as class three property under A.R.S. §42-12003 and which is actually occupied or intended to be occupied by the owner as a residence (A.R.S. § 32-1131). A homeowner may recover a maximum of $30,000 per residence and the Recovery Fund is not subject to claims by suppliers, subcontractors, or laborers. Only actual damages can be recovered and payment is not available if the residential contractor’s license was inactive, expired, cancelled, suspended, revoked or not issued at the time of the contract. A total of $200,000 in claims will be paid for any particular residential contractor. Over the past four years the Recovery Fund has paid out an average of $5.3 million per year to injured parties. Provisions · Extends the definition of person injured to include owners of single family residential rental property. · Disqualifies owners of misclassified properties from collecting from the Recovery Fund. Amendments · Narrows the definition of person injured to only include owners of residential property that is used solely as leased or rented property. ?? ???? ?? Return to the table of contents HB 2513 reverse mortgages Sponsor: Representatives Konopnicki DPCommittee on Banking and Insurance XCaucus and COW House Engrossed HB 2513 adds a new chapter to Title 6, dealing with reverse mortgages. History A reverse mortgage is a loan against a home that lets the homeowner convert a portion of the equity in the home into cash, and requires no repayment for as long as the homeowner lives in the home. The loan can be paid to the homeowner all at once, as a regular monthly advance, or at times and in amounts that the homeowner and creditor agree to. The homeowner’s estate is required to pay the back the loan plus interest and fees at death, or the homeowner must pay back the loan if the homeowner or permanently moves out of the home. Reverse mortgages are offered to persons 62-years-old or older, who own their home outright or have a very small mortgage. Because the homeowner makes no monthly payments, the amount owed on the loan increases over time. As the debt increases, the amount of equity in the home generally decreases. In most cases, the homeowner will never owe more on the loan than what their home is worth, and if the amount for which the home is sold exceeds the amount owed on the reverse mortgage, the balance goes to the homeowner or the homeowner’s heirs. Reverse mortgage homeowners continue to own their homes, and are thus still responsible for property taxes, insurance, and repairs. If the homeowner fails to pay for repairs, insurance and property taxes, the loan balance will become due and payable. Reverse mortgages are offered through private lenders, government agencies and mortgage brokers. According to the United States Department of Housing and Urban Development (HUD), the number of reverse mortgages in insured by the Federal Housing Authority is on the rise in Phoenix. In 2005, there were 919 reverse mortgages, up 59 percent from the 2004 total of 577. In 2006, the number jumped more than 216 percent, to 2,905. Provisions Financial Counseling · Requires that before accepting a final and complete application for a reverse mortgage or assessing any fees, the originator must: · Provide the homeowner a list of at least five housing counseling agencies, at least two of which who are able to provide counseling by telephone. · Receive certification from the homeowner or the homeowner’s representative that the homeowner has received counseling from a housing counseling agency. The certification is required to be signed by the homeowner and the agency counselor, and must include the date of the counseling as well as the name and address of the counselor and the homeowner. The date on the certification must show that the counseling occurred within the six months prior to the homeowner accepting a final and complete application for a reverse mortgage. The originator is required to keep the certification for the term of the reverse mortgage. · Mandates that adequate financial counseling be provided by a counselor who is an independent third party. · Explains that to be considered an independent third party, the counselor can not be associated with or paid by a party who: Originates or services the reverse mortgage. Funds the loan underlying the reverse mortgage. Sells annuities, investments, long-term care insurance or any other type of financial or insurance product. · Instructs that counseling services be provided by housing counseling agencies and by counselors who adhere to uniform counseling protocols approved by HUD. Required Disclosures · Orders the originator, at least ten days before closing, to provide the homeowner with access to a statement that 1) informs the homeowner that his or her liability under the reverse mortgage is limited and 2) explains the homeowner’s rights, obligations, remedies with respect to temporary absences from the home, late payments and payment default by the originator and all conditions requiring satisfaction of the loan obligation. · Directs the originator to fully disclose in writing before entering into a reverse mortgage the following information: · All costs charged by the originator and whether they are required to obtain the reverse mortgage. · All terms and provisions with respect to insurance, repairs, alterations, payment of taxes, default reserve delinquency charges, foreclosure proceedings, anticipation of maturity and any additional and secondary liens. · A statement of the projected total cost of the reverse mortgage to the homeowner based on the projected future loan balance for two or more projected loan terms. The statement must include: · The cost for a short term mortgage. · The cost for a loan term equaling the actuarial life expectancy of the homeowner. Reverse Mortgage Agreement · Allows the reverse mortgage to provide for a fixed or variable interest rate or future sharing of the appreciation in the value of the property between the originator and the homeowner. · Requires the reverse mortgage agreement to disclose any interest rate or other fees to be charged during the life of the mortgage. · Mandates that the reverse mortgage agreement provide for future payments to the homeowner by payment of the amount based on accumulated equity minus applicable fees and charges according to the method that the homeowner selects from the following: · Based on a line of credit. · On a monthly basis over a term specified by the homeowner. · On a monthly basis over a term specified by the homeowner and based on a line of credit. · On a monthly basis over the tenure of the homeowner. · On a monthly basis over the tenure of the homeowner and based on a line of credit. · Directs the reverse mortgage to provide that the homeowner may change the method of payment to any other approved method of payment, except in the case of a fixed rate reverse mortgage. · Instructs that the reverse mortgage must contain restrictions ensuring that the homeowner does not fund any unnecessary costs for obtaining the reverse mortgage. · Commands the originator to provide the homeowner with a yearly summary of the total principal amount paid to the homeowner under the loan secured by the reverse mortgage, the total amount of deferred interest added to the principal and the outstanding loan balance at the end of the preceding year. · Permits whole or partial prepayment without penalty at any time during the term of the reverse mortgage. · Clarifies that penalty does not include: · Any fees, payments or other charges that would otherwise be due when the reverse mortgage becomes due and payable. · Any closing costs that, according to the agreement, the homeowner owes if he or she repays the reverse mortgage in whole or in part before the date in the agreement, so long as the repayment occurs within five years of the date the agreement was made. · Makes reverse mortgages due and payable if: · The property is not the principal residence of at least one homeowner. · The homeowner conveys all of his or her title in the property and no other homeowner retains title. · The homeowner fails to occupy the property for more than 12 months due to physical or mental illness and the property is not the principal residence of at least one other homeowner. · An obligation of the homeowner under the mortgage is not performed. · States that the reverse mortgage will not become due and payable if the legal title to the property is held in the name of a trust and the occupant is a beneficiary of the trust who uses the property as a principal residence. · Subjects an originator’s right to collect the outstanding balance under the loan to the statute of limitations for written loan contracts. The statute of limitations begins tolling when: · The date that the reverse mortgage becomes due and payable as specified in the agreement, or The date the originator accelerates the loan due to default. Homeowner Liability and Prohibited Practices · Specifies that the homeowner is not liable for a difference between the net amount of the remaining debt of the homeowner under the reverse mortgage and the amount recovered by the originator from the net sales proceeds from the dwelling that is subject to the reverse mortgage. · Prohibits an originator from: Offering an annuity, investment, long-term care insurance or other type of financial instrument to the homeowner before the closing of the reverse mortgage or before the expiration of the right of the homeowner to rescind the reverse mortgage agreement. Referring the homeowner to anyone for the purchase of an annuity before the closing of the reverse mortgage or before the expiration of the right of the homeowner to rescind the reverse mortgage. Enforcement · States that acts or practices that violated A.R.S. Title 6, Chapter 16 constitutes consumer fraud and is subject to enforcement through private action and enforcement by the Attorney General. · Stipulates that any provision of a reverse mortgage agreement that violates A.R.S. Title 6, Chapter 16 is unenforceable against the homeowner. · Requires any private action against a creditor to be commenced within six years after the closing of the reverse mortgage. · Explains that the remedies provided in A.R.S. Title 6, Chapter 16 are not intended to be the exclusive remedies available to the homeowner. ?? ???? ?? Return to the table of contents HB 2525 TAPBI programs; schools Sponsor: Representative Hendrix DPCommittee on Education XCaucus and COW House Engrossed HB 2525 specifies that Technology Assisted Project-Based Instruction (TAPBI) students can generate Average Daily Membership (ADM) at anytime during the day or year, makes changes to the TAPBI program requirements, and creates the TAPBI Advisory Committee (Committee). History The TAPBI program is a distance-learning pilot program established in 1998 by the Legislature to improve pupil achievement and extend academic options beyond the four walls of the traditional classroom. Distance learning programs like TAPBI exist in all 50 states. According to Keeping Pace, a report issued in 2008 on the current status of online learning, 34 states operate state-led online learning options. Most state-led programs and initiatives are designed to work with existing school districts to supplement course offerings for students at the high school level and are primarily funded by separate state appropriations rather than a per-pupil funding formula. Keeping Pace also reports that another 21 states, including Arizona, have full-time online schools. Typically these schools are charter schools, but there are also district-run programs in some states. Participation in TAPBI is currently limited to seven school districts and seven charter schools. At least 80% of the students accepted by TAPBI schools each year must have been previously enrolled in and attended a public school in the previous school year. Most TAPBI schools serve various types of students including gifted, at-risk, and homebound students. TAPBI schools typically use Internet-based applications, known as learning management systems, to create and deliver learning content. This content includes online reading materials, interactive exercises, discussion forums, video clips, and quizzes. While participating in a TAPBI, students are able to pace themselves according to their individual needs when reading textbooks, completing homework assignments, and working on projects. Just like other public schools, TAPBI receives per-pupil funding based on Average Daily Membership (ADM). The Superintendent of Public Instruction (SPI), the State Board of Education (SBE), and the State Board for Charter Schools (SBCS) provide oversight for the TAPBI Program. TAPBI schools are required to file an annual report that includes descriptions of educational services, operational and administrative efficiency, overall cost, academic achievement, and student and parent satisfaction surveys. After receiving the annual reports, the Joint Legislative Budget Committee (JLBC), in conjunction with the state boards, issue a compilation of each of the schools’ annual reports. In addition, each TAPBI school must be reviewed by their respective state board every 5 years to determine the effectiveness of the schools’ participation in the pilot program. A 2007 Performance Audit of the TAPBI program found errors in ADE’s accounting system that overfunded TAPBI schools by about $6.4 million. The audit also made 20 recommendations for the improvement of the TAPBI program; according to the December 2008 follow-up report, 6 of these recommendations have been implemented and another 13 are in the process of being implemented. The final recommendation was to make appropriate adjustments to TAPBI funding for the previous fiscal years in order to recoup the monies that were overfunded. However, a law enacted last year prohibited ADE from recovering these monies. Provisions · Removes the requirement for a TAPBI program to be based on the availability of broadcast quality television production. · Specifies that at least 80% of TAPBI students must have been previously enrolled in and attended a public school in this state or in any other state in the previous school year. · Mandates that all TAPBI students must reside in Arizona. · Asserts that TAPBI students do not incur absences for the purpose of determining ADM and may generate ADM for attendance at any time during the fiscal year. · Stipulates that the ADM of a TAPBI student cannot exceed 1.0. · Directs TAPBI schools to calculate ADM by dividing the number of instructional hours reported in the student’s daily log by the applicable hourly requirements prescribed by law for that student. · Requires multiple diverse assessment measures and proctored administration of required state standardized tests to be included in TAPBI’s instructional programs. A description of the mechanisms implemented must be included in the TAPBI schools’ annual reports. · Establishes the eleven-member Committee comprised of: · Two State Representatives · Two State Senators · The Superintendent of Public Instruction or the Superintendent’s designee. · A member of the SBCS. · A member of the SBE. · Four representatives of TAPBI programs who meet the following criteria: · At least one representing a TAPBI school district. · At least one representing a TAPBI charter school. · At least one representing a TAPBI program that provides full-time instruction. · At least one representing a TAPBI program that provides supplemental instruction. · At least one representing a TAPBI program that provides instruction in any combination of grades one through eight. · At least one representing a TAPBI program that provides instruction in any combination of grades nine through twelve. · Charges the Committee to review and make recommendations on: The progress of TAPBI programs. A process for the statewide implementation of TAPBI. The funding of TAPBI programs. The annual reporting requirements of TAPBI programs. · Allows the Committee to use the expertise and services of the staff of the ADE and SBCS. · Directs the Committee to submit a report by December 1, 2009 to the Governor and the Legislature summarizing their findings and recommendations. · Repeals the Committee on September 30, 2010. · Makes technical and conforming changes. ?? ???? ?? Return to the table of contents HB 2530 reckless driving; prior convictions Sponsor: Representative Ash DPCommittee on Transportation and Infrastructure XCaucus and COW House Engrossed HB 2530 provides that when applying the 24-month provision related to reckless driving, the dates of the commission of the offense must be the determining factor irrespective of the sequence of the offenses. History Arizona Revised Statutes (A.R.S.) § 28-693 establishes that a violation relating to reckless driving is a Class 2 misdemeanor. The judge may require a person convicted of reckless driving to surrender their driver’s license to a police officer. The conviction must be reported to the Arizona Department of Motor Vehicles. Additionally, the person’s driving privileges may be suspended for up to ninety days. A person convicted of a second violation of this section or other specified moving violations within 24 months is guilty of a Class 1 misdemeanor and is not eligible for probation, pardon, suspension of sentence or release until the person has served at least twenty days in jail. A judge may require surrender of the driver’s license and upon submission of the abstract of conviction from the court to MVD, MVD must revoke the driving privileges of the person. A person required to serve jail time for a reckless driving conviction provided the court receives confirmation that the person is employed or is a student, they may be allowed out of jail for up to twelve hours a day, five days a week to attend school or fulfill their employment responsibilities. The remainder of the time must be spent in jail until the sentence is served. Provisions · Requires that the dates of the commission of the offense must be the determining factor, irrespective of the sequence of the offenses, in applying the 24-month provision. ?? ???? ?? Return to the table of contents HB 2533 unlawful roadside solicitation of employment Sponsor: Representative Kavanagh DPCommittee on Judiciary XCaucus and COW House Engrossed HB 2533 specifies a Class 1 misdemeanor for standing in or along a street, roadway or highway and impeding traffic while attempting to solicit employment from an occupant of a motor vehicle. History For a Class 1 misdemeanor, a person may be sentenced to up to six months in jail and may be sentenced to a fine of up to $2,500. Provisions · Specifies a Class 1 misdemeanor for standing in or along a street, roadway, or highway and soliciting employment from an occupant of a motor vehicle and impeding the flow of traffic. · Provides an exemption for persons who perform the solicited work within 500 feet of the place at which they were standing. ?? ???? ?? Return to the table of contents HB 2558 insurance; cancer treatment; medical references Sponsor: Representative Ash DPCommittee on Health and Human Services XCaucus and COW House Engrossed HB 2558 updates the resources for identifying off-label cancer treatment medications that insurers must provide coverage for, if they otherwise would have covered those medications. History Title 20 of Arizona Revised Statutes identifies a variety of health insurance entities, each of which has its own set of statutes governing it. They include: · Hospital, Medical, Dental, and Optometric Service Corporations (HMDOs). · Health Care Services Organizations (HCSOs). · Disability Insurers (DIs). · Group Disability Insurers (GDIs). · Blanket Disability Insurers (BDIs). · Accountable Health Plans (AHPs). Current law states that the insurance entities listed above, whose contracts provide coverage for prescription drugs, must not limit or exclude the coverage of a prescription drug prescribed for the treatment of cancer, based on the fact that the United States Food and Drug Administration has not approved that drug for treatment of the specific cancer for which the drug has been prescribed, as long as the drug appears in certain specified medical literature as safe and effective for treatment of the type of cancer for which it was prescribed. Current law further states that the aforementioned requirement does not require coverage of a prescription drug that is not included in the drug formulary of contractually covered prescription drugs. Provisions · Makes the following changes to the statutes dealing with HMDOs, HCSOs, DIs, GDIs, BDIs, and AHPs. · Removes the American Medical Association Drug Evaluations and the Drug Information for the Health Care Provider as acceptable sources to identify off-label prescription cancer medications. · Adds the National Comprehensive Cancer Network’s Drugs and Biologics Compendium, the Thomson Micromedex’s compendium Drugdex, the Elsevier Gold Standard’s Clinical Pharmacology Compendium, and any other authoritative compendia as identified by the United States Secretary of Health and Human Services as acceptable sources to identify off-label prescription cancer medications. · Makes technical and conforming changes. ?? ???? ?? Return to the table of contents HB 2568 unlawful use of building; marijuana Sponsor: Representative Driggs DPCommittee on Judiciary XCaucus and COW House Engrossed HB 2568 includes marijuana in the set of drugs to which illegal use of a building applies. History Arizona Revised Statutes (A.R.S.) § 13-3421 establishes criminal penalties for lessees or occupants of a building who use it or fortify it for the purpose of unlawfully selling, manufacturing, or distributing dangerous drugs or narcotic drugs. Use of a building for such a purpose is a Class 6 felony, and fortification of a building for such a purpose is a Class 4 felony. Fortification includes installation of physical barriers to entry of a building as well as the use of preventive means such as guard dogs or alarm systems. Provisions · Adds marijuana to the class of drugs to which unlawful uses of a building apply. · Adds production of specified drugs to the class of unlawful uses of a building. · Contains technical and conforming changes. ?? ???? ?? Return to the table of contents HCR 2034 repeal business personal property tax Sponsor: Representative Gowan DPACommittee on Military Affairs and Public Safety XCaucus and COW House Engrossed HCR 2034, upon voter approval, exempts from taxation personal property that is used for agricultural purposes or in a trade or business. Summary of the Proposed Amendment The proposed amendment to HCR 2034 expresses the Legislature’s full support for establishing a state veterans’ cemetery in Tucson. History of the Proposed Amendment The city of Tucson is ranked thirty-second in population in the United States. By 2015, there are projected to be 115,000 veterans within a seventy-five mile radius of the city. Currently, the nearest state veterans’ cemetery to Tucson is in Sierra Vista, approximately a two hour drive away. Appropriate property has been identified and is available for acquisition on assurance that a Tucson veterans’ cemetery is financially feasible and could move forward. In October 2001, the Southern Arizona Veterans Memorial Cemetery was established on approximately 145 acres of land previously part of Fort Huachuca Military Reservation. The cemetery was made possible from a grant from the Veterans Affairs State Cemetery Grant Service in an amount of $7.7 million for construction and equipment. Provisions of the Proposed Amendment · Expresses the Legislature’s full support for establishing a state veterans’ cemetery in Tucson. · Pledges that the Legislature will work to assist in the planning, acquisition and preparation of property for the state veterans’ cemetery in Tucson with the financial support of the U.S. Department of Veterans Affairs. · Requests that the U.S. Department of Veterans Affairs participate in enabling the Tucson veterans’ cemetery to become a reality. · Requires the Arizona Secretary of State to transmit copies of the resolution to the Secretary of the U.S. Department of Veterans Affairs and to the Arizona Congressional delegation. Amendments Committee on Military Affairs and Public Safety · The amendment was adopted. ?? ???? ?? Return to the table of contents ---------- DOCUMENT FOOTER --------- Page 1 of 45 ---------- DOCUMENT FOOTER ---------