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ARIZONA HOUSE OF REPRESENTATIVES

Forty-eighth Legislature – First Regular Session

SENATE COMMITTEE ON PUBLIC SAFETY AND HUMAN SERVICES

HOUSE OF REPRESENTATIVES COMMITTEE ON HUMAN SERVICES AND SENATE PUBLIC SAFETY AND HUMAN SERVICES AND HOUSE HUMAN SERVICES COMMITTEE OF REFERENCE FOR STATUTORY AUDITS

 RELATED TO THE DEPARTMENT OF ECONOMIC SECURITY

Minutes of Meeting

Monday, November 19, 2007

SHR 109  --  9:00 a.m.

Pursuant to Laws 2006, Chapter 330, Section 4, Cochairman Gray and Cochairman Hershberger called the committees to order at 9:07 a.m.

Members Present

Senator Jack Harper*                                      Representative Mark Anderson

Senator Leah Landrum Taylor*                      Representative Nancy Barto*

Senator Rebecca Rios                                     Representative David Bradley*

Senator Victor Soltero            *                                  Representative Chad Campbell*

Cochairman Senator Linda Gray*                  Representative Barbara McGuire

                                                                        Representative Rick Murphy

                                                                        Representative Andrew Tobin*

                                                                        Cochairman Representative Pete Hershberger*

Members Absent

Senator Chuck Gray*                                     Representative Judy Burges

Senator John Huppenthal                                Representative Mark DeSimone

*Committee of Reference (COR) Members

Cochairman Gray explained that because of statutory requirements, the Senate Committee on Public Safety and Human Services and the House of Representatives Committee on Human Services were called to this meeting, but only the Committee of Reference members are permitted to make recommendations and vote.

PRESENTATION ON TANF CASH ASSISTANCE

Tracy L. Wareing, Director, ADES, narrated a presentation on Temporary Assistance for Needy Families Cash Assistance Program (TANF) (Attachment 1).

Ms. Wareing responded to questions posed by Committee members as follows:

• There are procedures to ensure that recipients of TANF have legal presence in the U.S. and are eligible to receive services according to federal law.
• There is not a state requirement that applicants or recipients of cash assistance must be tested for drugs.
• The disabled community would not reach the 60-month lifetime benefit limit.  Technically, six-month extensions could continue to be granted.  In addition, there are many programs available for the disabled through the Division of Developmental Disabilities and Vocational Rehabilitation programs.
• There are additional extensions for persons in rural areas.
• Ms. Wareing explained that according to state law, the 60-month time clock did not begin until October 2002.

Senator Harper inquired as to whether there were any Committee members who stated they would have a conflict of interest in renewing any section of ADES.

Cochairman Gray asked if Senator Harper was referring to COR members. He replied yes, and
Cochairman Gray responded no.

Senator Harper requested that his written inquiry be placed in the minutes of the meeting (Attachment 2), along with any declaration of any member who might declare a conflict of interest.  Cochairman Gray agreed with the request.

Dan Hunt, Office of the Auditor General, narrated a Presentation on ADES/DCYF/CPS information briefs and questions-and-answers documents (Attachment 3).

Ken Deibert, Deputy Director, Division of Children Youth and Families, ADES, answered questions posed by Committee members as follows:

• The department is in the process of evaluating the In-Home Services Outcome Goals for contracts awarded in 2006. 
• Child abuse protection laws take effect at the time of a child’s birth.  ADES does not have jurisdiction to intervene with an individual who is using alcohol or legal substances during a pregnancy.
• If DCYF receives a report through CPS that a woman is pregnant and is abusing substances, the individual is referred to a substance abuse program for evaluation and assessment.   DCYF has no legal authority to order or mandate the individual to comply with a referral.  There is no penalty for an individual who uses alcohol or illicit drugs during a pregnancy.
• Access to Families First, the substance abuse program available through the child welfare system, is a tremendous asset for Arizona.  According to data received through periodic drug testing, sixty percent of the individuals referred to the program complete the program and maintain abstinence.
• A medical doctor is required to report an incidence of potential abuse or neglect of a child.  
• If illicit substances or drug paraphernalia were discovered during a home investigation, that information would be reported to law enforcement.
• Because of the Deficit Reduction Act, there will a $17 million reduction in reimbursement from the federal government on an annual basis.  Last year, ADES did request, and receive a supplemental appropriation from the Legislature.
• As to the $10 million deficit, Mr. Deibert explained that when ADES receives definitive rules from the Children’s Bureau at HHS as to what they will reimburse, the division would immediately change procedures to ensure the deficit does not grow. 

ADES Follow-up to Sunset Review

Shan Hays, Office of the Auditor General, narrated a presentation of the ADES Follow-up to Sunset Review (Attachment 4).

DES CONTINUATION HEARING

Tracey Wareing, Director, ADES, responded to the Auditor General by narrating a presentation on DES Continuation Hearing (Attachment 5).  Ms. Wareing answered questions posed by Committee members as follows:

• ADES has closely monitored eligibility and accuracy determinations have met most federal standards over the last few years.  The improvement recommendations from the Auditor General have benefited the programs.

Ken Deibert, Deputy Director, Division of Children Youth and Families, ADES, explained that if a child is removed from a biological parent, and there is a current child support order for that child, the Child Welfare System could receive that payment to offset state and federal costs associated with providing out of home care for that child.  With the permission of the biological caregiver parent, ADES can request a child support order from the Court for an absent parent.

Ms. Wareing continued with her presentation.  She responded to questions posed by Committee members as follows:

• ADES has seen minimal impact from the increase in the minimum wage on the developmentally disabled community’s ability to work, partly due to involvement of the Industrial Commission.  It is important for those individuals who are capable of work to receive a full wage.

Senator Leah Landrum Taylor commented that from the information presented to the Committee, many improvements have been made, and she believes that ADES should receive a ten-year extension.

Sharon Sergent, Deputy Director, ADES, in response to query from Representative Tobin regarding the accuracy of processing unemployment insurance and eligibility, explained that the percentage of overpayment is approximately 11 percent.  She said she would verify that number and report back to the Committee.

Ms. Wareing responded to questions posed by Committee members as follows:

• The number of finalized adoptions has increased every year for the past several years.

• ADES is working on an innovative project in conjunction with the Department of Corrections.  When a person who has children is being released from DOC, the Family Connection Team coordinates with the staff from DOC prior to, and after release, to determine what support services can be provided for the family.

• There are some circumstances under federal law wherein a person who is not a citizen may obtain a social security number.

• Ms. Wareing stated she would provide the Committee with information regarding the curriculum for cultural competency training.

Senator Soltero moved that the Committee of Reference make the recommendation

            to continue the Arizona Department of Economic Security for ten years.          Cochairman             Hershberger seconded the motion.

Mr. Tobin said he had not had all of his questions answered.  He said he was uncomfortable with recommending a ten-year extension.

Cochairman Hershberger said that ADES receives extensive scrutiny by the Legislature on an on-going basis.  He said he believes the completion of almost all of the ninety recommendations reflects the ADES process of continual improvement.  He explained that regardless of the length of continuation, the Legislature would maintain responsibility for oversight of the agency.  He said he respectfully disagreed with a shorter period of time.

Cochairman Gray stated there have been many improvements to the agency under the leadership of the new Director of ADES, and she commended the Director.

Senator Soltero said that the Committee could request an audit of ADES at any time if problems develop.  Cochairman Gray agreed.

Question was called on the motion that the Committee of Reference make the recommendation to continue the Arizona Department of Economic Security for ten             years.  The motion carried by a voice vote.

THE MEETING RECESSED AT 11:17 A.M.

THE MEETING RECONVENED AT 11:27 A.M. ALL MEMBERS WERE PRESENT EXCEPT SENATOR CHUCK GRAY, SENATOR HUPPENTHAL, SENATOR HARPER, REPRESENTATIVE BURGES, REPRESENTATIVE DESIMONE, REPRESENTATIVE ANDERSON AND REPRESENTATIVE TOBIN.

Presentation on DES/DCYF Prevention Programs Performance Audit

Catherine Dahlquist, Auditor General’s Office, narrated a presentation on DES/DCYF Prevention Programs Performance Audit (Attachment 6). 

Ms. Dahlquist responded to questions posed by Committee members as follows:

• A site visit by a contractor will typically take two days.  The payment rate is approximately $7,000 for each site visit report.  The contract evaluator reviews family files, various supervisory internal controls, and contacts certain family members to ensure the quality of services received.  The evaluator monitors the operation of the program site.  Based on the review, the evaluator holds an exit meeting with the site supervisor and staff to discuss findings.  If improvements are recommended, or the site staff request particular training, a follow up visit will be scheduled. 

• Ms. Dahlquist said she reviewed approximately 10 of the 58 site visit reports, and generally, the sites seemed to be meeting requirements.

Ken Deibert, Deputy Director, Division of Children Youth and Families, ADES, thanked the Auditor General’s staff for their work in evaluation of the DCYF Prevention Program.  He explained the Healthy Families program served in excess of 6,000 people this past year, and 98 percent of those individuals served did not have contact with the CPS program.    He said the DCYF believes that at the conclusion of the six-month review by the Auditor, all of the recommendations that were made will indicate the program has demonstrated full implementation of the recommendations.

Mr. Deibert responded to questions posed by Committee members as follows:

• DCYF provides both individual parenting classes, as well a group training programs.
• The evaluation that contractors provide assures that DCYF is meeting standards of accreditation for a Healthy Families Program.  The monies charged for evaluations includes preparation and review of data before going to a site, training, special consultation with the program staff, preparation of reports, a long term corporate data analysis, and ongoing consultation and support.
• The five-year contracts are awarded through the typical procurement process.

Cochairman Gray asked if there were any recommendations by the Committee of Reference.
Cochairman Hershberger noted these programs do not require a recommendation to continue.
Cochairman Gray agreed.

Presentation on ADES – Division of Child Support Enforcement

Anne Hunter, Office of the Auditor General, narrated a presentation on the Division of Child Support Enforcement, DES (Attachment 7).

Sharon Sergent, Deputy Director, ADES, explained that ADES has concurred with all of the Auditor General’s Findings, has already implemented certain provisions, and will take steps to address the remaining recommendations.  She provided a summary of the ADES response to the Findings.

Cochairman Hershberger thanked ADES and the Auditor General’s Office for the presentations.
Cochairman Gray voiced her thanks and noted that many improvements have been made.

Without objection, the meeting adjourned at 12:23 p.m.

                                                                        ________________________________

                                                                        Yvette O’Connor, Committee Secretary

                                                                        November 19, 2007

(Original minutes, attachments and audio on file in the Office of the Chief Clerk; video archives available at http://www.azleg.gov/)

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                                                Senate Committee On Public Safety And Human Services

                                                                               House Of Representatives Committee On Human Services

                                                                                              and Senate Public Safety And Human Services and

                                                                                              House Human Services Committee Of Reference

                        November 19, 2007

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