Chapter 0393 - 442R - C Ver of HB2199

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 23-901, Arizona Revised Statutes, is amended to read:

23-90123-901. Definitions

In this chapter, unless the context otherwise requires:

1. "Award" means the finding or decision of an administrative law judge or the commission as to the amount of compensation or benefit due an injured employee or the dependents of a deceased employee.

2. "Co-employee" means every person employed by an injured employee's employer.

3. "Commission" means the industrial commission of Arizona.

4. "Compensation" means the compensation and benefits provided by this chapter.

5. "Employee", "workman", "worker" and "operative" means:

(a) Every person in the service of the state or a county, city, town, municipal corporation or school district, including regular members of lawfully constituted police and fire departments of cities and towns, whether by election, appointment or contract of hire.

(b) Every person in the service of any employer subject to the provisions of this chapter, including aliens and minors legally or illegally permitted to work for hire, but not including a person whose employment is both:

(i) Casual.

(ii) Not in the usual course of the trade, business or occupation of the employer.

(c) Lessees of mining property and their employees and contractors engaged in the performance of work which is a part of the business conducted by the lessor and over which the lessor retains supervision or control are within the meaning of this paragraph employees of the lessor, and are deemed to be drawing such wages as are usually paid employees for similar work. The lessor may deduct from the proceeds of ores mined by the lessees the premium required by this chapter to be paid for such employees.

(d) Regular members of volunteer fire departments organized pursuant to title 48, chapter 5, article 1, regular firemen of any volunteer fire department, including private fire protection service organizations, organized pursuant to title 10, chapters 24 through 40, volunteer firemen serving as members of a fire department of any incorporated city or town or an unincorporated area without pay or without full pay and on a part-time basis, and voluntary policemen and volunteer firemen serving as such in any incorporated city, town or unincorporated area without pay or without full pay and on a part-time basis, are deemed to be employees, but for the purposes of this chapter, the basis for computing wages for premium payments and compensation benefits for such regular members of volunteer fire departments organized pursuant to title 48, chapter 5, article 1, or organized pursuant to title 10, chapters 24 through 40, regular members of any private fire protection service organization, volunteer firemen, and volunteer policemen of such these departments or organizations shall be the salary equal to the beginning salary of the same rank or grade in the full‑time service with the city, town, volunteer fire department or private fire protection service organization, provided if there is no such full‑time equivalent then the salary equivalent shall be as determined by resolution of the governing body of the city, town or volunteer fire department or corporation.

(e) Members of the department of public safety reserve, organized pursuant to section 41-1715, are deemed to be employees. For the purposes of this chapter, the basis for computing wages for premium payments and compensation benefits for a member of the department of public safety reserve who is a peace officer shall be the salary received by officers of the department of public safety for their first month of regular duty as an officer. For members of the department of public safety reserve who are not peace officers, the basis for computing premiums and compensation benefits is four hundred dollars a month.

(f) Any person placed in level three or four of the Arizona works program, in on-the-job evaluation or in on‑the‑job training under the department of economic security's temporary assistance for needy families program or vocational rehabilitation program shall be deemed to be an employee of such department for the purpose of coverage under the state workers' compensation laws only. The basis for computing premium payments and compensation benefits shall be two hundred dollars per month. Any person receiving vocational rehabilitation services under the department of economic security's vocational rehabilitation program whose major evaluation or training activity is academic, whether as an enrolled attending student or by correspondence, or who is confined to a hospital or penal institution, shall not be deemed to be an employee of the department for any purpose. Any dividend which the department's vocational rehabilitation program may be entitled to receive from the state compensation fund because of a favorable loss experience for any policy period shall not revert to the state general fund but shall be applied to the department's current premium obligations for workers' compensation coverage for such program.

(g) Regular members of a volunteer sheriff's reserve, which may be established by resolution of the county board of supervisors, to assist the sheriff in the performance of his the sheriff's official duties. A roster of the current members shall monthly be certified to the clerk of the board of supervisors by the sheriff and shall not exceed the maximum number authorized by the board. Certified members of an authorized volunteer sheriff's reserve shall be deemed to be employees of the county for the purpose of coverage under the Arizona workers' compensation laws and occupational disease disability laws and shall be entitled to receive the benefits of such these laws for any compensable injuries or disabling conditions which arise out of and occur in the course of the performance of duties authorized and directed by the sheriff. Compensation benefits and premium payments shall be based upon the salary received by a regular full‑time deputy sheriff of the county involved for the first month of regular patrol duty as an officer for each certified member of a volunteer sheriff's reserve. This subdivision shall not be construed to provide compensation coverage for any member of a sheriff's posse who is not a certified member of an authorized volunteer sheriff's reserve except as a participant in a search and rescue mission or a search and rescue training mission.

(h) A working member of a partnership may be deemed to be an employee entitled to the benefits provided by this chapter upon written acceptance, by endorsement, at the discretion of the insurance carrier for the partnership of an application for coverage by the working partner. The basis for computing premium payments and compensation benefits for the working partner shall be an assumed average monthly wage of not less than six hundred dollars nor more than the maximum wage provided in section 23-1041 and is subject to the discretionary approval of the insurance carrier. Any compensation for permanent partial or permanent total disability payable to the partner shall be computed on the lesser of the assumed monthly wage agreed to by the insurance carrier on the acceptance of the application for coverage or the actual average monthly wage received by the partner at the time of injury.

(i) The sole proprietor of a business subject to the provisions of this chapter may be deemed to be an employee entitled to the benefits provided by this chapter on written acceptance, by endorsement, at the discretion of the insurance carrier of an application for coverage by the sole proprietor. The basis for computing premium payments and compensation benefits for the sole proprietor shall be an assumed average monthly wage of not less than six hundred dollars nor more than the maximum wage provided by section 23-1041 and is subject to the discretionary approval of the insurance carrier. Any compensation for permanent partial or permanent total disability payable to the sole proprietor shall be computed on the lesser of the assumed monthly wage agreed to by the insurance carrier on the acceptance of the application for coverage or the actual average monthly wage received by the sole proprietor at the time of injury.

(j) A member of the Arizona national guard, Arizona state guard or unorganized militia shall be deemed a state employee and entitled to coverage under the Arizona workers' compensation law at all times while such the member is receiving the payment of his the member's military salary from the state of Arizona under competent military orders or upon order of the governor. Compensation benefits shall be based upon the monthly military pay rate to which the member is entitled at the time of injury, but not less than a salary of four hundred dollars per month, nor more than the maximum provided by the workers' compensation law. No Arizona compensation benefits shall inure to a member compensable under federal law.

(k) Certified ambulance drivers and attendants who serve without pay or without full pay on a part-time basis are deemed to be employees and entitled to the benefits provided by this chapter and the basis for computing wages for premium payments and compensation benefits for such certified ambulance personnel shall be four hundred dollars per month.

(l) Volunteer workers of a licensed health care institution may be deemed to be employees and entitled to the benefits provided by this chapter upon written acceptance by the insurance carrier of an application by the health care institution for coverage of such volunteers. The basis for computing wages for premium payments and compensation benefits for such volunteers shall be four hundred dollars per month.

(m) Personnel who participate in a search or rescue operation or a search or rescue training operation that carries a mission identifier assigned by the division of emergency management as provided in section 35‑192.01 and who serve without compensation as volunteer state employees. The basis for computation of wages for premium purposes and compensation benefits is the total volunteer man-hours recorded by the division of emergency management in a given quarter multiplied by the amount determined by the appropriate risk management formula.

(n) Personnel who participate in emergency management training, exercises or drills that are duly enrolled or registered with the division of emergency management or any political subdivision as provided in section 26-314, subsection C and who serve without compensation as volunteer state employees. The basis for computation of wages for premium purposes and compensation benefits is the total volunteer man-hours recorded by the division of emergency management or political subdivision during a given training session, exercise or drill multiplied by the amount determined by the appropriate risk management formula.

(o) Regular members of the Arizona game and fish department reserve, organized pursuant to section 17-214. The basis for computing wages for premium payments and compensation benefits for a member of the reserve is the salary received by game rangers and wildlife managers of the Arizona game and fish department for their first month of regular duty.

6. "General order" means an order applied generally throughout the state to all persons under jurisdiction of the commission.

7. "Heart-related or perivascular injury, illness or death" means myocardial infarction, coronary thrombosis or any other similar sudden, violent or acute process involving the heart or perivascular system, or any death resulting therefrom, and any weakness, disease or other condition of the heart or perivascular system, or any death resulting therefrom.

8. "Insurance carrier" means the state compensation fund and every insurance carrier duly authorized by the director of insurance to write workers' compensation or occupational disease compensation insurance in the state of Arizona.

9. "Interested party" means the employer, the employee, or if the employee is deceased, the surviving spouse or dependents, the commission, the insurance carrier or their representative.

10. "Mental injury, illness or condition" means any mental, emotional, psychotic or neurotic injury, illness or condition.

11. "Order" means and includes any rule, direction, requirement, standard, determination or decision other than an award or a directive by the commission or an administrative law judge relative to any entitlement to compensation benefits, or to the amount thereof, and any procedural ruling relative to the processing or adjudicating of a compensation matter.

12. "Personal injury by accident arising out of and in the course of employment" means any of the following:

(a) Personal injury by accident arising out of and in the course of employment.

(b) An injury caused by the wilful act of a third person directed against an employee because of his the employee's employment, but does not include a disease unless resulting from the injury.

(c) An occupational disease which is due to causes and conditions characteristic of and peculiar to a particular trade, occupation, process or employment, and not the ordinary diseases to which the general public is exposed, and subject to the provisions of section 23-901.01.

13. "Special order" means an order other than a general order.

14. "State compensation fund" includes the state compensation fund, accident benefit fund and occupational disease compensation fund in existence on January 2, 1969 and shall thereafter include all funds under the jurisdiction of the board of directors of the state compensation fund which have been derived from the assessment of premiums, interest, penalties and investment earnings for the payment of all workers' compensation and occupational disease compensation benefits.

15. "Weakness, disease or other condition of the heart or perivascular system" means arteriosclerotic heart disease, cerebral vascular disease, peripheral vascular disease, cardiovascular disease, angina pectoris, congestive heart trouble, coronary insufficiency, ischemia and all other similar weaknesses, diseases and conditions, and also previous episodes or instances of myocardial infarction, coronary thrombosis or any similar sudden, violent or acute process involving the heart or perivascular system.

16. "Workers' compensation" means workmen's compensation as used in article XVIII, section 8, Constitution of Arizona.23-901

Sec. 2. Section 46-142, Arizona Revised Statutes, is amended to read:

46‑14246-142. Wheels to work program

A. The department shall contract with a private entity to establish the wheels to work program in two locations in Maricopa county, one location in Pima county and one location each in three other counties. The program may be expanded statewide one year after establishment of the locations designated in this subsection.

B. The private entity shall determine whether to accept the vehicle based on the needs of the program and any budgetary constraints. The private entity shall only accept driveable vehicles. The private entity shall not accept vehicles for parts or scrap. The private entity shall assume the title on acceptance of a donation.

C. After donation of the vehicle, the donor is not liable for any damage, repair, emissions compliance, vehicle insurance or determination of vehicle safety.

D. The private entity may accept donations of repairs to the vehicles for the first twelve months of the use of the vehicle.

E. Donated vehicles shall be available for a six month lease for twenty dollars a month to qualified recipients of temporary assistance for needy families, former recipients within the last two years or parents who have a household income at or below one hundred fifty per cent of the federal poverty level, who have a verifiable job for which the vehicle is essential transportation, who possess a valid Arizona driver license and who are insurable. The department shall give priority to current and former recipients of temporary assistance for needy families. The department shall certify to the private entity that the wheels to work applicant is a qualified recipient individual. After six months, the qualified recipient individual shall provide insurance for the vehicle and continue paying the twenty dollars a month for an additional six months. During this twelve month period, the private entity shall provide all necessary repairs to the vehicle and ensure emissions compliance, except that the qualified recipient individual is responsible for normal vehicle maintenance. The qualified recipient individual shall receive the title to the vehicle after completing the twelve month lease.

F. If the recipient individual stops employment, up to a thirty day period shall be granted for reemployment or the vehicle shall be returned in accordance with the agreement.

G. If the recipient individual is convicted of any felony, A class 1 misdemeanor or driving under the influence of alcohol or drugs in violation of title 28, chapter 4, article 3, the vehicle shall be returned in accordance with the agreement.46‑142

Sec. 3. Section 46-241.04, Arizona Revised Statutes, is amended to read:

46‑241.0446-241.04. Ineligibility for short-term crisis services

The department or its agent shall not provide short-term crisis services to or on behalf of an applicant who:

1. Has refused employment or training for employment in the thirty days before the application.

2. Is currently being sanctioned by the temporary assistance for needy families program.

3. 2. Is receiving services from the temporary assistance for needy families diversion program.

Sec. 4. Repeal

Section 46-292, Arizona Revised Statutes, as amended by Laws 1998, chapter 113, section 56, is repealed.

Sec. 5. Section 46-292, Arizona Revised Statutes, as amended by Laws 1998, chapter 118, section 2, is amended to read:

46‑29246-292. Eligibility for assistance

A. Cash assistance may be given under this title to any dependent child:

1. Who has established residence in Arizona at the time of application and is either:

(a) A citizen by birth or naturalization.

(b) A qualified alien who entered the United States on or before August 21, 1996.

(c) A qualified alien who entered the United States as a member of one of the exception groups under Public Law 104-193, section 412, in which case the person shall be determined eligible in accordance with Public Law 104‑193.

(d) For the purposes of subdivisions (b) and (c) of this paragraph, "qualified alien" means a person who is defined as a qualified alien under Public Law 104-193, section 431.

(e) Defined as a qualified alien by the attorney general of the United States under the authority of Public Law 104-208, section 501.

2. Whose parent or parents or person or persons acting in the parents' place, if employable, shall not refuse to accept available employment and if any employable child in the family does not refuse to accept available employment. The department shall assess the applicant's employability at the time of initial application for assistance to establish a self-sufficiency diversion option, if appropriate, before benefit issuance. The determination of employability and the conditions under which employment shall be required shall be determined by the state department, except that claimed unemployability because of physical or mental incapacity shall be determined by the state department in accordance with the provisions of this title.

3. Whose parent or parents or other relatives who are applying for or receiving assistance on behalf of the child have not, within one year prior to application, or while a recipient, transferred or assigned real or personal property with the intent to evade federal or state eligibility requirements. Transfer of property with retention of a life estate for the purpose of qualifying for assistance is prohibited. Where fair consideration for the property was received, no inquiry into motive is necessary. A person found ineligible under this section shall be ineligible for such time as the state department determines.

B. Qualified aliens entering the United States after August 21, 1996 are ineligible for benefits for a period of five years beginning on their date of entry, except for Cuban and Haitian entrants as defined in section 501(e)(2) of the refugee education assistance act of 1980 and exceptions provided under Public Law 104-193, personal responsibility and work opportunity reconciliation act of 1996 and Public Law 105-32, balanced budget act of 1997.

C. A parent or any other relative who applies for or receives cash assistance under this title on behalf of a child shall cooperate with the department by taking the following actions:

1. Providing information regarding the identity of the child's father and mother and other pertinent information including their names, social security numbers and current addresses or a sworn statement that attests to the lack of this information and that is accompanied by facts supporting the asserted lack of information.

2. Appearing at interviews, hearings and legal proceedings.

3. Submitting and having the child submit to genetic testing.

4. Signing authorizations for third parties to release information concerning the applicant or the child, or both.

5. In cases in which parentage has not been established, providing a sworn statement alleging paternity and setting forth facts establishing a reasonable possibility of the requisite sexual contact between the parties.

6. Supplying additional information the department requires.

D. The department shall sanction a recipient who fails, without good cause as prescribed in subsection E of this section, to cooperate with child support enforcement efforts according to the sanction provisions of section 46-300.

E. One or more of the following circumstances constitute good cause for failure to cooperate with child support enforcement efforts:

1. Cooperation may result in physical or emotional harm to the parent, child for whom support is sought or caretaker relative with whom the child is living.

2. Legal proceedings for adoption of the child for whom support is sought are pending before a court.

3. The participant has been working, for less than ninety days, with a public or licensed private social agency on the issue of whether to allow the child for whom support is sought to be adopted.

4. The child for whom support is sought was conceived as a result of sexual assault pursuant to section 13-1406 or incest.

F. A person claiming good cause has twenty days from the date the good cause claim is provided to the agency to supply evidence supporting the claim. When determining whether the parent or relative is cooperating with the agency as provided in subsection C of this section, the agency shall require:

1. If the good cause exception in subsection E, paragraph 1 of this section is claimed, law enforcement, court, medical, criminal, psychological, social service or governmental records or sworn statements from persons with personal knowledge of the circumstances that indicate that the alleged parent or obligor might inflict physical harm on the parent, child or caretaker relative.

2. If the good cause exception in subsection E, paragraph 2 of this section is claimed, court documents that indicate that legal proceedings for adoption are pending before a court of competent jurisdiction.

3. If the good cause exception in subsection E, paragraph 3 of this section is claimed, records from a public or licensed private social services agency showing that placing the child for whom support is sought is under consideration.

4. If the good cause exception in subsection E, paragraph 4 of this section is claimed, law enforcement, court, medical, criminal, psychological, social service or governmental records or sworn statements from persons with personal knowledge of the circumstances surrounding the conception of the child that indicate the child was conceived as a result of sexual assault pursuant to section 13-1406 or incest.

G. Notwithstanding subsection A of this section and except as provided in subsection H of this section, a dependent child or children who are born during one of the following time periods are not eligible for assistance under this title:

1. The period in which the parent or other relative is receiving assistance benefits.

2. The temporary period in which the parent or other relative is ineligible pursuant to a penalty imposed by the department for failure to comply with benefit eligibility requirements, after which the parent or other relative is eligible for a continuation of benefits.

3. Any period after November 1, 1995 that is less than sixty months between a voluntary withdrawal from program benefits or a period of ineligibility for program benefits which immediately followed a period during which program benefits were received and a subsequent reapplication and eligibility approval for benefits.

H. The following exceptions apply to the provisions of subsection G of this section:

1. The department shall allow an increase in cash assistance under the program for a dependent child or children born as a result of an act of sexual assault as prescribed in section 13-1406 or 13-1406.01 or incest. The department shall ensure that the proper law enforcement authorities are notified of allegations of sexual assault or incest made pursuant to this paragraph.

2. For those parents or other relatives who are currently authorized for cash assistance the department shall allow an increase in cash assistance under the program as a result of the birth of a child or children to the parent or other relative only if the birth occurred within ten months of the initial eligible month. The department may use only the additional child or children who are born from the pregnancies covered in this subsection in computing the additional benefit.

3. The department shall allow an increase in cash assistance for any dependent child born to a parent who has not received cash assistance under this title for at least twelve consecutive months if the child is born within the period beginning ten months after the twelve consecutive month period and ending ten months after the parent resumes receiving cash assistance.

I. The department shall calculate the sixty-month time period referenced in subsection G, paragraph 3 of this section in the following manner:

1. For persons who are receiving cash assistance on November 1, 1995, the sixty-month time period begins on November 1, 1995. A subsequent sixty‑month time period begins immediately after the previous period ends if the person is receiving cash assistance through two sixty-month periods. If the individual is not receiving cash assistance at the end of the previous sixty-month period, any subsequent sixty-month time period begins on the date when cash assistance became effective again, regardless of when the person received an actual payment.

2. For persons who begin receiving cash assistance after November 1, 1995, the sixty-month time period begins on the date cash assistance becomes effective, regardless of when the person received an actual payment. A subsequent sixty-month period begins as provided in paragraph 1 of this subsection.

J. In calculating a parent's or any other relative's benefit increase that arises from any general increase that has been approved for all program recipients, the department shall not consider a child or children born under the time periods listed in subsection G of this section.

K. For the parents or other relatives who have additional children for whom they receive no cash assistance payment under subsection G of this section, the department shall make any necessary program amendments or request any necessary federal waivers to allow the parents or other relatives to earn income in an amount equal to the disallowed cash assistance payment without affecting their eligibility for assistance.

L. The director shall adopt rules:

1. To implement this section including rules to define the investigatory steps which must be taken to confirm that an act of sexual assault or incest led to the birth of a dependent child or children.

2. That require the department to inform both verbally and in writing the parents and other relatives who are receiving assistance under this article of the specific family planning services that are available to them while they are enrolled as eligible persons in the Arizona health care cost containment system.

M. Nothing in this section shall be construed to prevent an otherwise eligible child who is not included in the family's calculation of benefits under this article from being eligible for coverage under title 36, chapter 29 or for any services that are directly linked to eligibility for the temporary assistance for needy families program.

N. Assistance shall not be denied or terminated under this article because the principal wage earner works one hundred or more hours per month.

O. The department shall include all income from every source available to the person requesting cash assistance, except income that is required to be disregarded by this subsection and as determined by the department in rules. For the amount of income that is received from employment, each month every employed person is entitled to receive an earned income disregard of ninety dollars plus an additional thirty per cent of the remaining earned income. A household that includes an employed person is entitled to an earned income disregard equal to the actual amount billed to the household for the care of an adult or child dependent household member, up to two hundred dollars a month for a child under two years of age and up to one hundred seventy-five dollars a month for each other dependent. This dependent care disregard is allowed only if the expense is necessary to allow the household member to become or remain employed or to attend postsecondary training or education that is preparatory to employment.

P. Any parent or other relative who applies for or receives cash assistance under this article on behalf of a dependent child who is between six and sixteen years of age shall ensure that the child is enrolled in and attending school. An initial applicant is ineligible for benefits until the applicant's dependent children are verified to be enrolled in and attending an educational program. The department of education shall assist the department of economic security in obtaining verification of school enrollment and attendance. The director of the department of economic security may adopt rules for granting good cause exceptions from the provisions of this subsection. The department of economic security shall sanction a recipient who fails, without good cause, to ensure school enrollment and attendance according to the provisions of section 46-300.

Q. Any parent or other relative who applies for or receives cash assistance under this section on behalf of a dependent child shall ensure that the child is immunized in accordance with the schedule of immunizations promulgated pursuant to section 36-672. The director of the department of economic security may adopt rules for granting good cause exceptions from the provisions of this subsection. The department of economic security shall sanction a recipient, in accordance with the provisions of section 46-300, who fails, without good cause, to obtain the required immunizations for a dependent child unless the recipient submits to the department of economic security the documentation described in section 15-873.46‑241.04

Sec. 6. Section 46-294, Arizona Revised Statutes, is amended to read:

46‑29446-294. Duration of assistance

A. Any person who is eighteen years of age or older in an assistance unit becomes ineligible for inclusion in the calculation of the cash assistance grant after the person has received cash assistance awarded under this article for twenty-four months during any consecutive sixty month time period except:

1. A disabled or incapacitated adult.

2. A full-time caretaker of a disabled dependent person.

3. A recipient who is sixty-two years of age or older.

4. A participant in any department administered demonstration project that subsidizes the wages of project participants by using monies from the temporary assistance for needy families and food stamp programs.

5. Victims of domestic violence until their situation is resolved to the degree that they may seek self-sufficiency.

B. The twenty-four month and sixty month limits do not begin until a person has reached eighteen years of age.

C. The director may grant two four-month extensions of the twenty-four month time limit to allow a person to complete a full-time academic, vocational, job training or work study program that the department determines is related to enabling the person to become self-sufficient. To qualify for an extension, the person shall:

1. Have begun the program before losing eligibility for inclusion in the cash assistance grant.

2. Demonstrate successful progress toward completion of the program.

D. The director shall adopt rules that provide for the granting of extensions of the twenty-four month time limit if a recipient applies for an extension and demonstrates that the recipient is unable to earn income equal to the amount of the benefit that the recipient became ineligible to receive. The application of the time limit to an adult recipient is presumed to be fair and equitable. The recipient has the burden of proving that the application of the time limit is unfair or inequitable because the recipient has made a good faith effort, without success, to earn from legal employment opportunities an amount equal to or greater than the amount of the cash assistance for which the recipient will no longer be eligible. The department shall work cooperatively with local job services offices to provide the recipient with information on employment opportunities. An extension shall not be granted pursuant to this subsection if any of the following apply:

1. The recipient cannot demonstrate a good faith effort to seek employment.

2. The recipient refuses, without good cause, to accept a bona fide offer of legal employment, including part-time traditional or nontraditional employment that would provide earnings equal to or greater than the portion of the benefit for which the recipient is no longer eligible or for which the recipient would no longer be eligible if an extension had not been granted pursuant to this subsection.

3. The recipient cannot demonstrate or refuses to produce the good cause reason or reasons for not accepting an offer of legal employment that the department is aware has been made, including part-time traditional or nontraditional employment that would provide earnings equal to or greater than the portion of the benefit for which the recipient is no longer eligible or for which the recipient would no longer be eligible if an extension had not been granted pursuant to this subsection.

4. The recipient cannot demonstrate or refuses to produce the good cause reason or reasons for voluntarily quitting a job held during the current sixty month period as described in subsection E F.

5. The recipient has been discharged for reasons of misconduct from a job held during the current sixty month period as described in subsection E F.

6. The recipient cannot demonstrate or refuses to produce the good cause reason or reasons for voluntarily acting to reduce employment earnings from a job held during the current sixty month period as described in subsection E F.

7. The recipient cannot demonstrate that the recipient has cooperated with the department during the extension application process.

E. The department shall provide a two year eligibility period for TRANSPORTATION and postemployment education and training to individuals who are eligible for services or benefits under temporary assistance for needy families.

E. F. The department shall calculate the sixty month time period in the following manner:

1. For persons who are receiving cash assistance benefits on November 1, 1995, the sixty month time period begins on November 1, 1995. A subsequent sixty month time period begins immediately after the previous period ends if the person is receiving benefits through two sixty-month periods. If the individual is not receiving benefits at the end of the previous sixty month period, any subsequent sixty month time period begins on the date when assistance became effective again, regardless of when the person received an actual payment.

2. For persons who begin receiving benefits after November 1, 1995, the sixty month time period begins on the date assistance becomes effective, regardless of when the person received an actual payment. A subsequent sixty month period begins as provided in paragraph 1 of this subsection. The department shall fund assistance to persons who receive less than one hundred dollars a month from maintenance of effort dollars. Payments of less than one hundred dollars are not included in the sixty month period if assistance is paid from maintenance of effort dollars.

F. G. The department shall calculate the twenty-four month benefit limitation in the following manner:

1. For persons who are receiving assistance benefits on November 1, 1995, the department shall count the first monthly benefit payment the person received that covers a full month after November 1, 1995 as the first of the twenty-four months.

2. For persons who begin receiving benefits after November 1, 1995, the department shall count the first full month the person is covered, regardless of when the person received a payment as the first of the twenty‑four months. The department shall ensure that no retroactive benefit payment is counted toward the twenty-four month total if it covered a period of time before November 1, 1995.

G. H. The department shall continue to perform cash assistance eligibility determinations for persons who have reached their twenty-four month maximum. Persons who have reached the maximum but are otherwise eligible for cash assistance under this article continue to be eligible to receive:

1. Job services that are provided pursuant to section 46-299.

2. Covered medical services that are provided pursuant to title 36, chapter 29.

3. Any other services that are directly linked to eligibility for the temporary assistance for needy families program.

H. I. The department shall make any necessary program amendments or request any necessary federal waivers to allow assistance units who experience a reduction in their total assistance grant due to the provisions of this section to earn income equal to the amount that they became ineligible to receive pursuant to subsection A of this section without affecting their eligibility for cash assistance.

I. J. Nothing in this section shall be construed to alter the method used by the department to determine eligibility for transitional benefits provided pursuant to the family support act of 1988 (P.L. 100-485) or provided pursuant to any demonstration project that the department or any other state agency administers under a federal waiver.

Sec. 7. Section 46-299, Arizona Revised Statutes, is amended to read:

46‑29946-299. Jobs program; definition

A. As a condition of eligibility or continuing eligibility for cash assistance, all recipients shall engage in work activities that are established in this article and determined appropriate by the department. The following individuals are temporarily deferred from the requirement to engage in work activities:

1. A parent in a single parent family or a nonparent relative personally caring for a child who is under the age of twelve months for a period of not more than twelve months in the recipient's lifetime. This deferral does not apply to teenaged custodial parents who do not have a high school diploma or its equivalent.

2. An unmarried custodial parent who is under eighteen years of age and who is personally caring for a child who is under the age of twelve weeks.

3. A disabled individual who has provided verification of a condition that meets disability or temporary disability criteria established by the department.

4. An individual who provides verification acceptable to the department that the individual is personally caring for the individual's dependent who is disabled and unable to care for himself.

5. Victims of domestic violence whose participation in work activities causes an immediate threat to their own safety or the safety of their children.

6. Dependent children as defined in this article.

B. to the extent that the state meets the federally required work participation rates, unmarried custodial parents may attend a postsecondary educational program full time in lieu of standard work participation requirements. the department may require additional work activities.

B. C. Teenaged heads of household who are under twenty years of age and who have not attained their high school diploma or its equivalent are required to either:

1. Maintain satisfactory attendance at a secondary school or the equivalent.

2. Satisfactorily participate in education directly related to employment at the level of participation established by the department.

C. D. The department may establish the minimum work participation level required to meet the work requirements established in Public Law 104‑193, section 407 (1996).

D. E. All cash assistance recipients, excluding dependent children, shall complete a personal responsibility declaration.

E. F. All cash assistance recipients, excluding dependent children complying with compulsory school requirements as prescribed in section 15‑803, shall also participate in the development of an employment plan and shall receive services in support of and as specified in that plan.

F. G. Participants who fail or refuse to engage in work activities as required by the department are subject to the progressive sanctions prescribed in section 46-300.

G. H. The department shall adopt rules that establish good cause reasons that excuse the participant from engaging in work activities.

H. I. This state shall provide workers' compensation coverage for cash assistance recipients engaged in unpaid work experience or community service programs as established in this article. The cost shall be paid from the temporary assistance for needy families monies.

I. J. The department may operate on a statewide basis a wage subsidy program. Employers may hire recipients of cash assistance and food stamps for subsidized job slots that are full time and that offer a reasonable possibility of unsubsidized employment after the subsidy period. This program shall provide that:

1. Employers who operate an approved wage subsidy program shall receive a subsidy for up to six months. The department may grant an extension of three months to employers operating in areas identified as having a higher unemployment rate than the state average, as defined by the department, if the extension increases the likelihood of ongoing unsubsidized employment for the subsidized employee.

2. The department shall ensure that subsidized jobs made available to subsidized employees:

(a) Do not require work in excess of forty hours per week.

(b) Pay a wage that is substantially like the wage paid for similar jobs with the employer with appropriate adjustments for experience and training but not less than the federal minimum hourly wage.

(d) Do not displace currently employed workers or fill positions that are vacant due to a layoff.

3. Wage subsidy employers shall:

(a) Maintain health, safety and working conditions at or above levels generally acceptable in the industry and not less than those of comparable jobs offered by the employer.

(b) Provide on-the-job training necessary for subsidized employees to perform their duties.

(c) Sign an agreement for each placement outlining the specific job offered to a subsidized employee and agree to abide by all of the requirements of the program. All agreements shall contain a provision that sets forth the employer's responsibility to repay subsidies paid under this article if the employer violates program requirements.

(d) Provide workers' compensation coverage for each subsidized employee they employ.

(e) Provide the subsidized employee with benefits equal to those for new employees or as required by state and federal law, whichever is greater. For purposes of this paragraph, "benefits" includes health care coverage, paid sick leave and holiday and vacation pay.

4. Eligible subsidized employees are those who:

(a) Do not have sufficient work experience to obtain unsubsidized employment.

(b) Have completed an employment preparation program.

5. The department shall:

(a) Disregard income earned by the subsidized employee in the subsidized job when determining the household's eligibility for cash assistance and food stamps.

(b) Suspend regular payments of cash assistance and food stamps to the household at the end of the calendar month in which an employer makes the first subsidized wage payment to a subsidized employee who is otherwise eligible to receive the cash assistance and food stamps.

(c) Reimburse employers each month, from cash assistance and food stamps, the lesser of a fixed subsidy amount determined by the department or the gross wages paid to the subsidized employee.

(d) Determine eligibility for supplemental payments as follows:

(i) If the net monthly full-time wage paid to a subsidized employee is less than the combined monthly total of the cash assistance and food stamps the participant is eligible to receive, the department shall authorize issuance of a supplemental cash payment to compensate for the deficit. To determine if a deficit exists, the department shall adopt, through rules, an equivalency scale that is adjustable to household size and other factors. For purposes of this section, "net monthly full-time wage" refers to a participant's wages after required payroll deductions.

(ii) The department shall monthly determine and pay in advance supplemental payments to eligible subsidized employees. In calculating the payment, the department shall assume that the participant will work forty hours per week during the month unless an employer provides information that the number of hours to be worked by a subsidized employee will be reduced.

J. K. For purposes of this section, "subsidized employee" means an individual engaged in this subsidized employment activity.

Sec. 8. Section 46-300, Arizona Revised Statutes, is amended to read:

46‑30046-300. Sanctions

A. The department shall impose a series of graduated sanctions as described in subsection C of this section for any noncompliance with:

1. The child support enforcement efforts required by section 46‑292, subsection C unless good cause is established as provided in section 46-292, subsections E and F.

2. The work activities requirements described in section 46-299, unless good cause is established as provided in section 46-299, subsection G H and department rules.

3. The school enrollment and attendance provisions of section 46‑292, subsection P.

4. The immunization requirements of section 46-292, subsection Q.

B. Noncompliance with one or more of the requirements listed in subsection A of this section during any calendar month is deemed to be a month of noncompliance and shall result in the sanctions prescribed in subsection C of this section. The department shall impose these graduated sanctions even if the instances of noncompliance do not occur in consecutive months.

C. The department shall impose the following sanctions:

1. For the first instance of noncompliance, the department shall reduce the household's cash assistance grant by twenty-five per cent for one month.

2. For a second instance of noncompliance that occurs in a month other than the month in which the first noncompliance occurred, the department shall reduce the household's cash assistance grant by fifty per cent for one month.

3. For a third instance of noncompliance that occurs in a month other than the month in which the second noncompliance occurred and any instance of noncompliance thereafter, the department shall terminate the household's cash assistance grant for at least one month or until the household complies.

Sec. 9. Title 46, chapter 2, Arizona Revised Statutes, is amended by adding section 46-300.04, to read:

46-300.0446-300.04. Perinatal substance abuse treatment and services

A. The department OF ECONOMIC SECURITY shall provide funding to the department of health services for perinatal substance abuse treatment and services for PERSONS whose family income does not exceed two hundred per cent of the federal poverty guidelines as published by the United States DEPARTMENT of health and human services with monies appropriated for temporary assistance FoR needy families.

B. Monies provided pursuant to this section:

1. shall be used to supplement and not to supplant other monies available for funding perinatal substance abuse treatment and services. These monies shall not be expended for any treatment or services if monies from another source are available to pay for the treatment or services.

2. SHALL NOT BE USED FOR MEDICAL TREATMENT in compliance with the federal law and regulations for the temporary assistance for needy families block grant.46‑294

Sec. 10. Section 46-355, Arizona Revised Statutes, is amended to read:

46‑35546-355. Lifetime benefit limits

Assistance offered under this article shall comply with the sixty month lifetime limitation of the federal temporary assistance for needy families act (P.L. 104-193). The department shall fund assistance to persons who receive less than one hundred dollars a month from maintenance of effort dollars. A sixty month period does not begin if assistance is paid from maintenance of effort dollars.

Sec. 11. Title 46, chapter 2, Arizona Revised Statutes, is amended by adding article 10, to read:

ARTICLE 10. MARRIAGE AND COMMUNICATION SKILLS

46-361. Marriage and communication skills commission; membership; duties; staff; compensation; definition

A. The marriage and communication skills commission is established consisting of the following members who serve at the pleasure of the appointing person:

1. Two members of the senate who are from different political parties and who are appointed by the president of the senate. These members serve as advisory members. The president of the senate shall select one member to cochair the commission.

2. Two members of the house of representatives who are from different political parties and who are appointed by the speaker of the house of representatives. These members serve as advisory members. The speaker of the house of representatives shall select one member to cochair the commission.

3. The governor or the governor's designee.

4. The director of the department of economic security or the director's designee.

5. one member of the news media who is appointed by the speaker of the house of representatives.

6. an expert in the field of marriage and family education and counseling who is licensed to practice medicine or psychology in this state, who SPECIALIZES in marriage counseling and who is appointed by the president of the senate.

7. AN ATTORNEY WHO IS LICENSED TO PRACTICE LAW IN THIS STATE, WHO SPECIALIZES IN FAMILY LAW RELATED EDUCATION AND WHO IS APPOINTED BY THE GOVERNOR.

b. The marriage and COMMUNICATION skills commission shall:

1. review plans submitted TO THE DEPARTMENT by the applicant community-based organizations for participation in the marriage and COMMUNICATION SKILLS program and shall recommend community-based organizations that are eligible to receive funding pursuant to section 46‑362.

2. review renewal applications from participating community-based organizations AND MAKE RECOMMENDATIONS TO THE DEPARTMENT.

3. develop and distribute free of charge to marriage license applicants a handbook that includes information about the importance of communication, shared parental responsibility for children, child support responsibilities, alimony, domestic violence, child abuse and neglect, court process for divorce, community resources for parents who are divorced or separated, community resources for children of parents who are divorced or separated and marriage education courses that are available in each county.

4. evaluate the program and beginning on november 1, 2001 report annually by november to the governor, the president of the senate, the speaker of the house of representatives and the joint legislative audit committee. the commission shall provide a copy of the report to the secretary of state and the department of library, archives and public records.

5. recommend qualifying criteria for married or cohabitating parents who apply to the department of economic security for a voucher to attend a marriage skills training course.

c. the department of economic security shall provide Staff and support services to the commission.

d. For purposes of this section, "advisory member" means a member who advises the commission but who is not eligible to vote and is not a member for the purposes of determining a quorum.

46-362. Community based marriage and communication skills program; fund; program termination

A. A community-based organization may apply to participate or may complete an application to continue in the marriage and communication program as provided in this section for any fiscal year by submitting by April 15 a program proposal or an application to continue the program to the DEPARTMENT. THE DEPARTMENT SHALL APPROVE APPLICANTS AFTER REVIEWING RECOMMENDATIONS MADE BY THE marriage and communication skills commission established by section 46-361. New applicants are restricted to unencumbered monies that have been appropriated in previous fiscal years or monies appropriated to expand the program.

b. a program proposal shall contain:

1. A plan for implementing a marriage and communication skills program or a plan that demonstrates the existence of a marriage and communication skills program.

2. A plan to adopt a marriage and communication skills curriculum that emphasizes relationship skills, including communication and negotiation skills that are necessary to resolve common relationship problems.

3. A description of any model curricula that the community-based organization plans to use to provide marriage and communication skills. ANY MODEL CURRICULA USED BY A COMMUNITY-BASED ORGANIZATION PURSUANT TO THIS SECTION SHALL NOT DISCUSS OR ENCOURAGE UNLAWFUL BEHAVIOR.

4. A plan to INCORPORATE discussions of family law and domestic violence issues into the curriculum and marriage license options, including covenant marriage options.

C. a community-based marriage and communication skills program fund is established consisting of legislative appropriations. the department of economic security shall administer the fund and not more than five per cent shall be used for administrative costs. The department of economic security shall distribute monies to the community-based organizations whose plans have been recommended by the marriage and parenting skills commission. monies in the fund are exempt from the provisions of section 35‑190 relating to the lapsing of appropriations and are continuously appropriated.

D. community-based organizations shall spend Monies received under the program to implement approved plans.

E. the program established by this article ends on July 1, 2005 pursuant to section 41-3102.

Sec. 12. Interagency services agreement; request for proposals; contracts

A. The department of health services, the department of economic security, the Arizona health care cost containment system administration and the governor’s office of community and family programs, as signers of the interagency services agreement established pursuant to Laws 1998, chapter 176, section 2, shall determine whether an additional request for proposal or an amendment to an existing program will be required to spend the monies appropriated by this act.

B. By October 1, 2000, the director of the department of health services shall sign the contracts or amendments to contracts to expand the interagency collaboration model pursuant to this act.

Sec. 13. Laws 1998, chapter 176, section 3 is amended to read:

Sec. 3. Outcome evaluation; report

A. The auditor general shall perform an evaluation of the impact and effectiveness of the integrated services models prescribed in LAWS 1998, CHAPTER 176, section 1 ~~of this act~~ and shall provide copies of an outcome evaluation report to the governor, speaker of the house of representatives, president of the senate, secretary of state and director of the department of library, archives and public records by November 1, 2001.

B. The outcome evaluation report shall include the following information:

1. The number, type and location of integrated service models funded under this act.

2. The characteristics of the population included in each of the integrated service models.

3. The services provided by the collaborative community partnerships and the models of collaboration used for each integrated service model.

4. General demographic and treatment characteristics of the population served, including information from the intake and assessment screening.

5. General information on the short‑term and long‑term outcomes of the services provided, including:

(a) Successful strategies for reducing or eliminating substance abusing behaviors.

(b) The status of the woman's and the family's well‑being, including general health, employment and housing status.

(d) The average length of treatment and average costs compared with estimated costs of nontreatment.

(e) The number of months the substance abusing woman achieves a drug and alcohol free status.

(f) The relapse rates for women who return to substance abusing behaviors after achieving drug and alcohol free status.

C. The auditor general shall modify this evaluation design to include a report on the expanded services and additional populations served.

Sec. 14. Laws 1999, chapter 328, section 1 is amended to read:

Section 1. Appropriation; assistance services programs; measures; report; exemption

A. The sum of $2,650,000 is appropriated from the temporary assistance for needy families block grant in each of fiscal years 1999-2000 and 2000‑2001 for the following purposes:

1. $250,000 to the department of health services in each of fiscal years 1999-2000 and 2000-2001 to establish a pilot program modeled after the Olds prenatal and infancy nurse home visitation program for single women under the age of thirty who are eligible for or who are receiving temporary assistance for needy families or Arizona works assistance. The program shall provide participants with nursing and other home visitation and transportation services relating to pregnancy, childbirth, child injuries and child neglect. The program shall also provide health related behavior services and assistance after childbirth including proper child care, education completion, work force entrance and help for women making childbearing and other decisions about their future.

2. $250,000 to the department of economic security in each of fiscal years 1999-2000 and 2000-2001 for the department to provide vouchers to domestic violence victims for postshelter training for victims who are eligible for or who are receiving temporary assistance for needy families or Arizona works assistance.

3. $500,000 to the department of economic security in each of fiscal years year 1999-2000 and $500,000 to the northern Arizona university Arizona K-12 center in fiscal year 2000-2001 to provide character training education through contracted providers for persons who are less than nineteen years of age and who are eligible for or who are receiving temporary assistance for needy families or Arizona works assistance. At least two different character education programs shall be implemented using the appropriated monies. The character education program shall offer an age-specific, stand-alone character education curriculum with the following elements:

(a) Clearly applicable definitions for character qualities such as that include at least five of the attributes of truthfulness, responsibility, compassion, tolerance, diligence, and sincerity, trustworthiness, respect, attentiveness, discernment, orderliness, forgiveness, caring, citizenship and virtue.

(b) Activities that provide a forum for practical application and an environment in which character-related behavior is identified, recognized and reinforced such as literature or visual media presentations or discussion of character values as they relate to a specific story.

4. $500,000 to the federal child care and development fund, administered by the department of economic security in each of fiscal years 1999-2000 and 2000-2001 for enhanced reimbursement to child care providers who are nationally accredited to encourage accreditation.

5. $250,000 to the department of economic security in each of fiscal years 1999-2000 and 2000-2001 for parenting skills classes for parents who are eligible for or who are receiving temporary assistance for needy families or Arizona works assistance.

6. $400,000 in each of fiscal years 1999-2000 and 2000-2001 to the department of economic security to establish a homeless youth intervention program by January 1, 2000, in two locations in this state through collaborative partnerships with community social agencies, family support programs and other community organizations, which may include faith-based organizations. These partnerships shall provide services to homeless youth who are referred based on a screening and assessment by the department and are not currently served by the state child protective services or juvenile justice systems. The focus of the program shall be to provide twenty-four hour crisis services, family reunification, job training and employment assistance, assistance in obtaining shelter, transitional and independent living programs, a character education curriculum that is substantially similar to the curriculum provided for in paragraph 3 of this subsection, and any additional services that the department determines are necessary to meet the needs for youth to achieve self-sufficiency.

7. In addition to any other appropriation provided by law, $500,000 to the department of economic security in each of fiscal years 1999-2000 and 2000-2001 for short-term crisis services.

B. For the purposes of the appropriations made in subsection A, paragraphs 2, 3, 5 and 6 of this section, the department of economic security shall identify clinical outcome measures based on best practice research and shall prescribe appropriate clinical outcome measures within contracts for purchased services.

C. For the purposes of the appropriations made in subsection A, paragraph 3 of this section, the northern Arizona university Arizona K-12 center shall develop evaluation protocols to determine best practices and measure the effectiveness of programs funded by these appropriations and shall submit an interim report to the house of representatives and senate education committees on or before September 1, 2001 and January 1, 2002.

C. D. For the purposes of the appropriations made in subsection A, paragraphs 2, 3 and 5 of this section, the department shall submit interim reports to the house of representatives human services committee and the senate family services committee on or before January 1, 2000 and July 1, 2000.

D. E. For the purposes of the appropriation made in subsection A, paragraph 6 of this section, the department shall include in its annual report, pursuant to section 41-1954, subsection A, paragraph 19, Arizona Revised Statutes, the status of Arizona homeless youth. The report shall include estimates of the number of homeless youth, demographics of this population, available programs and services for homeless youth, estimates for the number of youth currently being served by existing programs for homeless youth and an estimate of the number of youth who sought assistance at a shelter program but could not be served. After a thorough examination of the department's methodology and structure of the department's annual report, the auditor general shall perform an evaluation of the impact and effectiveness of the program established in subsection A, paragraph 6 and shall prepare an outcome evaluation report by November 15, 2001. The report shall include the extent to which the goals and objectives of the program were achieved, the number of youth that receives services, demographic information on this population, information on providers, and the average cost of services provided.

E. F. The appropriation made in subsection A of this section is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations.

Sec. 15. Welfare reform joint committee

In addition to the duties identified in Laws 1997, chapter 300, section 66, the welfare reform joint committee and task force shall make specific recommendations to the legislature by December 15, 2000 regarding the establishment of a fund administered by the department of economic security to provide greater coordination in state programs using funds from the temporary assistance for needy families block grant.

Sec. 16. Appropriation; bonuses; employees; automation; exemption

A. The sum of $2,707,663 is appropriated to the department of economic security from the 1999 temporary assistance for needy families high performance bonus awarded in fiscal year 2000-2001. The department of economic security shall use the appropriation for employee performance incentive bonuses and for upgrade and replacement of automation network infrastructure and equipment.

B. The appropriation made in subsection A of this section is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations.

Sec. 17. Appropriation; department of economic security

A. The sum of $2,909,300 is appropriated in fiscal year 2000-2001 from the temporary assistance for needy families block grant to the department of economic security for the following purposes:

1. $75,000 to provide vouchers to married or cohabitating parents whose income is less than one hundred fifty per cent of the federal poverty guidelines to attend marriage skills training courses.

2. $500,000 to supplement monies used for teen pregnancy prevention in order to promote an advertising campaign.

3. $200,000 for perinatal substance abuse treatment as prescribed by section 46-300.04, Arizona Revised Statutes, as added by this act.

4. $1,000,000 for the community-based marriage and communication skills program fund established by section 46-362, Arizona Revised Statutes, as added by this act.

5. $200,000 for food stamp outreach and education. The department of economic security shall employ current or former recipients of temporary assistance for needy families to conduct the food stamp outreach and education.

6. $859,300 for providing a monthly subsidy to clients in the permanent guardianship program pursuant to section 8-814, Arizona Revised Statutes.

7. $75,000 for the development, production and printing of the marriage handbook by the marriage and communication skills commission pursuant to section 46-361, Arizona Revised Statutes, as added by this act.

B. The appropriation made in subsection A of this section is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations.