SB1161 - 522R

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

Section 1. Section 42-17401, Arizona Revised Statutes, is amended to read:

START_STATUTE42-17401. Elderly assistance fund; primary school district tax reduction; definition

A. An elderly assistance fund shall be established by the board of supervisors in a county with a population of more than two million persons to be administered by the county treasurer. The fund shall be used to reduce the primary school district taxes pursuant to subsection B C of this section.

B. tHE BOARD OF SUPERVISORS SHALL SPEND ANY UNSPENT MONIES THAT REMAIN IN THE elderly assistance FUND FROM AND AFTER DECEMBER 31, 2015 SOLELY ON THE ELDERLY ASSISTANCE PROGRAM. aNY SUBSEQUENT APPROPRIATIONS MADE TO THE elderly assistance FUND SHALL ALSO BE SPENT SOLELY ON THE ELDERLY ASSISTANCE PROGRAM.

B. C. On June 30 of each year, the county treasurer shall determine the total amount of monies in the elderly assistance fund and the total number of qualified individuals who live in the county. The county treasurer shall use the monies in the fund to proportionately reduce the primary school district taxes that are levied against the property of all qualified individuals in the county for the following tax year.

C. D. The county treasurer shall invest monies in the fund. Interest earned on fund monies shall be deposited in the taxpayer's information fund established by section 11-495.

D. E. For the purposes of this section, "qualified individual" means an individual who lives in an organized school district and who is approved for the property valuation protection option pursuant to article IX, section 18, subsection (7), Constitution of Arizona. END_STATUTE

Sec. 2. Title 46, chapter 2, Arizona Revised Statutes, is amended by adding article 4, to read:

Article 4. Supplemental Nutrition Assistance Program

START_STATUTE46-261. Waiver limitations

A. Except as provided in subsection B of this section, the department may not apply for, accept or renew any waiver of the requirements established pursuant to 7 united states code section 2015(o). The department shall administer the supplemental nutrition assistance program within the following limitations:

1. Categorical eligibility pursuant to 7 United States Code section 2014(a) and any regulations adopted under that section may not be granted for any noncash, in‑kind or other benefit unless expressly required by federal law.

2. The gross income standards of the supplemental nutrition assistance program may not exceed the standards specified in 7 United States Code section 2014(c) unless expressly required by federal law.

3. The financial resource limit standards of the supplemental nutrition assistance program may not exceed the standards specified in 7 United States Code section 2014(g)(1) unless expressly required by federal law.

4. Categorical eligibility exempting households from the gross income standards requirements or the resource limits specified in this section may not be granted for any noncash, in‑kind or other benefit unless expressly required by federal law.

B. The department may apply for, accept or renew any waiver of the requirements established pursuant to 7 United States code section 2015(o) if the waiver request is reviewed and approved by the joint legislative budget committee and is signed by the governor.END_STATUTE

START_STATUTE46-262. Noncompliance with program requirements; disqualification periods

The department shall set disqualification periods for all instances of noncompliance with any supplemental nutrition assistance program requirement, unless expressly prohibited by federal law, including:

1. A three‑month, full‑household disqualification period for the first instance of noncompliance, unless expressly prohibited by federal law.

2. A six‑month, full‑household disqualification period for the second instance of noncompliance, unless expressly prohibited by federal law.

3. A permanent disqualification period for the third instance of noncompliance, unless expressly prohibited by federal law.END_STATUTE

START_STATUTE46-263. Child support enforcement; recipient's failure to comply; termination of benefits

The department shall terminate supplemental nutrition assistance program benefits for any recipient who fails to comply with The child support enforcement efforts established by the department or who is delinquent on any court-ordered child support payments, including arrears, unless expressly prohibited by federal law. The period of disqualification for a supplemental nutrition assistance program recipient who is terminated under this section ends once the department determines that the person is cooperating with child support services and is no longer delinquent on any court-ordered child support payments, including arrears. END_STATUTE

START_STATUTE46-264. Spending report; recipient de-identification

A. The department shall post on the department's website and make available on an annual basis to the joint legislative budget committee, the speaker of the house of representatives, the minority leader in the house of representatives, the president of the senate and the minority leader in the senate a spending report of the supplemental nutrition assistance program. The spending report shall include the dollar amount and number of transactions of supplemental nutrition assistance program benefits that are accessed or spent in this state.

B. The spending report shall be de‑identified to prevent the identification of individual recipients.END_STATUTE

Sec. 3. Section 46-297, Arizona Revised Statutes, is amended to read:

START_STATUTE46-297. Electronic benefit transfers; prohibitions; penalties; definitions

A. A head of household who receives cash assistance pursuant to this ~~section~~ article, or on behalf of another person, and any person authorized by the head of household shall not conduct an electronic benefit transfer card transaction at any of the following:

1. A liquor store ~~as defined in this section~~.

2. A commercial horse racing or dog racing facility as defined in section 5‑101.

3. A casino, gambling casino or gaming establishment or a gaming facility located on Indian lands pursuant to section 5‑601.02.

4. An adult oriented adult-oriented entertainment establishment.

5. A jewelry store.

6. A massage parlor.

7. A body-piercing parlor.

8. A spa and nail salon.

9. A tattoo parlor.

10. A lingerie shop.

11. A tobacco paraphernalia or vapor cigarette store.

12. A psychic or fortune telling business.

13. A bail bond office.

14. A movie theater.

15. A cruise ship.

16. A theme park.

B. In addition to the restrictions prescribed in subsection A of this section, a head of household who receives cash assistance pursuant to this article, or on behalf of another person, and any person authorized by the head of household shall not use an electronic benefit transfer card for any of the following:

1. cigarettes or any other tobacco products.

2. liquor.

3. Bail.

4. Tattoos.

5. lottery tickets.

6. Travel services provided by a travel agent.

7. sexually oriented adult materials.

8. tickets for a concert, sporting event or other entertainment event.

B. C. It is unlawful for an adult oriented adult-oriented entertainment establishment to operate on the licensed or permitted premises an automatic teller machine or a point‑of‑sale terminal that accepts electronic benefit transfer cards issued under this title or that processes electronic benefit transfer card transactions. A violation of this subsection is a permit or license violation. A municipality that licenses or regulates adult oriented adult-oriented entertainment establishments shall do all of the following:

1. Ensure that on or before February 1, 2014 all adult oriented adult‑oriented entertainment establishments in the municipality's jurisdiction disable the ability of automatic teller machines and point‑of‑sale terminals operated on the business's premises to accept the electronic benefit transfer card or process an electronic benefit transfer card transaction.

2. Enforce the continued prohibition on the use of the electronic benefit transfer card.

3. Enact ordinances necessary to ensure compliance with this section.

C. D. The department shall notify electronic benefit transfer card recipients of the restrictions prescribed in ~~subsection~~ subsections A and B of this section. A recipient is subject to the following for Any violation of subsection A or B of this section:

1. For an initial violation, a written warning.

2. For a second violation, A three‑month, full‑household disqualification period, unless expressly prohibited by federal law.

3. for a third violation, a permanent disqualification period, unless expressly prohibited by federal law.

D. E. An adult oriented adult-oriented entertainment establishment that violates this section is may be subject to licensing or permit action.

E. F. For the purposes of this section:

1. "Adult oriented Adult-oriented entertainment establishment" means an entertainment business at which performers disrobe or perform in an unclothed state.

2. Casino, gambling casino and gaming establishment do not include either of the following:

(a) A grocery store that sells groceries, including staple foods, and that is located in the same building or complex as a casino, gambling casino or gaming establishment.

(b) Any other business that offers gambling or gaming activities incidental to the principal purpose of the business.

3. "Electronic benefit transfer card transaction" means the use of a credit or debit card service, automated teller machine or point‑of‑sale terminal or access to an online system for the withdrawal of cash assistance provided pursuant to this article or for the processing of a payment for merchandise or a service from cash assistance provided pursuant to this article.

4. "Liquor" means the following substances as defined in section 4‑101:

(a) Beer.

(b) Wine.

(d) Spirituous liquor.

5. "Liquor store" means:

(a) A retail establishment that exclusively or primarily sells liquor, but does not include a grocery store that sells both liquor and groceries, including staple foods.

(b) An on-sale retailer as defined in section 4‑101 if the on-sale retailer sells liquor in the original container for consumption off premises.

6. "Staple food" means food in any of the following categories except accessory food items such as coffee, tea, cocoa, carbonated and uncarbonated drinks, candy, condiments and spices:

(a) Meat, poultry or fish.

(b) Bread or cereals.

(d) Dairy products. END_STATUTE

Sec. 4. Title 46, chapter 2, article 5, Arizona Revised Statutes, is amended by adding section 46-297.01, to read:

START_STATUTE46-297.01. Electronic benefit transfer cards; request for replacement cards; interview

A. The department shall send each recipient who requests four replacement cards within a twelve‑month period a letter informing the recipient that another request will require the recipient's participation in a face-to-face interview with a fraud investigator or eligibility expert. If a third‑party vendor is administering replacement cards directly to recipients, the vendor shall notify the department after a recipient requests a fourth replacement card in a twelve‑month period and makes any subsequent request thereafter.

B. After a recipient's request for a fifth replacement card within any twelve‑month period and any subsequent request thereafter, the department shall schedule a telephonic or face-to-face interview between the recipient and a fraud investigator or eligibility expert before issuing another new card. If the recipient fails to appear at the scheduled interview, the department shall terminate the recipient's benefits within ten days after the scheduled interview, unless expressly prohibited by federal law. END_STATUTE

Sec. 5. Study committee on alternative funding for elderly assistance; membership; duties; report; delayed repeal

A. The study committee on alternative funding for elderly assistance is established consisting of the following members:

1. Three members of the house of representatives who are appointed by the speaker of the house of representatives, not more than two of whom are members of the same political party. The speaker of the house of representatives shall designate one of these members to serve as cochairperson of the committee.

2. Three members of the senate who are appointed by the president of the senate, not more than two of whom are members of the same political party. The president of the senate shall designate one of these members to serve as cochairperson of the committee.

B. The committee shall evaluate and make recommendations for future alternative funding sources for the elderly assistance provided pursuant to section 42‑17401, Arizona Revised Statutes, as amended by this act.

C. The committee shall submit a report regarding the committee's findings and recommendations on or before December 1, 2017 to the governor, the president of the senate, the speaker of the house of representatives and the joint legislative budget committee and shall provide a copy of this report to the secretary of state.

D. This section is repealed from and after September 30, 2018.

Sec. 6. Legislative intent; authorized use of monies for public assistance

It is the intent of the legislature that all public monies intended for use to assist the elderly and general public in need be administered and used subject to eligibility and for the purposes set forth by law.

Sec. 7. Nonseverability

If any portion of this act is finally adjudicated invalid, the entire act is void.

Sec. 8. Retroactivity

Section 42‑17401, Arizona Revised Statutes, as amended by this act, applies retroactively to from and after December 31, 2015.