HB2860 - 572R

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

Section 1. Title 8, Arizona Revised Statutes, is amended by adding chapter 7, to read:

chapter 7. INDEPENDENT OVERSIGHT COMMITTEE

article 1. general provisions

START_STATUTE8-931. Definitions

In this article, unless the context otherwise requires:

1. "Committee" means the independent oversight committee on the department of child safety.

2. "Department" means the department of child safety.END_STATUTE

START_STATUTE8-932. Independent oversight committee on the department of child safety; duties; confidentiality; penalties; violation; classification; definitions

A. The independent oversight committee on the department of child safety is established consisting of the following members:

1. Two members of the senate who are appointed by the president of the senate and who are members of different political parties.

2. Two members of the house of representatives who are appointed by the speaker of the house of representatives and who are members of different political parties.

3. Two members who are appointed by the governor and who have demonstrated experience in child welfare administration, auditing, investigations, systems improvement or performance management.

4. One member who is appointed by the attorney general.

5. One member who is appointed by the chief justice of the supreme court and who has experience in juvenile law, dependency or court administration.

6. One member who is appointed by the governor and who is a physician licensed pursuant to title 32, chapter 13 or 17.

7. ONe member who is appointed by the governor, who is a mental health professional who is licensed pursuant to title 32, chapter 33 and who has experience in trauma-informed care and child welfare.

8. One member who represents a federally recognized indian tribe in this state and who is appointed through tribal consultation that is facilitated by an organization that represents tribes in this state. If a member is not appointed within sixty days after a request for an appointment, a member shall be appointed by the governor.

9. One member who is appointed by the governor and who represents foster parents.

10. One member who is appointed by the governor, who has experience in the child welfare system and who may be a previous child who was in the care and custody of the department.

11. One member who is appointed by the governor and who represents a county attorney's office, a law enforcement agency or a child maltreatment investigative unit and who has experience with the child welfare system.

12. oNE MEMBER WHO IS APPOINTED BY THE CHIEF JUSTICE OF THE SUPREME COURT OR A DESIGNEE OF THE CHIEF JUSTICE and WHO REPRESENTS A COURT-APPOINTED SPECIAL ADVOCATE ORGANIZATION OR VOLUNTEER ADVOCATE PROGRAM.

B. The MEMBERS OF THE COMMITTEE SHALL ANNUALLY SELECT A CHAIRPERSON. tHE CHAIRPERSON MAY NOT BE A CURRENT EMPLOYEE OF THE DEPARTMENT. any member of the committee who is a current employee of the department or who is a vendor with direct responsibility for department business may not be a voting member. Committee mEMBERS SHALL SERVE THREE-YEAR TERMs. MEMBERS MAY BE REAPPOINTED for one subsequent full term.

C. A member may be removed by the member's appointing authority for any of the following:

1. Neglect of duty.

2. Misconduct.

3. Inability to complete membership obligations.

4. Unexcused ABSENCES from three consecutive committee meetings.

D. Committee members serve without compensation except for reasonable travel expenses. Reimbursement pursuant to this subsection shall be made from monies that are appropriated to the independent oversight committee on the department of child safety fund established by section 8-933.

E. The committee shall employ an executive director who serves at the pleasure of the committee. The executive director may not be an employee of the department. The executive director may employ experts and administrative staff and may contract with experts.

F. Committee members shall disclose all actual and potential conflicts of interest and shall recuse themselves from any matter the committee is considering in which a member has a conflict of interest or may have a conflict of interest.

G. The committee shall meet at least monthly. a majority of the members constitutes a quorum for the transaction of business. The committee is subject to title 38, chapter 3, article 3.1 except that committee members shall meet in executive session when discussing protected information. Records received by the committee that contain protected information are considered confidential and are not subject to title 39, chapter 1, article 2 except in de-identified and aggregate form that is consistent with applicable state and federal law. The committee shall adopt written procedures for all of the following:

1. Secure handling, storage and transmission of protected information.

2. training for committee members and staff regarding confidentiality requirements.

3. De-identification standards for public reporting.

4. Receiving, triaging and responding to complaints and whistleblower communication.

H. The committee is independent from the department for purposes of oversight, critical incident review, complaint trend analysis and performance evaluation. The committee shall do all of the following:

1. Review and analyze the department's performance measures, including all of the following:

(a) Child safety outcomes.

(b) The recurrence of maltreatment.

(d) Child placement stability.

(e) Timelines for permanency placement.

(f) Incidents of runaway children who are in the care of the department.

(g) The use of congregate care.

(h) Rates of reentry.

(i) Any other indicators that are identified by the committee.

2. Review department policies and practices related to all of the following:

(a) Hotline screening.

(b) Investigations.

(d) Removal of a child from the child's home.

(e) Reunification of a child with the child's parent or guardian.

(f) Guardianship.

(g) Adoption.

(h) Care of a child after the child leaves the custody of the department.

3. REview department staffing levels, caseload ratios, vacancies, training, retention, worker safety and supervision practices.

4. Review vendor performance, vendor contract compliance, incident reporting, service availability and billing integrity.

5. Conduct systemic reviews that are focused on high-risk areas, including rural and tribal access, multidisciplinary coordination and timeliness of court-required action.

6. REview critical incidents and patterns of CRITICAL incidents, including root cause analysis and systemic contributing factors.

7. Evaluate compliance with applicable state and federal requirements, including confidentiality, due process requirements and child welfare mandates.

8. Maintain a compliant intake process and evaluate trends to identify systemic issues.

9. Issue written findings and recommendations and track corrective action implementation.

I. The committee may do any of the following:

1. rEQUEST BRIEFINGS FROM THE DEPARTMENT AND VENDORS.

2. cONDUCT SITE VISITS, INCLUDING visits of REGIONAL DEPARTMENT OFFICES AND CONTRACTED FACILITIES, AND PROGRAM REVIEWS.

3. cONVENE EXPERT PANELS AND CONsult WITH MEDICAL, BEHAVIORAL HEALTH AND CHILD WELFARE SPECIALISTS.

4. rEQUEST INDEPENDENT AUDITS OR EVALUATIONS.

5. Enter into contracts for any services that are necessary to complete committee business.

6. iF THE COMMITTEE IDENTIFIES AN IMMINENT SYSTEMIC RISK THAT PRESENTS A SUBSTANTIAL RISK TO CHILD SAFETY, THE COMMITTEE MAY ISSUE AN URGENT NOTIFICATION TO THE GOVERNOR, THE PRESIDENT OF THE SENATE AND THE SPEAKER OF THE HOUSE OF REPRESENTATIVES IN A MANNER THAT PROTECTS the CONFIDENTIALITY of the DEPARTMENT INFORMATION THAT IDENTIFIED THE SUBSTANTIAL THREAT.

7. COORDINATE WITH APPROPRIATE LAW ENFORCEMENT AGENCIES, TRIBAL GOVERNMENTS, LICENSING AGENCIES AND CHILD FATALITY OR MULTIDISCIPLINARY REVIEW ENTITIES TO REDUCE DUPLICATION.

8. ENTER INTO MEMORANDUMs OF UNDERSTANDING WITH APPROPRIATE AGENCIES TO FACILITATE THE SHARING OF CONFIDENTIAL INFORMATION.

J. iF THE COMMITTEE IDENTIFIES CREDIBLE EVIDENCE OF CRIMINAL CONDUCT, CIVIL RIGHTS VIOLATIONS OR SYSTEMIC VIOLATIONS OF LAW, THE COMMITTEE MAY REFER THE MATTER TO THE APPROPRIATE LAW ENFORCEMENT AGENCY. a REFERRAL PURSUANT TO THIS SUBSECTION MAY INCLUDE A DE-IDENTIFIED SUMMARY OF THE ALLEGATION, IF REQUESTED BY THE RECEIVING LAW ENFORCEMENT AGENCY, AND MAY INCLUDE PROTECTED INFORMATION ONLY TO THE EXTENT allowED BY APPLICABLE STATE OR FEDERAL LAW, SUBJECT TO RULES ADOPTED BY THE committee. A referral to a federal law enforcement agency pursuant to this subsection may be made without prior approval of the department if the committee reasonably believes the REFERRAL is necessary to protect child safety or preserve evidence. The committee may adopt rules to implement procedures that govern referrals pursuant to this subsection.

K. Notwithstanding any other law, the department shall provide committee members and staff with access to all department records, data and information that are necessary to perform the committee's duties, including protected information, subject to the requirements of this section and applicable state and federal law. The department shall provide requested information in de-identified form and in a format that is reasonably requested by the committee. Each department vendor shall cooperate with committee requests related to services provided by the vendor under department authority or through a vendor contract with the department. If a vendor believes that information requested by the committee may not be disclosed, the department or the vendor within five business days shall provide the committee with a written explanation for the department's or vendor's belief that the requested information may not be disclosed. The written explanation shall cite any legal authority that supports the department's or vendor's position. The department shall provide both of the following:

1. Critical incident records as soon as practicable but not later than seventy-two hours after the request of the committee.

2. Any other requested records not later than ten business days after the request of the committee. The committee may agree in writing to an extension for good cause.

L. If the committee determines that the DEPARTMENT or a vendor has not provided access to department information in the time frames required by subsection K of this section or has failed to cooperate in good faith, the committee may refer the failure to provide the information to the attorney general. The attorney general shall expediate REFERRALS from the committee pursuant to this subsection. The committee may be awarded attorney fees and costs related to enforcement efforts taken pursuant to this subsection. The attorney general may:

1. Request compliance with the requirements of this section through written demand.

2. Request a court order that compels compliance with the requirements of this section.

M. The committee shall establish a confidential process to receive complaints and concerns from the public and department employees. The confidential process shall do all of the following:

1. Distinguish between individual department case concerns and overall system issues.

2. Allow for the referral of individual department case concerns to the office of ombudsman-citizens aide established by section 41-1375, other appropriate department units, an APPROPRIATE law enforcement agency or any other state agency.

3. Ensure that systemic patterns identified through complaints that are received by the committee are selected for systemic review.

N. A person may report information to the committee pursuant to the process established pursuant to subsection M of this section. The department or a department vendor may not engage in retaliation against a person making a report pursuant to this subsection, reporting in good faith to the committee, participating in a committee review or providing testimony to the committee. a person who believes retaliation has occurred may submit a complaint regarding the retaliation to the committee. The committee may refer the retaliation complaint to an appropriate law enforcement agency for investigation.

O. A committee member, committee employee or committee contractor may not disclose protected information except as provided in this section. The committee shall publish committee reports only in de-identified, aggregate form and shall ensure that information is provided in a manner that is designed to prevent the identification of a child or a family. committee members and staff shall complete TRAINING on confidentiality and record handling before accessing protected information.

P. Disclosure of protected information to a law enforcement agency pursuant to this section is an authorized disclosure of protected department information if the disclosure is both of the following:

1. Limited to the minimum disclosure of protected information that is required.

2. Transmitted using secure methods that are established by the committee.

Q. Not later than sixty days after receiving a written report of findings and recommendations from the committee, the department shall provide a written response that does all of the following information:

1. Identifies each recommendation that is accepted, partially accepted or rejected.

2. If a recommendation is rejected, provides the reason for the rejection.

3. If a recommendation is accepted or partially accepted, includes a corrective action plan with measurable milestones, target completion dates and who within the department is responsible for completing the recommendation.

R. The department shall provide quarterly progress updates on a form prescribed by the committee on each corrective action plan created pursuant to subsection Q of this section. The committee shall track all corrective action plans and may publish de-identified progress summaries in a quarterly or annual report pursuant to subsection S of this section.

S. The committee shall submit the following:

1. Quarterly reports to the governor, the president of the senate, the speaker of the house of representatives and the chief justice of the supreme court that summarize the committee's oversight activities, major findings and corrective action plans in de-identified form.

2. On or before December 1 of each year, a report to the governor, the president of the senate, the speaker of the house of representatives and the chief justice of the supreme court that includes all of the following:

(a) Key performance indicators and trends.

(b) a sUMMARY OF CRITICAL INCIDENT PATTERN REVIEWS AND SYSTEMIC CONTRIBUTING FACTORS.

(d) dEPARTMENT STAFFING AND CASELOAD TRENDS.

(e) tHE STATUS OF DEPARTMENT CORRECTIVE ACTION PLANS.

(f) cOMMITTEE RECOMMENDATIONS FOR STATUTORY, BUDGETARY AND ADMINISTRATIVE CHANGES.

T. sUBJECT TO AVAILABLE RESOURCES AND CONFIDENTIALITY REQUIREMENTS, THE COMMITTEE SHALL DEVELOP AND MAINTAIN A PUBLICLY ACCESSIBLE DASHBOARD OF AGGREGATE, DE-IDENTIFIED CHILD SAFETY PERFORMANCE MEASURES.

U. A person who knowingly discloses protected information is guilty of a class 1 misdemeanor.

V. For the purpose of this section:

1. "Critical incident" means a child death, near death, serious injury, sexual EXPLOITATION or other event involving a child who is alleged to be the victim of abuse or neglect or who is in the care of the department.

2. "de-identified" means information that has been de-identified in accordance with 45 Code of Federal Regulations section 164.514(b).

3. "protected information":

(a) means information that is made confidential by state law, federal law, a court order or rule.

(b) includes child safety case records, personally identifying information, medical records, behavioral health records, educational records and information that is protected by the Health Insurance Portability and Accountability Act (P.L. 104-191) and the Family Educational Rights and Privacy Act (P.L. 93-380).

4. "systemic review" means an examination of policies, practices, workflows, staffing, training, contracting and performance measures that affect child safety outcomes across multiple cases.

5. "VEndor" means a contractor, subcontractor, provider, placement, facility or entity that furnishes services to the department or to children and families under contract, agreement or authorization of the department. END_STATUTE

START_STATUTE8-933. Independent oversight committee on the department of child safety fund

A. The independent oversight committee on the department of child safety fund is established consisting of legislative appropriations, grants, gifts and donations. The independent oversight committee on the department of child safety shall administer the fund. Monies in the fund are subject to legislative appropriation.

B. Monies in the fund may be used for any of the following:

1. Committee staffing and operations.

2. Independent audits, evaluations and expert consultations.

3. Secure data systems and CONFIDENTIALITY compliance.

4. Committee travel and site visits that are required for committee business.

C. The committee may not accept a grant, gift or donation that may create a conflict of interest. END_STATUTE

Sec. 2. Title 41, chapter 27, article 2, Arizona Revised Statutes, is amended by adding section 41-3036.01, to read:

START_STATUTE41-3036.01. Independent oversight committee on the department of child safety; termination July 1, 2036

A. The independent oversight committee on the department of child safety terminates on July 1, 2036.

B. Title 8, chapter 7 and this section are repealed on January 1, 2037. END_STATUTE

Sec. 3. Appropriation; independent oversight committee on the department of child safety fund; intent; exemption

A. The sum of $2,200,000 is appropriated from the general fund in fiscal year 2026-2027 to the independent oversight committee on the department of child safety fund established by section 8-933, Arizona Revised Statutes, as added by this act, and is appropriated from the fund to the independent oversight committee on the department of child safety.

B. The monies appropriated pursuant to subsection A of this section shall be allocated as follows:

1. $900,000 for personal services, employee-related expenses, committee executive and supporting staff salaries.

2. $600,000 for operating expenses.

3. $300,000 for contracting services, including audits, expert reviews and specialized evaluations.

4. $300,000 for start-up and secure infrastructure costs, hardware and dashboard development.

5. $100,000 for contingency and oversight needs.

C. The legislature intends that beginning in fiscal year 2027-2028, and each fiscal year thereafter, the legislature appropriate $1,800,000 to the independent oversight committee on the department of child safety fund for continued committee operations.

D. 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. 4. Initial terms of members of the independent oversight committee on the department of child safety

A. Notwithstanding section 8-932, Arizona Revised Statutes, as added by this act, the initial terms of members of the independent oversight committee on the department of child safety are:

1. Five terms ending January ___, 2027.

2. Five terms ending January ___, 2028.

3. Five terms ending January ___, 2029.

B. The appropriate official shall make all subsequent appointments as prescribed by statute.

Sec. 5. Purpose

Pursuant to section 41-2955, subsection E, Arizona Revised Statutes, the legislature establishes the independent oversight committee on the department of child safety to improve transparency, strengthen accountability, enhance public confidence and support improvement in the child welfare system.

Sec. 6. Severability

If a provision of this act or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the act that can be given effect without the invalid provision or application, and to this end the provisions of this act are severable.

Sec. 7. Legislative findings

A. The legislature finds that:

1. This state has a compelling interest in protecting children from abuse and neglect and ensuring lawful, timely and effective child welfare interventions.

2. Independent oversight improves transparency, strengthens accountability, enhances public confidence and supports continuous improvement in systems that are charged with child protection.

3. Oversight must preserve the confidentiality of child and family information while allowing meaningful review of systemic performance and critical incidents.

4. Effective oversight requires timely access to records, independent staffing and clear reporting and response obligations.

B. The purpose of this act is to establish an independent oversight body to do the following:

1. Evaluate the policies, practices and performance of the department of child safety.

2. Review critical incidents and systemic risks.

3. Receive complaints and whistleblower information.

4. Refer credible evidence of criminal or civil violations to appropriate authorities, including federal authorities when applicable.

5. Provide regular public reporting and recommendations to improve child safety outcomes and compliance with state and federal law.