REFERENCE TITLE: human services; 2026-2027.

 

 

 

 

State of Arizona

Senate

Fifty-seventh Legislature

Second Regular Session

2026

 

 

 

SB 1855

 

Introduced by

Senator Farnsworth (with permission of Committee on Rules)

 

 

 

 

 

 

 

 

AN ACT

 

Amending sections 33-1476.04, 41-608.04 and  41-1970, Arizona Revised Statutes; amending title 41, chapter 14, article 5, Arizona Revised Statutes, by adding section 41-2023; amending sections 41-3955 and 43-1086, Arizona Revised Statutes; amending laws 2008, chapter 243, section 6, as amended by laws 2012, chapter 281, section 2 and laws 2018, chapter 199, section 3; appropriating monies; relating to human services.

 

 

(TEXT OF BILL BEGINS ON NEXT PAGE)

 


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

Section 1. Section 33-1476.04, Arizona Revised Statutes, is amended to read:

START_STATUTE33-1476.04. Relocations due to rent increase; mobile home relocation fund; applicability

A. A tenant is eligible for payment from the mobile home relocation fund if all of the following conditions are met:

1. The tenant resides in a mobile home that is owned by the tenant and that is located in a mobile home park.

2. A rent increase will be effective at the expiration or renewal of the tenant's rental agreement.

3. The rent increase either singly or in combination during any consecutive twelve-month period is more than a total of ten percent plus the current increase in the consumer price index over the most recent one-year period before the date of the notice of the rent increase.  For the purposes of this paragraph, "consumer price index" means the "west-A" index that is published by the United States department of labor, bureau of labor statistics, and that demonstrates changes in prices in certain cities in the western United States.

B. A landlord who increases rent as prescribed by subsection A of this section shall give written notice of the applicability of this section to all affected tenants.

C. A tenant is eligible to receive relocation expenses pursuant to subsection A of this section as follows:

1. At least thirty days before the effective date of the rent increase that exceeds the limits prescribed by subsection A of this section, the tenant shall submit a contract for relocation of the mobile home to the director for approval and to the landlord.

2. Before the effective date of the rent increase, the tenant shall have a fully signed contract with a licensed installer or contractor to move the mobile home to a specific location.

3. The director shall approve or disapprove the contract submitted within fifteen days after receipt of the contract, and the contract is deemed to be approved on the sixteenth day if the director takes no action.

4. If the contract is approved, the payment of relocation expenses shall be made to the installer or contractor when both of the following are complete:

(a) The installer or contractor obtains valid permits to move the mobile home or manufactured home to a new location.

(b) The installer or contractor provides documentation to the department that the installation of the mobile home or manufactured home at the new location is complete and has been inspected by the department or its designee and is approved for occupancy.

5. If the contract is not approved, the tenant may appeal to an administrative law judge pursuant to title 41, chapter 37, article 5. The tenant shall provide notice pursuant to section 33-1451, subsection A, paragraph 6 if the tenant relocates.

6. On approval, the tenant is eligible for the lesser of the actual moving expenses of relocating the mobile home or $12,500 $22,500 for a single-section mobile home or $20,000 $30,000 for a multisection mobile home. Compensable moving expenses include the cost of taking down, moving and setting up the mobile home in the new location if the mobile home is relocated to a residential location within a one hundred-mile radius of the vacated mobile home park this state.

D. As an alternative to receiving payment as prescribed in subsection C of this section, a tenant who is eligible to receive payment pursuant to subsection A of this section may abandon the mobile home in the mobile home park and collect an amount equal to forty percent of the maximum allowable moving expense for that mobile home from the mobile home relocation fund.  To qualify for an abandonment payment pursuant to this subsection, the tenant shall deliver to the landlord the current title to the mobile home with the notarized endorsement of the owner of record together with complete releases of all liens that are shown on the title and proof that all taxes owing on the mobile home have been paid to date.  The tenant shall provide a copy of these documents to the Arizona department of housing in support of the tenant's application for payment.  If the tenant chooses to abandon the mobile home pursuant to this subsection, the landlord is exempt from making the payments to the fund prescribed in section 33-1476.01, subsection D.

E. This section does not apply to rent increases that are prescribed in a written rental agreement.

F. This section does not make any rent increase unreasonable.END_STATUTE

Sec. 2. Section 41-608.04, Arizona Revised Statutes, is amended to read:

START_STATUTE41-608.04. Military family relief fund; subaccounts; advisory committees; definitions

A. The military family relief fund is established through December 31, 2026 2031.  The fund consists of private donations, grants, bequests and any other monies received for that purpose.

B. The pre-9/11 veterans subaccount and post-9/11 veterans subaccount of the military family relief fund are established. The department shall administer the fund and subaccounts. On notice from the director, the state treasurer shall invest and divest monies in the subaccounts as provided by section 35-313, and monies earned from investment shall be credited to the subaccounts. The monies in the subaccounts are continuously appropriated to the department solely for the purposes described in this section. Any monies remaining unexpended and unencumbered on December 31, 2026 2031 shall be transferred for deposit in the veterans' donations fund established by section 41-608.

C. The post-9/11 military family relief advisory committee is established to determine appropriate uses of the monies in the post-9/11 veterans subaccount as provided by this section.  The post-9/11 military family relief advisory committee consists of the director or the director's designee and twelve additional members, including widows and widowers of military personnel who died in the line of duty, military retirees, veterans who have a service-connected disability and their family members, Arizona army and air national guard unit commanders and active and retired senior enlisted military personnel.  Except for the director, the governor shall appoint the members based on recommendations by the director, the adjutant general and commanders of military bases in this state.  Appointed members serve at the pleasure of the governor. The post-9/11 military family relief advisory committee shall elect a chairperson from among the appointed members.

D. The post-9/11 military family relief advisory committee shall:

1. Establish criteria for the use of monies in the post-9/11 veterans subaccount.

2. Establish and revise as necessary the application process for financial assistance.

3. Review and evaluate applications.

4. Make other recommendations as necessary.

E. The pre-9/11 military family relief advisory committee is established to determine appropriate uses of the monies in the pre-9/11 veterans subaccount as provided by this section.  The pre-9/11 military family relief advisory committee consists of the director or the director's designee and twelve additional members, including widows and widowers of military personnel who died in the line of duty, military retirees, veterans who have a service-connected disability and their family members, Arizona army and air national guard unit commanders and active and retired senior enlisted military personnel. Except for the director, the governor shall appoint the members based on recommendations by the director, the adjutant general and commanders of military bases in this state.  Appointed members serve at the pleasure of the governor. The pre-9/11 military family relief advisory committee shall elect a chairperson from among the appointed members.

F. The pre-9/11 military family relief advisory committee shall:

1. Establish criteria for the use of monies in the pre-9/11 veterans subaccount.

2. Establish and revise as necessary the application process for financial assistance.

3. Review and evaluate applications.

4. Make other recommendations as necessary.

G. The advisory committees may establish subcommittees, consisting of not more than five members of the full committees, to recommend approval of a grant to an applicant of not more than $3,000.

H. Notwithstanding section 38-431.03, the subcommittees may meet in executive session without advance notice.  The full advisory committees may meet in executive session, with notice pursuant to section 38-431.02, to review and evaluate applications or review recommendations of the subcommittees. Applications for financial assistance and all committee considerations and evaluations of the applications are confidential.

I. The monies in the post-9/11 veterans subaccount shall be used to provide financial assistance pursuant to this subsection.  The service member of an applying family must have been deceased, wounded or injured or become seriously ill after September 11, 2001 and been deployed from a military base in this state after September 11, 2001, claimed this state as the service member's home of record, been a member of the Arizona national guard at the time of deployment or established residency in this state and be able to provide proof of continuous physical presence in this state for at least twelve months before submitting an application. If discharged from military service, the service member must have been discharged under honorable conditions. The assistance shall be based on financial need as a result of the service member's military service up to $20,000 per family. Eligible assistance is as follows:

1. Widows, widowers or dependent children of service members who died in the line of duty in a combat zone or a zone where the person was receiving hazardous duty pay may apply for a stipend for living expenses for up to six months. For the purposes of the stipend, qualifying living expenses are residential mortgage, rent and utility payments and other basic living expenses. Payments with respect to any deceased person under this paragraph are limited to a total of $20,000.

2. An immediate family member may apply for payment of costs of temporary residence near the medical facility where the service member or former service member is being treated, including living, travel and housing expenses. Payments may be payable in monthly installments as long as the person is hospitalized or receiving medical care or rehabilitation services as authorized by military or veterans' medical personnel.

3. An immediate family member, service member or former service member may apply for:

(a) Living expenses.

(b) Other appropriate expenses as determined by the post-9/11 military family relief advisory committee.

J. The monies in the pre-9/11 veterans subaccount shall be used to provide financial assistance pursuant to this subsection.  The service member of an applying family must have been deceased, wounded or injured or become seriously ill on or before September 11, 2001 and been deployed from a military base in this state on or before September 11, 2001, claimed this state as the service member's home of record, been a member of the Arizona national guard at the time of deployment or established residency in this state and be able to provide proof of continuous physical presence in this state for at least twelve months before submitting an application. If discharged from military service, the service member must have been discharged under honorable conditions. The assistance shall be based on financial need as a result of the service member's military service up to $20,000 per family. Eligible assistance is as follows:

1. Widows, widowers or dependent children of service members who died in the line of duty in a combat zone or a zone where the person was receiving hazardous duty pay may apply for a stipend for living expenses for up to six months. For the purposes of the stipend, qualifying living expenses are residential mortgage, rent and utility payments and other basic living expenses. Payments with respect to any deceased person under this paragraph are limited to a total of $20,000.

2. An immediate family member may apply for payment of costs of temporary residence near the medical facility where the service member or former service member is being treated, including living, travel and housing expenses. Payments may be payable in monthly installments as long as the person is hospitalized or receiving medical care or rehabilitation services as authorized by military or veterans' medical personnel.

3. An immediate family member, service member or former service member may apply for:

(a) Living expenses.

(b) Other appropriate expenses as determined by the pre-9/11 military family relief advisory committee.

K. The director may allocate up to ten percent of the donations received for the actual reasonable costs of administering the subaccounts and the financial assistance program under this section, including the hiring of an employee to process applications and provide support to the committee.  The department shall provide reasonable office space and other necessary resources for the employee.

L. The director shall receive private donations for deposit in the subaccounts and issue receipts to the donors. A donor shall designate the subaccount in which the donor wishes the donation to be deposited as follows:

1. One hundred percent of the donation to be deposited in the pre-9/11 veterans subaccount.

2. One hundred percent of the donation to be deposited in the post-9/11 veterans subaccount.

3. Fifty percent of the donation to be deposited in the pre-9/11 veterans subaccount and fifty percent of the donation to be deposited in the post-9/11 veterans subaccount.

M. Private donations may qualify for the purposes of income tax credits under section 43-1086. The director may receive donations in any amount, but donations that qualify for tax credits are subject to the limits prescribed by section 43-1086. Donations to the subaccounts that otherwise qualify under the tax credit limits prescribed by section 43-1086 but that exceed a combined total of $1,000,000 in any calendar year, on a first-come, first-served basis, do not qualify for the income tax credits. The director shall provide the taxpayer a donation receipt, which shall include the taxpayer's full name and address, the last four digits of the taxpayer's social security number and the amount of the donation. The director shall designate on the donation receipt whether the donation qualifies under the limits prescribed by this subsection and section 43-1086. The director shall send a record of receipts that qualify under this subsection to the department of revenue.

N. On or before March 31 of each year, the director shall provide for an audit by an independent certified public accountant of the subaccounts and of the aggregate amount authorized by the director for income tax credits under subsection M of this section. The director shall promptly submit a certified copy of the audit to the auditor general. The auditor general may make further audits and examinations as necessary and may take appropriate action relating to the audit or examination pursuant to chapter 7, article 10.1 of this title.  If the auditor general does not take further action within thirty days after the audit is filed, the audit is considered to be sufficient. The director shall pay the costs of the certified public accountant and the auditor general from the administration allocation under subsection K of this section.

O. For the purposes of this section:

1. "Established residency in this state" means that a service member has done any of the following:

(a) Obtained either a valid Arizona driver license, Arizona or nonoperating identification license issued by the department of transportation pursuant to title 28, chapter 8., Arizona

(b) Registered a motor vehicle registration or in this state pursuant to title 28, chapter 7.

(c) Received a community service organization verification of homeless status and Arizona residency.

2. "Continuous physical presence" means that a service member has a documented place of habitation and is living in this state or has community service organization verification of homeless status and continuous physical presence in this state. END_STATUTE

Sec. 3. Section 41-1970, Arizona Revised Statutes, is amended to read:

START_STATUTE41-1970. Out-of-school time grant program; fund; report; definitions

A. The out of school time grant program is established in the department to expand out-of-school time child care for school-age children who are at least five years of age and eligible for or enrolled in kindergarten and not older than twelve eighteen years of age and who require child out-of-school time care either when the children are out-of-school or during periods of time when school instruction is not being conducted.

B. The grant program shall:

1. Increase the number of eligible pupils with access to child out-of-school time care before school, after school or during periods of time when school instruction is not being conducted.

2. Increase access to and the affordability of child out-of-school time care for children and their families.

3. Enable employers to attract and retain a talented workforce.

4. Reduce the cost of child out-of-school time care to participating families by at least two-thirds or expand out-of-school time care at no cost to participating families.

C. The department shall do all of the following:

1. Develop an annual grant application process.

2. Provide grants to assist with the costs of child out-of-school time care to eligible grantees who participate in the grant program.

3. Monitor eligible grantees to ensure grant program and fiscal compliance.

4. Develop metrics to measure the success of the grant program.

5. Allocate at least thirty percent of grant monies for eligible grantees in rural communities, which may be used in any location in this state if there are insufficient grant applications from rural communities.

D. The out-of-school time grant program fund is established consisting of legislative appropriations.  The department may not use more than five percent of the monies deposited in the fund to administer the fund.  Monies in the fund are continuously appropriated and are exempt from the provisions of section 35-190 relating to lapsing of appropriations.

E. On or before August 1, 2026 and each year thereafter, the department shall submit an annual report to the governor, the president of the senate and the speaker of the house of representatives and shall provide a copy of this report to the secretary of state.  The report shall include all of the following:

1. The total number of children who are served by the out-of-school time grant program, categorized by age of the child and the county where the child is served.  The information provided pursuant to this paragraph may not include any information that identifies or can be used to identify a child.

2. The locations of programs, categorized by county.

3. The number of new and sustained child care slots children newly enrolled in out-of-school time care programs.

F. The department may develop policies and procedures that are necessary to implement this section.

G. For the purposes of this section:

1. "Eligible grantee" means a nonprofit organization, public school and public or private child care provider that:

(a) Operates primarily during after school, before school or in the summer or at times when school is not normally in session.

(b) Has demonstrated experience providing child out-of-school time care before school, after school or during periods of time when school instruction is not being conducted.

(c) Serves only eligible pupils.

(d) Is organized to promote expanded childhood LEARNING, enrichment, child and youth development or educational, recreational or character-building activities.

2. "Eligible pupils" means school-age children who are at least five years of age and eligible for or enrolled in kindergarten and not older than twelve eighteen years of age and who come from a household earning $150,000 or less per year. END_STATUTE

Sec. 4. Title 41, chapter 14, article 5, Arizona Revised Statutes, is amended by adding section 41-2023, to read:

START_STATUTE41-2023. Speech and audition services; rules

A. Beginning July 1, 2027, subject to available appropriations, the department shall contract with listening and spoken language providers in this state to provide speech and audition services to early intervention programs and services to eligible families that have infants and toddlers who are deaf or hard of hearing.  each Contractor shall ensure that the provided services are administered by or overseen by a certified auditory verbal educator or therapist in a natural environment, clinical setting, educational setting or virtual setting.

B. The department shall refer eligible families that have infants and toddlers who are deaf or hard of hearing to at least both of the following:

1. Contracted listening and spoken language providers.

2. The Arizona state schools for the deaf and the blind.

C. The department may adopt rules, policies and procedures to implement this section.  The department may use up to ten percent of monies appropriated for contracts prescribed in subsection A of this section for administrative costs. END_STATUTE

Sec. 5. Section 41-3955, Arizona Revised Statutes, is amended to read:

START_STATUTE41-3955. Housing trust fund; purpose; annual report

A. The housing trust fund is established, and the director shall administer the fund. The fund consists of monies from unclaimed property deposited in the fund pursuant to section 44-313, monies transferred pursuant to section 35-751 and investment earnings.

B. On notice from the department, the state treasurer shall invest and divest monies in the fund as provided by section 35-313, and monies earned from investment shall be credited to the fund.

C. Except as provided in subsection D of this section, fund monies shall be spent on approval of the department for developing projects and programs connected with providing housing opportunities for low and moderate income households and for housing affordability programs. A portion of fund monies shall be used exclusively for housing in rural areas.

D. Fund monies may be spent on constructing or renovating facilities and on housing assistance, including support services. Fund monies shall be awarded in the following order of priority for the first four months of each fiscal year:

1. State matching monies for various federally funded programs.

1. 2. Constructing or renovating emergency shelter facilities or for any operational expenses for emergency shelter services.

2. 3. Constructing or renovating transitional housing units.

3. 4. Constructing or renovating other types of shelter or housing as determined by the department to best serve the needs of individuals who have been determined to be seriously mentally ill and chronically resistant to treatment.

E. For the purposes of subsection C of this section, in approving the expenditure of monies, the director shall give priority to funding projects that provide for operating, constructing or renovating facilities for housing for low-income families and that provide housing and shelter to families that have children.

F. After the four-month period prescribed in subsection D of this section, fund monies that have not been awarded or encumbered pursuant to the priority list prescribed in subsection D of this section may be spent based on stakeholder feedback.

G. The department shall submit for review by the joint legislative budget committee all programs established by the department and funded by the housing trust fund pursuant to this section.

H. The director shall report annually to the legislature on the status of the housing trust fund.  The report shall include a summary of facilities for which funding was provided during the preceding fiscal year and shall show the cost and geographic location of each facility and the number of individuals benefiting from the operation, construction or renovation of the facility.  The report shall also include the number of individuals who benefit from housing assistance pursuant to subsection D of this section.  The report shall be submitted to the president of the senate and the speaker of the house of representatives, and a copy provided to the secretary of state, not later than September 1 of each year.

I. Monies in the housing trust fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations.

J. An amount not to exceed ten percent of the housing trust fund monies may be appropriated annually by the legislature to the department for administrative costs in providing services relating to the housing trust fund.

K. For any construction project financed by the department pursuant to this section, the department shall notify a city, town, county or tribal government that a project is planned for its jurisdiction and, before proceeding, shall seek comment from the governing body of the city, town, county or tribal government or an official authorized by the governing body of the city, town, county or tribal government. The department shall not interfere with or attempt to override the local jurisdiction's planning, zoning or land use regulations.END_STATUTE

Sec. 6. Section 43-1086, Arizona Revised Statutes, is amended to read:

START_STATUTE43-1086. Credit for donation to the military family relief fund subaccounts

A. For taxable years beginning from and after December 31, 2007 through December 31, 2026 2031, a credit is allowed against the taxes imposed by this title for cash contributions made by a taxpayer during the taxable year to the pre-9/11 veterans subaccount or post-9/11 veterans subaccount of the military family relief fund established by section 41-608.04. The amount of the credit is the lowest of the following amounts, as applicable:

1. The total amount of contributions to the pre-9/11 veterans subaccount or post-9/11 veterans subaccount, or both subaccounts, by the taxpayer during the taxable year.

2. Two hundred dollars of contributions during the taxable year by a taxpayer filing as a single individual or a head of household.

3. Four hundred dollars of contributions during the taxable year by a married couple filing a joint return.

4. The taxpayer's tax liability for the taxable year.

B. A husband and wife who file separate returns for a taxable year in which they could have filed a joint return may each claim only one-half of the tax credit that would have been allowed on a joint return. END_STATUTE

Sec. 7. Laws 2008, chapter 243, section 6, as amended by Laws 2012, chapter 281, section 2 and Laws 2018, chapter 199, section 3, is amended to read:

Sec. 6. Delayed repeal

A. Section 41-608.04, Arizona Revised Statutes, as amended by this act Laws 2018, chapter 199, section 1, is repealed from and after December 31, 2026 2031.

B. Section 43-1086, Arizona Revised Statutes, as amended by this act Laws 2018, chapter 199, section 2, is repealed from and after December 31, 2026 2031.

Sec. 8. Supplemental nutrition assistance program fund; delayed repeal

A. The supplemental nutrition assistance program fund is established consisting of monies collected by the department of economic security from federal deposits for supplemental nutrition assistance program administration as authorized by 7 Code of Federal Regulations parts 271 through 285. The department of economic security shall administer the fund.  Monies in the fund are continuously appropriated.  The department of economic security shall deposit federal monies received for the federal administrative share under the supplemental nutrition assistance program in the fund before expenditure.

B. This section is repealed from and after June 30, 2027.

Sec. 9. Supplemental nutrition assistance program; error rate; report; delayed repeal

A. The department of economic security shall report to the president of the senate, the speaker of the house of representatives and the joint legislative budget committee:

1. On a monthly basis, the number of supplemental nutrition assistance program cases, number of program participants and total benefits paid to persons who are categorically eligible for supplemental nutrition assistance pursuant to 7 United States Code section 2014(a).

2. Within thirty days after submission of the final month of quality control reviews to the United States department of agriculture food and nutrition service pursuant to 7 Code of Federal Regulations part 275, subpart C an estimate of the payment error rate for the completed federal fiscal year 2025-2026 and the number and extent of errors attributable to supplemental nutrition assistance program recipients who are categorically eligible pursuant to 7 United States Code section 2014(a).

B. This section is repealed from and after June 30, 2027.

Sec. 10. Supplemental nutrition assistance program; eligibility evaluations; public posting; delayed repeal; definitions

A. To determine or evaluate SNAP eligibility, the department shall:

1. Review information that is provided by the Arizona state lottery commission and the department of gaming and review its own data pursuant to 7 Code of Federal Regulations section 272.17 to identify members of eligible households who have substantial lottery or gambling winnings as defined in 7 Code of Federal Regulations section 273.11(r)(2), including online gambling winnings, and shall incorporate the information into eligibility determinations pursuant to 7 Code of Federal Regulations section 273.11(r).

2. Review information provided by the department of health services that identifies individuals who have had a change in circumstances that may affect SNAP eligibility.

3. Review the department's information as the state wage information collection agency and the agency that administers unemployment insurance benefits to verify eligibility for and the amount of SNAP benefits due to eligible households pursuant to 7 Code of Federal Regulations section 272.8(a)(1).

4. Review information provided by the state department of corrections that identifies individuals who have had a change in circumstances that may affect SNAP eligibility.

B. The department shall review the following information provided by federal sources to assess a recipient's eligibility for SNAP:

1. Earned income information, death master file information, supplemental security income information, beneficiary records, earnings information and pension information that is maintained by the United States social security administration pursuant to 7 Code of Federal Regulations sections 272.8(a)(1)(ii) and 272.14(b).

2. Income and employment information that is maintained in the national directory of new hires database pursuant to 7 Code of Federal Regulations section 272.16 and child support enforcement data that is maintained by the United States department of health and human services pursuant to 7 Code of Federal Regulations sections 273.2(f)(1)(xii) and 273.9(b)(2)(iii).

3. National fleeing felon information that is maintained by the federal bureau of investigation pursuant to 7 Code of Federal Regulations section 273.11(n).

C. If the department receives reliable information that identifies an individual who is enrolled in SNAP and that indicates a change in circumstances that may affect that individual's SNAP eligibility, the department shall review the individual's case pursuant to 7 Code of Federal Regulations section 273.12(c).

D. The department may not rely solely on self-attestation to confirm residency for SNAP eligibility except in unusual circumstances as set forth in federal law.

E. This section is repealed from and after June 30, 2027.

F. For the purposes of this section:

1. "Department" means the department of economic security.

2. "SNAP" means the supplemental nutrition assistance program.

Sec. 11. Supplemental nutrition assistance program; report

On or before June 30, 2027, the department of economic security shall submit a report to the president of the senate, the speaker of the house of representatives and the joint legislative budget committee that details the department's efforts to improve the quality and timeliness of eligibility determinations for the supplemental nutrition assistance program, including specific goals for, actions taken in and barriers faced during the reporting period.

Sec. 12. Electronic benefit transfer cards; spending report; delayed repeal

A. In the spending report of the supplemental nutrition assistance program and temporary assistance for needy families benefit required by section 46-297.02, Arizona Revised Statutes, the department of economic security shall include all of the following:

1. The number of supplemental nutrition assistance program cases that were investigated for intentional program violations or fraud.

2. The number of supplemental nutrition assistance program cases that were referred to the attorney general's office for prosecution.

3. The amounts of improper payments and expenditures.

4. The amount of monies recovered.

5. The amount of monies spent for improper payments and ineligible recipients as a percentage of cases that were investigated and reviewed.

B. This section is repealed from and after June 30, 2027.

Sec. 13. Department of economic security; drug testing; TANF cash benefits recipients

During fiscal year 2026-2027, the department of economic security shall screen and test each adult recipient who is otherwise eligible for temporary assistance for needy families cash benefits and who the department has reasonable cause to believe engages in the illegal use of controlled substances. Any recipient who tests positive for the use of a controlled substance that was not prescribed for the recipient by a licensed health care provider is ineligible to receive benefits for a period of one year.

Sec. 14. Supplemental early childhood listening and spoken language services; memorandum of understanding; contracts; appropriation; transfer

On or before November 1, 2026, the Arizona state schools for the deaf and the blind shall transfer existing contracts for supplemental early childhood listening and spoken language services to the department of economic security.  The Arizona state schools for the deaf and the blind and the department of economic security shall develop a memorandum of understanding that outlines the transfer of the contracts to ensure that families receiving listening and spoken language services have no lapse in those services.  The Arizona state schools for the deaf and the blind shall transfer the remaining balance of the fiscal year 2026-2027 appropriation for supplemental early childhood listening and spoken language services, after all invoices have been paid to contractors, to the department of economic security.

Sec. 15. Succession

A. As provided in section 41-2023, Arizona Revised Statutes, as added by this act, the department of economic security succeeds to the authority, powers, duties and responsibilities of the Arizona state schools for the deaf and the blind relating to speech and audition services.

B. On or before November 1, 2026, all contracts in process of the Arizona state schools for the deaf and the blind relating to supplemental early childhood listening and spoken language services are transferred to and retain the same status with the department of economic security.