Arizona-2015-HB2102-Chaptered

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

Section 1. Heading change

The article heading of title 36, chapter 2, article 3, Arizona Revised Statutes, is changed from "CHILDREN'S REHABILITATIVE SERVICES" to "CHILDREN WITH CHRONIC ILLNESSES OR PHYSICAL DISABILITIES".

Sec. 2. Section 36-260, Arizona Revised Statutes, is amended to read:

START_STATUTE36-260. Definitions

In this article, unless the context otherwise requires:

1. "Administration" means the Arizona health care cost containment system administration.

2. 1. "Chronically ill or children with physical disabilities Children who have a chronic illness or physical disability" means children who are under twenty‑one years of age and whose primary diagnosis is a severe physical condition that may require ongoing, medical or surgical intervention.

3. "Director" means the director of the Arizona health care cost containment system administration.

2. "Department" means the department of health services. END_STATUTE

Sec. 3. Repeal

Section 36-261, Arizona Revised Statutes, is repealed.

Sec. 4. Title 36, chapter 2, article 3, Arizona Revised Statutes, is amended by adding a new section 36-261, to read:

START_STATUTE36-261. Children who have a chronic illness or physical disability; program

Subject to the availability of monies, the department shall establish and administer a program for children who have a chronic illness or physical disability or who are suffering from A condition that leadS to a chronic illness or physical disability. The program shall provide for:

1. The development, extension and improvement of services for locating these children.

2. The evaluation of needs.

3. The gathering of statistical information.

4. A statewide information and referral service for children who have a chronic illness or physical disability to link those children and their families with local service providers. END_STATUTE

Sec. 5. Repeal

Section 36-261.01, Arizona Revised Statutes, is repealed.

Sec. 6. Section 36-262, Arizona Revised Statutes, is amended to read:

START_STATUTE36-262. Central statewide information and referral service for children who have a chronic illness or physical disability

A. The purposes of the information and referral service for chronically ill or children with physical disabilities children who have a chronic illness or physical disability as prescribed pursuant to this article are to:

1. Establish a roster of agencies providing medical, educational, financial, social and transportation services to chronically ill or children with physical disabilities children who have a chronic illness or physical disability.

2. Develop or use an existing statewide, computerized information and referral service that provides information on services for chronically ill or children with physical disabilities children who have a chronic illness or physical disability.

B. This section does not require any person or public or private agency or other entity to participate in the information and referral service. END_STATUTE

Sec. 7. Repeal

Sections 36-263 and 36-264, Arizona Revised Statutes, are repealed.

Sec. 8. Section 36-797.43, Arizona Revised Statutes, is amended to read:

START_STATUTE36-797.43. Care and treatment of children with sickle cell anemia; reimbursement

A. The Arizona health care cost containment system administration Subject to the availability of monies, the department of health services, through the children's rehabilitative services, may develop and operate, either directly or by contracting with public or private providers, programs for the diagnosis, care and treatment of children suffering from sickle cell anemia.

B. The programs developed and operated pursuant to this section are part of the children's rehabilitative services provided by the administration pursuant to section 36‑261.

C. B. The parent or other responsible person, agency or third‑party payor shall reimburse the administration department for part or all of the costs of services rendered to a child pursuant to this section according to a scale of rates and charges established by the administration department and based on the cost of services provided and the ability of the parent or responsible person to pay for these services. END_STATUTE

Sec. 9. Section 36-797.44, Arizona Revised Statutes, is amended to read:

START_STATUTE36-797.44. Care and treatment of adults with sickle cell anemia; reimbursement

B. The adult or other responsible person, agency or third‑party payor shall reimburse the administration department for part or all of the costs of services rendered to an adult pursuant to this section according to a scale of rates and charges established by the administration department and based on the cost of services provided and the ability of the adult or other responsible person to pay for these services. END_STATUTE

Sec. 10. Section 36-2907.08, Arizona Revised Statutes, is amended to read:

START_STATUTE36-2907.08. Basic children's medical services program; definition

A. Beginning on October 1, 1996, the basic children's medical services program is established to provide grants to hospitals that exclusively serve the medical needs of children or that operate programs designed primarily for children.� The director of the department of health services, pursuant to an intergovernmental agreement with the director of the Arizona health care cost containment system and subject to the availability of monies, shall implement and operate this program only to the extent that funding is available and has been specifically dedicated for the program.

B. To receive a grant under this section, a hospital shall submit an application as prescribed by the director of the department of health services in a request for proposal that indicates to the director's satisfaction that the applicant agrees to:

1. Use grant program monies to enhance the applicant's provision of additional medical services to children and to improve the applicant's ability to deliver inpatient, outpatient and specialized clinical services to indigent, uninsured or underinsured children who are not eligible to receive services under this article.

2. Establish and enforce a sliding fee scale for children who are provided services with grant monies.

3. Account for monies collected pursuant to paragraph 2 of this subsection separately from all other income it receives and to report this income on a quarterly basis to the administration.

4. Use the grant to supplement monies already available to the applicant.

5. Match the grant as prescribed by the director by rule with private monies the applicant has pledged from private sources.� The director shall waive this requirement if the applicant is seeking the grant to qualify for a private or public grant for the delivery of inpatient, outpatient or specialized clinical care of indigent, uninsured or underinsured children who are not eligible to receive services under this article.

6. Provide a mechanism to ensure that grant program monies are not used for children who are eligible for services under this article.

7. Not use grant monies to fund the provision of emergency room services.

C. By contract, the director of the department of health services shall require a grantee to:

1. Annually account for all expenditures it makes with grant program monies during the previous year.

2. Agree to cooperate with any audits or reviews conducted by this state.

3. Agree to the requirements of this section and other conditions the director determines to be necessary for the effective use of grant program monies.

D. The director of the department of health services may limit either or both the grant amount per contract or the number of contracts awarded. In awarding contracts to qualified applicants the director shall consider:

1. The amount of monies available for the grant program.

2. The need for grant monies in the area served by the applicant as stated by the applicant in the response to the request for proposals and as researched by the administration.

3. The number of children estimated to be served by the applicant with grant program monies.

4. The services that will be provided or made available with grant program monies.

5. The percentages of grant monies that the applicant indicates will be reserved for administrative expenditures, direct service expenditures and medical care personnel costs.

6. The financial and programmatic ability of the applicant to meet the contract's requirements.

E. If the department of health services determines that a hospital has used grant monies in violation of this section, it shall prohibit that hospital from receiving additional grant program monies until the hospital reimburses the department.� The department shall impose an interest penalty as prescribed by the director of the department of health services by rule. The director shall deposit, pursuant to sections 35‑146 and 35‑147, penalties collected under this section in the medically needy account of the tobacco tax and health care fund.

F. The director of the department of health services may expend monies from the medically needy account of the tobacco tax and health care fund transferred pursuant to section 36‑2921, subsection A, paragraph 6 for the purpose of funding evaluations of the grant program established by this section. The director shall ensure that any evaluation is structured to meet at least the base requirements prescribed in section 36‑2907.07.

G. The director of the department of health services may expend monies from the medically needy account of the tobacco tax and health care fund transferred pursuant to section 36‑2921, subsection A, paragraph 6 for administrative costs associated with the establishment or the operation of the grant program. The amount withdrawn annually for grant program administrative costs shall not exceed two per cent percent of the sum of any transfers of monies made pursuant to section 36‑2921 and any appropriation of monies for the specified purpose of supporting the nonentitlement basic children's medical services program established in this section.

H. The department of health services shall directly administer the grant program and all contracts established pursuant to this section. The director of the department of health services shall publish rules pursuant to title 41, chapter 6 for the grant program before the issuance of the initial grant program request for proposals. The director of the department of health services and the contractor shall sign a contract before the transmission of any tobacco tax and health care fund monies to the contractor.

I. In administering the basic children's medical services program and awarding contracts established pursuant to this section, the director of the department of health services shall seek to efficiently and effectively coordinate the delivery of services provided through the program with services provided through other programs, including those established pursuant to chapter 2, article 3 of this title and sections 36‑2907.05, and 36‑2907.06 and 36‑2912. The director shall seek to ensure that this coordination results in providing for either or both the coverage of additional children or the provision of additional medically necessary services to children instead of supplanting existing service opportunities or duplicating existing programs with no attendant increase in coverage.

J. For the purposes of this section, "grant program" refers to the basic children's medical services program. END_STATUTE

Sec. 11. Title 36, chapter 29, article 1, Arizona Revised Statutes, is amended by adding section 36-2912, to read:

START_STATUTE36-2912. Children's rehabilitative services program; definition

A. The administration shall:

1. Establish a children's rehabilitative services program for children who have a chronic illness or physical disability and shall develop, implement, monitor, supervise, control and establish policies for that program.

2. Develop and implement policies to determine medical eligibility for the children's rehabilitative services program.

3. Develop and implement all rules and policies for the operation of the children's rehabilitative services program.

4. Establish and administer a program of service for children and for individuals determined to be eligible before they reach twenty-one years of age who have a chronic illness or physical disability or who are suffering from a condition that leads to a chronic illness or a physical disability and are in active treatment.� The program shall provide for:

(a) Medical, surgical, corrective and other services and care.

(b) The receipt and expenditure of monies made available to the administration for services to children who have a chronic illness or physical disability by the federal government, this state or its political subdivisions or from other sources, excluding monies received from parents or guardians for the care of children.

(d) Establishing and maintaining safeguards relating to the confidentiality of medical records.

(e) The acceptance and use of federal monies for children's rehabilitative services at the discretion of the administration and subject to any limitations imposed by annual state appropriations.

(f) Any other activities the administration determines are necessary for the effective operation of the program.

B. Pursuant to the requirements of section 36-2903, the director shall prepare and issue a public request for proposals, including a proposed contract format, at least once every five years to contract for the care and treatment of children who have a chronic illness or physical disability.

C. The total amount of state monies that the administration may spend in any fiscal year for children's rehabilitative services may not exceed the amount appropriated or authorized by section 35-173 for that purpose.� This subsection does not impose a duty on an officer, agent or employee of this state to discharge a responsibility or to create any right in a person or group if the discharge or right would require an expenditure of state monies in excess of the expenditure authorized by legislative appropriation for that specific purpose.

D. Pursuant to the requirements of section 36-2923, the administration shall coordinate benefits provided pursuant to this section so that any costs payable by the administration are costs avoided or recovered from any available provider of first-party health insurance benefits. The administration shall act as payor of last resort unless specifically required by federal law.

E. For the purposes of this section, "children who have a chronic illness or physical disability" means children who are medically eligible for the children's rehabilitative services program and who require covered medical, surgical or therapeutic services for a covered condition that is medically disabling or potentially disabling, as prescribed by the administration. END_STATUTE

Sec. 12. Section 43-1088, Arizona Revised Statutes, is amended to read:

START_STATUTE43-1088. Credit for contribution to qualifying charitable organizations; definitions

A. Except as provided in subsection B of this section, a credit is allowed against the taxes imposed by this title for voluntary cash contributions by the taxpayer or on the taxpayer's behalf pursuant to section 43‑401, subsection G during the taxable year to a qualifying charitable organization not to exceed:

1. Two hundred dollars in any taxable year for a single individual or a head of household.

2. Four hundred dollars in any taxable year for a married couple filing a joint return.

B. If the voluntary cash contribution by the taxpayer or on the taxpayer's behalf pursuant to section 43‑401, subsection G is to a qualifying foster care charitable organization, the credit shall not exceed:

1. Four hundred dollars in any taxable year for a single individual or a head of household.

2. Eight hundred dollars in any taxable year for a married couple filing a joint return.

C. 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 for a joint return.

D. If the allowable tax credit exceeds the taxes otherwise due under this title on the claimant's income, or if there are no taxes due under this title, the taxpayer may carry forward the amount of the claim not used to offset the taxes under this title for not more than five consecutive taxable years' income tax liability.

E. The credit allowed by this section is in lieu of a deduction pursuant to section 170 of the internal revenue code and taken for state tax purposes.

F. Taxpayers taking a credit authorized by this section shall provide the name of the qualifying charitable organization and the amount of the contribution to the department of revenue on forms provided by the department.

G. A qualifying charitable organization shall provide the department of revenue with a written certification that it meets all criteria to be considered a qualifying charitable organization. The organization shall also notify the department of any changes that may affect the qualifications under this section.

H. The charitable organization's written certification must be signed by an officer of the organization under penalty of perjury.� The written certification must include the following:

1. Verification of the organization's status under section 501(c)(3) of the internal revenue code or verification that the organization is a designated community action agency that receives community services block grant program monies pursuant to 42 United States Code section 9901.

2. Financial data indicating the organization's budget for the organization's prior operating year and the amount of that budget spent on services to residents of this state who either:

(a) Receive temporary assistance for needy families benefits.

(b) Are low income residents of this state.

3. A statement that the organization plans to continue spending at least fifty per cent percent of its budget on services to residents of this state who receive temporary assistance for needy families benefits, who are low‑income residents of this state or who are chronically ill or children with physical disabilities children who have a chronic illness or physical disability.

4. A statement that the organization does not provide, pay for or provide coverage of abortions and does not financially support any other entity that provides, pays for or provides coverage of abortions.

I. The department shall review each written certification and determine whether the organization meets all the criteria to be considered a qualifying charitable organization and notify the organization of its determination. The department may also periodically request recertification from the organization. The department shall compile and make available to the public a list of the qualifying charitable organizations.

J. For the purposes of this section:

1. "Chronically ill or children with physical disabilities Children who have a chronic illness or physical disability" has the same meaning prescribed in section 36‑260.

2. "Low‑income residents" means persons whose household income is less than one hundred fifty per cent percent of the federal poverty level.

3. "Qualifying charitable organization" means a charitable organization that is exempt from federal income taxation under section 501(c)(3) of the internal revenue code or is a designated community action agency that receives community services block grant program monies pursuant to 42 United States Code section 9901. The organization must spend at least fifty per cent percent of its budget on services to residents of this state who receive temporary assistance for needy families benefits or low‑income residents of this state and their households or to chronically ill or children with physical disabilities children who have a chronic illness or physical disability who are residents of this state.� Taxpayers choosing to make donations through an umbrella charitable organization that collects donations on behalf of member charities shall designate that the donation be directed to a member charitable organization that would qualify under this section on a stand‑alone basis. Qualifying charitable organization does not include any entity that provides, pays for or provides coverage of abortions or that financially supports any other entity that provides, pays for or provides coverage of abortions.

4. "Qualifying foster care charitable organization" means a qualifying charitable organization that each operating year provides services to at least two hundred foster children in this state and spends at least fifty per cent percent of its budget on services to foster children in this state. For the purposes of this paragraph, "foster children" has the same meaning prescribed in section 8‑501.

5. "Services" means cash assistance, medical care, child care, food, clothing, shelter, job placement and job training services or any other assistance that is reasonably necessary to meet immediate basic needs and that is provided and used in this state. END_STATUTE