DCS; independent oversight committee; sunset

HB2860 - 572R - I Ver

REFERENCE TITLE:
DCS; independent oversight committee; sunset

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HB 2860

Introduced by

Representative
Blackman

AN
ACT

Amending title 8, arizona revised
statutes, by adding chapter 7; amending title 41, chapter 27, article 2,
arizona revised statutes, by adding section 41-3036.01; appropriating
monies; relating to the department of child safety.

(TEXT OF BILL BEGINS ON NEXT PAGE)

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_STATUTE
8-931.

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_STATUTE
8-932.

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.

(
c
) Department
response times to child welfare allegations.

(
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.

(
c
) Safety
planning.

(
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.

(
c
) dEPARTMENT
VENDOR PERFORMANCE AND SYSTEMIC SERVICE GAPS.

(
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_STATUTE
8-933.

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_STATUTE
41-3036.01.

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.