child care; assistance; eligibility

SB1727 - 572R - I Ver

REFERENCE TITLE:
child care; assistance; eligibility

State of Arizona

Senate

Fifty-seventh Legislature

Second Regular Session

2026

SB 1727

Introduced by

Senator
Epstein

AN
ACT

amending section 46-803, Arizona
Revised Statutes; relating to child care services.

(TEXT OF BILL BEGINS ON NEXT PAGE)

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

Section 1. Section 46-803, Arizona Revised
Statutes, is amended to read:

START_STATUTE
46-803.

Eligibility for child care assistance

A. The department shall provide child care
assistance to eligible families who are attempting to achieve independence from
the cash assistance program and who need child care assistance in support of
and as specified in their personal responsibility agreement pursuant to
chapters 1 and 2 of this title.

B. The department shall provide child care
assistance to eligible families who are transitioning off cash assistance due
to increased earnings or child support income in order to accept or maintain
employment. Eligible families must request this assistance within
six months after the cash assistance case closure.� Child care assistance may
be provided for up to twenty-four months after the case closure and shall
cease after a time period specified in rule by the department once the family
income exceeds one hundred sixty-five percent of the federal poverty
level but remains below eighty-five percent of the state median
income. If the family income exceeds eighty-five percent of
the state median income, child care assistance shall cease on notification by
the department.

C. The department shall provide child care
assistance to eligible families who are diverted from cash assistance pursuant
to section 46-298 in order to obtain or maintain
employment. Child care assistance may be provided for up to twenty-four
months after the case closure and shall cease after a time period specified in
rule by the department once the family income exceeds one hundred sixty-five
percent of the federal poverty level but remains below eighty-five
percent of the state median income. If the family income exceeds
eighty-five percent of the state median income, child care assistance
shall cease on notification by the department.

D. The department may provide child care assistance
to support eligible families with incomes of one hundred sixty-five
percent or less of the federal poverty level at the time of application to
accept or maintain employment. Child care assistance shall cease
after a time period specified in rule by the department once the family income
exceeds one hundred sixty-five percent of the federal poverty level but
remains below eighty-five percent of the state median
income. If the family income exceeds eighty-five percent of
the state median income, child care assistance shall cease on notification by
the department. Priority for this child care assistance shall be
given to families with incomes of one hundred percent or less of the federal
poverty level.

E. The department may provide child care assistance
to families referred by the department of child safety and to children in
foster care pursuant to title 8, chapter 4 to support child protection.

F. The department may provide child care assistance
to special circumstance families whose incomes are one hundred sixty-five
percent or less of the federal poverty level at the time of application and who
are unable to provide child care for a portion of a twenty-four-hour
day due to a crisis situation of domestic violence or homelessness, or a
physical, mental, emotional or medical condition, participation in a drug
treatment or drug rehabilitation program or court-ordered community
restitution.� Child care assistance shall cease after a time period specified
in rule by the department once the family income exceeds one hundred sixty-five
percent of the federal poverty level but remains below eighty-five
percent of the state median income. If the family income exceeds
eighty-five percent of the state median income, child care assistance
shall cease on notification by the department. Priority for this
child care assistance shall be given to families with incomes of one hundred
percent or less of the federal poverty level.

G. Notwithstanding any other provision of this
section, the department may reduce maximum income eligibility levels for child
care assistance in order to manage within appropriated and available monies.�
The department shall notify the joint legislative budget committee of any
change in maximum income eligibility levels for child care assistance within
fifteen days after implementing the change.

H. In lieu of the employment activity required in
subsection B, C or D of this section, the department may allow eligible
families with teenaged custodial parents under twenty years of age to complete
a high school diploma or its equivalent or engage in remedial education
activities reasonably related to employment goals.

I. The department may provide child care assistance
for department-approved education and training activities if the eligible
parent, legal guardian or caretaker relative is working at least a monthly
average of twenty hours per week and the education and training are reasonably
related to employment goals. The eligible parent, legal guardian or
caretaker relative must demonstrate satisfactory progress in the education or
training activity.

J. The department may waive a portion of or the
entire work requirement prescribed in subsection I of this section
to continue to provide child care assistance to

for

a person who is
receiving full-time child care
assistance and who is
enrolled
full

at
least half
time in an accredited educational institution, remedial
education activity or employment training program that will lead to a
vocational, technical or trade certification or an associate degree or
bachelor's degree and the education or training program is reasonably related
to employment goals. The person shall confirm the person's intent to
obtain education or training that will lead to employment in an occupation that
has starting wages that are sufficient to eliminate the need for public
assistance for the person once employed.� The department shall review the
education or training program that is being pursued by the person receiving
child care assistance to verify that the education or training program is
related to employment goals. The person must demonstrate
satisfactory progress to the department in the education or training activity.

K. The department shall establish waiting lists for
child care assistance and prioritize child care assistance for different
eligibility categories in order to manage within appropriated and available
monies.� Priority of children on the waiting list shall start with those
families at one hundred percent of the federal poverty level and continue with
each successive ten percent increase in the federal poverty level until the
maximum allowable federal poverty level of one hundred sixty-five
percent.� Priority shall be given regardless of time spent on the waiting list.

L. The department shall establish criteria for
denying, reducing or terminating child care assistance that include:

1. Whether there is a parent, legal guardian or
caretaker relative available to care for the child.

2. Financial or programmatic eligibility changes or
ineligibility.

3. Failure to cooperate with the requirements of the
department to determine or redetermine eligibility.

4. Hours of child care need that fall within the
child's compulsory academic school hours.

5. Reasonably accessible and available publicly
funded early childhood education programs.

6. Whether an otherwise eligible family has been
sanctioned and cash assistance has been terminated pursuant to chapter 2 of
this title.

7. Other circumstances of a similar nature.

8. Whether sufficient monies exist for the
assistance.

M. Families receiving child care assistance under
subsection D or F of this section are also subject to the following
requirements for that child care assistance:

1. Each child is limited to not more than sixty
cumulative months of child care assistance.� The department may provide an
extension if the family can prove that the family is making efforts to improve
skills and move towards self-sufficiency.

2. Families are limited to not more than six
children receiving child care assistance.

3. Copayments shall be imposed for all children
receiving child care assistance.� Copayments for each child may be higher for
the first child in child care than for additional children in child care.

N. The department shall review each case not more
than once a year to evaluate eligibility for child care assistance.

O. The department shall report on December 31 and
June 30 of each year to the joint legislative budget committee the total number
of families who applied for child care assistance and the total number of
families who were denied assistance under this section because the parents,
legal guardians or caretaker relatives who applied for assistance were not
citizens or legal residents of the United States or were not otherwise lawfully
present in the United States.

P. This section shall be enforced without regard to
race, religion, gender, ethnicity or national origin.

Q. The department shall refer all child care subsidy
recipients to child support enforcement and to local workforce services and
provide information on the earned income tax credit.
END_STATUTE