SB1855 • 2026

human services; 2026-2027.

SB1855 - human services; 2026-2027.

Budget Children Education Housing

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: David C. Farnsworth
Last action: 2026-06-11
Official status: Senate committee of the whole
Effective date: Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

human services; 2026-2027.

SB1855 - 572R - Senate Fact Sheet Assigned to ATT�� AS PASSED BY COW ARIZONA STATE SENATE Fifty-Seventh Legislature, Second Regular Session AMENDED FACT SHEET FOR S.b.

What This Bill Does

SB1855 - 572R - Senate Fact Sheet Assigned to ATT�� AS PASSED BY COW ARIZONA STATE SENATE Fifty-Seventh Legislature, Second Regular Session AMENDED FACT SHEET FOR S.b.
1855 human services; 2026-2027.
Purpose Makes statutory and session law changes relating to human services necessary to implement the FY 2027 state budget.
Background The Arizona Constitution prohibits substantive law from being included in the general appropriations, capital outlay appropriations and supplemental appropriations bills.

Limits and Unknowns

This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

SENATE - (Adopted)

Adopted

Plain English: Amendment explanation prepared by Samuel Rosenberg 06/11/2026 Bill Number: S.B.

Amendment explanation prepared by Samuel Rosenberg 06/11/2026 Bill Number: S.B.
1855 Farnsworth Floor Amendment Reference to: printed bill Amendment drafted by: Leg.
Council F LOOR AMENDMENT EXPLANATION 1.
Extends the increase of relocation expenses that a tenant may receive from the Mobile Home Relocation Fund and expansion of permissible use s of relocation expenses to apply to all tenants eligible to receive relocation expenses, rather than only tenants who are eligible due to an increase in rent.

Bill History

2026-06-11 Senate
Senate committee of the whole
2026-06-10 Senate
Senate minority caucus
2026-06-10 Senate
Senate majority caucus
2026-06-10 Senate
Senate second read
2026-06-09 Senate
Senate Rules: PFC
2026-06-09 Senate
Senate Appropriations, Transportation and Technology: DP
2026-06-09 Senate
Senate first read

Official Summary Text

SB1855 - 572R - Senate Fact Sheet

Assigned to
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PASSED BY COW

ARIZONA STATE SENATE

Fifty-Seventh
Legislature, Second Regular Session

AMENDED

FACT SHEET FOR
S.b. 1855

human services;
2026-2027.

Purpose

Makes statutory and session law changes relating to human services
necessary to implement the FY 2027 state budget.

Background

The Arizona Constitution prohibits substantive law from being included in
the general appropriations, capital outlay appropriations and supplemental
appropriations bills. However, it is often necessary to make statutory and
session law changes to effectuate the budget. Thus, separate bills called
budget reconciliation bills (BRBs) are introduced to enact these provisions.
Because BRBs contain substantive law changes, the Arizona Constitution provides
that they become effective on the general effective date, unless an emergency
clause is enacted.

S.B. 1855 contains the budget reconciliation provisions for changes
relating to human services.

Provisions

Supplemental
Nutrition Assistance Program (SNAP) Fund

Establishes
the SNAP Fund consisting of monies collected by the Department of Economic
Security (DES) from federal deposits under SNAP.

Specifies
that monies in the SNAP Fund are continuously appropriated.

Requires
DES to deposit federal monies received for the federal administrative share
under SNAP in the SNAP Fund before expenditure.

Repeals
the SNAP Fund on July 1, 2027.

SNAP
Eligibility and Enrollment

Requires
DES, when determining or evaluating SNAP eligibility, to:

review its own data as well as information provided by the Arizona State
Lottery Commission and the Department of Gaming to identify members of eligible
households who have substantial lottery or gaming winnings, including online
gambling winnings, and incorporate that information into eligibility
determinations;

review information provided by the Department of Health Services and the
Department of Corrections, Rehabilitation and Reentry that identifies
individuals who have had a change in circumstances that may affect SNAP
eligibility; and

review DES's own information, as the state agency that collects wage
information and administers unemployment insurance benefits, to verify
eligibility for and the amount of SNAP benefits due to eligible households.

Requires
DES, to assess a recipient's continued eligibility for SNAP, to review:

earned income information, death master file information, supplemental
security income information, beneficiary records, earnings information and
pension information that is maintained by the U.S. Social Security
Administration;

income and employment information maintained in the National Directory
of New Hires database and child support enforcement data maintained by the U.S.
Department of Health and Human Services; and

national fleeing felon information maintained by the Federal Bureau of
Investigation.

Requires
DES, if it receives reliable information indicating an individual enrolled in
SNAP has a change in circumstances that may affect that individual's eligibility,
to review the individual's case.

Prohibits
DES from relying solely on self-attestation to confirm residency for SNAP
eligibility, except in unusual circumstances set forth in federal law.

Repeals
the outlined requirements relating to the review of SNAP eligibility and
enrollment on July 1, 2027.

SNAP
Reporting Requirements

10.

Requires DES to report, to
the President of the Senate, the Speaker of the House of Representatives
(House) and the Joint Legislative Budget Committee (JLBC):

on a monthly basis, the number of SNAP program cases, number of program
participants and total benefits paid to persons who are categorically eligible
for SNAP assistance; and

within 30 days after submission of the final month of quality control
reviews to the U.S. Department of Agriculture Food and Nutrition Service, an
estimate of the payment error rate for the completed FY 2026 and the number and
extent of errors attributable to SNAP recipients who are categorically eligible
for SNAP.

11.

Repeals the SNAP payment
reporting requirement on July 1, 2027.

12.

Requires DES, by June 30,
2027, to submit a report to the President of the Senate, the Speaker of the
House and JLBC detailing DES's efforts to improve the quality and timeliness of
eligibility determinations for SNAP, including specific goals for, actions
taken in and barriers faced during the reporting period.

Electronic
Benefit Transfer (EBT) Cards Spending Report

13.

Requires DES to include, in
the prescribed spending report of SNAP and Temporary Assistance for Needy
Families (TANF) benefit, the:

number of SNAP cases that were investigated for intentional program
violations or fraud;

number of SNAP cases that were referred to the Attorney General's Office
for prosecution;

amounts of improper payments and expenditures;

amount of monies recovered; and

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

14.

Repeals
the additional EBT cards spending report requirements
on
July 1, 2027.

Out
of School Time Grant Program (Grant Program)

15.

Expands Grant Program eligibility
to include school-age children between the ages of 5 and 18 years old who
require out-of-school care, as specified, rather than children between 5 and 12
years old who require childcare.

16.

Requires the Grant Program
to reduce the cost of out-of-school time care or expand out-of-school time care
at no cost to participating families, rather than reduce the cost of care by at
least two-thirds.

17.

Requires the DES annual report
on the Grant Program to include the number of children newly enrolled in
out-of-school time care programs, rather than the number of new and sustained
child care slots.

18.

Expands the definition of
eligible
grantee
, in relation to the Grant Program, to include a nonprofit
organization, public school and public or private child care provider that:

operates primarily during after school, before school or in the summer
or at times when school is not normally in session;

serves only eligible pupils; and

is organized to promote expanded childhood learning, enrichment, child
and youth development or educational, recreational or character-building
activities.

19.

Modifies the definition of
eligible
pupils
, for the purposes of the Grant Program.

20.

Allows Grant Program monies
to be used to support partnerships between school districts and nonprofit
organizations with a history of offering out-of-school time care services to
eligible pupils for the purposes of capital expansion, facility improvements,
construction, renovation and related capital expenditures on public buildings
with the intent to expand out-of-school time care opportunities for rural
communities.

21.

Repeals the ability for the
Grant Program to be used to support outlined partnerships between school
districts and nonprofit organizations on July 1, 2027.

Speech
and Audition Services Contracts

22.

Requires DES, beginning July
1, 2027, and subject to available appropriations, to contract with listening
and spoken language providers in Arizona 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.

23.

Requires each contracted
listening and spoken language provider to ensure that the provided services are
administered or overseen by a certified auditory verbal educator or therapist
in a natural environment or a clinical, educational or virtual setting.

24.

Requires DES to refer
eligible families that have infants and toddlers who are deaf or hard of
hearing to at least:

contracted listening and spoken language providers; and

the Arizona State Schools for the Deaf and the Blind (ASDB).

25.

Allows DES to adopt rules,
policies and procedures necessary to implement the provision of speech and
auditory services.

26.

Allows DES to use up to 10
percent of monies appropriated for contracts with listening and spoken language
providers for administrative costs.

Supplemental
Early Childhood Listening and Spoken Language Services

27.

Requires ASDB, by November
1, 2026, to transfer existing contracts for supplemental early childhood
listening and spoken language services to DES.

28.

Requires ASDB and DES to
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.

29.

Requires ASDB to transfer
the remaining balance of the FY 2027 appropriation for supplemental early
childhood listening and spoken language services, after all invoices have been
paid to contractors, to DES.

30.

Declares that DES succeeds
to the authority, powers, duties and responsibilities of ASDB relating to
speech and audition services.

31.

Transfers, by November 1,
2026, all contracts in process of ASDB relating to supplemental early childhood
listening and spoken language services to DES.

32.

Specifies that all
transferred contracts retain the same status with DES.

TANF

33.

Continues to require DES in
FY 2027 to screen and test each adult recipient who:

is eligible for TANF cash benefits; and

DES has reasonable cause to believe engages in the illegal use of
controlled substances.

34.

Continues to render any TANF
recipient who tests positive for the use of a controlled substance that was not
prescribed for the recipient by a licensed health care provider as ineligible
to receive TANF benefits for a period of one year.

Miscellaneous

35.

Increases the relocation
expenses an eligible tenant may receive from the Mobile Home Relocation Fund
from $12,500 to $22,500 for a single-section mobile home and from $20,000 to
$30,000 for a multisection mobile home.

36.

Includes the costs of taking
down, moving and setting up a mobile home in a new location as compensable
moving expenses if the home is relocated within Arizona, rather than within a
100-mile radius of the vacated mobile home park.

37.

Extends the delayed repeal
date of the Military Family Relief Fund and the Military Family Relief Fund Tax
Credit from December 31, 2026, to December 31, 2031.

38.

Requires monies from the
Housing Trust Fund, for the first four months of each fiscal year, to first be awarded
for state matching monies for various federally funded programs.

39.

Defines terms.

40.

Makes technical and
conforming changes.

41.

Becomes effective on the
general effective date.

Amendments
Adopted by Committee of the Whole

Extends
the increase of relocation expenses that a tenant may receive from the Mobile
Home Relocation Fund and expansion of permissible uses of relocation expenses
to apply to all tenants eligible to receive relocation expenses, rather than
only tenants who are eligible due to an increase in rent.

Allows,
until July 1, 2027, monies allocated from the Grant Program to be used to
support partnerships between school districts and nonprofit organizations with
a history of offering out-of-school time care services to eligible pupils, as
specified.

Makes
technical and conforming changes.

Senate Action

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Prepared by Senate Research

June 11, 2026

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Current Bill Text

Read the full stored bill text

SB1855 - 572R - S Ver

Senate Engrossed

human services;
2026-2027.

State of Arizona

Senate

Fifty-seventh Legislature

Second Regular Session

2026

SENATE BILL 1855

AN
ACT

Amending sections 33-1476.01, 33-1476.04,
33-1476.05, 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 33-1476.01, Arizona Revised
Statutes, is amended to read:

START_STATUTE
33-1476.01.

Change in use; notices; compensation for moving expenses; payments
by the landlord; applicability

A. The landlord shall notify the director and all
tenants in writing of a change in use at least one hundred eighty days before
the change in use. The landlord may not increase rent within ninety
days before giving notice of a change in use.

B. The landlord shall inform all tenants in writing
about the mobile home relocation fund established by section 33-1476.02.

C. If a tenant is required to move due to a change
in use or redevelopment of the mobile home park, the tenant may do any of the
following:

1. Collect payment from the
mobile
home relocation
fund for the lesser of the actual moving expenses of
relocating the mobile home to a new location that is within
a one
hundred-mile radius of the vacated mobile home park

this
state
or the maximum of
$12,500

$22,500

for a
single section

single-section

mobile home or
$20,000

$30,000
for
a multisection mobile home. Moving expenses include the cost of
stabilizing, taking down, moving and setting up the mobile home in the new
location.

2. 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 abandonment payment pursuant to this paragraph,
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 paragraph, the landlord is
exempt from making the payments to the fund prescribed in subsection D of this
section.

3. If a mobile home is relocated to a location
outside of the vacated mobile home park and, in the sole judgment of the
director, the mobile home was ground set in the mobile home park from which it
was removed, the tenant may collect additional monies not to exceed $2,500 for
the incremental costs of removing a ground-set mobile home. These
monies are in addition to any monies provided pursuant to paragraph 1 of this
subsection.

D. Except as provided in subsection C, paragraph 2
and subsection F of this section and section 33-1476.04, subsection D, if
there is a change in use the landlord shall pay $500 for each
single
section

single-section
mobile home and $800
for each multisection mobile home relocated to the fund for each tenant filing
for relocation assistance with the director.

E. If a change in use occurs before the time stated
in the statements of policy and the landlord does not comply with subsection A
of this section
,

and with
section 33-1436
and section 33-1476, subsection H, the landlord shall pay to the fund in
addition to the monies prescribed in subsection D of this section:

1. $500 for each mobile home space occupied by a
single-section mobile home.

2. $800 for each mobile home space occupied by a
multisection mobile home.

F. The landlord is not required to make the payments
prescribed in subsections D and E of this section for moving mobile homes owned
by the landlord or for moving a mobile home under a contract with the tenant if
the tenant does not file for relocation assistance with the director.

G. If a change in use occurs within two hundred
seventy days after relocations under section 33-1476.04, the landlord
shall pay to the fund in addition to the monies prescribed in subsection D of
this section:

1. $500 for each mobile home space occupied by a
single section mobile home.

2. $800 for each mobile home space occupied by a
multisection mobile home.

H. The tenant shall submit a contract for relocation
of a mobile home for approval to the director within sixty days after the
relocation to be eligible for payment of relocation expenses. The
director must approve or disapprove the contract within fifteen days after
receipt of the contract, or the contract is deemed to be approved.

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

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

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

J. 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.

K. If this state or a political subdivision of this
state exercises eminent domain and the mobile home park is sold or a sale is
made to this state or a political subdivision of this state that intends to
exercise eminent domain, the state or political subdivision is responsible for
the relocation costs of the tenants.

L. If a tenant is vacating the premises and has
informed the landlord or manager before the change-in-use notice has been
given, the tenant is not eligible for compensation under this section.

M. A person who purchases a mobile home already
situated in a park or moves a mobile home into a park in which a change-in-use
notice has been given is not eligible for compensation under this section.

N. After delivery of the one hundred eighty-day
notice prescribed by subsection A of this section, the landlord and the tenants
shall inform any prospective buyer or tenant that closure of the park is
pending.

O. This section does not apply to a change in use if
the landlord moves a tenant to another space in the mobile home park at the
landlord's expense.
END_STATUTE

Sec. 2. Section 33-1476.04, Arizona Revised
Statutes, is amended to read:

START_STATUTE
33-1476.04.

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. 3. Section 33-1476.05, Arizona Revised Statutes, is amended to read:

START_STATUTE
33-1476.05.

Relocations due to change in age-restricted community use;
payment from mobile home relocation fund; applicability

A. The landlord shall notify the director and all
tenants in writing of a change in use at least sixty days before a change in
the age-restricted community to an all-age community use as defined by
the housing for older persons act of 1995.

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

1. The tenant resides in a mobile home or
manufactured home that is owned by the tenant and that is located in an age-restricted
mobile home park.

2. The landlord implements a change from an age-restricted
community to an all-age community as defined by the housing for older persons
act of 1995.

C. A landlord who changes a mobile home park
designation from an age-restricted community shall give written notice of the
applicability of this section to all affected tenants.

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

1. Within one hundred eighty days after the
effective date of notification of the change in the age-restricted community's
use, the tenant shall submit a contract for relocation of the mobile
home

or manufactured home to the
director for approval and to the landlord.

2. After notice of approval by the director for the
payment of relocation expenses, the tenant shall have a fully signed contract
with a licensed installer or contractor to move the mobile
home

or manufactured 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.

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 another age-restricted community within
a one hundred-mile radius of the vacated mobile home park

this state
.

E. The landlord shall not be responsible for making
any payment into the
mobile home relocation
fund for any
mobile or manufactured home moved pursuant to this section.
END_STATUTE

Sec. 4. Section 41-608.04, Arizona Revised
Statutes, is amended to read:

START_STATUTE
41-608.04.

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:

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

START_STATUTE
41-1970.

Out-of-school time grant program; fund; report; definitions

A. The
out
of school

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

START_STATUTE
41-2023.

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

START_STATUTE
41-3955.

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

START_STATUTE
43-1086.

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. 9. 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. 10.
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. 11.
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. 12.
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. 13.
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. 14.
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. 15.
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. 16.
Out-of-school
time grant program; rural communities; use of monies; delayed repeal

A. Grant monies allocated
pursuant to section 41-1970, subsection C, paragraph 5, Arizona Revised
Statutes, may be used to support partnerships between school districts and
nonprofit organizations with a history of offering out-of-school
time care services to eligible pupils for the purposes of capital expansion,
facility improvements, construction, renovation and related capital
expenditures on public buildings with the intent to expand out-of-school
time care opportunities for rural communities.

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

Sec. 17.
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. 18.
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.