2005 Arizona Revised Statutes - Revised Statutes §36-557  Purchase of community developmental disabilities services; application; contracts; limitation

A. The department may use state and federal funds appropriated or otherwise available to it for this purpose to assist in the establishment and maintenance of local developmental disability services by public or private nonprofit or profit agencies. The funds may be expended as professional fees for service, in contracts for advancement or reimbursement or in another appropriate manner and may be used for any purpose necessary to the provision of local developmental disability services. They may not be used for departmental salaries, care of developmentally disabled persons by the department or any other purpose within the department itself, but they may be used for consultation to the department in the interest of local programs.

B. A local public or private nonprofit or profit agency providing or intending to provide community developmental disability services and desiring to contract with the department for the furnishing of such services shall submit a program plan and budget to the department on the forms and in the manner required by the department. If the program meets departmental standards and is consistent with the state plan of the department and the individualized service program plan of the client, the department, notwithstanding the provisions of title 41, chapter 23, relating to procurement and including services pursuant to section 36-2943, may contract with that agency for such services as are required and upon such terms and conditions as the department shall require. The contracts shall provide that the provider of services shall be subject to a continuing program evaluation by the department through progress reports, expenditure reports, program audits or other appropriate evaluation techniques and to assure that the provider of service is in continued compliance with the terms of the contract and the department's community developmental disability service standards and requirements.

C. Contracts between the department and a school district or districts shall be subject to approval by the department of education.

D. This article does not make the department or the state responsible for funding programs beyond the limits of legislative appropriation for the programs. This article does not require a provider of services to provide unreimbursed services to the department or its clients.

E. Contracts to provide community developmental disability services shall require that:

1. The contractor is obligated to operate a program or service in strict accordance with the standards adopted for such program or service by the department.

2. If state funding is provided for a particular program the contractor, to the extent of positions available which are being purchased by the department, shall provide services to a developmentally disabled client who has been evaluated and placed by the department.

3. All contractors must carry liability insurance in amounts approved by the risk management section of the department of administration and file proof of such insurance with the risk management section. The director may waive such requirement on a case by case basis upon a finding that insurance for such program or service is not practicably available at affordable rates and that it is necessary that the program or service be provided by the contractor.

4. All clients enrolled in programs shall have all the same specified rights as they would have if enrolled in a program operated directly by the state.

5. Except for emergency placement pursuant to section 36-560, subsection N, payment shall not be made based on program services provided to a client if a placement evaluation has not been made, and no individual program has been prepared and when, upon such placement evaluation, no recommendation has been made to enroll the client in the particular program service.

This article does not require a contracted agency to provide unreimbursed services to the department or a client of the department.

F. Contracts for the purchase of residential care services other than those community residential settings licensed pursuant to this chapter shall, in addition to other general requirements applicable to purchase of care contractors:

1. Provide for mandatory inspection by the department every two years for facilities other than group homes.

2. Provide for mandatory monitoring by the department for health, safety, contractual and programmatic standards at least every six months.

3. Provide for mandatory investigation by the department in response to complaints within ten working days, except that in those instances which pose a danger to the client, the department shall conduct the investigation immediately. Health and safety complaints related to group homes shall be referred to the department of health services on receipt. The department of health services shall share all incident reports related to health and safety with the division of developmental disabilities.

4. Except for group homes licensed by the department of health services, specify the health and safety and sanitation codes and other codes or standards applicable to the facility or to the operation of the facility by the contractor other than group homes.

5. Provide for mandatory periodic reports to be filed by the provider contractor with the department with respect to the operation of the facility.

6. Provide that the facility and the books and records of the facility and of the provider are subject to inspection at any time by employees of the department or designees of the department.

7. Provide that parents and guardians of developmentally disabled persons residing at the facility, members of the developmental disabilities advisory council, and members of other recognized and ongoing advocacy groups for developmentally disabled persons may inspect the facility at reasonable times.

G. Contracts for purchase of residential care services shall require a community residential setting, as defined in section 36-551, to be licensed pursuant to this chapter other than group homes licensed by the department of health services.

H. The division shall ensure that all contracted developmental disabilities service providers rendering services pursuant to this chapter are reimbursed in accordance with title XIX of the social security act.

I. Contracts for client services issued by the department shall include language outlining the provisions for a grievance and appeal procedure. The director shall provide notice to providers not less than thirty days prior to the issuance of an amendment to a qualified vendor agreement. Beginning September 1, 2006, the decision of the director regarding qualified vendor agreement amendments may be appealed pursuant to title 41, chapter 6, article 10. The grievance process applicable to these contracts shall comply with title XIX requirements.

J. As a condition of contracts with any developmental disabilities service provider, the director shall require terms that conform with state and federal laws, title XIX statutes and regulations and quality standards. The director shall further require contract terms that ensure performance by the provider of the provisions of each contract executed pursuant to this article.

K. The division shall establish a rate structure that ensures an equitable funding basis for private nonprofit or for profit agencies for services pursuant to subsection B of this section and section 36-2943. In each fiscal year, the division shall review and adjust the rate structure based on the provisions of section 36-2959. A rate book shall be published and updated by the division to announce the rate structure that shall be incorporated by reference in contracts for client services.

L. The division shall disclose to a service provider in the individual program plan defined by section 36-551 any historical and behavioral information necessary for the provider to be able to anticipate the client's future behaviors and needs.