Ariz. Admin. Code § R21-7-104 - Licensing Requirements

A. A person who intends to operate a Child Placing Agency, residential group care facility, or shelter care facility shall apply for a Child Welfare Agency license.

B. A Child Welfare Agency shall meet the requirements of this Chapter.

C. Fingerprints and Arizona Level One fingerprint clearance card:

1. The licensee shall ensure all Child Welfare Agency staff are fingerprinted and comply with the requirements of A.R.S. § 46-141 and provide evidence of a valid Arizona Level One fingerprint clearance card.

2. The licensee shall provide evidence that anyone listed in R21-7-107(B)(1)(b) has a valid Arizona Level One fingerprint clearance card.

D. Central Registry Check:

1. The following individuals shall obtain a Central Registry Check:

a. Individuals who apply for a Child Welfare Agency license;

b. Staff who work in a residential group care facility in accordance with Article 2 of this Chapter, on condition that a Central Registry Check is requested prior to employment. Until the Central Registry Check is completed, staff shall not perform essential functions of their job without direct observation from their supervisor or designee;

c. Staff who work with a Child Placing Agency in positions that provide direct services to children; and

d. Member of the Governing body of a Child Welfare Agency.

2. For any staff whose primary residence is at the facility or on the premises under Article 2 of this Chapter and any adult residing with the staff in the facility or on the premises shall obtain a Central Registry Check prior to residing at the facility or on the premises.

3. The licensee shall suspend any staff who has a disqualifying act on the Central Registry pending the outcome of the process detailed in this Article.

4. For any staff who has a non-disqualifying act on the Central Registry the licensee shall assess that staff's suitability to perform their assigned duties.

5. For any individual or staff who resided in another state within five years of their hire date, the Central Registry Check must include a check of any states the individual or staff resided in during those five years.

a. The licensee shall submit the request to the Department prior to hire.

b. The Department shall not provide details regarding another state's substantiation. Upon request, the Department shall provide the licensee with information on how to request the records from the responding state.

6. The licensee shall obtain an annual Central Registry Check at or prior to the anniversary hire date for each staff and any adult residing with the staff in the facility or on the premises.

E. Licensing

1. The applicant shall cooperate with the Department to evaluate the potential and actual ability of the Agency to fulfill a need for and provide services to a child in care according to the standards prescribed in A.R.S. § 8-505 and this Chapter.

2. The applicant shall demonstrate a need for its services in the community. Demonstration of need shall consist of:

a. Verifiable written communication from potential referral sources seeking services from the applicant consistent with their program description;

b. An existing contract for Child Welfare services; or

c. Other verifiable evidence that demonstrates a need for the services.

3. To obtain this information, the Department shall make a minimum of at least one visit to the licensee facility and may conduct any staff interviews the Department deems necessary.

F. Financing

1. An Agency shall maintain complete and accurate accounts, books, and records as required by this Chapter, and in accordance with generally accepted accounting principles.

2. An Agency shall operate on the annual budget approved by its governing body before the beginning of each of the Agency's fiscal years.

3. An Agency shall maintain financial records of all receipts, disbursements, assets, and liabilities in accordance with the U.S. Internal Revenue Service (IRS) schedules. The licensee shall make these records available to the Department for inspection upon request.

4. An Agency shall obtain a financial audit by an independent certified public accountant at the Agency fiscal year-end. An Agency that had an annual income of less than $250,000 or has been licensed for less than one fiscal year, in lieu of a fiscal year-end audit by a certified public accountant, may provide verifiable information that allows the Department to evaluate the Agency's financial stability and maintain acceptable documentation that includes six months of current bank statements; six months of statements from lines of credit; and previous year's tax return.

5. The audit report shall include the following financial information and the accountant shall conduct the audit in accordance with generally accepted auditing standards:

a. Income statement,

b. Balance sheet,

c. Statement of cash flow, and

d. A statement showing monies or other benefits the licensee has paid or transferred to any of the following:

i. Business entities affiliated with the licensee,

ii. The licensee's directors or officers,

iii. The licensee's chief executive officer or program director,

iv. The family member of an applicant or licensee,

v. Another agency, or

vi. Another entity.

6. The Agency shall comply with the Department's request for additional financial information.

G. Operating a Child Welfare Agency without a license is a Class 2 Misdemeanor under A.R.S. § 8-520.

H. In addition to meeting the requirements of this Article, a residential group care facility shall be subject to the requirements set forth in Article 2 of this Chapter.

Notes

Ariz. Admin. Code § R21-7-104

New Section made by final rulemaking at 29 A.A.R. 2231, effective 11/6/2023.