CHAPTER 142

Senate Bill 1068 AN ACT

RELATING TO STATE GOVERNMENT; ESTABLISHING A DEPARTMENT OF ECONOMIC SECURITY TO BE ADMINISTERED BY THE DIRECTOR; PROVIDING FOR A TRANSFER OF THE POWERS AND DUTIES OF THE EMPLOYMENT SECURITY COMMISSION AND ITS STATE EMPLOYMENT AND UNEMPLOYMENT COMPENSATION DIVISIONS, THE STATE DEPARTMENT OF PUBLIC WELFARE, THE DIVISION OF VOCATIONAL REHABILITATION, THE VETERANS' SERVICE COMMISSION, THE STATE OFFICE OF ECONOMIC OPPORTUNITY, THE APPRENTICESHIP COUNCIL AND THE STATE OFFICE OF MANPOWER PLANNING; ESTABLISHING AN ECONOMIC SECURITY COUNCIL; PROVIDING FOR THE ESTABLISHMENT OF A SECTION OF REHABILITATION FOR THE VISUALLY IMPAIRED AND A SECTION ON AGING; PROVIDING FOR A TRANSFER OF PROPERTY, RECORDS, FUNDS AND PERSONNEL; AMENDING TITLE 41, ARIZONA REVISED STATUTES, BY ADDING CHAPTER 14; AMENDING SECTIONS 8-101, 8-126, 8-223, 8-224,

8-241,8-501,8-531,8-546,8-546.01,8-546.03,11-297, 12-902, 12-911,

ARIZONA REVISED STATUTES; REPEALING SECTION 15-805, ARIZONA REVISED STATUTES; AMENDING SECTIONS 15-1091, 15-1181, 15-1182, 15-1183, 15-1184, 15-1185, 15-1186 AND 23-222, ARIZONA REVISED STATUTES; REPEALING SECTION 23-222.01, ARIZONA REVISED STATUTES; AMENDING TITLE 23, CHAPTER 2, ARTICLE 2, ARIZONA REVISED STATUTES, BY ADDING A NEW SECTION 23-222.01; AMENDING SECTIONS 23-223, 23-224, 23-501, 23-502, 23-503,

23-507 AND 23-508, ARIZONA REVISED STATUTES;

AMENDING TITLE 23, CHAPTER 4, ARTICLE 1, ARIZONA REVISED STATUTES, BY ADDING SECTION 23-609.01; AMENDING SECTIONS 23-611, 23-642, 23-648, 23-649, 23-671,

23-672, 23-673, 23-674, 23-704, 23-724, 23-732, 23-741, 23-772,

23-773, 23-774, 23-782, 36-715 AND 36-716, ARIZONA REVISED STATUTES; AMENDING SECTION 41-601, ARIZONA REVISED STATUTES, REPEALING SECTION 41-602, ARIZONA REVISED STATUTES; AMENDING TITLE 41, CHAPTER 3, ARTICLE 7, ARIZONA REVISED STATUTES, BY ADDING A NEW SECTION 41-602; AMENDING SECTIONS 41-603, 41-605, 41-606, 42-1341,

46-101, 46-132, 46-134, 46-136, 46-137, 46-138, 46-140 AND

46-171, ARIZONA REVISED STATUTES; AMENDING TITLE 46, CHAPTER 1, ARIZONA REVISED STATUTES, BY ADDING ARTICLE 7; AMENDING SECTIONS 46-201, 46-203, 46-204,

46-205, 46-207, 46-213, 46-214, 46-231, 46-232, 46-233, 46-251,

46-252, 46-261, 46-261.01, 46-261.04, 46-261.09, 46-261.10,

46-261.11, 46-271, 46-272, ARIZONA REVISED STATUTES;

REPEALING SECTIONS 46-273 THROUGH 46-277, AND

SECTIONS 46-279 THROUGH 46-281, ARIZONA REVISED

STATUTES; AMENDING TITLE 46, CHAPTER 2, ARTICLE 4, ARIZONA REVISED STATUTES; BY ADDING NEW SECTIONS 46-273 THROUGH 46-275; AMENDING TITLE 46, CHAPTER 2, ARIZONA REVISED STATUTES, BY ADDING ARTICLE 4.1; AMENDING SECTIONS 46-291, 46-292 AND 46-311, ARIZONA

REVISED STATUTES; REPEALING SECTIONS 23-504, 23-505,

23-641, 23-643, 23-645, 23-646, 23-647, 23-650, 23-651, 23-653,

23-655, 23-681, 41-604, 46-111, 46-112, 46-113, 46-131, 46-139,

46-151, 46-152, 46-161, 46-162 AND 46-163, ARIZONA REVISED

STATUTES, AND MAKING AN APPROPRIATION.

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

Section 1. Purpose

The purpose of this act is to provide an integration of direct services to the people of this state in a pattern that would reduce duplication of administrative efforts, services and expenditures. The department of economic security will provide the means by which people with multiple problems might find the solution to such problems in a single department's coordinated service. This act shall in no manner abridge the autonomy of the state, counties or municipalities in carrying out their authorized functions and responsibilities.

Sec. 2. Title 41, Arizona Revised Statutes, is amended by adding chapter 14, articles 1 through 3, to read:

CHAPTER 14.

DEPARTMENT OF ECONOMIC SECURITY ARTICLE 1. GENERAL PROVISIONS

41-1951. Definitions

IN THIS CHAPTER, UNLESS THE CONTEXT OTHERWISE REQUIRES:

1. "AGENCY" INCLUDES ONE OR MORE OF THE STATE AGENCIES CONSOLIDATED INTO THE DEPARTMENT OF ECONOMIC SECURITY BY THIS CHAPTER.

2. "COMPREHENSIVE PLAN" MEANS AN EVALUATION OF CLIENT NEEDS AND THE AVAILABILITY OF SERVICES TO MEET THESE NEEDS WITHIN THE STATE.

3. "COUNCIL" MEANS THE ECONOMIC SECURITY COUNCIL.

4. "DEPARTMENT" MEANS THE DEPARTMENT OF ECONOMIC SECURITY.

5. "DIRECTOR" MEANS THE DIRECTOR OF THE DEPARTMENT OF ECONOMIC SECURITY.

6. "STATE PLAN" MEANS ANY OF THE SEVERAL STATE PLANS WHICH ESTABLISH THE FEDERAL-STATE CONTRACTUAL RELATIONSHJPS NECESSARY FOR FEDERAL FUNDING.

7. "COMMUNITY WORK AND TRAINING" MEANS WORK, TRAINING OR JOB DEVELOPMENT WHICH WILL BE PROVIDED THROUGH A PLAN JOINTLY ENTERED INTO BY THE DEPARTMENT AND AN AGENCY, DEPARTMENT, BOARD OR COMMISSION OF THE STATE OR FEDERAL GOVERNMENT, COUNTY, CITY, POLITICAL SUBDIVISION OR PRIVATE AGENCY. SUCH WORK, TRAINING OR JOB DEVELOPMENT WILL TAKE PLACE IN AND ABOUT PUBLIC OR PRIVATE WORKS OR IMPROVEMENTS AND WILL UTILIZE LABOR AND SERVICES REQU1RED TO BE PERFORMED WHERE FEASIBLE BY THOSE ELIGIBLE FOR THIS PROGRAM.41-1952. Department of economic security; director; search committee; appointment; compensationTHERE IS ESTABLISHED A DEPARTMENT OF ECONOMIC SECURITY.THE DIRECTION, OPERATION AND CONTROL OF THE DEPARTMENT IS THE RESPONSIBILITY OF THE DIRECTOR.THE DIRECTOR SHALL BE APPOINTED BY THE GOVERNOR WITH THE ADVICE AND CONSENT OF THE SENATE AND SHALL SERVE AT THE PLEASURE OF THE GOVERNOR.THE STATE PERSONNEL COMMISSION SHALL ASSIST THE GOVERNOR IN PREPARING A JOB DESCRIPTION FOR THE POSITION OF DIRECTOR AND RECRIBTING CANDIDATES FOR THE POSITION. THE QUALIFICATIONS OF THE CANDIDATES SHALL BE REVIEWED BY A COMMITTEE OF SEVEN PERSONS SELECTED BY THE GOVERNOR. THE NAMES OF ALL THOSE CANDIDATES DETERMINED BY THE COMMITTEE TO BE QUALIFIED FOR THE POSITION SHALL BE SUBMITTED TO THE GOVERNOR FOR HIS CONSIDERATION. THE GOVERNOR MAY REQUEST ADDITIONAL NAMES FROM THE COMMITTEE IF HE DEEMS NECESSARY. FOR EACH SUBSEQUENT VACANCY IN THE POSITION OF DIRECTOR, A NEW COMMITTEE SHALL BE APPOINTED BY THE GOVERNOR AS PROVIDED HEREIN.COMPENSATION FOR THE DIRECTOR SHALL BE ESTABLISHED PURSUANT TO SECTION 38-611.

41-1953. Department organization; deputy director; assistant directors

1. THE DIRECTOR MAY ESTABLISH, ABOLISH OR REORGANIZE THE POSITIONS OR ORGANIZATIONAL UNITS WITHIN THE DEPARTMENT TO CARRY OUT THE FUNCTIONS PROVIDED BY SECTION 41-1954, SUBJECT TO LEGISLATIVE APPROPRIATION, IF IN HIS JUDGMENT SUCH MODIFICATION OF ORGANIZATION WOULD MAKE THE OPERATION OF THE DEPARTMENT MORE EFFICIENT, EFFECTIVE OR ECONOMICAL. THE DIRECTOR OR HIS DEPUTY SHALL ENFORCE COOPERATION AMONG THE DIVISIONS IN THE PROVISIONS AND INTEGRATION OF ALL FUNCTIONS ON THE DISTRICT AND LOCAL LEVEL.

2. THERE SHALL BE A DEPUTY DIRECTOR OF THE DEPARTMENT WHO IS APPOINTED BY THE DIRECTOR WITH THE ADVICE AND CONSENT OF THE GOVERNOR. THE DEPUTY DIRECTOR SHALL SERVE AT THE PLEASURE OF THE DIRECTOR. THE DEPUTY DIRECTOR WILL BE DIRECTLY RESPONSIBLE FOR THE OPERATIONS AND COORDINATION OF THOSE SERVICES OF THE DEPARTMENT CONCERNING INITIAL INTAKE, SCREENING, EVALUATION AND REFERRAL OF PERSONS SERVED BY THE DEPARTMENT.

3. THE DIRECTOR SHALL APPOINT AN ASSISTANT DIRECTOR TO HEAD EACH ORGANIZATIONAL UNIT THAT THE DIRECTOR MAY ESTABLISH. EACH ASSISTANT DIRECTOR SHALL SERVE AT THE PLEASURE OF THE DIRECTOR.

4. THE DEPARTMENT SUCCEEDS TO THE AUTHORITY, POWERS, DUTIES AND RESPONSIBILITIES OF THE FOLLOWING:l. THE EMPLOYMENT SECURITY COMMISSION OF ARIZONA AND ITS ARIZONA STATE EMPLOYMENT SERVICE, UNEMPLOYMENT COMPENSATION AND ADMINISTRATIVE SERVICE DIVISIONS.THE STATE DEPARTMENT OF PUBLIC WELFARE.THE DIVISION OF VOCATIONAL REHABILITATION.THE VETERANS' SERVICE COMMISSION.THE STATE OFFICE OF ECONOMIC OPPORTUNITY.THE APPRENTICESHIP COUNCIL.THE STATE OFFICE OF MANPOWER PLANNING.

5. IN THE ARIZONA REVISED STATUTES, REFERENCES TO THE AGENCIES AND DEPARTMENTS LISTED IN SUBSECTION D SHALL BE DEEMED TO BE REFERENCES TO THE DEPARTMENT OF ECONOMIC SECURITY OR ITS APPROPRIATE DIVISIONS, OFFICES OR ORGANIZATIONAL UNITS.41-1954. Powers and dutiesIN ADDITION TO THE POWERS AND DUTIES OF THE AGENCIES LISTED IN SUBSECTION D OF SECTION 41-1953 THE DEPARTMENT SHALL:ADMINISTER THE FOLLOWING SERVICES:EMPLOYMENT SERVICES, WHICH SHALL INCLUDE MANPOWER PROGRAMS AND WORK TRAINING, FIELD OPERATIONS, TECHNICAL SERVICES, UNEMPLOYMENT COMPENSATION, COMMUNITY WORK AND TRAINING AND OTHER RELATED FUNCTIONS IN FURTHERANCE OF PROGRAMS UNDER THE SOCIAL SECURITY ACT, AS AMENDED, THE WAGNER-PEYSER ACT, AS AMENDED, THE FEDERAL UNEMPLOYMENT TAX ACT, AS AMENDED, TITLE 33, U.S. CODE AND OTHER RELATED FEDERAL ACTS AND TITLES.INDIVIDUAL AND FAMILY SERVICES, WHICH SHALL INCLUDE A SECTION ON AGING, SERVICES TO CHILDREN AND YOUTH AND OTHER RELATED FUNCTIONS IN FURTHERANCE OF SOCIAL SERVICE PROGRAMS UNDER THE SOCIAL SECURITY ACT, AS AMENDED, THE OLDER AMERICANS ACT, AS AMENDED, AND OTHER RELATED FEDERAL ACTS AND TITLES.INCOME MAINTENANCE SERVICES, WHICH SHALL INCLUDE CATEGORICAL ASSISTANCE PROGRAMS, SPECIAL SERVICES UNIT AND OTHER RELATED FUNCTIONS IN FURTHERANCE OF PROGRAMS UNDER THE SOCIAL SECURITY ACT, TITLE I, OLD AGE ASSISTANCE, TITLE IV, AID TO THE FAMILIES WITH DEPENDENT CHILDREN, TITLE X, AID TO THE BLIND, TITLE XIV, AID TO PERMANENTLY AND TOTALLY DISABLED, AS AMENDED, AND OTHER RELATED FEDERAL ACTS AND TITLES.REHABILITATION SERVICES WHICH SHALL INCLUDE VOCATIONAL REHABILITATION SERVICES AND SECTIONS FOR THE BLIND AND VISUALLY IMPAIRED, COMMUNICATION DISORDERS, CORRECTIONAL REHABILITATION AND OTHER RELATED FUNCTIONS IN FURTHERANCE OF PROGRAMS UNDER THE VOCATIONAL REHABILITATION ACT, AS AMENDED, THE RANDOLPH-SHEPPARD ACT, AS AMENDED, AND OTHER RELATED FEDERAL ACTS AND TITLES.ADMINISTRATIVE SERVICES, WHICH SHALL INCLUDE THE COORDINATION OF PROGRAM EVALUATION AND RESEARCH, INTERAGENCY PROGRAM COORDINATION AND IN-SERVICE TRAINING, PLANNING, GRANTS, DEVELOPMENT AND MANAGEMENT, INFORMATION, LEGISLATIVE LIAISON, BUDGET, LICENSING AND OTHER RELATED FUNCTIONS.MANPOWER PLANNING, WHICH SHALL INCLUDE A STATE MANPOWER PLANNING COUNCIL FOR THE PURPOSES OF THE FEDERAL-STATE-LOCAL COOPERATIVE MANPOWER PLANNING SYSTEM AND FURTHERANCE OF PROGRAMS UNDER THE MANPOWER DEVELOPMENT AND TRAINING ACT OF 1962, AS AMENDED, PUBLIC LAW 90-636, 42 U.S. CODE 2571-2620, FEDERAL EXECUTIVE ORDER NO. 11422 DATED OCTOBER 15, 1968, AND OTHER RELATED FEDERAL ACTS AND TITLES.THE APPRENTICESHIP COUNCIL, WHICH SHALL INCLUDE RESPONSIBILITY FOR FUNCTIONS PRESCRIBED IN TITLE 23, CHAPTER 2, ARTICLE 2 AND FURTHERANCE OF PROGRAMSUNDER THE FITZGERALD ACT, PUBLIC LAW 308, 75TH CONGRESS, AS AMENDED AND OTHER RELATED FEDERAL ACTS AND TITLES.VETERANS' SERVICES, WHICH SHALL INCLUDE FUNCTIONS PRESCRIBED IN TITLE 41, CHAPTER 3, ARTICLE 7, AND FURTHERANCE OF PROGRAMS UNDER TITLE 38, U. S. CODE RELATING TO VETERANS' BENEFITS AND OTHER RELATED FEDERAL ACTS AND TITLES.ECONOMIC OPPORTUNITY SERVICES, WHICH SHALL INCLUDE THE FURTHERANCE OF PROGRAMS PRESCRIBED UNDER THE ECONOMIC OPPORTUNITY ACT OF 1967, AS AMENDED AND OTHER RELATED FEDERAL ACTS AND TITLES.PROVIDE A COORDINATED SYSTEM OF INITIAL INTAKE, SCREENING, EVALUATION AND REFERRAL OF PERSONS SERVED BY THE DEPARTMENT.ADOPT RULES AND REGULATIONS IT DEEMS NECESSARY OR DESIRABLE TO FURTHER THE OBJECTIVES AND PROGRAMS OF THE DEPARTMENT.FORMULATE POLICIES, PLANS AND PROGRAMS TO EFFECTUATE THE MISSIONS AND PURPOSES OF THE DEPARTMENT.EMPLOY, DETERMINE THE CONDITIONS OF EMPLOYMENT AND PRESCRIBE THE DUTIES AND POWERS OF ADMINISTRATIVE, PROFESSIONAL, TECHNICAL, SECRETARIAL, CLERICAL AND OTHER PERSONS AS MAY BE NECESSARY IN THE PERFORMANCE OF ITS DUTIES, AND CONTRACT FOR THE SERVICES OF OUTSIDE ADVISORS, CONSULTANTS AND AIDES AS MAY BE REASONABLY NECESSARY.MAKE CONTRACTS AND INCUR OBLIGATIONS WITHIN THE GENERAL SCOPE OF ITS ACTIVITIES AND OPERATIONS SUBJECT TO THE AVAILABILITY OF FUNDS.CONTRACT WITH OR ASSIST OTHER DEPARTMENTS, AGENCIES AND INSTITUTIONS OF THE STATE, LOCAL AND FEDERAL GOVERNMENTS IN THE FURTHERANCE OF ITS PURPOSES, OBJECTIVES AND PROGRAMS.BE DESIGNATED AS THE SINGLE STATE AGENCY FOR THE PURPOSES OF ADMINISTERING AND IN FURTHERANCE OF EACH FEDERALLY SUPPORTED STATE PLAN.ACCEPT GRANTS, MATCHING FUNDS AND DIRECT PAYMENTS FROM PUBLIC OR PRIVATE AGENCIES FOR THE CONDUCT OF PROGRAMS WHICH ARE CONSISTENT WITH THE OVERALL PURPOSES AND OBJECTIVES OF THE DEPARTMENT.PROVIDE INFORMATION AND ADVICE ON REQUEST BY LOCAL, STATE AND FEDERAL AGENCIES AND BY PRIVATE CITIZENS, BUSINESS ENTERPRISES AND COMMUNITY ORGANIZATIONS ON MATIERS WITHIN THE SCOPE OF ITS DUTIES SUBJECT TO THE DEPARTMENTAL RULES AND REGULATIONS ON THE CONFIDENTIALITY OF INFORMATION.

1 I. EST A BLISH AND MAINTAIN SEPARATE FINANCIAL ACCOUNTS AS REQUIRED BY FEDERAL LAW OR REGULATIONS.

1. ADVISE WITH AND MAKE RECOMMENDATIONS TO THE GOVERNOR AND THE LEGISLATURE ON ALL MATTERS CONCERNING ITS OBJECTIVES.

2. HAVE AN OFFICIAL SEAL WHICH SHALL BE JUDICIALLY NOTICED.41-1955. Duty of department concerning employment stabilization, income maintenance and manpower developmentTHE DEPARTMENT, WITH THE ADVICE AND AID OF ITS ADVISORY COUNCILS, SHALL:TAKE APPROPRIATE STEPS TO REDUCE AND PREVENT UNEMPLOYMENT AND DEPENDENCY, AND TO ASSIST IN ALLEVIATING THE ECONOMIC AND SOCIAL IMPACT OF UNEMPLOYMENT AND DEPENDENCY ON THE PERSON At'\lD HIS FAMILY.

1. ENCOURAGE AND ASSIST IN THE ADOPTION OF PRACTICAL METHODS OF MANPOWER SERVICES, OCCUPATIONAL TRAINING, VOCATIONAL COUNSELING AND GUIDANCE, VOCATIONAL REHABILITATION AND RETRAINING, SUPPORTIVE SERVICES AND OTHER SUCH SERVICES THE DIRECTOR DEEMS APPROPRIATE.

2. RESEARCH, RECOMMEND, ADVISE AND ASSIST IN THE ESTABLISHMENT OF COMMUNITY OR AREA FACILITIES, PUBLIC AND PRIVATE, OR BOTH, TO PROVIDE AN INTEGRATION OF DIRECT SERVICES AND PROGRAMS FOR THE DEVELOPMENT OF THE STATE'S MANPOWER AND THE REDUCTION OF DEPENDENCY.

3. PROMOTE THE EFFECTIVE UTILIZATION OF UNEMPLOYED AND UNDERUTILIZED WORKERS.

4. CARRY OUT AND PUBLISH THE RESULTS OF RESEARCH STUDIES FOR THE PURPOSE OF THIS CHAPTER.41-1956. State comprehensive planTHE DEPARTMENT SHALL ANNUALLY PREPARE A COMPREHENSIVE PLAN FOR THE STATE FOR THE PURPOSE OF GUIDING THE DEVELOPMENT, FUNDING AND IMPLEMENTATION OF PROGRAMS AND ACTIVITIES BY THE DEPARTMENT AND OTHER ST A TE PROGRAMS CONCERNED WITH SERVICE DEVELOPMENT, INTEGRATION AND UTILIZATION. THE PLAN SHALL DESCRIBE THE PRESENT AND PROJECTED NEEDS FOR DEVELOPMENT OF SUCH PROGRAMS AND SET FORTH THE LONG-RANGE PROGRAM OBJECTIVES. THE PLAN SHALL ALSO INCLUDE A DESCRIPTION OF THE CONTENT AND ALLOCATION OF STATE AND FEDERAL FUNDS TO ALL PROGRAMS, SERVICES AND ACTIVITIES TO BE CARRIED OUT UNDER THE PLAN DURING THE YEAR. THE DEPARTMENT SHALL INDICATE HOW AND TO WHAT EXTENT SUCH PROGRAMS, SERVICES AND ACTIVITIES WILL CARRY OUT THE PROGRAM OBJECTIVES SET FORTH IN THE LONG-RANGE PROGRAM PLAN. THE DEPARTMENT SHALL HOLD PUBLIC HEARINGS ON THE PLAN BEFORE ADOPTION OF SUCH PLAN.41-1957. State-federal cooperationSUBJECT TO THE DEPARTMENTAL RULES AND REGULATIONS ON THE CONFIDENTIALITY OF INFORMATION, UPON REQUEST, THE DEPARTMENT SHALL FURNISH TO ANY AGENCY OF THE UNITED STATES WHICH IS CHARGED WITH THE ADMINISTRATION OF PUBLIC WORKS OR ASSISTANCE THROUGH PUBLIC EMPLOYMENT THE NAME, ADDRESS, ORDINARY OCCUPATION AND EMPLOYMENT STATUS OF EACH RECIPIENT OF BENEFITS AND THE RECIPIENT'S RIGHTS TO FURTHERBENEFITS FROM PROGRAMS ADMINISTERED BY THE DEPARTMENT.IN THE ADMINISTRATION OF THE PROVISIONS OF THE EXTENDED BENEFIT PROGRAM REQUIRED BY THE FEDERAL-STATE EXTENDED UNEMPLOYMENT COMPENSATION ACT OF 1970, THE DEPARTMENT SHALL TAKE SUCH ACTION AS MAY BE NECESSARY TO ENSURE THAT THE PROVISIONS ARE SO INTERPRETED AND APPLIED AS TO MEET THE REQUIREMENTS OF SUCH FEDERAL ACT AS INTERPRETED BY THE UNITED STATES DEPARTMENT OF LABOR, AND TO SECURE TO THIS STATE THE FULL REIMBURSEMENT OF THE FEDERAL SHARE OF EXTENDED BENEFITS PAID UNDER TITLE 23, CHAPTER 4, THAT ARE REIMBURSABLE UNDER THE FEDERAL ACT.

41-1958. Acquisition of lands and buildings

1. THE DIRECTOR MAY ACQUIRE FOR AND IN THE NAME OF THE STATE BY LEASE, LEASE PURCHASE AGREEMENT OR OTHERWISE LANDS OR BUILDINGS FOR THE PURPOSE OF PROVIDING OFFICE SPACE FOR THE DEPARTMENT AT SUCH PLACES AS THE DIRECTOR FINDS NECESSARY AND SUITABLE.

2. AN AGREEMENT MADE FOR THE LEASE OR PURCHASE OF THE PREMISES MENTIONED IN SUBSECTION A IS SUBJECT TO THE APPROVAL OF THE ATTORNEY GENERAL AND THE COMMISSIONER OF FINANCE.41-1959. Power to promulgate rules concerning confidential nature of recordsTHE DEPARTMENT SHALL PROMULGATE SUCH RULES AND REGULATIONS REQUIRED BY FEDERAL LAW OR REGULATION OR THAT THE DEPARTMENT DEEMS NECESSARY TO PROTECT CONFIDENTIAL INFORMATION. NO NAMES OR OTHER INFORMATION OF ANY APPLICANT, CLAIMANT, RECIPIENT OR EMPLOYER SHALL BE MADE AVAILABLE FOR ANY POLITICAL, COMMERCIAL OR OTHER UNOFFICIAL PURPOSE.41-1960. Annual reportTHE DIRECTOR SHALL MAKE AN ANNUAL REPORT ON THE ST A TE 'S ECONOMIC SECURITY NEEDS AND RESOURCES, INCLUDING THE USE, TRAINING AND PLACEMENT OFMANPOWER, AND HIS RECOMMENDATIONS FOR THE FORTHCOMING FISCAL YEAR FOR THE STATE'S DEVELOPMENT OF RELEVANT PROGRAMS. SUCH REPORT SHALL BE TRANSMITTED TO THE GOVERNOR AND LEGISLATURE BY THE END OF EACH CALENDAR YEAR.41-1961. District offices; location; representativesTHE DEPARTMENT SHALL ESTABLISH AT LEAST SIX DISTRICT OFFICES, TO BE LOCATED IN AND SERVE THE VARIOUS RELATED GEOGRAPHICAL AREAS OF THE STATE. THE DISTRICTS SHALL HAVE COMMON BOUNDARIES FOR ALL SERVICES PROVIDED BY THE DEPARTMENT.EACH DISTRICT OFFICE SHALL BE STAFFED BY A REPRESENTATIVE FROM EACH MAJOR ORGANIZATIONAL SERVICE UNIT OF THE DEPARTMENT. ONE OF THE REPRESENTATIVES SHALL BE DESIGNATED BY THE DIRECTOR TO COORDINATE THE DISTRICT OFFICE.EACH DISTRICT OFFICE SHALL BE CONSIDERED AN OPERATIONS UNIT OF THE DEPARTMENT AND SHALL BE RESPONSIBLE FOR THE PLANNING, PROGRAMS, INTRA AND INTERAGENCY COORDINATION WITHIN THE DISTRICT AREA.EACH DISTRICT OFFICE SHALL BE CREATED IN ADDITION TO ANY LOCAL OFFICES OF THE DEPARTMENT THAT MAY EXIST IN THE DISTRICT AREA.

41-1962. Conflict with federai law

WHERE ANY CONFLICT WITH FEDERAL LAW OCCURS CONCERNING THE PROGRAMS AND FUNCTIONS OF THE DEPARTMENT AS ESTABLISHED BY THE LAW OF THIS STATE, SUCH FEDERAL LAW SHALL CONTROL.

ARTICLE 2. ADVISORY COUNCILS

41-1981. Economic security council; special purpose councils

1. IN ORDER TO FORM A COUNCIL ADVISORY TO THE GOVERNOR AND THE DEPARTMENT AND REPRESENTATIVE OF THE NEEDS OF THE PEOPLE OF ARIZONA AND WITH RESPECT TO MANPOWER, ECONOMIC SECURITY, SOCIAL WELFARE ANDVOCATIONAL REHABILITATION, THERE IS ESTABLISHED AN ECONOMIC SECURITY COUNCIL. THE ECONOMIC SECURITY COUNCIL SHALL ALSO SERVE THE REQUIREMENTS OF THE WAGNER-PEYSER ACT, AS AMENDED, THE SOCIAL SECURITY ACT, AS AMENDED, THE VOCATIONAL REHABILITATION ACT, AS AMENDED, THE MANPOWER DEVELOPMENT AND TRAINING ACT, AS AMENDED, THE VOCATIONAL EDUCATION ACT, AS AMENDED, THE ECONOMIC OPPORTUNITY ACT, AS AMENDED, AND FUTURE FEDERAL AND STATE LEGISLATION RELATING TO ECONOMIC SECURITY, FOR PLANNING, FUNDING OR IMPLEMENTING PROGRAMS RELATED TO SUCH ACTS.

2. THE GOVERNOR SHALL APPOINT THE MEMBERS OF THE COUNCIL. MEMBERSHIP SHALL CORRESPOND TO PERTINENT FEDERAL REGULATIONS CONCERNING ADVISORY AND PLANNING COUNCILS OR COMMITTEES. THE GOVERNOR SHALL ANNUALLY SELECT THE COUNCIL CHAIRMAN FROM THE MEMBERSHIP OF THE COUNCIL.

3. THE COUNCIL SHOULD HAVE EIGHTEEN MEMBERS REPRESENTING THE PUBLIC AND RELEVANT PROFESSIONAL, BUSINESS, MANUFACTURING, LABOR AND EDUCATIONAL ORGANIZATIONS.

4. COUNCIL MEMBERS SERVE FOR A TERM OF THREE YEARS, EXCEPT THAT THE MEMBERS INITIALLY APPOINTED SHALL BE APPOINTED FOR STAGGERED TERlvIS OF ONE, TWO AND THREE YEARS.

5. THE DIRECTOR SHALL ESTABLISH ANY SPECIAL PURPOSE COUNCILS AS ARE REQUIRED BY STATE OR FEDERAL LAW, RULES OR REGULATIONS OR DETERMINED TO BE ESSENTIAL TO THE PUBLIC'S INTEREST. SUCH COUNCILS SHALL INCLUDE, BUT NOT BE LIMITED TO, A REHABILITATION ADVISORY COUNCIL, AN INCOME MAINTENANCE ADVISORY COUNCIL, AN APPRENTICESHIP ADVISORY COUNCIL, AN INDIAN AFFAIRS ADVISORY COUNCIL, A VETERANS' ADVISORY COUNCIL. MEMBERSHIP QUALIFICATIONS SHALL BE IN ACCORDANCE WITH THE APPROPRIATE LAW, RULE OR REGULATION. THE DIRECTOR SHALL APPOINT, WITH THE APPROVAL OF THE GOVERNOR, THE MEMBERS OF EACH SUCH COUNCIL AFTER CONSULTATION WITH MEMBERS OF THE ECONOMIC SECURITY COUNCIL.

6. APPOINTMENT TO FILL A VACANCY ON THE COUNCIL OR ANY SPECIAL PURPOSE COUNCIL RESULTING FROM OTHERTHAN EXPIRATION OF TERM SHALL BE FOR THE UNEXPIRED PORTION OF A TERM ONLY.

7. THE DEPARTMENT SHALL PROVIDE SECRETARIAL AND STAFF SUPPORT SERVICES TO THE COUNCILS.

8. THE MEMBERS OF THE ECONOMIC SECURITY COUNCIL SHALL RECEIVE COMPENSATION DETERMINED PURSUANT TO SECTION 38-611. THE MEMBERS OF ANY SPECIAL PURPOSE COUNCIL SHALL SERVE WITHOUT COMPENSATION, EXCEPT FOR TRAVEL AND SUBSISTENCE EXPENSES AS PROVIDED BY LAW FOR OTHER STATE OFFICERS AND EMPLOYEES.

ARTICLE 3. HEARINGS AND APPEALS

41-1991. Appeals; procedures

APPEALS HEARD BY THE DEPARTMENT SHALL BE CONDUCTED IN ACCORDANCE WITH THE PROVISIONS OF TITLE 41, CHAPTER 6, ARTICLE 1, EXCEPT AS OTHERWISE PROVIDED BY LAW.

41-1992. Hearing officers; powers and duties

1. THE DIRECTOR SHALL APPOINT HEARING OFFICERS WHO SHALL CONDUCT SUCH HEARINGS AS THE DIRECTOR MAY DETERMINE ARE NECESSARY IN ACCORDANCE WITH LAW.

2. WITHIN A REASONABLE TIME PRIOR TO THE DATE SET FOR THE HEARING ANY INTERESTED PARTY TO A HEARING BEFORE THE DEPARTMENT MAY FILE AN AFFIDAVIT FOR CHANGE OF HEARING OFFICER AGAINST ANY HEARING OFFICER OF THE DEPARTMENT HEARING SUCH MATTERS AND THE HEARING OFFICER SHALL IMMEDIATELY TRANSFER THE MATTER TO ANOTHER HEARING OFFICER OF THE DEPARTMENT WHO SHALL PRESIDE THEREIN. REASONABLE TIME SHALL BE ESTABLISHED BY REGULATION. NOT MORE THAN ONE CHANGE OF HEARING OFFICER SHALL BE GRANTED TO ANY ONE PARTY.

3. THE HEARING OFFICER SHALL SUBMIT A WRITTEN RECOMMENDATION WHICH SHALL INCLUDE PROPOSED FINDINGS OF FACT AND CONCLUSIONS OF LAW. THE RECOMMENDATION OF THE HEARING OFFICER MAY BE APPROVED BY THE DIRECTOR AS SUBMITTED OR MAY BE MODIFIED BY THE DIRECTOR. SUCH DECISION, WHEN APPROVED

OR MODIFIED BY THE DIRECTOR AND ORDERED FILED IN HIS OFFICE, SHALL BE THE FINDING, ORDER OR DECISION OF THE DIRECTOR. IF THE DIRECTOR DECLINES TO APPROVE THE DECISION OF THE HEARING OFFICER, THE DIRECTOR MAY ORDER ANY FURTHER PROCEEDINGS HE DEEMS APPROPRIATE.

41-1993. Judicial review; procedures; exception

ANY PARTY AGGRIEVED BY A DECISION OF THE DIRECTOR, EXCEPT DECISIONS RELATING TO PUBLIC WELFARE PURSUANT TO TITLE 46, IS ENTITLED TO JUDICIAL REVIEW OF THE DECISION PURSUANT TO THE PROVISIONS OF TITLE 12, CHAPTER 7, ARTICLE 6.

41-1994. Appeal from superior court

AN AGGRIEVED PARTY MAY SECURE A REVIEW OF A FINAL JUDGMENT OF THE SUPERIOR COURT MADE AND ENTERED UNDER THIS ARTICLE, UNLESS PROHIBITED BY LAW. THE APPEAL SHALL BE TAKEN IN THE MANNER PROVIDED BY LAW FOR APPEALS FROM SUPERIOR COURT IN A CIVIL ACTION.

Sec. 3. Section 8-101, Arizona Revised Statutes, is amended to read: 8-101. Definitions

In this article, unless the context otherwise requires:

1. "Adult" means a person tw,mty gne EIGHTEEN years of age or older.

2. "Agency" is an agency licensed by the division to place children for adoption.

3. "Child" means any person under tw,mty Gne EIGHTEEN years of age.

4. "Custody" means a status embodying the following rights and responsibilities:The right to have the physical possession of the child.The right and the duty to protect, train and discipline the child, andThe responsibility to provide the child with food, shelter, education and ordinary medical care, and the authority to consent to surgery or other extraordinary medical care in an emergency.

5. "Division" means the divisign gf children's services of the tate department of - ECONOMIC SECURITY. vil10n created and until s1.1Gh tim©, th@ stat@ departm@nt of public 1,vslfarn.

6. "Juvenile court" or "court" means the juvenile division of the superior court.

7. "Petitioner" includes both petitioners under a joint petition.

Sec. 4. Section 8-126, Arizona Revised Statutes, is amended to read:

8-126. Fees

1. When an application is filed with the court, an agency or the division for the adoption of a child, the court, the agency or division may require the applicant to pay to the court, the agency or division a fee based upon the cost of services rendered but not in excess of amounts established by the state department of public welfare ECONOMIC SECURITY. Inability of the adoptive applicant to pay all or any part of such fee shall not be a disqualifying factor in determining whether to place a child with the applicant. The court, the agency or division may defer, waive or reduce the fee when its application would cause any type of hardship to the adoptive parent or be detrimental to the welfare of the adoptive child. Persons receiving a child from an agency or the division for the purpose of adoption may receive compensation for the care, clothing and medical attention of the child.

2. All fees collected or received by the division or by the cmmty welfare aepartffieHt shall be paid to the state general fund.

3. No person and no agency, association, corporation, institution, society or other organization, except as provided in subsections A and B, of this sectioH, shall request, receive or accept any compensation or thing of value, directly or indirectly, for placing out of a child.

4. Any attorney licensed to practice in this state may perform legal services in an adoption proceeding if he does not receive any compensation or thing of value, directly or indirectly beyond a reasonable fee, approved by the court, for legal services rendered, which fee shall not include any compensation for participation in the finding, locating or placing a child for adoption or for the finding of adoptive parents.

Sec. 5. Section 8-223, Arizona Revised Statutes, is amended to read: 8-223. Taking into temporary custody; interference; penalty

1. A child may be taken into temporary custody:l. Pursuant to an order of the juvenile court under the provisions of this chapter.Pursuant to the laws of arrest, without a warrant, when there are reasonable grounds to believe that he has committed a delinquent act or is incorrigible.By a law enforcement officer or a child protective services specialist of the state department of publie v.r@lfarn ECONOMIC SECURITY if there are reasonable grounds to believe that the child is suffering from illness or injury or is in immediate danger from his surroundings, and that his removal is necessary.By a law enforcement officer if there are reasonable grounds to believe that the child has run away from his parents, guardian-,or other custodian.

2. A person who interferes with the taking of a child into temporary custody under provisions of this section is guilty of a misdemeanor.

Sec. 6. Section 8-224, Arizona Revised Statutes, is amended to read:

8-224. Investigation of alleged acts of delinquency, dependency, and incorrigibility

1. The law enforcement officer having jurisdiction in the place in which an act of delinquency or incorrigibility is alleged to have occurred shall have the responsibility for the complete investigation surrounding the alleged commission of the act.

2. A child protective services specialist of the state department of-welfttre ECONOMIC SECURITY shall have the responsibility for the complete investigation of all complaints of alleged dependency. The state department ef fH!bl-ie Vielfarn shall be responsible for the disposition of such child unless the matter requires the intervention of the court.Sec. 7. Section 8-241, Arizona Revised Statutes, is amended to read: 8-241. Disposition and commitmentAfter receiving and considering the evidence on the proper disposition of the case, the court may enter judgment as follows:It may award a dependent child:To the care of his parents, subject to the superv1s10n of the state department of pubhe w@lfar@ ECONOMIC SECURITY.To a suitable institution.To an association willing to receive him.To a reputable citizen of good moral character.To an appropriate public or private agency licensed to care for children.To a suitable school.To maternal or paternal relatives, provided they are physically and financially able to provide proper care.It may award a delinquent or incorrigible child:To the care of his parents, subject to supervision of a probation department.To a probation department, subject to such conditions as the court may impose.To a reputable citizen of good moral character, subject to the supervision of a probation department.To a private agency or institution, subject to the supervision of a probation officer.To the department of corrections without further directions as to placement by that department.Except as provided in section 8-242, the juvenile court may make an order directing the parent of a child to contribute to his support such sum as the court may determine, or may allow a reasonable sum for the support of the child at the expense of the county.When the court awards a child to the department of corrections or an institution or agency, it shall transmit with the order of commitment copies of the case report, all psychological and medical reports and other documents or records pertaining to the case requested by the department of corrections, institution or agency.The juvenile court may permit removal from the state of a dependent child or ward of the court by the person to whom his care may be temporarily awarded, upon such recogl-ligation, RECOGNIZANCE, with or without sureties, as may satisfy the court, obligating the person to produce the child when required by the court.

Sec. 8. Section 8-501, Arizona Revised Statutes, is amended to read: 8-501. Definitions

In this article, unless the context otherwise requires:

l. "Child welfare agency" or "agency" means:

1. Any agency or institution maintained by a person, firm, corporation, association or organization to receive dependent, neglected, incorrigible, delinquent or mentally or physically handicapped children for care and maintenance.

2. Any institution that provides care for unmarried mothers and their children.

3. Any agency maintained by the state, or a political subdivision thereof, person, firm, corporation, association, or organization to place dependent, neglected, incorrigible, delinquent, or mentally or physically handicapped children or unmarried mothers in a foster home.

1. "Division" means the di1,1ision of ehi:ldren's serviees of the state - department of flUblie welfare ECONOMIC SECURITY. when ereat0a and until such tim0, th0 stat0 aspartmsnt of public wslfarn.

2. "Foster child" means a child placed in a foster home or child welfare agency.

3. "Foster home" means a home maintained by any individual or individuals having the care or control of one or more but not more than five minor children, other than those related to each other by blood or marriage, or related to such individuals, or who are legal wards of such individuals.

4. "Parent or parents" means the natural or adoptive parents of the child.

5. "Receiving foster home" means a licensed foster home suitable for immediate placement of children when taken into custody or pending medical examination and court disposition.

6. "Regular foster home" means a licensed foster home suitable for placement of children.

7. "Special foster home" means a licensed foster home capable of handling children who require special care for physical, mental or emotional reasons or have been adjudicated a delinquent.

Sec. 9. Section 8-531, Arizona Revised Statutes, is amended to read: 8-531. Definitions

In this article, unless the context otherwise requires:

1. "Abuse" means the infliction of physical or mental injury or the causing of deterioration of a child and shall include failing to maintain reasonable care and treatment or exploiting or overworking a child to such an extent that his health, morals or emotional well-being is endangered.

2. "Agency" means an agency licensed by the division to place children for adoption.

3. "Child" means a person le.ss than eighteen years of age.

4. "Division" means the division of ehi:ldren's serviees of the state department of poolic w@lfai:@· ECONOMIC SECURITY. when created and,· until sueh time, the state depai:tmeflt of public w@lfarn.

5. "Guardian ad litem" means a person appointed by the court to protect the interest of a minor or an incompetent in a particular case before the court.

6. "Guardianship of the person" with respect to a minor means the duty and authority to make important decisions in matters affecting the minor including but not necessarily limited either in number or kind to:The authority to consent to marriage, to enlistment in the armed forces of the United States and to major medical, psychiatric and surgical treatment, to represent the minor in legal actions, and to make other decisions concerning the child of substantial legal significance.The authority and duty of reasonable visitation, except to the extent that such right of visitation has been limited by court order.The rights and responsibilities of legal custody, except where legal custody has been vested in another individual or in an authorized agency.When the parent-child relationship has been terminated by judicial decree with respect to the parents, or only living parent, or when there is no living parent, the authority to consent to the adoption of the child and to make any other decision concerning the child which the child's parents could make.

7. "Juvenile court" means the juvenile division of the superior court.

8. "Custody or legal custody" means a status embodying the following rights and responsibilities:The right to have the physical possession of the child,The right and the duty to protect, train and discipline the child, andThe responsibility to provide the child with food, shelter, education and ordinary medical care, provided that such rights and responsibilities shall be exercised subject to the powers, rights, duties and responsibilities of the guardian of the person and subject to the residual parental rights and responsibilities if they have not been terminated by judicial decree.

9. "Neglected" used with respect to a child refers to a situation in which the child lacks proper parental care necessary for his health, morals, and well-being.

10. "Parent" means the natural or adoptive mother or father of a child.

11. "Parent-child relationship" includes all rights, privileges, duties,and obligations existing between parent and child, including inheritance rights.

12. "Parties" INCLUDES the child and the petitioners.Sec. 10. Section 8-546, Arizona Revised Statutes, is amended to read: 8-546. Definitions; exemptionIn this chapter, unless the context otherwise requires:"Abandoned" means the failure of the parent to provide reasonable support and to maintain regular contact with the child, including theproviding of normal supervision, when such failure is accompanied by an intention on the part of the parent to permit such condition to continue for an indefinite period in the future. Failure to maintain a normal parental relationship with the child without just cause for a period of six months shall constitute prima facie evidence of abandonment."Abuse" means the infliction of physical or mental injury or the causing of deterioration of a child and shall include failing to maintain reasonable care and treatment or exploiting or overworking a child to such an extent that his health, morals or emotional well-being is endangered."Child" means an individual who is under the age of eighteen years."Dependent child" means a child who is adjudicated to be:In need of proper and effective parental care and control and has no parent or guardian, or one who has no parent or guardian willing to exercise or capable of exercising such care and control.Destitute or who is not provided with the necessities of life, or who is not provided with a home or suitable place of abode, or whose home is unfit for him by reason of abuse, neglect, cruelty.,or depravity by either of his parents, his guardian,or other person having his custody or care."Protective services" means a program of identifiable and specialized child welfare which seeks to prevent dependency, abuse and exploitation of children by reaching out with social services to stabilize family life, and to preserve the family unit by focusing on families where unresolved problems have produced visible signs of dependency or abuse and the home situation presents actual and potential hazards to the physical or emotional well-being of children. The program shall seek to strengthen parental capacity and ability to provide good child care."Protective services worker" means a person who has been selected by and trained under the requirements prescribed by the state department of pueli:c 'Nelfare ECONOMIC SECURITY and assists in carrying out the provisions of this article."Worker" means a protective services worker, as defined in this section.Notwithstanding any other provision of this chapter, no child who in good faith is being furnished christian science treatment by a duly accredited practitioner shall, for that reason alone, be considered to be an abused, neglected or dependent child.

Sec. 11. Section 8-546.01, Arizona Revised Statutes, is amended to read: 8-546.01. Protective services worker; powers and duties

1. Protective services workers shall be employed by the state department of public wslfar@ ECONOMIC SECURITY.

2. The department may cooperate with county agencies and community social services agencies to achieve the purposes of this section.

3. A protective services worker shall:Be prepared to receive reports of dependent, abused or abandoned children and be prepared to provide temporary foster care for such children on a twenty-four hour basis. In counties of over one hundred thousand population, receive reports of dependent, abused or abandoned children on a twenty-four hour basis.Receive from any source oral or written information regarding a child who may be in need of protective services.Upon receipt of such information, make a prompt and thorough investigation which shall include a determination of the nature, exten1'­ and cause of any condition which is contrary to the child's best interests and the name, age and condition of other children in the home.Take a child into temporary custody if there are reasonable grounds to believe that the child is suffering from illness or injury or is in immediate danger from his surroundings and that his removal is necessary. Law enforcement officers shall cooperate with the department to remove a child from the custody of his parents, guardian,or custodian when necessary.After investigation, evaluate the environment of the child or children in the same home and the risk to such children if they continue to be subjected to the existing home environment, and all other facts or matters found to be pertinent. He shall then determine whether any of the children is a child in need of protective services.Offer to the family of any child found to be a child in need of protective services whatever services appear appropriate in view of the investigation and evaluation, which may include, but shall not be restricted to, protective services.Within thirty days after receipt of the initial information, render a written report of his investigation and evaluation to the central registry and to any participating member of the central registry if that is where the complaint originated.Sec. 12. Section 8-546.03, Arizona Revised Statutes, is amended to read: 8-546.03. Central registryThe state department of public w,Marn ECONOMIC SECURITY shall maintain a central registry of reports, investigations.,.and evaluations made under this article. The registry shall contain the information furnished by protective service workers throughout the state.Data shall be kept in the central registry until the child concerned reaches the age of eighteen years.Data and information in the central registry shall be confidential and shall be made available only with the approval of the commission@r DIRECTOR of public w'6lfarn ECONOMIC SECURITY to the juvenile court, social agencies, public health and law enforcement agencies, licensed health practitioners, and health and educational institutions licensed or regulated by the state of Arizona.

Sec. 13. Section 11-297, Arizona Revised Statutes, is amended to read: 11-297. Hospital treatment; application; affidavit

1. Except in emergency cases when immediate hospitalization or medical care is necessary for the preservation of life or limb no person shall be provided hospitalization, medical care or outpatient relief under the provisions of this article without first filing with a member of the board of supervisors of the county in which he resides a statement in writing, subscribed and sworn to under oath, that he is an indigent as shall be defined by rules and regulations of the state departmenF,OF ECONOMIC SECURITY, an unemployable totally dependent upon the state or county government for financial support, or an employable of sworn low income without sufficient funds to provide himself necessary hospitalization and medical care, and that he has been a resident of the county for the preceding twelve months.

2. No person shall be admitted to the hospital or receive relief without an order from a member of the board.

3. Any person who files a false or untrue statement with the board or a member thereof for the purpose of obtaining hospitalization, medical care or outpatient relief for himself, shall be guilty of a misdemeanor.

Sec. 14. Section 12-902, Arizona Revised Statutes, is amended to read: 12-902. Scope of article

1. This article applies to and governs every action to review judicially a final decision of an administrative agency except the state aepartmeRt of public welfare DECISIONS PURSUANT TO TITLE 46, or where the act creating or conferring power on an agency or a separate act provides for judicial review of the agency decisions and prescribes a definite procedure for the review.

2. Unless review is sought of an administrative decision within the time and in the manner provided in this article, the parties to the proceeding before the administrative agency shall be barred from obtaining judicial review of such decision. If under the terms of the law governing procedure before an agency an administrative decision has become final because of failure to file any document in the nature of an objection, protest, petition for hearing or application for administrative review within the time allowed by the law, the decision shall not be subject to judicial review under the provisions of this article except for the purpose of questioning the jurisdiction of the administrative agency over the person or subject matter.

Sec. 15. Section 12-911, Arizona Revised Statutes, is amended to read: 12-911. Powers of trial court

1. The superior court may:With or without bond, unless required by the statute under authority of which the administrative decision was entered, and before or after answer, stay the decision in whole or in part pending final disposition of the case, after notice to the agency and for good cause shown, EXCEPT THAT THE COURT SHALL NOT STAY AN ADMINISTRATIVE DECISION WHEREIN UNEMPLOYMENT COMPENSATION BENEFITS HAVE BEEN ALLOWED TO A CLAIMANT PURSUANT TO TITLE 23, CHAPTER 4.2- Make any order that it deems proper for the amendment, completion or filing of the record of the proceedings of the administrative agency.Allow substitution of parties by reason of marriage, death, bankruptcy, assignment or other cause.Dismiss parties or realign parties plaintiff and defendant.Modify, affirm or reverse the decision in whole or in part.Specify questions or matters requiring further hearing or proceedings and give other proper instructions.When a hearing has been held by the agency, remand for die purpose of taking additional evidence when from the state of the record of the administrative agency or otherwise it appears that such action is just.In the case of affirmance or partial affirmance of an administrative decision requiring payment of money, enter judgment for the amount justified by the record and for costs, upon which execution may issue.

2. Technical errors in the proceedings before the administrative agency or its failure to observe technical rules of evidence shall not constitute grounds for reversal of the decision, unless it appears to the trial court that the error or failure affected the rights of a party and resulted in injustice to him.

3. On motion of a party before rendition of judgment, the trial court shall make findings of fact and state conclusions of law upon which its judgment is based.

Sec. 16. Repeal

Section 15-805, Arizona Revised Statutes, is repealed.

Sec. 17. Section 15-1091, Arizona Revised Statutes, is amended to read: 15-1091. Establishment of advisory council; members; duties; compensation; meetings

1. The state board of education is the state board of vocational education for the purposes of this article.

2. The state board of vocational education shall establish an advisory council for technical-vocational education consisting of representatives appointed from the fields of agriculture, business, industry, labor, the home, the A i, gi:i,a tate emp!Gymei:i,t ewice DEPARTMENT OF ECONOMIC SECURITY, and the state director of vocational educationwho shall act as chairman. The members of the advisory council who represent agriculture, business, industry, labor and the home shall be recommended to the state board of vocational education by the state director of vocational education. The members shall serve at the pleasure of the state board of vocational education.

3. The advisory council shall provide leadership in planning and establishing a program, including curriculum, of technical-vocational education in Arizona.

4. The members of the advisory council shall serve without compensation, EXCEPT FOR TRAVEL AND SUBSISTENCE EXPENSES AS PROVIDED BY LAW FOR OTHER STATE OFFICERS AND EMPLOYEES.

5. Meetings of the advisory council may be called by the state director of vocational education.

Sec. 18. Section 15-1181, Arizona Revised Statutes, is amended to read: 15-1181. Arizona industries for the blind; establishment of program

The state department of publie welfare- ECONOMIC SECURITY may establish and maintain WITHIN ITS REHABILITATION SERVICES SECTION FOR THE BLIND AND VISUALLY IMPAIRED a program of

industries for the blind, the activities of which, as authorized by this article, shall be known as "Arizona Industries for the Blind."

Sec. 19. Section 15-1182, Arizona Revised Statutes, is amended to read: 15-1182. Activities of Arizona industries for the blind

1. For the purposes of the program of industries for the blind authorized by this article, the state department of public w@!farn ECONOMIC SECURITY may equip and operate one or more training centers, one or more workshops, a business enterprise program, and a home industries program for training and employment of adaptable blind persons.

2. The state department of publie welf1ue ECONOMIC SECURITY may devise ways and means for the sale, distribution and marketing of the products of the training centers, workshops and home industries authorized by subsection A. of tflis seetion.

3. The state department of publie welfare ECONOMIC SECURITY may, in addition to the activities authorized by subsections A and B, ef4is s.ictioH, aid individual blind persons or groups of such persons to become self-supporting by supplying materials, equipment or machinery to them, and may also aid them in the sale and distribution of their products.

Sec. 20. Section 15-1183, Arizona Revised Statutes, is amended to read: 15-1183. Compensation of workers; proportion of workers required to be legally blind; workers as state employees

1. The state department of public welfarn ECONOMIC SECURITY may compensate blind and other workers for their work in the training centers, workshops and home industries authorized in subsections A and B of section 15-1182, but a minimum of seventy-five per cent of such workers in each of the training centers, workshops and home industries shall be legally blind as defined in paragraph 1 of section 46-272.

2. Persons participating in activities authorized by this article, and determined by the state department of publie welfare ECONOMIC SECURITY to be blind or otherwise handicapped persons, shall be deemed state employees but shall not be eligible for participation in the state retirement system, or entitled to the benefits of the merit system procedures pertaining to the recruitment and retention of regular administrative employees of the department.

Sec. 21. Section 15-1184, Arizona Revised Statutes, is amended to read: 15-1184. Purchase of products of Arizona industries for the blind by state institutions and departments

When any of the products of Arizona industries for the blind, produced under the supervision and direction of the department of publie welfare ECONOMIC SECURITY, meet the requirements of any state department or institution as to quality, quantity and price, such products shall have preference, and such state departments and institutions shall purchase from the department such products as are required.

Sec. 22. Section 15-1185, Arizona Revised Statutes, is amended to read: 15-1185. Industries for the blind account; disbursements; subsidy funds

1. Proceeds from sales of products of Arizona industries for the blind shall be paid into a non-reverting revolving account, which shall be known as the industries for the blind account.

2. Expenditures for wages and salaries of production workers, inspectors and other employees necessary for the operation of the training centers, workshops or home industries, and for supplies, materials, equipment, equipment repair, overhead costs,and other costs incidental to the conduct of the program may be made from the industries for the blind account.

3. The department of public welfarn ECONOMIC SECURITY may, in addition to the funds paid into the industries for the blind account as provided in subsection A, provide subsidy funds necessary to meet the costs set forth in subsection B from other funds available to the department for rehabilitative purposes.

Sec. 23. Section 15-1186, Arizona Revised Statutes, is amended to read: 15-1186. Prohibition upon disposal of goods labeled or sold as products of the blind without permit; violation; penalty

1. A person, group of persons,-or organization of any description may not sell, market or otherwise dispose of to the public by any means, any goods or articles labeled as made by the blind or sold as products of the blind, either of this state or any other state, without a permit in writing from the state department of fH¼blie welfare ECONOMIC SECURITY upon a form prescribed by the department.

2. Issuance of permits as provided for in subsection A shall be at the discretion of and subject to rules of the department.

3. A person violating any provision of this section is guilty of a misdemeanor punishable by a fine of two hundred dollars, by imprisonment for thirty days, or both.

Sec. 24. Section 23-222, Arizona Revised Statutes, is amended to read:

23-222. Apprenticeship advisory council; membership; qualifications; appointment; terms; compensation; powers and duties

1. There shall be an apprenticeship ADVISORY council, which shall consist of thirteen members who shall be appointed by the aireeter er heaa of the Bepartment of labor, or if there be no 4epartment of labor, by the geernor DIRECTOR OF THE DEPARTMENT OF ECONOMIC SECURITY SUBJECT TO THE APPROVAL OF THE GOVERNOR. Six members shall come from and be representative of the employer groups or organizations, six members shall come from bona fide employee organizations, and there shall be one non-voting public representative notemployed by the state. The official designated by the state board for vocational education to have charge of trade and industrial education, the director or head of the department of labor, if there be such, and the ainstor of the employment servise division of the employment sesttrity sommi.ss.on DEPUTY DIRECTOR OF THE DEPARTMENT OFECONOMIC SECURITY, shall be ex officio members of the council without vote.

2. The term of two representatives of employer groups and the term of two representatives of employee groups shall expire on the first Monday in February of 1956, 1957, 1958, 1959, 1960,and 1961, respectively, except that the term of the non-voting public member shall expire on the first Monday in February, 1958. Thereafter, each member shall be appointed for a term of three years to expire on the first Monday in February. Appointment to fill a vacancy resulting other than from expiration of term shall be for the unexpired portion of the term only.

3. Members of the apprenticeship ADVISORY council not otherwise compensated by public monies shall receive compensation as determined pursuant to section 38-611 while attending meetings of the council for not exceeding four meetings in any fiscal year, or while performing necessary duties authorized by the council.

4. The appointive power designated in subsection A may appoint additional personnel necessary to aid the apprenticeship ADVISORY council in the execution of its functions under this article.

5. At the call of and subject to the approval of the appointive authority the apprenticeship ADVISORY council shall:Designate from its membership a chairman and a secretary, neither of whom shall be an employee of the state.FeFH1td1t1;e RECOMMEND policies for the effective administration of this article.Establish standards for apprenticeship agreements which in no event shall be lower than those prescribed by this article.RECOMMEND rules and regulations necessary to carry out the intent and purpose of this article.Perform other functions relative to apprenticeship as the appointive authority directs.Not less than once each year, make to the appointive authority a report covering the activities and findings of the council, which shall be transmitted to the legislature and given to the public.

Sec. 25. Repeal

Section 23-222.01, Arizona Revised Statutes, is repealed.

Sec. 26. Title 23, chapter 2, article 2, Arizona Revised Statutes, is amended by adding a new section 23-222.01, to read:

23-222.01. Contracts; acceptance and disbursement of federal funds

THE DEPARTMENT OF ECONOMIC SECURITY MAY CONTRACT WITH FEDERAL AGENCIES AND RECEIVE AND DISBURSE FEDERAL FUNDS FOR THE APPRENTICESHIP PROGRAM.

Sec. 27. Section 23-223, Arizona Revised Statutes, is amended to read: 23-223. Quorum

No official action may be taken by the apprenticeship ADVISORY council without the concurrence of a majority of the council. For the purposes of this article, a quorum shall consist of not less than eight representatives appointed under the provisions of this article, not less than four of whom shall be representatives of the employer groups or organizations and four of whom shall be representatives from bona fide employee organizations.

Sec. 28. Section 23-224, Arizona Revised Statutes, is amended to read: 23-224. Joint apprenticeship committees; composition; powers and duties

1. Joint apprenticeship committees shall be approved by the apprenticeship ADVISORY council in any trade or group of trades or individual plants or establishments or political subdivisions in cities or trade areas whenever justified by apprentice APPRENTICESHIP training needs. Such committees shall consist of equal numbers of employer and employee representatives appointed by the respective employer and employee organizations in the trade or group of trades affected. In the case of individual plants or establishments the members of the committee shall be appointed by the employer and the employee organization or organizations, or the apprenticeship ADVISORY counr:il may act as such committee where there is no employee organization.

2. The duties of the joint apprenticeship committe, shall be to establish schedules for work experience training, assist in dev1 10ping wage rates and working conditions for the apprentices, ascertain employer needs in the trade, specify the appropriate ratio of apprentices to journeymen,co Oj,9fB:t€l COOPERATE with school authorities in regard to education of apprentices in technical and theoretical subjects related to their trades and adjust apprenticeship differences.

3. If the employees are not members of a bona fide union, standards of apprenticeship submitted by an employer or establishment conforming to the standards established under this article may be recognized by the state apprenticeship ADVISORY council. Standards shall meet the minimum standards of the state apprenticeship ADVISORY council.

4. Related and supplemental instruction for apprentices, coordination of instruction with job experiences, and the selection and training of teachers and coordinators for such instruction shall be the responsibility of state and local boards responsible for vocational education.Sec. 29. Section 23-501, Arizona Revised Statutes, is amended to read: 23-501. DefinitionsIn this article, unless the context otherwise requires:"Boara" "DEPARTMENT" means the stB:ts eoani of 0eatio11l.@dwation DEPARTMENT OF ECONOMIC SECURITY."Director" means the director of the cli-visioH of '.'OcahonalFsl:iaeiJitation DEPARTMENT."DISABLED PERSON" OR "HANDICAPPED PERSON" MEANS ANY INDIVIDUAL WHO HAS A PHYSICAL OR MENTAL DISABILITY AND A SUBSTANTIAL HANDICAP TO EMPLOYMENT, WHICH IS OF SUCH A NATURE THAT VOCATIONAL REHABILITATION SERVICES MAY REASONABLY BE EXPECTED TO RENDER HIM FIT TO ENGAGE IN A GAINFUL OCCUPATION, INCLUDING A GAINFUL OCCUPATION WHICH IS MORE CONSISTENT WITH HIS CAPACITIES AND ABILITIES, OR FOR WHOM VOCATIONAL REHABILITATION SERVICES ARE NECESSARY FOR THE PURPOSE OF EXTENDED EVALUATION TO DETERMINE REHABILITATION POTENTIAL."Division" means the n of vocational rnJ:iabilitation DEPARTMENT l·F ECONOMIC SECURITY."Maintenanc means money payments not to exceed the estimated cost of subsistence d,ning vocational rehabilitation."Physical restoration" means medical, surgical or therapeutic treatment necessary to correct or reduce the employment handicap of a disabled person and includes medical, psychiatric, dental and surgical treatment, nursing service, hospital care not to exceed ninety days, convalescent home care, drugs, medical and surgical supplies, and prosthetic appliances AND OTHER RELATED SERVICES AS DEFINED IN THE VOCATIONAL REHABILITATION ACT, AS AMENDED."Prosthetic appliance" means an artificial device necessary to support or take the place of a part of the body, or to increase the acuity of a sense organ."Vocational rehabilitation" or "vocational rehabilitation service" means a service determined by the director to be necessary to enable a disabled person to engage in a remunerative occupation and includes medical and vocational diagnosis, vocational guidance, counsel and placement, rehabilitation, training, physical restoration, transportation, occupational licenses, customary occupational tools and equipment, maintenance and training books and materials, FOLLOW UP, EVALUATION AND WORK ADJUSTMENT AND OTHER RELATED SERVICES AS DEFINED IN THE VOCATIONAL REHABILITATION ACT, AS AMENDED.Sec. 30. Section 23-502, Arizona Revised Statutes, is amended to read: 23-502. Rehabilitation servicesThe stat@ l}g,mi gf vgcatim:13J. @Glucatign DEPARTMENT shall maintain a Glivisim:i, gf vm:atim13J. rnhabilitatign, which sh3J.l provide vocational rehabilitation service to disabled persons eligible therefor as provided by this article.Sec. 31. Section 23-503, Arizona Revised Statutes, is amended to read: 23-503. Duties and powersThe di-'tisi:on of voeatioRal rehabi:HtatioR, "mder the general supervision of the state board of 1;oeation aJ.i.lucation,DEPARTMENT shall cooperate in carrying out the purposes of federal statutes pertaining to vocational rehabilitation. The division may adopt methods of administration found by the federal government necessary for the proper and efficient operation of agreements relating to vocational rehabilitation, and shall comply with conditions deemed, necessary to secure the full benefits of such federal statutes. The division may:Cooperate with other departments, DIVISIONS, agencies and institutions in providing for the vocational rehabilitation of disabled persons and studying the problems involved therein, and in establishing, developing and providing programs, facilities and services deemed necessary or desirable.Enter into reciprocal agreements with other states to provide for vocational rehabilitation of residents of the states concerned.Cottdttet research attd compile statistics rnlating to th.i voeatioAal rehabilitation of disabl.icl p.irsoAs.Sec. 32. Section 23-507, Arizona Revised Statutes, is amended to read: 23-507. HearingsA person applying for or receiving vocational rehabilitation service who is aggrieved by an action of the division may appeal to the state board of Ttoeational edueat:ioA DIRECTOR, subject to rules and regulations of theDEPARTMENT.Sec. 33. Section 23-508, Arizona Revised Statutes, is amended to read: 23-508. Administrative fundsThe state treasurer shall be the custodian of monies received from the federal government for the purpose of carrying out any federal law relating to vocational rehabilitation, and shall disburse them and any state monies available for vocational rehabilitation purposes in the manner provided by law.The legislature shall annually appropriate to the di'iision of vocational rehabilitation DEPARTMENT from the general fund such funds as may be necessary to carry out the purposes of this article.

Sec. 34. Title 23, chapter 4, article 1, Arizona Revised Statutes, is amended by adding section 23-609.01, to read:

23-609.01. Hearing officers

"HEARING OFFICER" MEANS A HEARING OFFICER OF THE DEPARTMENT OF ECONOMIC SECURITY.

Sec. 35. Section 23-611, Arizona Revised Statutes, is amended to read:

23-611. Definition

"Commission" OR "EMPLOYMENT SECURITY COMMISSION" OR

"DEPARTMENT" means the employment security commission of f.riwna DEPARTMENT OF ECONOMIC SECURITY.

Sec. 36. Section 23-642, Arizona Revised Statutes, is amended to read: 23-642. Compromise of claims for contributions

1. The commission shall administer this chapter and may adopt, amend or rescind rules and regulations, employ persons, make expenditures, i:eEJ:uire reports, make iwrestigations and take such other action as it d@@ms necessary or suitable to that end.

2. The commission shall perfect its om organaation, and shall prescribe methods of procedure in accordanc@ with the pro'lisions of this chapter. The commission shall have an official seal which shall be judicially noticed.

-e. Not later than ninety days after the close of the fiscal year, the commission shall submit to the governor a report covering the · administration and op@ration of this chapt@r during th@ fiscal year ending June 30 priOf to the report, and shall make such recommendations for amendments to this chapter as it d@@ms proper.·

-I}.- The commission DEPARTMENT may compromise a claim for contributions or payments in lieu of contributions more than two years in arrears, or an action in relation thereto. When a compromise is made, by. the commission, there shall be placed in the files thereof a statement of the amount of contributions or payments in lieu of contributions due, the amount assessed, the amount of additional contributions, penalty and interest imposed by law in consequence of the neglect or delinquency of the employer in question and the amount actually paid in accordance with the terms of the compromise.

Sec. 37. Section 23-648, Arizona Revised Statutes, is amended to read: 23-648. Manpower services

1. The Arizona state employment seryice shall establish and maintain THERE SHALL BE ESTABLISHED AND MAINTAINED BY THE DEPARTMENT free public employment offices in such number and in such places as may be necessary for the proper administration of this chapter and for the purpose of performing such duties as are within the purview of the act of congress entitled "an act to provide for theestablishment of a national employment system and for cooperation with the states in the promotion of such system, and for other purposes" approved June 6, 1933.

2. The provisions of the act of congress, as amended, referred to in subsection A, are accepted by this state in conformity with section 4 of such act, and this state will observe and comply with the requirements thereof.

3. The employment secmity commission of this state DEPARTMENT is designated and constituted the agency of this state for the purpose of the act of congress, as amended, referred to in subsection A. The commission DEPARTMENT shall cooperate with any official or agency of the United States having powers or duties under the provisions of the act of congress, as amended, and shall do and perform all things necessary to secure to this state the benefits of that act, as amended, in the promotion and maintenance of a system of public employment offices.

4. The Arizona state emfJloyment service division shall l:Je administered l:Jy a full time safaried director whose apfJointment shall l:Je made in accordanc@ with regulations fJHlscril:Jed l:Jy the director of the United StB.tes employment seniee and with the protisions of this chapter-.

Sec. 38. Section 23-649, Arizona Revised Statutes, is amended to read: 23-649. Acquisition of lands and buildings

1. The commission DEPARTMENT may acquire for and in the name of the state by lease purchase agreement, or otherwise, lands or buildings for the purpose of providing office space for the commission UNITS OF THE DEPARTMENT PERFORMING FUNCTIONS PROVIDED BY THIS CHAPTER at such places as the commission DEPARTMENT finds necessary and suitable.

2. An agreement made for the purchase of the premises mentioned in subsection A of this section shall be subject to the approval of the attorney general as to form and as to title thereto and shall not subject the state to liability for payment of the purchase price or any part or portion thereof except from monies allocated to the state by the United States department oflabor for the administration of this chapter.

3. All monies received from the United States for the payments authorized by this section for lands and buildings shall be deposited in the employment security administration fund in the state treasury and are appropriated therefrom for purposes of this chapter. Notwithstanding anyprovision of this chapter, monies received from the unemployment trust fund pursuant to section 903 of the social security act, as amended, are not liable or subject to appropriation, except in accordance with the provisions of subsection E of section 23-704.

4. If the premises are purchased pursuant to this chapter, the employment secunty commission or such other department of the state performing its functions, shall be housed therein, or if it is desirable to move the employment security commission, other substantially similar space will be furnished by the state to the commission without further payment therefor by the United States.Sec. 39. Section 23-671, Arizona Revised Statutes, is amended to read: 23-671. Appeal tribunals; duties; membership and compensationThe eommissior:1. DEPARTMENT shall establish one or more impartial appeal tribunals to hear and decide disputed claims. Such appeal tribunals shall consist in each case of three members. One of the members shall be a salaried examiner selected in aoosi:aans@ with se@timl: 23 650 ON A NONPARTISAN MERIT BASIS, who shall serve as chairman, one member shall be a representative of employers, and one member shall be a representative of employees. Each of the latter two members shall serve at the pleasure of the oommission DEPARTMENT and shall receive compensation as provided pursuant to section 38-611. No person shall participate on behalf of the eommission DEPARTMENT in any case in which he is an interested party. The oommission may a@signat@ ah@rnat@s to s@n'@ in th@ abs@no@ or aisqualification of any member of an app@al tribmml. In no case shall the hearing proceed unless the chairman of the appeal tribunal is present.Sec. 40. Section 23-672, Arizona Revised Statutes, is amended to read: 23-672. Review of appeal tribunal decisionsThe commission DIRECTOR, on ftsHIS own motion, may affirm, modify, REVERSE or set aside a decision of an appeal tribunal on the basis of evidence previously submitted in the case, or may direct the taking of additional evidence or may permit any of the parties to the decision to initiate further appeals. befefe it. · The commission DIRECTOR shall permit further appeal by any party interested in a decision of an appeal tribunal which is not unanimous, or by the deputy whose decision has been overruled or modified by an appeal tribunal. The commission DIRECTOR may remove to #self. HIMSELF or transfer to another appeal tribunal the proceedings of any claim pending before an appeal tribunal. -A-proceeGliHg so rnmoveGl to the commissioH shall be heani in aocordance - with the reqnirementg of gection 23 674 Th.: commission sha:Jl promptly notify the interestea parties of its finaings and deeision:s, whieh shall become final unless petition for judicial review is filed within the time an:d in the mann:er pro'liaea in section 23 681,.Sec. 41. Section 23-673, Arizona Revised Statutes, is amended to read: 23-673. Determination of claim on unemployment due to labor disputeIn any case in which the payment or denial of benefits will be determined by section 23-777, the deputy shall proceed as provided in section 23-773. His examination of the case may be by investigation or by affording the parties reasonable opportunity for a fair hearing.The determination of the deputy thereupon shall be treated for all purposes as any other determination of a deputy made pursuant to section 23-773, except that the commission sha:Jl psrmit timsly app.:al: therefrom aHd shall remov.: to itself the proceedings on such appeal A TIMELY APPEAL THEREFROM IS REMOVED TO THE DIRECTOR.Slewh proceedings as am rnmo1;:ed to the commission shall be had in accoraance with section 23 674. If the determination appealed from was based on a fair hearing, the coHHIH.ssion HEARING OFFICER may make HIS RECOMMENDATION AND THE DIRECTOR MAY MAKE HIS

decision on the basis of the evidence previously submitted.

Sec. 42. Section 23-674, Arizona Revised Statutes, is amended to read: 23-674. Procedure in rendering decisions; rights of parties

1. In rendering its decisions, the oommission APPEAL TRIBUNAL after reasonable notice shall afford all parties an opportunity for hearing. a member of the commission or ;u1 employee designated by the eommission. The notice shall state the time, place and issues involved but if by reason of the nature of the proceeding the issues cannot be fully stated in advance of the hearing, or if subsequent amendment of the issues is necessary, they shall be fully stated as soon as practicable, and opportunity shall be afforded all parties to present evidence and argument with respect thereto. The commission shall prepare an: official reeora whlch shall incluae testimony and tsi:x.hibits, but shorthand Hotes shaH Hot be traHseribed uHless reEfHi-red for eourt review. THE PROCEEDINGS SHALL BE RECORDED, BUT TRANSCRIPTS NEED NOT BE PREPARED UNLESS REQUIRED BY THE DIRECTOR. Informal disposition may be made of any case by stipulation, agreed settlement, consent order or default.

2. The eomrnissioH,TRIBUNAL may admit and give probative effect to evidence which possesses probative value commonly accepted by reasonably prudent men in the conduct of their affairs. It shall give effect to the rules of privilege recognized by law. It may exclude incompetent, irrelevant, immaterial and unduly repetitious evidence. All evidence, including records and documents in the possession of the eommisgim:1. DEPARTMENT of which it desires to avail itself, shall be offered and made a part of the record in the case, and no other factual information or evidence shall be considered in the determination of the case. Documentary evidence may be received in the form of copies or excerpts, or by incorporation by reference. The oommission TRIBUNAL may take notice of judicially cognizable facts and in addition may take notice of general, technical or scientific facts within its specialized knowledge. Parties shall be notified either before or during hearing, or by reference in preliminary reports or otherwise, of the material so noticed, and they shall be afforded an opportunity to contest the facts so noticed. The commission TRIBUNAL may utilize its experience, technical competence and specialized knowledge in the evaluation of the evidence presented to it. Each party shall have the right of cross-examination of the witnesses who testify and shall have the right to submit rebuttal evidence.

1. When a majority of the members of the commission who arn to render the final decision have not h@ard or mad th@ €Wid@nce, the d@cision, if adverse to a party to the proeeeding other than the eommission itself, shall not be made until a proposal for decision, including findings of faot and conch:1sions of law, has been served upon the parties, and an opport1:1nity has been afforded to eaoh party adversely affected to ob:ject and prnsent argument to a majority of the members who are to render the deoision, who shall personally oonsider the whole record or suoh portions thereof as may be cited by the parties., C. Every decision and order adverse to a party to the proeees.ing PROCEEDINGS shall be in writing or stated in the record and shall be accompanied by findings of fact and conclusions of law. The findings of fact shall consist of a concise statement of the conclusions upon each contested issue of fact. Parties to the proceeding shall be notified of the decision and order in person or by mail. A copy of the decision and order and aeeompanying findings and coneh1sions shall be delivered or mailed. t1pon request to each party or his attorney of reeord.Sec. 43. Section 23-704, Arizona Revised Statutes, is amended to read: 23-704. Requisitions and withdrawals from accounts in unemploymentcompensation fund; conditions of expenditure for benefits,refunds and administrationMonies requisitioned from this state's account in the unemployment trust fund shall be used exclusively for the payment of benefits and for refunds pursuant to this chapter in accordance with AUTHORIZED regulations prns.:ribed by the commission, except that monies credited to this state's account in the unemployment trust fund pursuant to section 903 of the social security act, as amended, shall be used exclusively as provided in subsection E of this section. The eommissioa DEPARTMENT from time to time shall requisition from the unemployment trust fund such amounts, not exceeding the amounts standing to the state's account therein, as it deems necessary for the payment of benefits and refunds for a reasonable future period. The FequisitioHs shall bear the signatures of not l0ss th.m. two m0mbers of the commission and th@ oount.ir signaturn of the st!lte treasurer. -Upon receipt thereof the treasurer shall deposit the monies in the benefit account and shall pay warrants for payment of benefits and refunds solely from the benefit account. If the eomm,sswn DEPARTMENT believes more efficient administration will result from such practice, it, in turn, may withdraw from the benefit account amounts it deems necessary for payment of benefits for a reasonable future period and deposit such amounts to the account of the commission DEPARTMENT in a bank or public depository of its choosing and issue checks against it in payment of benefits to claimants entitled thereto under law. The monies shall be secured by the depository to the same extent and in the same manner as required by the general depository law of the state.Expenditures of monies in the benefit account and refunds from the clearing account shall not be subject to any provisions of law requiring specific appropriations or other formal release by state officers of monies in their custody.All claims, warrants or other instruments utilized by the commission DEPARTMENT for the payment of benefits and refunds shall bear the signature of an employee designated for that purpose by the eommission al'ld the coul'lter sigl'latuni of a m0mb@r of th@ eommissioH DIRECTOR.Any balance of monies requisitioned from the unemployment trust fund which remains unclaimed or unpaid in the benefit account after expiration of the period for which the sums were requisitioned either shall be deducted from estimates for, and may be utilized for the payment of, benefits and refunds during succeeding periods, or, in the discretion of the commissiol'I DIRECTOR, shall be redeposited with the secretary of the treasury of the United States to the credit of this state's account in the unemployment trust fund established and maintained pursuant to section 904 of the social security act, as amended.Monies credited to the account of this state in the unemployment trust fund by the secretary of the treasury of the United States pursuant to section 903 of the social security act, as amended, may be requisitioned and used only in accordance with the following requirements:

l. Except as provided in paragraph 2, such monies shall be used only in the payment of benefits exclusive of administrative expense.

1. Such monies may be requisitioned and used for the payment of expenses incurred for the administration of this employment seourity law and public employm,mt offices CHAPTER if and only if the monies are requisitioned and expenses are incurred pursuant to and after the enactment of a state appropriation law which:Specifies the purposes for which such monies are appropriated and the amounts appropriated therefor,Limits the period within which such monies may be obligated to a period ending not more than two years after the date of the enactment of the appropriation law, andLimits the amount which may be obligated during a fiscal year to an amount which does not exceed the limitations on amount as prescribed by section 903 of the social security act, as amended. For the purposes of this subsection, amounts obligated during any such fiscal year shall be charged against equivalent amounts which were first credited and which are not already so charged, in accordance with the requirements for and limitations on charging prescribed by section 903 of the social security act, as amended.

2. Monies appropriated for the payment of the expenses of administration pursuant to this subsection shall be requisitioned as needed for the payment of obligations incurred under such appropriation and, upon requisition, shall be deposited in the employment security administration fund from which such payments shall be made. The oommission DEPARTMENT shall maintain a separate record of the deposit, obligation, expenditure,and return of funds so deposited. Monies so deposited shall, until expended, remain a part of the unemployment compensation fund and, if they will not be expended they shall be returned promptly to the secretary of the treasury for credit to this state's account in the unemployment trust fund.Sec. 44. Section 23-724, Arizona Revised Statutes, is amended to read: 23-724. Liability determinations; review; finalityWhen the commission DEPARTMENT makes a determination, which determination shall be made either on the motion of the eofflfflissioR DEPARTMENT or upon application of an employing unit, that an employing unit constitutes an employer as defined in section 23-613 or that services performed for or in connection with the business of an employing unit constitute employment as defined in section 23-615 which is not exempt under section 23-617 or that remuneration for services constitutes wages as defined in section 23-622, the determination shall become final with respect to the employing unit fifteen days after written notice is served personally or by rngist@rna CERTIFIED mail addressed to the last known address of the employing unit, unless within such time the employing unit files a written request for reconsideration.When request for reconsideration is filed as prescribed in subsection A OF THIS SECTION, a reconsidered determination shall be made. The reconsidered determination shall become final with respect to the employing unit fifteen days after written notice thereof is served personally or by registerna CERTIFIED mail addressed to the last known address of the employing unit, unless within such time the employing unit files with the sommission DIRECTOR a written petition for hearing.Notwithstanding any other provision of this ehflflter LAW, the eOHlHlission DIRECTOR may initiate hearings to obtain information AND REQUIRE A HEARING OFFICER TO HOLD HEARINGS AND ISSUE RECOMMENDATIONS as to whether an employing unit constitutes an employer or whether services performed for or in connection with the business of an employing unit constitute employment or whether remuneration for services paid by an employing unit constitutes wages.If petition for hearing is filed as prescribed in subsection B OF THIS SECTION or if the commission initiat@s a h@aring DIRECTOR ORDERS A HEARING under subsection C OF THIS SECTION, the affected employing unit shall be afforded an opportunity for hearing and thereafter furnished with a decision. as pr@scrie@a in s1,1ction 23 67<1. The decision shall become final with respect to the employing unit unless petition for judicial review is filed within the time and in the manner provided in section B-68-t 41-1993 AND TITLE 12, CHAPTER 7, ARTICLE 6.The determination or aeeisioR of the cornfflissioR DEPARTMENT OR DECISION OF THE DIRECTOR, together with the record therein made, shall be admissible in any subsequent judicial proceeding involving liability for contributions. A determination or decision that an employing unit is liable which has become final shall be conclusive and binding upon the employing unit and shall not be reconsidered in proceedings brought

before the eomrnission DEPARTMENT OR A HEARING OFFICER.

Sec. 45. Section 23-732, Arizona Revised Statutes, is amended to read: 23-732. Annual notice to employer of contribution rate; procedure for review and redetermination; quarterly notification

1. The eomrnissioa DEPARTMENT shall promptly notify each employer of his rate of contributions as determined for any calendar year. The determination shall become conclusive and binding upon the employer unless, within fifteen days after the mailing of notice thereof to his last known address or in the absence of mailing, within fifteen days after delivery of the notice, the employer files an application for review and redetermination, setting forth his reasons therefor. If the eommission grants a revi.iw, th@ @mpfoy@r shall b@ promptly notifieEl thereof anEl shall be granteEl an opportunity for a fair h@aring THE DEPARTMENT SHALL RECONSIDER THE RATE, but no employer shall in any proceeding involving his rate of contributions or contribution liability contest the chargeability to his account of any benefits paid in accordance with a determination, redetermination or decision pursuant to section 23-773, and determined to be chargeable to the employer's account pursuant to section 23-727, except upon the ground that the services on the basis of which the benefits were found to be chargeable did not constitute services performed in employment for him and only in the event that he was not a party to the determination, redetermination or decision or to any other proceedings under this chapter in which the character of the services was determined. The employer shall be promptly notified of the eommissioH'g DEPARTMENT'S denial of his application, or of the eoHlH½ission's DEPARTMENT'S redetermination, both of which shall become final unless p@titioH for judieial review is filed withiR the time aHEl iH the prO'AEleEl in seetion 23 681 · WITHIN FIFTEEN DAYS AFTER MAILING OR DELIVERY OF NOTIFICATION AN APPEAL IS FILEDWITH THE DIRECTOR.

2. The eomrnission DEPARTMENT may give quarterly notification to employers of benefits paid and chargeable to their accounts or of the status of such accounts, and such notification, in the absence of an application for redetermination filed within fifteen days after mailing, shall become conclusive and binding upon the employer for all purposes. A REDETERMJNATION OR DENIAL OF AN APPLICATION BY THE DEPARTMENT SHALL BECOME FINAL UNLESS WITHIN FIFTEEN DAYS AFTER MAILING OR DELIVERY THEREOF AN APPEAL IS FILED WITH THE DIRECTOR. The redetermination maEle after notiee aad opportunity for h@aring, and th@ commission's finElittg of fuet iRoonneotion theFewith, may be introduced in any subsequent administrative or judicial proceedings involving the determination of the rate of contributions of any employer for any calendar year. ttnd sh!!:!! be eHtitled to the same finality as is prmided in this section with respect to the, findiHgs of faet mttde by the comffiission in proceedings to redetermine the contribution rate of an employer.Sec. 46. Section 23-741, Arizona Revised Statutes, is amended to read: 23-741. Payment of contribution under protest; petition for reductionof contribution; action to recover paymentAn employer aggrieved by a contribution required by this chapter shall pay it before the delinquent date and shall at the same time give notice to the eommis:lieH- DEPARTMENT that all or part of the payment is made under protest. The notice shall be in writing, addressed to the commission DEPARTMENT, stating the reasons for protest and that all or a portion of the payment is protested. Within ten days thereafter the employer may petition for a hearing RECONSIDERATION, setting forth the reasons why the petition should be granted and the amount by which the contribution should be reduced. The commission DEPARTMENT shall grant the hearing, 1Nhio h shall be not later than twenty days after filing the petition, and shaJl notify th.: p.:tition.:r of th.: tim.: ana plaoe thereof. Aft.:r ta.: h.:aring th.: co!+ll11ission RECONSIDER THE MATTER AND shall make an appropriate order and shall furnish a copy thereof to the petitioner.Within twenty days after entry of the order the petitioner may bring an action against the oommissior. DEPARTMENT in the superior court, or in the United States district court when requisite jurisdiction exists, to recover the payment claimed invalid.The procedure and the right of appeal from a judgment entered therein shall be subject to the rules applicable to civil actions, but no judgment for the refund of the contributions shall provide for interest thereon.If final judgment is rendered in favor of the employer, the commission DEPARTMENT shall refund from the clearing account of the fund the amount found by the judgment to have been invalid or illegally collected.

Sec. 47. Section 23-772, Arizona Revised Statutes, is amended to read:

23-772. Claims for benefits; notice to employer of initial claim; posting printed statements dealing with claims

1. Claims for benefits shall be made in accordance with such regulations as the somm-ission DEPARTMENT prescribes.

2. All base period employers of a claimant for benefits shall be promptly notified when a claimant files an initial claim for benefits during a period of unemployment.

3. Each employer shall post and maintain printed statements "6Hlte­ reg1,1lations of the sommission dealing with claims for benefits in places readily accessible to individuals in his service, and shall make available to each individual at the time he becomes unemployed, a printed statement of s1,wh regulatioBs DEALING WITH CLAIMS FOR BENEFITS. Printed statements shall be supplied by the sommissioB DEPARTMENT to each employer without cost.

Sec. 48. Section 23-773, Arizona Revised Statutes, is amended to read: 23-773. Examination and determination of claims

1. A representative designated by the sommissioB DEPARTMENT as a deputy shall promptly examine any claim for benefits and, on the basis of the facts found by him, shall determine whether or not the claim is valid. If the claim is valid, the deputy shall also determine the week with respect to which the benefit year shall commence, the weekly benefit amount payable and the maximum duration thereof.

2. The deputy shall promptly notify the claimant and any other interested parties of the determination and the reasons therefor. Unless the claimant or an interested party, within seven calendar days after the delivery of notification, or within ten calendar days after notification was mailed to his last known address, files an appeal from the determination, it shall become final, and benefits shall be paid or denied in accordance therewith. If aB appeal is duly fil@d, beBefits v,rith rnspest to the period prior to the f1Bal desisioB of the sommission shall be paid.only after the d@sisioB. If an appeal tribunal affirms a determination of the deputy allowing benefits, or the GOmmissim:i. DIRECTOR affirms the tieeisisB sf an appeal tribuBal A DETERMINATION OR DECISION allowing benefits, such benefits shall be paid regardless of any appeal which may thereafter be taken, but if such decision is finally reversed, no employer's account shall be charged with benefits so paid.

3. The deputy may refer the claim or any question involved therein to an appeal tribunal-:-OR TO THE DIRECTOR. or to th@ commission The ttppeal tribunal or the eommission shall make its deeision v.rith rnsp@et thereto in aeeordanee with the proeedure pmvided by seetion 23 774.· THE APPEAL TRIBUNAL MAY REFER THE CLAIM OR ANY QUESTION INVOLVED THEREIN TO THE DIRECTOR. THE DIRECTOR MAY REMOVE TO HIMSELF OR TO AN APPEAL TRIBUNAL ANY CLAIM OR QUESTION INVOLVED THEREIN WHICH IS PENDING BEFORE A DEPUTY.

Sec. 49. Section 23-774, Arizona Revised Statutes, is amended to read: 23-774. Notice of tribunal decision on initial claims determination; finality

Unless an appeal is withdrawn, an appeal tribunal, after affording the parties reasonable opportunity for a fair hearing, shall affirm, REVERSE or modify the findings of fact and decision of the deputy. The parties shall be duly notified of the tribunal's decision together with its reasons therefor and the decision shall be deemed to be the firrnl deeision of the eornrnission BECOME FINAL unless within ten days after the date of notification or mailing of the decision f1:1rther appeal is initiated pursuant to seeti:on 23 672 AN APPEAL TO THE DIRECTOR IS FILED.

Sec. 50. Section 23-782, Arizona Revised Statutes, is amended to read: 23-782. Payment of benefits

All benefits provided by this chapter shall be payable from the unemployment compensation fund. All benefits shall be paid through 0 loymer1t offiees m aeeoraanee with sueh regulations as the eommission pr@scrib.is OFFICES OF THE DEPARTMENT OF ECONOMIC SECURITY.

Sec. 51. Section 36-715, Arizona Revised Statutes, is amended to read: 36-715. Costs of removal of persons to another state or country

When any person who has communicable or contagious tuberculosis and who has relatives, friends or a public agency willing to undertake the obligation to support him or to aid in supporting him, in any other state or country, the tuberculosis control officer, subject to the regulations of the board, may furnish him with transportation to such state or country if in his judgment the interest of the state of Arizona and the welfare of such

person will be promoted thereby. The expense of such transportation shall be paid by the state welfaf.@. department OF ECONOMIC SECURITY out of funds appropriated to it for the purpose of carrying out the provisions of this article.

Sec. 52. Section 36-716, Arizona Revised Statutes, is amended to read: 36-716. Paymentof assistance

Any person having communicable or contagious tuberculosis, or who is still under medical treatment for tuberculosis prior to release for employment and who needs or whose family needs financial assistance while the person is being treated for tuberculosis either at home or in an institution within or without the state recommended for the person's care by the tuberculosis control officer, shall be referred to the state \cifore department OF ECONOMIC SECURITY. The welfare department shall determine and furnish such -weltttfe assistance as may be necessary to provide adequate support for those who have a legal claim for support or care from such person, and for the person himself provided the tuberculosis control officer has approved such person or the member or members of his family for home care.

Sec. 53. Section 41-601, Arizona Revised Statutes, is amended to read: 41-601. Definitions

In this article, unless the context otherwise requires:

1. "Coramissioa" ra.iaas ths Ari;waa Y@t@raas' service eoraraissioa.

1. "DEPARTMENT" MEANS THE DEPARTMENT OF ECONOMIC SECURITY.

2. "Director" means the