AZ HB2707

Creates probation failure reduction incentive payments for counties based on reducing probation failure rates compared to historical baselines from calendar years 2008, 2015, and 2021, with payments calculated at 45% of the marginal cost of incarceration.

Requires counties to distribute incentive payments as follows: 60% to adult probation departments for evidence-based practices, 25% for performance-based bonuses for probation officers, and 15% retained for administrative and data collection purposes.

Mandates adult probation departments use funds for evidence-based supervision and rehabilitation services including risk assessments, intermediate sanctions, drug and alcohol treatment, mental health services, job training, and hiring additional probation personnel.

Requires annual reporting by the Administrative Office of the Courts to the Governor and Legislature beginning July 1, 2023, including probation revocation rates, conviction rates during supervision, and effectiveness of programs in reducing probationers returning to prison.

Establishes outcome-based tracking measures for probation departments including percentage of probationers supervised under evidence-based practices, successful completion rates, and accounting of all monies received.