HB 2782 Summary

• Establishes a homeless shelter and services fund administered by the Department of Public Safety for substance abuse treatment, mental health treatment, outreach teams, shelter, transitional housing, and grants with performance-based metrics tracking housing stability, employment, and recidivism.

• Creates a drug-free homeless service zone within 300 feet of homeless service facilities with enhanced criminal penalties for drug sales (additional 1-year sentence) and makes it a class 1 misdemeanor for facility operators to allow drug possession or use.

• Transfers $75 million from the housing trust fund to the homeless shelter and services fund, plus $50 million to Arizona health care cost containment system for five secure behavioral health residential facilities, $5 million for an auditor general special audit, and $10 million for medicated assisted treatment.

• Requires the Auditor General to conduct a special audit by December 31, 2025 examining all state, local, and federal expenditures on homeless programs and services, including law enforcement costs and contract award processes, with a report due to the governor and legislature.

• Prohibits political subdivisions from adopting policies that discourage enforcement of ordinances against public camping and sleeping; requires warning notices instead of citations and offers services as alternatives; establishes liability protections for private campground owners.