AZ SB1537

Establishes licensure requirements for transitional housing facilities that serve individuals transitioning from incarceration to independent living, with facilities providing job training, employment services, housing, meals, and hygiene necessities at no cost to residents.

Requires the Department of Health Services to adopt minimum standards for licensure including policies on abstinence from alcohol and drugs, medication-assisted treatment access, resident rights, fire safety, discharge planning, and neighborhood impact measures.

Mandates annual inspections by the department and authorizes civil penalties up to $1,000 per violation for operating without a license or violating licensing requirements; operating without a license is classified as a Class 6 felony.

Requires transitional housing facilities to notify the department within one business day of resident deaths requiring reporting, sex-related crimes, and to ensure sex offender residents register as required by law.

Establishes licensing fees deposited to the health services licensing fund (90%) and state general fund (10%), and requires facilities previously licensed as sober living homes to transition to transitional housing facility licensure within 30 days of rule adoption.