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SB1162 • 2026

health care institutions; licensing; complaints

SB1162 - (NOW: health care institutions; licensing; compliance)

Healthcare
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Hildy Angius, Carine Werner
Last action
2026-04-22
Official status
House committee of the whole
Effective date
Not listed

Plain English Breakdown

The official source does not provide details on how the agencies will coordinate or what specific actions they must take beyond identifying overlaps.

Health Care Institutions; Licensing and Complaints

This bill requires the Department of Health Services (DHS) and Arizona's Medicaid agency to work together to review licensing standards for health care institutions, identify areas where their rules overlap, and suggest ways to simplify processes without compromising safety.

What This Bill Does

  • Requires DHS to license and monitor health care institutions to follow state laws.
  • Asks DHS and the Medicaid agency (AHCCCS) to work together to find overlapping rules related to licensing standards for health care institutions.
  • Instructs both agencies to look at areas like licensing requirements, on-site inspections, data collection, and enforcement processes.
  • Requires both agencies to suggest ways to reduce unnecessary paperwork or steps while keeping patients safe.
  • Needs DHS to write a report every four years about their findings and suggestions for changes.

Who It Names or Affects

  • Health care institutions in Arizona
  • The Department of Health Services (DHS)
  • Arizona's Medicaid agency (AHCCCS)

Terms To Know

health care institution
A place that provides medical or health-related services, like hospitals or clinics.
licensing standards
Rules set by the government to make sure places providing health care meet certain safety and quality requirements before they can open or operate.

Limits and Unknowns

  • The bill does not specify what happens if a complaint is received more than 12 months after an incident.
  • It removes DHS's ability to do some preliminary reviews of complaints without further investigation.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

Plain English: Fifty-seventh Legislature Second Regular Session COMMITTEE ON HEALTH & HUMAN SERVICES HOUSE OF REPRESENTATIVES AMENDMENTS TO S.B.

  • Fifty-seventh Legislature Second Regular Session COMMITTEE ON HEALTH & HUMAN SERVICES HOUSE OF REPRESENTATIVES AMENDMENTS TO S.B.
  • 1162 (Reference to Senate engrossed bill) The bill as proposed to be amended is reprinted as follows: 1 Section 1.
  • Title 36, chapter 4, article 1, Arizona Revised 2 Statutes, is amended by adding section 36-405.04, to read: 3 36-405.04.
  • Licensing and monitoring of health care 4 institutions; joint review of monitoring and 5 compliance functions; reporting requirement 6 A.
  • This amendment summary is using official source text because generated interpretation was skipped for this run.

Plain English: Fifty-seventh Legislature Health & Human Services Second Regular Session S.B.

  • Fifty-seventh Legislature Health & Human Services Second Regular Session S.B.
  • 1162 PROPOSED HOUSE OF REPRESENTATIVES AMENDMENTS TO S.B.
  • 1162 (Reference to Senate engrossed bill) The bill as proposed to be amended is reprinted as follows: 1 Section 1.
  • Title 36, chapter 4, article 1, Arizona Revised 2 Statutes, is amended by adding section 36-405.04, to read: 3 36-405.04.
  • This amendment summary is using official source text because generated interpretation was skipped for this run.

Plain English: The amendment updates the definition of a behavioral health technician and allows them to provide services based on their training, delegation, and supervision.

  • Updates the definition of 'behavioral health technician' in Arizona Revised Statutes.
  • Allows behavioral health technicians to provide services consistent with their training, delegation, and supervision.
  • The full extent of changes to policies and procedures for behavioral health technicians is not fully detailed in the provided amendment text.

Plain English: Fifty-seventh Legislature Health and Human Services Second Regular Session S.B.

  • Fifty-seventh Legislature Health and Human Services Second Regular Session S.B.
  • 1162 PROPOSED SENATE AMENDMENTS TO S.B.
  • 1162 (Reference to printed bill) The bill as proposed to be amended is reprinted as follows: 1 Section 1.
  • Title 36, chapter 4, article 1, Arizona Revised 2 Statutes, is amended by adding section 36-405.04, to read: 3 36-405.04.
  • This amendment summary is using official source text because generated interpretation was skipped for this run.

Plain English: The amendment changes how health care institutions are licensed and monitored in Arizona, focusing on coordination between the Department and AHCCCS to avoid duplication and reduce administrative burdens.

  • Adds a requirement for the Department and AHCCCS to coordinate their monitoring and compliance functions related to health care institution licensing standards.
  • Allows the Department to conduct off-site preliminary reviews of complaints or self-reports before deciding if an on-site inspection is necessary.
  • Closes complaints without further investigation if the review confirms that the licensee has implemented systems making future violations unlikely and provides sufficient evidence of compliance.
  • The amendment text does not provide specific details about how coordination between the Department and AHCCCS will be achieved or what constitutes 'sufficient evidence' for complaint closure.

Bill History

  1. 2026-04-22 House

    House committee of the whole

  2. 2026-03-24 House

    House minority caucus

  3. 2026-03-24 House

    House majority caucus

  4. 2026-03-09 House

    House second read

  5. 2026-03-05 House

    House Rules: C&P

  6. 2026-03-05 House

    House Health & Human Services: DPA

  7. 2026-03-05 House

    House first read

  8. 2026-03-02 House

    Transmitted to House

  9. 2026-03-02 Senate

    Senate third read passed

  10. 2026-03-02 Senate

    Senate committee of the whole

  11. 2026-02-10 Senate

    Senate minority caucus

  12. 2026-02-10 Senate

    Senate majority caucus

  13. 2026-01-20 Senate

    Senate second read

  14. 2026-01-15 Senate

    Senate Rules: PFC

  15. 2026-01-15 Senate

    Senate Health and Human Services: DPA

  16. 2026-01-15 Senate

    Senate first read

Official Summary Text

SB1162 - 572R - Senate Fact Sheet

Assigned to
HHS������������������������������������������������������������������������������������������������ AS
PASSED BY COMMITTEE

ARIZONA STATE SENATE

Fifty-Seventh
Legislature, Second Regular Session

AMENDED

FACT SHEET FOR
S.B. 1162

health care
institutions; licensing; complaints

Purpose

Requires the
Department of Health Services (DHS) and the Arizona Health Care Cost
Containment System (AHCCCS) to coordinate to review each agency's monitoring
and compliance functions to identify areas of overlap related to health care
institution licensing standards.

Background

DHS is the
agency responsible for licensing and oversight of all health care institutions
in Arizona, including enforcing statutes, rules and regulations governing
health care institutions. DHS may review and approve plans and specifications,
access books and records and conduct inspections and investigations to
determine compliance with licensing standards. DHS may also develop facility manuals
and guides to health care institutions and the general public (
A.R.S.

� 36-406
).

AHCCCS serves as
Arizona's Medicaid agency which offers qualifying Arizona residents access to
healthcare programs. AHCCCS contracts with health professionals to provide
medically necessary health and medical services to eligible members and may establish
eligibility and enrollment processes and implement systems related to fraud
prevention, quality assurance and contractor compliance (
A.R.S. � 36-2903
).

There is no
anticipated fiscal impact to the state General Fund associated with this
legislation
.

Provisions

1.

Requires DHS to license and monitor the operation of health care
institutions to ensure compliance with applicable statutes.

2.

Requires DHS and AHCCCS to coordinate to review each agency's monitoring
and compliance functions to identify areas of overlap related to health care
institution licensing standards.

3.

Requires
the review, at a minimum, to include:

a)

licensing, certification and enrollment requirements;

b)

on-site surveys, inspections, audits and other compliance activities;

c)

data collection and reporting requirements; and

d)

corrective
action and enforcement processes relating to health care institutions.

4.

Instructs
DHS and AHCCCS to:

a)

identify opportunities to eliminate or reduce duplicative, redundant or
inconsistent requirements while maintaining patient safety and appropriate
regulatory oversight; and

b)

coordinate
or align policies, procedures and operational practices to minimize
administrative burdens on health care institutions.

5.

Specifies that the review requirement does not require any action
inconsistent with federal Medicaid conditions of participation, conditions of
payment or other applicable federal requirements.

6.

Requires DHS, by December 31, 2026, and October 31 every four years
thereafter, to submit a written report to the Health and Humans Services
Committees of the Senate and House of Representatives, or their successor
committees, that:

a)

summarizes the findings of the review;

b)

identifies areas of duplication or overlap; and

c)

includes
recommendations for statutory, regulatory or administrative changes.

7.

Becomes effective on the general effective date.

Amendments Adopted by Committee

1.

Requires DHS and AHCCCS to coordinate to review each agency's monitoring
and compliance functions to identify areas of overlap related to health care
institution licensing standards and outlines review requirements.

2.

Requires
DHS, by December 31, 2026, and October 31 every four years thereafter, to
submit a written report to the Health and Humans Services Committees of the
Senate and House of Representatives, or their successor committees, that:

a)

summarizes the findings of the review;

b)

identifies areas of duplication or overlap; and

c)

includes
recommendations for statutory, regulatory or administrative changes.

3.

Removes DHS's ability to conduct an off-site preliminary review of a
complaint to determine whether an on-site inspection is necessary.

4.

Removes
the requirement that DHS close a complaint without further investigation when:

a)

the licensee has implemented systems reducing the likelihood of
violations and provided sufficient evidence of compliance; or

b)

the
complaint is received more than 12 months after the incident that triggered the
complaint.

Senate Action

HHS��� 2/4/26� DPA��� 6-0-1

Prepared by Senate Research

February 5, 2026

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Current Bill Text

Read the full stored bill text
SB1162 - 572R - H Ver

House Engrossed
Senate Bill

health
care institutions; licensing; complaints

(now: health care
institutions; licensing; compliance)

State of Arizona

Senate

Fifty-seventh Legislature

Second Regular Session

2026

SENATE BILL 1162

AN
ACT

Amending title 36, chapter 4, article 1,
Arizona Revised Statutes, by adding section 36-405.04; Amending title 36,
chapter 4, Arizona Revised Statutes, by adding article 4.1; relating to health
care.

(TEXT OF BILL BEGINS ON NEXT PAGE)

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

Section 1. Title 36, chapter 4, article 1,
Arizona Revised Statutes, is amended by adding section 36-405.04, to read:

START_STATUTE
36-405.04.

Licensing and monitoring of health care institutions; joint
review of monitoring and compliance functions; reporting requirement

A. The department shall license and
monitor the operation of health care institutions to ensure compliance with
this chapter.

B. The department and the Arizona
health care cost containment system
shall coordinate to
review monitoring and compliance functions
to identify
areas of overlap related to health care institution licensing standards.
The review must include, at a minimum:

1. Licensing, certification and
enrollment requirements.

2. On-site surveys,
inspections, audits and other compliance activities.

3. Data collection and reporting
requirements.

4. Corrective action and enforcement
processes applicable to health care institutions.

C. The department and the Arizona
health care cost containment system shall:

1. Identify opportunities to
eliminate or reduce duplicative, redundant or inconsistent requirements while
maintaining patient safety and appropriate regulatory oversight.

2. Coordinate or align policies,
procedures and operational practices to minimize administrative burdens on
health care institutions.

D. This section does not require any
action that is inconsistent with federal medicaid conditions of participation
or conditions of payment or other applicable federal requirements.

E. On or before December 31, 2026 and
on or before October 31 every four years thereafter, the department shall
submit a written report to the house of representatives and the senate health
and human services committees, or their successor committees, that summarizes
the findings of the review, identifies areas of duplication or overlap and
includes recommendations for statutory, regulatory or administrative changes.

F. On or before December 31, 2026,
the DEPARTMENT and the Arizona health care cost containment system shall review
their rules and policies RELATING to behavioral health technicians to ensure
alignment with article 4.1 of this chapter.
END_STATUTE

Sec. 2. Title 36, chapter 4, Arizona Revised
Statutes, is amended by adding article 4.1, to read:

ARTICLE
4.1. BEHAVIORAL HEALTH TECHNICIANS

START_STATUTE
36-444.

Definition of behavioral health technician

In this article, unless the context otherwise
requires, "behavioral health technician" means an individual to whom
all of the following apply:

1. Is employed by a behavioral health
facility or by a hospital authorized to provide psychiatric services that is a
licensed health care institution pursuant to this chapter.

2. Provides behavioral health
services under the supervision or clinical oversight of either:

(
a
) A licensed
behavioral health professional.

(
b
) A registered nurse who is licensed pursuant to title 32,
chapter 15, who is working within the registered nurse's scope of practice and
who is providing supervision in a facility that is licensed as a hospital
pursuant to this chapter.

3. Performs only delegated clinical
and supportive functions consistent with the individual's demonstrated training
and competence and the employing behavioral health facility's or hospital's
policies and procedures.
END_STATUTE

START_STATUTE
36-444.01.

Qualifications; standards

A.
A
behavioral health technician shall:

1. Be at least eighteen years of age.

2. Possess a minimum of a high school
diploma or the equivalent.

3. Successfully complete any required
background checks.

B. Before providing supervised direct
services, a behavioral health technician shall complete training that
addresses:

1. Behavioral health system
orientation.

2. Confidentiality and compliance.

3. Professional boundaries and
ethics.

4. Crisis response and de-escalation
techniques and skills.

5. Trauma-informed and recovery-oriented
care.

C. A
behavioral health facility or hospital may adopt internal standards for
behavioral health technicians that exceed statutory minimums. The
employing behavioral health facility or hospital shall provide ongoing training
that the behavioral health facility or hospital requires or that is required by
law.
END_STATUTE

START_STATUTE
36-444.02.

Duties

A.
A
behavioral health technician may provide services consistent with the
individual's training, delegation and supervision, including:

1. Implementing client treatment,
service or recovery plans.

2. Providing skills training and
supportive counseling to support behavioral, emotional and recovery-oriented
functioning of clients.

3. Assisting with client self-administration
of medication as authorized by law or within an applicable scope of practice.

4. Completing documentation and
clerical activities related to client care.

5. Contributing to client assessments
and service planning, including:

(
a
) Interviewing
and recording client history, current status and desired goals.

(
b
) Gathering
and recording collateral and supportive documentation to assist in developing
the service plan.

(
c
) Recording
strengths, needs, abilities and preferences into a service plan.

6. Providing education regarding
treatment options and community resources.

7. Submitting allowable billing
consistent with payer requirements.

8. Supporting mobile crisis teams and
their interventions, including engagement, de-escalation, safety
planning, follow-up coordination, collection of collateral information
and assistance with assessment activities.

9. Providing client transportation,
meal preparation and daily living supports consistent with treatment goals.

10. Scheduling client appointments
and providing case management support activities.

11. Monitoring and documenting vital
signs of clients and other health indicators for which the behavioral health
technician has received appropriate training and authorization.

12. providing Other supportive or
rehabilitative services consistent with the individual's training and
supervision and the employing behavioral health facility's or hospital's
license.

B. This section does not authorize
any behavioral health technician to diagnose medical or behavioral health
conditions, prescribe medications or provide services beyond those that are
delegated to the behavioral health technician and supervised by a licensed
behavioral health professional or a registered nurse who is licensed pursuant
to title 32, chapter 15.
END_STATUTE