administrative deficiencies; cure period

Plain English Breakdown

The bill summary text specifies the term 'psychosocially,' which was originally stated as 'mentally.'

Fixing Small Mistakes Before Punishment

This bill requires certain state agencies to give healthcare facilities a chance to fix administrative mistakes before taking disciplinary actions.

What This Bill Does

• Requires the Department of Health Services (DHS), Arizona Health Care Cost Containment System (AHCCCS), and the Department of Economic Security (DES) to allow licensed or contracted health care facilities 72 hours to correct administrative deficiencies before taking disciplinary actions.
• Defines 'administrative deficiency' as a violation that does not harm patients physically or psychosocially and has no potential to cause such harm.

Who It Names or Affects

• Healthcare facilities licensed or contracted with DHS, AHCCCS, or DES in Arizona.
• The Department of Health Services (DHS), Arizona Health Care Cost Containment System (AHCCCS), and the Department of Economic Security (DES).

Terms To Know

Administrative deficiency

A violation that does not harm patients physically or psychosocially and has no potential to cause such harm.

Agency

The Department of Health Services (DHS), Arizona Health Care Cost Containment System (AHCCCS), or the Department of Economic Security (DES).

Limits and Unknowns

• Does not specify what happens if a facility does not correct the deficiencies within 72 hours.
• The bill's effectiveness date is not specified.

Official Summary Text

SB1233 - 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. 1233

administrative
deficiencies; cure period

Purpose

Requires the Department of Health Services (DHS), Arizona Health Care
Cost Containment (AHCCCS) and Department of Economic Security (DES) to allow
licensed or contracted facilities an opportunity to cure administrative
deficiencies before taking disciplinary or enforcement action.

Background

DHS serves as the agency responsible for licensing and oversight of all
health care institutions in Arizona, including enforcement of 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 (
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 to ensure the quality of care delivered by the system (
A.R.S. � 36-2903
).

DES is responsible for administering programs that provide social
services, behavioral health services, developmental disability services and
economic assistance to eligible individuals and families in Arizona. DES may
adopt rules, make contracts and incur obligations necessary to administer DES programs
and carry out its duties (
A.R.S.
41-1954
).

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

Provisions

1.

Stipulates that an agency may only take disciplinary or enforcement
action against a contracted or licensed facility identified as having only
administrative deficiencies if the agency grants the facility 72 hours to cure
the deficiencies.

2.

Defines
administrative deficiency
as a violation that does not
impact a patient or resident physically or psychosocially and that has no
potential to physically or psychosocially harm the patient or resident.

3.

Defines
agency
as DHS, AHCCCS and DES

4.

Becomes effective on the general effective date.

Amendments Adopted by
Committee

1.

Removes the outright prohibition on taking disciplinary or enforcement
action against a facility identified as having only administrative deficiencies
and allows disciplinary or enforcement action by an agency after the required 72-hour
cure period.

2.

Defines
administrative deficiency.

3.

Makes conforming changes.

Senate Action

HHS��� 1/28/26����������� DPA��� 5-2-0

Prepared by Senate Research

January 29, 2026

MM/hk

Current Bill Text

SB1233 - 572R - S Ver

Senate Engrossed

administrative
deficiencies; cure period

State of Arizona

Senate

Fifty-seventh Legislature

Second Regular Session

2026

SENATE BILL 1233

AN
ACT

Amending title 36, chapter 2, Arizona
Revised Statutes, by adding article 5; relating to state agencies.

(TEXT OF BILL BEGINS ON NEXT PAGE)

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

Section 1. Title 36, chapter 2, Arizona Revised
Statutes, is amended by adding article 5, to read:

ARTICLE 5. STATE AGENCIES

START_STATUTE
36-281.

Administrative deficiencies; cure period; definitions

A. An agency may take disciplinary or
enforcement action against a facility that the agency either contracts with or
licenses if only an administrative deficiency or deficiencies are identified
, only if The agency
allows the facility seventy-two
hours to cure
the identified administrative deficiency
or deficiencies before the agency
takes the action.

b. For the purposes of this section
:

1. "Administrative
deficiency" means a violation that does not impact a patient or resident
physically or psychosocially and that has no potential to physically or
psychosocially harm the patient or resident.

2. "Agency" means the
department of health services, the Arizona health care cost containment system
or the department of economic security.
END_STATUTE