SB1716 - 552R

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

Section 1. Section 36-103.01, Arizona Revised Statutes, is amended to read:

START_STATUTE36-103.01. Governmental units succeeded; statutory references to succeeded governmental units

A. The department succeeds to the authority, powers, duties and responsibilities of the following:

1. State department of health.

2. Arizona health planning authority.

3. Crippled children's services.

4. Arizona state hospital.

5. 4. Anatomy board.

B. In the Arizona Revised Statutes, references to the agencies and departments listed in subsection A of this section shall be deemed to be references to the department of health services or its appropriate organizational units.

C. In the Arizona Revised Statutes, references to the state board of health, when used in the context of and in connection with the adoption of rules, the appellate or original review of administrative decisions, or the approval of decisions by department officers, shall be references to the director of the department of health services. In all other places, references to the state board of health shall be references to the department of health services.

D. In this title, and in the Arizona Revised Statutes, references to the commissioner of health shall be references to the director of the department of health services. END_STATUTE

Sec. 2. Section 36-137, Arizona Revised Statutes, is amended to read:

START_STATUTE36-137. Annual report of director

The director shall submit annually to the governor, the president of the senate and the speaker of the house of representatives a copy of the annual report setting forth:

1. The condition of public health in the state.

2. The activities of the department during the preceding fiscal year.

3. The work done in each county.

4. The character and extent of all diseases reported.

5. The expenditures of the department and of each county or district health department.

6. Recommendations the director deems advisable for protection of the public health.

7. The financial statement of the affairs of the Arizona state hospital.

8. 7. The operations and administration of the program of service for children with a physical disability or who are suffering from conditions that lead to a physical disability. END_STATUTE

Sec. 3. Section 36-201, Arizona Revised Statutes, is amended to read:

START_STATUTE36-201. Definitions

In this article, unless the context otherwise requires:

1. "Chief medical officer" means the chief medical officer of the state hospital.

2. "Department" means the department of health services.

3. 2. "Director" means the director of the department of health services state hospital.

4. 3. "Employee" means an officer or employee of the state hospital.

4. "Governing board" means the state hospital governing board.

5. "State hospital" means the Arizona state hospital.

6. "Superintendent" means the superintendent of the state hospital. END_STATUTE

Sec. 4. Section 36-202, Arizona Revised Statutes, is amended to read:

START_STATUTE36-202. Arizona state hospital; purpose; facilities and equipment

A. A state hospital shall be maintained for the care and treatment of persons with mental disorders and persons with other personality disorders or emotional conditions who will benefit from care and treatment. Admissions to the state hospital shall be in accordance with law. The hospital shall be called the Arizona state hospital.

B. Subject to legislative appropriation, the state hospital may provide services to persons suffering from alcoholism and to persons suffering from drug abuse.

C. The state hospital shall have adequate facilities and equipment for enlightened and scientific treatment of nervous and mental diseases in accordance with approved methods of mental therapeutics. The facilities shall include, among other things:

1. Facilities for medical and psychiatric treatment with special attention to occupational therapy and other special therapies.

2. Facilities for proper segregation and care of child patients.

3. Facilities for recreation and physical training.

4. An institutional library for the use of patients.

5. A properly equipped dental department.

6. A properly equipped laboratory and x-ray department.

7. A patient tracking system approved by the director that monitors individual progress on an inpatient basis and ensures suitable aftercare placement.

D. The state hospital shall be under the charge and control of the governing board and the director of the department of health services, pursuant to this article. END_STATUTE

Sec. 5. Section 36-204, Arizona Revised Statutes, is amended to read:

START_STATUTE36-204. Duties of director

The director shall:

1. Adopt rules for inpatient services that ensure proper review of treatment and discharge plans, arrangement for aftercare placements, transfer of medical records and assistance with medications.

2. If deemed advisable, establish a nurses' training school in connection with the state hospital, which shall be under the supervision of the superintendent.

3. Prescribe forms of complaints, certificates of mental illness and commitments.

4. Adopt rules for the commitment of committing mentally ill persons that are not inconsistent with provisions of law.

5. Adopt rules for the administration of administering the state hospital and to carry out the purposes of this article. END_STATUTE

Sec. 6. Section 36-205, Arizona Revised Statutes, is amended to read:

START_STATUTE36-205. Director of state hospital; appointment; compensation; qualifications; chief medical officer

A. There shall be a superintendent the director of the state hospital who shall be appointed by and under the supervision of the director governing board. The director is the chief administrative officer of the state hospital.

B. The compensation to be paid to the superintendent director shall be determined pursuant to section 38-611.

C. The superintendent shall be removed governing board may remove the director only for cause.

D. The superintendent director shall have the following qualifications:

1. Hospital administrative experience in the private sector.

2. An educational background that prepares the superintendent director for the administrative responsibilities assigned to the position.

3. Mental health-related experience in both an institutional and community setting.

E. The superintendent director, with the approval of the director governing board, shall appoint a chief medical officer of the state hospital who is a physician and who is licensed pursuant to title 32, chapter 13 or 17. The chief medical officer shall have not less than at least three years' experience in the treatment of treating psychiatric disorders and shall be board-certified in psychiatry by the board of psychiatry and neurology. The chief medical officer is eligible for compensation pursuant to section 38-611. The chief medical officer is responsible for the clinical administration of the hospital and shall report directly to the superintendent director. END_STATUTE

Sec. 7. Title 36, chapter 2, article 1, Arizona Revised Statutes, is amended by adding section 36-205.01, to read:

START_STATUTE36-205.01. State hospital governing board; membership; appointments; duties; compensation

A. The state hospital governing board is established consisting of five members who are appointed by the governor pursuant to section 38-211. Not more than three members may be of the same political party. Members of the governing board shall have experience in a hospital or in health care administration. Appointments are for a term of five years and expire on the third Monday in JANUARY of the appropriate year. The chairperson of the independent oversight committee at the ARizona state hospital established pursuant to section 41-3803 shall serve as a nonvoting member of the governing board and is not counted for the purpose of determining if a quorum is present.

B. A governing board member may be removed only for cause. A board member who is removed for cause must be provided written notice and an opportunity to respond. The governor may remove a governing board member based on written findings that specify the reason for removal.

C. the governing board shall administer The laws of this state relating to the state hospital.

D. The members of the governing board are eligible to receive compensation for performing official duties of the governing board as determined pursuant to section 38-611. END_STATUTE

Sec. 8. Section 36-206, Arizona Revised Statutes, is amended to read:

START_STATUTE36-206. Duties of director; cost estimate; program assessment; funded capacity and allocation formula

A. The director has charge of the state hospital and the superintendent shall supervise and direct its activities. , subject to the provisions of law and approval of the director. The superintendent is directly responsible to the director for carrying out the purposes for which the hospital is maintained. Subject to the approval of the director, The superintendent director may deputize any qualified officer of the state hospital to do or perform any act the superintendent director is empowered to do or charged with the responsibility of doing by law.

B. The superintendent in December each year the director shall estimate the probable daily per capita cost of treatment treating and maintenance of maintaining each category of patients for the next ensuing year as determined in accordance with standard accounting practices. the director shall provide a statement of the estimate shall be provided to the director governing board in January of the following year.

C. The superintendent director, on request, shall provide to the director governing board a clinical assessment of the state hospital's programs.

D. On or before August 1 of each year, the director shall establish maximum funded capacity and a percentage allocation formula for forensic and civil bed capacity at the Arizona state hospital based on census data collected pursuant to sections 13-3992, 13-4512, 36-202.01 and 36-503.03. By on or before June 1 of each year, the director shall solicit and consider the recommendations of representatives of the county board of supervisors, the Arizona prosecuting attorneys' advisory council and the superior court when establishing this formula. In addition to establishing the formula, the director, the county board of supervisors, the Arizona prosecuting attorneys' advisory council and the superior court shall develop a contingency plan for the placement of placing patients subject to sections 13-3992, 13-4512, 36-202.01 and 36-503.03 in times of emergency and other unforeseen circumstances. The director shall notify the governing board, the governor, the president of the senate, the speaker of the house of representatives and the chairperson of each county board of supervisors of the funded capacity and allocation formula for the current fiscal year. Thirty days before the notification of the forensic and civil bed funded capacity formula, the director shall provide this information to the representatives of the county board of supervisors, the Arizona prosecuting attorneys' advisory council and the superior court for comment. The director shall include these comments when issuing the formula. END_STATUTE

Sec. 9. Section 36-209, Arizona Revised Statutes, is amended to read:

START_STATUTE36-209. Reports by director and governing board

A. At such a time as the director governing board designates, the superintendent director shall submit to the director governing board a report of the activities of the state hospital during the preceding fiscal year, including:

1. The number of patients received, conditionally discharged and discharged and voluntary patients treated.

2. Methods of treatment used and the results.

3. The total number, including the number of such persons who were committed on a voluntary and involuntary basis, of seriously mentally ill patients as defined in section 36-550 and the place to which each person was discharged.

4. Census data for treatment programs pursuant to sections 13-3992, 13-4512, 36-202.01 and 36-503.03.

5. A complete employment and personnel record.

6. The condition of existing equipment.

7. Recommendations for improvement of improving the institution.

8. Other matters required by the director governing board or deemed advisable by the superintendent director to present a complete description of the condition and activities of the state hospital.

B. Not later than the fifteenth day of each month, the director governing board shall prepare in duplicate a financial statement of the affairs of the state hospital, including:

1. The amounts appropriated for the current fiscal year for operation, maintenance and improvement.

2. The amount expended spent during the preceding calendar month.

3. The balance on hand.

4. The estimated expenditures for the current month.

5. An inventory report.

C. The original report and statements required by this section shall be filed with and retained as records of the director governing board and duplicates filed with the director of the department of administration.

D. At such a time as the director governing board designates, the superintendent director of the state hospital shall submit to the director governing board a financial statement of the affairs of the state hospital during the preceding fiscal year in a form prescribed by the director of the department of administration.

E. By on or before October 1 of each year, the director governing board shall submit to the governor a comprehensive report of the activities of the state hospital during the preceding fiscal year, which shall include the annual reports of the superintendent director, and shall contain:

1. An account of the work done.

2. Recommendations for improvements.

3. Financial statements that clearly reflect the origin and disposition of all monies that have come into the hands of the director governing board or an employee through appropriations or otherwise.

F. The director governing board shall make such supplemental reports as the governor or the legislature requests.

G. The annual report prescribed by subsection E of this section shall be published for the information of the public and five copies shall be delivered to the chief clerk of the house of representatives and the secretary of the senate, respectively, who shall keep them on file for the use of the members of each house. END_STATUTE

Sec. 10. Section 36-545.01, Arizona Revised Statutes, is amended to read:

START_STATUTE36-545.01. Payment of costs and expenses; ability to pay; power and duty of court; acceptance of other benefits; per capita cost limitation; guardians; parental liability; lien; duty of county attorney

A. When a patient is admitted to the state hospital for court-ordered treatment pursuant to article 5 of this chapter or pursuant to section 13-3992, the business manager of the state hospital shall inquire into the ability of the patient to pay the costs of examination, maintenance and treatment. The business manager shall file with the clerk of the court a written report of the manager's findings and the basis of those findings.

B. If the patient is able to pay all or any portion of the charges, the court shall order the payment of the amount the patient can afford of the per capita cost for examination, treatment and maintenance as estimated by the superintendent. The court, on petition of an interested person and at a hearing of which all concerned parties have received notice, may increase or decrease the maintenance charge payable by the patient or the patient's estate.

C. Notwithstanding subsection B of this section, any federal, state, public or private medical benefits that are payable to the state hospital where the patient is receiving care and treatment or that are payable to the patient may be accepted by the state hospital without a court order, except that the state hospital shall not accept any benefits that alone or in addition to any amounts payable pursuant to subsection B of this section exceed the per capita cost for the patient.

D. The court, if necessary, may appoint a conservator of the patient to carry out this section. If a conservator is appointed, the clerk of the court shall file a certificate so stating. All proceedings relating to that conservatorship shall be had as provided by law for conservators of estates. The conservator shall pay the amount ordered by the court pursuant to subsection B of this section.

E. If the patient is a minor, the business manager of the state hospital shall inquire into the ability of the minor's parents to bear charges pursuant to this section. All obligations, charges and liens that may be imposed on a patient pursuant to this section shall be imposed on the minor's parents if it is determined that the parents have the ability to pay.

F. The charges fixed by the court as provided by this section and ordered paid by the patient or the patient's estate, on filing with the county recorder, become a lien on the property of the patient or the patient's estate.

G. The county attorney of each county, on an order of a judge of the superior court, shall enforce the lien and collect the charges from the person ordered to pay if the charges become delinquent.

H. Costs of examination, treatment and maintenance shall not be charged to any patient found by a court of competent jurisdiction to be unlawfully detained.

I. Notwithstanding section 36-545.02, the department state hospital governing board shall deposit, pursuant to sections 35-146 and 35-147, monies collected through contracts entered into pursuant to section 36-3410 in the Arizona state hospital fund established by section 36-545.08. The department state hospital governing board shall use these monies for the treatment of treating patients at the state hospital or for the placement of placing clients in the community. END_STATUTE

Sec. 11. Section 36-545.08, Arizona Revised Statutes, is amended to read:

START_STATUTE36-545.08. Arizona state hospital fund; accounts; purpose

A. The Arizona state hospital fund is established for the purposes prescribed in section 36-545.01, subsection I. The department of health services director of the state hospital shall administer the fund. The fund consists of the following:

1. Monies reimbursed by the federal government under title XIX of the social security act for services provided at the state hospital.

2. Monies collected pursuant to section 36-3410 for services to clients at the state hospital.

3. Monies collected from counties for the cost of a defendant's inpatient competency restoration treatment.

B. The department director of the state hospital shall deposit monies collected pursuant to subsection A of this section into three separate accounts.

C. Monies in the fund deposited under subsection A, paragraphs 1 and 3 of this section are subject to legislative appropriation and are designated for state hospital operations. Monies in the fund deposited under subsection A, paragraph 2 of this section are a continuing appropriation and are exempt from the provisions of section 35-190 relating to lapsing of appropriations. Monies in the fund deposited under subsection A, paragraph 3 of this section remaining unexpended and unencumbered at the end of the fiscal year revert to the state general fund. Monies in the fund deposited under subsection A, paragraph 1 of this section are exempt from the provisions of section 35-190 relating to lapsing of appropriations. END_STATUTE

Sec. 12. Initial terms of members of the Arizona state hospital governing board

A. Notwithstanding section 36-205.01, Arizona Revised Statutes, as added by this act, the initial terms of members of the Arizona state hospital governing board are:

1. One term ending January 1, 2025.

2. Two terms ending January 1, 2026.

B. The governor shall make all subsequent appointments as prescribed by statute.

Sec. 13. Succession; transfer; effect

A. As provided by this act, the Arizona state hospital governing board succeeds to the authority, powers, duties and responsibilities of the department of health services relating to the Arizona state hospital.

B. This act does not alter the effect of any actions that were taken or impair the valid obligations of the department of health services relating to the Arizona state hospital in existence before January 1, 2023.

C. Administrative rules and orders that were adopted by the department of health services relating to the Arizona state hospital continue in effect until superseded by administrative action by the Arizona state hospital governing board.

D. All administrative matters, contracts and judicial and quasi-judicial actions, whether completed, pending or in process, of the department of health services relating to the Arizona state hospital on January 1, 2023 are transferred to and retain the same status with the Arizona state hospital governing board.

E. All certificates, licenses, registrations, permits and other indicia of qualification and authority that were issued by the department of health services relating to the Arizona state hospital retain their validity for the duration of their terms of validity as provided by law.

F. All equipment, records, furnishings and other property, all data and investigative findings, all obligations and all appropriated monies that remain unexpended and unencumbered on January 1, 2023 of the department of health services relating to the Arizona state hospital are transferred to the Arizona state hospital governing board.

G. All personnel who are under the state personnel system and employed by the department of health services relating to the Arizona state hospital are transferred to comparable positions and pay classifications in the respective administrative units of the Arizona state hospital governing board on January 1, 2023.

Sec. 14. Conforming legislation

The legislative council staff shall prepare proposed legislation conforming the Arizona Revised Statutes to the provisions of this act for consideration in the fifty-sixth legislature, first regular session.

Sec. 15. Effective date

This act is effective from and after December 31, 2022.