Senate Engrossed

appropriation; secure behavioral health facilities

State of Arizona

Senate

Fifty-seventh Legislature

First Regular Session

2025

SENATE BILL 1442

An Act

appropriating monies to the Arizona health care cost containment system.

(TEXT OF BILL BEGINS ON NEXT PAGE)

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

Section 1. Appropriation; Arizona health care cost containment system; secure behavioral health residential facilities; report; exemption

A. The sum of $25,000,000 is appropriated from the state general fund in fiscal year 2025-2026 to the Arizona health care cost containment system for secure behavioral health residential facilities.

B. The Arizona health care cost containment system administration shall distribute the monies appropriated in subsection A of this section to entities for secure behavioral health residential facilities licensed by the department of health services pursuant to section 36-425.06, Arizona Revised Statutes, that provide secure on-site supportive treatment to either of the following, but not both of the following:

1. Persons who are determined to be seriously mentally ill, who are chronically resistant to treatment and who are placed in the facility pursuant to a court order pursuant to section 36-550.09, Arizona Revised Statutes.

2. Persons who have been committed pursuant to a court order issued pursuant to section 13-4521, Arizona Revised Statutes.

C. The Arizona health care cost containment system administration, in consultation with the department of administration, shall issue a request for proposals for the secure behavioral health residential facilities prescribed by this act on or before January 1, 2026. In determining the entity or entities that will receive monies appropriated by this act, the Arizona health care cost containment system administration shall:

1. Prioritize facilities that can open within twelve months after the effective date of this act.

2. Prioritize facilities that meet the geographic needs of this state.

3. Consider an entity's experience in operating behavioral health facilities.

4. Consider the benefits of selecting one entity or multiple entities to receive the monies appropriated by this act.

D. An entity that receives a distribution pursuant to this section shall use the monies only to:

1. Construct a new secure behavioral health residential facility.

2. Retrofit an existing building to become a secure behavioral health residential facility, subject to prior approval from the Arizona health care cost containment system administration.

E. An entity that receives a distribution pursuant to this section shall use quantitative and qualitative methods, including rating scales, incident reports, clinical interviews, functional assessments and patient reports, to measure and evaluate each of the following:

1. Clinical outcomes, including the measurements of positive symptoms, negative symptoms, medication adherence, hospital admissions, psychiatric hospital admissions, emergency room visits and incidents of self-harm.

2. Independent living functional and social outcomes, including the management of personal hygiene, meal preparation and participation in volunteerism, job training, employment or education programming.

3. Program-specific metrics, including attendance and participation in therapy sessions, group activities and psychoeducation programs, readmission rates and successful transitioning to less intensive care.

4. Physical health, including weight, body mass index, blood pressure and heart rate.

F. On or before September 30 following each fiscal year in which monies are used as prescribed in this section, the Arizona health care cost containment system administration shall report the information required by subsection e of this section to the governor, the president of the senate and the speaker of the house of representatives and shall provide a copy of this report to the secretary of state. The administration shall redact personally identifying information received pursuant to subsection E of this section from each report.

G. The appropriation made in subsection A of this section is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations.